S-Enjoy Service Group (1755) H1 2026 earnings summary

Executive summary

• Revenue for the six months ended 30 June 2026 was RMB2,140.8 million, down 7.7% year-over-year, mainly due to declines in value-added services and intensified market competition.

• Profit attributable to owners rose 51.1% to RMB129.0 million, with net profit margin improving by 2.2 percentage points to 6.3%.

• Gross profit decreased 14.2% to RMB403.3 million, with gross margin down to 18.8%.

• Cash and cash equivalents declined slightly due to net operating cash outflows and high advance collection rates in 2025.

Financial highlights

• Property management services revenue fell 2.6% to RMB1,739.3 million; community-related value-added services dropped 24.2% to RMB375.2 million; developer-related value-added services declined 31.5% to RMB26.3 million.

• Gross profit margin for property management services was 16.9% (down 1.6 ppt), community-related value-added services 28.8% (up 1.4 ppt), and developer-related value-added services 7.6% (down 2.1 ppt).

• Administrative expenses decreased 14.4% to RMB165.5 million.

• Net impairment losses on financial and contract assets were RMB102.5 million, down from RMB158.7 million.

• No borrowings or pledged assets as of 30 June 2026.

Outlook and guidance

• The industry is shifting from scale-driven to quality-driven growth, with a focus on refined management and core city operations.

• AI applications have been launched in over 50% of projects to enhance efficiency and risk control.

• Management remains confident in achieving healthy cash flow for the full year.