Shenghui Cleanness (2521) H1 2025 earnings summary

Executive summary

• H1 2025 revenue rose 10.1% YoY to RMB358.8m, while gross profit increased to RMB60.2m and gross margin expanded to 16.78%; net profit declined to RMB7.9m.

• Growth was driven mainly by a higher number of property-cleaning projects; property cleaning generated 95.8% of revenue.

Financial highlights

• Revenue was RMB358.8m vs RMB325.8m in H1 2024; cost of services rose 1.7% to RMB298.6m.

• Gross profit increased to RMB60.2m from RMB32.0m; gross margin improved to 16.78% from 9.8%.

• Profit attributable to owners was RMB7.943m vs RMB10.155m; net profit margin fell to 2.2% from 3.1%, reflecting an FVTPL fair-value loss.

• Other income rose to RMB2.6m from RMB1.2m, mainly on higher rental income; income tax expense increased to RMB4.0m from RMB1.1m.

• Operating activities used RMB2.6m of net cash, compared with RMB55.7m used in H1 2024; cash and cash equivalents ended at RMB104.9m.

Outlook and guidance

• Plans include organic growth and expanding into existing and new PRC markets by replicating the service model in regions with strong property-cleaning demand.

• Potential acquisitions or investments in Greater Bay Area cleaning and maintenance providers are intended to broaden customer and geographic reach and support infrastructure-service tenders.

• PRC economic growth, urbanisation and an expected increase in new properties are cited as demand opportunities.