Shenghui Cleanness (2521) H1 2026 earnings summary

Executive summary

• H1 2026 revenue was RMB364.9m and profit was RMB12.9m; net profit margin rose to 3.5% from 2.2% YoY, helped by no repeat of the prior-year fair value loss on financial assets.

• Revenue growth remained modest while labor-related costs pressured gross profit and margin; cash and bank balances declined and total borrowings increased versus 31 December 2025.

Financial highlights

• Revenue increased 1.7% YoY to RMB364.9m from RMB358.8m, primarily on more property-cleaning projects.

• Gross profit fell to RMB45.9m from RMB60.2m; gross margin contracted to 12.6% from 16.8%, reflecting higher employee benefits and subcontracting labor costs.

• Profit attributable to owners was RMB13.1m versus RMB7.9m; basic and diluted EPS was RMB0.67 versus RMB0.45.

• Adjusted context: H1 2026 had a RMB0.4m fair value gain, versus a RMB25.4m fair value loss in H1 2025; the absence of the prior-year loss supported profit growth.

• General and administrative expenses rose 49.5% to RMB32.3m; selling and marketing expenses declined 46.5% to RMB2.3m.

Outlook and guidance

• Plans center on organic growth and expanding into existing and new PRC markets, replicating the established service model in areas with strong demand for property cleaning.

• Potential acquisitions or investments in Greater Bay Area cleaning and maintenance providers could broaden geographic reach and support bids for major infrastructure cleaning work.

• Strategy aims to combine property cleaning with AI, smart water management and green technology to broaden revenue streams and improve long-term value.