Yuexiu Services Group (6626) H1 2025 earnings summary

Executive summary

• As of 30 June 2025, 515 contracted projects and 444 projects under management, with GFA under management up 4.3% year-over-year to 72.3 million sq.m.; contracted GFA up 4.2% to 92.5 million sq.m.

• Revenue remained stable at RMB1,961.9 million for the six months ended 30 June 2025, with non-commercial property management and value-added services contributing 81.1% and commercial property management and operational services 18.9%.

• Net profit attributable to owners was RMB242.7 million, down 15.6% year-over-year; net profit margin at 12.4%.

• Gross profit margin decreased to 21.3% from 25.9% due to a shift in business mix and lower margins in value-added services.

• The company repurchased 8.26 million shares for HKD24.6 million, with all repurchased shares cancelled by April 2025.

Financial highlights

• Revenue: RMB1,961.9 million, nearly unchanged from RMB1,960.2 million in the prior year period.

• Gross profit: RMB417.9 million, down from RMB507.4 million; gross margin fell to 21.3% from 25.9%.

• Net profit: RMB242.7 million, down 15.6% year-over-year.

• Basic EPS: RMB0.16, down from RMB0.18.

• Cash and cash equivalents plus time deposits: RMB4,791.1 million as of 30 June 2025.

Outlook and guidance

• Focus shifting from scale expansion to service quality improvement, refined services, and high-value customer segments, especially in core cities and non-residential sectors.

• Plans to expand value-added and technological services, enhance proprietary products, and optimize integrated service centers.

• Continued risk assessment in new project selection and emphasis on customer-centric innovation.