Yuexiu Services Group (6626) H2 2025 earnings summary

Executive summary

• Revenue for 2025 reached RMB3,902 million, up 0.9% year-over-year, with non-commercial property management and value-added services contributing RMB3,153.4 million (+0.6%) and commercial property management and operational services RMB748.5 million (+2.0%).

• Profit attributable to owners was RMB274 million, down 22.5% year-over-year, reflecting margin pressures and sector headwinds; basic EPS was RMB0.18.

• Property management services revenue grew 21.3% to RMB1,499 million, now 38% of total revenue.

• Commercial operation and management services revenue remained stable at RMB617 million.

• Final dividend proposed at HKD0.037 per share, total annual dividend HKD0.125 per share, raising payout ratio to 60%.

Financial highlights

• Gross profit margin declined to 14.8% from 23.3% year-over-year, mainly due to increased labor costs and a shift in revenue mix.

• Net profit margin fell to 7.0% from 9.1% in 2024.

• Cash and time deposits increased to RMB4,906 million, supported by operating cash inflow of RMB509 million.

• No bank borrowings or major contingent liabilities as of year-end.

• Cost of sales increased 12.1% to RMB3,325.2 million, outpacing revenue growth.

Outlook and guidance

• Strategic focus on tier-1 and tier-2 cities, with deepening presence in the Greater Bay Area.

• Continued investment in digital intelligence, AI-driven quality management, ESG, and sustainable development initiatives.

• Commitment to sustainability, targeting a 19% reduction in carbon emission intensity by 2030 and net-zero by 2060.

• Focus for 2026 is on refined services, management innovation, structure optimization, and cost efficiency.

• Plans to strengthen presence in strategic cities, expand high-quality project contracts, and optimize value-added services.