Jiayuan Services Holdings Limited (“Jiayuan Services” or “the Group”) released its 2026 interim results for the six months ended 30 June 2026.
Financial Performance • Revenue declined 1.9% year on year to RMB 409.02 million, driven by the exit of underperforming commercial projects and lower renewal prices on some residential contracts. • Gross profit fell 2.8% to RMB 129.64 million; gross margin edged down to 31.7% from 32.0%. • Net profit attributable to shareholders plunged 89.4% to RMB 14.88 million (total net profit: RMB 18.40 million). The sharp fall reflects the absence of a RMB 109.34 million one-off reversal of unauthorised-guarantee provisions booked in the prior-year period. • Selling and marketing expenses rose 14.7% to RMB 3.20 million; administrative expenses grew 15.3% to RMB 35.88 million, mainly on higher professional and IT-amortisation costs. • Finance costs decreased to RMB 0.12 million following the full repayment of bank borrowings.
Segment Breakdown • Property management services: Revenue slipped 3.1% to RMB 376.40 million, representing 92.0% of total revenue; margin narrowed to 31.4%. • Value-added services to developers: Revenue rose 22.7% to RMB 2.88 million; margin improved slightly to 31.1%. • Community value-added services: Revenue increased 12.8% to RMB 29.74 million; margin expanded to 36.1%.
Operational Metrics • Contracted gross floor area (GFA) eased 2.6% to 52.8 million sq m across 258 projects after divestment of cash-flow-negative sites. • GFA under management grew 2.9% to 45.8 million sq m, reflecting conversion of contracted projects and market expansion.
Balance Sheet and Liquidity • Cash and cash equivalents rose to RMB 47.70 million (31 Dec 2025: RMB 33.93 million); restricted deposits stood at RMB 7.52 million. • Net current liabilities narrowed to RMB 129.66 million from RMB 177.68 million, lifting the current ratio to 0.79 (31 Dec 2025: 0.74). • Gearing ratio improved to 92.4% from 97.0%. • A RMB 73.65 million provision remains for potential outflows linked to unauthorised pledged shares; no further provision was required for past unauthorised guarantees, which were settled in 2025. • The Group’s auditor highlighted a material uncertainty over going-concern, citing negative working-capital and unresolved pledged-share obligations. Management plans include tighter cost control, recovery of receivables, and reliance on a RMB 70.00 million shareholder loan secured in July 2026 (RMB 20.00 million drawn to date).
Capital Moves • In April 2026 Jiayuan Services placed 60.50 million new shares at HKD 0.25 each, raising net proceeds of HKD 14.85 million (approximately RMB 13.57 million). By 30 June 2026, HKD 12.94 million had been applied to working capital; HKD 1.92 million is expected to be spent by year-end 2026.
Dividends • The Board declared no interim dividend (H1 2025: nil).
Outlook and Strategy Management plans to enhance service quality, strengthen financial controls, and develop community life services as a second growth engine while pursuing cost-leadership and digital transformation initiatives to stabilise performance amid industry reforms.