Hangzhou-based property manager Sundy Service Group released its unaudited 1H26 results, highlighting a top-line contraction but meaningful profitability gains driven by cost controls and mix improvement.
Financial highlights • Revenue fell 7.0% year on year to RMB108.33 million, pulled lower by weaker contributions from value-added services to non-property owners (-60.3%) and property management services (-6.3%). • Gross profit rose 14.8% to RMB35.40 million as the gross margin widened 6.2 ppt to 32.7%, reflecting refined cost management and withdrawal from low-margin projects. • Profit for the period increased 25.9% to RMB7.92 million, giving a profit margin of 7.3% (1H25: 5.4%). • Profit attributable to equity holders declined 55.9% to RMB4.65 million after a higher share of profits allocated to non-controlling interests. • EPS stood at RMB0.12 cents (1H25: RMB0.27 cents); no interim dividend was declared.
Segment performance • Property management services remained the core business, generating RMB87.90 million (81.1% of group revenue). Segment revenue slipped 6.3% but gross margin jumped to 30.7% (1H25: 23.6%). • Community value-added services grew 8.5% to RMB9.57 million with margin reaching 56.2% (1H25: 49.6%). • Value-added services to non-property owners plunged 60.3% to RMB1.81 million amid a strategic pullback; margin contracted to 24.9%. • Hotel and other businesses contributed RMB9.05 million, down 2.1%, yet margin improved to 28.2%.
Balance sheet and cash • Total assets edged up 0.6% to RMB576.23 million; cash and cash equivalents increased 15.3% to RMB160.67 million. • Current ratio softened to 3.07x (FY25: 3.25x) on a 7.3% decline in current assets, mainly reflecting lower properties held for sale. • The group remains in a net cash position with no interest-bearing bank borrowings; gearing ratio is not applicable. • Trade receivables rose to RMB211.68 million; impairment losses on receivables expanded 84.3% to RMB20.34 million.
Operational metrics • Gross floor area under management reached 8.53 million sq m across 48 projects (36 residential, 12 non-residential), broadly flat year on year. • Residential properties accounted for 85.1% of managed GFA and 66.8% of property management revenue. • Third-party developer projects contributed 10.2% of property management revenue, down from 16.0% a year earlier.
Outlook and strategy Management reiterated a focus on “prudent operations, quality enhancement and efficiency improvement.” Key initiatives for 2H26 include: 1. Safeguarding core property-management operations while selectively expanding the project portfolio. 2. Driving service standardisation and digitalisation to lift customer satisfaction and operating efficiency. 3. Developing asset-light, technology-enabled community value-added services and monetising public-area resources to establish new revenue streams.
Corporate actions • No interim dividend proposed. • No material acquisitions, disposals, or borrowings during the period. • Public float remains above the 25% Listing Rule requirement.
Governance and compliance All directors confirmed compliance with the Hong Kong Listing Rules’ Model Code for securities transactions, and the company reported full adherence to the Corporate Governance Code provisions during the period.