Times Neighborhood Holdings Limited released its 2026 interim results, reporting solid top-line growth and resilient profitability despite mixed segment trends.

Financial Highlights (H1 2026 vs. H1 2025):

• Revenue rose 7.3% to RMB1.31 billion. • Gross profit gained 5.2% to RMB256.83 million; gross margin edged down to 19.7% from 20.1%. • Profit for the period increased 17.5% to RMB71.60 million; profit attributable to shareholders grew 2.2% to RMB65.27 million. • Core net profit (excluding non-recurring items) slipped 3.5% to RMB104.87 million; core net margin fell to 8.0% from 8.9%. • Basic earnings per share stood at RMB7 cents (H1 2025: RMB6 cents).

Segment Performance:

• Property Management Services remained the main revenue driver, up 9.3% to RMB863.39 million, representing 66.2% of total revenue. Residential projects contributed RMB736.43 million (85.3% of the segment). • Community Value-added Services declined 9.9% to RMB113.96 million, weighed by a 73.8% drop in renovation income; gross margin improved to 45.7% (H1 2025: 41.9%). • Other Professional Services expanded 9.4% to RMB328.14 million, led by a 14.8% rise in industrial & logistics real-estate services to RMB231.30 million. Urban public services delivered RMB66.92 million (-7.9%), while electromechanical services grew 15.5% to RMB29.93 million.

Operational Metrics:

• Contracted GFA reached 140.0 million sq.m., of which 60.9% stemmed from third-party developers. • GFA under management (ex-urban public projects) climbed to 133.5 million sq.m. • New residential contracts totaled 9.1 million sq.m., adding annualized contract value of roughly RMB150 million.

Profitability and Costs:

• Net impairment losses on financial and contract assets dropped to RMB42.34 million (-53.8%). • Administrative expenses rose 4.0% to RMB99.46 million, trimming the expense ratio by 0.3 ppt. • Net finance costs remained low at RMB0.56 million.

Balance Sheet and Cash Flow:

• Total assets stood at RMB2.71 billion; total equity reached RMB1.43 billion. • Cash and bank balances totaled RMB1.01 billion, with the Group in a net cash position. • Net cash used in operations was RMB59.94 million; capital spending on fixed assets was RMB4.20 million. • Trade and bills receivables increased to RMB870.96 million; 48% of end-2025 third-party receivables were collected after period-end.

Dividend:

• A final dividend of RMB4.8 cents per share for FY 2025 (RMB47.31 million) was approved and paid in July 2026. No interim dividend was declared for H1 2026.

Outlook:

Management expects China’s property services sector to pursue high-quality growth, supported by regulatory refinement and expanding demand in urban renewal and public services. Focus areas include enhancing service quality, deepening ecological collaboration, and investing in digital upgrades to reinforce long-term growth prospects.