Country Garden Services Holdings Company (6098) H2 2025 earnings summary

Executive summary

• Revenue rose 9.9% year-over-year to RMB48,353.7 million, driven by growth in property management, community value-added, and "Three Supplies and Property Management" businesses.

• Net profit dropped 68.1% year-over-year to RMB598.9 million, mainly due to significant impairment charges and lower gross margins.

• Core net profit (excluding non-recurring items) fell 17.1% to RMB2,519.0 million.

• The company expanded its property management GFA to 1,070.4 million sq.m. and managed 8,268 projects across China and overseas.

Financial highlights

• Gross profit increased 0.7% year-over-year to RMB8,455.9 million; gross margin declined to 17.5% from 19.1%.

• General and administrative expenses rose 3.9% to RMB4,614.6 million, but the expense ratio improved to 9.5%.

• Net cash generated from operating activities was RMB2,507.9 million, down 35.2% year-over-year.

• Bank deposits and structured deposits totaled RMB17,931.0 million at year-end.

• Final and special dividends proposed total RMB1,511.4 million, with a scrip dividend option.

Outlook and guidance

• Focus on lean operations, digital empowerment, and service grading to drive efficiency and quality.

• Plans to accelerate market-oriented development of community value-added services and deepen AI and IoT integration.

• Continued prudent expansion in environmental business and strategic withdrawal from underperforming projects.