Hevol Services Group Co. Limited (Hevol Services; 06093) reported weaker interim results for the six months ended 30 June 2026, reflecting industry-wide pressure in China’s property management sector.

Financial Performance • Revenue fell 11.70% year on year to RMB 619.46 million, driven by lower contributions from property management and community value-added services. • Gross profit contracted 20.22% to RMB 142.87 million, reducing the gross margin to 23.1% (1H25: 25.5%). • Profit after tax declined 13.50% to RMB 12.25 million; basic EPS slipped to RMB 0.0118. • Administrative expenses decreased 20.8% to RMB 76.14 million following head-count and cost controls. • Net finance costs dropped 37.6% to RMB 2.51 million as borrowings were reduced. • A net gain of RMB 2.28 million was recorded under other income and gains, reversing a RMB 19.20 million loss a year earlier, which had included a RMB 19.30 million disposal loss.

Segment Breakdown • Property management services (83.1% of revenue): RMB 514.97 million, down 9.1%, reflecting the absence of revenue from two subsidiaries sold in 2025 and partial offset from new project wins. Segment margin narrowed to 19.5% (1H25: 21.8%). • Community value-added services (16.1% of revenue): RMB 99.74 million, down 19.7%, mainly on weaker leasing, brokerage, and home-improvement activity; margin slipped to 41.4% (1H25: 43.2%). • Value-added services to non-property owners (0.8% of revenue): RMB 4.75 million, down 54.6% following reduced site and auxiliary services demand; margin stable at ~20%.

Operational Metrics • Gross floor area (GFA) under management edged down 0.4% to 55.60 million sq m across 369 projects. • Contracted GFA decreased 1.1% to 60.70 million sq m covering 381 projects. • Residential assets represent 89.5% of managed GFA; Southwestern China remains the largest regional market, contributing 55.8% of property management revenue.

Balance Sheet & Liquidity • Cash and cash equivalents stood at RMB 126.00 million (31 Dec 2025: RMB 239.45 million). • Interest-bearing bank borrowings declined to RMB 77.35 million from RMB 102.22 million; all are on fixed rates and secured by RMB 35.40 million investment properties and RMB 70.00 million trade receivables. • Net current liabilities were RMB 13.26 million (31 Dec 2025: net current liabilities of RMB 0.59 million), while the group remained in a net cash position at period-end. • Intangible assets decreased to RMB 61.92 million due to amortisation; goodwill remained unchanged at RMB 415.60 million. • Contract liabilities fell 12.6% to RMB 321.00 million, reflecting revenue recognition of advance payments.

Management Commentary Chairman Liu Jiang cited prolonged real-estate softness, fee-collection challenges and rising cost pressures as drivers of the earnings decline. The group will continue prioritising service quality, disciplined project expansion, and AI-enabled efficiency gains while deepening “caring services” initiatives and smart-property roll-outs to reinforce resilience.

Dividends No interim dividend was declared for 1H26 (1H25: nil).

Outlook Management expects China’s property management sector to remain in transition from scale-driven growth to quality and efficiency-focused operations. Hevol Services plans to maintain prudent expansion, strengthen its community value-added offerings, and invest selectively in digital tools to support stable, long-term growth.