Starjoy Wellness and Travel Company Limited (STARJOY W&T) reported mixed interim results for the six months ended 30 June 2026, marked by margin improvement and the reinstatement of dividends amid a softer top line.
Revenue and Profitability • Group revenue slipped 5.2 % year-on-year to RMB 579.30 million, reflecting a strategic exit from higher-risk property projects and intensified competition in commercial operations. • Gross profit held steady at RMB 168.32 million; the gross margin improved 1.6 percentage points to 29.1 % on tighter cost control and supplier-payment optimisation. • Net profit rose 9.4 % to RMB 23.06 million, aided by lower administrative and finance costs, while core net profit (excluding non-recurring items) contracted 14.4 % to RMB 43.70 million following higher expected credit-loss provisions. • Earnings per share were RMB 2.87 cents, down from RMB 3.44 cents a year earlier.
Segment Performance • Property Management Services contributed RMB 513.69 million (88.7 % of group revenue), down 4.4 %. Despite the contraction, segment margin widened to 28.7 % from 25.2 %, supported by refined project management and cost efficiencies. • Commercial Operational Services generated RMB 65.63 million, a 10.6 % decline. Revenue from operation and management services fell 14.3 %, partially offset by a 21.7 % rise in property letting income. Segment margin compressed to 31.8 % from 44.7 % on heightened regional competition.
Cost Discipline and One-Off Items • Cost of services fell 7.1 % to RMB 411.00 million, outpacing the revenue decline. • Administrative expenses dropped 13.7 % to RMB 33.86 million, reflecting ongoing efficiency efforts. • Impairment losses under the expected credit-loss model expanded to RMB 92.09 million (1H25: RMB 73.76 million), while net exchange losses widened to RMB 17.08 million, dragging on other income.
Cash, Balance Sheet and Liquidity • Cash and bank balances stood at RMB 879.22 million, versus RMB 970.28 million at end-2025. • Total assets were RMB 2.10 billion; total liabilities declined to RMB 894.74 million, trimming the gearing ratio to 0.43 from 0.45. • Net current assets improved to RMB 812.98 million, underscoring a solid liquidity buffer.
Dividend Resumption The board declared an interim dividend of RMB 0.0072 per share (approximately HKD 0.0083), payable on 28 September 2026 to shareholders on record as of 18 September 2026. No interim dividend was distributed in the prior-year period.
Strategic Outlook Management reiterated a “prudence-first” stance amid China’s evolving real-estate landscape. The company plans to: 1. Continue selective project exits while enhancing service quality and digital capabilities, including smart-community and AI applications. 2. Expand into overseas property management, elder-care and smart-living segments to diversify growth. 3. Deepen cost optimisation, energy-saving initiatives and integrated property-commercial synergies to safeguard margins.
No material acquisitions, disposals or pledges of assets occurred during the period, and no significant post-period events were reported.