Runhua Living Service Group Holdings Limited (“Runhua Service”) reported a strong interim performance for the six months ended 30 June 2026, marked by a sharp rebound in profitability and solid top-line growth.

Revenue advanced 10.70% year on year to RMB 488.60 million, driven chiefly by a 12.70% rise in property-management income to RMB 468.51 million. The segment contributed 95.9% of group turnover, with non-residential projects—hospitals, public facilities, and other commercial sites—accounting for 94.2% of that figure.

Gross profit grew 6.28% to RMB 66.35 million, although the gross margin eased by 0.5 percentage points to 13.6%, reflecting lower profitability from property engineering, landscape construction, and investment-property leasing. The most pronounced margin contraction occurred in leasing services, where margin fell 14.9 percentage points to 24.5% amid softer occupancy and rental rates.

Net profit more than doubled to RMB 45.00 million, supported by a RMB 23.04 million gain on the disposal of subsidiary Shandong Qiantai Commercial Management. Excluding this one-off, underlying earnings momentum was underpinned by the expansion of higher-margin ancillary services, where revenue surged 326.0% to RMB 5.29 million.

Operating cash flow registered a modest outflow of RMB 5.10 million, but overall liquidity strengthened: cash and cash equivalents rose 78% from end-2025 to RMB 148.05 million, buoyed by refunded deposits from cancelled acquisitions. Interest-bearing debt slipped slightly to RMB 156.63 million, lowering the gearing ratio to 37.3% from 40.5% six months earlier. The current ratio improved to 2.0.

Total assets declined marginally to RMB 485.67 million following the divestment of Qiantai Company, which also reduced investment properties to RMB 19.18 million from RMB 53.63 million at year-end 2025. Net assets stood at RMB 420.22 million.

The board opted against declaring an interim dividend. A previously announced special dividend of HKD 0.05 per share (approximately HKD 15.00 million) was approved on 16 June 2026.

Management signalled continued focus on expanding non-residential property management, selective M&A in Shandong and neighbouring regions, enhancement of value-added services, and further development of asset-light leasing operations. A RMB 40.00 million related-party purchase of a Jinan commercial property, agreed in June and slated for completion by mid-September 2026, underscores the group’s intention to deepen recurring rental income.

As at 30 June 2026, Runhua Service employed 15,359 staff and had utilised HKD 5.40 million of its HKD 89.90 million IPO proceeds, leaving HKD 59.10 million earmarked for technology upgrades, talent programmes, geographic expansion, and strategic investments.