As August draws to a close, the Hong Kong stock market enters the final window for interim results disclosures, with listed companies' operational report cards gradually coming to light. For the property management sector, the capital market's focus has shifted from scale growth speed to profitability quality and operational substance—single-period data fluctuations are not the core variable for observing a company, but rather the structural adjustments and strategic resolve behind the data deserve closer attention. On August 26, Kangqiao Service (02205) officially released its 2026 interim results report. The signals conveyed by this report card are far more worthy of careful reading than the surface-level increases or decreases in figures—optimizing business structure, returning to the essence of service, and intensifying efforts in the AI track, Kangqiao Service's long-term growth logic is becoming increasingly clear.
Stable Performance: Gross Profit Rises Against the Trend, Operational Resilience Stands Out
According to the announcement, in the first half of 2026, Kangqiao Service achieved revenue of approximately RMB 470 million, a year-on-year increase of 3.2%. From the revenue structure perspective, property management service revenue was approximately RMB 380 million, accounting for 80.8% of total revenue, up 7.4% year-on-year, with the main business continuing to play its role as a ballast stone; community value-added services, non-owner value-added services, and urban services revenue were approximately RMB 45 million, RMB 13 million, and RMB 32 million respectively, with diversified businesses developing synergistically and the overall framework remaining stable. The profit side is even more noteworthy: gross profit for the period was approximately RMB 106 million, up 8.0% year-on-year, with the gross margin increasing to 22.6%. According to the "2026 China Property Management Listed Companies TOP10 Research Report" released by the China Index Academy, the average gross margin of listed property companies in 2025 was 17.84%, and the company's gross margin exceeded this average by nearly 5 percentage points, achieving a phased recovery in profitability quality. It is worth noting that after proactively clearing out low-quality projects, the company's overall gross margin rose against the trend, and the profitability of core assets was not weakened, laying a solid foundation for subsequent profit recovery. Regarding profit performance, the company achieved a net profit of approximately RMB 38 million and net profit attributable to shareholders of approximately RMB 29 million during the period, a decrease compared to the same period last year. From the perspective of the overall industry environment, this change did not stem from a deterioration in the company's operational fundamentals, but rather from phased impacts caused by the superposition of multiple external factors. Specifically, on the one hand, affected by the industry's downward cycle, pressure on accounts receivable recovery increased, and correspondingly provisioned bad debt reserves increased; on the other hand, related litigation matters also generated additional expense outlays during their progression. In terms of scale, as of the end of the reporting period, the company managed 339 projects, with contracted area growing 2.4% year-on-year to approximately 70 million square meters; managed area grew 3.7% year-on-year to approximately 47.9 million square meters, maintaining positive growth for several consecutive years. More strategically significant, the third-party proportions of contracted area and managed area reached 82.0% and 78.2% respectively, and revenue from related parties accounted for only 0.7%. This signifies that Kangqiao Service has completed its impressive transformation of "shedding real estate dependence." Against the backdrop of an industry where upstream and downstream risks in real estate still exist, its independent customer acquisition capability and operational autonomy constitute strong support for the company's operational independence and risk resistance.
Quality Deep Cultivation: Service Returns to Its Roots, Operations Expand Boundaries
Service capability is the core competence for property companies to navigate industry cycles. Facing increasingly fierce industry competition, Kangqiao Service has returned to the essence of service, deepening refined operations guided by customer needs, and continuously enhancing service premiums and customer stickiness. At the basic service level, while continuously exerting efforts in multiple dimensions such as safety assurance, quality renewal, and industrial operations, the company focuses on the needs of residents across all age groups, organizing colorful community cultural activities and warm, convenient resident service events, effectively enhancing residents' living experience and driving up project renewal rates. During the first half of the year, multiple projects received widespread recognition and praise from customers and all sectors of society, with owner satisfaction continuing to improve, and the reputation for quality service steadily transforming into important support for market-based expansion. If residential property is the fundamental base, then deep operations in non-residential formats are the key variable for the company to navigate cycles—not only enhancing service premiums but also upgrading the property company's role from "service provider" to "value co-creator." Taking the Qingdao Metro Innovation Industrial Park as an example, the company has stepped beyond traditional property management boundaries, implementing an integrated "investment attraction + operations + property services" solution, layering value-added services such as policy alignment, resource linkage, and corporate support on top of basic services, precisely matching the development needs of technology innovation enterprises. To date, the park has attracted more than 20 enterprises in the rail transit and intelligent manufacturing sectors, including subsidiaries of 5 listed companies, with cumulative investment attraction area of approximately 20,000 square meters. In April this year, the park's "Incubation Center + OPC Innovation Zone + Industry-University-Research Center" trinity industrial ecosystem was officially put into operation, preliminarily forming enterprise cultivation capabilities covering the full growth cycle of startup technology enterprises. The project continues to intensify industry-university-research collaboration, deeply connecting with university innovation resources, actively facilitating renowned scientific research teams from Qingdao University of Science and Technology to settle in the park, tackling frontier key technologies, opening up channels for transforming scientific research achievements, and injecting strong momentum into technological innovation for park enterprises. This model enhances the per-unit efficiency of industrial parks while strengthening customer stickiness, and its high-barrier, replicable operational capabilities open new growth space for the company's non-residential business.
Digital Intelligence Empowerment: Technology Reshapes Quality and Efficiency, Seizing the AI Advantage
In an era of stock competition in the industry, digital and intelligent transformation has become the key lever for property companies to reduce costs and increase efficiency. In the first half of 2026, Kangqiao Service continued to intensify its digital intelligence construction, integrating IoT, big data, AI, and other technologies to reshape service processes. On the basis of tool intelligence, the company continued to introduce intelligent equipment and deepen AI scenario applications. At the front-end tool level, AI outbound call robots replace repetitive communications, floor cleaning robots implement "human-machine collaboration" for cleaning, and frictionless access systems such as facial recognition and automatic vehicle recognition have been comprehensively upgraded; self-developed energy consumption management systems, quality inspection software, and other digital tools effectively reduce public energy consumption and ensure service quality. Building on this foundation, the company further promotes service model upgrades: leveraging AIoT and intelligent agents to assist quality inspection, establishing a closed loop of automatic dispatch and effect verification to shorten service response times; through collaborative operations between humans and robots, and humans and intelligent agents, releasing the energy of frontline personnel to focus on owner relationship maintenance and community service innovation, achieving a dual enhancement of cost reduction, quality improvement, and service experience. From a broader perspective, the true value of digital intelligence lies not merely in "saving a few people," but in restructuring the cost structure—when AI replaces repetitive labor, the proportion of labor costs in property companies will gradually decline, and the new structure of "technology investment + high-value manpower" will drive a systematic rise in industry gross margins. Furthermore, while deeply cultivating the domestic market, the company is also actively expanding overseas business, exploring more possibilities for the in-depth advancement of its digital technology business. As of the end of the reporting period, the company had accumulated 78 computer software copyrights registered with the National Copyright Administration and obtained ISO 27001 information security management system certification, with digital technology becoming an important driving force for the company's high-quality development. Looking across the first half of 2026, Kangqiao Service has demonstrated multiple positive signals at the operational level, with operational resilience gradually emerging; it also directly confronts realistic challenges such as pressure on net profit recovery and historical litigation matters. More critically, the board of directors completed its transition smoothly during the first half of the year. The new board faces problems with a candid and pragmatic attitude, comprehensively strengthens the internal control system, and fortifies the compliance operation defense line. Looking ahead, the new board will lead the company through cycles and toward stable and long-term development with a more professional and independent governance posture. For Kangqiao Service, which has proactively chosen to "exchange short-term profits for long-term quality," the significance of the interim results lies not in providing answers, but in verifying the feasibility of its transformation path. The tail end of clearing low-efficiency businesses, the realization pace of digital intelligence cost reduction, and the replication progress of industrial operation models—improvements in these dimensions will be gradually revealed in subsequent operations and are worthy of anticipation.