On August 26, Kangqiao Service (02205) released its 2026 interim results. Amidst deep industry adjustments and intensifying market competition, the company achieved steady growth across multiple metrics including revenue, gross profit, and scale, underscoring its operational resilience and long-term growth potential in navigating industry cycles.
Financially, the company recorded revenue of approximately RMB 470 million for the first half of 2026, up 3.2% year-on-year. Gross profit reached about RMB 106 million, an increase of 8.0%, outpacing revenue growth. Net profit and net profit attributable to shareholders for the period stood at roughly RMB 38 million and RMB 29 million, respectively, showing a temporary dip from the same period last year. However, the gross margin rose by 1 percentage point against the trend to 22.6%, reflecting that cost-saving measures in energy efficiency upgrades and smart operations are beginning to pay off, effectively offsetting cost pressures and gradually optimizing the profit structure.
In terms of scale, as of June 30, 2026, the company's contracted area was approximately 70 million square meters, and its under-management area was approximately 47.9 million square meters, up 2.4% and 3.7% year-on-year, respectively. The growth rate of managed area outpaced that of contracted area, indicating steadily improving conversion efficiency of existing projects. According to data from CRIC Property Management, the average contracted-to-managed area ratio for listed property companies in 2025 was 1.2, while Kangqiao Service achieved a ratio of 1.46, outperforming the industry average and leaving ample room for future conversion of existing contracts.
Notably, during the reporting period, third-party projects accounted for 82.0% of contracted area and 78.2% of managed area, maintaining a leading position in the industry for several consecutive years. This highly market-oriented business structure has enabled the company to sustain independent customer acquisition and autonomous operations during the industry adjustment phase, providing greater flexibility and risk resistance for future expansion.