Against a backdrop of widespread pressure across the property management industry, CG Services (06098.HK) officially released its 2026 interim results on August 26. This financial report is not merely an update of financial figures, but also the first examination of the management's performance guidance from the 2025 results conference, which targeted a "return to profit growth in 2026."

According to the financial data, CG Services achieved operating revenue of RMB 24.5 billion in the first half of 2026, a year-on-year increase of 5.7%, while attributable core net profit reached RMB 1.62 billion, growing 3.2% year-on-year, successfully reversing the downward trend. The confidence behind this profit recovery stems first from the clearing of risks. Over the past two years, goodwill has been the largest uncertainty hanging over CG Services. In 2025, the company fully impaired the remaining goodwill of Manguo Environment, approximately RMB 968.9 million. At that time, Chief Financial Officer Tian Tian clearly stated that the risk of further impairment on goodwill from other historical acquisitions was expected to be manageable. Entering 2026, no significant goodwill impairment events occurred in the first half of the year. From proactive risk resolution to a lighter operational burden, the signal that major risks have largely been cleared is now evident.

Even more persuasive than the profit recovery is the company's actual action in consistently fulfilling its promises. In March 2025, CG Services announced a share buyback plan of no less than RMB 500 million. As of February 12, 2026, the company had cumulatively repurchased 87,996,000 shares at a total cost of approximately RMB 503 million, all of which were subsequently cancelled. In 2026, buybacks have continued, with 34.995 million shares repurchased in the first half of the year at a cost of about RMB 190 million. On the dividend front, management has again stated that it maintains its 2026 fiscal year dividend expectation of no less than RMB 1.5 billion. The combination of buybacks and the RMB 1.5 billion dividend forms CG Services' shareholder return strategy of "dividends plus buybacks." This is not a one-off market value management move, but a continuous institutional arrangement through which management fulfills its commitments with real capital.

Market investment institutions have responded positively to this combined strategy. Morgan Stanley's July research report on the property management sector noted that the industry's average dividend yield is approximately 6%, which is quite attractive, with CG Services and Greentown Service standing out at 9.5% and 6.8% respectively. Profit recovery is only a starting point; how to maintain the foundation is the more long-term test. Management revealed at the results conference that the company is using the PARA strategy to solidify project service delivery capabilities, embedding technology throughout the entire operational chain. This pushes refined operations from concept to daily practice, stabilizing gross margin levels while accelerating the intelligent upgrade of the property management system.

The key to deepening refined operations lies in project health management. CG Services uses this as a focal point, continuously optimizing its asset structure through dynamic assessment and differentiated measures. In the first half of the year, over 80% of its low-profit projects saw profit improvements, while more than RMB 40 million was invested in quality improvements for projects with low satisfaction scores, resulting in a 13 percentage point increase in owner satisfaction compared to 2025. While systematically exiting over 50 continuously loss-making projects, the company also newly signed and commenced operations at more than 600 new projects. Through this balance of "advancing and retreating," the project foundation has become healthier and more resilient.

Intelligent upgrading is a systematic project. CG Services is reshaping service processes through a PARA collaborative model that operates on four parallel forces: "humans + intelligent agents + robots + intelligent IoT." PARA is not just another system or piece of hardware, but a new paradigm that restructures the production relationships of property services. It has been noted that intelligent agents have built core capabilities for "24-hour service response and decision support," already deeply integrated into operations such as payment collection, outbound calls, and work orders, driving automated operational loops. Robots handle high-frequency standard tasks like cleaning, with the company's self-developed and mass-produced cleaning robot, "Zero Resident," now serving over 4,700 buildings. AIoT applications make operations perceptible, analyzable, and controllable, systematically driving cost reduction, revenue growth, and service efficiency. On this basis, the PARA model continues to promote the enhancement of human capabilities and a return to value, helping to elevate overall service quality. Taking the Wuhan Country Garden Eco City Eastscape project as an example, the implementation of the PARA strategy drove double-digit growth in both owner satisfaction and fee collection rates, fully demonstrating the quantifiable improvement in customer value brought by technological empowerment.

While the scale foundation is being consolidated, community value-added services are accelerating their transformation toward marketization. Owner lifestyle services continue to play a leading role, with professional operations and resource management businesses advancing in coordination. Under the collaborative push of multiple scenarios, growth space is further opening up. In the first half of the year, CG Services' community value-added services revenue was approximately RMB 2.308 billion, up about 18.3% year-on-year, accounting for roughly 9.4% of total revenue. From a business structure perspective, core segments such as retail, new energy, and alcoholic beverages all recorded substantial growth, with year-on-year increases of 46%, 48%, and 32%, respectively. The two-wheel new energy charging pile business achieved significant breakthroughs in both deepening penetration in existing communities and expanding into external markets. As of June 30, 2026, the total number of operating sockets reached approximately 830,000, covering over 6,035 communities, with cumulative service visits exceeding 230 million. Community value-added services continue to release positive signals, demonstrating strong operational resilience and customer stickiness.

Taking a comprehensive view of CG Services' interim report, the profit side shows signs of a halt in decline, lean operations are being advanced in depth, the PARA collaborative model has entered its implementation phase, and market expansion alongside community value-added services have also made positive progress. The convergence of these multi-dimensional operational signals cross-validates the company's earlier operational guidance. Analysts believe that with the continued deepening of lean operations and the scaled rollout of the PARA strategy, operational momentum in the second half of the year is expected to be further unleashed, providing fundamental support for the full-year return to profit growth.