Country Garden Services H1 Revenue Up 5.7% to RMB24.5 Billion, Core Profit Rebounds

Country Garden Services disclosed its 2026 interim results on August 26. In the first half of the year, the company generated revenue of approximately RMB24.5 billion, up 5.7% year on year. Gross profit rose 3.3% to RMB4.44 billion, while attributable core net profit increased 3.2% to RMB1.62 billion, reversing a downward trend seen over the past two years. In the previous two years, attributable core net profit had fallen 22.9% and 17.1%, respectively. During the reporting period, attributable net profit stood at RMB950 million, down 4.6% year on year.

Management said the negative impact of clearing long-aged receivables and reducing revenue recognition from risky clients gradually subsided in the first half of 2026. Refined operations and human-machine collaboration lifted gross profit, while organizational restructuring and management optimization reduced administrative expenses, together driving the reversal in attributable core net profit. By business segment, within the large property segment, property management services revenue reached RMB14.505 billion, up approximately 6.3% year on year, and community value-added services revenue reached RMB2.308 billion, up approximately 18.3%. The combined share of these two businesses in total revenue continued to rise, lifting the large property segment to 69.9% of total revenue and contributing over 90% of revenue growth. Due to the proactive reduction of related-party transaction scale, non-owner value-added services revenue fell more than 20% year on year, accounting for 1% of total revenue. Related-party revenue as a share of total revenue dropped from over 20% in 2018 to 0.6% in the first half of 2026.

In the incubation business segment, the "three supplies and one service" business generated revenue of RMB4.605 billion, up 10.8% year on year. Environmental services and commercial operations revenue stood at approximately RMB1.73 billion and RMB297 million, down 12.2% and 9%, respectively, due to the proactive exit from poorly performing or loss-making projects. In the first half of 2026, the company exited more than 50 continuously loss-making projects while adding over 600 newly signed and operational projects, with newly signed annualized revenue of approximately RMB1.32 billion. As of the end of June, excluding the "three supplies and one service" business, the company's fee-based managed area stood at approximately 1.096 billion square meters; the property services fee-based managed area for the "three supplies and one service" business was approximately 90 million square meters.

In 2025, the company launched the "Yuebaijia" brand to target low-property-fee markets. As of the first half of 2026, the brand served over 200 old communities and more than 200,000 households, generating revenue of approximately RMB200 million. Executive Director and President Xu Binhuai said the second half of 2026 will mark the first half-year results for "Yuebaijia," which addresses management needs of low-fee communities, alleviates street-level property management difficulties, and achieves marginal profitability. Due to seasonal factors, operating net cash flow stood at negative RMB749 million in the first half. Management noted that property fee collections typically start low and rise later in the year, and compared with the same period in 2025, operating cash outflow improved by approximately RMB130 million. Strengthening fee collection and improving working capital efficiency remain key priorities for the second half.

Country Garden Services is advancing its "PARA strategy" (People + AI Agents + Robots + Intelligent IoT) to upgrade its operating system. Its self-developed, mass-produced cleaning robot, "Zero Resident," has been deployed across more than 4,700 buildings. In community value-added services, retail, new energy, and liquor segments grew 46%, 48%, and 32%, respectively, while the two-wheel new energy charging pile business achieved breakthroughs in both existing community penetration and external market expansion. Xu said the company continues to prioritize stable operations, with second-half focus on service and fee collection improvements. It is also considering incubating a robot-centric specialized company and exploring retail, community dining, and other advantaged scenarios as new growth curves, piloting business models on a trial basis.