Greentown Service H1 2026 Revenue Up 6.3% to RMB9.871 billion, Core Profit Up 16.3%
Greentown Service Group reported first-half 2026 revenue of RMB9.871 billion, up 6.3% year on year, with core operating profit rising 16.3% to RMB1.249 billion. Net profit attributable to shareholders grew 15.2% to RMB706 million. Managed area expanded 8.2% to 580 million square meters. Gross margin improved to 20.0%, and net margin rose to 7.3%. Park services revenue declined 6.7%, while property management and consultancy grew. The company maintained strong cash balances of RMB6.559 billion, up 17.1%.
In the first half of 2026, Greentown Service Group recorded revenue of RMB9.871 billion, up 6.3% year on year; gross profit of RMB1.969 billion, up 8.9%, with gross margin of 20.0%, up 0.5 percentage points; core operating profit of RMB1.249 billion, up 16.3%; net profit attributable to shareholders of RMB706 million, up 15.2%. During the same period, the company's selling and marketing expenses fell 3.9%, administrative expenses fell 1.5%, and net margin was 7.3%, up 0.5 percentage points.
As of June 30, 2026, Greentown Service's managed area reached 580 million square meters, up 8.2% year on year; it managed 3,882 projects across 194 cities nationwide. By region, Hangzhou accounted for 16% of managed area, Ningbo 6.8%, other Yangtze River Delta regions 36.1%, with the delta as a whole accounting for nearly 60%. From a revenue perspective, managed projects in the delta contributed a combined 67.7% of revenue.
The company's reserve area in the first half fell 6.3% year on year to 326 million square meters. Greentown Service said this was due to stricter entry thresholds for new projects, enhanced process and risk control over reserve area, and the proactive exit from some non-core cities and reserve projects with delivery risks, to reduce potential delivery risk. Newly added annualized contracted revenue in the first half was RMB1.46 billion, with core key cities accounting for 94.6%. By business type, non-residential properties accounted for 60.4%. The number of landmark projects with annual fees exceeding RMB10 million surpassed the year-ago period, and the Tonglu county-wide property management model became a provincial benchmark in Zhejiang.
By revenue structure, property management services remained Greentown Service's largest source of revenue and profit, with first-half revenue of approximately RMB7.3 billion, accounting for 74.0% of total revenue, up 10.1% year on year. Park services revenue was RMB1.266 billion, representing 12.8% of total revenue, down 6.7% year on year. Consultancy services revenue was RMB1.305 billion, accounting for 13.2% of total revenue, up 0.4% year on year. Park services was the only segment to decline among the three, mainly due to a focus on product categories and the impact of the real estate environment on property asset services. Within this, park products and services revenue fell 8.9%, related to the proactive closure of some loss-making retail stores and streamlining of product SKUs; property asset management services revenue declined 13.1%.
Despite revenue pressure in park services, its gross margin rose 2.0 percentage points year on year to 28.6%, the highest and most improved among the three segments. Property management services gross margin was 16.0%, up 0.7 percentage points; consultancy services gross margin was 33.8%, up 0.7 percentage points.
Cash and bank balances were RMB6.559 billion, up 17.1% from the same period in 2025.