Evergrande Property Services reports profit dip despite revenue growth

For the six months ended June 30, 2025, Evergrande Property Services reported operating revenue of RMB6,646.6 million, a 6.9% increase year-on-year. Despite this revenue growth, the company's gross profit decreased by 4.6% to RMB1,198.7 million, with the gross profit margin falling by 2.2 percentage points to 18.0%. Net profit also saw a decline of 1.7% to RMB491.2 million, resulting in a net profit margin of 7.4%. Profit attributable to owners of the company was RMB472.3 million.

The group's financial position highlights ongoing challenges, including net current liabilities of approximately RMB518.5 million as of June 30, 2025. Trade receivables remain high at RMB2,841.6 million, with accumulated provisions for bad debt losses reaching RMB3,041.7 million, indicating an impairment rate of 51.7%. The company is actively addressing liquidity pressures through operational adjustments and negotiations with creditors.

Management emphasized the impact of the property management industry's transformation, including stricter regulations and rising operating costs. Despite these hurdles, Evergrande Property Services is focused on service quality enhancements and market expansion, securing new contracted gross floor area from third parties exceeding 23 million sq.m. The board did not recommend an interim dividend for the period.