Country Garden Services reports profit decline despite revenue growth

For the six months ended June 30, 2025, Country Garden Services Holdings Limited reported revenue of RMB23,185.5 million, an increase of approximately 10.2% compared to the same period in 2024. However, net profit for the period decreased by 35.1% to RMB1,002.6 million, with profit attributable to owners falling by 30.8% to RMB996.6 million. Basic earnings per share were RMB29.82 cents. The Group recorded a net cash outflow from operating activities of RMB875.2 million, a reversal from a net inflow in the previous year.

The gross profit margin declined by 2.7 percentage points to 18.5%, impacted by increased capital investment and external factors. Property management services revenue grew by 6.7% to RMB13,605.8 million, while revenue from city services decreased by 18.0% to RMB1,778.5 million. The "Three Supplies and Property Management" business saw its revenue increase by 14.9%, primarily due to the conversion of associates and joint ventures into controlling subsidiaries.

General and administrative expenses rose by 22.9% to RMB2,205.4 million, reflecting expanded project numbers and business scale. The company decided not to declare an interim dividend for the six months ended June 30, 2025.