A-Living returns to profit in first half 2025 despite revenue drop

A-Living Smart City Services Co. Ltd. achieved a net profit of RMB448.2m for the six months ended June 30, 2025, a substantial improvement from a net loss of RMB1,544.4m in the corresponding period of 2024. Profit attributable to shareholders was RMB350.3m, resulting in basic earnings per share of RMB0.25, compared to a loss per share of RMB1.16 previously. This turnaround occurred despite an 8.3% decrease in total revenue, which fell to RMB6,465.4m from RMB7,050.8m year-on-year.

The company's gross profit declined by 21.2% to RMB939.3m, with the gross profit margin dropping from 16.9% to 14.5%. Property management services revenue saw a slight decrease of 0.8% to RMB5,328.0m. However, property owners' value-added services revenue decreased significantly by 32.7% to RMB519.5m, and extended value-added services plummeted by 82.4% to RMB40.9m, primarily due to reduced demand in property development and sales.

As of June 30, 2025, A-Living maintained a sound financial position with total assets of RMB20,346.5m and shareholders' equity of RMB11,524.9m, an increase of 2.9% from December 31, 2024. Cash and cash equivalents decreased by 22.4% to RMB2,574.7m. The gearing ratio stood at 3.7%.