Sunac Services Holdings Limited released its 2026 interim report, detailing a mixed first-half performance shaped by tight cost management, portfolio pruning and softer market demand in China’s property-management sector.

Revenue and Profitability • Group revenue fell 9.2% year-on-year to RMB 3.22 billion, reflecting the mid-2025 disposal of Zhangtai Services and the deliberate exit from low-margin projects. Excluding the disposal impact, the top line slipped 2.3%.

• Gross profit declined 13.5% to RMB 667.16 million; reported gross margin eased to 20.7%, down 1.1 percentage points. Management noted that refined cost controls lifted the core gross margin by 0.1 percentage point once the divested unit is stripped out.

• Net profit attributable to shareholders edged up 1.9% to RMB 124.23 million. Impairment charges on receivables narrowed to RMB 307.51 million from RMB 345.95 million.

Cash Flow and Balance-Sheet Metrics • Operating cash outflow improved to RMB 657.31 million versus an outflow of RMB 691.13 million a year earlier, supported by better collection from third-party projects.

• Available funds (cash, restricted cash, time deposits and wealth-management products) totalled RMB 3.29 billion, down from RMB 4.04 billion at end-2025, mainly due to working-capital usage, share buy-backs and dividend payments.

• The company remains debt-free, posting a gearing ratio of zero and a current ratio of 1.8 times at 30 June 2026.

Portfolio and Operational Updates • Managed gross floor area stayed near 260 million sq m after the disposal of Zhangtai Services; non-residential revenue and gross profit rose despite a strategic exit from low-yield properties.

• Residential revenue slipped 1.9%, yet gross profit advanced 3.0% on tighter cost controls and wider use of technology such as AI-based inspection systems and cleaning robots.

• The “Clearance Action” to turn around or relinquish loss-making projects continued; administrative expense ratio fell 1.2 percentage points.

• Community living services generated RMB 163.61 million, down 22.4% chiefly on weaker park-operation income; owner-oriented convenience services held steady. Transaction value in asset-intermediary services grew 30%, while community retail GMV expanded 52%.

• Commercial operations under Sunac Commercial recorded 70 million visitor arrivals and RMB 3.37 billion in sales (excluding vehicles), up 5.2% and 1.9% respectively. A 70% leasing rate was achieved within three months at the asset-light Shijiazhuang Sunac Mall.

Capital Management • The company repurchased 51.27 million shares on the open market for HKD 48.80 million; 26.87 million of these have been cancelled.

• A final dividend of RMB 0.01 per share (totalling RMB 28.96 million) was paid; no interim dividend was proposed.

Governance and Outlook Sunac Services’ board leadership changed in May 2026, with Mr. Huang Shuping succeeding Mr. Wang Mengde as chairman. Management will continue to prioritise project optimisation, comprehensive cost control, AI-driven efficiency gains and selective expansion, while preparing for potential asset-light commercial growth and exploring REIT-related opportunities.