Kaisa Prosperity Holdings (02168) released unaudited interim figures for the six months to 30 June 2026, showing a modest top-line contraction and lower earnings against a challenging mainland property backdrop.

Financial highlights • Revenue slipped 4.3% year-on-year to RMB 786.54 million. • Gross profit eased 2.8% to RMB 198.28 million; gross margin rose to 25.2% (1H25: 24.8%). • Profit and total comprehensive income declined 8.2% to RMB 48.99 million; owners’ share fell 12.3% to RMB 41.89 million. • Basic EPS decreased to RMB 0.27 (1H25: RMB 0.31). • No interim dividend was proposed.

Segment performance 1. Property management services (87.9% of revenue) generated RMB 690.93 million, down 0.5% as the group exited low-margin projects; margin slipped to 21.3% (-0.2 ppt). 2. Value-added services to property owners delivered RMB 71.87 million, down 10.5%, yet margin rose to 70.9% (+10.8 ppt) due to reduced contribution from low-margin projects. 3. Value-added services to non-property owners plunged 49.5% to RMB 23.74 million, turning a slight gross loss (-0.7% margin) as weaker developer demand cut higher-margin orders.

Operational metrics • Contracted gross floor area (GFA) slipped 0.2% to 124.51 million sq m. • GFA under management edged down 0.3% to 98.83 million sq m across 714 projects in 78 cities. • Properties from third-party developers account for 54.9% of managed GFA, up marginally from end-2025.

Cash flow and balance sheet • Cash and cash equivalents stood at RMB 181.79 million (end-2025: RMB 214.07 million). • Net current assets improved to RMB 196.17 million (end-2025: RMB 155.14 million). • No interest-bearing debt; gearing ratio remained at zero. • Trade receivables rose to RMB 545.81 million (end-2025: RMB 477.57 million), reflecting slower collections from developers.

Other items • Fair-value loss on financial assets at FVTPL expanded to RMB 20.58 million (1H25: RMB 3.00 million). • Administrative expenses fell 6.3% to RMB 72.74 million amid cost controls. • Effective tax fell, trimming income-tax expense to RMB 14.53 million (-28.2%).

Outlook Management cites ongoing property-sector weakness and a shift toward “intensive operation targeting existing stock,” but plans to pursue an “organic growth + independent expansion” strategy, deepen digitalisation and broaden community value-added offerings such as pet services, elderly care and retail, while maintaining a cautious stance on cost and risk control.