Sino-Ocean Service Holding Limited reported a sharp improvement in bottom-line performance for the six months ended 30 June 2026, reducing loss attributable to shareholders by 79.0% year on year to RMB 65.60 million. The turnaround was driven by lower impairment provisions and tighter cost control, which lifted gross profit 22.9% to RMB 200.39 million and expanded gross margin to 16% (H1 2025: 12%).

Revenue slipped 6.9% to RMB 1.29 billion. Core property management services—now 78% of the top line—declined 2.8% to RMB 1.00 billion, tracking a 10% contraction in gross floor area (GFA) under management to 84.5 million sq m following an exit from low-efficiency projects. Community value-added services fell 19.3% to RMB 200.52 million, while value-added services to non-property owners dropped 17.5% to RMB 87.57 million.

Segment profitability diverged. Property management gross margin narrowed to 11% (H1 2025: 16%) on lower scale and relatively fixed labour and outsourcing costs. Community value-added services swung to a 39% gross margin from a 10% loss margin a year earlier, reflecting markedly lower inventory write-downs. Margin for services to non-property owners was unchanged at 17%.

Operationally, Sino-Ocean Service added 50 externally sourced projects worth RMB 130.00 million in annual contract value, up 76%, and lifted the share of third-party GFA to 40%. GFA from third-party clients accounted for 76% of new signings, underscoring progress in independent expansion. The company also completed the acquisition of 191 parking spaces for RMB 31.33 million via set-off against refundable deposits and finalised the return of 2,418 parking spaces to its parent, booking a one-off loss of RMB 20.28 million.

Cash and equivalents, including restricted deposits, stood at RMB 635.39 million at end-June, supporting a current ratio of 0.9. The balance sheet carries no interest-bearing borrowings, leaving gearing at zero. Capital expenditure was modest at RMB 2.60 million.

The board declared no interim dividend. Management plans to concentrate resources in core and strategically penetrated cities, apply tiered project management to lift profitability, and continue to reduce low-yield assets while expanding high-value external projects in the second half of 2026.