Kangqiao Service Group Limited reported audited results for the year ended 31 December 2025.

Financial performance • Revenue fell 3.0% year-on-year to RMB931.55 million. • Gross profit declined 8.3% to RMB198.25 million; gross margin narrowed to 21.3% from 22.5%. • A net loss of RMB19.30 million replaced the RMB68.77 million profit recorded in 2024; loss attributable to owners was RMB36.75 million. • Credit-impairment losses surged to RMB161.55 million from RMB74.44 million.

Segment trends • Property-management services rose 7.2% to RMB730.44 million, contributing 78.4% of revenue. • Value-added services to non-property owners dropped 70.2% to RMB25.73 million amid a weaker mainland real-estate market. • Community value-added services decreased 14.9% to RMB96.52 million. • City services slipped 1.0% to RMB78.87 million.

Operating scale • Contracted gross floor area (GFA) totalled 68.6 million sq m (-2.3%), with 81.6% sourced from third-party developers. • GFA under management expanded 5.0% to 48.5 million sq m; third-party projects accounted for 78.8%.

Balance-sheet highlights • Total assets: RMB2.03 billion; total liabilities: RMB1.29 billion, lifting the asset-liability ratio to 63.2% (2024: 48.7%). • Cash and cash equivalents stood at RMB157.63 million; restricted cash totalled RMB209.22 million. • Current ratio declined to 1.4 from 1.8 a year earlier. • The Group had no outstanding bank borrowings at year-end.

Litigation provision and going-concern issue • A provision of RMB726.73 million was recognised after the Henan High People’s Court ruled that a subsidiary must honour a RMB473.70 million guarantee plus interest. • The Group recorded a corresponding receivable from the chairman, Mr Song Gewei, who has undertaken to indemnify any related losses. • The external auditor issued a disclaimer of opinion, citing insufficient evidence on the viability of the Group’s going-concern plans, which rely on the chairman’s financial support and negotiations with the lending bank.

Capital allocation • As of 31 December 2025, HK$230.70 million of the HK$628.90 million IPO proceeds remained unutilised. The Board reallocated HK$275.20 million originally earmarked for acquisitions to working capital and general corporate purposes in November 2025.

Dividends • The Board does not recommend a final dividend for 2025.

Auditor • Crowe (HK) CPA Limited issued a disclaimer of opinion due to the litigation provision and related going-concern uncertainties.

Shareholders should note the auditor’s disclaimer and the pending financial impact of the litigation when reviewing the Group’s 2025 performance.