KWG Living Group Holdings released its 2026 interim results for the six months ended 30 June 2026.

Revenue and Profitability • Revenue slipped 5.30% year on year to RMB 1.57 billion. • Gross profit declined 16.04% to RMB 351.69 million; gross margin eased to 22.4% from 25.3%. • The period closed with a net loss of RMB 155.03 million, a reduction from the RMB 276.63 million loss recorded a year earlier. • Loss per share was RMB 7.52 cents (1H 2025: RMB 13.23 cents). • No interim dividend was declared.

Segment Performance • Residential property management services generated RMB 820.82 million, down 1.60%, representing 52.3% of total revenue. – Pre-sale management: RMB 20.13 million (-42.26%). – Property management: RMB 726.90 million (+0.13%). – Community value-added: RMB 73.79 million (+0.94%).

• Non-residential property management and commercial operational services contributed RMB 749.37 million, down 9.10%, accounting for 47.7% of revenue. – Property management: RMB 680.22 million (-9.15%). – Commercial operation: RMB 26.01 million (+3.27%). – Other value-added: RMB 40.72 million (-9.96%).

Geographical Mix • Greater Bay Area and Yangtze River Delta delivered a combined 63.8% of group revenue. • Residential segment: these two regions accounted for 58.9% of residential income. • Non-residential segment: Yangtze River Delta surpassed Greater Bay Area, providing 37.5% of non-residential revenue.

Expenses and Impairments • Cost of sales contracted 1.67% to RMB 1.22 billion. • Administrative expenses declined 6.60% to RMB 193.03 million. • Impairment charges totalled RMB 287.06 million, including RMB 194.19 million on trade receivables and RMB 76.33 million on goodwill. • Finance costs fell 37.52% to RMB 6.93 million.

Balance Sheet and Liquidity • Total assets stood at RMB 5.80 billion; total liabilities RMB 3.20 billion. • Current ratio eased to 1.63 (FY 2025: 1.67). • Cash and cash equivalents amounted to RMB 992.21 million, down 18.60% from end-2025. • Interest-bearing borrowings were RMB 373.70 million, 77% of which mature between two and three years. • The group remained in a net cash position; gearing ratio not applicable.

Operational Highlights • Third-party customers contributed 92.0% of revenue, up from 91.5% a year earlier, underscoring reduced reliance on related-party business. • The company exited loss-making public property projects and tightened admission standards to protect cash flow and margins.

Capital Management and Corporate Actions • No significant acquisitions or disposals occurred during the period. • Share option and share award schemes recorded no new grants. • No interim dividend was declared for the period.

Outlook Statement Management expects industry challenges—homogeneous competition, rising costs, and slower property deliveries—to persist in 2H 2026. The company intends to maintain prudent operations, focus on quality service, intensify third-party market expansion, and continue regional optimisation.