Excellence Commercial Property & Facilities Management Group Limited (Excellence CM) released its unaudited 2026 interim report, highlighting modest top-line growth against a tougher earnings backdrop.
Revenue and Segment Trends • Total revenue grew 5.2% year-on-year to RMB2.10 billion, driven by a 7.1% increase in basic property management services to RMB1.93 billion. • Commercial assets contributed 64.5% of total revenue; commercial property management alone made up 70.4% of core service turnover. • Value-added services revenue fell 12.4% to RMB172.02 million, now 8.2% of the revenue mix, as the company trimmed lower-margin, higher-risk offerings.
Profitability • Gross profit improved 8.6% to RMB391.32 million; the gross margin edged up to 18.6% (1H25: 18.1%) on disciplined cost control. • Net profit declined 31.4% to RMB111.28 million, reflecting a jump in impairment charges to RMB113.24 million (1H25: RMB31.08 million), including a RMB16.94 million provision linked to a financial guarantee for Beijing Global. Net margin contracted to 5.3% (1H25: 8.1%). • Earnings per share slipped to RMB0.0966 (1H25: RMB0.1205). No interim dividend was declared.
Balance-Sheet Highlights • Cash and cash equivalents rose 7.9% since year-end to RMB1.19 billion, supported by improved collections and reduced capital spending. • Inventories increased to RMB605.96 million; RMB50.42 million of properties remain subject to legal restrictions tied to vendors’ disputes. • Trade receivables net of provisions grew to RMB1.64 billion; related-party balances stood at RMB777.68 million. • Financial guarantee liabilities expanded to RMB139.76 million following court rulings on a legacy loan dispute. • Net assets totalled RMB3.95 billion; the gearing ratio (liabilities/total assets) was 29.9%.
Operational Metrics • Gross floor area (GFA) under management rose 11.9% year-on-year to 83.09 million sq m, with third-party projects accounting for 65.1%. • Contracted GFA increased 8.0% to 89.10 million sq m. • First-tier and new first-tier cities contributed 75.3% of managed GFA, while the Greater Bay Area and Yangtze River Delta represented 69.6%.
Strategic Focus Excellence CM reaffirmed its “three-pillar” strategy of deepening commercial property services, expanding value-added propositions, and pursuing selective mergers and acquisitions in core economic zones. Digitalisation, talent development and specialised solutions in high-tech manufacturing, cleanrooms and smart park management remain key competitive priorities.
Outlook Management targets “steady growth” through: 1. Continued penetration of high-value clients, particularly in technology, internet and advanced manufacturing sectors. 2. Further optimisation of value-added services with emphasis on higher-margin, customised solutions. 3. Disciplined expansion in first-tier and emerging first-tier cities, coupled with prudent balance-sheet management.
Dividend Consistent with its cash-preservation stance, the board did not declare an interim dividend for the period.
Auditor’s Review KPMG conducted a review of the interim financial report and reported no exceptions.