EXCELLENCE Commercial Property & Facilities Management Group Limited (EXCELLENCE CM) reported interim revenue of RMB 2.10 billion for the six months ended 30 June 2026, up 5.2% from RMB 1.99 billion a year earlier. Gross profit rose 8.6% to RMB 391.32 million, lifting the gross margin to 18.6% from 18.1%.

Net profit fell 31.4% to RMB 111.28 million as impairment losses on receivables, contract assets and financial guarantees surged to RMB 113.24 million versus RMB 31.08 million in 1H25. Profit attributable to equity holders declined 19.8% to RMB 117.91 million. Net margin narrowed to 5.3% from 8.1%. Basic EPS from continuing operations fell to RMB 0.0966 from RMB 0.1166.

Revenue mix remained dominated by basic property management services, which contributed RMB 1.93 billion (91.8% of total, +7.1% year-on-year). Commercial properties accounted for 70.4% of this segment’s revenue, public & industrial properties 10.5%, and residential properties 19.1%. Revenue from value-added services, including asset, “Zhuopin” business, and construction & M&E offerings, declined 12.4% to RMB 172.02 million, representing 8.2% of total revenue.

Contracted gross floor area (GFA) rose 8.0% to 89.10 million sq.m., while GFA under management expanded 11.9% to 83.09 million sq.m.; third-party projects represented 65.1% of managed GFA.

Cost of sales increased 4.5% to RMB 1.71 billion, chiefly on higher staff and subcontracting expenses. Selling and marketing costs dropped 20.1% to RMB 19.34 million, while administrative expenses rose 6.9% to RMB 112.09 million. Finance costs remained low at RMB 0.17 million.

Total assets reached RMB 5.64 billion; cash and cash equivalents stood at RMB 1.19 billion, up 7.9% from end-2025. Net assets grew 2.8% to RMB 3.95 billion, with an asset-liability ratio of 29.9%. Trade and other receivables increased to RMB 2.06 billion; gross trade receivables from related parties were RMB 777.68 million. Financial guarantee liabilities rose to RMB 139.76 million, reflecting an ongoing guarantee dispute disclosed earlier.

No interim dividend was declared. Management plans to deepen its “three-pillar” strategy—commercial property services, value-added services, and new business segments—while advancing digital transformation, enhancing professional capabilities, and strengthening cash collection and risk controls.