Sundy Service Group Co. Ltd. (Sundy Service) posted mixed interim results for the six months ended 30 June 2026. Revenue slipped while profitability was squeezed by higher impairment charges despite a rebound in gross margin.

Revenue and Segment Mix • Consolidated revenue fell 7.00% year on year to RMB 108.33 million (USD 15.0 million). • Property management services remained the core contributor, generating RMB 87.90 million, or 81.1% of total sales, down 6.30%. • Community value-added services rose 8.50% to RMB 9.57 million, lifting their share of group sales to 8.8%. • Value-added services to non-property owners plunged 60.30% to RMB 1.81 million, reflecting fewer pre-delivery and sales-assistance projects. • Hotel and other operations delivered RMB 9.05 million, off 2.10%.

Profitability • Gross profit improved 14.80% to RMB 35.40 million as cost controls lifted the gross margin to 32.7% (H1 2025: 26.5%). • Impairment losses on trade receivables surged 84.30% to RMB 20.34 million, while provisions for properties held for sale (RMB 2.36 million) and fair-value losses on investment properties (RMB 1.26 million) weighed on earnings. • Profit attributable to shareholders dropped 55.90% to RMB 4.65 million; basic EPS retreated to RMB 0.12 cent from RMB 0.27 cent.

Balance Sheet and Cash Flow • Cash and cash equivalents rose 15.30% versus end-2025 to RMB 160.67 million, aided by the redemption of wealth-management products. • Current assets totalled RMB 489.12 million against current liabilities of RMB 159.21 million, giving a current ratio of 3.07 (31 Dec 2025: 3.25). • The group remains debt-free with no bank borrowings and reported net assets of RMB 417.02 million. • Trade and other receivables increased 5.50% to RMB 211.68 million; 41.5% of trade receivables were over one year past due. Management continues recovery efforts through regular follow-ups and, if necessary, legal action.

Operational Metrics • Gross floor area (GFA) under management was stable at 8.53 million sq m across 48 projects, while contracted GFA reached 9.40 million sq m. • Residential properties accounted for 85.1% of managed GFA and 66.8% of property-management revenue. Projects linked to Sundy Land Group supplied 89.8% of segment revenue.

Capital Deployment • Interim period investments included multiple short-term structured deposits totalling RMB 88.94 million with Bank of Hangzhou and China Minsheng Bank. All redeemed products delivered annualised returns between 1.47% and 1.87%. • Net IPO proceeds of HKD 133.2 million continue to be deployed primarily toward M&A, smart-community upgrades, and expansion of value-added services. Approximately 71% of earmarked funds for acquisitions and service diversification remain available.

Dividend The board did not declare an interim dividend.

Outlook Management plans to prioritise operational safety, tighten cost controls, expand high-margin community services, and accelerate technology-driven initiatives to build a “second growth curve” while maintaining a prudent financial stance.