Hong Kong – Shimao Services reported a net loss of RMB103.80 million for the six months ended 30 June 2026, reversing a RMB22.26 million profit in the prior-year period as weaker property-management fees and margin compression offset modest growth in value-added operations.

Revenue and Margins • Revenue slipped 7.4% year on year to RMB3.35 billion. • Gross profit contracted 36.2% to RMB452.30 million; group gross margin dropped to 13.5% from 19.6%. • Operating swung to a loss of RMB108.70 million from a RMB40.20 million profit a year earlier. • Basic loss per share stood at RMB0.043 versus earnings of RMB0.003 in H1 2025.

Segment Performance • Property management services contributed 76.4% of revenue at RMB2.56 billion, down 9.0%; margin narrowed to 13.2% (H1 2025: 20.0%) due to lower renewal prices, quality-upgrade spending and higher maintenance costs. • Community value-added services rose 2.2% to RMB550.90 million; margin fell to 15.9% (21.6% a year ago), pressured by rising fixed costs and softer car-park and home-decoration sales. • Value-added services to non-property owners declined 48.9% to RMB31.30 million. • City services inched up 0.7% to RMB208.90 million with margin improvement to 11.3% (9.9% in H1 2025).

Operational Metrics • Gross floor area (GFA) under management dropped 14.4% to 190.20 million sq m as contract terminations (up 219.8% to 35.50 million sq m) outweighed new wins. • Contracted GFA fell 10.7% to 306.50 million sq m. • Newly added GFA from third-party bidding plunged 84.0% to 6.40 million sq m amid tighter project-entry criteria.

Liquidity and Balance Sheet • Cash and cash equivalents, including time deposits, increased 4.7% from end-2025 to RMB3.13 billion, aided by “sustained collection of sales proceeds.” • Net current assets totalled RMB3.40 billion; current ratio stood at 1.6. • Trade receivables rose 8.9% to RMB4.26 billion because of slower collections, while trade payables climbed 56.6% to RMB2.54 billion following adjusted supplier-payment schedules.

Cost Management • Staff headcount edged down 0.5% to 34,435; staff costs fell 9.8% to RMB1.37 billion. • Administrative expenses eased 2.6% to RMB330.80 million, though they increased as a share of revenue to 9.9%. • Impairment losses on financial assets totalled RMB156.93 million, versus RMB235.94 million a year earlier.

Capital Deployment • At 30 June 2026, RMB932 million of IPO proceeds and RMB143 million from a 2021 top-up placement remained unutilised; timelines for deployment have been extended to 2026 amid market uncertainties. • No acquisitions were completed in the period; management reiterated a “prudent” stance toward M&A.

Dividend The board did not declare an interim dividend.

Strategic Priorities Management plans to deepen digital transformation, focus on high-quality project expansion in top-tier city clusters, pursue selective M&A, enhance cost control and broaden community value-added offerings, including elderly-care and community commerce.