S-Enjoy Service Group released its unaudited interim results for the six months to 30 June 2026, showing a marked rebound in profitability despite a top-line decline.
Revenue and Mix • Group revenue slipped 7.70 % year on year to RMB 2.14 billion. • Property management services contributed 81.3 % of turnover at RMB 1.74 billion (-2.6 %), reflecting intensified competition and selected project terminations. • Community-related value-added services fell 24.2 % to RMB 375.16 million amid weaker consumer demand and strategic scaling-back of non-core offerings; share of group revenue narrowed to 17.5 %. • Developer-related value-added services generated RMB 26.25 million (-31.5 %), now just 1.2 % of total revenue.
Profitability • Gross profit declined 14.2 % to RMB 403.33 million; gross margin compressed 1.5 ppts to 18.8 %. – Property management margin eased to 16.9 % (-1.6 ppts). – Community value-added margin improved to 28.8 % (+1.4 ppts) on business mix adjustments. – Developer-related margin narrowed to 7.6 % (-2.1 ppts). • Profit for the period surged 43.0 % to RMB 134.48 million, driven by lower administrative expenses (-14.4 %) and a RMB 56.16 million reduction in impairment charges. • Profit attributable to shareholders rose 51.1 % to RMB 129.05 million; basic and diluted EPS increased to RMB 0.15 (H1 2025: RMB 0.10). • Net profit margin improved to 6.3 % from 4.1 % a year earlier.
Cash Flow & Balance Sheet • Cash and cash equivalents stood at RMB 1.91 billion, down 11.2 % from end-2025, reflecting seasonal operating cash outflows and lower value-added service scale. • Total assets were RMB 5.49 billion; equity attributable to owners reached RMB 2.16 billion. • Net current assets improved to RMB 870.72 million (31 Dec 2025: RMB 813.07 million). • The group remained debt-free, maintaining a zero gearing ratio. • Financial assets at fair value totalled RMB 415.52 million, or 7.6 % of total assets; no single investment exceeded 5 % of assets.
Operational Developments Management highlighted a strategic shift from scale expansion toward quality growth, focusing on core city projects and cost discipline. Twelve artificial-intelligence applications have been deployed across more than half of managed projects to enhance service efficiency, risk control and customer interaction.
Trading Suspension and Governance Updates S-Enjoy Service’s shares have been suspended from trading on the Hong Kong Stock Exchange since 1 April 2025. Key steps toward resumption include: 1. Auditor transition from PwC to Grant Thornton in July 2025. 2. Completion of an independent forensic investigation into historical related-party fund transfers; all identified fund occupation fees have been fully repaid. 3. Implementation and verification (June 2026) of enhanced internal-control measures recommended by an external consultant. 4. Submission of a detailed resumption proposal to the Stock Exchange on 27 June 2026. The company states operations remain stable while it works toward meeting resumption requirements.
Dividends The board has not declared an interim dividend for H1 2026, citing the intention to conserve cash for future development.
Outlook Management expects China’s property-services market to remain challenging but sees prospects in focusing on “quality over quantity” and leveraging AI-driven efficiency gains. The company plans to deepen technology deployment while continuing efforts to reinstate share trading.