Dexin Services Group Limited (Dexin Services, 02215) reported a 5.8% year-on-year increase in net profit to RMB 36.67 million for the six months ended 30 June 2026, supported by firmer margins in its core property-management activities despite sluggish growth in ancillary businesses.

Revenue edged up 0.7% to RMB 446.20 million. Property-management services—contributing 95.2% of group revenue—grew 4.0% to RMB 424.94 million, offsetting sharp contractions in value-added services to non-property owners (-54.5% to RMB 6.29 million) and community value-added services (-27.9% to RMB 14.97 million).

Group gross profit rose 7.4% to RMB 101.42 million as the gross margin widened to 22.7% from 21.3%, reflecting a shift away from lower-margin and non-strategic projects. Net profit margin improved to 8.2% (H1 2025: 7.8%). Profit attributable to shareholders, however, declined 10.8% to RMB 30.47 million, affected by a RMB 14.17 million impairment on receivables and a RMB 65.04 million equity dilution loss linked to a capital increase at subsidiary Dexin Shengquan Property Services.

Total assets reached RMB 1.48 billion, up from RMB 1.15 billion at end-2025, after consolidating Deqing Moganshan Ruijing Real Estate, whose acquisition added hotel and right-of-use assets of RMB 217.17 million. Total equity rose to RMB 555.88 million, supported by a RMB 55.11 million non-controlling interest capital injection. Cash and bank balances stood at RMB 168.43 million, while borrowings increased to RMB 149.00 million following the consolidation of the newly acquired subsidiary.

Operationally, gross floor area (GFA) under management expanded 5.0% to 40.16 million sq m across 295 projects, with total contracted GFA at 42.12 million sq m. Residential properties generated 74.5% of property-management revenue; non-residential assets, including commercial complexes and public facilities, provided the remainder.

Dexin Services improved its geographic mix, with Zhejiang province accounting for 73.5% of managed GFA, while projects in the wider Yangtze River Delta and other regions represented 16.2% and 10.3% respectively.

During the period, executive director and president Tang Junjie was appointed board chairman following the resignation of Hu Yiping. The group confirmed full compliance with Hong Kong’s Corporate Governance Code, albeit with the combined chairman-CEO role constituting a deviation from code provision C.2.1.

No interim dividend was proposed.