With 4.94 million square meters of land returned and 10.42 million square meters of new area added, Yuexiu Services stopped losses while expanding its business scale in the first half of the year.
On August 24, Yuexiu Services released its 2026 interim performance announcement. In the first half of the year, the company recorded a total revenue of 1.915 billion yuan, a slight year-on-year decrease of 2.4%; the net profit attributable to owners of the company was 224 million yuan, down 6.6% year on year; the overall gross margin was 21.5%, rising 0.2 percentage points against the trend year on year.
As of the end of June, Yuexiu Services had a contracted area of 95.02 million square meters and a managed area of 79.82 million square meters, up 5.6% and 8.6% respectively compared with the end of 2025.
Source: Official channel of Yuexiu Services
In 2026, the property management industry faces two major challenges: First, the collection rate has declined. According to data from CRIC and China Index Academy, the national property service satisfaction score dropped from 75.6 to 72.8 in 2025, and the average collection rate of the top 500 property enterprises has declined for four consecutive years to 71%, while the customer payment cycle has been extended; Second, brand property enterprises have seen a continuous wave of exiting projects, which further leads to the dilemma of narrowing growth rate of enterprise scale and deteriorating profitability of existing projects.
In the first half of the year, Yuexiu Services actively withdrew from inefficient projects covering 4.94 million square meters. The company's management believes that the current active project withdrawal wave is a necessary stage for the industry to return to rationality, which is essentially a stop-loss mechanism; actively withdrawing from projects with prominent quality-price contradictions caused by past low-price competition, owners' demands for lower configuration but higher quality, low collection rate and operating losses is a reasonable operational stop-loss behavior.
While making "subtractions", the core fundamental business has shown strong resilience. In the first half of the year, Yuexiu Services' basic property management revenue reached 840 million yuan, up 17.3% year on year, and its proportion in total revenue expanded to 44%; if combined with commercial operation revenue, the total proportion of the two in total revenue rose to 59%. The business structure continues to converge to the rigid-demand fundamental disk, effectively hedging the fluctuations of value-added and commercial sectors.
In the first half of the year, the company's newly added contracted area reached 10.42 million square meters, a sharp year-on-year increase of 74.8%; the newly added managed area was 11.29 million square meters, more than doubling year on year by 1.2 times. Among them, nearly 84% of the newly added contracted area came from market-oriented expansion, and the proportion of non-residential formats reached 68%, up 22 percentage points year on year; among the newly added contracted areas from market expansion, the non-residential format area reached 7.09 million square meters, accounting for more than 80%.
"Non-residential formats have become the fundamental disk of the industry's development, and professionalization and comprehensive service capabilities are the key," said Jiang Guoxiong, non-executive Director and Chairman of the Board of Yuexiu Services. Since the establishment of the non-residential business division at the end of last year, the company has successively won benchmark projects including Wuxi Xiakewan International Cultural Tourism Project (over 1 million square meters), Guangdong Provincial Headquarters of China Unicom, Guangzhou-Shenzhen Intercity Express Railway, and Guangshang Center, and has successfully broken into three core strategic cities: Beijing, Chengdu and Xi'an.
Although the fundamental disk is stable, the simultaneous decline of revenue and profit in the first half of the year is still the core pressure signal in this interim report, and the profit decline is larger than the revenue decline.
The revenue decline mainly comes from two major sectors: First, the community value-added service revenue decreased by 27.2% year on year to 406 million yuan, the core reason is that there was 108 million yuan of fine decoration business carry-over revenue in the same period of last year, and there have been no new fine decoration contracts since the second half of last year; Second, the commercial property management and operation service revenue decreased by 8.5% year on year to 339 million yuan, affected by the active withdrawal of low-yield external expansion projects, the delayed entry of new projects concentrated in the second quarter, and the slight decline in the occupancy rate of existing projects.
In terms of profit structure, the gross margin of the traditional advantageous commercial sector has declined. In the first half of the year, the gross margin of commercial business dropped from 27.5% to 26.1%. The company's management admitted that the weak national commercial market atmosphere in the first half of 2026 and the continuous rise of investment promotion costs are the main reasons for the decline in gross margin, and the subsequent recovery is highly dependent on the recovery of the macro consumption environment.
Source: Official channel of Yuexiu Services
Even with short-term performance pressure, Yuexiu Services still has a solid financial safety cushion. As of the end of June, the company's total cash and time deposits were nearly 5 billion yuan, an increase of 63 million yuan over the beginning of the year.
Regarding the subsequent capital investment direction, the company's management revealed at the performance meeting that the focus of future investment will be on non-residential formats, consolidate advantages in core cities, guarantee investment in service quality, and stabilize customer satisfaction and collection rate; In addition, digital investment will continue to be increased, to build an integrated command center for all business formats, promote human-machine collaborative remote management and control, so as to achieve cost reduction and efficiency improvement. The company will remain relatively cautious about peer mergers and acquisitions and industrial chain investment, while actively seeking high-quality opportunities.