Midea Real Estate 2026 Interim Results: Revenue Falls 5.7%, Margin Expands to 33.5%, HK$0.12 Interim Dividend Announced

Bulletin Express09-28

Midea Real Estate released its 2026 interim report covering the six months ended 30 June 2026. Revenue slid 5.7 % year-on-year to RMB 1.88 billion, but gross profit edged up 2.6 % to RMB 630.45 million as the gross margin improved to 33.5 %, a 2.7 ppt rise. Net profit dropped 16.8 % to RMB 260.46 million, while core net profit attributable to shareholders declined 18.1 % to RMB 255.50 million. Basic and diluted EPS stood at RMB 0.18 (1H 2025: RMB 0.21).

Segment-wise, Project Management Services generated revenue of RMB 329.61 million (-34.7 %), reflecting lower development activity. Property Management Services held steady at RMB 912.70 million (-1.9 %). Asset Operation revenue more than doubled to RMB 558.65 million (+103.2 %) on industrial park deliveries, lifting group margins. Real Estate Technology revenue decreased 71.6 % to RMB 81.52 million due to softer market demand.

Total assets stood at RMB 8.91 billion, 7.4 % lower than end-2025, while total equity inched up to RMB 5.06 billion. Cash and bank deposits were RMB 1.17 billion (31 Dec 2025: RMB 1.65 billion). Short-term borrowings fell sharply to RMB 50.00 million from RMB 591.92 million, reducing the gearing ratio to 43.3 % (end-2025: 47.7 %).

Operating activities generated net cash of RMB 278.28 million; investing consumed RMB 187.16 million, and financing outflows reached RMB 571.55 million, mainly due to loan repayments. Cash and cash equivalents declined to RMB 1.12 billion. The weighted average effective interest rate on borrowings was 3.09 % per annum.

The Board declared an interim dividend of HK$0.12 per share, payable on or about 22 December 2026 to shareholders on record as of 4 December 2026; the stock will trade ex-dividend on 1 December 2026.

Governance updates include the appointment of Mr She Zuojun as Executive Director on 6 July 2026 and the resignation of Mr Hao Hengle on 24 June 2026.

Management reiterated its strategic focus on a light-asset model spanning Project Management, Property Management, Asset Operation, and Real Estate Technology, aiming to deepen presence in core cities, expand third-party projects, and sustain cash-flow-generative services.

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