Fineland Living Services Group Limited reported a return to profitability for the six months ended 30 June 2026, posting net profit of RMB 5.01 million versus a net loss of RMB 6.52 million a year earlier. The turnaround was driven primarily by a sharp reduction in impairment charges and tighter cost controls, although revenue slipped amid softer value-added service demand.

Revenue and Profitability • Group revenue declined 4.5% year on year to RMB 160.91 million (1H 2025: RMB 168.43 million). • Gross profit was broadly stable at RMB 33.29 million (1H 2025: RMB 33.43 million), while gross margin edged up to 20.7% from 19.9%. • Net profit margin improved to 3.1% (1H 2025: –3.9%). • Profit attributable to owners turned positive at RMB 8.39 million (1H 2025: loss of RMB 5.99 million).

Cost Structure • Cost of services fell 5.5% to RMB 127.62 million, reflecting management’s “stringent cost control” efforts. • Administrative expenses decreased 12.2% to RMB 16.34 million. • Net impairment losses on financial assets contracted to RMB 7.34 million, down 68.8% from RMB 23.58 million a year earlier.

Segment Performance • Property management services remained the core revenue contributor at RMB 145.73 million, down 1.2% year on year. • Value-added services to non-property owners dropped 70.2% to RMB 1.45 million amid fewer projects. • Community value-added services generated RMB 13.73 million, a 10.9% decrease. • Comprehensive real-estate agency services recorded no revenue (1H 2025: RMB 0.69 million).

Balance Sheet and Liquidity • Total assets stood at RMB 298.06 million, with cash and bank balances of RMB 66.71 million, including RMB 2.43 million in restricted deposits. • Current liabilities exceeded current assets by RMB 49.38 million, improving from RMB 61.43 million at end-2025; management highlighted a “material uncertainty” over going-concern status. • Total equity rose to RMB 10.50 million, supported by RMB 22.29 million of non-controlling interests, while equity attributable to owners remained negative at RMB 11.78 million. • The Group reported no interest-bearing borrowings; the gearing ratio (total liabilities/total assets) was 96%.

Corporate Actions and Post-Period Events • On 7 July 2026, Yoncan Co., Ltd. agreed to acquire 50.01% of Fineland Living at HK$0.14 per share, triggering a mandatory general offer. • On 27 July 2026, the Company conditionally agreed to issue up to 370 million new shares at HK$0.14 each, potentially raising HK$51.80 million, and to issue 77 million unlisted warrants at an initial exercise price of HK$0.50. Both transactions require shareholder approval and regulatory consent and had not completed as of this report.

Dividend No interim dividend was declared for the period.

Audit Review The interim results were reviewed by the Audit Committee. The Group’s external auditor has not conducted a review of the interim report.

Outlook Management reiterated its strategic focus on “ensuring cash flow, stringent cost control and earning customer trust,” with continued investment in digital tools such as AI-enabled surveillance and smart-parking solutions to enhance operational efficiency and service quality.