2026-08-11 10:25
On August 10th, Midea Property (3990. HK) released its 2026 interim results. Midea Real Estate continues to focus on its four core businesses of "development services, property management services, asset operation, and real estate technology", demonstrating strong operational resilience during the industry's L-shaped bottoming cycle. The overall financial structure continues to optimize, with the asset operation sector achieving doubled revenue, significant cost control effectiveness, steady increase in gross profit margin, safe and stable cash flow, and continuous fulfillment of shareholder dividend commitments.
Continuous improvement in gross profit, stable financial foundation
In the first half of 2026, Midea Real Estate achieved operating revenue of 1.88 billion yuan, gross profit of 630 million yuan, a year-on-year increase of 2.6%, gross profit margin of 33.5%, an increase of 2.7 percentage points, and core net profit of 260 million yuan. The delivery of high gross profit asset operation projects and refined cost control jointly drive the increase in profitability.
In terms of financial structure, the company maintains a consistent and stable style, demonstrating strong risk resistance. The company's net assets reached 5.06 billion yuan, with a total of 1.17 billion yuan in cash and bank deposits. The capital structure remains at a healthy level, and the total amount of cash is abundant. The stable financial foundation provides a solid guarantee for the group to continue to cultivate value and seize development opportunities during the industry transformation period.
In terms of shareholder returns, Midea Property has continued its consistent high dividend policy, announcing a mid-term dividend of HKD 0.12 per share. Since its listing in 2018, Midea Property has maintained a competitive dividend policy in the industry for 8 consecutive years, with a mid-term dividend payout ratio of 58%, continuously fulfilling its shareholder return commitment.
The value of light asset operation is highlighted, and the asset operation business has grown by 103%
During the reporting period, Midea Real Estate achieved operating revenue of 1.88 billion yuan, including development service revenue of 330 million yuan, property management service revenue of 910 million yuan, asset operation revenue of 560 million yuan, a year-on-year increase of 103% in fund operation revenue, and real estate technology revenue of 80 million yuan, highlighting the core advantages of the light asset model.
Midea Real Estate focuses on four major business segments: development services, property management services, asset operations, and real estate technology. It focuses on development and construction management, property services, and commercial operations to obtain sustainable operating service fees. It creates a business model that is mainly based on light assets, low debt, and stable cash flow, and builds high-quality residential properties for customers. It continuously improves its property management service capabilities, strengthens its asset operation and management capabilities, and effectively consolidates its product and service capabilities. The core advantages of the light asset model are highlighted.
In the first half of 2026, the asset operation business achieved a revenue of 560 million yuan, a significant increase of 103% compared to the same period last year. This increase was mainly due to the delivery of the American Property Development Plant in this period. It is reported that the company has a total of 14 commercial projects in operation, mainly located in Foshan, Guiyang, Zhuzhou, Handan, Xuzhou and Zhenjiang, including shopping centers, long-term rental apartments and office buildings under the core brands of Yueran Square and Yueran Li. The overall operation of the mall is stable, with an average occupancy rate of about 94%, an increase of 3 percentage points from 91% in the same period last year, demonstrating strong customer gathering ability and sales conversion efficiency. In addition, the four industrial parks have formed effective complementarity with commercial formats, building a richer asset operation and management system. Midea Real Estate stated that it will focus on cultivating cities such as Guangzhou, Foshan, and Guiyang, continuously improving its management capabilities and standardization system through self owned projects, expanding third-party operational projects externally, exporting operational capabilities, brands, systems, and resources, continuously expanding its business scale, and enhancing its light asset operation volume.
Development services are one of the core business segments of Midea Real Estate, mainly focusing on the full chain development and management of real estate, covering services such as product design, planning and construction, sales, and phased development management. During the reporting period, the Group's development service revenue reached 330 million yuan. In the face of market changes and opportunities, Midea Real Estate has focused more on development quality, and has expanded four third-party residential projects around cities such as Wuxi, Xuzhou, and Guiyang, significantly improving the quality of new projects. Among them, the Xuzhou Midea Junlan Yue project adopts an active real estate strategy, reshaping the credit system of the real estate industry, and redefining the experience of buying a house with real and visible quality.
As the core profit pillar of the group, property management service revenue is 910 million yuan, with contract area and under management area of 95.52 million square meters and 84.05 million square meters respectively, which is basically the same as the same period last year, providing sustained and stable operating cash flow. It is reported that Midea Real Estate is building high-quality development capabilities through a "service+" model, empowering urban spatial service ecology, and entering multiple fields such as residential, industrial parks, medical and elderly care, schools, and commercial offices. During the reporting period, residential property services maintained steady expansion as a fundamental sector, relying on deep cultivation of existing projects and expansion into third-party markets to contribute stable cash flow; In terms of non residential business, the company holds a total of 115 projects including managed industrial parks, medical and elderly care facilities, schools, and public buildings. The industrial park services rely on industrial investment and enterprise supporting full chain services to continuously improve the rental rate of the park, becoming the core business of non residential business.
In terms of real estate technology, Midea Real Estate achieved a revenue of 80 million yuan in two major areas: design technology and artificial intelligence home. As a strategic direction continuously cultivated by Midea Real Estate, the company insists on creating "Haozhu" products for customers. Through the Haozhu Technology SISTech system, it creates high-performance living bases, super adaptive interior decoration, and super intelligent sensing systems for users, achieving the upgrade from "house" to "good home". The company is transforming its business through smart manufacturing, digital design, and AI empowerment, exploring the development of diversified products and continuously expanding its full value chain business scenario services. Among them, the whole house shading system is a key cultivation product, specially designed for smart homes, redefining light and shadow control with AI.
Conclusion
A clear strategic layout, robust operational capabilities, and ample cash reserves form a solid foundation for Midea Real Estate to continuously return to shareholders. Looking ahead to the future, Midea Real Estate will continue to release growth momentum in the coordinated development of its four major business segments, improve asset return levels through light asset operations, deepen cultivation in core cities, focus on refined operations, and leverage technology empowerment. While ensuring financial security, Midea Real Estate will steadily expand and adhere to the purpose of creating good houses and providing good services for customers, and continue to explore new paths for the development of the real estate industry.
