Yuexiu Services: Full-year revenue in 2025 slightly increased to 3.902 billion, and multiple factors led to pressure on profitability

On March 26, Yuexiu Services released its annual performance report for 2025. The financial report data shows that Yuexiu Services' total annual revenue in 2025 was 3.902 billion yuan (RMB, the same below), a slight year - on - year increase of 0.9%. The managed area increased by 6.0% year - on - year, with the area growth rate faster than the revenue growth. Expenditures in aspects such as personnel costs, horticulture and cleaning expenses, and cost of goods sold increased rapidly, resulting in a year - on - year decrease of 8.5 percentage points in the company's gross profit margin to 14.8%. The net profit attributable to the parent company decreased by 22.5% year - on - year to approximately 274 million yuan. Overall, it presented the characteristics of a slight increase in revenue, a significant decline in profit, and a notable contraction in gross profit margin.

However, while the profitability declined due to factors such as the overall pressure on the industry, Yuexiu Services still maintained financial stability. As of the end of 2025, Yuexiu Services held 4.791 billion yuan in cash and cash equivalents/term deposits, an increase of approximately 200 million yuan year - on - year, ranking among the leading in the industry. In 2025, the overall collection rate of property management fees for managed properties was 91.8%, and the current collection rate of market - expanded projects during the reporting period was 94%.

Mr. Jiang Guoxiong, Non - Executive Director and Chairman of the Board of Yuexiu Services (second from left), Mr. Wang Jianhui, Executive Director and Chief Executive Officer (second from right), Mr. Zhang Chenghao, Executive Director and Executive Vice President (first from left), Ms. Li Huiting, Chief Financial Officer (first from right)

The Board of Directors of Yuexiu Services announced a final dividend of 0.03 yuan per share. Together with the interim dividend, the total annual dividend for 2025 was 0.11 yuan per share, with an annual dividend payout ratio of 60%. Based on the current stock price, the dividend yield reached approximately 7%, and the ROE was about 7.8%.

Yuexiu Services' revenue structure in 2025

01

The downward pressure in the real estate industry has spread to the property service sector. The general decline in the profitability of property service enterprises is currently the most concerned issue in the industry, and it is also intensifying the operational risks of property service enterprises.

At the performance press conference, Li Huiting, the Chief Financial Officer of Yuexiu Services, said that last year, the gross profit margin of Yuexiu Services' basic property management dropped to 11.3%, a year - on - year decrease of 3.7 percentage points. The main reason was the impact of the policy of raising the minimum wage standard in Guangzhou, which led to a rigid increase in labor costs.

The gross profit margin of non - owner value - added services dropped to 10% (a year - on - year decrease of 12.2%), mainly because the real estate industry was in a deep adjustment period, the high - margin businesses and value - added services were reduced, and the change in the business structure affected the gross profit margin level of non - owner value - added services. The gross profit margin of community value - added services dropped to 19.1%, mainly because the company's fine - decoration business had basically been settled, and the income from this kind of high - margin value - added business decreased, pulling down the profit. In terms of the commercial business, due to the pressure on the overall economic environment, the company increased its investment in quality improvement and special investment promotion, and the increased cost led to a decline in the gross profit margin.

From the financial report data, the operating costs of Yuexiu Services' main business segments have increased, and all are facing pressure on profitability.

Among them, the situation of several major costs: In 2025, Yuexiu Services' employee welfare expenses were approximately 708 million yuan (previous year: 687 million yuan), a year - on - year increase of 2.9%.

The cost increase of outsourced personnel was more obvious, with an annual expenditure of 304 million yuan, a year - on - year increase of 33.2%.

The horticulture and cleaning expenses were approximately 700 million yuan (previous year: 528 million yuan), a year - on - year increase of 32.6%, mainly due to the expansion of the business scale.

The cost of goods sold was 314 million yuan (previous year: 226 million yuan), a year - on - year increase of 38.7% along with the growth of the living service business.

Gross profit margin of Yuexiu Services' various business segments

The management of Yuexiu Services said that the company predicts that affected by the upstream real estate industry, the gross profit margin of property service enterprises will still be in a deep adjustment period. The company will reduce costs and increase efficiency in three aspects. First, it will actively expand the non - residential track business. Because the payment subjects of non - residential projects have relatively strong credit and the overall collection rate is relatively stable, expanding non - residential projects can optimize the company's business structure. Second, in terms of value - added services, the company will transform towards operation, especially in the fields of smart home and energy management, and actively incubate and expand these new high - barrier businesses. Third, it will use technology to improve labor efficiency and conduct more refined cost control to offset the pressure of the rigid increase in labor costs caused by the annual adjustment of the basic wage and social insurance and housing provident fund.

In fact, in 2025, Yuexiu Services already tilted towards non - residential business in newly expanded projects. During the reporting period, non - residential business accounted for 87% of the annual market - expanded contract value, and industries such as banks, universities, TODs, and public buildings became the key expansion targets.

The management of Yuexiu Services also reminded that the ongoing adjustment of the business layout of community value - added services may cause certain fluctuations in performance.

02

As of December 31, 2025, Yuexiu Services' managed area was 73.5 million square meters, a year - on - year increase of 6.0%. The group's contracted area was 90 million square meters, a year - on - year increase of 1.4%.

Among them, the proportion of projects from third - parties continued to increase, indicating that Yuexiu Services' independence was increasing.

Proportion of payments from related parties of Yuexiu Services

Divided by property attributes, in Yuexiu Services' managed area, residential properties accounted for 63%, TODs accounted for 15%, commercial and industrial parks accounted for 17%, and public buildings accounted for about 5%.

Divided by regions, the Greater Bay Area accounted for 62%, the central and western regions accounted for 16%, and East China and the North accounted for about 11%.

By the end of 2025, the number of Yuexiu Services' managed projects reached 465, an increase of 28 compared with 2024.

Regional distribution of Yuexiu Services' business

Jiang Guoxiong, Non - Executive Director and Chairman of the Board of Yuexiu Services, said that in 2025, the property management industry had entered a new stage of development characterized by stock competition, quality supremacy, and lean operation. Facing the changes, Yuexiu Services took deepening lean management and organizational change as the starting point. In 2025, it upgraded the service quality, consolidated the foundation of satisfaction, iterated the four - level service system, dynamically matched the labor - efficiency model according to the service level, and accurately responded to the diversified needs of customers.

Jiang Guoxiong revealed that the company's strategy this year is "focus". First, focus on in - depth development in strategic cities and make them more refined. Second, focus on non - residential formats, strengthen the expansion of segmented tracks around the three strategic tracks of business schools, large - scale public buildings, and large - scale transportation. Currently, the company's management has set 12 core cities, including high - level cities such as the Greater Bay Area, the Yangtze River Delta, Beijing, and Tianjin, to consolidate the basic market through in - depth development.

While actively expanding new projects, Yuexiu Services is also using a "withdrawal" strategy to deal with the common industry problem of "continuously declining collection rate".

The financial report data shows that in 2025, Yuexiu Services withdrew a total of 6.5 million square meters of managed area. This was also the main factor leading to the decline in the growth rate of the management scale. The newly added contracted construction area of 9.8 million square meters in that year was largely offset by the withdrawn projects.

Jiang Guoxiong revealed that Yuexiu Services will also deal with the decline in property management fee collection rate in three aspects. First, improve customer satisfaction through maintaining service quality and digital empowerment to enhance customers' willingness to pay. Second, promote more convenient payment channels and launch activities such as prepayment and points - for - property - management - fee. Third, strengthen the account - period management of externally expanded projects, and projects with expected payment overdue for more than two contract periods will start the exit review.

According to Yuexiu Services' statistical data, about 92% of its managed projects are located in first - and second - tier cities. In 2025, the average price of residential property management fees was 2.9 yuan/square meter/month, an increase of about 0.1 yuan compared with 2024. The average price of newly delivered residential projects in 2025 was 3.88 yuan/square meter/month.