Under the dual pressures of property management fee reductions and collection rates, multiple private property companies turn losses into profits in the 2025 fiscal year.

Interface News Reporter | Wang Tingting

In 2025, the property management industry entered a period of deep adjustment. The transmission effects brought about by the downturn in the real estate market are still ongoing. With incremental growth constrained and competition intensifying, and compounded by some projects lowering property fees and pressure on property fee collection rates, property management companies generally face dual challenges in both operations and development.

Recently, Lin Zhubo, President of Yongsheng Service Group (01995.HK), said at an earnings conference that the property industry is currently in a critical transition period from “rapid growth” to “high-quality development.”

“On the one hand, in the context of rapid scale expansion in the past, the industry adopted a broad ‘spray and cover’ approach, and throughout the process there has generally been a problem of declining quality of basic services, which has intensified friction between property owners and property management companies. Coupled with the economic downturn, owners’ willingness to pay has weakened to some extent. At the same time, policy requirements for compliance audits, service transparency, and value-for-money are being continuously raised; rigid costs continue to increase, and the industry is facing multiple pressures.” Lin Zhubo said that property fee reduction policies have been introduced in multiple regions, which has also created a shock to the industry.

Amid the interweaving of multiple pressures, property companies have begun to conduct prudent assessments and selective expansion based on operating factors such as costs, and have taken the initiative to divest projects with poor performance. This optimizes the project portfolio, stabilizes the foundation for income, solidifies the basis for profits, and achieves sustainable development.

According to the China Index Academy statistics, as of April 2, 2026, among the 60 property management companies listed on Hong Kong stocks, 57 have already disclosed their 2025 annual reports; among the 6 property management companies listed on A-shares, 2 have already released their annual reports.

Judging from the operating performance of these listed property management companies, the company with the top operating revenue is Country Garden Services, reaching 484.53 billion yuan; the fastest revenue growth is Jinmao Services, with a year-on-year growth rate of as high as 18.53%; the company with the highest proportion of revenue from diversified businesses is Su Xin Services, at 78.97%.

In addition, Country Garden Services has the highest gross profit, at 84.56%; the highest gross profit growth rate is Green Life of Lanson, up 109.01% year over year; Qifu Life Services has the highest gross profit margin, at 51.92%.

The company with the highest net profit is China Resources Vientiane Life, at 40.84 billion yuan. Jiayuan Services has the fastest growth in net profit, with a growth rate of 889.56%. The highest net profit margin is Qifu Life Services, at 88.87%.

In terms of managed area, Country Garden Services has an approximately 1.07 billion square meters under management, ranking first. Poly Property, Evergrande Property, Greentown Services, and Yasheng Services each have managed area exceeding 500 million square meters. Su Xin Services has the fastest growth in managed area, with a growth rate of 62.12%.

Among the companies that disclose the relevant data, the highest contracted area is Poly Property, at 1.021 billion square meters; Greentown Services ranks second with 0.897 billion square meters. The fastest growth in contracted area is also Su Xin Services, at as high as 16.02%.

Looking at 2025 performance, Su Xin Services also demonstrated steady growth. According to the financial report data, over the past year, the company achieved operating revenue of 973 million yuan, up 5.2% year on year; net profit attributable to the parent company was 66.79 million yuan, up 2.27% year on year. The group’s business is concentrated in the Yangtze River Delta region, and the managed gross floor area from the Yangtze River Delta is about 27.6 million square meters, accounting for 100% of the group’s total managed gross floor area.

It is worth noting that although the industry faced enormous challenges in 2025, quite a number of private property management companies still managed to turn losses into profits, demonstrating strong operational resilience.

According to Interface News, among private property management companies, such companies as Yasheng Services, Shimao Services, Rongchuang Services, and Green Life of Lanson achieved a turnaround in 2025.

Specifically, according to Rongchuang Services’ 2025 full-year performance announcement, the company recorded revenue of approximately 6.816 billion yuan during the period, and profit attributable to owners of approximately 203 million yuan. Compared with the loss of 451 million yuan in the same period of 2024, it turned a loss into a profit.

According to Yasheng Services’ 2025 performance announcement, the company achieved operating revenue of 12.892 billion yuan, down 7.53% year on year; net profit attributable to the parent company was 105 million yuan, turning a loss into a profit.

On March 27, Green Life of Lanson released its 2025 annual results. During the reporting period, the group’s income reached approximately 779 million yuan, which was about 1.3% lower than the income in the same period. Full-year surplus profit was approximately 22.28 million yuan, compared with the loss of approximately 319 million yuan in 2024, showing a clear improvement in performance.

Shimao Services’ performance improvement was even more evident. The data show that in 2025, the company recorded revenue of 7.88 billion yuan, basically flat compared with 7.896 billion yuan in the same period of 2024; annual profit was 135 million yuan, a substantial increase from the annual loss of 223 million yuan in the same period of 2024.

In addition, some other private property management services companies also demonstrated good operating performance, such as New Hope Services, Yongsheng Services, and Binjiang Services.

Taking New Hope Services as an example, in 2025 New Hope Services’ revenue was about 1.54 billion yuan, an increase of 4% from the same period of 2024; gross profit was about 460 million yuan, up 1.6% year on year; net profit attributable to equity shareholders was about 220 million yuan, down 4.7% year on year.

Yongsheng Services also turned in a solid performance. In 2025, Yongsheng Services achieved operating revenue of 6.87 billion yuan, up 0.4% year on year; net profit attributable to the parent was 4.4 billion yuan, with an aggregate gross profit margin of 19%.

In addition, in 2025 full-year Yongsheng Services’ external expansion contract revenue was 1.69 billion yuan, up 7% year on year. As Lin Zhubo explained, “In 2025, Yongsheng Services proactively exited more than 200 low-quality, non-profitable projects, involving an area of about 42 million square meters. Benefiting from improvements in the quality of market expansion, basic service revenue still grew to 3.6 billion yuan.”

Binjiang Services delivered a performance that increased both revenue and profit. According to the financial report data, in 2025, Binjiang Services achieved total revenue of 4.101 billion yuan, up 14.1% year on year; gross profit was 910 million yuan, up 8.9% year on year, with a gross profit margin of 22.2%; the company’s profit attributable to equity shareholders for the year reached 596 million yuan, up 9.0% year on year.

Looking ahead to 2026, industry insiders generally believe that although the property management industry will still face multiple pressures, opportunities for development are also embedded in the challenges, driven by deepening in the stock/remaining inventory market, service upgrades, and more refined operations.

“On the one hand, the market structure continues to optimize, and demand for community services is accelerating in release,” Lin Zhubo pointed out. The total industry scale has reached 1.6 trillion yuan, and there is still room for growth. With demand being released, the turnover rate of residential properties in key cities has doubled; about 20,000 communities enter the re-selection cycle each year. More than 40% of residential buildings nationwide are over 20 years old, which is an opportunity for companies with standardized operations and professional capabilities.

Meanwhile, owners’ demand for high-quality services such as updates to community facilities, energy-saving renovations, and age-friendly services has increased noticeably. Government policy, industry realities, and residents’ needs are moving in the same direction— the concept of ‘good housing’ has been incorporated into the government work report.

“On the one hand, it is both a requirement and an opportunity for the property management industry, and of course, it is also a responsibility,” Lin Zhubo said.