--- title: "Listed companies in 2025 \"unboxing\": Who is swimming naked, and who has surplus?" type: "News" locale: "en" url: "https://longbridge.com/en/news/279522535.md" description: "This article analyzes the 2025 performance forecasts of the property sector in the A-share and Hong Kong stock markets, revealing the trend of survival of the fittest in the industry. Some companies, such as FIRST SERVICE and RSUN SER, are facing losses, while CG SERVICES, despite being affected by goodwill impairment, still maintains revenue growth. In contrast, DOWELL SERVICE and JIAYUAN SER have turned losses into profits due to special opportunities. Overall, the property industry shows a clear \"two extremes\" pattern" datetime: "2026-03-18T02:39:16.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/279522535.md) - [en](https://longbridge.com/en/news/279522535.md) - [zh-HK](https://longbridge.com/zh-HK/news/279522535.md) --- # Listed companies in 2025 "unboxing": Who is swimming naked, and who has surplus? Another year of earnings season has begun. The A-share property sector has seen China Merchants Jinling (001914.SZ) complete its "submission," while most Hong Kong property companies are scheduled to report in the last few days of March. However, several have recently released performance forecasts for 2025. The industry has transitioned from a period of widespread growth as a "real estate appendage" to a fierce competition of "survival of the fittest." Analyzing the data, some have "fallen" due to goodwill impairment, others have "bled" from accounts receivable explosions, and some have managed to "stand out" by resolving historical issues... Each performance forecast is like a health check report, clearly marking who is swimming naked and who is stockpiling food for winter. Profits and losses are like fire and ice Looking at the property companies that have released forecasts, their performance shows a significant "fire and ice" pattern. On one hand, some companies are deeply mired in losses or facing a sharp decline in profits. First Service Holdings expects a net loss of no more than 40 million yuan, further widening from a loss of about 6.3 million yuan in 2024. RSUN SER anticipates a shift from profit to loss, recording a net loss of approximately 32 million to 36 million yuan. Jianye New Life expects a year-on-year decrease in net profit of about 27% to 32%. Excellence Commercial Services has warned that the profit attributable to equity shareholders is expected to drop sharply by about 60% to 70% year-on-year. Xingyue Kanglv has maintained profitability, but its expected profit attributable to owners is forecasted to be halved from about 96.2 million yuan to 50 million to 55 million yuan. Jingcheng Jiaye is also facing a profit decline, with an expected decrease in profit of 30% to 40% for the year. As an industry leader, CG SERVICES has not been spared either. Affected by goodwill impairment, accounts receivable cleanup, and a reduction in potential consideration income, its expected net profit attributable to the parent is only 500 million to 700 million yuan, a significant drop from 1.808 billion yuan in 2024. However, its revenue still maintains a steady growth of about 10%, demonstrating the resilience of its core business. On the other hand, some property companies have achieved counter-cyclical growth or turned losses into profits due to special opportunities or prudent handling in the past. DOWELL SERVICE expects to record a net profit of 20 million to 40 million yuan, successfully turning a profit. JIAYUAN SER has resolved historical unauthorized guarantee issues by signing a mandatory execution mediation agreement, confirming a reversal of approximately 109 million yuan in provisions, and expects profit attributable to owners to surge to 120 million to 150 million yuan. This clear differentiation indicates that the property management industry is no longer a safe haven that can rely on the "shade of the big tree" of real estate parent companies. The individual risk management capabilities, the weight of historical burdens, and the speed of strategic adjustments are becoming key variables determining current performance Three Major "Blood Loss Points" A deep analysis of the core reasons disclosed in the profit warning of property companies reveals three common "pathogens" that erode profits: Firstly, the risk spillover from related real estate parties, with receivable impairments becoming a "money-eating beast." This is undoubtedly the biggest pain point faced by property companies currently. As related real estate developer clients continue to fall into liquidity difficulties, the risks are directly transmitted to the property companies. Hongyang Services clearly attributes the primary reason for its performance turning from profit to loss to this, stating that "the impairment provision for receivables from related parties has significantly increased." Jianye New Life also pointed out that the increase in net impairment losses on financial and contract assets is one of the factors leading to reduced profitability. Zhuoyue Business Services also mentioned that the active cleaning of long-aged trade receivables from related parties has led to increased impairment losses. Country Garden Services similarly listed "actively cleaning long-aged trade receivables" as one of the important reasons for the decline in profits. The past close financial interactions between property companies and related real estate parties have now turned into financial risk exposure in the current environment. Secondly, the "aftereffects" of goodwill impairment have erupted, revealing hidden dangers from past mergers and acquisitions. The large-scale mergers and acquisitions during the industry's peak years are now facing a painful digestion period, with many companies' profit warning announcements mentioning goodwill impairment. First Service Holdings admitted that the increase in losses is mainly due to the underperformance of acquired subsidiaries. Hongyang Services and Xingyue Kanglv also listed goodwill impairment as an important reason for the decline in performance. The main factor for the profit decline at Country Garden Services this time is the full goodwill impairment of approximately 969 million yuan for the sanitation subsidiary "Mangguo Environment" acquired in 2020, due to prolonged customer payment cycles and no significant improvement in operating cash flow, leading the group to strategically shrink related businesses. When market dividends fade, the issue of insufficient self-sustaining ability of the acquired targets becomes glaringly apparent, turning past scale expansions into burdens that consume profits. However, Country Garden Services emphasized in its announcement that goodwill impairment is a non-cash item and does not affect the company's actual cash flow and daily operations. Thirdly, the contraction of high-margin businesses and the rigid rise in costs. With the downturn in the real estate market and weak consumer confidence, the high-margin value-added services of property companies, especially non-owner value-added services and community value-added services, have seen significant contraction. Jianye New Life pointed out that the decline in gross margin is mainly due to the contraction of high-margin services, in addition to the impact of rising costs. At the same time, to enhance customer satisfaction in response to market competition, several companies, including Xingyue Kanglv and Jingcheng Jiaye, have mentioned increasing investment in project resources and quality maintenance costs. Although Country Garden Services' overall gross margin remained basically flat year-on-year, it also faces dual pressures of maintaining service quality and cost control against the backdrop of intensified market competition. In the context of weak or even declining revenue growth, the rigid rise in costs undoubtedly exacerbates profit pressure. The Contest of Resilience Despite the general pressure on profit statements, the performance forecasts also show that property companies are striving to strip away one-time factors, revealing the resilience of their core businesses and their emphasis on cash flow management. Xingyue Kanglv provides a noteworthy perspective: after excluding non-recurring and non-operating profit and loss items such as exchange gains and losses, goodwill impairment, and fair value changes, its expected core net profit is approximately 97 million to 107 million yuan, which is basically on par with about 104.9 million yuan for the 2024 fiscal year This sends an important signal to the market: despite the halving of reported profits, the core profitability of its daily operations has not fundamentally deteriorated. Similarly, Excellence Commercial Services, while forecasting a significant decline in profits, specifically disclosed an improvement in cash flow: the net cash generated from operating activities is expected to turn positive in 2025, with total cash reserves anticipated to be no less than 1.3 billion yuan, more ample than approximately 1.084 billion yuan at the end of 2024. Country Garden Services is a typical representative in this dimension: although the reported net profit attributable to the parent company is only 500 to 700 million yuan, its core net profit attributable to the parent company is still expected to reach 2.4 billion to 2.7 billion yuan. In terms of cash flow, Country Garden Services expects the net cash generated from operating activities in 2025 to be no less than 2.4 billion yuan, with total bank deposits and structured deposits at the end of the year expected to be no less than 17.7 billion yuan. Based on ample cash flow, Country Garden Services plans to distribute cash dividends amounting to 60% of its core net profit attributable to the parent company, with a dividend target of no less than 1.5 billion yuan in 2026, and has already invested over 500 million yuan in share repurchases during the period. In an era where profits are king transitioning to a cycle where cash is king, robust cash flow and ample liquidity reserves are undoubtedly the most valuable "winter coats" to withstand the cold, as well as the confidence to return to shareholders. Looking at the performance forecasts of material companies for 2025, the industry is undergoing a profound process of "removing the false and retaining the true." On one hand, the credit risks from real estate-related parties and the goodwill burdens from past mergers and acquisitions continue to be cleared, causing severe disturbances to short-term profits. On the other hand, those material companies that can effectively manage receivables risks, cautiously handle historical legacy issues, and find a balance between cost and quality still have solid core business value. For investors, it may be necessary to penetrate the fog of reported profits and pay more attention to the company's operating cash flow, core business profitability, and risk control capabilities on the path of independent development. For material companies themselves, completely breaking away from dependence on related parties and establishing a truly sustainable independent development model that can withstand market tests has become a critical question of survival ### Related Stocks - [02352.HK](https://longbridge.com/en/quote/02352.HK.md) - [01153.HK](https://longbridge.com/en/quote/01153.HK.md) - [01971.HK](https://longbridge.com/en/quote/01971.HK.md) - [06098.HK](https://longbridge.com/en/quote/06098.HK.md) - [02107.HK](https://longbridge.com/en/quote/02107.HK.md) ## Related News & Research - [First Service Holding Wins Shareholder Backing for All AGM Resolutions](https://longbridge.com/en/news/290592831.md) - [First Service Holding shareholders approve bylaw amendments at AGM](https://longbridge.com/en/news/290582201.md) - [13:52 ETPremarket Acquires Maklare AI to Build Residential Real Estate's First Demand Intelligence Platform](https://longbridge.com/en/news/290865518.md) - [ARMOUR Residential REIT guides July 2026 common dividend at $0.24 a share](https://longbridge.com/en/news/290734715.md) - [Iguatemi closes R$ 535 million CRI offering backed by unsecured debentures](https://longbridge.com/en/news/290885006.md)