Wanwu Cloud Related-Party Transaction Revenue Drops to 6%, Management: Risk Exposure Further Narrows

The Beijing News Shell Finance News (Reporter Duan Wenping) reported that on the morning of March 20, Wanwu Cloud held its 2025 annual performance release conference. Data shows that in 2025, Wanwu Cloud’s revenue reached 37.27 billion yuan, a year-on-year increase of 2.7%. Excluding developer-related businesses, revenue grew by 8.4% year-on-year. As the core pillar of performance growth, the company’s cyclical business generated 33.40 billion yuan in revenue for the year, an increase of 8.5%, accounting for 89.7% of total revenue, fully demonstrating the stability of its core operations.

However, Wanwu Cloud’s residential property gross profit margin slightly declined by 0.7 percentage points. In response, He Shuhua, Vice Chairman, Executive Director, and Chief Operating Officer of Wanwu Cloud, stated: “Thanks to our steadfast commitment to the Butterfly City strategy over the past years, we have effectively hedged the rigid increase in project costs. However, at the revenue collection end, there has indeed been some fluctuation in gross profit margin. The main reasons are twofold: a decline in collection rates and the presence of a ramp-up period for newly acquired projects.”

On the morning of March 20, Wanwu Cloud held its 2025 annual performance release conference. Performance release conference screenshot

"He said, ‘Difficulty in fee collection may be a common issue across the industry.’ According to CRIC data, the average collection rate of the top 500 property management companies nationwide in 2025 has fallen to 71%, marking a decline for four consecutive years.

Facing these challenges, He Shuhua said the company is actively responding: First, by adhering to the Butterfly City strategy, utilizing professional operations, labor reuse, and a large number of robot-assisted tasks, which greatly improve project management efficiency. Second, assisting developers in clearing out remaining units, using the proceeds from these sales to prioritize paying for vacant property management fees. ‘In the current market environment, we choose to turn passive waiting into active action, which is also one of our major advantages.’ Third, implementing lean operations, tightening standards for new project acceptance, and establishing special management teams for previously accumulated loss-making projects.

He Shuhua believes that as project operations gradually stabilize, profitability will gradually recover.

It is worth noting that Wanwu Cloud’s business independence has further strengthened. Data shows that in 2025, the proportion of revenue from related-party transactions continued to decline by 3.5 percentage points to 6%. Although overall performance is still affected by related-party businesses, excluding developer-related operations, the core net profit increased by 11.1% year-on-year.

Adhering to prudent principles, in 2025, Wanwu Cloud further provisions for impairment of 740 million yuan on receivables owed by related parties, an increase of 480 million yuan year-on-year. This impairment, combined with high costs from a large number of vacant properties, led to a year-on-year decline in net profit during the performance period.

In response, management stated, “Provisioning for credit impairment losses and actively reducing risk exposure, although causing short-term profit pain, lay a solid foundation for high-quality development in the long run.”

At the performance conference, Wanwu Cloud’s Chief Financial Officer Wang Xubin pointed out that the proportion of related-party business continues to decline, which is the result of the company’s proactive management. Looking ahead to 2026, it is expected to decline further. “The issue of accounts receivable from related parties that everyone is concerned about has always been a priority for us—risk control and cash recovery. Currently, our overall risk exposure is further narrowing.”

Editor: Yang Juanjuan

Proofreader: Zhao Lin