Midea Real Estate: Revenue of 4.15B yuan in 2025, net profit increased by 16.9 year-over-year

On March 31, Midea Real Estate (03990.HK) released its 2025 annual results announcement. The announcement shows that, in the first full operating year following the completion of a major asset restructuring and the complete divestment of its real estate development business, the company focuses on four business segments: development services, property management services, asset operations, and real estate technology. Both operating revenue and core profit have achieved steady growth.

Financial data shows that in 2025, Midea Real Estate’s continuing operations recorded operating revenue of RMB 4.149 billion, up 11.4%; gross profit of RMB 1.365 billion, up 2.5%, with a gross profit margin of 32.9%. Net profit attributable to shareholders was RMB 559 million, up 16.9%; core net profit attributable to shareholders was RMB 601 million, up 19.3%. Basic earnings per share were RMB 0.39.

Looking at each business by segment: as a newly added segment after the restructuring, development services performed strongly in the company’s first full year of 2025, achieving revenue of RMB 958 million, up 227.1%, mainly driven by undertaking full-cycle services for projects of the controlling shareholder and expanding into third-party markets.

Property management services, as the core profit pillar, achieved revenue of RMB 1.904 billion, up 3.5%, mainly benefiting from steady growth in the areas under management. As of the end of the reporting period, the contracted property management area was 99.64 million square meters, and the area under management was 86.32 million square meters.

Revenue from asset operations was RMB 835 million. In 2025, the company added 8 light-asset operation projects through models such as entrusted management and brand output, covering benchmark projects including the Nansha Wanqingsha Integrated Complex in Guangzhou and Shunbei · Rui Chuang Zhizao Park.

Revenue from the real estate technology business was RMB 452 million. The company’s core goal is “build good homes.” Leveraging its industry DNA advantage of “real estate + technology manufacturing,” it focuses on areas such as design technology and smart home, building an REMAC+ industry ecosystem, and building end-to-end intelligent solutions centered on intelligent individual products, empowering the intelligent upgrade of residential living spaces.

In retrospect, the company completed a major asset restructuring in October 2024 and divested its former real estate development business. In 2025, the company’s strategic positioning shifted to focusing on high value-added areas across the full real estate value chain, building its core competitiveness with “high-quality held assets as the foundation and light-asset operation capabilities as support.”

The board of directors recommends paying a final dividend of HKD 0.19 per share for the year ended December 31, 2025. Together with the interim dividend of HKD 0.15 per share already paid in December 2025, total dividends for the full year will be HKD 0.34 per share, and the payout ratio will increase to 73%.

In its announcement, the company provides its outlook. The current real estate industry is deepening its transition from “incremental development” to “stock-based operations,” and the “good homes” concept has become a core guiding orientation. Going forward, the group will continue to focus on light-asset businesses by relying on support from its controlling shareholder and its own professional capabilities, using its three major capabilities—products, services, and operations—as support; it will strengthen its core competitiveness, seize opportunities in the industry’s transition, and promote high-quality and steady development. (Wang Luò)

【Source: China Securities Journal · CnStock.com】