Meidi Real Estate's light-asset transformation, with core net profit increasing to 600 million yuan last year

On March 31, Midea Real Estate released its 2025 annual performance.

The financial report shows that for the full year, the company’s revenue from operating business was RMB 4.149 billion, up 11.4% from RMB 3.726 billion in 2024. The company’s gross profit from continuing operations was RMB 1.365 billion, up 2.5% from RMB 1.332 billion in 2024. The gross margin was 32.9%. Attributable core net profit was RMB 601 million, up 19.3% from RMB 504 million in 2024.

Development services are a newly added business segment following the post-restructuring transformation. The business mainly handles end-to-end services for existing real estate development resources of the controlling shareholder. It aims to continuously cultivate development services capabilities across the real estate industry chain through a light-asset model, serving as the core carrier for product value output. In 2025, the company achieved development services revenue of approximately RMB 958 million for the full year, up 227.1% from RMB 293 million in 2024. At the same time, leveraging its excellent product reputation to expand third-party development services, it signed four third-party outward expansion projects during the year; among them, the Wuxi Dongwangfu project achieved a first opening and sales-offtake rate of over 90% through high-quality product performance and precise positioning.

Property management services are its core profit driver. In 2025, the company solidified its basic residential services business while also relying on the controlling shareholder’s advantages in the industrial chain to deepen its layout in areas such as industrial parks and healthcare and senior care. 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. In 2025, property management services revenue was RMB 1.904 billion, up 3.5% from RMB 1.839 billion in 2024.

In addition, in 2025, asset operation revenue was RMB 835 million. Through models such as entrusted management and brand output, it achieved a market-based verification of its light-asset operation capabilities. During the year, eight light-asset operation projects were added, covering the Guangzhou Nansha Wanqingsha integrated complex and the Shunbei · Ruichuang Intelligent Manufacturing Park benchmark project. Real estate technology revenue was RMB 452 million, focusing on areas such as design technology and smart home products, building the REMAC+ industrial ecosystem to provide technological empowerment for “good homes.”

On the financial side, as of the end of the period, Midea Real Estate’s total assets were RMB 9.63 billion, and net assets were RMB 5.04 billion. Its asset-liability ratio was optimized to 47.7%, and its capital structure remained at a healthy level. Return on net assets (ROE) was 11.4%. The company has ample cash resources, totaling RMB 1.65 billion.

Regarding Midea Real Estate, it said that after it completed a major asset restructuring and divested its real estate development business in 2024, 2025 was the first year of deepening its transformation. The company has continued to consolidate the coordinated development framework of its four major businesses, achieving a key leap from “business restructuring” to “improving quality and efficiency.” The group has steadily advanced the four core businesses of “development services + property management services + asset operations + real estate technology,” staying closely aligned with the core direction of “good homes, good services, and good operations,” strengthening cross-segment coordination and driving upgrades to its product, service, and operational capabilities.

Reporting and writing: Wang Yanling, Nandu · Bay Finance Society reporter