Midea Real Estate: Last year's net profit attributable to the parent core increased by over 19%, and the dawn of the industry is getting closer and closer.

Midea Real Estate Discloses Its First Annual Report After Restructuring.

On March 31, Midea Real Estate Holding Co., Ltd. (03990.HK) released its 2025 full-year results. The data show that in 2025, Midea Real Estate achieved operating revenue of RMB 4.15 billion, up 11.4% year over year. The gross profit amounted to RMB 1.37 billion, up 2.5% year over year, with a gross margin of 32.9%. Net profit attributable to owners was RMB 559 million, up 16.9% year over year. Core net profit attributable to owners was RMB 601 million, up 19.3% year over year.

In its annual report, Midea Real Estate stated that since it completed a major asset restructuring in 2024 and divested its property development business, 2025—its first year of deepened transformation—has continued to strengthen the coordinated development of its four major business segments: “development services, property management services, asset operations, and real estate technology,” achieving a key transition from “business restructuring” to “improvements in quality and efficiency.” Among these, the development services business is a newly added business segment after Midea Real Estate’s restructuring. It mainly undertakes full-cycle services for the real estate development resources held by its controlling shareholder, and aims to continuously cultivate development services capabilities across the real estate industry chain through an asset-light model.

The annual report shows that in 2025, Midea Real Estate’s full-year development services revenue was approximately RMB 958 million, up 227.1% year over year. At the same time, leveraging 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, driven by product quality and customer-segment positioning, achieved a first-phase sales and pre-sale take-up rate exceeding 90%, and both its pricing and sales performance exceeded the expectations of the contracting party.

In terms of property management services, the annual report of Midea Real Estate indicates that in 2025, the Group’s property management services solidified the basic base of residential services, while also leveraging the controlling shareholder’s advantages across the industrial chain to deepen its layout in areas such as industrial parks and medical and eldercare. By the end of the reporting period, the contracted area for property management services was 99.64 million square meters, and the area under management was 86.32 million square meters.

In asset operations, it mainly focuses on two tracks: commercial operations and industrial park operations. By the end of the reporting period, it held five self-operated commercial assets. The operating profit margin of the Foshan Yueran Plaza remained at a high level, while the Guiyang Yueran Plaza and Guiyang Yueran Time also entered a stable growth stage. Meanwhile, it has ownership rights (or usage rights) to three industrial parks. Among them, the Shanghua Industrial Park achieved a rental occupancy rate of 98% in 2025. The Foshan Ruichuang Center and China Plastic World are in the sales-and-delivery stage, and the sales amount during the year was RMB 510 million.

In addition, Midea Real Estate said that in 2025, through market-based validation of its asset-light operating capabilities via models such as entrusted management and brand output, it added eight asset-light operating projects during the year, covering benchmark projects such as the Guangzhou Nansha Wanqingsha integrated complex and the Shunbei • Ruichuang Intelligent Manufacturing Park.

In real estate technology, with “building good homes” as the core goal, leveraging its “real estate + technology manufacturing” industrial gene advantages, it focuses on areas such as design technology and smart home solutions, providing technology enablement for “good homes.” By the end of the reporting period, the signed contract amount for the real estate technology segment during the year reached RMB 457 million.

In terms of financial structure, according to the data, Midea Real Estate’s total assets were RMB 9.63 billion, shareholders’ equity was RMB 5.04 billion, and its asset-liability ratio fell to 47.7%. Return on equity (ROE) was 11.4%, and total cash amounted to RMB 1.65 billion.

Regarding shareholder returns, Midea Real Estate announced that its 2025 final dividend would be HKD 0.19 per share, with an interim dividend of HKD 0.15 per share, for a total annual dividend of HKD 0.34 per share.

Midea Real Estate believes that, currently, the real estate industry is still in a transformation phase, but the dawn is getting closer and closer. The core position of the “good homes” concept continues to stand out. Returning to a customer mindset and to value creation will open up new space for the company’s development. Focusing on asset-light businesses, supported by its three major capabilities—products, services, and operations—continuously strengthening core competitiveness is the fundamental basis for Midea Real Estate’s sustainable development. Leveraging high-quality holding-type assets, optimizing asset allocation with the help of financial instruments, and gradually building new growth drivers; the two will interact in a healthy way to progressively form the Group’s core competitive moat and internal growth drivers, supporting long-term and steady development.