Viewpoint | Wanwu Cloud's Minimalism and Breakthrough Battle

Guandian.com On March 20, Wanwu Cloud held its 2025 annual performance conference. Attending executives included Chairman, Executive Director, and General Manager Zhu Baoquan; Vice Chairman, Executive Director, and Chief Operating Officer He Shuhua; Vice General Manager and General Manager of Asset Operation Center Ye Fei; Financial Director Wang Xubin; and Board Secretary Huang Min.

Zhu Baoquan stated at the start of the performance conference that the industry in 2025 continues to be affected by developers. Over the past three years, related businesses of property companies involved in real estate development have steadily decreased, and this impact is still reflected in some companies’ financial statements.

According to Guandian New Media, from the performance perspective, after excluding related-party influences, Wanwu Cloud’s results are outstanding, proving that the company’s strategy is correct.

Still “Letting Go and Simplifying”

In 2025, Wanwu Cloud achieved operating revenue of 37.27 billion yuan, a year-on-year increase of 2.7%; gross profit of 4.56 billion yuan; annual profit of approximately 772 million yuan; and net profit attributable to the parent of about 695 million yuan.

From a business perspective, community space residential consumption services generated full-year revenue of 23.234 billion yuan, up 10.8% year-on-year, accounting for 62.3% of total revenue, an increase of 4.5 percentage points year-on-year, making it the company’s largest revenue source.

Commercial and urban space integrated services earned 11.791 billion yuan, accounting for 31.7% of total revenue; AIoT and BPaaS solution services totaled 2.247 billion yuan, representing 6.0% of total revenue.

In market expansion, Wanwu Cloud performed notably, adding 362 residential property service projects throughout the year, with 247 projects in existing markets. Newly signed annualized revenue increased by 21.1% year-on-year. Among these, 51 projects were obtained through a “flexible pricing” model, accounting for about 20% of existing market expansion projects.

As a result, Wanwu Cloud’s residential property service revenue reached 20.926 billion yuan, up 8.9% year-on-year. By the end of the period, the number of managed projects reached 4,638, demonstrating significant market expansion results.

Data shows that the gross profit margin for the residential property services division was 11.7%.

Chief Operating Officer He Shuhua explained that, from a cost perspective, thanks to the continued promotion of the Butterfly City strategy, project operation costs remained roughly the same as in 2024. Therefore, fluctuations in gross profit margin were mainly driven by revenue factors.

He Shuhua pointed out that due to rising vacancy rates and a wave of property fee reductions, some owners’ willingness to pay decreased, negatively impacting collection rates. Additionally, new projects often experience a ramp-up period; many projects in the competitive existing market are not perfect at the start, requiring extra investment during initial takeover to improve them. This results in initially lower gross margins, which gradually recover as operations stabilize.

Regarding the company’s disconnection from the parent company’s business, Wanwu Cloud has taken another big step.

Data shows that in 2025, the company’s continued related-party transaction income was 2.24 billion yuan, a decrease of 1.2 billion yuan from the previous year, further reducing its proportion of total revenue by 3.5 percentage points to 6%, enhancing business independence.

Financial Director Wang Xubin said this was a result of proactive management. In the short term, it does create some pressure, as related-party business shrinks, leading to decreases in revenue and gross profit. But in the long run, this is an essential step toward optimizing revenue structure, improving operational quality, and strengthening business independence.

Wang Xubin also noted that for existing related-party receivables, the company always prioritizes risk control and cash recovery. Throughout the year, the company actively promoted receivables collection through multiple channels, including cash payments, debt offsetting, and asset liens, achieving a total recovery of 2.85 billion yuan. By year-end, the balance of related-party receivables decreased by 382 million yuan, a 15.6% reduction, with an additional 478 million yuan recovered after the period.

“Looking ahead to 2026, we expect related-party transactions to further decline.”

As Zhu Baoquan said, the impact of related-party business still appears in financial statements today.

In 2025, Wanwu Cloud further provisioned 740 million yuan for related-party receivables, combined with high costs from vacant properties, leading to a year-on-year decline in net profit.

Wang Xubin also stated that the company’s true core business is increasingly market-oriented and non-related-party. In 2025, non-developer business revenue reached 34.72 billion yuan, up 8.4%; gross profit was 3.89 billion yuan, an increase of 140 million yuan year-on-year.

Excluding developer-related businesses, the company recorded an 8.4% increase in revenue and an 11.1% increase in core net profit year-on-year.

“Warring States” Era for Breakthroughs

Regarding the current competition in the property management industry, Zhu Baoquan believes the market is in a “Warring States era.”

His reasoning is: over the past five years, as property companies have entered the market, fierce competition has emerged. Overall, competition for each quality project has become intense; and the concentration of large-scale property companies is accelerating.

Zhu Baoquan predicts that the number of companies in the industry will shrink from hundreds of thousands to tens of thousands. “Of course, the process of consolidation doesn’t mean small companies will disappear entirely, as there will always be small but excellent firms. Those that can withstand the trend of consolidation will see exponential growth in the future.”

He also mentioned that the core task of the real estate development industry over the past three years has been “ensuring delivery,” which is now nearing completion. He believes both developers and property companies are currently facing the issue of “resolving vacant properties.” If not addressed well, this could trigger a new round of risks.

Regarding the disposal of vacant houses and the collection of property fees, Zhu Baoquan said the company has launched an initiative to “assist developers in selling and renting properties.”

By the end of 2025, Wanwu Cloud had built the foundation for 690 Butterfly Cities, covering about half of its managed projects. On this high-density foundation, the company’s business has extended from traditional property transactions to full lifecycle asset preservation and appreciation services.

Zhu Baoquan mentioned that in cyclical businesses like leasing and buying/selling, the company focuses on key cities, deepening regional efficiency, and continuously increasing market share. Its subsidiary, Pulin, surpassed 15% market share in the top ten second-hand housing markets in 2025, with Zhengzhou reaching as high as 47%. Chengdu, Wuhan, and Yantai each exceeded 30%.

Additionally, the house repair business grew 67.1% year-on-year in 2025; the self-operated renovation business saw a 26.6% increase in new signed contracts.

While consolidating its core business, Wanwu Cloud is also leveraging Lingshi to explore new growth areas such as energy management. It is building core capabilities in energy intelligent management, precise tuning, energy-saving technology upgrades, and microgrid solutions, integrating AI algorithms and IoT to achieve real-time energy efficiency monitoring and autonomous control at Level 3.

Ye Fei, General Manager of Asset Operation Center, shared that Wanwu Cloud has deployed 932 Lingshi units across 66 cities and 783 projects nationwide. “For Wanwu Cloud, what we rent out is not just edge servers but also the operational processes running on them. This approach allows us to continuously optimize customer workflows, turning one-time sales into ongoing incremental revenue.”

Ye Fei also noted that in standard scenarios such as residential communities, industrial parks, urban areas (parks), hotels, retail chains, and hospitals, the market feedback for Lingshi has been very positive.

Regarding future performance guidance, Zhu Baoquan said it is often affected by related-party and other uncertain factors.

Board Secretary Huang Min added that the company’s future performance will still be influenced by macroeconomic conditions and industry cycles. He expects some fluctuations in mid-2026, “but rest assured, our main goal for the year is to maintain overall stability, and we will work to hedge external risks.”

Disclaimer: The content and data in this article are compiled by Guandian based on publicly available information and do not constitute investment advice. Please verify before use.

(Edited by: Wang Zhiqiang HF013)