Related-party transactions drop to 7.6%. Is Excellence Business Services breaking through via "third parties"?

On March 27, Zhuoyue Property & Commercial Services held its 2025 annual performance briefing in Shenzhen. According to the financial statement data, after excluding non-operating factors, the company achieved operating revenue of approximately RMB 4.12 billion in 2025, up 8.6% year over year; cash and cash equivalents (including financial assets) were RMB 1.35 billion.

Notably, after fully accruing impairment provisions and actively releasing risks, Zhuoyue Property & Commercial Services reported a net profit attributable to shareholders of RMB 103 million. For the decline on the profit side, the company’s management defined it at the briefing as an “active squeeze of excess water” to deal with industry cycles, along with a bottom-building and restructuring process.

The share of related-party transactions fell to 7.6%

In 2025, China’s property management industry as a whole remained in a deep adjustment period. Data from China Index Academy showed that the revenue growth rate of listed property companies had fallen from about 40% in 2021 to within 4%, while the industry’s overall gross margin dropped from nearly 30% to the 20% range.

Against the backdrop of broad industry pressure, separating burdens and strengthening independence became common choices for property companies.

At the meeting, Xia Shigang, head of the financial management center at Zhuoyue Property & Commercial Services, candidly said, “The decline in profit is a process of actively squeezing out excess water and solidifying the foundation. The impact of impairment provisions does put pressure on the statements in the short term, but after deep market adjustment, the company can move forward with a lighter load and deliver more sustainable and healthy performance.”

The changes in the data support this logic. In 2025, the proportion of related-party transaction revenue for Zhuoyue Property & Commercial Services fell further from 9.9% last year to 7.6%, indicating that business independence has continued to strengthen. Meanwhile, in selecting related businesses, the company reassessed project receivables collection capability, focused on high-quality, reliably collectible projects in areas such as Shenzhen, and proactively terminated services for businesses with lower expectations for collections.

Third-party business revenuehighgrowth

While dependence on related parties decreased, market-oriented expansion of third parties has been becoming the performance foundation for Zhuoyue Property & Commercial Services. The performance announcement shows that, as of 2025, the total managed property area reached 78.27 million square meters, up 8.4%. Of this, the share of third-party managed area increased to 63.6%, and the share of managed area in first-tier and new first-tier cities was as high as 76.5%. During the period, revenue from third-party self-expanded basic property services reached RMB 1.98 billion, up 17.1%, maintaining double-digit growth.

“Strategic customer projects with which we have collaborated for more than five years have reached 47; in 2025 alone, we brought 27 extension projects through strategic customer lead generation.” Yang Zhidong, CEO of Zhuoyue Property & Commercial Services, said at the performance briefing that this is the compounding effect brought by reputation. The data show that the annualized revenue of its strategic customer business increased 24.2% year over year, exceeding the 42.9% year-over-year growth in the number of large projects above 500,000 square meters; the retention rate of contract assets for strategic customers is close to 100%.

In addition, the company’s customer expansion in non-traditional property areas has also attracted market attention. In 2025, Zhuoyue Property & Commercial Services repeatedly won projects such as Alibaba Wangjing A/B buildings and Fangheng International, as well as ZTE’s global headquarters, and entered high-value sectors in the pharmaceutical and semiconductor industries, including Mindray Medical’s Nanjing base, the Suzhou National Laboratory, and the West Lake University Institute of Optoelectronics.

For future performance guidance, management said the company will continue to treat third-party external expansion as a core pillar and growth driver for performance, with both revenue and scale growth maintaining double-digit percentage increases.

Reporting and writing: Sun Yang, Nandu · Bay Finance and Business News reporter