Hongying Urban Services (2529.HK) Announces Full-Year 2025 Results Maintains Profit Growth Under Macro Pressures Highlighting the Resilience of State-Owned Urban Service Platforms

Hong Ying Urban Operation Service Group Co., Ltd. (Stock Code: 2529.HK) announced today its audited full-year results for the year ending December 31, 2025 (“the Year”). In 2025, under multiple challenges such as a complex and changing global macro environment, deep adjustments in the real estate industry, and a slowdown in infrastructure investment growth, Hong Ying Urban Service demonstrated strong operational resilience and counter-cyclical ability. Through a steady increase in property management service projects, rental income from commercial operation services, and management fees, it achieved operating revenue of approximately RMB 675 million, a gross profit of approximately RMB 174 million, and a profit for the year of approximately RMB 74.5 million, representing a year-on-year growth of 4.2%. The basic earnings per share were approximately RMB 0.46, and the board of directors proposed a dividend of RMB 0.24 per share (2024: RMB 0.23), with a payout ratio of approximately 51.6%, highlighting Hong Ying Urban Service’s commitment to maintaining a solid financial foundation while actively returning value to shareholders.

Business Highlights Review

Hong Ying Urban Service has deepened its efforts in Changsha, Hunan Province, creating a cohesive business layout centered around the urban area, serving various owners and developers, and establishing a solid local market position and reputation. The diversified service portfolio helps enhance customer stickiness and brand awareness, driving simultaneous improvements in business and financial performance. According to data from the China Index Academy, Hong Ying Urban Service ranked 42nd among the top 100 property service companies in China for 2025, and has been recognized as “2025 Leading Company in Characteristic Property Services - Urban Lighting,” “2025 Leading Company in Smart City Services,” “2025 Outstanding Property Brand Company in Urban Services,” and awarded the “Best ESG Pioneer Practice Listed Company” by the Hong Kong Commercial Daily.

Performance of Major Business Segments

Property Management Services (accounting for approximately 48.4% of total revenue)

Hong Ying Urban Service provides management services for public, commercial, and residential properties, covering civic squares, parks and scenic areas, urban exhibition halls, government office buildings, schools, commercial complexes, office buildings, marketing centers, and residential communities, and further enhances customer experience through value-added services such as customized maintenance, renovation management, and parking space management.

During the year, revenue from property management services increased by approximately 12.1% year-on-year to approximately RMB 326.2 million. With the support of resources from Changsha Urban Development Group Co., Ltd. (“Chengfa Group”) and actively expanding independent third-party clients, as of December 31, 2025, Hong Ying Urban Service managed a total of 135 property management projects, with 54 new projects added year-on-year, and managed building area increasing by 39.5% year-on-year to approximately 15.9 million square meters. Key projects include the Xiangjiang Wealth Financial Center project (for which Hong Ying Urban Service is responsible for managing and supervising the components within and around the financial center), the Xiangjiang New Area Comprehensive Traffic Hub, and the Changsha International Convention and Exhibition Center, further solidifying its regional leading advantage.

Urban Services (accounting for approximately 41.6% of total revenue)

In the process of providing high-quality and tailored management services to various properties, Hong Ying Urban Service has accumulated rich expertise, experience, and a track record. Relying on this, Hong Ying Urban Service continues to expand its business capabilities, becoming a specialized state-owned urban service provider serving public spaces and municipal infrastructure. Hong Ying Urban Service assists local governments and public institutions in providing urban services to improve citizens’ living experiences and environments. Urban services mainly include (i) landscaping and engineering, including landscape construction and engineering works; (ii) lighting system operations, including landscape lighting operations and functional lighting operations; (iii) parking lot operations, including self-operated and leased public parking space management; and (iv) municipal sanitation services, including cleaning of municipal infrastructure, such as urban roads, building facades along main roads, street lights, and bus stops.

Affected by local government debt repayment and a slowdown in infrastructure investment, some projects experienced expiration or scale adjustments during the year, resulting in urban service revenue of RMB 280.9 million, a decrease of 15.2% from RMB 331.1 million in the same period of 2024, with the total number of projects reduced by 40 to 225. Despite the overall market becoming more cautious, Hong Ying Urban Service successfully undertook several key projects, including the Changsha Broadcasting and Television Transmission Tower renovation project, the Changsha City functional lighting system operation and maintenance project, the “One River, Two Banks” lighting system quality improvement and maintenance project, and the second ring road sanitation integration project (Hedong section), laying a foundation for subsequent structural optimization and service upgrades.

Commercial Operation Services (accounting for approximately 10.0% of total revenue)

Hong Ying Urban Service provides one-stop commercial operation services to developers, owners, and tenants, including preliminary commercial planning, preliminary operation analysis, leasing, lease agreement formulation, opening guidance, and daily operation consulting. As of December 31, 2025, Hong Ying Urban Service provided commercial operation services for 54 commercial properties, with a total managed building area of approximately 0.8 million square meters, maintaining a stable project portfolio. Revenue from commercial operation services during the year was RMB 67.6 million, an increase of 10.2% compared to RMB 61.3 million in the same period of 2024, mainly driven by rental and management fee increases and full-year revenue from newly undertaken projects in 2024.

Outlook

In 2026, Hong Ying Urban Service will continue to uphold the mission of “Making Urban Life Better,” focusing on expanding market share, enhancing brand awareness, and optimizing corporate governance, while strengthening core competitiveness around the following directions:

Consolidate Market Position and Expand Business Scale

Hong Ying Urban Service will further consolidate its core market in Changsha and the surrounding areas, and carefully seek value-added opportunities that align with its strategic vision; in addition to deepening collaboration with Chengfa Group, it will focus on strategic mergers and selective development of independent third-party clients, expanding cooperation with developers, government agencies, and other clients, optimizing service portfolios, and diversifying revenue sources.

Reshape Project Portfolio and Build Competitive Advantage

Hong Ying Urban Service will continue to optimize resource allocation, focusing on high-quality projects and business types with scale effects. On one hand, it will enhance property management capabilities in parks, government properties, and scenic areas, while actively expanding into large markets such as rail transit, schools, residential, and commercial properties; on the other hand, it will replan urban service strategies, expand its layout in urban environmental maintenance, and promote upgrades to urban lighting systems to achieve energy savings and efficiency improvements, while enhancing refined operational capabilities and business model innovation through the development of proprietary intellectual property.

Strengthen Corporate Governance to Ensure Sustainable Development

Under the framework of the 14th Five-Year Plan, Hong Ying Urban Service will continue to improve a high-standard, transparent corporate governance system and implement management optimization measures; at the same time, it will deeply integrate ESG factors into operations, including promoting environmentally friendly property management solutions, strengthening employee development and safety management, and actively participating in community projects to promote environmental and social benefits, thereby safeguarding the long-term interests of all stakeholders.