New coach Lin Zhubo turns in his first report card: Yongsheng Services made 437 million last year, and the decline in gross profit still remains to be resolved.

Ask AI · How will the new leader Lin Zhubo guide Yonsun Services to achieve profit growth targets?

This article is sourced from The Times Weekly. Author: Zhang Yijing

Image source: TuChuang Creativity

After a brief recovery on the profit side in 2024, Shanghai-based property management company Yonsun Services has once again turned in a report card of “increasing revenue without increasing profit.”

On March 30, Yonsun Services (01995.HK) released its 2025 full-year results announcement. During the period, the company recorded revenue of approximately RMB 6.866 billion, setting a historical high and up by about 0.4% year over year from 2024; profit attributable to owners of the company was approximately RMB 437 million, down 8.5% from 2024.

As of the end of 2025, Yonsun Services had 1,524 projects under management, with a total gross floor area under management of approximately 252 million square meters, up about 0.6% from the same period in 2024; the number of contracted projects was 1,824, with contracted area of 354 million square meters, up about 0.8% from the same period in 2024.

It is worth noting that the above financial report is also Yonsun Services’ first annual results after “the new boss,” Lin Zhubo, took office. According to available materials, on September 1, 2025, Lin Zhubo took over from Zhou Hongbin to formally become President of Yonsun Services. In June 2025, he was appointed a non-executive director of the Yonsun Services Group; previously, he served as Vice President of Agile? Actually earlier, he was Vice President of Agile? — correction: Prior to that, he was Vice President of the Agile? — The text says “Xuhui Group Vice President and President of the West China Regional Group.” So translate accordingly: he had been Vice President of Xuhui Group and President of the West China Regional Group.

At the 2025 annual results briefing held on March 31, Lin Zhubo said that over these six months, he had led several key initiatives, including presiding over the completion of the company’s 2026 comprehensive operating plan, budget, and resource allocation work, which was completed by the end of 2025.

He pointed out that 2026 is a pivotal year for Yonsun Services, serving as a bridge between the past and the future. The company has already established clear operational and management guidelines internally to ensure that profit growth is greater than revenue growth, and that revenue growth is greater than expense growth. Centering on the core goal of “double-digit profit growth,” the company expects full-year profit growth of 8%-10%.

In the secondary market, on March 31, Yonsun Services’ share price rose. By market close, the company’s share price was HK$1.79 per share, up 6.55% from the previous trading day, with a total market capitalization of approximately HK$3.083 billion.

Property management business drives growth alone

Yonsun Services is a property management company backed by property developer Xuhui Holdings (00884.HK). Its business covers a wide range of property types, including residential properties and non-residential properties—covering office buildings, shopping malls, schools, hospitals, scenic areas, government buildings, highway service stations, rail transit, and ferry terminals, among others.

The company’s revenue is mainly composed of four major business segments: property management services, community value-added services, value-added services for non-owners, and city services. Among these, property management services are the company’s most important revenue source, with the revenue proportion consistently staying above 50%.

Financial report data show that Yonsun Services’ growth in 2025 benefited from the performance of its property management services business. During the period, revenue from property management services was RMB 5.451 billion, up 7.1% year over year, accounting for 79.4% of total revenue.

However, besides growth in property management services, revenue from the company’s other three major business segments all declined. Among them, community value-added services had the smallest decline, generating revenue of RMB 796 million, down 7.7% year over year; city services generated revenue of RMB 233 million, down 18.7% year over year; value-added services for non-owners saw the largest decline, generating revenue of RMB 382 million, down 36.2% year over year, which was RMB 217 million less than in 2024. Its share of total company revenue fell to 5.5%.

Image source: Yonsun Services’ 2025 annual results report

Regarding the sharp drop in value-added services for non-owners, Lin Zhubo said that in the past, this business segment was highly related to Xuhui Holdings. Now, as the level of marketization continues to increase, the correlation is no longer high. This reflects that the business has not yet formed an independent second growth curve. However, he believes that it is currently the historical low point for the revenue scale of value-added services for non-owners.

According to Lin Zhubo, for value-added services for non-owners, Yonsun Services is actively adjusting and exploring new directions. Taking space renovation as an example, Yonsun Services has built an end-to-end service around “move-in ready—cooking and dining life—worry-free leasing and sales.” The pilot was launched before the Spring Festival. On March 27, model units were unveiled. By the evening of the 30th, within just three days, it had achieved 9 deals placing orders. Such businesses rely on professional capabilities to create incremental value around housing space. In addition, the company is also promoting product research and development for offerings such as house repair and maintenance to expand the product line for value-added services for non-owners.

In his view, although the total size of the property management industry has already reached RMB 1.6 trillion, there is still room for growth in the future. As demand is released, the turnover rate of residential property in key cities has doubled; about 20,000 residential communities enter a re-selection cycle each year. Across the country, more than 40% of residential units have been in use for over 20 years—this is an opportunity for companies with standardized operations and professional capabilities.

Gross margin pressured, management expects it to remain in the 17%—20% range

Looking through the financial report, it can be found that Yonsun Services’ “increasing revenue without increasing profit” mainly stems from a decline in gross margin.

Data show that in 2025, the company achieved gross profit of RMB 1.302 billion, down 3.5% from 2024; gross margin was 19.0%, down 0.7 percentage points year over year.

By major business segments, in the reporting period, the gross margin for value-added services for non-owners and city services was 7.1% and 13.4%, respectively, up 0.7 percentage points and 2.5 percentage points from 2024.

Meanwhile, the gross margin dragging down the company came from its two major businesses: property management services and community value-added services. Of these, the gross margin for property management services was 18.2%, down 1.1 percentage points from 2024; the gross margin for community value-added services was 31.4%, down 3.3 percentage points from 2024.

In response, Yonsun Services’ chief financial officer Zhou Di attributed the decline in gross margins for the two businesses to both external and internal factors. Externally, the macroeconomic environment has brought challenges to the property management industry, affecting both revenue breakthroughs and cost control. Internally, Yonsun Services has proactively increased investment in quality improvement—such as converting some outsourced employees to in-house roles and improving park/community quality—measures related to which increased costs.

For the fundamental property management business that serves people’s livelihoods, Zhou Di believes that the current gross margin is still within a reasonable range. Yonsun Services has consistently not pursued the highest possible gross margins; instead, it is willing to use gross profit to give back to some high-quality projects to enhance their quality. Going forward, through means such as AI, human-machine collaboration, and lean operations, the company is confident it can keep the gross margin for fundamental property management at 15%—18% in 2026—2028.

As for community value-added services, he said they remain an important pillar of the property industry and have community barriers. The company has already integrated a big operations center, and is advancing the “satisfaction to business” implementation initiatives. It is expected that in the future, community gross margin will be maintained in the range of 30%—35%.

“Overall, the company is still facing some pressure on gross margin, but we will continue to optimize the structure of revenue and gross margin contributions. Through the implementation of lean operations and new products and new services, we aim to maintain consolidated gross margin within a reasonable range of 17%—20%,” Zhou Di said.