Greentown Services: Revenue of 19.16B yuan in 2025, trade and other receivables of 5.89B yuan

Source: The Paper

On March 23, Greentown Services (02869.HK) held its 2025 performance briefing session. Chairman Yang Zhangfa, CEO Jin Keli, CFO Zhang Lingbo, and others attended.

During the period, Greentown Services achieved revenue of RMB 19.16B, up 7.1% year over year. In recent years, the growth rate of Greentown Services’ operating revenue has slowed. In 2024, the growth rate fell sharply from 17.1% in 2023 to 6.5%, hitting a new low since listing. The growth rate in 2025 rebounded slightly but remained at a low level, representing the second time since listing that revenue growth has been below 10%.

Specifically by business segment, property management services remained the pillar, generating revenue of RMB 13.64B, up 10.0% year over year. Park services recorded revenue of RMB 2.76B, a slight increase of 0.6% year over year. Consulting services generated revenue of RMB 2.76B, a slight increase of 0.4% year over year. Park services and consulting services, accounting for nearly 30% (28.8%), saw their growth rates slow down.

Yang Zhangfa said that in 2026, the market will continue to experience intensified differentiation and a trend of value returning; for 2026, the company’s target is to expand annual saturated revenue by RMB 4.0 billion, with no fewer than 60 projects at the multi-million level.

On the profit side, during the period, Greentown Services recorded gross profit of RMB 3.32B, up 10.3% from RMB 3.01B in the same period of 2024. The gross margin was 17.3%, up 0.5 percentage points from 16.8% in the same period of 2024.

During the period, Greentown Services’ trade and other receivables were approximately RMB 5.89B, up 5.7% from RMB 5.58B in the same period, including trade receivables with an original value of RMB 5.82B. The announcement said this was mainly due to an increase in the balance of receivables brought about by growth in business scale. The announcement states that during the year the company strengthened assessments and controls over cash collection and further accelerated the pace of collections.

Correspondingly, impairment allowance provisions increased in step. The performance announcement shows that during the period, the expected credit losses of the company’s financial instruments rose to RMB 532 million, with a year-on-year increase of 121.1%. The company explained that this was mainly due to the simultaneous increase in impairment provisions brought about by an increase in the balance of trade receivables, as well as the sufficient provision for impairment on the related receivables.

Regarding the issue of cash collection, Zhang Lingbo said at the performance briefing, “Actually, the overall balance of receivables is still relatively high.” In 2025, the company’s operating net cash flow was RMB 1.53 billion. The balance of accounts receivable was RMB 5.1 billion, with a growth rate of 5.3%, which is lower than the revenue growth rate. For 2026, the company’s target collection rate will be no less than that of 2025, and the balance of accounts receivable will continue to be controlled. Zhang Lingbo also said that in fiscal year 2025, the provision rate for bad debts on accounts receivable was 12%, which is an increase of 2 percentage points compared with 2024.

At period-end, Greentown Services had managed area of 566 million square meters, up 11.2% year over year compared with 2024. As the reserve area that will be a major future source of managed area, it was 331 million square meters, down 7.4% compared with 357 million square meters in 2024.

In response, the announcement said that during the year, the company carried out prudent expansion of incremental market opportunities, continued to strengthen the expansion and optimization of high-quality existing projects within cities, and enhanced controls over the delivery of incremental projects. The company also proactively exited some reserve projects in non-core cities and those with delivery risks, in an effort to reduce potential delivery risks in the future. Greentown Services also said that going forward, the company will continue to strictly control entry thresholds for incremental projects, and strengthen process management and risk management for reserve area.

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