Annual Report Observation | Migratory Birds Staying Behind: Jianye New Life's Performance Flashing Red

Guandian.com plots financial figures along a trend line, and by 2025, Jianye New Life once again reaches the curve’s downward dip.

On March 20, Jianye New Life announced its full-year 2025 performance, achieving revenue of 2.76 billion yuan, down 6.2% year-over-year; gross profit of 544 million yuan, down 15.1%; net profit of 167 million yuan, down 29.83%, with a net profit margin of 6%.

Although the company’s operations in 2023, a loss-making year, were relatively stable, all key indicators declined across the board, still signaling a red flag for Jianye New Life’s performance.

Industry challenges persist, with the advantages of property management companies becoming more distinct. The shift from “management” to “service” logic is increasingly emphasized. As profit fluctuations become more frequent and pronounced, Jianye New Life has already reached a crossroads of re-planning its direction and adjusting its performance structure.

On the other hand, rising accounts receivable and asset impairment pressures weigh on the company. As the largest “cash cow” in the Jianye Group, Jianye New Life has yet to escape the influence of related real estate companies.

Jianye New Life is like a migratory bird staying in the north, waiting for its southern companions to return. But before that, it must withstand the biting cold winds of winter.

Red Flag

In 2023, Jianye New Life underwent major business restructuring and adjustments, transforming its three main segments—property management services, value-added community services, and commercial asset management and consulting—into property management services, community value-added services, and non-owner value-added services.

Management of Jianye New Life described this business adjustment as a “return to the original intention,” emphasizing two key areas, one of which is the company’s foundation—property management.

From a business perspective, property management services constitute the bulk of revenue. Emphasizing core business means that any fluctuation in property management could pose a severe test for the company’s operations.

The property management industry is shifting from scale obsession to quality enhancement. However, before completing this transition, scale remains a crucial foundation for property management companies. For Jianye New Life, which has not ventured into new areas like urban services or group dining, changes in scale are directly linked to revenue fluctuations.

Based on the experience of returning to positive growth in 2024, Jianye New Life relied on property management services, which accounted for 77.9% of total revenue, to stabilize growth and boost overall revenue growth rate. This growth was largely driven by an increase in total managed area.

By the end of 2024, Jianye New Life’s total managed area was 197 million square meters, up 8.3% year-over-year, consistent with the growth rate of property management service revenue.

In 2025, the managed area decreased by 1.2% year-over-year to 194 million square meters. Property management services quickly lost double-digit growth, recording 2.299 billion yuan, a slight increase of about 1 million yuan.

According to the annual report, the reduction in managed area was mainly due to Jianye New Life voluntarily withdrawing from some loss-making communities during the year. The managed area from third-party property developers decreased by 4.93 million square meters compared to the previous year.

Revenue from property management services was still able to maintain growth, possibly because the average management fee rate for residential properties increased slightly by 1.14% to 1.77 yuan per square meter per month.

However, property management services, which account for nearly 80% of revenue, failed to sustain the upward trend. The decline in community value-added services and non-owner value-added services collectively contributed to the overall revenue decrease of Jianye New Life.

During the reporting period, community value-added service revenue was 430 million yuan, down 21% year-over-year; non-owner value-added service revenue was 38.57 million yuan, down 64.5%.

The business structure is closely tied to real estate, and Jianye New Life has yet to shake off the turbulence caused by cyclical fluctuations. Community value-added services mainly include smart community solutions, park sales services, move-in services, and lifestyle services; non-owner value-added services include pre-sale services and site management.

Jianye New Life stated that the decline in community value-added service revenue was mainly due to the continued sluggishness of the domestic real estate market, leading to reductions in related renovation businesses such as balcony enclosures and renovation inspections, as well as decreased park sales services. The decline in non-owner value-added services was compounded by ongoing industry adjustments and the company’s proactive contraction.

On one hand, market demand for improved service quality is rising; on the other hand, the deep connection with the real estate industry has led to contraction in related business areas, which also triggered a red flag for Jianye New Life’s gross profit.

During the period, Jianye New Life’s gross profit was approximately 544 million yuan, down 15.1% year-over-year; gross profit margin was 19.6%, down 2.1 percentage points.

Specifically, the increase in service quality led to higher costs, with gross profit from property management services decreasing by 9.42% to 442 million yuan, and gross margin dropping by 1.9 percentage points to 19.2%. Affected by industry, market, and proactive contraction, gross profits from community value-added and non-owner value-added services were 94.42 million yuan and 7.02 million yuan, respectively, down 27.4% and 67.78% year-over-year.

Challenges

At the Jianye Group management annual meeting before the 2026 Spring Festival, founder and chairman Hu Baosen chose to attend online for the first time, marking his first absence from the Zhengzhou venue.

Under debt pressures, Hu Baosen traveled to Hong Kong to promote debt restructuring. As Jianye’s largest cash flow guarantee in mainland China, Jianye New Life still faces the reality of industry dividend fading and the pain caused by related-party connections.

When listed in 2020, Jianye New Life promised investors to gradually de-merge from real estate and reduce related-party transactions.

Five years later, Jianye New Life no longer discloses the proportion of income from Jianye Group, but traces of real estate remain evident in trade receivables.

From 2020 to 2023, receivables from related parties accounted for 71.56%, 63.35%, 64.38%, and 57.01% of total trade receivables, respectively. As of the end of 2023, related-party receivables totaled about 1.694 billion yuan.

In 2024, total trade receivables were 3.326 billion yuan, with related-party receivables still at 1.64 billion yuan, accounting for 49.3%.

By the end of 2025, total trade receivables expanded to 3.627 billion yuan, with growth entirely from third parties. Related-party receivables remained at 1.604 billion yuan, most likely overdue by over three years.

According to previous profit warning announcements, the decline in net profit was mainly due to impairment losses on financial and contractual assets, and a decrease in gross profit margin.

Within the year, impairment losses on financial and contractual assets totaled 138 million yuan, an 84.5% increase from the previous year. The annual report indicated that this impairment was mainly due to increased small owner property fees receivable and slow collection of receivables.

Considering that related-party receivables have remained nearly flat over three years, this impairment not only relates to small owners but also points to liquidity pressures transmitted from related parties, leading to collection crises.

Affected by external and internal operational fluctuations, Jianye New Life’s net profit for the year fell to 167 million yuan, with a net profit margin decreasing by 2.1 percentage points to 6%, and attributable net profit dropping 26.63% to 157 million yuan.

However, excluding impairment losses on financial and contractual assets, fair value changes, and disposal of subsidiaries, core attributable net profit still declined by 4.76% to 280 million yuan.

Perhaps the impact is not only from related parties; Jianye New Life is facing unprecedented challenges at the business level. Although it is regarded as the largest cash flow safeguard within Jianye’s entire business system, its cash holdings in 2025 have significantly shrunk.

As of December 31, 2025, the company’s cash and cash equivalents were about 413 million yuan, down from approximately 1.19 billion yuan at the same period last year. Restricted cash at year-end was about 8.59 million yuan, an increase of 720,000 yuan year-over-year; additionally, there are bank loans of 52 million yuan from subsidiaries.

Considering the current cash flow situation and business development needs, Jianye New Life also announced further changes to the use of funds from the 2025 performance release.

When listed in 2020, the net proceeds from the offering were about 2.088 billion yuan. By the end of 2025, the net used funds amounted to 1.736 billion yuan, leaving 352 million yuan remaining.

Due to slower-than-expected progress in community value-added services and extended receivables collection cycles, Jianye New Life decided to reallocate unused proceeds toward investing in information technology systems, enhancing platform user experience, and developing value-added services.

However, the related-party situation has yet to improve, and the foundation is subtly weakening. Jianye New Life’s potential goal is not to restore growth but to halt the decline and survive.