In 2025, the property management industry remains in a phase of deep adjustment, with companies facing multiple challenges including slowing scale growth, narrowing profit margins, and the restructuring of service standards. Against this backdrop, KANGQIAO SER (02205) released its 2025 annual results announcement on March 30, which clearly reflects the company's operational achievements over the past year and demonstrates its proactive approach to change and steady development.
1. A Solid Performance Foundation: Short-Term Adjustments Do Not Diminish Resilience The core performance indicators for KANGQIAO SER in 2025 reveal a theme of "short-term adjustment followed by stabilization and recovery." The announcement shows the company's full-year revenue was approximately RMB 932 million, a slight year-on-year decrease. Considering the overall industry performance, this adjustment remains within a manageable range and followed a trend of "pressure in the first half, recovery in the second half." Although annual revenue decreased by 3.0% year-on-year, compared to a 6.6% decline in the first half, it indicates that the company achieved positive year-on-year revenue growth in the second half. This suggests that, following short-term strategic adjustments, the company's revenue has returned to a growth trajectory, with a trend of bottoming out and stabilizing now largely established.
Looking at the revenue structure, the core pillar of property management services continues to be prominent, acting as a "ballast" against industry fluctuations. In 2025, revenue from this segment reached approximately RMB 730 million, a year-on-year increase of 7.2%, accounting for 78.4% of total revenue, a further improvement from the previous year. Against the backdrop of continuously declining industry scale growth, KANGQIAO SER has chosen to prioritize "quality over scale expansion." In 2025, the company proactively chose not to renew some loss-making projects. However, through the continuous conversion of high-quality reserved projects, the total gross floor area under its management increased by 5.0% year-on-year to 48.5 million square meters, marking five consecutive years of positive growth since its listing. This adjustment and change essentially represent an optimization and filtering of project quality. By shedding inefficient, loss-making assets and concentrating resources on high-quality projects, the company enhances overall operational efficiency and profitability.
More critically, the company's highly market-oriented business layout provides solid support against industry risks. By the end of 2025, projects from third-party developers accounted for 78.8% of the gross floor area under management and 81.6% of the total contracted area, placing the company firmly among the industry leaders. Temporary "short-term pains" are inevitable during strategic adjustments. However, based on public information such as the company's announcements, its strategic adjustments were largely implemented throughout 2025, with the operational situation gradually improving and the effects of these adjustments beginning to show. "Recovery after radical treatment is far closer to vitality than reckless expansion." As operations continue to improve, KANGQIAO SER is building momentum for a new growth cycle. This proactive rectification is more sustainable than blind expansion and better aligns with the industry's direction of high-quality development.
2. Deepening Focus in Key Regions and Tech Empowerment Build Growth Momentum The key to KANGQIAO SER's ability to maintain its foundation and achieve recovery during the industry's adjustment period lies in its determined push for strategic transformation with an "internal-focused" resolve. Driven by a dual strategy of deepening its presence in key regions and leveraging technological empowerment, the company is transforming short-term adjustments into long-term competitive advantages, exploring a viable path for property management firms to navigate industry cycles.
Where does the company's future growth momentum lie? Currently, it appears to stem mainly from two areas: First, abandoning blind expansion and deepening focus in key regions. KANGQIAO SER explicitly proposed a "deepen focus in key regions" development strategy as early as 2023, concentrating resources on high-potential cities in regions like Henan and the Yangtze River Delta. Through resource concentration and meticulous operation, it aims to build a differentiated advantage. Taking the Nanjing market as an example, the company secured over ten new projects within just two years, forming a pattern of synergistic development across multiple sectors. These range from high-end office buildings like the Nanjing Metaverse Building and the Jiangsu Railway Operation Big Data R&D Center, to cultural and tourist attractions like Nanjing Niushou Mountain, Qixia Ancient Town, and Jinling Small Town, and educational institutions such as Nanjing HeXian School and Nanjing University of Science and Technology. This diverse portfolio creates an interconnected network where different sectors empower each other, significantly enhancing client stickiness and regional competitiveness. The "investment attraction + operation + property management" model at the Qingdao Metro Innovation Industrial Park involves deep integration into the rail transit industrial cluster, attracting quality enterprises like Qingtie Nuoli, Donghu Green Energy, and New Sunshine. This creates an industrial agglomeration effect. Operationally, the park implements a light-asset strategy, building a "space-for-fee" business model that quickly achieves positive cash flow, demonstrating strong professional capability.
Second, empowering services with technology and accelerating the implementation of smart applications. High labor costs, inconsistent service standards, and low operational efficiency are core pain points hindering the high-quality development of the property management industry. Digital technology is becoming key to solving these challenges. In 2025, the company continued to increase investment in smart services, promoting the deep integration of digital and intelligent technologies into various property service scenarios. This led to more intelligent and refined management in operations and cost control: introducing intelligent equipment like AI outbound call robots and sweeping robots to reduce repetitive work costs; implementing a "human-machine collaboration" cleaning model to standardize and refine services; upgrading smart access systems with contactless methods like facial recognition to balance community security with access efficiency. Notably, while deepening its domestic market presence, the company is also making forward-looking moves to access overseas technological resources. By establishing a North American subsidiary and signing memoranda of understanding with companies like a US-based AI-powered home diagnostics firm, it is exploring AI applications in tenant acquisition and operational cost reduction. This "domestic deepening + overseas expansion" technology strategy injects new momentum into its long-term growth.
Overall, KANGQIAO SER's transformation path is clear and pragmatic: solidifying its foundation by deepening regional focus, enhancing operational efficiency through tech empowerment, and strengthening operational resilience with a market-oriented layout. In an industry under widespread pressure, the company has not blindly chased scale. Instead, it has chosen to tap internal potential and seek external breakthroughs, trading quality for space and efficiency for the future. This proactive, "internal-focused" approach to overcoming challenges not only helps it navigate short-term fluctuations but also lays a solid foundation for long-term, high-quality development. KANGQIAO SER's 2025 results, which reflect strategic trade-offs, document the pains and resolve of its "radical treatment," and also highlight the inevitable industry trend of shifting from scale expansion to quality prioritization. Looking ahead to 2026 and beyond, as industry adjustments gradually settle and the company's strategic layout continues to be implemented, KANGQIAO SER is poised to further unleash its growth potential. For the property management industry, cyclical fluctuations are the norm. Only by adhering to quality, proactively innovating, and deeply cultivating value can companies find their positioning and successfully navigate these cycles. KANGQIAO SER's practice demonstrates that only by having the courage to reform internally can a company rebuild its strength; only by returning to the original purpose of service can it journey steadily and far. In the era of high-quality development, this spirit of self-renewal and persistent commitment may provide a replicable model for property management enterprises seeking to traverse cycles and重塑 value.