On August 28, MIDEA REAL EST (03990.HK) held its 2025 interim results presentation, attended by Executive Director and President Wang Dazai, Executive Director and CFO Liu Min, and Company Secretary Wan Jingli.
For the 2025 interim period, MIDEA REAL EST delivered impressive results. During the industry's deep adjustment phase, the company demonstrated strong development momentum with a clear strategic layout and sustainable operational capabilities, achieving steady business growth. All four core business segments worked synergistically, entering a new development cycle.
**Core Financial Metrics Show Steady Growth, First Interim Dividend Declared**
In the first half of 2025, MIDEA REAL EST achieved operating revenue of 2 billion yuan, representing a 41% year-on-year increase, placing the company among industry leaders in growth rate. The property management services segment contributed 930 million yuan in revenue, up 9% year-on-year, while the development services segment generated 500 million yuan. The company's profitability continued to improve, with core net profit attributable to shareholders reaching 310 million yuan, a 119% year-on-year increase. The gross profit margin remained at a high level of 30.8%. Through refined operations and cost control, the company achieved steady profit growth, demonstrating strong earnings resilience.
In terms of financial structure, the company maintained stability and showed strong risk resistance capabilities. Total assets reached 9.49 billion yuan, with net assets of 4.98 billion yuan and operating net cash flow of 440 million yuan. The company maintains zero interest-bearing debt and abundant cash reserves of 1.27 billion yuan, representing industry-leading levels. This healthy financial structure provides the company with greater resilience and flexibility amid market volatility, while ample cash reserves serve as a solid barrier against market risks and prepare sufficient resources for future strategic deployment and investment opportunities.
Regarding shareholder returns, MIDEA REAL EST firmly implements a high dividend policy, declaring its first interim dividend of HK$0.15 per share. Cumulative dividends per share total approximately HK$7.61, with cash alternatives for distribution in specie at HK$5.90 per share, totaling HK$13.51 per share, continuously protecting shareholder interests. Since its listing in 2018, MIDEA REAL EST has maintained a competitive dividend policy in the industry for seven consecutive years, demonstrating its commitment to value sharing and rewarding shareholder trust and support through concrete actions.
**Four Business Segments Work Synergistically to Build Full Value Chain Service Ecosystem**
In the first half of 2025, MIDEA REAL EST continued to deepen its full value chain service platform construction. Centered on four core segments - "development services + property management services + asset operations + real estate technology" - all business lines advanced together, achieving high-quality development.
In development services, MIDEA REAL EST focused on key cities, leveraging existing resources and core advantages to actively expand value creation for shareholders, achieving operating revenue of 500 million yuan. While undertaking full-chain development management resources from controlling shareholders and providing design, construction management planning and implementation, and other related supporting services guided by technology, health, and energy efficiency, the company actively pursued quality external expansion. In 2025, it added 4 third-party residential projects with full-cycle contracts worth 160 million yuan. Notably, Wuxi Midea Dongwang Mansion, as MIDEA REAL EST's first light-asset flagship project, achieved 472 million yuan in sales upon opening with over 90% sell-through rate, setting new records in the regional premium market and exceeding client expectations in both volume and price.
In property management services, Midea Services under MIDEA REAL EST enhanced satisfaction through service quality, expanding both internally and externally to achieve dual growth in scale and quality. Interim revenue reached 930 million yuan, up 9% year-on-year, with managed area of 79.46 million square meters and contracted area of 96.06 million square meters. In residential services, Midea Services continued upgrading, launching Meizun 2.0 and Meixiang 2.0 service standards and systems, supporting community renewal through product upgrades and quality-first approaches. Meanwhile, through continuous community operations, it created vibrant and sustainable community ecosystems, launching new community operation models featuring crowdsourcing, self-governance, co-construction, and sharing through the Beautiful Life Manager mechanism. In non-residential sectors, Midea Services tapped into industrial resources, focusing on industrial parks and medical care core formats. Non-residential contracted revenue reached 510 million yuan, with industrial park and medical care formats contributing 330 million yuan. The company signed 7 ten-million-yuan-level projects including Midea East China Innovation Headquarters and Wuxi Testing and Certification Research, showing significant external expansion results.
In asset operations, MIDEA REAL EST achieved dual-wheel drive through commercial and industrial park operations. Midea Commercial, based on self-held projects and leveraging leasing and operational capabilities, systematically expanded commercial operation tracks, achieving revenue of 230 million yuan. Self-held projects maintained 91% occupancy rates, with 13 operating commercial properties covering diverse formats including urban complexes and specialty districts. Focusing on key cities, the company accumulated 5 light-asset projects and asset management projects, providing services to property owners through commissioned management and brand export, expanding business scale and enhancing brand influence. Industrial park operations are rooted in the Guangzhou-Foshan base camp, building composite park ecosystem service capabilities. Midea Industrial Development operates 4 industrial park projects. Foshan Ruichuang Center and China Plastics World achieved contracts worth 290 million yuan; Shanghua Industrial Park maintained over 99% occupancy with annual rent exceeding 80 million yuan. In the first half, Midea Industrial Development expanded 2 Foshan projects through development and management contracts, managing approximately 300,000 square meters, with expected full-cycle development and management income exceeding 110 million yuan.
In real estate technology, the company focused on core products to continuously empower quality construction, achieving operating revenue of 290 million yuan. Through integrated digital, green, and industrial design, it provides customers with green full value chain business scenario services, building intelligent, healthy, and low-carbon quality homes.
**Anchoring Good Products, Good Services, Good Operations to Embrace "Stock Quality Enhancement" Transformation Opportunities**
Executive Director and President Wang Dazai stated at the results presentation that the real estate industry is currently in a transformation period from "incremental expansion" to "stock quality enhancement." Facing new industry situations and demands, MIDEA REAL EST will firmly focus on the real estate industry chain, centering on development services and real estate technology to provide full lifecycle services and operations.
Wang Dazai noted that good products and good services are now common pursuits across the industry. MIDEA REAL EST, originating from manufacturing, has integrated the precision, efficiency, and technological intelligence of industrial manufacturing into the company's product genes. Currently, the company's products focus more on modern aesthetics, function-first design, and premium materials, empowering living experiences through smart home environments, integrating millimeter-level craftsmanship with intelligent systems to achieve unity between function and aesthetics, reshaping quality residential benchmarks with industrial-grade precision standards. MIDEA REAL EST will approach product development with greater patience, craftsmanship, and empathy to provide truly satisfying products for customers in the new cycle.
Wang Dazai emphasized that the company will persist with its "Service+" strategy, focusing on first and second-tier cities, strengthening service capabilities across residential, industrial park, and medical care formats. Through differentiated product capabilities and lean services, it will deeply serve 450,000 families and 1.5 million property owners, enhancing customer full lifecycle value through refined operations.
Looking ahead, MIDEA REAL EST will continue deepening internally and expanding externally, leveraging clear strategy, abundant capital, and a trustworthy brand to actively embrace the industry's "stock quality enhancement" transformation opportunities.