On September 21, Aolian Service Group Co., Ltd. (hereinafter referred to as "Aolian Service") saw its prospectus, first submitted to the Hong Kong Stock Exchange at the end of March this year, expire. Just nine days later, the company resubmitted its prospectus for a second attempt. Despite achieving high net profit growth during the reporting period (2022-2024 and the first seven months of 2025), issues such as regional concentration, declining renewal rates, and negative operating cash flow cannot be ignored. Regarding questions about the company's market share expansion, specific strategic plans to reduce regional dependence, and measures to improve operating cash flow, a company representative stated on October 10 that "the company is not considering these matters at the moment," and no response to interview questions was received by press time.

Keri Property Management Research Director Ma Yanjiao emphasized that small and medium-sized property management companies currently face increased listing difficulties, with capital increasingly concentrating on leading enterprises with scale, sustainable profitability, and business independence, driving the industry's transformation from past scale expansion to deep competition focused on service quality, technology empowerment, and robust finances.

**Approximately 40% of Revenue from Guangdong**

According to the prospectus, as an independent third-party property management company, Aolian Service was established in 2006 with headquarters in Guangzhou. According to China Index Academy data, Aolian Service ranked 16th and 11th respectively among China's top 100 independent property management service providers in 2024 by total revenue and net profit.

From an equity structure perspective, Aolian Service's ownership shows high concentration, with controlling shareholder Su Tianpeng holding 84.15% of shares. Through employee shareholding platforms and parties acting in concert, Su Tianpeng effectively controls 99% of the company. The only external shareholder is Jiameida Group Limited, established in February 2025, holding merely 1% of shares.

From 2022 to 2024, Aolian Service's operating revenue increased from 342 million yuan to 476 million yuan, with a compound annual growth rate of approximately 18%. In the first seven months of 2025, the company's revenue reached 293 million yuan, up 7.9% year-on-year.

Revenue from commercial and urban space services was approximately 247 million yuan, 302 million yuan, and 307 million yuan in 2022, 2023, and 2024 respectively, contributing 72.2%, 70.1%, and 64.6% of total revenue. By the end of July 2025, this segment generated 175 million yuan, accounting for 59.7% of total revenue.

In terms of growth, Aolian Service managed 176 commercial and urban space service projects in 2022, increasing to 183 by the end of 2024, showing limited growth. Correspondingly, community life service projects under management grew from 87 in 2022 to 156 in 2024, driving continuous increase in revenue share from this segment.

During the same period, revenue from community life services was approximately 95 million yuan, 129 million yuan, and 168 million yuan respectively, accounting for 27.8%, 29.9%, and 35.4% of total revenue. By the end of July 2025, community life service revenue reached 118 million yuan, representing 40.3% of total revenue.

However, Aolian Service's regional dependence remains prominent. As of the end of July 2025, the company managed 269 projects, including 149 commercial and urban space projects and 120 community projects, covering 25 provinces nationwide. Revenue from Guangdong Province accounted for 40.6%, 40.5%, 40.4%, and 36.5% of total revenue in 2022, 2023, 2024, and the first seven months of 2025 respectively, indicating that regional market fluctuations could significantly impact company performance.

As an independent third-party property management company, Aolian Service lacks the project pipeline advantages of affiliated real estate developers, with all managed area acquired through market expansion. During the track record period, all customers for commercial and urban space services were independent third parties. The company emphasized in its prospectus its plan to acquire equity in third-party commercial and urban space service providers and community life service providers to increase the number of managed projects.

**Surging Accounts Receivable, Operating Cash Flow Under Pressure**

In terms of profitability, although Aolian Service's commercial and urban space service revenue growth was modest, gross margins improved significantly. Due to improved gross margins in commercial projects, this business segment's gross margin increased from 8.3% in 2022 to 11.7% in 2024, driving overall company gross margin from 14.4% in 2022 to 18.4% in 2024.

Combined with revenue scale expansion and gross margin improvement, the company achieved rapid net profit growth. Net profit increased from 27.4 million yuan in 2022 to 44.6 million yuan in 2024. In the first seven months of 2025, the company achieved net profit of 27.3 million yuan, up 47.6%.

However, behind profit growth, the company's financial health shows hidden concerns, particularly regarding accounts receivable. According to the prospectus, trade receivables increased 41.9% to 180 million yuan in 2024, following approximately 60% growth to 130 million yuan in 2023. Trade receivables surged from 81 million yuan at the end of 2022 to 213 million yuan at the end of July 2025, representing 163% growth, while turnover days extended from 54 days to 142 days.

Regarding the surge in trade receivables, Aolian Service attributed it mainly to increased revenue accompanying business scale expansion, increased revenue contribution from newly acquired subsidiaries (primarily small-scale enterprises accepting longer trade receivable settlement periods), and relatively lengthy internal review and approval procedures for payments by public institutions and government agencies.

Meanwhile, net cash flow from operating activities came under pressure. In 2023, net operating cash flow was negative 9.7 million yuan, and in the first seven months of 2025, this figure reached negative 8.6 million yuan. Aolian Service explained that negative operating cash flow in 2023 was mainly due to increased trade receivables from business growth and increases in prepayments, deposits, and other receivables, while the negative figure in the first seven months of this year was mainly due to decreased contract liabilities and increased income tax payments.

Additionally, renewal rates for the company's core business have fluctuated, drawing market attention. As of the end of 2022, 2023, 2024, and July 2025, renewal rates for managed projects were 67.2%, 55.4%, 59.7%, and 81.3% respectively. The company attributed the sharp decline in 2023 renewal rates to disposal of subsidiaries resulting in non-renewal of some projects, while the low renewal rates in 2023-2024 were related to strategic withdrawal from multiple low-profit projects.

**Property Management IPO Boom Subsides**

Aolian Service's listing difficulties are not unique. Property management stocks, once highly sought after by capital for their "asset-light, high cash flow" characteristics, now face unprecedented neglect, with industry IPO enthusiasm dropping to freezing point. Some listed companies have chosen privatization and delisting, indicating the industry's capitalization process has entered an adjustment period.

According to public information, only two property management companies successfully listed each year in 2023 and 2024. Since 2025, property management IPO enthusiasm remains low. In the first half of this year, no property management companies successfully entered capital markets, with only Aolian Service submitting a prospectus. In the second half, besides Aolian Service's second submission, only China Guoxin Service Holdings Limited submitted its first prospectus on September 30, showing significantly cooled listing enthusiasm.

Even leading property management companies with scale advantages face challenging listing paths. Take Shenzhen Shekou Industrial Zone Property Operation Group Co., Ltd. as an example. By the end of 2024, the company managed 96.69 million square meters with property management business revenue of HK$3.289 billion, up 7.8% year-on-year, demonstrating strong comprehensive capabilities. However, as of April 16, 2025, its listing application had failed four times, further highlighting the current stringent review process for property management company listings.

Moreover, numerous listed property management companies have chosen privatization and delisting in recent years. In September 2024, Huafa Property Services fired the "first shot" of voluntary delisting among property management companies. In March this year, Rongshin Service also completed privatization and delisting, citing reasons including persistently low stock liquidity and inability to perform financing functions.

In Ma Yanjiao's view, the core reasons for the current IPO cooling in the property management industry include weakened capital market confidence, stricter Hong Kong Stock Exchange reviews, and challenges to companies' own profit models.

"On one hand, debt risks from affiliated real estate developers have transmitted to property management companies, and industry valuations have fallen significantly from highs, weakening investor confidence. On the other hand, the Hong Kong Stock Exchange has significantly raised main board listing profit thresholds and strengthened reviews of business independence and sustainability, causing many companies' listing applications to be delayed or even expire. The duration of this situation depends on overall market trends and resolution of these issues," Ma Yanjiao stated.

The industry widely believes that under current capital market conditions, scale and background are no longer "passes" for property management company listings, with profitability and market-oriented levels becoming more critical considerations. "In the long term, market valuations will become more rational, and companies with low related-party risks, healthy cash flows, and ability to independently develop third-party projects will receive premiums," Ma Yanjiao stated frankly.

For property management companies planning listings, requirements have significantly increased: they must demonstrate business highly independent from affiliated real estate developers (such as increased third-party revenue proportion), sustainable profit models and clear technology empowerment paths to improve operational efficiency, while showing strong risk management capabilities to handle market volatility, in order to pass stricter regulatory reviews and win investor confidence.