Executive Summary
ALiving Smart City Services reported QQ2 2025 results showing a robust topline expansion and meaningful profitability gains while maintaining a very conservative balance sheet. Revenue rose to 6.4655b CNY, up 88.92% YoY, driven by broader service offerings and scale in property management and extended value-added services. Gross profit was 939.27m CNY with a gross margin of 14.53%, and operating income reached 587.14m CNY, translating to an operating margin of 9.08% and EBITDA of 850.97m CNY. Net income came in at 350.30m CNY, or a net margin of 5.42%, with basic earnings per share of 0.24 CNY. The company benefits from extremely low leverage (debt ratio 2.31%, debt to equity 4.85%, long-term debt to capitalization 1.49%), supporting a modest balance sheet risk profile. However, despite solid profitability, free cash flow remains negative on a per-share basis (FCF per share of -0.105 CNY) and operating cash flow per share is also negative (-0.0821 CNY), signaling working-capital intensiveness or timing effects in cash conversion. Trading multiples imply a substantial discount relative to peers (P/E ~2.65x; P/B ~0.38x; EV multiple ~1.90x), which may reflect execution risks, buyer concentration, and near-term cash-flow considerations, despite the positive earnings trajectory. Investors should monitor receivables collection (DSO about 116 days) and potential working-capital optimization as key levers for cash generation going forward.
Key Performance Indicators
Key Insights
Revenue: 6,465,350,000 CNY; YoY growth: 88.92%; QoQ growth: 0.00%
Gross Profit: 939,270,000 CNY; Gross Margin: 14.53%
Operating Income: 587,139,000 CNY; Operating Margin: 9.08%
EBITDA: 850,968,000 CNY; EBITDARatio: 13.16%
Net Income: 350,298,000 CNY; Net Margin: 5.42%
EPS: 0.24 CNY; EPS Diluted: 0.24 CNY; Weighted Avg Shs: 1,419,612,896
Interest Expense: nil; Depreciation & Amortization: 171,200,000 CNY
Tax: 142,493,000 CNY; Effective Tax Rate: 24.1%
Cash Flow: Operating Cash Flow per Share:...
Financial Highlights
Revenue: 6,465,350,000 CNY; YoY growth: 88.92%; QoQ growth: 0.00%
Gross Profit: 939,270,000 CNY; Gross Margin: 14.53%
Operating Income: 587,139,000 CNY; Operating Margin: 9.08%
EBITDA: 850,968,000 CNY; EBITDARatio: 13.16%
Net Income: 350,298,000 CNY; Net Margin: 5.42%
EPS: 0.24 CNY; EPS Diluted: 0.24 CNY; Weighted Avg Shs: 1,419,612,896
Interest Expense: nil; Depreciation & Amortization: 171,200,000 CNY
Tax: 142,493,000 CNY; Effective Tax Rate: 24.1%
Cash Flow: Operating Cash Flow per Share: -0.0821 CNY; Free Cash Flow per Share: -0.105 CNY; Cash per Share: 2.53 CNY; Dividend Payout Ratio: 12.2%; Dividend Yield: 1.15%
Liquidity/Leverage: Current Ratio 1.53x; Quick Ratio 1.53x; Cash Ratio 0.31x; Debt Ratio 2.31%; Debt to Equity 4.85%; Long-Term Debt to Capitalization 1.49%; Total Debt to Capitalization 4.62%; Cash Flow Coverage Ratios negative across several cash-flow metrics
Operational Metrics: Receivables Turnover 0.78x; Days Sales Outstanding ~116 days; Inventory Turnover 163.66x (reflects minimal inventory, service-driven model); Cash Conversion Cycle ~68.75 days
Valuation: P/B 0.383x; P/E 2.65x; P/S 0.575x; EV/Revenue ~1.90x; Dividend Yield 1.15%
Compared to peers (HK listed real estate services): ALiving’s gross margin (~14.5%) lags some peers (e.g., 1516.HK ~21.8%), but net margin (~5.4%) sits mid-pack. The stock trades at a material valuation discount relative to peers, suggesting potential upside if cash conversion improves and margin progression occurs.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
6.47B |
88.92% |
0.00% |
| Gross Profit |
939.27M |
110.89% |
0.00% |
| Operating Income |
587.14M |
180.86% |
0.00% |
| Net Income |
350.30M |
142.81% |
0.00% |
| EPS |
0.24 |
141.38% |
0.00% |
Key Financial Ratios
operatingProfitMargin
9.08%
operatingCashFlowPerShare
$-0.08
freeCashFlowPerShare
$-0.11
dividendPayoutRatio
12.2%
Management Commentary
Transcript not provided in the data. No management-call quotes or themes available from the input to extract thematic highlights or context. If transcripts become available, please supply to enrich this section with management strategy, guidance, and operational commentary by theme (e.g., contract wins, backlog, operational efficiency, mix shift toward smart-city services).
Forward Guidance
No explicit forward guidance is included in the QQ2 2025 data provided. Given the strong topline growth and improving but still modest margin profile, the medium-term trajectory will hinge on: (1) sustaining revenue growth through existing contracts and new program wins in property management and smart-city services; (2) expanding higher-margin extended value-added services and digital solutions; (3) improving cash conversion to revert FCF per share towards zero or positive territory; (4) maintaining low leverage to preserve financial flexibility in a potentially slower macro environment. Sensitivity to real estate cycles and government-related contracts remains a key risk. If management reiterates targets for gross margin uplift toward mid-teens and FCF positive by year-end, we would assign a higher probability to a constructive stance. Key factors to monitor: backlog and contract win cadence, receivables collection dynamics, labor cost inflation, and capex intensity relative to 4Q trajectories.