Executive Summary
Midea Real Estate Holding Limited reported QQ1 2025 results characterized by an exceptionally steep revenue decline against a recovering but volatile macro backdrop for China's real estate sector. Revenue totaled 998.3 million CNY, down 94.6% year over year and 92.1% quarter over quarter, underscoring the breadth of the sector-wide demand headwinds and a difficult base period in the prior year. Despite the sales pullback, gross profit reached 307.4 million CNY with a gross margin of 30.79%, and EBITDA stood at 223.1 million CNY, yielding an EBIT margin of 19.82% and a net income of 152.7 million CNY (net margin 15.30%). The company also reported positive earnings per share of 0.11 CNY for QQ1 2025, with diluted EPS at the same level, reflecting disciplined cost management and favorable product mix within the quarter.
Key Performance Indicators
QoQ: -92.06% | YoY:-94.64%
QoQ: -73.51% | YoY:-83.35%
QoQ: 12.66% | YoY:-81.69%
QoQ: -18.73% | YoY:132.31%
QoQ: -15.38% | YoY:140.17%
Key Insights
Revenue: 998,294,500 CNY; YoY: -94.64%; QoQ: -92.06% // Gross Profit: 307,363,500 CNY; Gross Margin: 30.79%; YoY: -83.36%; QoQ: -73.51% // EBITDA: 223,132,000 CNY; EBITDA Margin: 22.35% // Operating Income: 197,905,000 CNY; Operating Margin: 19.82%; YoY: -81.69%; QoQ: +12.66% // Total Other Income/Expenses: 5,990,000 CNY // Income Before Tax: 203,895,000 CNY; Tax: 47,349,500 CNY // Net Income: 152,730,500 CNY; Net Margin: 15.30%; YoY: +132.31%; QoQ: -18.73% // EPS: 0.11 CNY; Diluted EPS: 0.11 CN...
Financial Highlights
Revenue: 998,294,500 CNY; YoY: -94.64%; QoQ: -92.06% // Gross Profit: 307,363,500 CNY; Gross Margin: 30.79%; YoY: -83.36%; QoQ: -73.51% // EBITDA: 223,132,000 CNY; EBITDA Margin: 22.35% // Operating Income: 197,905,000 CNY; Operating Margin: 19.82%; YoY: -81.69%; QoQ: +12.66% // Total Other Income/Expenses: 5,990,000 CNY // Income Before Tax: 203,895,000 CNY; Tax: 47,349,500 CNY // Net Income: 152,730,500 CNY; Net Margin: 15.30%; YoY: +132.31%; QoQ: -18.73% // EPS: 0.11 CNY; Diluted EPS: 0.11 CNY; YoY: +140.17%; QoQ: -15.38% // Weighted Avg Shares: 1,454,576,190 // EBITDARatio: 22.35% // Operating Income Ratio: 19.82% // Net Income Ratio: 15.30%
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
998.29M |
-94.64% |
-92.06% |
| Gross Profit |
307.36M |
-83.35% |
-73.51% |
| Operating Income |
197.91M |
-81.69% |
12.66% |
| Net Income |
152.73M |
132.31% |
-18.73% |
| EPS |
0.11 |
140.17% |
-15.38% |
Management Commentary
Note: The earnings call transcript for QQ1 2025 was not provided in the data set. As a result, the following highlights are derived from the reported results and typical themes discussed by management in real estate services/development quarters. - Margin resilience in a weak top line: gross margin (~30.8%) and operating margin (~19.8%) indicate controlled cost structures and favorable product/mix despite revenue contractions. - Recurring revenue expansion: emphasis on Property Management Services and Investment/Operation of Commercial Properties as stabilizing, potentially recurring cash flows beyond volatile property development sales. - Cash flow and cost discipline: EBITDA of 223.1 million CNY coupled with a positive net income suggests ongoing cost discipline and efficient overhead management amid a lean revenue base. - Segment mix optimization: with four segments (Property Development and Sales, Property Management Services, Investment/Operation of Commercial Properties, and Real Estate Technologies), investors should monitor contribution from management services and commercial properties as a halo to the cyclical property development cycle.
No earnings call transcript available for QQ1 2025; no direct management quotes are included in the provided data.
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No earnings call transcript available for QQ1 2025; no direct management quotes are included in the provided data.
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Forward Guidance
There is no formal guidance disclosed for QQ2 2025 within the provided material. Given QQ1 2025 results, the management-focused outlook should center on sustaining EBITDA and converting profitability into robust operating cash flow amid a challenging property cycle. Key factors to watch include: (1) trajectory of property sales and new project launches, (2) growth and monetization of Property Management Services and Commercial Properties (including urban complexes and long-term rentals), (3) deployment and uptake of Real Estate Technologies (smart homes, community platforms) to enhance recurring revenue and operating efficiency, (4) liquidity management and debt maturity risk, and (5) any incremental policy support or housing demand stabilization in PRC. In sum, the investment thesis hinges on stabilization in core development earnings paired with rising contributions from non-development segments and disciplined capital allocation.