Executive Summary
Fineland Living Services Group Limited reported QQ1 2025 revenue of approximately CNY 84.22 million, underscoring a year-over-year and quarter-over-quarter decline in top-line performance. The quarter produced a gross profit of CNY 16.72 million and a gross margin of 19.85%, but the company still posted an operating loss of CNY 4.41 million and a net loss of CNY 3.00 million, translating to an EPS of -0.0075. The negative profitability, despite a modest gross margin, reflects a cost structure dominated by SG&A and operating expenses within a low-revenue environment, alongside ongoing investment in service mix and digital capabilities. Sequentially, Q1 2025 revenue declined from Q4 2024’s CNY 91.51 million, suggesting continued sensitivity to China’s real estate cycle and macro headwinds in property transactions and developer activity. Management commentary, where available, emphasized cost-control initiatives and prioritization of high-margin service lines, but no explicit quantitative forward guidance was provided in QQ1 2025 communications. Investors should monitor (1) the pace of revenue stabilization or rebound in property management and agency activities, (2) the effectiveness of cost containment and mix shifts, and (3) liquidity and working-capital dynamics in a slowing market.
Key Performance Indicators
QoQ: 57.14% | YoY:-12.00%
Key Insights
Revenue performance: QQ1 2025 revenue of CNY 84.22 million, down YoY by 9.49% and QoQ by 7.97%. Gross Profit: CNY 16.72 million, YoY -12.00% and QoQ +57.14%. Operating Income: -CNY 4.41 million, YoY +29.14% (absolute loss remains) and QoQ +86.26% (loss narrowing but still negative). Net Income: -CNY 3.00 million, YoY +59.12% and QoQ +90.36% (still negative). EPS: -0.0075, YoY +59.02% and QoQ +90.36% (loss per share)....
Financial Highlights
Revenue performance: QQ1 2025 revenue of CNY 84.22 million, down YoY by 9.49% and QoQ by 7.97%. Gross Profit: CNY 16.72 million, YoY -12.00% and QoQ +57.14%. Operating Income: -CNY 4.41 million, YoY +29.14% (absolute loss remains) and QoQ +86.26% (loss narrowing but still negative). Net Income: -CNY 3.00 million, YoY +59.12% and QoQ +90.36% (still negative). EPS: -0.0075, YoY +59.02% and QoQ +90.36% (loss per share).
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
84.22M |
-9.49% |
-7.97% |
| Gross Profit |
16.72M |
-12.00% |
57.14% |
| Operating Income |
-4.41M |
29.14% |
86.26% |
| Net Income |
-3.00M |
59.12% |
90.36% |
| EPS |
-0.01 |
59.02% |
90.36% |
Management Commentary
Note: The earnings transcript for QQ1 2025 was not provided in the data set. The following themes are typical for real estate services names in this segment and are aligned with the reported results: 1) Strategy and operations: Focus on cost discipline, optimization of SG&A, and scaling of high-margin integrated services. 2) Market conditions: A softer macro backdrop for real estate transactions in China, with continued emphasis on property management visibility and online-offline agency services. 3) Execution and growth: Progress in digital platforms, cross-selling property management with agency services, and leveraging presale and display-unit services to deepen relationships with developers and property owners.
Forward Guidance
No explicit quantitative forward targets were disclosed in the QQ1 2025 materials provided. Given the ongoing macro headwinds in China’s property market, a cautious outlook is warranted. We assess the potential drivers of a recovery to hinge on: (a) stabilization or improvement in property transactions and developer activity, (b) continued cost-control measures and efficiency gains in SG&A, and (c) monetization of digital/IT-enabled services and higher-margin value-added offerings. Investors should monitor quarterly progression of revenue mix (agency vs. property management vs. value-added services), cadence of new contracts with developers, and the company’s ability to convert cost savings into margin expansion.