Wanwu Cloud: Related-party transaction revenue drops to 6%, vacant properties increase industry management costs

On March 20, Wanyun Cloud held its 2025 Annual Performance Conference. Wanyun Cloud Chairman, Executive Director, and General Manager Zhu Baoquan; Vice Chairman, Executive Director, and Chief Operating Officer He Shuhua; Vice General Manager and General Manager of Asset Operation Center Ye Fei; and Financial Director Wang Xubin and other management attended the meeting.

According to data disclosed by Wanyun Cloud, in 2025, the company achieved operating revenue of approximately 37.27 billion yuan, a year-on-year increase of 2.7%. Among them, recurring business revenue for the full year was 33.4 billion yuan, up 8.5% year-on-year, accounting for 89.6% of total revenue, an increase in proportion.

Affected by related-party developer business, Wanyun Cloud’s core net profit for 2025 was about 2.13 billion yuan, a slight increase of 0.8% year-on-year. Excluding the impact of developer business, core net profit was approximately 1.708 billion yuan, up 11.1% year-on-year. The company’s attributable profit to shareholders was 695 million yuan, a decrease of 38.96% compared to the previous year.

Regarding the decline in net profit, management explained: adhering to a prudent principle, during the reporting period, the company further provisioned for impairment of related-party receivables by 740 million yuan, an increase of 480 million yuan year-on-year. This impairment, combined with high costs from a large number of vacant properties, led to a year-on-year decrease in net profit. “Provisioning for credit impairment losses and actively reducing risk exposure, although causing short-term profit pain, in the long run, solidifies the foundation for high-quality development.”

Wanyun Cloud’s related-party transaction income proportion is further decreasing. Data shows that in 2025, the company’s continuous related-party transaction income was 2.24 billion yuan, down 1.2 billion yuan year-on-year, reducing the proportion of total revenue from 9.5% to 6.0%. Related-party trade receivables decreased by 382 million yuan to 2.064 billion yuan year-on-year.

Wang Xubin stated at the performance conference that this is the result of proactive management. In the short term, it will indeed bring some pressure because related-party business shrinks, leading to decreases in revenue and gross profit. However, in the long term, this is an essential step for optimizing revenue structure, improving operational quality, and enhancing business independence.

Regarding existing related-party receivables, Wanyun Cloud said the company always prioritizes risk control and cash recovery. The company used multiple methods such as cash collection, debt offset, and asset offset, achieving a total of 2.85 billion yuan in multi-channel recoveries throughout the year. By the end of the year, related-party accounts receivable decreased by 380 million yuan to 2.064 billion yuan, a 15.6% reduction; an additional 480 million yuan was recovered after the period. Overall, the scale of related-party receivables is decreasing, and risk exposure is further shrinking.

Data shows that in 2025, Wanyun Cloud added 362 residential property service projects, with 247 projects acquired in the existing market. The annualized saturated revenue from new contracts increased by 21.1% year-on-year. Among these, 51 projects were obtained through a “flexible pricing” model, accounting for about 20% of the existing market expansion projects.

However, regarding the residential property service sector, Wanyun Cloud stated that it faces industry-wide challenges, as a large number of vacant properties impose high additional management costs on property companies. Zhu Baoquan mentioned in his shareholder address that vacant properties are a pressing issue to be solved after ensuring delivery. He admitted that current homes are not easy to sell; a delivered community may have over 30% unsold units. While about 70% of these projects have been sold, they are passively subjected to vacant property fees paid by developers, which often result in bad debts. To reduce receivables, the company participates in all property-to-debt swaps offered by developers, but these assets often face impairment risks.

Wanyun Cloud stated that asset-to-receivable offsetting indeed makes the financial statements “heavier,” but it has two sides. In the short term, it is a risk-avoidance measure, turning potential bad debt risks into tangible assets, effectively locking in potential losses and protecting shareholders’ interests. In the medium to long term, it is about “activating assets first, then converting to cash.”

Wang Xubin said at the performance conference that the company’s true core strength is increasingly coming from market-oriented, non-related-party businesses. In 2025, non-developer business revenue reached 34.72 billion yuan, up 8.4% year-on-year; gross profit was 3.89 billion yuan, an increase of 140 million yuan. Excluding the influence of developer-related factors, the company’s core net profit grew by 11.1% year-on-year. This reflects that the main growth drivers now come from more market-oriented, sustainable business sectors, which form the genuine operational foundation of the company and are the result of its steadfast core strategy. Currently, Wanyun Cloud is further deepening its leadership in commercial office, school, and hospital property sectors.

Regarding financial status, in 2025, the net cash flow from operating activities was 1.69 billion yuan; the cash and cash equivalents balance was 12.09 billion yuan. The company’s dividend yield for 2025 was 9.0%, with a dividend of 1.497 yuan per share.

Reporter Ji Simin from The Paper