Jiayuan Services Holdings Limited reported a sharp turnaround for the year ended 31 December 2025, booking profit and total comprehensive income of RMB131.53 million versus RMB13.29 million a year earlier. The improvement was driven largely by a RMB109.34 million reversal of losses on unauthorised guarantees, which more than offset an RMB88.83 million impairment on financial assets and a RMB21.55 million charge tied to unauthorised pledged shares.
Revenue slipped 4.4% year on year to RMB821.24 million, with the core property-management segment down 2.6% to RMB765.52 million. Value-added services to property developers fell 34.7% to RMB7.37 million, while community value-added services declined 21.5% to RMB48.36 million. Overall gross profit narrowed 4.0% to RMB231.23 million, but the gross margin edged up to 28.2% from 28.1% on improved cost control within property-management contracts.
Operating costs fell 4.5% to RMB590.01 million, reflecting lower variable costs and a 6.5% reduction in employee benefit expenses to RMB359.91 million as headcount dropped to 5,494 from 5,841. Administrative expenses contracted 12.6% to RMB70.64 million, helped by fewer one-off items linked to past restructuring and legal matters. Selling and marketing costs dipped 2.5% to RMB6.85 million.
Despite the profit recovery, Jiayuan Services’ balance-sheet leverage remains high. Total liabilities stood at RMB689.35 million, equating to a gearing ratio of 97.0%, although this is down from 115.8% a year earlier. Net current liabilities narrowed to RMB177.65 million from RMB305.20 million, aided by a cut in bank borrowings to RMB6.46 million (2024: RMB18.58 million). Cash and cash equivalents fell 44% to RMB33.93 million, while contract liabilities were broadly stable at RMB122.50 million.
The auditor, RSM Hong Kong, issued an unmodified opinion but highlighted a material uncertainty related to going concern, citing the sizeable net current liability position and accumulated losses of RMB426.80 million. Management is relying on financial support from its immediate parent, ongoing cost controls and potential financing options to underpin liquidity.
Operationally, Jiayuan Services managed 259 projects with 53.0 million sq m of contracted GFA at year-end, down 2.9% from 2024, while GFA under management rose 5.1% to 45.7 million sq m as newly won projects offset phased-out sites.
No dividend was proposed for 2025. Key risks remain the resolution of legacy issues, including unauthorised pledged shares (provision of RMB68.41 million maintained) and the need for sustained cash-flow improvement to meet short-term obligations.