Onewo (2602) H2 2025 earnings summary

Executive summary

• Total revenue for 2025 was RMB37,271.9 million, up 2.7% year-over-year, with recurring business revenue rising 8.5% to RMB33,401.8 million, accounting for 89.7% of total revenue.

• Profit for the year dropped 38.0% to RMB771.6 million, mainly due to increased credit impairment losses and industry headwinds.

• Core net profit reached RMB2,128.2 million, up 0.8% year-over-year; excluding developer business, core net profit rose 11.1% to RMB1,707.8 million.

• The company maintained a strong cash position with RMB11,084.8 million in cash and equivalents at year-end.

Financial highlights

• Gross profit was RMB4,559.6 million, down 3.3% year-over-year; gross margin declined to 12.2% from 13.0%.

• Administrative expenses fell by 10.1% to RMB1,756.4 million, with the expense ratio dropping 0.7 percentage points.

• Credit impairment losses surged by RMB567.2 million, mainly due to additional provisions for related party receivables.

• Earnings per share were RMB0.60, down from RMB0.97 in 2024.

• Dividend yield for 2025 was approximately 9%, with a total annual dividend of RMB1,730.6 million proposed.

Outlook and guidance

• Strategic focus for 2025–2027 is on capability building, operational efficiency, and technology-driven asset services.

• Plans to deepen the Onewo Town model, expand building repair and renovation, and leverage AI and digital platforms for cost efficiency.

• Continued prudent cash flow management and focus on collection rates and fund recovery quality.