According to the Zhito Finance APP, recently, CRIC released the top 50 property service companies in China for new contract area in January 2025. In January, the top 50 companies had a new contract area of approximately 78.08 million square meters, with a new third-party expansion scale of 71.46 million square meters, indicating that leading companies are continuously expanding. In January, the area expanded by companies decreased, with a total of 658 projects expanding, unchanged from the number of projects expanded in January 2024. In terms of business types, the top three for third-party expansion this month were schools, public buildings, and offices, with school projects accounting for 21.6%, public building projects accounting for 21.2%, and residential projects in third place at 20.5%.

In terms of urban service projects, CHINA RES MIXC became the champion in contract amount for urban service projects in January, with a contract value of 83.95 million yuan for a single project. This project is a continuation of a contract and is the sanitation (property management urban) service procurement project for the Yuhai Street Office in Nanshan District, Shenzhen. Regarding mergers and acquisitions, the heat of mergers and acquisitions in the industry has declined, with only two merger events involving property companies in January.

In January 2025, the top 50 companies had a new contract area of approximately 78.08 million square meters; the top 10 companies had a new contract area of 44.3 million square meters, accounting for 56.7%. This month, CHINA RES MIXC had the highest new contract area at 15.43 million square meters, primarily due to the concentration of signing some previously reserved projects after the New Year. The competition heat for expansion scale among leading property companies slightly decreased this month, with a threshold of 2.47 million square meters for the top 10.

1. Third-party expansion analysis

1. New total entrusted project scale of 71.46 million square meters

In January, the 50 companies together had a new third-party expansion scale of 71.46 million square meters, a 12% decrease compared to 80.77 million square meters during the same period in 2024. Only one company reached a total entrusted project scale of 5 million square meters, accounting for 20.9% of the top company’s expansion scale; there were four companies with new expansion projects between 3 million square meters (inclusive) and 5 million square meters, accounting for 19.0% of the expansion scale; four companies had new expansion projects between 1 million square meters (inclusive) and 3 million square meters, accounting for 40.8% of the expansion scale; and the share of projects with an expansion scale of one million square meters or less was 19.3%.

In January, CHINA RES MIXC expanded 70 total entrusted projects, reaching a scale of 14.95 million square meters, leading other companies in first place. This is partly due to some previously reserved projects being concentrated in signing after the New Year, and on the other hand, a large number of public building projects were included in the new expansion, accounting for 55.8%. Second place went to Wanwuyun, with a total entrusted project scale of 4.06 million square meters, and Yasheng Group ranked third with an expansion scale of 3.34 million square meters.

2. The layout of diverse industries is rising, the popularity of industrial park formats is increasing.

According to monitoring data, the top three industries for third-party expansion this month are schools, public buildings, and offices, with school projects accounting for 21.6%, public projects at 21.2%, and Residence projects in third place at 20.5%. Office projects account for 18.1%, and industrial parks account for 12.8%. In addition, Hospital and commercial projects did not exceed 10% of the scale.

With the acceleration of urbanization, the demand for public infrastructure construction has increased, including municipal facilities, cultural venues, etc. Government investment in public infrastructure has continued to increase, promoting the growth of public building projects. The public's demand for public service facilities has risen, facilitating the development of related Property Service.

The Residence market is relatively stable, and Property Management is an important component of Real Estate Development. The demand for high-quality living environments has increased among residents, driving the expansion of residential Property Management. The demand for Property Management in the existing housing market is also continually growing, providing new business opportunities for real estate companies.

As an area of industrial concentration, industrial parks have attracted a large number of enterprises, driving the demand for Property Management. Government support policies for industrial parks have facilitated the development of related Property Management. The construction and development of Science and Technology innovation parks have further promoted the demand for Property Management.

3. The total amount of city service projects is nearly 0.6 billion, with CHINA RES MIXC being the top project by amount.

In January's top 10 city service project amounts, the total contract amount is 0.49 billion yuan, accounting for approximately 84.4% of the overall amount. Among them, the CHINA RES MIXC single project has a contract amount of 83.95 million yuan, becoming the champion of contract amount for city service projects in January. This project is a continuation of a contract for the sanitation (Property Management urban) service procurement project by the Yuehai Street Office in Nanshan District, Shenzhen.

2. Analysis of corporate mergers and acquisitions.

The pace of mergers and acquisitions in the Industry has slowed down, with two merger events involving Property Service companies in January.

Wanye Cloud: Acquired 100% equity of Zhongzhou Property for 0.227 billion.

On the evening of January 3, Wanye Cloud announced that it had acquired 100% equity of Zhongzhou Property for a price of 0.227 billion yuan. This marks Wanye Cloud's first acquisition of residential property since its listing. The announcement mentioned that on December 31, 2024, Wanye Cloud's wholly-owned subsidiary, Shenzhen Yuying Property Service Co., Ltd., signed an equity transfer agreement with independent third party Shenzhen Zhongzhou Investment Holding Co., Ltd. According to the agreement, Wanye Cloud will purchase 100% equity of Shenzhen Zhongzhou Property Management Co., Ltd. from Zhongzhou Investment for approximately 0.227 billion yuan. The equity transfer agreement will take effect after being approved by the seller's Board of Directors on January 2, 2025.

SHIMAO SERVICES: Plans to acquire 33% equity of Shenzhen Shilu Environment for 83.159 million yuan.

On the evening of January 3, SHIMAO SERVICES announced on the Hong Kong Stock Exchange that on January 3, 2025, SHIMAO Tiancheng and the buyer (both are indirectly wholly-owned subsidiaries of the company) entered into an equity transfer agreement and settlement agreement with the seller and original shareholders. According to this agreement, the seller agrees to sell and the buyer agrees to purchase 33% equity of the target company—Shenzhen Shilu Environment Co., Ltd. The target company is primarily engaged in integrated urban and rural sanitation services in China and is currently a non-wholly owned subsidiary of the group, holding 67% equity. Upon completion of the acquisition, the target company will become an indirect wholly-owned subsidiary of the company. The consideration for the acquisition is set at 83.159 million yuan. The seller and original shareholders owe the group debts based on performance commitments outlined in the original acquisition terms. The acquisition is now part of the performance compensation payment.

3. Analysis of New Acquired Associated Area.

In January 2024, CR Research estimates the project scale of internal transformations for relevant Property Service companies based on the newly added pre-sale area from associated development enterprises. Data shows that the top five companies expected to acquire newly associated areas are POLY PPT SER, Wanye Cloud, Jianfa Service, GREENTOWN SER, and CHINA RES MIXC. The top five companies maintain high area conversion capabilities, with high certainty in growth.

This month, statistics from 50 Property Service companies show that POLY PPT SER ranks first with 0.922 million square meters of acquired associated area, and the top three Property Service companies account for 23.2% of the associated area.

This month's newly added contracted related companies' total area in the TOP 50 is 9.58 million square meters. Compared to January 2024's 11.92 million square meters, it has decreased by 19%.