Provisioning for Impairment Causes Net Profit to Drop Nearly 40%, Wanwu Cloud Accelerates AI Adoption

How does AI Strategy of Wanwu Cloud Balance Short-Term Profit Pressure and Long-Term Growth?

Ji Mian News Reporter | Wang Yuhan

In 2025, the property management industry still struggles with scale bottlenecks and profit dilemmas. The competition in the existing market forces property management companies to accelerate strategic adjustments and seek new development paths.

On March 20th, Wanwu Cloud held its 2025 performance release conference in Shenzhen. Chairman, Executive Director, and General Manager Zhu Baoquan; Vice Chairman, Executive Director, and Chief Operating Officer He Shuhua; and Chief Financial Officer Wang Xubin, along with other management, attended.

Ji Mian News observed on-site that, unlike previous years where management wore formal suits, this year all management wore matching cultural shirts with the words “Ling Shi” printed on them.

This detail also directly reflects Wanwu Cloud’s strategic focus for the year. 2025 marks the start of Wanwu Cloud’s second “Three-Year Plan,” which the company explicitly defines as the “Capability Building Year.” The core strategy shifts entirely toward AI-driven service upgrades, with “Ling Shi” serving as the core carrier and technological foundation of this strategy.

According to Ji Mian News, “Ling Shi” is Wanwu Cloud’s AI brain for real estate management, built on edge computing hardware supporting CPU/GPU expansion and multi-form deployment, featuring plug-and-play capabilities.

At the performance conference, Zhu Baoquan also specifically discussed the currently hot topics in technology—Tokens and “Lobster.” He revealed, “Our internal R&D on intelligent agents is very active,” and that Wanwu Cloud’s total token consumption in 2025 will reach 72.5 billion, with an expected jump to over 250 billion in 2026.

Wanwu Cloud Chairman Zhu Baoquan at the performance conference, photo taken by Ji Mian News

From the financial data, the large-scale application of AI technology has already brought tangible operational efficiency improvements to Wanwu Cloud.

On the management side, Wanwu Cloud launched over 1,400 AI agents this year, formalized 9 AI employees, and reduced administrative expenses by about 200 million yuan year-over-year, a decrease of 10.1%. “Now our internal processes like reimbursements, leave requests, and approvals are all handled by AI, saving a lot of time,” an internal employee told Ji Mian News.

On the product side, Wanwu Cloud builds core capabilities such as energy intelligent management, precise debugging, energy-saving technical upgrades, and microgrid energy storage, based on the “Ling Shi” ecosystem. By integrating AI algorithms with IoT, it achieves real-time energy efficiency monitoring and Level 3 autonomous control. After deploying “Ling Shi” at the Shenzhen Chuangzhi Cloud Center, energy consumption per square meter decreased by 36.5%.

Zhu Baoquan also disclosed that Wanwu Cloud has established contacts with most robot manufacturers on the market. Property management scenarios are among the key landing areas that various companies are competing for. However, he also admitted that Wanwu Cloud will not directly develop robots but hopes to connect “Ling Shi” with robots—this integration has considerable potential.

The deepening of AI strategy is closely related to the increasingly severe operating environment of the property industry. As the downward risk in real estate propagates to property management, new challenges such as vacant properties are gradually emerging.

In this year’s shareholder letter, Zhu Baoquan also issued a warning: “Excessively vacant properties will be a major challenge that the industry must solve after ensuring delivery.”

Financial reports show that in 2025, Wanwu Cloud achieved revenue of 37.27 billion yuan, a 2.7% increase year-over-year; however, profit still faces impairment pressures. The company further provisioned 740 million yuan for related-party receivables, an increase of 480 million yuan from the previous year. Additionally, high costs from numerous vacant properties, combined with impairment provisions, resulted in an annual profit of 772 million yuan, down 37.99% year-over-year.

Wanwu Cloud profit performance over the past five years, compiled and charted by Ji Mian News

“This is the result of proactive management by the company. In the short term, it will indeed create pressure—related-party business contracts shrink, leading to reductions in revenue and gross profit; but in the long run, this is an essential step to optimize revenue structure, improve operational quality, and strengthen business independence,” Wang Xubin explained at the performance conference.

In 2025, Wanwu Cloud’s related-party transaction revenue with its parent company, Vanke, decreased by 1.197 billion yuan to 2.239 billion yuan, accounting for 6% of total revenue, down 3.5 percentage points year-over-year. Over two years, related-party revenue share has decreased by a total of 7.5 percentage points.

“We believe this approach is prudent, thorough, and responsible, and has been recognized by independent auditors,” Wang Xubin further emphasized.

While actively reducing related-party developer business, Wanwu Cloud’s core business segments demonstrate strong growth resilience. The company’s fundamental operations are increasingly market-oriented and less dependent on related parties.

In 2025, non-developer related business revenue reached 34.72 billion yuan, up 8.4%; gross profit was 3.89 billion yuan, an increase of 140 million yuan. Excluding developer-related factors, the company’s core net profit was 1.71 billion yuan, up 11.1%.

Circular businesses including residential property management, property and facilities management, and BPaaS solutions generated 33.40 billion yuan in revenue, an 8.5% increase, further raising their proportion to 89.7% of total revenue, becoming the “ballast” of Wanwu Cloud’s growth.

In residential property management, Wanwu Cloud secured 247 projects in the stock market in 2025, with annual contracted revenue of 1.42 billion yuan, up 21.1%. Among these, 51 projects were added through a “flexible pricing” model, accounting for about 20% of the existing market expansion projects.

By the end of 2025, Wanwu Cloud had built the foundation for 690 “Diecheng” communities, covering about half of its managed projects. Leveraging this service network, the company deeply explores the extended value of residential scenarios, with related service revenue reaching 1.91 billion yuan during the period.

Regarding development in 2026, management stated at the performance conference that Wanwu Cloud will focus on “stabilizing cash flow, improving efficiency, and optimizing structure” as the three most critical tasks. “Stabilizing cash flow” means strengthening collection and bad debt management; “optimizing structure” involves increasing the proportion of independent third-party business, reducing related-party transactions and accounts receivable; and “improving efficiency” centers on further integrating AI technology with business operations.