Shui On Land (272) investor relations material

Executive summary

• Recorded a profit of RMB81 million in 1H 2025, with profit attributable to shareholders of RMB51 million, despite challenging macroeconomic conditions and subdued property market activity; net profit declined 56% year-over-year.

• Revenue remained stable at RMB2,074 million, with gross profit at RMB1,369 million and gross profit margin at 66%.

• Contracted property sales surged 457% year-over-year to RMB3,473 million, mainly from new residential launches in Shanghai.

• Total rental and related income (including JVs and associates) grew 1% to RMB1,781 million, with retail portfolio showing 10.5% year-over-year growth in sales and shopper traffic.

• No interim dividend declared for 1H 2025.

Financial highlights

• Revenue: RMB2,074 million (flat year-over-year); gross profit: RMB1,369 million; gross profit margin: 66%.

• Profit for the period: RMB81 million (-56% year-over-year); profit attributable to shareholders: RMB51 million (-29% year-over-year).

• Earnings per share: RMB0.64 cents (1H 2024: RMB0.90 cents).

• Net debt: RMB20,261 million (down 9% from year-end 2024); net gearing ratio: 51%.

• Cash and bank deposits: RMB5,500 million; total assets: RMB83,392 million.

Outlook and guidance

• Liquidity management and financial stability remain top priorities amid a closed offshore financing market and ongoing macroeconomic uncertainty.

• Asset-Light strategy to continue, with focus on expanding partnerships, management services, and selective investments in top-tier cities.

• Plans to launch new sales in Shanghai and Wuhan, with new commercial properties expected to contribute more recurring rental income.

• Market outlook remains cautious due to trade tensions, geopolitical risks, and weak consumer sentiment.

• Government policies in China focus on urban renewal and high-quality housing, with top-tier cities like Shanghai seeing stronger demand.