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Sunac China Holdings (1918) investor relations material
Sunac China Holdings H1 2025 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
Executive summary
Revenue for H1 2025 was RMB19.99 billion, down 41.7% year-over-year, mainly due to a sharp decline in property sales and delivery area.
Gross loss increased to RMB2.08 billion, with a negative gross margin of 10.4%.
Net loss attributable to owners was RMB12.81 billion, a 14.4% improvement from H1 2024.
Significant progress was made in onshore and offshore debt restructuring, with over 75% of offshore creditors supporting the plan, including bond repurchases, equity conversions, and new financing arrangements.
The auditor issued a disclaimer of conclusion on the interim financial information due to material uncertainties about going concern.
Financial highlights
Revenue fell to RMB19.99 billion from RMB34.28 billion year-over-year, mainly due to a 50.1% drop in property sales revenue and a 39.1% decrease in delivered area.
Gross loss was RMB2.08 billion (gross margin -10.4%), compared to RMB1.81 billion (gross margin -5.3%) in H1 2024.
Other income and gains rose to RMB5.61 billion, mainly from RMB4.02 billion in onshore debt restructuring gains.
Cash balances (including restricted cash) were RMB18.63 billion at June 30, 2025, with non-restricted cash at RMB4.40 billion.
Total borrowings stood at RMB254.82 billion, down from RMB259.67 billion at end-2024.
Outlook and guidance
Management expects gradual stabilization in core cities and premium locations but anticipates a prolonged recovery for the overall real estate market.
Focus remains on completing home deliveries, resolving debt risks, and enhancing net equity assets through project revitalization.
The company will continue to seek new financing, asset disposals, and policy support to improve liquidity.
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