Gemdale Properties and Investment (535) H1 2025 earnings summary

Executive summary

• Revenue for the six months ended 30 June 2025 rose 97% year-over-year to RMB6,467.8 million, mainly due to increased property sales recognition.

• Loss attributable to owners narrowed to RMB1,008.2 million from RMB2,179.1 million in the prior year period.

• Basic and diluted loss per share improved to RMB0.0607 from RMB0.1312 year-over-year.

• No interim dividend declared for the period.

Financial highlights

• Gross profit increased to RMB931.2 million from RMB557.4 million year-over-year.

• Direct operating expenses decreased to RMB608.5 million from RMB627.8 million.

• Other income and gains fell to RMB195.7 million from RMB354.3 million, mainly due to lower interest and consulting income.

• Finance costs declined to RMB493.8 million from RMB613.1 million, reflecting lower borrowings and interest rates.

• Impairment losses on receivables surged to RMB773.9 million, mainly from joint ventures and associates.

Outlook and guidance

• The PRC government’s policy support and easing measures are expected to gradually restore market confidence and drive a recovery in the real estate sector in the second half of 2025.

• The company will focus on financial stability, liquidity, flexible pricing, and accelerating sales collection.

• Continued emphasis on core first- and second-tier cities for development.