Gemdale Properties and Investment (535) H2 2025 earnings summary

Executive summary

• Revenue declined 36% year-over-year to RMB8,504.5 million, mainly due to lower property sales and a weak Mainland China property market.

• Loss attributable to owners narrowed to RMB3,411.2 million from RMB4,570.8 million, driven by large impairment losses on property inventories.

• Gross profit fell 36% to RMB1,559.6 million, with gross margin impacted by market conditions and impairments.

• No final or interim dividend was declared for the year.

Financial highlights

• Other income and gains decreased 40% to RMB517.7 million, mainly from lower interest and consulting income.

• Finance costs reduced by 18% to RMB951.2 million due to partial repayment of borrowings and lower interest rates.

• Total assets dropped 18% to RMB62,687.2 million; net assets fell 16% to RMB17,708.8 million.

• Deposits, bank and cash balances (including restricted cash) decreased 43% to RMB2,247.5 million.

• Gearing ratio increased to 122% from 103% due to equity decline.

Outlook and guidance

• Management expects China's economy to grow 4.5–5% in 2026, with a mild recovery in the property market.

• The group aims to capitalize on resumed demand and deliver improved results in 2026.