Greentown China (3900) H2 2025 earnings summary

Executive summary

• Maintained a top sales position with RMB251.9 bn in total sales, ranking 2nd in the industry, despite a challenging market.

• Focused on core tier-1 and tier-2 cities, with 86% of new saleable value and 50 new projects added in these markets.

• Emphasized stable operations, risk prevention, and high-quality investment, with a record-high cash to short-term debt ratio of 2.6x.

• Continued product innovation and digital transformation to enhance efficiency and customer satisfaction.

• No final dividend was recommended for 2025.

Financial highlights

• Revenue for FY2025 was RMB154.97 bn, down 2.3% year-over-year; net profit attributable to owners dropped 95.6% to RMB71 mn.

• Gross profit decreased 8.7% to RMB18.47 bn; gross profit margin declined to 11.9% from 12.8%.

• Basic and diluted EPS fell to RMB0.03 from RMB0.63 in 2024.

• Cash balance at year-end was RMB63.24 bn, down 13.4% year-over-year; cash to short-term debt ratio reached 2.6x.

• Net gearing ratio increased to 66.4% from 56.6% a year earlier.

Outlook and guidance

• Strategic focus on maintaining cash flow safety, improving quality and efficiency, and accelerating destocking.

• Plans to enhance risk control, drive product innovation, and expand digital and intelligent applications.

• Saleable value of self-investment projects for 2026 is estimated at RMB163.1 bn, with 85% in first- and second-tier cities.