Greentown China (3900) H2 2025 earnings summary

Executive summary

• Revenue for 2025 was RMB154,966 million, down 2.3% year-over-year, with profit attributable to owners at RMB71 million, a 95.6% decrease, mainly due to lower gross margin and higher impairment losses.

• Total contracted sales reached RMB251.9 billion, ranking 2nd in the industry, with self-investment project sales at RMB153.4 billion.

• 50 new projects were added, with 86% in first- and second-tier cities, strengthening the land reserve structure.

• No final dividend was recommended for 2025.

Financial highlights

• Gross profit was RMB18,471 million, down 8.7% year-over-year; gross profit margin declined to 11.9% from 12.8%.

• Net profit attributable to owners was RMB71 million, a sharp drop from RMB1,596 million in 2024.

• Weighted average interest cost of borrowings decreased to 3.3%, down 60 bps year-over-year.

• Bank balances and cash stood at RMB63.2 billion; cash to short-term debt ratio reached 2.6x, an annual record high.

• Net gearing ratio increased to 66.4% from 56.6% due to lower cash balances.

Outlook and guidance

• The market is expected to remain in a transition phase in 2026, with gradual stabilization and increased differentiation.

• Focus will be on cash flow safety, risk control, digital marketing, and product innovation.

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