Greentown Management Holdings Company (9979) H1 2025 earnings summary

Executive summary

• Maintained industry leadership in project management with over 20% market share for nine consecutive years, despite a challenging real estate environment and intensified competition.

• Newly contracted project GFA reached 19.89 million sqm, up 13.9% year-over-year, and project management fees for new contracts rose 19.1% to RMB5.0 billion.

• Delivered 45 projects totaling 4.65 million sqm, achieving a delivery satisfaction rate of 92% and ranking first in industry delivery scale.

• Achieved growth in business performance and operational cash flow, laying groundwork for long-term high-quality development.

• Received over 30 industry honors in 1H2025, including top rankings for comprehensive strength, new contracts, and sales scale.

Financial highlights

• Revenue for 1H2025 was RMB1,374.3 million, down 17.7% year-over-year, mainly due to intensified competition and a lagging effect from the real estate downturn.

• Gross profit was RMB550.3 million, down 36% year-over-year; gross margin declined to 40% from 51.5% in 2024.

• Net profit attributable to owners was RMB256.1 million, a 48.9% decrease year-over-year; overall net profit was RMB272.9 million, down 44.4%.

• Operating cash inflow reached RMB112 million, up 45% year-over-year; bank balances and cash increased 8% to RMB1,643.8 million.

• Interim dividend of RMB0.076 per share declared, totaling RMB152.76 million.

Outlook and guidance

• Focus on enhancing quality in existing projects, optimizing new projects, and refining capabilities, while adhering to a light-asset strategy and exploring synergistic business opportunities and overseas expansion.

• As of June 2025, order backlog totaled 126.5 million sqm, with 77% in four major urban clusters and 38.4% yet to be developed.

• Plans to accelerate project conversion, enhance operational achievement, and leverage group resources.