Kaisa Group (1638) H2 2025 earnings summary

Executive summary

• Revenue declined 17.8% year-over-year to RMB9,500.2 million, while gross profit surged 89.9% to RMB451.8 million, with gross margin improving to 4.8%.

• Net profit reached RMB52,325.5 million, reversing a prior year loss of RMB29,228.9 million, mainly due to a one-time gain from offshore debt restructuring.

• Contracted sales (including joint ventures and associates) fell 17.9% to RMB5,544.4 million, with delivered GFA down 36.6%.

• No final dividend was declared for the year.

Financial highlights

• Sales of properties dropped 23.7% to RMB6,143.7 million; property management revenue fell 4.9% to RMB1,539.7 million.

• Rental income decreased 3.7% to RMB480.3 million; hotel and catering, cultural centre, and healthcare operations all saw slight declines.

• Gross profit margin improved from 2.1% to 4.8% due to lower costs on delivered properties.

• Net other losses increased to RMB18,816.1 million, mainly from property impairments and fair value losses.

• Gain on debt restructuring was RMB85,373.9 million.

• Selling and marketing costs and administrative expenses were reduced by 36.7% and 23.8%, respectively.

• Net finance costs rose 37.2% to RMB2,672.1 million due to lower capitalized interest.

• Income tax expense increased 235.8% to RMB481.4 million.

Outlook and guidance

• Management expects continued policy support for real estate, with 2026 seen as pivotal for recovery and quality improvement.

• Focus remains on stabilizing operations, risk mitigation, and leveraging land reserves in the Greater Bay Area.