Ronshine China (3301) H1 2025 earnings summary

Executive summary

• Revenue for the six months ended 30 June 2025 fell 85.06% year-over-year to RMB2,121.94 million, mainly due to a sharp decline in property deliveries and sales volume.

• Net loss for the period was RMB1,704.13 million, reversing a profit of RMB79.98 million in the prior year, with a net loss margin of -80.31%.

• Contracted sales dropped 37.3% year-over-year to RMB2,108.01 million, with contracted GFA down 33.83%.

• The company focused on the Yangtze River Delta and West Coast of the Taiwan Strait, maintaining 206 projects and a land reserve of 16.58 million sq.m.

• The company faces significant liquidity pressure, with net current liabilities of RMB11,680.62 million and a gearing ratio rising to 7.56.

Financial highlights

• Gross profit decreased 80.61% to RMB564.56 million, but gross profit margin improved to 26.61% from 20.51% due to higher margins on delivered projects and inventory impairment write-offs.

• Total assets declined 3.43% to RMB96,171.37 million, while total equity fell 32.10% to RMB4,667.76 million.

• Cash and bank balances stood at RMB2,956.96 million, with total borrowings of RMB38,246.77 million and a weighted average interest rate of 6.55%.

• Loss attributable to owners: RMB1,829.16 million.

• Net margin: -80.31% (vs. 0.56%).

Outlook and guidance

• Management expects government policy support to gradually stabilize the real estate market in the second half of 2025, especially in first- and core second-tier cities.

• Plans to maintain a prudent approach to land acquisition and focus on operational efficiency and quality delivery.

• Liquidity and debt management remain top priorities, with ongoing negotiations for debt restructuring and new financing.