Shimao Group (813) H1 2025 earnings summary

Executive summary

• Revenue for the six months ended 30 June 2025 was RMB14.83 billion, down 49.2% year-over-year, reflecting a challenging real estate market and reduced property sales.

• Loss attributable to equity holders narrowed to RMB8.93 billion, a 60.6% improvement from 1H 2024, mainly due to lower other losses and improved cost control.

• Contracted sales reached RMB13.52 billion with a gross floor area of 1.11 million sq.m. for 1H 2025.

• No interim dividend was declared for 1H 2025.

• Gross profit margin turned negative at -6.1% (1H 2024: 0.1%) due to lower recognized selling prices in key regions.

Financial highlights

• Revenue: RMB14.83 billion (1H 2024: RMB29.20 billion), a 49.2% decrease year-over-year.

• Gross loss: RMB908 million (1H 2024: gross profit RMB15 million).

• Loss attributable to equity holders: RMB8.93 billion (1H 2024: RMB22.67 billion).

• Basic and diluted loss per share: RMB2.36 (1H 2024: RMB5.98).

• Net cash generated from operations: RMB2.10 billion.

Outlook and guidance

• Policy support for the real estate sector is expected to continue, with further easing possible in the second half of 2025.

• The Group will focus on prudent operations, asset optimization, quality delivery, asset-light models, and diversified business growth.

• The Group aims to accelerate sales and delivery of existing inventory and seek alternative financing, with ongoing negotiations for debt restructuring.