Shui On Land (272) H1 2025 earnings summary

Executive summary

• Recorded a profit of RMB81 million in 1H 2025, with profit attributable to shareholders of RMB51 million, despite challenging macroeconomic conditions and subdued property market activity; profit was down 56% year-over-year.

• Revenue remained stable at RMB2,074 million, with gross profit at RMB1,369 million and gross profit margin at 66%.

• Contracted property sales surged 457% year-over-year to RMB3,473 million, mainly from new residential launches in Shanghai.

• Total rental and related income (including JVs and associates) grew 1% to RMB1,781 million, with retail portfolio showing double-digit growth in sales and shopper traffic (+10.5% year-over-year).

• No interim dividend declared for 1H 2025.

Financial highlights

• Revenue: RMB2,074 million (flat year-over-year); gross profit: RMB1,369 million (+1% YoY); gross profit margin: 66%.

• Profit for the period: RMB81 million (-56% YoY); profit attributable to shareholders: RMB51 million (-29% YoY).

• Earnings per share: RMB0.64 cents (vs. RMB0.90 cents in 1H 2024).

• Net debt: RMB20,261 million (down 9% from year-end 2024); net gearing ratio: 51%.

• Cash and bank deposits: RMB5,500 million; total assets: RMB83,392 million.

Outlook and guidance

• Asset-Light strategy to continue, with focus on expanding partnerships and management services.

• Liquidity management and financial stability remain top priorities.

• Market outlook remains cautious due to ongoing trade tensions, geopolitical risks, and weak consumer sentiment.

• Government policies in China focus on urban renewal and high-quality housing, with top-tier cities like Shanghai seeing stronger demand.

• New revenue streams expected from residential launches and commercial openings in 2H 2025.