Yanlord Land Group (Z25) H1 2025 earnings summary

Executive summary

• Revenue for 1H 2025 was RMB9.286 billion, down 53.5% year-over-year, mainly due to a sharp decline in property development income and lower gross floor area delivered.

• Gross profit rose 14.7% to RMB3.003 billion, with gross margin improving by 19.2 percentage points to 32.3% due to product mix shift and reduced write-downs.

• Net profit reached RMB545 million, reversing a loss of RMB421 million in 1H 2024; profit attributable to owners was RMB379 million.

• Profit before tax surged 89.6% to RMB1.99 billion, with margin up to 21.4% from 5.3%.

• Total contracted pre-sales dropped 16.4% year-over-year to RMB8.613 billion, with contracted GFA down 26.7%.

Financial highlights

• Income from property development fell 59.9% to RMB7.012 billion; property investment and hotel operations income rose 7.5% to RMB961 million.

• Property management income increased 6.4% to RMB629 million; other segments' income decreased 30.1% to RMB685 million.

• Gross profit margin improved to 32.3% from 13.1% year-over-year.

• Selling and administrative expenses declined by 29.2% and 16.1% respectively.

• Finance costs decreased by 29.6% to RMB381 million; interest paid dropped 37.0% to RMB535 million.

Outlook and guidance

• Accumulated property contracted pre-sales pending revenue recognition stood at RMB23.692 billion as of June 30, 2025, to be recognized in 2H 2025 and beyond.

• Additional batches of existing projects are scheduled for launch in the second half of 2025 across multiple cities in China.

• Management notes early signs of market stabilization in the PRC but remains cautious amid macroeconomic uncertainty.

• Group remains focused on premium residential developments and prudent financial management amid market volatility.