C&D International Investment Group (1908) H2 2025 earnings summary

Executive summary

• Revenue for the year ended 31 December 2025 was RMB136.79 billion, down 4.3% year-over-year, with property development accounting for 96.76% of total revenue.

• Gross profit increased slightly to RMB19.01 billion, while profit attributable to equity holders fell 24% to RMB3.65 billion.

• Cumulative contracted sales attributable to shareholders were RMB90.93 billion, down 12% year-over-year; contracted sales GFA dropped 27.6%.

• Final dividend proposed at HK$0.9 per share, with scrip option, subject to AGM approval.

Financial highlights

• Revenue decreased by RMB6.2 billion year-over-year; property development revenue fell by RMB6.26 billion.

• Gross profit margin improved to 13.9% from 13.3% due to higher-margin projects.

• Profit before income tax was RMB9.74 billion, down 10.5% year-over-year.

• Basic EPS was RMB1.58, diluted EPS RMB1.54, both down from prior year.

• Cash at banks and on hand stood at RMB50.63 billion; net debt increased to RMB33.47 billion.

• Net debt to equity ratio rose to 34.81% from 31.78% year-over-year.

• Gearing ratio slightly decreased to 87.5%.

Outlook and guidance

• The real estate market is expected to remain challenging, but opportunities exist for growth and transformation.

• Focus will be on optimizing existing projects, prudent land acquisition, cost management, and innovation in products and technology.

• Expansion of property management and construction management businesses to enhance resilience and operational quality.