China Aoyuan Group (3883) H1 2025 earnings summary

Executive summary

• Focused on property delivery, operational recovery, and cost control, with efforts to address domestic debt risks and gradual recovery in fundamentals.

• Achieved contracted sales of RMB4.02 billion and contracted GFA sold of 436,000 sq.m. during the period.

• Landbank in the Greater Bay Area totaled 5.39 million sq.m. GFA as of 30 June 2025.

• Revenue for the six months ended 30 June 2025 rose 4.9% year-over-year to RMB1,117.9 million, but net profit attributable to shareholders fell 50.2% to RMB71.6 million due to lower nickel prices and higher production costs.

• The Group completed the acquisition of a 51% stake in Huaou Mining in June 2025, consolidating its results.

Financial highlights

• Total revenue was RMB4,466 million, down 5.7% year-over-year; property development revenue accounted for 85.8% of total.

• Gross loss increased to RMB2,841 million (gross loss margin 63.6%), mainly due to impairment losses on properties for sale.

• Excluding impairment, gross profit was RMB292 million, down 54.5% year-over-year.

• Gross profit margin declined to 21.0% from 30.2% year-over-year.

• Net cash inflow from operating activities was RMB194.2 million, up from RMB158.4 million in the prior year.

Outlook and guidance

• Plans to leverage favorable industry policies and market recovery by focusing on sales, debt restructuring, and new profit models such as light-asset construction services.

• Aims to restore market confidence and pursue sustainable, steady development.

• Planned 2025 full-year production: 12,000 tonnes nickel cathode, 9,900 tonnes copper cathode.

• Management will adjust production plans as needed due to market and price uncertainties.

• Focus on process upgrades, cost control, and flexible marketing to improve profitability.