China Resources Land (1109) H1 2025 earnings summary

Executive summary

• Revenue for 1H2025 rose 19.9% YoY to RMB94.92bn, with gross profit margin at 24.0%, among the highest in the industry.

• Attributable net profit reached RMB11.88bn, up 16.2% YoY; core net profit was RMB10.00bn, down 6.6% YoY.

• Recurring income business contributed over 60% of core net profit, with recurring revenue up 2.5% YoY to RMB20.56bn.

• Contracted sales totaled RMB110.3bn, maintaining a top 3 industry ranking.

• Interim dividend declared at RMB0.20 per share, flat YoY.

Financial highlights

• Debt-to-asset ratio at 55.3%, net gearing ratio at 39.2%, and weighted average funding cost at 2.79%, the lowest in the industry.

• Cash and cash equivalents stood at RMB120.24bn, down from FY24; net cash used in operating activities was RMB2.25bn.

• Gross profit was RMB22.78bn, with selling expenses at RMB2.74bn (2.9% of revenue) and administrative expenses at RMB2.04bn (2.1% of revenue).

• AUM reached RMB483.5bn, up 4.6% from FY24.

• Total assets stood at RMB1,148.67bn; equity attributable to owners was RMB276.23bn.

Outlook and guidance

• Strategic focus on cash flow security, high-tier city penetration, and quality asset growth, with plans to increase operating shopping malls to 114 by 2028.

• Saleable resources for 2H25 set at RMB389.4bn, with 88% in tier 1 and 2 cities.

• Medium to long-term target for recurring profit contribution set at ≥50%.

• The company expects continued resilience in China's macroeconomy and policy support for real estate, urban renewal, and affordable housing.