China SCE Group (1966) H1 2025 earnings summary

Executive summary

• Revenue for H1 2025 was RMB18.52 billion, down 25.4% year-over-year, mainly due to lower property sales income and reduced delivery area and average selling price.

• Gross profit fell 13.7% to RMB3.85 billion, but gross margin improved to 20.8% from 18.0% due to higher-margin project deliveries in top-tier cities.

• Loss attributable to owners narrowed by 5.5% to RMB3.48 billion.

• No interim dividend was declared for the period.

Financial highlights

• Contracted sales for H1 2025 were RMB3.74 billion, down 38.9% year-over-year; contracted sales area was 0.46 million sq.m., down 32.1%.

• Property sales income dropped 26.9% to RMB17.48 billion; average selling price decreased to RMB11,962/sq.m.

• Property management fees rose 4.3% to RMB629.5 million; rental income increased 6.8% to RMB283.6 million.

• Finance costs decreased 1.8% to RMB846.1 million.

• Income tax expense rose 32.6% to RMB923.3 million, mainly due to higher land appreciation and corporate income taxes.

Outlook and guidance

• The government is expected to intensify real estate policy support in H2 2025 to stabilize the market.

• The company will focus on price-driven operations, cost control, and accelerating inventory turnover.

• Continued innovation in commercial and long-term rental apartment segments, with emphasis on first- and strong second-tier cities.