Ganglong China Property Group (6968) H1 2025 earnings summary

Executive summary

• Revenue for the six months ended 30 June 2025 was RMB1,631 million, down 70% year-over-year due to lower contracted sales and property recognition.

• Net loss widened to RMB666 million from RMB154 million year-over-year, with gross loss of RMB450 million and gross loss margin of 28%.

• The group delivered properties worth RMB1,631 million with a total area of 177,042 sq.m. and recorded contracted sales of RMB2,700 million (221,613 sq.m. GFA) at an ASP of RMB12,183/sq.m.

• Management focused on cost control, debt structure optimization, and cash collection to ensure financial stability.

• The real estate market in China remains under significant downward pressure, with a negative outlook for the second half of 2025.

Financial highlights

• Gross loss was RMB450 million, compared to a gross profit of RMB290 million in the same period last year; gross loss margin was 28% (2024: gross margin 5%).

• Net loss was RMB666 million, with loss attributable to owners at RMB330 million; basic and diluted loss per share was RMB0.20 (2024: RMB0.05).

• Cost of sales was RMB2,081 million, including a net impairment provision of RMB392 million for properties under development and completed properties held for sale.

• Selling and marketing expenses decreased 28% to RMB64 million; general and administrative expenses decreased 6% to RMB67 million.

• Net finance costs decreased 29% to RMB29 million due to lower average principal balances.

Outlook and guidance

• The group will focus on product quality, customer service, cost control, and cash collection to ensure financial stability.

• Contracted sales target for 2025 is RMB4,800 million, with RMB2,699.8 million achieved in the first half.

• Measures include enhanced sales incentives, cost reduction, and ongoing negotiations with creditors and contractors.

• The group will continue strict expense control, cash collection, and financing structure optimization.

• The real estate market is expected to remain under pressure in the second half of 2025, with a focus on financial stability, operational efficiency, and product quality.