Greentown China (3900) H1 2025 earnings summary

Executive summary

• Revenue for the first half of 2025 was RMB53.37 billion, down 23.3% year-over-year, mainly due to uneven delivery schedules and a 22.7% decrease in recognized sales area.

• Net profit attributable to shareholders dropped 89.7% to RMB210 million, impacted by lower revenue and RMB1.93 billion in asset impairment provisions.

• Contracted sales reached RMB122.2 billion, ranking second in the industry, with a high cash collection rate of 96% and strong presence in first- and second-tier cities.

• The company maintained a solid financial position, with bank balances and cash at RMB66.8 billion, 2.9 times the balance of borrowings due within one year, and a record low short-term debt ratio of 16.3%.

• Operational efficiency improved through digital marketing, cost control, and streamlined organization, with a focus on destocking, quality delivery, and innovation.

Financial highlights

• Revenue: RMB53.37 billion (down 23.3% YoY); property sales revenue: RMB49.65 billion (down 22.1% YoY).

• Net profit attributable to shareholders: RMB210 million (down 89.7% YoY).

• Gross profit: RMB7.16 billion (down 21.4% YoY); gross profit margin: 13.4% (up 0.3pp YoY).

• EPS: RMB0.08 (down from RMB0.81 YoY).

• Net gearing ratio increased to 63.9% (up from 56.6% at 2024 year-end); total borrowings: RMB143.0 billion.

Outlook and guidance

• The sector remains in a consolidation phase; full market recovery will take time, with core cities more resilient and lower-tier cities facing destocking pressure.

• Focus remains on destocking, disciplined investment, risk management, and product quality, with eight key initiatives including operational upgrades and business concentration.

• Saleable value for self-investment projects in H2 2025 is RMB176.3 billion, with 83% in first- and second-tier cities.

• No interim dividend declared for H1 2025.