Redsun Properties Group (1996) H1 2025 earnings summary

Executive summary

• Revenue for the six months ended 30 June 2025 was RMB2,712.3 million, down 54.8% year-over-year, with a net loss of RMB2,320.6 million, widening from RMB1,710.3 million in the prior year period.

• Contracted sales fell 40.4% year-over-year to RMB2.87 billion, with a total sales area of 213,600 sq.m. and an average selling price of RMB13,438 per sq.m.

• Gross loss reached RMB222.1 million, with a gross loss margin of 8.2%, compared to a gross profit margin of 8.9% last year.

• No interim dividend was declared for the period.

Financial highlights

• Property sales revenue dropped 55.5% to RMB2,545.3 million, accounting for 93.8% of total revenue.

• Commercial operations revenue decreased 38.2% to RMB167.0 million; hotel operations had no revenue due to suspension.

• Cost of sales was RMB2,934.4 million, down 46.4% year-over-year.

• Administrative expenses fell 56.5% to RMB61.3 million; selling and distribution expenses dropped 51.6% to RMB76.3 million.

• Finance costs decreased 34.7% to RMB540.2 million.

• Share of losses from joint ventures and associates surged to RMB1,234.8 million from RMB329.4 million.

Outlook and guidance

• The real estate policy environment is expected to remain accommodative in the second half of 2025, with further policy implementation to stabilize the market.

• Focus will be on destocking, cash collection, asset optimization, and risk mitigation.

• The company aims to ensure project delivery, enhance operational efficiency, and deepen debt restructuring.