Shanghai Industrial Urban Development Group (563) H1 2025 earnings summary

Executive summary

• Revenue for the first half of 2025 fell 38.7% year-over-year to HK$1,827.8 million, mainly due to lower property sales and project deliveries.

• Net loss attributable to owners widened to HK$492.1 million (vs. HK$231.6 million in 2024), with some sources reporting a net loss of HK$562.4 million, driven by reduced sales, lower gross margins, and fair value losses.

• Gross profit margin declined to 14.8% from 20.8%, with gross profit at HK$269.9 million, down 56.5% year-over-year.

• No interim dividend was declared for the period.

• The Group maintained a land bank of 3.29 million sq.m. across 27 projects in 10 cities, focusing on core first- and second-tier cities.

Financial highlights

• Revenue: HK$1,827.8 million (down 38.7% year-over-year).

• Net loss attributable to owners: HK$492.1 million (vs. HK$231.6 million loss in 2024); some sources report HK$562.4 million.

• Basic loss per share: 10.29 HK cents (vs. 4.84 HK cents loss in 2024).

• Rental income: HK$364.8 million (down 4.3% year-over-year).

• Bank balances and cash: HK$3,588.3 million (down from HK$5,342.8 million at end-2024).

Outlook and guidance

• The property market is expected to stabilise and recover in the second half of 2025, supported by favorable government policies.

• The Group will focus on optimizing debt structure, increasing revenue, and enhancing operational efficiency.

• Continued emphasis on core cities, especially Shanghai, and high-quality project development.