Sunac China (1918) H1 2025 earnings summary

Executive summary

• Revenue for H1 2025 was RMB19.99 billion, down 41.7% year-over-year, mainly due to a sharp decline in property sales and delivery area.

• Gross loss increased to RMB2.08 billion, with a negative gross margin of 10.4%.

• Net loss attributable to owners was RMB12.81 billion, a 14.4% improvement from H1 2024.

• Significant progress was made in onshore and offshore debt restructuring, with over 75% of offshore creditors supporting the plan, including bond repurchases, equity conversions, and new financing arrangements.

• The auditor issued a disclaimer of conclusion on the interim financial information due to material uncertainties about going concern.

Financial highlights

• Revenue fell to RMB19.99 billion from RMB34.28 billion year-over-year, mainly due to a 50.1% drop in property sales revenue and a 39.1% decrease in delivered area.

• Gross loss was RMB2.08 billion (gross margin -10.4%), compared to RMB1.81 billion (gross margin -5.3%) in H1 2024.

• Other income and gains rose to RMB5.61 billion, mainly from RMB4.02 billion in onshore debt restructuring gains.

• Cash balances (including restricted cash) were RMB18.63 billion at June 30, 2025, with non-restricted cash at RMB4.40 billion.

• Total borrowings stood at RMB254.82 billion, down from RMB259.67 billion at end-2024.

Outlook and guidance

• Management expects gradual stabilization in core cities and premium locations but anticipates a prolonged recovery for the overall real estate market.

• Focus remains on completing home deliveries, resolving debt risks, and enhancing net equity assets through project revitalization.

• The company will continue to seek new financing, asset disposals, and policy support to improve liquidity.