Zhong An Group (672) investor relations material

Executive summary

• Revenue for FY2025 was RMB8,774.5 million, down 37.0% year-over-year, with gross profit dropping 72.1% to RMB638.2 million and a net loss of RMB936.0 million compared to a profit of RMB218.0 million in FY2024.

• Loss attributable to owners was RMB891.6 million, with basic loss per share at RMB15.8 cents (FY2024: earnings per share RMB0.4 cents).

• The Group received several industry awards, including Top 100 China Real Estate Developers and Top 10 China Real Estate Listed Companies with Financial Stability.

Financial highlights

• Cost of sales decreased 30.1% to RMB8,136.3 million; gross profit margin fell to 7.3% from 16.4%.

• Other income and gains rose 160.8% to RMB183.2 million, mainly due to a one-time gain from remeasurement of investments in an associate.

• Selling and distribution expenses increased 10.1% to RMB247.5 million; administrative expenses fell 19.7% to RMB373.3 million.

• Impairment losses on financial assets surged 158.1% to RMB179.4 million.

• Finance costs rose 116.1% to RMB320.7 million due to reduced interest capitalization.

• Income tax expense dropped 77.4% to RMB233.4 million, mainly from lower LAT provision.

Outlook and guidance

• Management remains confident in the national economy and industry, focusing on the Yangtze River Delta and maintaining financial prudence.

• Plans include deepening regional development, enhancing product strength, and integrating emerging and traditional business segments.

• No final dividend recommended for FY2025.