China SCE Group (1966) H2 2025 earnings summary

Executive summary

• Revenue declined 9.0% year-over-year to RMB37.11 billion, mainly due to lower property sales.

• Gross profit increased 5.0% to RMB6.55 billion, with margin rising to 17.6% from 15.3%.

• Loss attributable to owners narrowed 5.3% to RMB7.45 billion, driven by lower property prices and fair value losses.

• Contracted sales dropped 41.7% to RMB6.54 billion, with contracted sales area down 35.0%.

• The group faces significant liquidity pressure and material uncertainty regarding going concern due to defaults on offshore debt.

Financial highlights

• Revenue: RMB37.11 billion (down from RMB40.77 billion year-over-year).

• Gross profit: RMB6.55 billion (up from RMB6.24 billion); gross margin: 17.6%.

• Loss attributable to owners: RMB7.45 billion (improved from RMB7.86 billion).

• Cash and bank balances: RMB3.26 billion; restricted cash: RMB923 million.

• Total borrowings: RMB33.09 billion; net gearing ratio: 1,448.1%.

Outlook and guidance

• Strategic focus in 2026 will shift to refining operations, improving product quality, and promoting sales of completed properties.

• The group expects gradual market recovery as government policies support stabilization.

• Plans include cost reduction, cash flow improvement, and asset value enhancement.