Redsun Properties Group (1996) H2 2025 earnings summary

Executive summary

• Revenue fell 61.8% year-over-year to RMB4,315.9 million, mainly from property sales and commercial operations, with hotel operations suspended during the year.

• Net loss narrowed to RMB4,847.3 million from RMB5,525.6 million in 2024, with a gross loss of RMB746.5 million and a gross loss margin of 17.3%.

• Contracted sales reached RMB4.33 billion, with a total sales area of 319,397 sq.m. and an average selling price of RMB13,559 per sq.m.

• The auditor issued a disclaimer of opinion due to material uncertainties about going concern, citing significant defaults and liquidity issues.

Financial highlights

• Property sales revenue dropped 62.7% to RMB4,059.1 million, accounting for 94% of total revenue.

• Commercial operations revenue decreased 35% to RMB256.8 million; hotel operations revenue was nil.

• Cost of sales decreased 55.9% to RMB5,062.4 million, mainly due to fewer project deliveries and lower impairments.

• Finance costs fell 18.1% to RMB1,323.6 million, reflecting lower interest expenses and exchange losses.

• Basic and diluted loss per share were RMB123.45 cents, improved from RMB150.41 cents in 2024.

Outlook and guidance

• The group expects the Chinese real estate market to stabilize and transition to high-quality development in 2026, focusing on project delivery, risk management, and customer service.

• Plans include strengthening project management, optimizing asset and liability structures, and enhancing customer satisfaction.