Shimao Group (813) H2 2025 earnings summary

Executive summary

• Revenue for 2025 was RMB28.418 billion, down 52.6% year-over-year, mainly due to lower property sales and slower construction pace amid liquidity pressures.

• The group returned to profitability with a net profit of RMB4.477 billion, compared to a net loss of RMB43.686 billion in 2024, primarily due to a RMB69.5 billion gain from offshore debt restructuring.

• Total borrowings decreased significantly to RMB182.266 billion from RMB252.051 billion at year-end 2024, following the completion of the offshore debt restructuring.

• No final dividend was recommended for 2025.

Financial highlights

• Gross loss widened to RMB28.776 billion from RMB5.869 billion, mainly due to increased impairment losses on properties.

• Other income and gains surged to RMB63.35 billion, driven by the debt restructuring gain.

• Earnings per share (basic) was RMB2.61, compared to a loss per share of RMB9.48 in 2024.

• Cash and bank balances stood at RMB12.07 billion, down from RMB15.75 billion.

• Borrowings-to-assets ratio improved to 51.0% from 57.8% year-over-year.

Outlook and guidance

• The group aims to focus on high-quality, sustainable development, balancing asset-heavy and asset-light businesses, and exploring new growth drivers.

• Cautious optimism is maintained for the Hong Kong property market, with plans to seize market opportunities and drive steady sales growth.