Shui On Land (272) H2 2025 earnings summary

Executive summary

• Core earnings reached RMB397 million in 2025, demonstrating resilience amid a subdued property market, geopolitical uncertainties, and economic headwinds.

• Sustained rental growth for the third consecutive year, with total rental and related income up 2% to RMB3,625 million.

• Strong sales performance at Lakeville VI and Wuhan Xintiandi, with contracted property sales of RMB7,916 million and RMB17,231 million in locked-in sales for future recognition.

• Continued progress on Asset-Light strategy, expanding partnerships and launching new urban regeneration projects in Shanghai and Wuhan.

• Maintained proactive capital management, fully meeting all financial obligations and reducing offshore debt.

Financial highlights

• Revenue for 2025 was RMB4,093 million, down 50% year-on-year, mainly due to fewer residential project completions.

• Gross profit dropped 60% to RMB2,115 million, with gross margin at 52% (down from 64%).

• Core earnings decreased 12% to RMB397 million, excluding non-cash fair value changes and impairments.

• Net loss attributable to shareholders was RMB1,782 million, compared to a profit of RMB180 million in 2024.

• Rental income increased 2% year-on-year to RMB3,625 million, while property sales revenue was RMB499 million.

Outlook and guidance

• Liquidity management and financial safety remain top priorities, with a focus on maintaining a healthy balance sheet and stable gearing.

• Expectation of continued rental income growth and stable income from residential inventory in Shanghai and Wuhan.

• Policy shifts in 2026 signal stabilization in the property market, with government support for urban regeneration and quality homes.

• Strategic focus on top-tier cities, especially Shanghai, and disciplined investment approach, with Asset-Light strategy central.

• Market outlook remains cautious due to persistent property sector correction and subdued demand.