Sunac China (1918) H2 2025 earnings summary

Executive summary

• Contracted sales fell 21.8% year-over-year to RMB36.84 billion, with revenue down 39.0% to RMB45.12 billion.

• Gross loss of RMB0.64 billion versus prior year gross profit of RMB2.89 billion; net loss attributable to owners narrowed 52.0% to RMB12.33 billion.

• Major debt restructuring completed both onshore and offshore, reducing total borrowings by RMB71.41 billion to RMB188.26 billion.

• No final dividend recommended for 2025.

Financial highlights

• Revenue: RMB45.12 billion, down 39.0% year-over-year; sales of properties accounted for 73.3% of revenue.

• Gross loss: RMB0.64 billion (gross margin -1.4%), compared to gross profit of RMB2.89 billion (margin 3.9%) last year.

• Net loss attributable to owners: RMB12.33 billion, a significant narrowing from RMB25.70 billion last year.

• Total equity: RMB46.84 billion; equity attributable to owners: RMB34.17 billion.

• Total borrowings: RMB188.26 billion, down from RMB259.67 billion.

• Cash and cash equivalents (including restricted): RMB12.01 billion, down from RMB19.75 billion.

• Gearing ratio: 79.1%, improved from 81.3% last year.

Outlook and guidance

• Focus on project delivery, debt risk resolution, and asset revitalization.

• Adequate land bank (76.51 million sq.m. attributable) supports future recovery as market stabilizes.

• Continued efforts to secure funding through property sales, special loans, and collaborations.

• Management expects gradual stabilization of the real estate market with policy support.