Zhong An Group (672) H1 2025 earnings summary

Executive summary

• Revenue for the six months ended 30 June 2025 was RMB6,558.7 million, down 29.3% year-over-year; gross profit was RMB688.7 million, down 62.4% year-over-year; net profit was RMB90.7 million, down 23.0% year-over-year.

• Earnings per share was RMB1.15 cents, slightly up from RMB1.11 cents in the prior year period.

• No interim dividend was declared for the period.

Financial highlights

• Gross profit margin declined to 10.5% from 19.7% year-over-year.

• Other income and gains rose 317.3% to RMB167.4 million, mainly due to a one-time gain from re-measurement of investments in an associate.

• Administrative expenses fell 26.5% to RMB186.3 million; selling and distribution expenses dropped 9.8% to RMB105.7 million.

• Finance costs increased 91.3% to RMB148.1 million due to lower capitalization of interest.

• Income tax expenses decreased 70.8% to RMB214.7 million, reflecting lower pre-tax profits and land appreciation tax.

Outlook and guidance

• The real estate market is expected to stabilize in the second half of 2025, supported by government policies and a focus on securing delivery, stabilizing operations, and controlling risks.

• The company will continue prudent land acquisition and financial management, aiming for sustainable growth and digital transformation.