绿城中国(03900) - 2025 - 中期业绩

Summary Greentown China reported H1 2025 unaudited interim results, showing RMB 53.368 billion revenue and RMB 210 million shareholder profit, demonstrating optimized financial structure and strong sales performance Key Financial and Operating Indicators for H1 2025 | Indicator | H1 2025 (RMB) | H1 2024 (RMB) | Change | | :--- | :--- | :--- | :--- | | Revenue | 53.368 billion yuan | 69.562 billion yuan | -23.3% | | Profit Attributable to Shareholders | 210 million yuan | 2.045 billion yuan | -89.7% | | Bank Deposits and Cash (Period-end) | 66.795 billion yuan | N/A | Historical High | | Short-term Debt Ratio | 16.3% | N/A | Historical Low | | Weighted Average Interest Cost of Total Borrowings | 3.6% | 4.0% | Decreased by 40 basis points | | Total Contracted Sales | 122.2 billion yuan | N/A | Ranked Second in Industry | | Newly Added Project Value | 90.7 billion yuan | N/A | Ranked Third in Industry | | Proportion of Newly Added Project Value in Tier 1 & 2 Cities | 88% | N/A | Structural Safety | Interim Condensed Consolidated Financial Statements This section presents Greentown China's unaudited interim condensed consolidated financial statements, reflecting operating results and financial position for H1 2025 Interim Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income H1 2025 revenue decreased 23.3% to RMB 53.368 billion, with profit attributable to shareholders significantly down 89.7% to RMB 210 million Key Profit or Loss Statement Data for H1 2025 | Indicator | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | Change | | :--- | :--- | :--- | :--- | | Revenue | 53,368,264 | 69,562,037 | -23.3% | | Gross Profit | 7,158,895 | 9,103,633 | -21.4% | | Profit Before Tax | 2,237,052 | 4,668,759 | -52.1% | | Profit for the Period | 1,211,475 | 3,319,871 | -63.5% | | Profit for the Period Attributable to Owners of the Company | 209,907 | 2,044,902 | -89.7% | | Basic Earnings Per Share | RMB 0.08 | RMB 0.81 | -90.1% | Interim Condensed Consolidated Statement of Financial Position As of June 30, 2025, total assets reached RMB 518.114 billion, with net current assets at RMB 168.775 billion and net assets at RMB 119.323 billion Key Financial Position Data as of June 30, 2025 | Indicator | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | Change | | :--- | :--- | :--- | :--- | | Total Non-current Assets | 72,602,316 | 70,094,243 | +3.6% | | Total Current Assets | 445,511,833 | 437,690,728 | +1.8% | | Total Current Liabilities | 276,736,767 | 285,505,028 | -3.1% | | Net Current Assets | 168,775,066 | 152,185,700 | +10.9% | | Total Non-current Liabilities | 122,054,215 | 108,795,760 | +12.2% | | Net Assets | 119,323,167 | 113,484,183 | +5.1% | | Total Equity | 119,323,167 | 113,484,183 | +5.1% | Notes to the Interim Condensed Consolidated Financial Statements This section provides detailed notes on the interim condensed consolidated financial statements, covering preparation basis, accounting policy changes, and specific financial items 1. Basis of Preparation Interim condensed consolidated financial information is prepared under IAS 34 and should be read with the 2024 annual consolidated financial statements - Financial information is prepared in accordance with International Accounting Standard 34 "Interim Financial Reporting", is a condensed version, and should be read in conjunction with the annual financial statements[10] 2. Changes in Accounting Policies and Disclosures Accounting policies are consistent with 2024 annual statements, with new IFRS adoptions having no material impact on current financial data - Accounting policies are consistent with the 2024 annual statements, and the newly adopted IAS 21 amendment "Lack of Exchangeability" has no material impact on current financial data[11][12] 3. Operating Segment Information The Group's operating segments include property development, hotel operations, property investment, project management, and other businesses, with property development being the main contributor Revenue and Results by Operating Segment for H1 2025 | Segment | H1 2025 Revenue (RMB thousand) | H1 2024 Revenue (RMB thousand) | H1 2025 Results (RMB thousand) | H1 2024 Results (RMB thousand) | | :--- | :--- | :--- | :--- | :--- | | Property Development | 49,651,391 | 63,757,038 | 818,602 | 2,082,625 | | Hotel Operations | 452,864 | 486,897 | 7,759 | 31,687 | | Property Investment | 130,827 | 138,836 | 50,967 | 60,812 | | Project Management | 1,361,194 | 1,640,031 | 315,015 | 546,749 | | Others | 1,771,988 | 3,539,235 | 7,094 | 182,664 | | Total | 53,368,264 | 69,562,037 | 1,199,437 | 2,904,537 | Assets and Liabilities by Operating Segment as of June 30, 2025 | Segment | June 30, 2025 Assets (RMB thousand) | December 31, 2024 Assets (RMB thousand) | June 30, 2025 Liabilities (RMB thousand) | December 31, 2024 Liabilities (RMB thousand) | | :--- | :--- | :--- | :--- | :--- | | Property Development | 469,007,381 | 458,561,216 | 375,997,616 | 372,811,010 | | Hotel Operations | 9,958,944 | 10,204,302 | 889,378 | 966,578 | | Property Investment | 10,884,326 | 10,779,092 | 2,223,499 | 1,698,751 | | Project Management | 6,593,473 | 6,151,467 | 2,624,175 | 2,354,250 | | Others | 18,227,739 | 18,839,969 | 14,616,950 | 14,341,998 | | Total Segments | 514,671,863 | 504,536,046 | 396,351,618 | 392,172,587 | 4. Revenue H1 2025 total revenue was RMB 53.368 billion, primarily from customer contracts, representing a 23.3% year-on-year decrease, mainly from China Revenue Composition for H1 2025 | Revenue Source | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | Change | | :--- | :--- | :--- | :--- | | Revenue from Contracts with Customers | 53,237,437 | 69,423,201 | -23.3% | | Rental Income | 130,827 | 138,836 | -5.8% | | Total | 53,368,264 | 69,562,037 | -23.3% | - The Group's consolidated revenue primarily originates from the China market[18] 5. Other Income H1 2025 other income totaled RMB 930 million, a 46.0% decrease year-on-year, mainly driven by reduced interest income Other Income Composition for H1 2025 | Item | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | Change | | :--- | :--- | :--- | :--- | | Interest Income | 706,686 | 1,480,321 | -52.3% | | Integrated Services Income | 55,480 | 110,066 | -49.6% | | Government Grants | 30,569 | 15,942 | +91.7% | | Dividend Income from Equity Investments | 26,370 | 30,021 | -12.2% | | Others | 111,150 | 84,996 | +30.8% | | Total | 930,255 | 1,721,346 | -46.0% | 6. Other Gains / (Losses) H1 2025 net other gains were RMB 75.518 million, turning from a loss in H1 2024, mainly due to positive net exchange gains Other Gains / (Losses) Composition for H1 2025 | Item | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | Change | | :--- | :--- | :--- | :--- | | Net Exchange Gains / (Losses) | 36,025 | (74,064) | Turned from Loss to Profit | | Net Gains / (Losses) on Disposal of Property, Plant and Equipment and Right-of-use Assets | 1,162 | (14,609) | Turned from Loss to Profit | | Fair Value Changes (Losses) / Gains on Financial Assets Measured at Fair Value Through Profit or Loss | (1,131) | 519 | Turned from Profit to Loss | | (Losses) / Gains on Disposal of a Joint Venture | (15,458) | 2,696 | Turned from Profit to Loss | | Losses on Derecognition of Financial Liabilities Measured at Amortized Cost | (257) | (2,907) | Loss Decreased | | Others | 55,177 | – | Newly Added Gain | | Total | 75,518 | (88,365) | Turned from Loss to Profit | 7. Finance Costs H1 2025 total finance costs decreased 12.0% to RMB 1.141 billion, driven by a 20.2% reduction in total interest expense Finance Costs Composition for H1 2025 | Item | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | Change | | :--- | :--- | :--- | :--- | | Interest on Bank and Other Borrowings and Amounts Due to Related Parties | 2,269,997 | 2,910,475 | -22.0% | | Interest on Senior Notes | 180,645 | 230,928 | -21.8% | | Interest on Corporate Debt Instruments | 491,886 | 543,607 | -9.5% | | Interest on Leases | 10,705 | 13,138 | -18.6% | | Total Borrowing Costs | 2,953,233 | 3,698,148 | -20.2% | | Less: Interest Capitalized in Properties Under Development and Construction in Progress | (1,812,544) | (2,403,144) | -24.6% | | Total | 1,140,689 | 1,295,004 | -12.0% | 8. Taxation H1 2025 total tax expense decreased 24.0% to RMB 1.026 billion, with a notable increase in Land Appreciation Tax and a decrease in Enterprise Income Tax Tax Expense Composition for H1 2025 | Item | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | Change | | :--- | :--- | :--- | :--- | | China Enterprise Income Tax (Current) | 1,864,013 | 2,206,008 | -15.5% | | China Land Appreciation Tax (Current) | 1,501,647 | 424,753 | +253.5% | | China Enterprise Income Tax (Deferred) | (1,513,233) | (1,281,873) | +18.0% | | China Land Appreciation Tax (Deferred) | (826,850) | – | Newly Added | | Total Tax Expense for the Period | 1,025,577 | 1,348,888 | -24.0% | - Some Chinese subsidiaries enjoy a 15% preferential tax rate, while the general tax rate is 25%[24] - Land Appreciation Tax provision of RMB 675 million was recognized in H1 2025, an increase from RMB 425 million in the same period last year[25] 9. Dividends The Board approved a final dividend of RMB 0.3 per share for FY2024, totaling RMB 762 million, but resolved not to declare an interim dividend for H1 2025 Dividend Declaration Status | Item | H1 2025 | H1 2024 | | :--- | :--- | :--- | | 2024 Final Dividend (Per Share) | RMB 0.3 | N/A | | 2024 Final Dividend (Total) | RMB 761,880,000 | N/A | | 2023 Final Dividend (Per Share) | N/A | RMB 0.43 | | 2023 Final Dividend (Total) | N/A | RMB 1,088,759,000 | | H1 2025 Interim Dividend | None | None | 10. Earnings Per Share H1 2025 profit attributable to owners was RMB 210 million, leading to basic and diluted EPS of RMB 0.08, a significant decrease from H1 2024 Earnings Per Share Calculation Data | Indicator | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Profit for the Period Attributable to Owners of the Company (RMB thousand) | 209,907 | 2,044,902 | | Basic Earnings Per Share (RMB) | 0.08 | 0.81 | | Diluted Earnings Per Share (RMB) | 0.08 | 0.81 | | Weighted Average Number of Ordinary Shares for Basic EPS Calculation | 2,536,948,750 | 2,531,998,690 | | Weighted Average Number of Ordinary Shares for Diluted EPS Calculation | 2,539,249,268 | 2,531,998,690 | 11. Trade and Other Receivables, Deposits and Prepayments As of June 30, 2025, trade and other receivables, deposits, and prepayments totaled RMB 9.991 billion, a decrease from end of 2024 Trade and Other Receivables, Deposits and Prepayments | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | Change | | :--- | :--- | :--- | :--- | | Net Book Value of Trade Receivables | 2,353,344 | 2,637,572 | -10.8% | | Net Book Value of Other Receivables | 6,447,400 | 7,817,669 | -17.5% | | Prepayments and Deposits | 1,190,594 | 1,045,626 | +13.9% | | Total | 9,991,338 | 11,500,867 | -13.2% | - The average credit period for trade receivables is 90 days[30] 12. Amounts Due from / to Related Parties As of June 30, 2025, amounts due from related parties increased to RMB 87.540 billion, while amounts due to related parties slightly decreased to RMB 27.053 billion Amounts Due from Related Parties | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | Change | | :--- | :--- | :--- | :--- | | Associates | 11,214,288 | 9,248,716 | +21.2% | | Joint Ventures | 13,064,775 | 13,299,540 | -1.8% | | Non-controlling Shareholders | 63,074,103 | 57,423,771 | +9.8% | | Shareholder Companies | 43,507 | 4,625 | +840.7% | | Directors | 143,434 | 143,434 | 0% | | Total | 87,540,107 | 80,120,086 | +9.3% | Amounts Due to Related Parties | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | Change | | :--- | :--- | :--- | :--- | | Associates | 14,194,142 | 13,481,844 | +5.3% | | Joint Ventures | 5,937,450 | 5,616,200 | +5.7% | | Non-controlling Shareholders | 6,247,296 | 7,390,508 | -15.5% | | Shareholder Companies | 398,617 | 473,829 | -15.9% | | Directors | 275,877 | 298,191 | -7.5% | | Total | 27,053,382 | 27,260,572 | -0.8% | - As of June 30, 2025, the loss allowance for amounts due from related parties was assessed and recognized at RMB 2.202 billion, an increase from RMB 2.000 billion at end of 2024[31] 13. Trade and Other Payables As of June 30, 2025, trade and other payables totaled RMB 47.802 billion, a 15.2% decrease from end of 2024 Trade and Other Payables | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | Change | | :--- | :--- | :--- | :--- | | Trade Payables | 42,369,941 | 47,149,096 | -10.2% | | Other Payables and Accruals | 5,432,443 | 9,205,082 | -41.0% | | Total | 47,802,384 | 56,354,178 | -15.2% | - Among trade payables, the highest proportion is due within 180 days, amounting to RMB 28.300 billion[34] Management Discussion and Analysis This section analyzes Greentown China's H1 2025 operating performance, market environment, strategic initiatives, and financial position, including an outlook for H2 Operating Review In H1 2025, Greentown China achieved steady progress across sales, investment, financial stability, and product services, driven by its core philosophy and continuous innovation Market Environment - The real estate market continued its low-level consolidation, generally in a bottoming-out phase of "weak recovery, strong differentiation," with industry scale continuously shrinking, new and second-hand home prices persistently falling, and inventory rising[35] Company Strategy and Performance - Greentown China adheres to its philosophy of "intensive cultivation for survival, reform for progress, innovation for long-term success, and striving for victory," prioritizing sales destocking, increasing revenue and reducing expenditure, cost reduction and efficiency improvement, and quality delivery as baseline tasks[36] - The company has been ranked among the "Top 10 Comprehensive Strength of China's Real Estate Top 100 Enterprises" for 21 consecutive years, and received honors such as "2025 China Real Estate Top 100 Enterprises Stability Top 10" and "2025 China Real Estate Brand Value Top 4"[36] Performance H1 2025 Performance Overview | Indicator | H1 2025 (RMB) | H1 2024 (RMB) | Change | | :--- | :--- | :--- | :--- | | Revenue | 53.368 billion yuan | 69.562 billion yuan | -23.3% | | Profit Attributable to Shareholders | 210 million yuan | 2.045 billion yuan | -89.7% | | Area Recognized | Decreased by 22.7% year-on-year | N/A | Decrease | | Asset Impairment Loss | 1.933 billion yuan | N/A | Provision Made | Marketing H1 2025 Marketing Data | Indicator | Data | Ranking/Change | | :--- | :--- | :--- | | Total Contracted Sales Amount | RMB 122.2 billion yuan | Ranked Second Nationally | | Contracted Sales Amount of Self-invested Projects | RMB 80.3 billion yuan | Ranked Fifth Nationally | | Equity Sales Amount | RMB 53.9 billion yuan | Ranked Fifth Nationally | | Average Selling Price of Self-invested Projects | RMB 34,984/sqm | Maintained a relatively high level in the industry | | Collection Rate | 96% | Maintained at a high level | | Average Sell-through Rate of First-launch Projects | 80% | Increased by 2 percentage points year-on-year | | Digital Marketing Proportion | 22.6% | Increased by 10.5 percentage points year-on-year, hitting a historical high | | Digital Marketing Expense Ratio | 0.7% | Effectively saved marketing expenses | | Sales Proportion in Tier 1 & 2 Cities | Approx. 86% | Increased by 6 percentage points year-on-year | | Yangtze River Delta Sales Proportion | Approx. 69% | N/A | Investment H1 2025 New Investment Data | Indicator | Data | Ranking/Change | | :--- | :--- | :--- | | Number of New Projects | 35 | N/A | | Total New GFA | Approx. 3.55 million sqm | N/A | | Costs Borne by the Group | Approx. RMB 36.2 billion yuan | N/A | | Average Floor Price | Approx. RMB 13,591/sqm | N/A | | Estimated New Project Value | RMB 90.7 billion yuan | Ranked Third in Industry | | Average Equity Ratio of Newly Acquired Projects | Approx. 77% | Maintained at a relatively high level | | Proportion of New Project Value in Tier 1 & 2 Cities | 88% | N/A | | Sales Conversion Rate of Newly Acquired Projects in the Current Year | Approx. 55% | N/A | - As of June 30, 2025, the Group had 158 land reserve projects, with a total GFA of approximately 27.24 million sqm and attributable GFA of approximately 17.95 million sqm. High-tier cities accounted for approximately 80% of project value, and the Yangtze River Delta region accounted for approximately 64%[44] Product - Continuously iterated "Greentown Good Houses," updated product standards, and provided practical "Good Houses" operational IP technical manuals guided by operational value[45] - Vigorously promoted industrialized technologies such as cross-construction and industrial interior decoration to improve engineering efficiency and product quality[46] - In H1, self-invested and agency construction segments collectively delivered 84 projects, with an area of approximately 7.80 million sqm and approximately 39,000 households delivered[46] Operations - Average land acquisition to operational breakeven cycle accelerated by 7% to 11.5 months, and land acquisition to delivery accelerated by 4% to 25.3 months[47] - Average unit construction cost decreased by approximately RMB 150 compared to end of 2024[48] - Centralized procurement prices for key categories decreased by over 10%, and the "one city, one value" cost database was iterated[48] Organization - Organizational efficiency improved, with two-tier management units accounting for 82%, and per capita construction area for non-marketing personnel maintained above 12,000 sqm[49] - Over 160 core talents were introduced externally, 68 key position special forces were selected and trained internally, and 70 core talents from headquarters were deployed to frontline positions[49] Financing H1 2025 Financing Costs and Activities | Indicator | Data | Change/Description | | :--- | :--- | :--- | | Weighted Average Interest Cost of Total Borrowings (End of June 2025) | 3.4% | Decreased from 3.9% at end of same period last year | | Domestic Primary Market Issuance | 9 tranches totaling RMB 7.711 billion yuan | Including 5.5 billion yuan credit bonds and 2.211 billion yuan supply chain ABN | | Mid-to-long Term Credit Bond Financing Cost (August) | 3.27% | Historical low 3-year medium-term note issuance rate | | Offshore Debt Exchange | Approx. USD 802 million | N/A | | Offshore Senior Notes Issuance | USD 500 million (3-year, 8.45%) | Reopened offshore USD bond financing channel for Chinese real estate | | Proportion of Offshore Debt | Approx. 15.3% | Decreased by 1.1 percentage points from end of 2024 | Agency Construction Business - Greentown Management consecutively won multiple "Top 1 Leading Enterprise in China's Real Estate Agency Construction Operations" honors from China Index Academy, E-House CRIC, and CRIC[52] H1 2025 Agency Construction Business Data | Indicator | Data | Change | | :--- | :--- | :--- | | Newly Expanded Agency Construction Area | Approx. 19.89 million sqm | Increased by 13.9% year-on-year | | Newly Expanded Agency Construction Fees | Approx. RMB 5 billion yuan | Increased by 19.1% year-on-year | | High-quality Delivery Area | Approx. 4.65 million sqm | Ranked First in Industry | | Number of High-quality Delivered Units | 25,600 units | Ranked First in Industry | | Bank Balances and Cash (June 30, 2025) | RMB 1.64 billion yuan | Increased by 8% from end of 2024 | Greentown+ Businesses - In the lifestyle technology business, C-end mid-to-high-end home decoration business contract value exceeded RMB 640 million in H1, with a year-on-year increase of over 100%[54] - Decoration business received AAA industry credit rating for ten consecutive years; EPC business facilitated the smooth delivery of the first affordable housing "Good House"[54] - Commercial operations business successfully secured full-process entrusted management and operation services for an apartment commercial complex project in Binjiang District, Hangzhou, achieving a breakthrough from zero to one in the asset-light sector[54] - Town operations successfully signed 2 industrial service projects; Greentown Health & Elderly Care business achieved a new high in expansion, securing 3 asset-light projects[54] Outlook H2 2025 outlook anticipates continued real estate market consolidation, with Greentown China focusing on strategic commitments and key measures for healthy development Market Outlook - Policy orientation shifted from "deleveraging" to "risk prevention," market demand from "universal growth" to "differentiation," and industry competition from "scale expansion" to "quality competition"[55] - The industry is expected to remain in a consolidation phase in H2 2025, with a full market recovery still requiring time. Core cities show stronger resilience, while third and fourth-tier cities face long-term destocking pressure[55] Strategic Focus and Key Initiatives - Firmly adhere to the "Three Unwavering Commitments": strategic focus (deep cultivation of "quality land, quality products, quality services"), quality belief (product strength as core competitiveness), and stable operations (moderate scale, risk prevention)[56] - Eight key measures will be implemented: accelerating inventory destocking, maintaining precise investment, strengthening risk control, focusing on operational upgrades, achieving product advancement, concentrating on cost reduction and potential tapping, deepening agency construction development, and promoting business focus[57][58] H2 Operating Expectations H2 2025 Operating Expectations | Indicator | Data | Description | | :--- | :--- | :--- | | Salable Value of Self-invested Projects in H2 | Approx. RMB 176.3 billion yuan | Excluding salable value of newly acquired projects after July in the current year | | Salable Area of Self-invested Projects in H2 | Approx. 5.76 million sqm | N/A | | Proportion of Project Value in Tier 1 & 2 Cities | 83% | Increased by 4 percentage points compared to the same period last year | | Total GFA of Projects/Phases Completed in Full Year 2025 | Approx. 7.89 million sqm | N/A | | Accumulated Sold but Unrecognized Revenue (June 30, 2025) | Approx. RMB 198.7 billion yuan | Equity approx. RMB 143.5 billion yuan, equity ratio approx. 72% | Financial Analysis This section analyzes Greentown China's H1 2025 financial performance, highlighting decreased revenue and profit, improved gross margin, optimized financial structure, and ample liquidity Revenue H1 2025 Revenue Composition and Changes | Revenue Source | H1 2025 (RMB) | H1 2024 (RMB) | Proportion (2025) | Change | | :--- | :--- | :--- | :--- | :--- | | Total Revenue | 53.368 billion yuan | 69.562 billion yuan | 100% | -23.3% | | Property Sales Revenue | 49.651 billion yuan | 63.757 billion yuan | 93.0% | -22.1% | | Design and Decoration Revenue | 960 million yuan | 1.525 billion yuan | 1.8% | -37.0% | | Project Management Revenue | 1.361 billion yuan | 1.640 billion yuan | 2.6% | -17.0% | | Revenue from Operations of Investment Properties, etc. | 1.396 billion yuan | 1.388 billion yuan | 2.6% | +0.6% | - Property sales recognized area was 2,046,289 sqm, a year-on-year decrease of 22.7%; average property selling price was RMB 24,264/sqm, a slight increase compared to the same period last year[60] - Property sales revenue from Hangzhou accounted for 45.1%, Zhejiang (excluding Hangzhou) for 15.8%, and Shanghai for 10.3%[61] Gross Profit and Gross Margin H1 2025 Gross Profit and Gross Margin | Indicator | H1 2025 (RMB) | H1 2024 (RMB) | Change | | :--- | :--- | :--- | :--- | | Gross Profit | 7.159 billion yuan | 9.104 billion yuan | -21.4% | | Gross Margin | 13.4% | 13.1% | +0.3 percentage points | | Property Sales Gross Margin | 12.7% | 11.7% | +1.0 percentage points | Other Income H1 2025 Other Income Changes | Indicator | H1 2025 (RMB) | H1 2024 (RMB) | Change | | :--- | :--- | :--- | :--- | | Other Income | 930 million yuan | 1.721 billion yuan | -46.0% | Administrative Expenses H1 2025 Administrative Expenses Changes | Indicator | H1 2025 (RMB) | H1 2024 (RMB) | Change | | :--- | :--- | :--- | :--- | | Administrative Expenses | 1.523 billion yuan | 1.690 billion yuan | -9.9% | | Human Resources Costs | 804 million yuan | 809 million yuan | -0.6% | | Daily Operating Expenses | 487 million yuan | 661 million yuan | -26.3% | Selling Expenses H1 2025 Selling Expenses Changes | Indicator | H1 2025 (RMB) | H1 2024 (RMB) | Change | | :--- | :--- | :--- | :--- | | Selling Expenses | 1.057 billion yuan | 1.126 billion yuan | -6.1% | | Human Resources Costs | 412 million yuan | 478 million yuan | -13.8% | | Marketing Activities Expenses | 471 million yuan | 470 million yuan | Remained Flat | Finance Costs H1 2025 Finance Costs Changes | Indicator | H1 2025 (RMB) | H1 2024 (RMB) | Change | | :--- | :--- | :--- | :--- | | Interest Expense Recognized in Profit or Loss | 1.141 billion yuan | 1.295 billion yuan | -12.0% | | Total Interest Expense | 2.953 billion yuan | 3.698 billion yuan | -20.2% | | Weighted Average Interest Cost | 3.6% | 4.0% | Decreased by 40 basis points | Share of Results of Joint Ventures and Associates H1 2025 Share of Results of Joint Ventures and Associates | Indicator | H1 2025 (RMB) | H1 2024 (RMB) | Change | | :--- | :--- | :--- | :--- | | Share of Results of Joint Ventures | Loss of 419 million yuan | Loss of 659 million yuan | Loss narrowed | | Share of Results of Associates | Profit of 149 million yuan | Profit of 449 million yuan | Profit decreased | | Total | Loss of 270 million yuan | Loss of 210 million yuan | Loss increased by 60 million yuan | Taxation Expenses H1 2025 Taxation Expenses Composition | Item | H1 2025 (RMB) | H1 2024 (RMB) | Change | | :--- | :--- | :--- | :--- | | Land Appreciation Tax | 675 million yuan | 425 million yuan | +58.8% | | Enterprise Income Tax | 351 million yuan | 924 million yuan | -62.0% | | Land Appreciation Tax as % of Revenue | 1.3% | 0.6% | +0.7 percentage points | Impairment Losses Recognized and Reversals for Certain Assets H1 2025 Asset Impairment Losses | Item | H1 2025 (RMB) | H1 2024 (RMB) | Change | | :--- | :--- | :--- | :--- | | Impairment Losses on Non-financial Assets | 1.717 billion yuan | 1.422 billion yuan | +20.7% | | Impairment for Expected Credit Losses | 216 million yuan | 324 million yuan | -33.3% | Contract Liabilities Contract Liabilities Balance | Item | June 30, 2025 (RMB) | December 31, 2024 (RMB) | Change | | :--- | :--- | :--- | :--- | | Group's Contract Liabilities Balance | 155.084 billion yuan | 146.959 billion yuan | +5.5% | | Contract Liabilities Balance of Joint Ventures and Associates | 22.164 billion yuan | 26.292 billion yuan | -15.7% | Sources of Funding and Liquidity H1 2025 Financing and Liquidity Indicators as of June 30, 2025 | Indicator | June 30, 2025 (RMB) | December 31, 2024 (RMB) | Change | | :--- | :--- | :--- | :--- | | Bank Deposits and Cash | 66.795 billion yuan | 72.988 billion yuan | -8.5% | | Total Borrowings | 143.027 billion yuan | 137.187 billion yuan | +4.3% | | Net Debt | 76.232 billion yuan | 64.199 billion yuan | +18.7% | | Net Gearing Ratio | 63.9% | 56.6% | +7.3 percentage points | | Proportion of Borrowings Due Within One Year to Total Borrowings | 16.3% | 23.1% | -6.8 percentage points (Historical Low) | | Bank Deposits and Cash / Borrowings Due Within One Year | 2.9 times | 2.3 times | +0.6 times (Historical High) | Exchange Rate Fluctuation Risk - The Group's primary operations are in China, with most income and expenses settled in RMB, but it still faces foreign exchange risks related to foreign currencies[74] - Purchased USD 840 million in cross-currency interest rate swaps and forward foreign exchange contracts to reduce exchange rate risk, lowering average financing costs by 2.3 percentage points[74] - Net exchange gains of RMB 36 million were generated in the current period, compared to a loss of RMB 74 million in the same period last year[74] Contingent Liabilities Mortgage Loan Guarantees | Indicator | June 30, 2025 (RMB) | December 31, 2024 (RMB) | Change | | :--- | :--- | :--- | :--- | | Mortgage Loan Guarantees | 18.145 billion yuan | 24.295 billion yuan | -25.3% | Pledged Assets Total Pledged Assets | Indicator | June 30, 2025 (RMB) | December 31, 2024 (RMB) | Change | | :--- | :--- | :--- | :--- | | Total Pledged Assets | 135.951 billion yuan | 135.507 billion yuan | +0.3% | Capital Commitments Capital Commitments | Indicator | June 30, 2025 (RMB) | December 31, 2024 (RMB) | Change | | :--- | :--- | :--- | :--- | | Capital Commitments Contracted but Not Provided For | 755 million yuan | 914 million yuan | -17.4% | Capital Expenditure Plan - The Group currently has no significant capital expenditure plans and adopts a cautious approach to fund utilization[78] Other Information This section provides supplementary non-financial information, including post-balance sheet events, listed securities transactions, human resources, and corporate governance Post Balance Sheet Events No material events affecting the Group have occurred after June 30, 2025, other than those already disclosed - No material events occurred after the end of the reporting period[79] Purchase, Sale or Redemption of the Company's Listed Securities The Company repurchased USD 451.863 million of notes in February 2025 and issued USD 500 million of 8.45% Senior Notes due 2028 - On February 13, 2025, the company announced an offer to repurchase its April 2025 Notes and July 2025 Notes[81] - On February 26, 2025, a total of USD 451,863,000 of the April 2025 Notes and July 2025 Notes were accepted and repurchased, and subsequently cancelled[81] - On February 24, 2025, the company issued USD 500 million of 8.45% Senior Notes due 2028[82] Human Resources As of June 30, 2025, the Group employed 8,792 employees, with remuneration based on performance, experience, and industry practice, incentivized by various awards Number of Employees | Indicator | June 30, 2025 | December 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Total Employees | 8,792 | 8,765 | +27 | - Remuneration is determined based on performance, experience, and industry practice, and employees are incentivized through bonuses, cash awards, and share options or share awards[83] Corporate Governance Code The Company has complied with all applicable code provisions of the Corporate Governance Code in Appendix C1 of the HKEX Listing Rules - The company has complied with all applicable code provisions of the Corporate Governance Code in Appendix C1 of the HKEX Listing Rules throughout the reporting period[84] Model Code The Company adopted the Model Code for directors' securities transactions, and directors confirmed compliance throughout the reporting period - The company has adopted the Model Code as set out in Appendix C3 of the Listing Rules, and directors have confirmed compliance throughout the reporting period[85] Review of Interim Results The H1 2025 interim results announcement was reviewed by the Audit Committee and approved by the Board, with auditor Ernst & Young conducting a review - The interim results announcement has been reviewed by the Audit Committee and approved by the Board[86] - Auditor Ernst & Young has reviewed the interim condensed consolidated financial information in accordance with Hong Kong Standard on Review Engagements 2410[86] Interim Dividend The Board resolved not to declare any interim dividend for the six months ended June 30, 2025 - The Board resolved not to declare an interim dividend for H1 2025[87] Publication of Interim Report The Company's full 2025 Interim Report will be dispatched to shareholders and published on the HKEX and company website - The full 2025 Interim Report will be dispatched to shareholders and published on the HKEX and the company's website[88] Forward-Looking Statements This announcement contains forward-looking statements, and actual results may differ materially due to inherent risks and uncertainties - This announcement contains forward-looking statements, involving risks and uncertainties regarding future events[89] - Actual operating results, financial condition, liquidity, and industry developments may differ materially from forward-looking statements[89] Acknowledgements The Board extends sincere gratitude to all shareholders, customers, suppliers, banks, professional advisors, and employees - The Board extends its sincere gratitude to all stakeholders[90] Board of Directors As of the announcement date, the Board of Directors comprises a Chairman, four Executive Directors, two Non-executive Directors, and four Independent Non-executive Directors - The Board of Directors includes a Chairman and Non-executive Director, four Executive Directors, two Non-executive Directors, and four Independent Non-executive Directors[91]