Xin Lang Cai Jing·2026-01-27 03:20Core Viewpoint - Xiamen State-owned Enterprise Jianfa Co., Ltd. reported its first loss since its listing over twenty years ago, with projected net profit attributable to shareholders ranging from -10 billion to -5.2 billion yuan for 2025 [1][2]. Group 1: Financial Performance - Jianfa Co. expects a net profit attributable to shareholders for 2025 to be between -10 billion and -5.2 billion yuan, with a net profit after deducting non-recurring gains and losses estimated at -6.5 billion to -3.3 billion yuan [1][2]. - The company attributes the loss primarily to negative profit settlements from its real estate subsidiary, Lianfa Group, increased inventory impairment provisions, and losses from the fair value changes of investment properties held by its home furnishing subsidiary, Red Star Macalline [1][3]. Group 2: Subsidiary Performance - Lianfa Group is expected to report a negative net profit for 2025, with revenue from real estate projects declining year-on-year, leading to negative overall profit settlements [2][3]. - Red Star Macalline is also projected to incur a net loss for 2025, with ongoing weakness in the real estate market affecting demand in the home furnishing retail sector, resulting in significant declines in rental income and property values [3][5]. Group 3: Strategic Changes - Jianfa Co. has undergone significant organizational changes, including a leadership transition at Lianfa Group, with Wang Wenhuai replaced by Lin Weiguo as chairman, aiming to implement a new strategy focused on high-quality, competitive housing in first-tier cities [4][10]. - The company has faced challenges in transforming Lianfa Group, which has historically focused on third- and fourth-tier cities, leading to longer project turnover times and increased pressure during industry adjustments [5][14]. Group 4: Market Context - The real estate industry is experiencing deep adjustments, with Jianfa Co. facing growth pressures and difficulties in resource allocation between its two platforms, Lianfa Group and Jianfa Real Estate [14][15]. - Despite previous successes, Jianfa Real Estate's growth has slowed, with challenges in acquiring quality land in core cities and a decrease in profit margins due to market conditions [14][15].