Guangzhou R&F Properties forecasts wider half-year loss as property slump continues

Guangzhou R&F Properties Co., Ltd. expects to report a net loss of approximately 4.08 billion yuan for the six months ended June 30, 2025, widening from the 2.33 billion yuan net loss reported in the corresponding period of 2024. This deterioration is largely attributed to the continued downturn in China’s real estate industry, leading to decreased revenue and gross profit from property development.

The company's revenue from property development fell 60% to 4.165 billion yuan, with sales of properties decreasing by 48% to 460,960 sq.m. The overall gross profit for the period was 1.259 billion yuan. To address liquidity pressures, the Group implemented stringent cost control measures, resulting in a 25% decrease in selling and marketing costs to 453 million yuan.

Despite ongoing restructuring efforts for its offshore debt and discussions with lenders to extend borrowings, the Group’s ability to continue as a going concern depends on the successful outcome of these plans. The Board has not declared an interim dividend for the six months ended June 30, 2025.