Guangzhou R&F Properties' losses widen to RMB4.082 bn amid market downturn

Guangzhou R&F Properties Co., Ltd. reported a net loss of RMB4.082 billion for the six months ended June 30, 2025, a considerable increase from RMB2.331 billion in the same period of 2024. Revenue for the period decreased by 60% to RMB4.165 billion, primarily due to a slump in the PRC real estate industry and a 48% reduction in properties delivered. Rental income also fell by 26% to RMB313 million, and hotel operations revenue declined by 70% to RMB827 million.

The group's total assets stood at RMB289,149,458 thousand as of June 30, 2025, with liabilities totaling RMB264,378,504 thousand. Despite stringent cost control measures, including a 25% decrease in selling and marketing costs to RMB453 million and a 3.6% reduction in administrative expenses to RMB1.520 billion, these efforts were insufficient to offset the significant revenue decline.

The company is actively engaged in restructuring its offshore debt and discussing extensions or refinancing with other lenders to address liquidity issues. The board has not declared an interim dividend for the period, maintaining a conservative approach to manage its financial resources.