Seazen Group sees revenue decline amid property downturn, commercial income rises

For the six months ended 30 June 2025, Seazen Group's total revenue fell to RMB22,173.5 million from RMB34,003.3 million in the same period of 2024, primarily due to the real estate market downturn affecting property sales. Despite this, revenue from commercial property management services and rental income combined increased 10.7% year-on-year, reaching approximately RMB6,425.2 million. The group's gross profit was RMB5,400.6 million, with the gross profit margin rising to 24.4% from 20.1% in 2024, reflecting the increased proportion of higher-margin commercial property income.

Net profit attributable to equity holders for the period was RMB691.6 million, a 27.9% decrease from RMB959.2 million in 2024. This was influenced by reduced revenue and sales costs, though selling and marketing costs decreased 39.9% to RMB988.8 million, and administrative expenses dropped 20.0% to RMB1,350.4 million. Net finance costs also decreased 11.9% to RMB1,378.3 million due to lower interest on borrowings and foreign exchange losses.

As of 30 June 2025, total borrowings stood at RMB57.24 billion, with cash on hand at RMB10.34 billion. The net debt-to-equity ratio was 54.6%, and the weighted average borrowing cost was 5.84% per annum. The board did not recommend an interim dividend for the period.