Greentown China sees revenue drop but market position stabilizes in H1 2025

Greentown China Holdings Limited reported revenue of 53,368m yuan for the first half of 2025, a 23.3% decrease from 69,562m yuan in the same period of 2024. Profit attributable to owners of the company also saw a significant drop of 89.7% to 210m yuan, compared to 2,045m yuan in H1 2024, primarily due to uneven delivery schedules and a 1,933m yuan impairment loss on assets. Despite these challenges, the company’s gross profit margin increased to 13.4% from 13.1% in H1 2024.

The company's total contracted sales reached approximately 122.2bn yuan, maintaining its second-place ranking in the industry, with self-investment projects contributing 80.3bn yuan. New investments totaled 35 projects with a GFA of approximately 3.55 million sqm, amounting to 36.2bn yuan in costs and an estimated 90.7bn yuan in saleable value. At the end of June 2025, total land reserves stood at 27.24 million sqm across 158 projects. The net gearing ratio increased to 63.9% from 56.6% in 2024.

Greentown China continued to optimize its debt structure, with a weighted average interest cost of total borrowings decreasing to 3.4% from 3.9% at the end of 2024. Bank balances and cash (including pledged bank deposits) amounted to 66,795m yuan. The company successfully completed the refinancing of offshore debts of approximately $802m and issued $500m in 3-year senior notes, marking the first USD bond issuance in the Chinese real estate sector since February 2023.