Xinhu Zhongbao reports Q3 profit plunge amid real estate slowdown

Xinhu Zhongbao's third quarter of 2025 saw a substantial decline in key financial metrics. Operating revenue for the period decreased by 77.12% to CNY 343.67 million, and net profit attributable to shareholders fell by 37.25% to CNY 281.28 million. The company attributed this to a reduced number of real estate projects delivered compared to the previous year.

In a related financial move, Xinhu Zhongbao announced a guarantee for its subsidiary, Ruian Zhongbao Real Estate, involving an equity pledge for CNY 109.42 million over a three-year term. This guarantee falls within the previously approved quota of CNY 20.3 billion for 31 controlled subsidiaries and CNY 6.5 billion for five joint ventures, as sanctioned by the company's shareholders. Additionally, Xinhu Zhongbao will accept a counter-guarantee from its controlling shareholder, Quzhou Industrial Holding Group, totaling CNY 3 billion for its financing needs.

Real estate operational data for the first nine months of 2025 revealed no new land reserves or new construction starts. New completed area decreased by 48.11% to 215,800 square meters, while settled area and income dropped by 74.08% and 93.38% respectively. Contract sales area decreased slightly by 0.63% to 276,200 square meters, but contract sales revenue surged by 253.24% to CNY 23.87 billion.