Shenzhen Zhenye Group reports Q2 loss, faces legal battles

Shenzhen Zhenye Group announced its 2025 semi-annual financial report on August 29, 2025. The company's total assets for the period were CNY 16,097,408,845.98, with total liabilities at CNY 10,479,169,922.89. Net profit attributable to shareholders of the parent company was CNY -70,976,610.99. The group's primary business activities involve land development, property sales, leasing, agency services, and property management.

The company is involved in significant legal disputes. In the "New Town Garden Project" litigation, following a series of judgments and appeals since 2003, the Shenzhen Intermediate People's Court on May 30, 2024, rejected Shenzhen Xionfeng's appeal, a decision upheld by the Guangdong High Court on February 20, 2025. As of June 20, 2025, the Shenzhen People's Procuratorate accepted Shenzhen Xionfeng's application for supervision.

Additionally, the "Changsha Project" litigation saw a ruling by the Changsha Intermediate People's Court on September 6, 2023, confirming that Baifu Investment Group must bear CNY 50,049,724.25 for increased demolition and resettlement costs. This decision was appealed to the Hunan High Court and then to the Supreme People's Court, which rejected the company's and Hunan Zhenye's re-appeal application on December 26, 2024. As of June 30, 2025, the company had outstanding guarantees for residential mortgage loans amounting to CNY 3.162 bn.