JY Grandmark released its audited results for the year ended 31 December 2025, reporting a steep contraction in revenue and a significantly larger bottom-line loss, while the external auditor issued a disclaimer of opinion due to multiple uncertainties surrounding the group’s ability to continue as a going concern.

Financial highlights • Revenue fell 83.7% year-on-year to RMB559.12 million, driven by a sharp decline in property handovers. • Gross profit before property impairments plunged 92.5% to RMB37.32 million; after recognising RMB163.71 million of impairment charges on inventory, the group recorded a gross loss of RMB126.39 million. • Operating loss widened to RMB361.17 million (2024: RMB23.58 million). Net finance costs expanded to RMB134.09 million, reflecting lower capitalised interest. • Net loss attributable to owners of the company reached RMB408.90 million; total net loss stood at RMB526.76 million versus RMB132.58 million a year earlier. • Basic and diluted loss per share increased to RMB0.25 from RMB0.21.

Segment performance • Property development and sales remained the core contributor, generating RMB478.36 million or 85.5% of group revenue, but the recognised average selling price dropped 63% to RMB5,162 per sq m amid price cuts to clear stock. • Hotel operations revenue decreased 47.6% to RMB30.69 million following the closure of Just Stay Hotel in late-2024. • Property management income rose 16.8% to RMB49.43 million on enlarged managed GFA. • Commercial property investment delivered only RMB0.64 million after disposal of rental assets.

Operating metrics • Contracted sales (including joint ventures and associates) fell 43.5% to RMB266 million despite a 15.7% increase in contracted GFA to 59,000 sq m, underscoring heavy price pressure. • Completed deliveries shrank to 91,967 sq m (2024: 237,185 sq m).

Balance sheet and liquidity • Total assets declined to RMB6.21 billion (2024: RMB6.97 billion), while total equity fell to RMB0.64 billion. • Cash and restricted cash narrowed to RMB72.32 million; current borrowings ballooned to RMB3.41 billion, lifting the net gearing ratio to 525.19% (2024: 277.7%). • As at year-end, RMB1.70 billion of borrowings were overdue, triggering cross-defaults of RMB69 million. Subsequent to the balance-sheet date, additional defaults of RMB1.49 billion occurred. • The group is negotiating extensions, pursuing asset sales, and seeking new financing, but significant uncertainty remains.

Auditor’s view McMillan Woods (Hong Kong) CPA Limited issued a disclaimer of opinion, citing multiple uncertainties related to loan defaults, liquidity pressure and the success of management’s remedial measures.

Other information • No dividend was proposed for FY2025. • The group continues to face a court-mandated forced auction of its hotel asset in Guangzhou, with outcomes still uncertain.

The board classifies 2026 as a “pivotal year” and lists debt restructuring, asset revitalisation and strengthened governance as immediate priorities.