Shimao Group (00813) reported a turnaround for the year ended 31 December 2025, posting net profit of RMB4.48 billion versus a RMB43.69 billion loss in 2024. The reversal stemmed chiefly from a RMB69.52 billion gain booked on completion of the offshore debt restructuring in July 2025.

Revenue dropped 52.6% year-on-year to RMB28.42 billion, reflecting slower property deliveries amid liquidity pressures. Property sales contributed 58.2% of revenue, hotel operations 7.7%, commercial property operations 5.3%, and property management and other services 28.8%.

Despite the restructuring gain, operating metrics remained weak: • Gross loss widened to RMB28.78 billion (2024: RMB5.87 billion) after a RMB26.01 billion impairment on properties under development and completed units. • Fair-value losses on investment properties increased to RMB4.49 billion. • Net finance costs fell 39.8% to RMB7.27 billion, helped by lower effective interest rates and forex gains.

Contracted sales for 2025 totalled RMB23.95 billion on 1.97 million sq m, equating to an average selling price of RMB12,192 per sq m. Recognised sales area was 1.65 million sq m, yielding property sales revenue of RMB16.54 billion.

Balance-sheet indicators improved post-restructuring: • Total borrowings fell by RMB69.79 billion to RMB182.27 billion. • Cash and bank balances (including restricted cash) declined to RMB12.07 billion. • Borrowings-to-assets ratio eased to 51.0% (2024: 57.8%), and the current ratio inched up to 1.0 (2024: 0.9). • Land bank stood at 34.16 million sq m (before interests), with no land acquisitions during the year.

Subsidiaries delivered mixed results: • Shimao Services generated revenue of RMB7.88 billion and net profit of RMB134.60 million. • Hotel operations recorded revenue of RMB2.18 billion on a 68% occupancy rate. • Commercial property operations saw revenue slide 10.4% to RMB1.49 billion; managed retail projects maintained nearly 90% occupancy, while office occupancy edged up to 73%.

The board proposed no final dividend.

Auditor Zhonghui ANDA CPA Limited issued a disclaimer of opinion, citing material uncertainties over the group’s ability to continue as a going concern, unresolved creditor negotiations and supplier payment deferrals, and a prior-year scope limitation on loss recognition for a debt-settled project.

Looking ahead, management plans to emphasise “sales-driven production,” prudent land-bank management and continued cost controls while pursuing high-quality, diversified development.