Zensun Enterprises Limited (Zensun Ent) reported a 2025 net loss attributable to shareholders of RMB856.04 million, sharply lower than the RMB2.18 billion loss recorded in 2024. Basic loss per share narrowed to RMB0.447 from RMB1.140.

\n\nRevenue fell 27.5% year-on-year to RMB6.92 billion, reflecting reduced handover volume in the mainland China property development segment. Despite the top-line contraction, gross profit increased 51.0% to RMB548.20 million, lifting gross margin to 7.9% (2024: 3.8%), aided by stabilising prices at projects in prime locations.

\n\nOperating items showed mixed trends: • Other income slipped 22.9% to RMB5.55 million, mainly on lower interest income. • Net other losses were trimmed to RMB647.37 million (2024: RMB1.56 billion), as inventory write-downs eased to RMB610.87 million and a RMB25.19 million fair-value gain was booked on financial assets. • Finance costs rose 51.4% to RMB438.45 million due to a smaller portion of interest eligible for capitalisation. • Administrative and sales expenses declined 5.5% and 44.7% respectively, reflecting ongoing cost-cutting.

\n\nLiquidity remains tight. Cash and cash equivalents fell to RMB210.52 million (31 Dec 2024: RMB317.54 million). Total cash, including restricted balances and pledged deposits, stood at RMB666.62 million versus total borrowings of RMB14.07 billion. The gearing ratio (net debt/total assets) increased to 40.6% from 34.4%.

\n\nAt year-end the company was in default or cross-default on USD-denominated senior notes and certain bank loans totalling RMB4.62 billion. Current liabilities of RMB31.67 billion were almost fully matched by current assets of RMB31.97 billion, yielding a current ratio of 1.01. Net assets shrank to RMB105.39 million (31 Dec 2024: RMB962.68 million).

\n\nSegment performance • Property development revenue slid to RMB6.81 billion (2024: RMB9.44 billion) with a segment loss of RMB737.54 million. Delivered gross floor area fell to 0.80 million sq m from 1.33 million sq m, while average selling price edged up to RMB7,906 per sq m. • Project management services generated revenue of RMB13.34 million and profit of RMB6.18 million. • Hotel operations in Zhengzhou contributed revenue of RMB34.89 million and profit of RMB15.96 million. • U.S. property investment via American Housing REIT turned to a RMB13.83 million profit (2024: RMB3.84 million loss) on higher fair-value gains. • Securities trading posted a RMB39.95 million profit versus a RMB72.48 million loss a year earlier.

\n\nCapital commitments for ongoing developments totalled RMB3.12 billion, while contingent liabilities from mortgage guarantees remained sizable at RMB18.21 billion.

\n\nThe board proposed no final dividend for 2025. Management plans to negotiate with creditors, pursue new financing, step up project sales, and continue cost controls to address liquidity pressures and support operations.