KWG Group Holdings Limited reported a net loss attributable to shareholders of RMB 3.27 billion for the year ended 31 December 2025, a marked improvement from the RMB 8.09 billion deficit in 2024. The narrowed loss was supported by a one-off RMB 4.50 billion gain from debt restructuring, which lifted total other income and gains to RMB 4.68 billion (2024: RMB 0.52 billion).
Revenue contracted 38.9% year on year to RMB 6.76 billion, reflecting softer contracted sales and reduced deliveries amid a weak mainland property market. Property development remained the core driver, contributing RMB 5.31 billion (-43.8%), while rental income from investment properties fell 10.2% to RMB 0.80 billion and hotel revenue slipped 8.5% to RMB 0.65 billion.
Margins came under pressure. Gross profit slid 46.5% to RMB 1.01 billion, while the gross margin retreated to 14.9% (2024: 17.1%). Impairment charges on inventories and other assets totalled RMB 2.47 billion and fair-value losses on investment properties reached RMB 1.30 billion, underscoring continued market weakness. Finance costs remained high at RMB 2.71 billion, only marginally lower than the prior year.
Liquidity remains the group’s most acute challenge. Cash and bank balances stood at just RMB 0.63 billion versus short-term interest-bearing debt of RMB 53.05 billion. Net current liabilities widened to RMB 44.81 billion (2024: RMB 37.65 billion), and net gearing soared to 1,098%. As at year-end, offshore notes and bank borrowings in default or cross-default totalled RMB 50.99 billion. A winding-up petition filed in Hong Kong over a RMB 0.78 billion guaranteed loan remains pending; the next court hearing is scheduled for 22 June 2026.
Management is seeking a holistic restructuring of its US $4.66 billion offshore indebtedness and has agreed key terms in principle with an ad hoc bondholder group controlling 25.8% of the exposure. Onshore bondholders have already approved restructuring plans involving cash buy-backs, debt-for-asset swaps and term extensions. Additional measures include accelerating project pre-sales, disposing of non-core assets, and tightening overheads.
The auditor flagged a material uncertainty over going-concern status, citing the large near-term maturities, limited liquidity and pending legal actions. No dividend was proposed for 2025.
Segmental Performance • Property Development: GFA delivered fell to 536,993 sq m (-13.9%), while average selling price declined to RMB 9,896 per sq m (-34.7%). Segment loss widened to RMB 4.67 billion. • Property Investment: Rental revenue slipped to RMB 0.80 billion; the segment posted a RMB 0.73 billion loss after a RMB 1.30 billion fair-value write-down. • Hotel Operation: Revenue eased to RMB 0.65 billion; the segment recorded a RMB 0.16 billion profit.
Balance-Sheet Snapshot (31 Dec 2025) • Total assets: RMB 147.56 billion • Total equity: RMB 6.65 billion (-27.2%) • Interest-bearing borrowings: RMB 73.61 billion, of which 72.1% current • Cash and cash equivalents: RMB 0.63 billion (including RMB 0.45 billion restricted)
Looking ahead, KWG Group will focus on closing its offshore debt restructuring, safeguarding project deliveries and cash collections, and executing asset disposals to stabilise its capital structure in a challenging operating environment.