Gemdale Corporation issued a profit warning, estimating a net loss attributable to parent company shareholders of 2.4 billion to 2.9 billion yuan for the first half of 2025, narrowing from a year earlier. In the same period last year, the company reported a net loss attributable to parent company shareholders of 3.701 billion yuan. The company also expects a net loss after deducting non-recurring items of 2.8 billion to 3.3 billion yuan for the first half. For the full year 2025, Gemdale's operating revenue was 35.858 billion yuan, down 52.41 percent year-on-year, and the net loss attributable to parent company shareholders was 13.281 billion yuan, mainly due to a decline in sales scale leading to a reduction in carry-over area, the gross margin of the real estate business falling to 7.93 percent, and significant asset impairment provisions. The annual report shows the company made asset impairment provisions of 7.031 billion yuan, including credit loss provisions of 4.506 billion yuan and inventory write-down provisions of 2.498 billion yuan. As of the end of 2025, interest-bearing debt stood at 67 billion yuan, 98.6 percent of which was bank borrowings, with an average financing cost of 3.92 percent and an asset-liability ratio of 64.25 percent.
Gemdale CorpCompany expects a net loss of 2.4-2.9 billion yuan in H1 2025, with declining revenue and margins, and significant asset impairment provisions.