Rongxin China: Loss of 12.48 billion yuan in 2025, market confidence recovery still requires time

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On March 31, Rongxin China (03301.HK) released its full-year 2025 performance announcement, during which the company achieved operating revenue of 7.11B yuan, a year-on-year decrease of 76.13%; gross loss of 4.72B yuan, compared to a gross profit of 330 million yuan in the same period last year.

During the period, Rongxin China reported a loss of 12.48B yuan, an 8% increase from 11.56B yuan last year; net loss attributable to the company’s owners was 9.96B yuan, a decrease of 17.03% from 12B yuan last year.

In 2025, Rongxin China achieved sales of 3.78B yuan, a year-on-year decline of approximately 50.96%; the total contracted construction area was about 334.8k square meters, with an average contract price of 11,281 yuan per square meter. As of the end of 2025, the company owned a total of 206 projects nationwide, with total land reserves of approximately 16.3094 million square meters, of which 85.21% were in first- and second-tier cities.

At the end of the period, Rongxin China’s interest-bearing debt balance was 334.8k yuan. The announcement states that the company is actively managing its debt, and so far, has completed restructuring of domestic corporate bonds and has appointed Haitong International Capital Limited as the financial advisor for offshore debt management, conducting related preliminary work.

Rongxin China states that in 2025, the overall market remains in a low operation state, with industry data showing sluggish performance. Although policy support signals continue to be released, market confidence recovery still requires time. Core indicators such as real estate development investment, sales, and funding continue to decline, reflecting the current structural adjustment pressures faced by the industry.

The announcement states that with the implementation of a series of macroeconomic and real estate support policies, the market has experienced a phased recovery, but recent policy effects have weakened somewhat, and the market is still some distance from a full “bottoming out.” Currently, real estate market sales recovery still faces some challenges, and the funding pressure on real estate companies has not been fundamentally alleviated.