"Stall"! "Building materials giant" Jinyu Group reports an annual loss of 3.6 billion yuan

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“Stalling”! “Building Materials Giant” Jinyu Group reports a yearly loss of 3.6 billion yuan | Financial Report Review

Source: China Real Estate News

Today, this state-owned enterprise with a 70-year history and assets exceeding 260 billion yuan is caught in a dual dilemma of “revenue decline and expanding losses.”

Reporter Xu Qian | Beijing Report

The trillion-level “building materials giant” Jinyu Group has delivered a disappointing annual performance report.

Financial data shows that in 2025, Jinyu Group achieved operating revenue of 91.11B yuan, a significant decrease of 17.7% year-on-year; net profit attributable to the parent company was -1.01B yuan, a sharp drop of 81.83% year-on-year; after excluding non-recurring gains and losses, net profit attributable to the parent was -3.59B yuan, down 25.5% year-on-year.

Jinyu Group stated that the core reason for the performance loss is that “both building materials and real estate businesses are in an industry downturn cycle.”

What is more worrying is the difference of 2.58B yuan between net profit attributable to the parent and net profit after non-recurring gains and losses, a gap close to the company’s total asset sales for the year. In 2025, non-recurring gains and losses for Jinyu Group reached 2B yuan, including gains from disposal of non-current assets of 11.5B yuan, an increase of 834 million yuan year-on-year. This indicates that without relying on “selling assets” to survive, the book losses would be much greater.

As a leading domestic cement industry player and a core real estate developer in Beijing, Jinyu Group was once a “white horse stock” favored by the capital market. Now, this state-owned enterprise with a 70-year history and assets over 260 billion yuan is caught in a “revenue decline and loss expansion” double dilemma.

Behind this, it is far from just cyclical fluctuations; a deeply rooted operational crisis is quietly surfacing.

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Demand declines, profits sharply compressed

Jinyu Group’s predecessor was the Beijing Municipal Bureau of Building Materials Industry, established in 1955. It is now the third-largest cement group in China and the largest integrated green building materials supplier in the Beijing-Tianjin-Hebei region.

Its core business is driven by “building materials + real estate” dual sectors, with cement and new building materials as the mainstay in the building materials sector, and real estate focusing on development and property investment. This “dual-wheel” model once brought the company substantial benefits during industry upturns, but now it has become a drag.

The real estate sector was the first to decline. Financial reports show that in 2025, the company’s main business revenue from real estate was 1.34B yuan, a sharp decrease of 64.88% year-on-year; total profit was -186 million yuan, down 1.7B yuan from profit, turning losses.

The company made provisions for various impairments totaling 79.58B yuan for the year, including 183 million yuan for accounts receivable impairment, 183 million yuan for credit impairment, 842 million yuan for inventory write-downs, and 673 million yuan for fixed asset impairments.

Among these, the impairment provisions for accounts receivable mainly involve construction engineering and furniture building materials, cement and concrete-related businesses, and real estate development.

More notably, the adjustment in the real estate industry is accelerating its impact on the building materials sector. Demand for building materials heavily depends on its own real estate projects and the Beijing-Tianjin-Hebei market. As new construction projects sharply decrease, demand for building materials drops significantly, squeezing profit margins.

Data shows that in 2025, Jinyu Group’s new green building materials sector achieved main business revenue of 8.97B yuan, a slight increase of 1.68%, but profit was only 218 million yuan. Cement sales totaled 73.32 million tons, down 2.85% year-on-year.

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Debt pressure, “turnaround” difficult

Jinyu Group has been in continuous loss for many years. In 2024, Jiang Yingwu, Party Secretary and Chairman of Jinyu Group, stated that they aimed to find variables in loss management, making turning losses into profits a top priority.

However, in 2024, the company’s net profit attributable to the parent was a loss of 555 million yuan, compared to a profit of 25.2628 million yuan in the same period of 2023, turning from profit to loss. After excluding non-recurring gains and losses, net profit has been negative since 2022, with a total four-year loss of 10.28B yuan.

What is noteworthy is that despite recording losses, Jinyu Group continues to acquire land. In the second half of 2024, the company consecutively purchased three plots at bottom prices in Beijing’s Shilihe, Fengtai Fenkew Garden, and Tongzhou Tuchao, totaling 3.36B yuan. In June 2025, it acquired another plot in Haidian District for 2.73M yuan. These moves show the company’s urgent attempt to reverse the situation through real estate sales.

Regarding land acquisition plans for 2025, management previously stated that the company would focus on cities with good economic recovery, net population inflow, and stabilized real estate markets, such as Beijing and Shanghai, choosing core prime locations for cautious investment.

By the end of 2025, Jinyu Group’s land reserves totaled 5.4637 million square meters of rights, with a total of 2.725 million square meters of high-end office buildings, commercial properties, and industrial parks, with an overall average leasing rate of 75%.

Meanwhile, the company’s short-term debt repayment pressure is enormous. By the end of 2025, short-term borrowings reached 25.68 billion yuan, with non-current liabilities due within one year of 25.25 billion yuan, while cash on hand was only 16.22 billion yuan, leaving a funding gap of 34.7 billion yuan.

For the real estate business in 2026, Jinyu Group stated in its annual report that it will shift toward “refined development, strong operation, and excellent service,” emphasizing the importance of improving housing and affordable housing, deeply participating in urban renewal, seizing the “Three Major Projects” opportunities, and exploring new development paths in real estate.

Goldman Sachs predicts that starting from 2025, Jinyu Group will record continuous operational losses for three years, but if the industry tightens control over unapproved capacity, cement prices are expected to stabilize and rebound; profits from real estate development are also expected to stabilize in 2026 and beyond.

Despite the performance losses, Jinyu Group announced plans to distribute a cash dividend of 0.5 yuan per 10 shares to all shareholders. Since listing in 2011, the company has paid a total cash dividend of 7.83B yuan.

As of the close on April 2, 2026, Jinyu Group’s A-shares closed at 1.76 yuan per share, down 1.68% for the day, with a total market value shrunk to 18.79 billion yuan. The dynamic P/E ratio is -18.62, and the price-to-book ratio is only 0.46, with the stock price falling below book value, reflecting investors’ pessimistic outlook on the company’s prospects.