Lower Target to 8 Billion? Binjiang Group Qi Jinxing: Reducing Debt Ratio More Important Than Pursuing Scale

Listing | China Visitor Network

Review | Li Xiaoyan

At a critical stage of deep adjustment and restructuring in the real estate industry, Binjiang Group has delivered an impressive 2025 performance sheet, demonstrating industry resilience with six consecutive years of trillion-yuan scale and maintaining its position as the only private real estate enterprise in the TOP 10 camp with solid strength. Meanwhile, the phased reduction of holdings by the controlling shareholder’s concerted action group has attracted market attention, but their compliant operations contrast sharply with the company’s sound fundamentals. Through data and strategic deployment, it’s clear that Binjiang Group is steadily strengthening itself and actively preparing for future battles, carving out an independent development path amid industry upheaval, showcasing the cyclical resilience of private real estate firms.

In 2025, Binjiang Group successfully navigated the industry adjustment cycle, achieving countercyclical growth in performance and comprehensive improvement in core operational indicators, laying a solid foundation for stable development. On the performance front, the company’s revenue and profit both showed significant growth. In the first three quarters of 2025, Binjiang Group achieved operating income of 65.514 billion yuan, a substantial year-over-year increase of 60.64%; net profit attributable to the parent was 2.395 billion yuan, up 46.60% year-over-year, with profits approaching the full-year 2024 level, and net profit excluding non-recurring gains and losses grew over 60%, indicating continuous improvement in profitability quality. The full-year operational data further confirms industry resilience: total sales reached 101.7 billion yuan, maintaining the trillion-yuan mark for six consecutive years, ranking tenth among nationwide real estate companies, and being the only private enterprise in the TOP 10 camp, highlighting the leading competitiveness of private firms.

Delivery capability directly reflects a real estate company’s core strength. Binjiang Group has always adhered to the bottom line of “guaranteed delivery.” In 2025, the company delivered 43 projects throughout the year, with over 25,000 households delivered and nearly 3.84 million square meters of area, maintaining industry-leading scale and quality. Practical delivery efforts have fulfilled customer commitments and strengthened brand reputation.

Land acquisition strategy demonstrates regional deep cultivation and prudent layout wisdom. In 2025, Binjiang Group spent a total of 48.7 billion yuan on land acquisitions, with over 33% in Hangzhou. Among the 16 land parcels in Hangzhou that set new price records, six broke previous records, and three parcels exceeding 5 billion yuan were acquired, further consolidating regional advantages. An additional 26 land parcels were acquired, 23 of which are in Hangzhou, with a total new value of 85 billion yuan, providing ample reserves for future development.

Continuous financial optimization is the core confidence for Binjiang Group to withstand industry cycles. In 2025, the company’s average financing cost dropped to 3.0%, down 0.4 percentage points from the previous year, reaching industry-leading levels comparable to top state-owned enterprises; interest-bearing liabilities decreased from 30.5 billion yuan to 26.2 billion yuan, with year-end debt and cash balances remaining stable, significantly improving cash flow safety margins. Compared to the industry’s common debt pressures, Binjiang Group continues to optimize its debt structure, increasing the proportion of medium- and long-term liabilities, and maintaining financial security—distinguishing itself among private firms and solidifying the foundation for sustained performance.

Recently, Binjiang Group disclosed the results of the phased reduction of holdings by the controlling shareholder’s concerted action group, attracting market attention to capital moves by private real estate companies. Based on official announcements and industry logic, this reduction is compliant and orderly, posing no substantial impact on company operations or governance, and is mainly a rational capital allocation.

The pace of reduction is tight and the approach clear, demonstrating compliance and planning. From mid-December 2025 to early March 2026, three private equity products managed by Binjiang Holdings, the concerted action group, used centralized bidding and block trades to cumulatively reduce their holdings by 87.5723 million shares, accounting for 2.81% of total shares, realizing cash proceeds of about 833 million yuan—almost reaching the upper limit of the previously disclosed reduction plan. The average price for centralized bidding reductions remained around 10 yuan per share, with block trades slightly lower; these reductions were carried out in batches and through different channels, complying with regulatory requirements and ensuring market liquidity stability.

The announcement explicitly states that this reduction does not trigger a change in control and will not cause substantial impact on daily operations or governance, with no obvious flaws in compliance. This reduction is not directly operated by the actual controller Qi Jinxing but is a capital reallocation by the controlling shareholder’s concerted action group, reflecting cautious capital considerations by private real estate shareholders and a rational judgment on long-term value—moderately realizing gains amid steady company performance, balancing long-term investment with short-term liquidity needs.

Compared to some other real estate shareholders’ irrational reductions, Binjiang Group’s actions are more aligned with rational asset management. The company’s performance continues to recover, operations return to normal, and its trillion-yuan sales scale and stable financial system form a solid moat. The shareholder reduction does not alter the company’s core value or development logic but highlights the compliance awareness and risk control capabilities of private real estate shareholders in capital operations.

Binjiang Group’s steady development is inseparable from the strategic layout and cycle management of its actual controller, Qi Jinxing, who has been deeply involved in the real estate industry for decades. He consistently adheres to a prudent management philosophy, avoiding aggressive expansion and high leverage traps, leading the company through multiple market fluctuations and forming a unique operational philosophy and strategic rhythm.

Strategic adjustments are precisely aligned with industry cycles, demonstrating pragmatic and cautious wisdom. During the high phase of the industry in 2024, Qi Jinxing proposed “active lying down, crawling forward,” actively controlling scale growth to preserve strength; in 2025, during the downturn, he continued the “crawling forward” strategy, slowing land acquisitions, optimizing structure, and prioritizing delivery and cash flow safety to solidify the foundation. Entering 2026, he clearly stated that the company has shifted from “crawling forward” to “standing up and preparing to charge,” showing confidence in industry recovery and proactive planning.

Target setting is rational and pragmatic, emphasizing high-quality development. In 2026, Binjiang Group lowered its sales target to 80 billion yuan, not out of pessimism but to adapt to the industry’s extended development cycle and actively adjust operational rhythm. Qi Jinxing explained, “Longer construction cycles mean funds can only roll over once a year instead of twice,” and even with the scaledown, the 80 billion yuan target still secures over 1% market share nationwide, maintaining a leading position. The company also plans to reduce interest-bearing liabilities further from 26.2 billion yuan by over 10%, to around 23 billion yuan, with an average financing rate further lowered to below 2.9%, continuously optimizing its financial structure.

The management philosophy emphasizes flexibility and long-termism. Qi Jinxing’s concept of “fight hard when possible, retreat quickly when not” reflects precise market opportunity grasp and risk awareness—core to Binjiang Group’s ability to maintain profitability and cycle through downturns. In land acquisition, the company adheres to the “Focus on Hangzhou, Deepen Zhejiang, Radiate East China” strategy, following the “622” investment ratio—60% in Hangzhou, 20% in the province, and 20% outside (mainly Shanghai)—balancing regional deep cultivation and nationwide expansion for steady growth.

From an industry perspective, Binjiang Group’s development model offers important insights amid the current deep industry adjustment. On one hand, its six-year streak of trillion-yuan sales and top 10 ranking proves that private real estate firms still possess strong survival and growth capabilities amid industry restructuring; on the other hand, its sound financials, reliable delivery, and standardized governance set a benchmark for high-quality private enterprise development.

Currently, policies supporting reasonable housing demand and promoting industry stability continue to be released. Binjiang Group is well-prepared for “preparing for the charge,” awaiting favorable industry policies and market confidence to rally. With industry stabilization, the company’s solid financial foundation, regional deep cultivation, product reputation, and strategic resolve position it well to seize market recovery opportunities and achieve steady progress.

The recent phased reduction by the controlling shareholder does not alter Binjiang Group’s core value or growth trajectory. Its high-performance results, sound finances, and governance, along with Qi Jinxing’s clear strategic deployment, provide a strong foundation for long-term development. In the context of industry restructuring, Binjiang Group will continue to operate prudently, focus on product quality, innovate and upgrade, and write a new chapter of progress for private real estate firms in high-quality development.

For 2026, Binjiang Group is a year of “building strength and embarking on a new journey.” From “crawling forward” to “preparing to charge,” and from a trillion-yuan scale to a rational target of 80 billion yuan, the company remains committed to prudent management and steady development. As the industry environment gradually improves, Binjiang Group is expected to leverage its core competitiveness, cycle through downturns, and become a model of stable growth among private real estate companies, contributing to industry recovery and high-quality development.