Zhongrong Real Estate expects losses of approximately 17-18 billion yuan in 2025

Viewpoint Network News: On March 20, Zhengrong Real Estate Group Co., Ltd. issued a profit warning announcement.

According to the announcement, Zhengrong Real Estate expects the net loss attributable to the parent company’s owners for 2025 to be approximately RMB 17 billion to 18 billion, compared to about RMB 6.83 billion in 2024. Excluding non-cash items such as impairment losses, the core loss is estimated to be around RMB 5 billion to 6 billion, compared to about RMB 3.178 billion in 2024.

The announcement pointed out that the main reasons for the increased loss are the decrease in gross profit and the increase in impairment provisions in 2025 compared to 2024. Specifically, the net loss attributable to the parent company’s owners mainly stems from industry demand decline leading to lower project prices and gross margins, as well as increased impairment provisions related to development properties, properties held for sale, completed properties, other assets, and financial assets. Additionally, increased uncapitalized financing interest and a decline in the fair value of investment properties are also significant sources of loss.

Zhengrong Real Estate stated that the data in this announcement are preliminary estimates not audited and may be further adjusted or revised. The company expects to publish its full-year 2025 performance report on March 27, 2026.

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