Not just impressive performance! China Jinmao's second growth curve gains momentum, is the transformation journey accelerating again?

How can China Jinmao’s second curve become a new growth engine?

Produced by|Zhongfang Network

Reviewed by|Li Xiaoyan

By 2025, the real estate industry is gradually stabilizing and recovering under the impetus of a policy “combination punch.” China Jinmao is strategically pivoting against the trend by focusing on core cities in the first and second tiers, delving into high-end improvement products, and optimizing its financial structure among a series of strategic measures, delivering an impressive report card for the conclusion of the 14th Five-Year Plan. Standing at the starting year of the 15th Five-Year Plan, China Jinmao has outlined a new blueprint—centering on product leadership and customer priority, fully committed to becoming an industry product leader and a top performer in transformation development, injecting new momentum into high-quality industry development.

In the context of the industry generally facing the dilemma of “increasing revenue without increasing profit,” China Jinmao’s 2025 performance demonstrates strong resilience. Data shows that the company achieved an annual revenue of 59.371 billion yuan, a year-on-year increase of 1%; attributable profit to owners reached 1.253 billion yuan, a year-on-year increase of 18%; net profit after deducting fair value losses on investment properties reached 1.363 billion yuan, a year-on-year increase of 2%. The sales side also performed outstandingly, with signed sales amounting to 113.5 billion yuan, a year-on-year increase of 16%, elevating the industry ranking to 8th place, setting a historic high.

Behind the profit growth lies the dual support of product strength and operational efficiency. Property development, as the core business, achieved an annual revenue of 49.476 billion yuan, accounting for 80% of total revenue, with a gross profit margin increasing by 2 percentage points year-on-year to 13%. The new “Golden Jade Full Hall” product line has taken effect, with 26 projects created in 2025, including “6 Houses, 7 Pus, 5 Mans, 8 Tang,” generating a strong market response. Among them, Xi’an Jinmao Puyi Oriental became the local sales champion, and the Shanghai Hongkou Ruihong New City Jinmao Puyuan project sold 99 units with an average price of 166,000 yuan/square meter within 26 minutes, showcasing the premium capability of high-end products.

Operational efficiency continues to optimize, with the “fast opening, fast return, fast clearing” operational strategy showing significant results. By 2025, the company’s average initial opening cycle for land acquisition was compressed to 5.2 months, with projects like Chongqing Puyin Jin Kai, Chengdu Dongcheng Jinmao Xiaotang, and Shanghai Runyun Jinmao Mansion achieving land acquisition and clearing within the same year. The average period for operating cash flow to return to positive was 10.4 months, with an average initial opening subscription fulfillment rate of 128% and a price fulfillment rate of 104%. Overall profit indicators were significantly optimized, with the average net profit margin increasing by 1.2 percentage points compared to the feasibility study. At the same time, the company promoted the “Striving Plan,” resolving 36.2% of existing issues in 2025, obtaining diverse returns, and releasing space for subsequent development.

Faced with the differentiated landscape of the industry, China Jinmao adheres to the strategy of “converging focus, precise investment,” directing all land investment towards core cities in the first and second tiers. In 2025, the company acquired a total of 21 projects, with total land payments of 57.7 billion yuan and equity land investment of 27.2 billion yuan, adding land reserves with a buildable area of 1.97 million square meters, all located in first and second tier cities. Among them, investments in the two strategically deepened cities of Beijing and Shanghai totaled 37.9 billion yuan, accounting for as much as 66%, focusing on core segments of high-energy cities and seizing regional development dividends.

The structure of property value has further optimized. By the end of the year, the company had an unsold property value of approximately 278.6 billion yuan, sufficient to support future operational needs. Of this, 67% is concentrated in economically developed regions such as North China and East China, and 89% is located in first and second tier cities, with the proportion of first-tier cities increasing by 8 percentage points to nearly 30% compared to the end of 2024, laying a solid foundation for sustained performance growth. For the pace of investment and development in 2026, China Jinmao’s Senior Vice President Zhang Hui clarified the “active but not aggressive” tone, aiming for a target of 30 billion yuan in equity investment while balancing development speed and quality safety.

In terms of revitalizing existing stock, China Jinmao is accelerating asset optimization and disposal. In 2025, the company completed the clearing of 47 projects, revitalizing 15 pieces of land and 26 bulk assets, achieving rapid capital recovery and efficient resource allocation through the dual drive of “optimizing increment and revitalizing stock.” Simultaneously, the company is promoting client satisfaction, financial health, sustainable growth, and organizational refinement as four major goals, transitioning service business from scale growth to qualitative growth, with property service revenue increasing by 24% year-on-year, alongside improvements in managed area and service quality.

Financial stability is the core confidence for enterprises to navigate cycles. By 2025, China Jinmao has achieved remarkable results in debt optimization and cost reduction, freeing up sufficient space for profit growth. At the end of the reporting period, the company’s interest-bearing bank loans and other borrowings totaled 129.012 billion yuan, with the proportion of development loans/operating loans increasing to approximately 50%, reaching 63.951 billion yuan, a significant increase from 22% in 2024, making the debt structure more reasonable. The proportion of foreign currency debt continues to compress, reducing from 29% in 2023 to 20% in 2025, thereby lowering exchange rate fluctuation risks.

The duration distribution has become more balanced, with debt maturing within one year accounting for 21.8%, within two years for 22.3%, within three to five years for 37.3%, and debt maturing in more than five years accounting for 18.6%, effectively alleviating short-term repayment pressure. At the same time, the company holds cash and cash equivalents of 28.403 billion yuan, with net debt at 96.623 billion yuan, resulting in a net debt-to-adjusted capital ratio of 69%, keeping financial indicators within a healthy range.

A significant reduction in financing costs has become a highlight of financial management in 2025. The annual new financing cost was 2.75%, down 67 basis points from 3.39% in 2024. Specifically, the cost of public market financing reached a new low, with four corporate bonds issued throughout the year totaling 7.3 billion yuan, with the lowest financing cost at only 2.3%; financing of existing assets continues to break through, obtaining low-cost loans secured by quality assets such as Beijing Kaicheng World Trade Center and Shanghai Jinmao Tower, with total operating loan withdrawals reaching 22.6 billion yuan for a term of 15 years, all at costs below 3%; new project development loans were fully drawn at low costs, with cumulative withdrawals of 31.4 billion yuan and an average cost of only 2.34%. By the end of the year, the company had over 70 billion yuan in unused bank credit, ensuring ample funding reserves for subsequent development.

At the investor performance meeting on March 24, China Jinmao Chairman Tao Tianhai clearly stated the development direction for the next five years: the macro economy and the real estate industry will still face pressure, but for prepared and capable companies, this is a key opportunity for strategic breakthroughs and curve overtaking. The company will implement the philosophy of product leadership and customer priority, fully committed to becoming a product leader and a top performer in transformation development, driving the enterprise towards higher quality and more distinctive directions.

On the product front, China Jinmao will accelerate the construction of product culture, focusing on elements such as technological innovation, lean construction, aesthetic arts, and ultimate supply chains, to create a leading real estate company with a technological core, ultimate product pursuit, and ultimate service experience. Relying on the “Golden Jade Full Hall” product line, the company will continue to upgrade product quality, strengthen core advantages in technological living and green health, meet the demand for consumer upgrades among residents, and strive to become a benchmark in the high-end improvement market.

In terms of transformation, the company will focus on the development of the second curve, strengthening boutique holding, quality services, and architectural technology business, aiming to create a leading brand that is “special and beautiful, exquisite and beautiful.” Architectural technology will become a moat for differentiated competition, with the goal of becoming a leader in niche segments; the holding business will continue to expand into a light asset model, with projects like Hangzhou Qinwang Water Street and North Bund Jinmao Center successfully opening, with commercial operation revenue increasing by 9% year-on-year; property services will solidify the base, with core property management revenue increasing by 23% year-on-year, and customer satisfaction remaining high.

In terms of industry landscape, Tao Tianhai pointed out that the industry is in a phase of bottoming out and repair, exhibiting characteristics of “industry bottoming, structural differentiation, and enterprise breakout.” There is strong latent demand in first and second tier core cities, and quality projects in third and fourth tier cities still have opportunities, with market stabilization and rebound expected. As the industry reshuffle accelerates, competition will shift from perfect competition to oligopoly competition, with surviving quality real estate companies likely to usher in a new growth cycle. With precise layouts, product advantages, and financial resilience, China Jinmao is expected to seize the opportunity in the industry restructuring and achieve the goal of “living well and living brilliantly.”

Despite the impressive performance in 2025, China Jinmao still needs to face industry challenges. The current downward inertia of the real estate industry has not dissipated, risks have not been completely cleared, and the pace of market demand recovery is uncertain, which could impact project liquidation and performance fulfillment. Furthermore, industry competition is becoming increasingly intense, with some enterprises accelerating transformation, raising higher demands on Jinmao’s product strength and operational efficiency. Additionally, external factors such as macroeconomic fluctuations and policy adjustments may also impact the company’s financing costs and project advancement.

However, China Jinmao is well-prepared to respond. By continuously optimizing the product system, delving into core cities, and strictly controlling financial risks, the company will solidify its development foundation. At the same time, leveraging the resource advantages of China Sinochem Group, enhancing collaboration in new building materials, promoting the construction of a business ecosystem, and improving overall competitiveness.

In 2025, China Jinmao achieved counter-cyclical growth amid the industry’s winter, completing a high-quality conclusion to the 14th Five-Year Plan with precise strategic layouts, strong product strength, and stable financial performance. Standing at the new starting point of the 15th Five-Year Plan, the company has clarified the core direction of product leadership and transformation development, setting a benchmark for industry transformation. In the future, with continuous improvement in product strength, ongoing optimization of the financial structure, and accelerated growth of the second curve, China Jinmao is expected to seize opportunities in industry restructuring, achieve strategic breakthroughs, and become a top performer in high-quality development in the real estate industry, contributing more to unleashing the future vitality of cities.