Xinda Real Estate's revenue in 2025 halves to 4.58B yuan, with a net loss of 7.86B yuan

Why has the improvement in cash flow failed to turn around huge net losses?

Blue Whale News, April 1 — On April 1, Cinda Real Estate released its 2025 annual performance report. The data shows that the company achieved operating revenue of 4.58B yuan in 2025, a decrease of 42.90% year-on-year; net profit attributable to shareholders of the listed company was a loss of approximately 7.88B yuan, further widening compared to the same period last year.

The main reason for the revenue decline is the significant reduction in the scale of concentrated delivery of real estate development projects, coupled with overall industry sales pressure, leading to a sharp narrowing of the revenue recognition base.

Quarterly, the fourth quarter’s single-quarter operating revenue was 1.89B yuan, accounting for 41.3% of the annual total, but the net profit attributable to the parent was -2.57B yuan, and the net profit after deducting non-recurring items was -2.58B yuan, with the loss pressure further concentrated at the end of the year.

In 2025, the company’s gross profit margin decreased from 16.40% the previous year to 4.22%, a year-on-year decline of 12.18 percentage points; net profit margin worsened from -9.76% to -171.77%. Notably, the net profit after deducting non-recurring items was -7.86B yuan, only 18.8486 million yuan different from the net profit attributable to the parent of -7.88B yuan.

In 2025, the net cash flow from operating activities was 511 million yuan, a significant improvement from -1.14B yuan in 2024. The annual report explains that this was mainly due to an increase in cash received from sales of real estate projects during the period compared to the same period last year.

As of the end of 2025, the company’s asset-liability ratio was 75.15%, up 9.08 percentage points from the end of the previous year; short-term loans at the end of the period totaled 751 million yuan, and total long-term debt was 10.77B yuan, maintaining a high debt level. Financial expenses amounted to 1.57B yuan, an increase of 16.00% year-on-year, with interest burdens intensifying.

From a business segment perspective, residential business revenue was 2.8B yuan, accounting for 79.68% of the main business revenue; commercial business revenue was 381 million yuan, accounting for 10.86%.

Regionally, Hefei’s market achieved revenue of 896 million yuan, accounting for about 25.5% of the company’s total revenue, making it the largest regional market; Chongqing, Wuhu, and Wuxi achieved revenues of 649 million yuan, 515 million yuan, and 345 million yuan respectively; the combined share of these four regions reached 67.6%, indicating a significant increase in regional concentration. In comparison, Shanghai’s market revenue was only 25 million yuan, and other cities in the Yangtze River Delta outside Hefei contributed minimally.

R&D investment remained low. The full-year R&D expenditure was 2.7648 million yuan, a decrease of 30.58% year-on-year, accounting for only 0.06% of operating revenue.