Ryan Property: Continues to maintain a prudent capital strategy, and the seven Shanghai housing market policies have boosted market sentiment.

Questioning AI · Can Ryan Property’s Strategic Transformation Respond to Industry Adjustments?

On March 26, Ryan Property Limited (Ryan Property, 00272.HK) released its full-year 2025 results.

Financial data shows that Ryan Property’s total revenue for 2025 was approximately RMB 4.093 billion, a 50% decrease year-over-year; net loss attributable to shareholders was about RMB 1.782 billion, compared to a profit of RMB 180 million last year.

Ryan Property Vice Chairman Luo Baoyu stated at the earnings call that the significant net loss attributable to shareholders mainly resulted from non-cash investment property revaluation changes, including impairment of unsold inventory and provisions.

The financial report indicates that the fair value impairment of investment properties in 2025 was RMB 643 million; other gains and losses recorded a net loss of RMB 924 million.

Luo Baoyu also pointed out that the main reason for the sharp decline in total revenue in 2025 was the absence of new residential projects completed and delivered that year. Overall residential sales bookings were relatively low. However, rental income, including from associates and joint ventures, increased by 2%, which is considered a valuable result given the current marketing environment.

As of the end of the reporting period, Ryan Property’s net debt ratio was approximately 52%, unchanged from the previous year; total cash and bank deposits were about RMB 6.451 billion.

As of the close of Hong Kong stocks on March 26, Ryan Property was trading at HKD 0.6 per share.

Maintaining a Cautious Capital Strategy, the Largest Debt Pressure Has Passed

“Over the past year, real estate operators have felt the environment is challenging, with significant pressure, and consumer market growth is very slow. As developers, we feel that the financing market is very difficult, and liquidity needs close attention,” said Ryan Property Chairman Luo Kangrui at the earnings call. “Additionally, the market adjustment is not yet complete; it’s very slow, and the market remains weak. However, there is still demand for high-quality properties. Urban renewal and urban villages are the key areas for future development.”

Notably, when asked whether the real estate market has bottomed out, Luo Kangrui admitted, “That’s a difficult question.”

“Our judgment is that the industry’s adjustment will continue, and the industry needs to accelerate finding a business model that can adapt to the new situation,” Luo Kangrui predicted that China’s real estate industry will undergo a deep adjustment for another two to three years, and the bottoming trend will continue.

However, Ryan Property stated in its financial report that, under the ongoing challenges of geopolitical uncertainties, trade tensions, and low consumer confidence, after excluding the fair value changes and impairment provisions related to non-cash investment properties, the group recorded a core profit of about RMB 397 million in 2025.

In terms of revenue, Ryan Property’s recognized property sales amounted to approximately RMB 499 million in 2025, down 89% year-over-year; rental and related income (excluding associates and joint ventures) was about RMB 1.949 billion, down 21%.

During the period, Ryan Property’s total rental and related income was approximately RMB 3.625 billion, up 2%, maintaining growth for three consecutive years.

Luo Baoyu said that financially, the company continues to adopt a very cautious capital strategy.

“At the beginning of this year, we successfully issued USD 300 million in senior notes and simultaneously repurchased USD 295 million of senior notes due in 2026,” Luo said. “As of March 25, this group has repaid offshore debt totaling RMB 48.6 billion since 2021, demonstrating our firm commitment to fulfilling financial responsibilities.”

“Total liabilities of the company include about RMB 14.4 billion due in 2023, less than RMB 7 billion due in 2026, and relatively low debt maturities in 2027 and 2028. You can see that the debt pressure from the past few years is gradually easing, and we hope to maintain relatively low debt maturity levels in the coming years,” said Sun Xihai, CFO and Chief Investment Officer of Ryan Property. “We believe the greatest pressure has already passed.”

According to Ryan Property CEO Wang Ying, four light-asset projects are currently underway, with a total under-construction and planned scale of 1.22 million square meters of residential space and 291,000 square meters of commercial space. Wang Ying stated that light assets are not the ultimate goal; the company aims to continuously optimize its strategic positioning in a changing market environment and achieve high-quality development and growth.

“In the market, we aim to occupy a leading position in specific segments, with Shanghai as our domestic base, and further expand in the Greater Bay Area. We hope to gradually balance real estate development and asset management contributions to group revenue. In terms of strategic positioning, in response to industry shifts, we are transitioning from a comprehensive developer to a development + investment + asset management integrated model,” Wang Ying explained.

Shanghai’s Seven Policies Boost Market Sentiment

Regarding property sales, as of the end of the reporting period, Ryan Property’s contracted property sales were about RMB 7.916 billion, down 47% year-over-year, with residential sales accounting for 92%, and the rest from commercial units. The financial report shows that the average selling price of residential properties in 2025 was RMB 64,600 per square meter, compared to RMB 134,900 in 2024.

Ryan Property pointed out that the decline in contracted sales and average residential selling prices was mainly due to changes in project portfolio. The proportion of high-priced Shanghai projects in contracted sales decreased in 2025. “We plan to launch more projects in 2026 and beyond, mainly in Shanghai and Wuhan.”

Notably, Luo Kangrui mentioned during the earnings call: “After the Spring Festival, Shanghai introduced the ‘Shanghai Seven Policies,’ which temporarily revived transaction volume and boosted market sentiment. As the country’s economic hub, Shanghai continues to see net population inflow, and housing demand remains solid. Currently, prices for mid-to-high-end core assets are still firm, and buyer confidence is relatively stable. We expect core areas in Shanghai to stabilize first in 2026, while non-core areas will continue to see price-to-volume adjustments.”

Additionally, Luo added that in terms of urban differentiation, the trend will continue to diverge between core cities and third- and fourth-tier cities. First-tier and strong second-tier cities, benefiting from industry, population, and resource agglomeration, are likely to have a stronger market impact. However, most third- and fourth-tier cities will face significant inventory clearance pressures. Within the same city, prices in core areas will further diverge from non-core areas, with premium locations becoming more attractive for capital as safe havens. “Market segmentation is expected to be quite pronounced in the future, but that’s normal,” Luo said.

“China’s real estate market is still in a phase of transformation and adjustment. Last year, the national sales area and sales value continued to decline by 8.7% and 12.6%, respectively. In such a sluggish environment, homebuyers remain very cautious,” Luo Baoyu said at the earnings call. “But in first-tier cities, especially in Shanghai’s high-end residential sector, resilience has been evident, mainly driven by buyers’ increasing focus on high-quality products, services, and long-term asset value. Future growth will depend on high-quality urban renewal projects, aligning with the country’s shift toward sustainable high-quality development. Our group still has certain advantages in this process.”

Wang Ying also mentioned during the earnings call that the pre-sale permits for the Cuihu Tian Di Liuhe villas have been obtained, and all villas and townhouses sold out at an average price of RMB 310,000 per square meter. Remaining villas will be available for signing once pre-sale permits are approved. Additionally, after the launch of Wuhan Xintiandi’s latest residential project Yun Yi in November 2025, sales have been strong, with a clearance rate exceeding 72% by the end of 2025. The project is close to being fully sold out. By the end of 2025, the group had secured RMB 17.231 billion in sales recognized as revenue, to be delivered in 2026 and beyond, and reflected in financial performance.

Average Retail Property Occupancy Rate Reaches 94%

In the commercial segment, Ryan Property disclosed that the average occupancy rate of its retail property portfolio was 94%, “demonstrating the strength of Xintiandi community.” The overall sales of the portfolio increased by 15%, and foot traffic grew by 12%. However, due to changes in retail consumption patterns, renewal rents declined.

Financial data shows that in 2025, rental and related income was RMB 1.949 billion, down 21%, mainly because in November 2024, the group announced a restructuring of its stake in Chuangzhi Tiandi. From 2025 onward, rental income from Chuangzhi Tiandi was reclassified as rental income from associates, amounting to RMB 435 million.

In 2025, Ryan Property’s total rental and related income (including from properties in associates and joint ventures) was RMB 3.625 billion, up 2%, with 78% coming from properties in Shanghai.

Regarding occupancy rates, as of the end of the reporting period, the occupancy rate of the Shikumen block in Xintiandi, Shanghai, was 99%. The occupancy rates of Xintiandi Fashion, Ryan Plaza, Xintiandi Plaza, Enterprise 5, and Xintiandi Riverside, Panlong Xintiandi, Lingnan Xintiandi, and Chongqing Xintiandi all exceeded 95%.

Ryan Property noted that due to ongoing supply-demand imbalances, the office market remains under pressure, and uncertainties impact corporate confidence. Nonetheless, the company stated that occupancy rates in its mature office complexes in Shanghai remain stable, with an average occupancy rate of 93% at the end of the period.

Ryan Property CEO Zhang Bin said during the earnings call that in 2026, the company will continue to improve the fundamentals of its retail segment, including turnover and foot traffic, “to achieve sustained growth in these metrics and create win-win situations with tenants. We will use diverse innovative methods.” For the office segment, maintaining high occupancy remains a priority.

“Given the current market environment, we will continue to focus on liquidity management and financial security in the short term. Meanwhile, we will leverage our brand advantages, especially the newly announced Xintiandi community brand and the high-end residential brand Cuihu, to expand our future business,” Luo Baoyu said. “We will focus on Shanghai and other first-tier cities in the Greater Bay Area, continue to expand our footprint, and adopt a light-asset strategy to develop business and increase land reserves, cautiously seizing new market opportunities. In the long term, through these strategies, we aim for steady growth in property development, asset management, and management fee income.”