China Overseas Hongyang Group: Revenue in 2025 decreased by 19.7% year-on-year, roughly achieving the sales target set at the beginning of the year.

On March 23, China Overseas HongYong Group (00081.HK) released its 2025 annual performance report. During the period, the company achieved an operating revenue of 36.874 billion yuan, down 19.7% year-on-year, mainly due to the ongoing consolidation of the real estate market and the group’s proactive reduction of investment scale in recent years in response to market conditions.

In terms of profit, the company recorded a gross profit of 3.201 billion yuan, with a gross profit margin of 8.7%. The profit attributable to owners was 305 million yuan, a decrease of 68.1% year-on-year. Basic earnings per share were 8.6 cents.

The announcement states that in 2025, the company largely achieved its initial sales target. During the period, contracted sales amounted to 32.185 billion yuan, a decrease of 19.8% year-on-year; contracted sales area was 2.9379 million square meters, down 15.7%; and the attributable contracted sales were 27.967 billion yuan, down 18.4%.

Regarding land reserves, China Overseas HongYong Group acquired 22 projects during the period, with a total new floor area of 2.9288 million square meters and a total land cost of 11.708 billion yuan. The new attributable floor area was 2.6221 million square meters, with attributable land costs of 10.225 billion yuan.

As of the end of 2025, the company’s land reserves totaled 11.9923 million square meters, a 13.0% decrease from 13.7781 million square meters at the end of 2024. Of this, 994,500 square meters are held by joint ventures and associates, while the group’s attributable floor area is 10.2551 million square meters, an 11.52% decrease from 11.5907 million square meters in the same period last year.

At the end of the period, the total number of employees decreased from 2,429 to 2,218, a reduction of 8.7%. Management stated that this was mainly due to organizational restructuring and personnel adjustments to meet different development stage requirements. According to Sina Finance, over the past four years, China Overseas HongYong Group has reduced its staff by nearly 40% (36.72%), with 3,505 employees at the end of 2021.

Chairman Zhuang Yong of the company’s board of directors stated in the announcement that in 2025, China’s real estate market showed signs of bottoming out and stabilizing, with the overall decline in the real estate industry narrowing throughout the year. Regarding sales, Zhuang Yong explained that the overall real estate market is characterized by stable transaction volume, falling prices, and a shift towards price-driven volume to seek a new balance.

Zhuang Yong also mentioned that the company is the only nationwide real estate enterprise focusing on second- and strong third-tier cities. Currently, competition in the second- and third-tier markets has decreased, but the upgrading demand from customers for quality housing presents structural opportunities for the market.