Operations and service businesses become the "ballast," and Longfor expects profits to resume growth starting in 2027.

China Web Finance, March 27 - Longfor Group today disclosed its performance for 2025. During the reporting period, Longfor Group’s operating revenue amounted to 97.31 billion yuan, with a profit attributable to owners of 1.02 billion yuan. After excluding the impact of fair value changes in investment properties and other derivative financial instruments, the core loss attributable to the company was 1.7 billion yuan.

At the earnings release conference held in the afternoon, Longfor Group’s Executive Director and CFO Zhao Yi responded to questions regarding “the first loss in core profits after equity.” He stated, “It is mainly affected by the overall environment. In recent years, the volume and price of the entire real estate development market have continued to decline, and the sales gross margin of the company’s development business has been significantly pressured. This pressure will be concentrated in the settlement periods of 2025 and 2026, which is a common issue faced by the entire industry.”

Zhao Yi noted that while the profitability of the development business is under pressure, the operational and service businesses cultivated by Longfor have played the role of a stabilizer and ballast during this period. According to the performance announcement, Longfor’s operational and service business revenue is expected to total 26.77 billion yuan in 2025, increasing its share of total revenue to 27.5%; it is projected to achieve a core profit after equity of 7.92 billion yuan for the year, with an overall gross margin exceeding 50% and a net margin of about 30%.

“In the future, these two business segments will maintain double-digit growth annually, continuing to provide the group with stabilizing and ballast effects. Longfor will gradually restore profits under the premise of financial safety and stability. The group’s low point will be in 2025 to 2026, and we expect to resume growth starting in 2027,” Zhao Yi stated.

(责任编辑：王治强 HF013)

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