As of January 20th, among the listed real estate companies in China, 27 companies have issued performance forecasts for 2025. The forecasts show that only one real estate company is profitable, while the rest of the real estate enterprises may incur losses totaling over 60 billion yuan.
According to data from WIND, a mainland data service provider, as of January 20th, performance forecasts or interim reports from 27 real estate companies for 2025 indicate that 26 of them have incurred losses, with total losses ranging between 47.546 billion yuan to 62.464 billion yuan.
A report on January 20th by “The First Financial” stated that among them, the state-owned enterprise Poly Development Holdings Group Co., Ltd. is expected to achieve a net profit attributable to shareholders of the listed company of around 1.026 billion yuan in 2025, a decrease of 79.49% compared to the previous period. Although the company maintains profitability, its net profit has decreased by 80%.
Among the 26 loss-making real estate companies, Huaxia Happiness and Greenland Holdings have incurred losses exceeding 10 billion yuan. Huaxia Happiness is expected to incur losses ranging from 16 billion to 24 billion yuan in 2025, with a net asset loss attributable to shareholders of the listed company between 10 billion and 15 billion yuan. Greenland Holdings anticipates a net profit loss ranging from 19 billion to 16 billion yuan; after deducting non-recurring gains and losses, the loss is estimated to be between 18.95 billion and 15.9 billion yuan. The company has incurred consecutive losses from 2023 to 2025, with a total loss exceeding 40 billion yuan.
Additionally, among those with losses exceeding 2 billion yuan are Bright Real Estate (26 billion to 37 billion yuan) and Beichen Real Estate (26.8 billion to 33.1 billion yuan). Real estate companies with losses exceeding 1 billion yuan include Jintou City Development, Beijing Investment Development, and Evergrande Real Estate.
As for the reasons for the losses, many real estate companies have cited similar factors, mainly due to insufficient market demand, leading to a decrease in project scale turnover and a decline in revenue from the construction industry; a reduction in the capitalization of project interest, leading to increased financial expenses, among others.
“The First Financial” believes that in recent years, real estate sales have experienced continuous negative growth, with turnover income continuing to decline, along with ongoing market adjustments. Real estate companies have lowered prices to boost sales, resulting in a continuous decline in gross profit margins, putting pressure on the company’s profits and inventory.
Regarding the future development of Chinese real estate companies, a report quoted Liu Shui, Director of Enterprise Research at the China Center for International Economic Exchanges, who analyzed that in the short term, some real estate companies still face significant challenges in achieving profitability. Firstly, the scale of residential property sales is still decreasing, with a 12.6% year-on-year decrease in the national sales volume of new residential properties in 2025. Secondly, property prices are under downward pressure, as per data from China’s National Bureau of Statistics, showing an overall decline in the selling prices of residential properties in 70 large and medium-sized cities in December 2025 compared to the previous month, with a widening year-on-year decrease. Moreover, real estate economic activities remain sluggish, with the real estate development climate index continuing to decline from March 2025 to December 2025, reaching 91.45 by the end of the year.
The report mentioned that for real estate companies, a continued substantial loss may negatively impact the company’s cash flow, credit performance, and balance sheet. If the fundamentals worsen persistently, it may lead to delisting, causing real estate companies to face a situation of insolvency.