Baolong Real Estate Holdings Limited (hereinafter referred to as “Baolong Real Estate”) announced on March 23 that due to the challenging operating environment in the Chinese real estate industry, the company expects its loss for 2025 to increase to between 6.6 billion yuan to 7 billion yuan.
The company issued a profit warning in an insider information announcement on March 23. The announcement stated that the preliminary assessment indicates, “the anticipated annual loss for the group for the year ending December 31, 2025 would be between approximately 660 million yuan to 700 million yuan (the annual loss for the year ending December 31, 2024 was approximately 549.8 million yuan), and the core loss attributable to owners of the company would be between approximately 340 million yuan to 380 million yuan (the core loss attributable to owners of the company for the year ending December 31, 2024 was approximately 308.4 million yuan).” This shows an increase in losses compared to 2024.
The announcement attributed the expanded losses to, “(1) the continued impact of the challenging operating environment in the real estate industry, resulting in (i) impairment provisions on property projects based on prudence; (ii) impairment of the fair value of investment properties; and (2) a decrease in the performance of jointly controlled entities and associates.”
Baolong Real Estate Holdings Limited, headquartered in Shanghai, has been focusing on developing and operating comprehensive commercial real estate projects since 2003. The company was listed on the main board of the Hong Kong Stock Exchange in 2009. From 2006 to 2022, the enterprise was selected as one of China’s top 100 real estate companies for 17 consecutive years.
Despite being a company that was once ranked among the top real estate companies in China, Baolong has recently faced losses due to the prolonged downturn in the Chinese real estate industry.
Chinese real estate enterprises rely heavily on borrowing for expansion. Once the market declines and sales slow down, and they are unable to obtain new loans from banks, companies may face severe financial difficulties and significant debt pressure. For Baolong Real Estate, debt restructuring is one of its crucial tasks at the current stage.
In a positive development, on January 27 of this year, the company announced in a voluntary disclosure that, “the restructuring plan of six domestic corporate bonds and asset-backed special plans issued by its subsidiary, Shanghai Baolong Industrial Development (Group) Co., Ltd., has been reviewed and approved by relevant bondholders’ meetings, and adjustments will be made to the repayment arrangements of the bonds.” The total scale of these 6 bonds is approximately 4.336 billion yuan.
Furthermore, on December 22, 2025, Baolong Real Estate announced that as of the announcement date, the company’s overseas debt restructuring plan has received support from over 85% of relevant creditors, and a creditors’ meeting is scheduled to be held on March 19, 2026, at the High Court in Hong Kong.
Additionally, Baolong Real Estate has been selling equity to raise funds. On January 27, they released a proposal to sell 25% of Baolong Commercial’s shares to an affiliate for 361 million Hong Kong dollars to improve liquidity within the group and support restructuring and daily operations.
Public data shows that as of June 30, 2025, Baolong Real Estate’s total liabilities amounted to 134.244 billion yuan.