China’s real estate developer Huaxia Happiness Group Co., Ltd. (referred to as “Huaxia Happiness”) recently released its 2024 annual report and the first-quarter financial report for 2025. The reports highlighted the challenges the company faced with a decline in operating income and exacerbated net profit losses in 2024 and the first quarter of 2025, reflecting the difficulties in business operations amid the continued downturn in the real estate industry.
According to the annual report, in 2024, Huaxia Happiness achieved operating income of 23.765 billion yuan, a year-on-year decrease of 33.81%. The net profit attributable to shareholders of the listed company was a loss of 4.817 billion yuan, indicating that the company was unable to reverse its downward profit trend over the past year. The decline in revenue was mainly attributed to various factors such as the sluggish real estate market, slowed project sales, and industry policy adjustments.
In the first quarter of 2025, the operating condition of Huaxia Happiness did not show signs of improvement. The financial report showed that the company’s operating income was 1.177 billion yuan, a 11.73% decrease compared to the same period last year. The net profit attributable to shareholders of the listed company was a loss of 2.701 billion yuan, further expanding from the same period last year. The report pointed out that weak market demand and continued tightening of financing environment had put significant pressure on the company’s operations.
In recent years, the Chinese real estate industry has faced multiple challenges such as high leverage, shrinking demand, and policy regulations. Huaxia Happiness, as a real estate enterprise with industrial new city development at its core business, has been under scrutiny due to debt crisis. Although the company has alleviated some pressure through debt restructuring and other measures, the performance in 2024 and early 2025 indicates that the road to recovery and profitability will take time.
In its report, Huaxia Happiness stated that it will continue to optimize its asset structure, expedite the clearance of existing projects, and actively explore diversified business models to adapt to market changes. The company’s management emphasized a focus on industrial new city projects in core areas and improving operational efficiency through cost reduction.
Analysts pointed out that the performance of Huaxia Happiness reflects the current general plight of the real estate industry. Companies will still need to seek breakthroughs in financial chain management and business transformation in the future.
The subsequent performance of Huaxia Happiness will continue to be closely watched by the market, and whether it can break through in adversity will test the company’s strategic adjustments and execution capabilities.