In the first half of 2025, the revenues of 50 listed property companies in China decreased by 15%, with a net loss amounting to 90.2 billion yuan. What’s even more concerning is that the overall net loss has persisted for four consecutive years.
As each listed property company started releasing their semi-annual reports for this year, the operational data of these companies has attracted attention. According to a report by Sina Finance Market Information on September 28, 2025, during the first half of 2025, the 50 typical listed property companies collectively achieved operating income of 1.2868 trillion yuan (RMB), representing a 15% year-on-year decrease. The overall gross profit for the first half of the year was 141.4 billion yuan, down by 9% compared to the same period last year. The net loss reached 90.2 billion yuan, with the attributable net loss being 95.4 billion yuan.
The net profit of listed property companies first showed significant losses in 2022, followed by a further expansion of net losses to 276.2 billion yuan in 2023 and 339.7 billion yuan in 2024. By the first half of 2025, the industry has seen four consecutive years of net losses. Additionally, the gross profit margin for the typical listed property companies in the industry in the first half of 2025 was 10.87%; the net profit margin was -7.45%, indicating a loss-making situation; and the attributable net profit margin was -7.9%.
Furthermore, looking at the semi-annual data disclosed by typical property companies for the first half of 2025, the total inventory carrying value amounted to 8.14 trillion yuan, a 4.6% decrease from the end of 2024. Moreover, the debt of property companies remains high, with some companies facing the risk of default. As of mid-2025, the total interest-bearing debt of the 50 listed property companies was 5.1816 trillion yuan. Among them, the state-owned property companies had almost the same total interest-bearing debt as at the beginning of the period, while the debt of state-owned enterprises increased by 1.8%, and that of mixed-ownership and private property companies decreased by 3.23% and 1.58%, respectively. Among these debts, the pressure for short-term debt repayment is still increasing.
The average net debt ratio of the 50 property companies is 108.71%, an increase of 4.87 percentage points from the beginning of the period. Specifically, the net debt ratio of state-owned enterprises is 54.24%; that of state-owned enterprises and mixed-ownership enterprises is 90.26% and 107.69%, representing increases of 5.28 and 2.04 percentage points from the beginning of the period. Meanwhile, the net debt ratio of private property companies further increased by 40.77 percentage points to 269.03%. With a long-term high debt ratio and significant pressures on financing and sales, private property companies are still struggling to reduce short-term debt repayment pressures. At the same time, the actual liquidity risks of these companies will be more significant. Some companies have not disclosed presale regulatory funds in their interim reports. If this regulated capital is taken into account, the unrestricted cash held by companies will be further reduced.
By mid-2025, 80% of the property companies among the 50 have seen a decrease in their cash holdings compared to the beginning of the period, and 56% of the companies have continued to worsen their short-term debt-to-unrestricted cash ratio. If trade payables, joint ventures, non-controlling shareholders’ debt, and other operating debts are taken into account, the actual short-term debt repayment pressure of the 50 property companies in mid-2025 will be even greater.
The report indicates that during the first half of 2025, the semi-annual reports of listed property companies showed a decline in profitability, high debt burdens, and inventory drag are still the harsh realities faced by these companies.
Typical listed property companies refer to real estate enterprises that have publicly issued shares on stock exchanges and are listed for trading, primarily engaged in real estate development, sales, and property management, and possess strong financial strength and market competitiveness.