In the first half of this year, the performance of listed real estate companies in China continued to be sluggish. According to statistical data, the net profit of over a hundred listed real estate companies decreased by 80% year-on-year.
According to monitoring data from the China Index Research Institute, in the first half of the year, the average operating income of 105 A-share and H-share listed real estate companies (excluding defaulting companies) was 11.591 billion yuan (RMB, the same below), a decrease of 13.00% year-on-year; the average net profit was 145 million yuan, a decrease of 82.05% year-on-year.
Furthermore, according to Wind data, in the first half of the year, among the 150 listed real estate companies on A-shares and H-shares, only 44 companies (about 30%) achieved year-on-year growth in operating income, while around 70% saw a decrease; in terms of net profit attributable to the parent company, 29 companies (about 20%) achieved year-on-year growth, while the remaining companies all experienced decline.
A review by “The Economic Daily” of the aforementioned 150 listed real estate companies revealed that 72 companies experienced a year-on-year decline in operating income, and 87 companies saw a year-on-year decrease in net profit. In addition, a total of 50 companies incurred losses, with 24 of them experiencing losses for the first time since the outbreak of the pandemic.
Compared with the same period last year, around 70% of real estate companies saw a decrease in revenue in the first half of this year. In terms of net profit attributable to the parent company, 29 companies including China Aoyuan achieved growth in the first half of the year, while the rest experienced a decrease.
Tianfeng Securities compiled performance data for 113 A-share listed real estate companies in the first half of the year, including 7 large, 28 medium, and 78 small real estate enterprises. Together, they realized a total operating income of 880 billion yuan, a 20.62% year-on-year decline. The year-on-year growth rates in operating income for large, medium, and small real estate enterprises were -13.3%, -24.10%, and -25.85% respectively. The total net profit attributable to the parent company amounted to a loss of 35.2 billion yuan, a 291.72% decrease year-on-year, with the year-on-year growth rates for large and medium enterprises being -98.96% and -78.94% respectively, while small enterprises saw a 60.61% increase in their losses.
Tianfeng Securities stated in its research report that the decline in operating income and profit in the real estate industry was mainly due to overall weak sales, coupled with a decline in property prices, leading to a decrease in realized profits and inventory net value. In the short term, the performance pressure on real estate companies may continue for some time.