New City Holdings 2025 Annual Report Analysis: Revenue decreased by 40.44% to 53.012 billion yuan; non-recurring net profit per share down 30.77% to 0.27 yuan/share

Operating Revenue: Sharp Scale Contraction, Business Segments Grow Against the Trend

During the reporting period, Xincheng Holdings achieved operating revenue of RMB 53.012 billion, a year-over-year decrease of 40.44%, mainly due to a reduction in real estate delivery revenue. By business segment, real estate development and sales generated revenue of RMB 39.004 billion, a significant year-over-year drop of 48.71%, which is the core factor behind the overall decline in revenue; property leasing and management performed strongly, achieving revenue of RMB 13.036 billion, a year-over-year increase of 8.37%, becoming a steady support for the company’s performance.

In terms of regional performance, Fujian Province’s operating revenue increased significantly year over year by 89.22%, and Qinghai Province’s increased by 91.94%, making them among the few regions that achieved growth; meanwhile, year-over-year revenue declines in Henan Province, Hunan Province, Guangdong Province, Zhejiang Province, and others all exceeded 70%, showing a marked divergence among regions.

Net Profit: Profitability Under Pressure as Scale Contracts; Non-Recurring Gains Contribute More

Net profit attributable to shareholders of listed companies was RMB 680 million, a year-over-year decline of 9.61%. The decline was significantly smaller than that of operating revenue, mainly due to an improvement in gross margin. During the reporting period, the company’s overall gross margin was 27.42%, up 5.21 percentage points from the prior year. Specifically, the gross margin for real estate development and sales was 13.03%, up 1.31 percentage points year over year; the gross margin for property leasing and management was 69.77%, down slightly by 0.40 percentage points year over year.

Net profit attributable to shareholders of listed companies after deducting non-recurring gains and losses was RMB 614 million, down 29.34% year over year. The decline exceeded that of net profit, mainly because non-recurring gains and losses increased year over year by RMB 171 million to RMB 66 million, resulting in a higher contribution to net profit.

Earnings Per Share: Profitability Declines Along With Earnings Scale; Non-Recurring Deducted Metrics Drop More Sharply

Basic earnings per share were RMB 0.30 per share, down 9.09% year over year, largely consistent with the decline in net profit; basic earnings per share after deducting non-recurring gains and losses were RMB 0.27 per share, down 30.77% year over year, matching the decline in non-recurring-deducted net profit.

Expenses: Scale Contracts Along With Revenue; Structure Continues to Optimize

During the reporting period, the company’s total period expenses were RMB 770 million, down 27.20% year over year. The expense ratio was 14.53%, up 2.20 percentage points year over year, mainly because the decrease in revenue was greater than the decrease in expenses.

Selling Expenses: Selling Scale Contracts Sharply

Selling expenses were RMB 184 million, down significantly by 53.49% year over year, mainly because planning and agency fees and sales commissions decreased with the contraction of the real estate sales scale. The selling expense ratio was 3.48%, down 1.50 percentage points year over year, and cost-control effectiveness was evident.

Administrative Expenses: Slight Decline in Scale; Control Effect Emerges

Administrative expenses were RMB 261 million, down 5.25% year over year, mainly due to the company optimizing management processes and cutting unnecessary expenditures. The administrative expense ratio was 4.93%, up 1.43 percentage points year over year.

Financial Expenses: Largely Stable Scale; Financing Costs Optimized

Financial expenses were RMB 325 million, down 1.90% year over year, with the scale basically stable. Of this, interest expenses were RMB 329 million, up 9.14% year over year; interest income was RMB 6 million, down 21.17% year over year. As of the end of the reporting period, the company’s overall average financing cost was 5.44%, down 0.48 percentage points from the end of the prior year, and financing costs continued to improve.

R&D Expenses: No R&D Expenditure This Period

During the reporting period, R&D expenses were 0; in the same period last year, they were RMB 6.8768 million, mainly because a subsidiary that generated R&D expenses was disposed of in the prior year.

R&D Personnel Profile: No Related Disclosures

During the reporting period, the company did not disclose information regarding its R&D personnel.

Cash Flows: Operating Cash Flow Basically Stable; Funding Pressure Eases Somewhat

Net Cash Flow from Operating Activities: Scale Basically Stable

Net cash flow generated from operating activities was RMB 1.425 billion, down 5.79% year over year. This was mainly because cash received from selling goods and providing services decreased by 29.60% year over year to RMB 31.469 billion, while cash paid for purchasing goods and receiving services decreased by 28.24% year over year to RMB 21.241 billion, and both inflow and outflow scales declined in tandem.

Net Cash Flow from Investing Activities: Scale Decreases to Some Extent

Net cash flow generated from investing activities was RMB 1.079 billion, down 20.12% year over year. This was mainly because cash inflows from investing activities decreased by 79.32% year over year to RMB 2.030 billion, while cash outflows from investing activities decreased by 88.52% year over year to RMB 951 million, resulting in a contraction of investment scale.

Net Cash Flow from Financing Activities: Net Outflow Scale Narrows Significantly

Net cash flow from financing activities was -RMB 4.622 billion. The year-over-year reduction in net outflow scale was 49.15%. This was mainly because cash paid for debt repayment decreased by 32.17% year over year to RMB 17.910 billion, while cash received from borrowings decreased by 48.42% year over year to RMB 10.289 billion, which helped ease financing pressure.

Potential Risks: Industry and Operational Pressure Remain; Risk Management Needs to Be Strengthened Continuously

Policy Regulation Risk

Although the easing tone of real estate policies will continue, the intensity and timing of policy implementation still carry uncertainty. The stimulus effect and its sustainability still require observation. The company needs to continuously strengthen policy tracking and market analysis, improve management and operational efficiency, and enhance its ability to mitigate risks.

Market Risk

There are still uncertainties in the overall real estate market. Residents’ income expectations and home-price expectations have not shifted significantly yet, and the release of home-buying demand still requires time. In addition, commercial real estate operations face challenges such as weak consumption recovery and intensifying competition. The company needs to proactively adjust its supply structure and marketing strategy, improve cash collection efficiency, and strengthen positioning and operational capabilities for commercial projects.

Operational Risk

Real estate development projects have long cycles and large investments, and face challenges such as changes in the sales environment, fluctuations in raw material prices, and concentrated payments for project funds, creating uncertainty that profit margins may be further compressed. For commercial operations, risks include declining tenants’ willingness to open stores, creating pressure on growth in commercial operating revenue. The company needs to continuously optimize management granularity, strengthen front-end communication, reasonably manage cash flows, and improve operational capabilities and efficiency.

Financial Risk

The real estate industry is still in a bottoming-out phase. Repairing financing channels for real estate developers still takes time, and cash flow challenges will continue alongside the shrinking of balance sheet cycles. The company needs to adhere to bottom-line thinking, improve the efficiency of capital use, reduce financial leverage, optimize its capital structure, and maintain good liquidity.

Compensation for Executives and Supervisors: Core Management Team’s Pay Stays Stable

During the reporting period, the chairman, Wang Xiaosong, had a total pre-tax compensation of RMB 3.30 million from the company; the president, Lü Xiaoping, had a total pre-tax compensation of RMB 3.30 million; the senior vice president, Guan Youdong, had a total pre-tax compensation of RMB 3.3679 million; and the board secretary, Li Feng, had a total pre-tax compensation of RMB 1.9214 million. The compensation for the core management team remained stable, aligning basically with the company’s performance and the prevailing industry compensation levels.

Click to view the full text of the announcement>>

Disclaimer: The market involves risk; investment requires caution. This article is automatically published by an AI large model based on third-party databases and does not represent Sina Finance’s viewpoints. Any information appearing in this article is for reference only and does not constitute personal investment advice. If there are discrepancies, please refer to the actual announcement. If you have any questions, please contact biz@staff.sina.com.cn.

Endless information and precise interpretation—only on the Sina Finance app

责任编辑：小浪快报