Annual Report Observation | City Investment Holdings' Sales "Barometer"

In 2025, Chengtou Holding’s sales performance declined, which may affect its revenue performance afterward.

Guancha Network noted that for a company mainly engaged in real estate business operations, the level of sales has a decisive impact on revenue performance.

Due to the project release and sales schedule, Chengtou Holding’s sales amount year over year fell significantly in 2025, but revenue maintained a certain growth rate.

According to data disclosed by the company on the evening of March 27, total operating revenue recorded during the period was approximately RMB 14.457 billion, up 53.27% year over year; net profit attributable to shareholders of listed companies was RMB 289 million, up 19.19% year over year; and net profit attributable to shareholders of listed companies after deducting non-recurring profit and loss was RMB 331 million, up 212.15% year over year.

By the end of the reporting period, Chengtou Holding’s net assets attributable to shareholders was RMB 21.036 billion, up 0.64% year over year; total assets were RMB 81.5 billion, down 3.74% year over year, and return on net assets was 1.38%.

Revenue growth benefited from the revenue recognition from previously sold projects. In its annual report, Chengtou Holding stated that this period’s operating revenue increased by 53.27% compared with the same period last year, mainly because the revenue recognition from the completion and delivery of the company’s real estate projects increased compared with the same period last year; the net profit attributable to shareholders after deducting non-recurring profit and loss increased by 212.15% compared with the same period last year, mainly due to an increase in profit from the recognition upon delivery and transfer in the real estate business during this period, together with a year-over-year decrease in fair value change gains/losses included in non-recurring profit and loss because of fluctuations in the value of the securities market.

Sales setbacks

Guancha New Media learned that Chengtou Holding’s business layout covers three major segments: real estate development, real estate operations, and equity investment, and it is a comprehensive real estate group carrying out business related to the full lifecycle of real estate.

Specifically, its real estate business is mainly operated by its wholly owned subsidiary, Zhidi Group, and covers commodity housing, rental housing, affordable housing, hotels, technology park development, redevelopment of old urban areas, renovation of urban villages, and PPP projects; the real estate operations business mainly includes rental residential operations, management of income-generating assets and leasing/marketing operations, property sales/marketing, and property management; the equity investment business mainly includes direct equity investment and private equity fund management.

During the period, Chengtou Holding’s revenue mainly came from the real estate business. Previously, revenue recognition from sales drove growth in this portion of revenue. The business’s operating revenue during the period was RMB 14.425 billion, up 53.48% year over year, with the main contribution coming from Shanghai; its gross margin was 17.83%, up 2.86 percentage points from the previous year. During the period, the company achieved revenue recognition amount of RMB 13.686 billion, with a recognized area of 1.646 million square meters, and an area pending recognition of 0.623 million square meters as of the end of the reporting period.

According to descriptions in the annual report, in the development segment, Chengtou Holding successfully completed the delivery of five projects during the year: Luzhxiangyuan B plot, Hongshengli Phase I and II, Qingxiyun Di, and the west plot of Jinyunli Phase II; projects under construction such as Luzhxiangyuan Phase II and Xinghuali were advanced according to key nodes. In 2025, the scale of projects under construction was about 8.4 million square meters, with about 1.4 million square meters newly started, and about 3.6 million square meters completed.

In 2025, Chengtou Holding’s sales performance declined, which may affect its revenue performance afterward. According to annual report data, the company’s total contracted real estate sales cash collections in 2025 were approximately RMB 9.7 billion, including products such as Qingxiyun Di, Luzhxiangyuan Phase II, and the second phase of Jinyunli.

During the period, Chengtou Holding achieved sales of RMB 7.882 billion and a sales area of 1.155 million square meters. Meanwhile, in 2024, Chengtou Holding’s sales amount was RMB 17.733 billion, down 55.55% year over year.

In operations, “Chengtou Kuanting” has 16 operating projects and 17,000 units of housing resources, with an annual rental scale of over RMB 600 million. For projects with operating history of more than one year, the overall rental occupancy rate has been stable at over 90%. “Kuanting Service” property management system is gradually building full-cycle service standards covering the entire process from project delivery, day-to-day operations to maintenance and repairs. The company currently has 10 commissioned management projects and 7 projects already taken over, with the comprehensive collection rate of property fees reaching 96%.

In investment, during the period Chengtou Holding received cash dividends from listed securities totaling approximately RMB 97 million (including REITs). As of the end of the reporting period, the market value of listed securities held by the company was about RMB 5.335 billion (including REITs).

Tax impacts

What is worth noting is that in early 2026, Chengtou Holding’s wholly owned subsidiary, Shanghai Luzhxiangyuan Real Estate Co., Ltd., received a “Tax Treatment Decision Letter.” Due to violations in the company’s land value-added tax clearance declaration, it will pay back taxes of RMB 90.891 million plus late payment surcharges of approximately RMB 39.5607 million, which is expected to reduce net profit for 2025 by about RMB 130 million.

As already reflected in the annual report, the amount of the company’s taxes and surcharges during the period was approximately RMB 686 million, compared with only RMB 183 million in the prior year, an increase of 275.47%; Chengtou Holding stated that the year-over-year increase of RMB 503 million in taxes and surcharges during this period was mainly due to the year-over-year increase in taxes and fees related to real estate sales.

Non-operating expenses were approximately RMB 59.5618 million, up 2137.54% from RMB 2.6619 million last year, mainly due to the payment of late payment surcharges.

In recent years, Chengtou Holding has actively reserved project resources to lay a foundation for the sustained development of its real estate development business. Guancha New Media learned that in 2024, Chengtou Holding acquired land relatively actively, while in 2025 it has become more cautious.

In terms of real estate reserves, as of the end of the period, Chengtou Holding’s total floor area of land reserves was about 7.3 million square meters. At present, it holds seven real estate reserve projects, including the Juping Town plot in Jinshan District, the north block of the Xinjingwan City Science Park in Yangpu District, the Huangshan High-Speed Railway New City A-1 plot Phase III, the HK0015-06 plot in Jiangwan Town Street, Hongkou District, and the 235B-03 plot in Xiaodongmen Street, Huangpu District, among others; as well as the “urban village” renovation project in Duxing Old Street of Pujiang Town and the “urban village” renovation project in Zhufei, Huacao Town.

The two old-town renewal projects are its largest holdings in terms of undeveloped land area.

In 2024, Chengtou Holding signed cooperation agreements for renovation projects with the People’s Government of Pujiang Town and the People’s Government of Huacao Town, participating in the renovation of the “urban village” project at Duxing Old Street in Pujiang Town, Minhang District, and the renovation of the “urban village” project at Zhufei in Huacao Town. The total investment amounts of the projects were RMB 6.517 billion and RMB 11.839 billion, respectively. The development cycle for both projects is expected to be 5.5 years. The two projects are currently in the relocation stage.

In terms of assets and liabilities, during the period Chengtou Holding successfully issued medium-term notes of RMB 1.73 billion, with an issuing interest rate of 2.4%. It was approved for an asset-backed securities issuance quota of RMB 3.5 billion. By the end of 2025, Chengtou Holding’s cash and funds balance was RMB 8.281 billion, the total financing amount was RMB 42.183 billion, the overall average financing cost was 3.53%, and the interest-bearing debt ratio was 51.76%.

Chengtou Holding disclosed externally that in 2026 it expects the total newly added issuance scale not to exceed RMB 20 billion, including but not limited to trust financing, sale-and-leaseback businesses, issuance of corporate bonds, corporate debentures, medium-term notes, debt financing plans at the Beijing Financial Assets Exchange, non-financial enterprise debt financing instruments, insurance funds’ debt investment plans, asset securitization (including but not limited to CMBS, REITs, quasi-REITs, ABS), and other private financing instruments, among other approaches.

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