China Resources Land Management: Upgraded Strategic Positioning, Anchoring a World-Class City Investment, Development, and Operation Provider | Financial Insights · Annual Report Insights

On March 30, China Resources Land released its 2025 annual performance announcement and held an industry results briefing. Chair of the board Li Xin, president Xu Rong, vice chair Zhang Dawei, chief financial officer Zhao Wei, chief operating officer Chen Wei, and other executives attended to interpret the company’s 2025 operating results, its judgments on industry trends, and to clearly set out its development strategy and performance targets for the “14th Five-Year Plan” period.

The financial report shows that in 2025, the company achieved consolidated revenue of RMB 281.44 billion, up 0.9% year over year. Of this, revenue from the development and sales-oriented business was RMB 238.16 billion; revenue from the operating real estate leasing-oriented business was RMB 25.44 billion; and revenue from the light-asset management and fee-based business was RMB 17.83 billion. Total recurring business income was RMB 43.28 billion, up 3.7%, accounting for 15.4% of total revenue.

During the period, the consolidated gross margin was 21.2%. Of this, the gross margin for the development and sales-oriented business was 15.5%; the gross margin for the operating real estate leasing-oriented business was 71.8%, up 1.8 percentage points year over year. The operating and management efficiency improvement of China Resources Mixc Life drove gross margin up 2.5 percentage points year over year to 35.5%.

For the reporting period, profit attributable to shareholders was RMB 25.42 billion. Excluding this year’s fair value gains on investment properties and adding back the realized cumulative fair value gains from the disposal of certain investment property projects during the current year, the core profit attributable to shareholders (hereinafter referred to as “core net profit”) was RMB 22.48 billion. Of this, core net profit from recurring business was RMB 11.65 billion, and the contribution share of core net profit increased by 11.2 percentage points year over year to 51.8%.

The report shows that in 2025, the Group achieved property contracted sales of RMB 233.60 billion, ranking third in the industry, with contracted GFA of 9.22 million square meters. By the end of 2025, the Group had locked in contracted but unrecognized revenue (not yet settled) of RMB 164.58 billion, of which RMB 123.48 billion is expected to be settled in 2026. During the reporting period, the Group added 3.39 million square meters of planned GFA to its land reserve. By the end of 2025, the Group’s total land reserves were approximately 46.73 million square meters.

At the performance briefing, Chair Li Xin said that 2025 was an important step for China’s real estate industry as it deepens adjustments and accelerates its transition. The overall market continued to trend downward, with further intensification of structural differentiation. From the stage of developing incrementally while upgrading stock and improving efficiency, new development models are speeding up reconstruction.

“Based on industry trends, China Resources Land has upgraded its strategic positioning to: creating a world-class urban investment, development and operations provider.” Li Xin noted that creating a world-class standard has five key criteria: high-quality profitability, sound financial strength, advanced business models, leading market capitalization, and outstanding branding. To achieve this positioning, China Resources Land will firmly implement three major business guidelines: first, “freeing the mind, innovating for transformation, and achieving comprehensive high-quality development,” breaking through development constraints and promoting iterative upgrades to business models; second, “effective improvement in quality and reasonable growth in scale,” balancing development speed and quality to achieve sustainable development; and third, “revenue with profits and profits with cash flow,” sticking to the profitability bottom line and safeguarding the company’s financial security. At the same time, China Resources Land will reshape new competitive advantages for the industry through efficient coordination and concerted efforts along the “three growth curves,” laying a solid foundation for high-quality development.

When discussing the performance plan for the “14th Five-Year Plan” period, Li Xin further clarified development targets for the three business segments, ensuring that the “three growth curves” will maintain an overall stable growth trend.

For the development and sales-oriented business segment, it is expected that in 2026–2027, the traditional real estate market will continue to face certain market pressure. However, with improvements in investment quality and the realization of “one achieves one,” the continuous release of increment will drive the development business to stabilize and rebound. It is expected that by the end of the “14th Five-Year Plan” period, the revenue scale of the development and sales-oriented business will remain around RMB 200 billion, with the revenue share maintained at the 70%–75% range, and the profit share at nearly 40%.

The operating real estate leasing business will grow steadily. Although some projects will undergo asset securitization, with the continuous opening of under-construction shopping centers, ongoing improvements in the operating quality of existing shopping centers, and the effective cyclical operation of the asset management business, it is expected that by the end of the “14th Five-Year Plan” period, revenue will stabilize at around RMB 30 billion. The scale and quality are expected to remain industry-leading. The revenue share will be close to 15%, and the profit share will be close to 50%.

The light-asset management and fee-based business will maintain strong growth momentum, with expected annual growth rates exceeding 10%. The revenue scale is expected to reach around RMB 20 billion during the “14th Five-Year Plan” period, with a profit share of 10%–15%.