Annual Report Observation | China Enterprise Achieves Profitability Turnaround with Over 10 Billion Revenue

Opinion Network On the evening of March 24, China Enterprise officially disclosed its 2025 annual report.

Financial data shows that China Enterprise achieved total operating revenue of 10.557 billion yuan in 2025, a year-on-year increase of 51.71%, successfully reaching a billion-yuan scale, and net profit attributable to the parent turned from loss to profit.

Behind the financial report is China Enterprise’s strategic focus on heavily investing resources, energy, and future assets in Shanghai. A series of core-area improvement residential projects were delivered intensively and efficiently, directly supporting a performance turnaround for the year.

From stopping losses and repairing to building momentum for growth, this Shanghai-based state-owned real estate company’s path aligns with its resource endowment and reflects the common logic of local state-owned enterprises seeking stability and progress during cycles.

Billion-Yuan Revenue

In 2025, China Enterprise’s key operational indicators showed a clear recovery trend.

During the reporting period, the company achieved total operating revenue of 10.557 billion yuan, up 51.71% year-on-year, reaching a recent high; net profit attributable to the parent was 1.19 billion yuan, up 137.45%, successfully turning from loss to profit; net profit attributable to the parent after deducting non-recurring gains and losses was 72.66 million yuan, also significantly increased.

Looking at historical data, in 2022, the company’s net profit attributable to the parent was a loss of 57 million yuan, and net profit after deducting non-recurring items was a loss of 922 million yuan; in 2023, it turned profitable with net profit attributable to the parent of 555 million yuan and non-recurring net profit of 227 million yuan; in 2024, it fell back into loss, with net profit attributable to the parent at -317 million yuan and non-recurring net loss of 431 million yuan.

In 2025, not only was the loss gap filled, but profitability was also restored, marking a clear performance reversal.

In terms of financial operations, the company successfully issued 1.52 billion yuan of corporate bonds with a low coupon rate of 1.88%, receiving 3.68 times oversubscription. Additionally, it repaid 1.56 billion yuan of operational property loans early, reducing the average financing cost of interest-bearing debt from 3.87% to 3.22%, a decrease of 0.65 percentage points year-on-year. Correspondingly, financial expenses decreased by 15.6%, with interest expenses reduced by approximately 142 million yuan.

Meanwhile, the China Securities Regulatory Commission approved the company’s registration application for issuing shares to specific targets, with a new financing limit of no more than 6.4 billion yuan in 2025.

Entering 2026, this limit was further increased to no more than 9.8 billion yuan, including guarantees of up to 1.5 billion yuan for subsidiaries and authorization to provide up to 7.32 billion yuan in financial support to project companies, continuously strengthening capital support capacity.

As of the end of 2025, the company’s total assets were 55.007 billion yuan, total liabilities 37.075 billion yuan, and shareholders’ equity 17.932 billion yuan, maintaining a relatively stable asset-liability structure.

Quarterly data shows that in Q1, revenue reached 5.765 billion yuan, accounting for nearly half of the annual total. Although there was some decline in subsequent quarters, the overall revenue maintained steady growth, with main business sales and delivery progressing orderly.

Net cash flow from operating activities was -1.183 billion yuan, mainly affected by project development investments and settlement cycles. The company pointed out in the financial report that overall cash flow could still support daily operations and project advancement without constraining core business.

Overall, the improvement in China Enterprise’s 2025 financial data is a direct result of focusing on core business and optimizing operations.

Heavy Investment in Shanghai Market

The annual report clearly states that one of the key factors in turning losses into profits was the company’s projects that qualified for revenue recognition during the reporting period.

In 2025, China Enterprise experienced a wave of intensive deliveries in Shanghai, with multiple core residential projects delivered on schedule or even ahead of schedule, directly driving significant revenue growth.

The Yun Cui Forest plots 05-14 led the effort, delivering over 100,000 square meters in February, 100 days ahead of schedule, with a delivery area exceeding 100,000 square meters and a 100% visit and delivery rate. High-quality, fast-paced deliveries significantly advanced revenue recognition, laying a foundation for the year’s performance.

Yupin Silver Lake Bay plots 07-10 followed closely, completing delivery in October, with parking space subscriptions exceeding 95% within three days of opening, quickly clearing inventory and boosting sales revenue.

At the year-end in December, Yun Qi Chun Shen project also completed construction filing and obtained delivery permits.

While efficiently delivering existing projects, China Enterprise also directed new resources toward Shanghai’s core urban renewal tracks.

In September 2025, the company, focusing on urban renewal, acquired a 70% stake in the Shen Jiali project in Xuhui Inner Ring through equity acquisition with 2.091 billion yuan in partnership with Chenjia Development.

This site is the largest-scale old redevelopment in Shanghai’s history—the Dong’an New Village renewal, and it is a key residential area with scarce location advantages. The project targets high-end improvement, with about 200 households, average unit size over 300 square meters, and significantly upgraded product quality.

By the end of 2025, the Shen Jiali project had obtained a construction permit, with pile foundation work fully underway. The demonstration area is planned to open in the second half of 2026, with official market entry.

From project layout to operational focus, China Enterprise is completing a thorough strategic realignment. Heavy investment in Shanghai’s core areas, deepening urban renewal, and strengthening capital turnover—all point toward a more certain future.

For this Shanghai-focused real estate enterprise, the 2025 performance recovery is just the beginning. The market entry of the Shen Jiali project and the results of inventory clearance in 2026 will determine whether it can transition from a phase of rebound to long-term stable development.