CIFI Holdings Group: Turning losses into profits in 2025; after its debt restructuring is completed, the most difficult stage has gradually passed

On March 31, Country Garden? (Note: input says “旭辉控股集团（00884.HK）2025年全年业绩公告” — translating directly below.)
On March 31, Xu Hui Holdings Group (00884.HK) released its 2025 full-year results announcement. During the period, the company recorded revenue of RMB 25.45B, of which rental and other service income related to investment properties was RMB 1.64 billion. Benefiting from reorganization gains, the company swung to a profit in 2025, achieving net profit attributable to shareholders of RMB 17.67 billion.

On the profitability front, during the period, Xu Hui Holdings Group posted gross profit of RMB 1.74B, down 76.3% from RMB 7.36B in the same period of 2024. The gross margin was 6.9%, down 8.5 percentage points from 15.4% in the same period last year.

Benefiting from substantial one-off gains brought by domestic and overseas debt restructurings, Xu Hui Holdings Group swung to a profit in 2025. The announcement shows that in 2025, the company recorded profit before tax of RMB 16.58B, compared with a pre-tax loss of RMB 3.65B in the same period of 2024; profit of RMB 15.89B, reversing the loss of RMB 6.33B in 2024.

In terms of shareholder returns, in 2025, net profit attributable to shareholders was approximately RMB 17.67B, while it was a net loss of approximately RMB 7.08B in 2024. The increase in profit was mainly attributable to approximately RMB 40.5 billion of gains from overseas debt restructuring and approximately RMB 1.0 billion of gains from domestic debt restructuring.

If the impact of the above one-off debt restructuring gains is excluded, Xu Hui Holdings Group’s core net loss attributable to shareholders in 2025 was approximately RMB 8.89B, significantly larger than the core net loss of RMB 5.83B in 2024. The announcement states that the worsening of the core loss was mainly due to a decrease in the completion volume of property projects during the period that met the revenue recognition conditions, leading to a decline in revenue, together with continued market weakness that put pressure on the gross margin.

At period end, Xu Hui Holdings Group’s net assets attributable to parent increased to RMB 30.3 billion. Interest-bearing liabilities fell to RMB 50.4 billion, down more than RMB 60 billion compared with the peak in 2021. The net gearing ratio was 74%. For four consecutive years, operating cash flow remained positive.

During the period, Xu Hui Holdings Group achieved contracted sales amount of RMB 16.10 billion, with contracted sales gross floor area of 1.5479 million square meters, and an average contracted sales price of RMB 10,402 per square meter. The Yangtze River Delta, the Bohai Rim, the Midwest, and South China contributed approximately 27.0%, 34.9%, 28.2%, and 9.9% of sales, respectively.

For 2026, Xu Hui Holdings Group said that the real estate industry is expected to remain in an adjustment cycle, and a full recovery will take time. However, structural opportunities and policy support will be key variables. Given that the adjustment in supply and demand in the second-hand housing market requires a longer period, the land market is expected to continue to show the characteristics of “reducing volume while improving quality.”

Xu Hui Holdings Group believes that property developers’ investment will become more rational, focusing on core land parcels in first- and second-tier cities with strong certainty. The land market in non-core cities may continue to cool off, and some cities may even stop land supply. As profit margins in development business thin, the focus of operating real estate-related businesses will increase significantly.

Regarding the completion of all domestic and overseas debt restructurings, Xu Hui Holdings Group stated that the company’s most difficult phase has gradually passed. The company’s development is entering a new turning point. Both domestic and overseas debt restructurings have been implemented and become effective. The scale of interest-bearing liabilities has been reduced significantly, the capital structure has been substantially optimized, liquidity pressure has been effectively alleviated, and a solid foundation has been laid for future development.