Zheng Rong Real Estate (06158.HK) Profit Warning: Expected annual net loss of approximately 17-18 billion yuan

NightAirdropper · 2026-03-20T19:28:06+00:00

Zheng Rong Real Estate anticipates recording a loss attributable to the parent company of approximately RMB 17 billion to 18 billion for the fiscal year 2025, with core losses of approximately RMB 5 billion to 6 billion, primarily due to declining real estate demand, reduced gross margins, and increased impairment provisions.

NightAirdropper

2026-03-20 19:28:06

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CIFI Holdings (Group) Co. Ltd. announced on March 20 that the Group expects to record a loss attributable to owners of the parent of approximately RMB 17 billion to RMB 18 billion for the 2025 fiscal year (compared to a loss attributable to owners of the parent of approximately RMB 6.83 billion for the 2024 fiscal year) and a core loss (net loss excluding the impact of impairment losses, fair value changes, and exchange gains and losses on non-cash items) of approximately RMB 5 billion to RMB 6 billion (compared to a core loss of approximately RMB 3.178 billion in 2024).

The loss attributable to owners of the parent mainly stems from the following reasons: in 2025, (i) the overall decline in demand in the real estate industry led to lower project selling prices and gross profit, as well as impairment provisions related to properties under development, properties held for sale, completed properties, other assets, and financial assets; (ii) increased uncapitalized financing interest; and (iii) a decrease in the fair value of investment properties.

The expected loss will increase mainly due to a decrease in gross profit and an increase in impairment provisions compared to 2024.

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