CMC Markets 2025 Annual Report: Three Core Businesses Drive Synergy, Digital Intelligence and Green Energy Empower Long-term Development

Recently, China Merchants Shekou (001979.SZ) released its 2025 annual report. During the reporting period, the company achieved operating revenue of 154.728 billion yuan and net profit attributable to shareholders of 1.024 billion yuan. Against the backdrop of industry deep adjustment, the company’s financial position remained stable: net cash flow from operating activities was 9.693 billion yuan, with a year-end cash balance of 86.127 billion yuan. The “three red lines” remained in the green zone, with asset-liability ratio excluding pre-received accounts at 64.17%, net debt ratio at 72.46%, and cash short-term debt ratio at 1.19, indicating a healthy and reasonable debt structure. Additionally, the company’s average annual capital cost was 2.74%, down 25 basis points from the beginning of the year. Leveraging the credit advantages of central enterprises, the company has built a diversified, low-cost financing system, strengthening its financial foundation to navigate industry cycles.

Three Major Business Segments Collaborate to Build Multiple Growth Engines

Since 2025, China Merchants Shekou has accelerated its shift from primarily development to a balanced approach of development and operation, from heavy assets to a combination of heavy and light assets, and from homogeneous competition to differentiated development.

In development, the company signed sales contracts totaling 196.009 billion yuan in 2025, ranking fourth in the industry. It ranked in the top three in total sales across 10 core cities and entered the top five in 15 key cities. The company adheres to the “core 10 cities” focus strategy, with 90% of investments concentrated in key areas. Investment in first-tier cities accounts for 63%, with targeted acquisitions of high-quality land parcels in Shanghai, Shenzhen, Beijing, and other core cities, totaling 43 plots throughout the year.

Product upgrading has become a key to breaking through, with the “Good House” system covering 7 dimensions, 28 modules, and 485 technical details. This system has been scaled in over 20 benchmark projects nationwide, with 15 projects listed among the top ten works of the year or half-year nationwide, and 6 projects winning special awards for quality housing. Meanwhile, the company’s construction agency business has expanded rapidly, adding 80 new projects in the year, with a total of over 620 projects contracted, covering more than 35 million square meters. Its comprehensive capabilities and product strength remain among the top 10 in the industry, forming a multi-asset synergy development pattern.

During the period, the company’s asset operation business continued steady growth, with total property management income of 7.63 billion yuan, a year-on-year increase of 2.2%. Through a full lifecycle model of “investment, financing, construction, management, and divestment,” the company promotes value realization of existing assets. In 2025, the second round of fundraising for Boshi Shekou Industrial Park REIT was launched, further opening channels for capitalization and exit. Multiple sectors flourished: 8 new commercial projects opened, with Nanjing Xuanwu Garden City’s flagship store standing out; Hangzhou North City Garden City opened with 650,000 visitors in three days, leading the market; existing projects over three years old maintained a leasing rate of 93%. The industrial parks focus on three emerging industries, hosting 29 national-level small giant enterprises and 301 high-tech enterprises, with notable progress in the “Qianhai-Shekou Low-altitude Economy Pilot Zone.” The apartment business in first-tier cities accounts for 92%, with high-quality apartments over one year old achieving a 93% occupancy rate, with several projects operating at full capacity. Additionally, the exhibition and cruise businesses have seen innovative upgrades: China Merchants Exhibition held over 7 million square meters of exhibitions annually, and the cruise business served 4.198 million passengers.

In property services, China Merchants Property Services (招商积余) achieved revenue of 19.273 billion yuan for the year, managing 2,473 projects with a management area of 377 million square meters, maintaining a leading position in the industry. The company’s market expansion has been effective, with third-party new contracts worth 4.169 billion yuan, up 13% year-over-year, including an 85% increase in aviation-related services, 25% growth in higher education services, and a 60% increase in market-oriented residential services. The company also continues to innovate value-added services, building a diverse service ecosystem centered on owner needs, focusing on home services and real estate brokerage, continuously enhancing service value.

“Digital Intelligence + Green” Dual Drive to Activate Sustainable Development

During the period, China Merchants Shekou deepened the integration of digital intelligence and business, with notable AI application results. In property management, the AI property work order assistant improved frontline efficiency by 90%, WeChat intelligent customer service provided 24/7 uninterrupted service, and video smart patrols achieved a recognition accuracy of 97%, reducing manual audits by 31%. In marketing, smart badges empowered sales teams, significantly improving customer visit efficiency and information completeness, creating a new paradigm of refined site management.

The company also continuously improves its R&D system. The customer research intelligent positioning system, through “three maps linkage + intelligent positioning,” addresses scattered traditional data issues. The cost management system enables dynamic full-cycle control. Property robots are deployed in six scenarios, including unmanned parking lots and cleaning replacements. In 2025, R&D personnel increased by 9.26% year-over-year, with R&D investment as a percentage of revenue further rising, injecting sustained momentum into digital transformation and business enhancement.

As a pioneer, practitioner, and leader in green living, China Merchants Shekou actively implements the “dual carbon” goals. In 2025, the company added 2.344 million square meters of prefabricated buildings, accounting for 92.3% of new projects. It added 35 green building certification projects, reaching a total of 553 green buildings with a combined area of over 65.936 million square meters. The company has 42 ultra-low energy consumption and near-zero energy buildings, totaling 3.0023 million square meters, maintaining industry leadership in green building scale.

Meanwhile, the company actively promotes social responsibility. The China Merchants CStar Youth Innovation and Entrepreneurship Program’s overseas public welfare projects were selected for the 2026 “China-Africa Cultural Exchange Year” list, becoming a highlight of the Belt and Road cultural exchanges. By the end of 2025, China Merchants Shekou’s MSCI ESG rating remained at Grade A (the highest in the A-share real estate sector), ranking among the top in various domestic ESG ratings, achieving a harmonious balance of economic and social benefits.

Following Policy Guidance and Upgrading Strategy to Open a New Chapter

The 2026 Two Sessions clarified the policy tone of “stabilizing the real estate market,” emphasizing controlling new supply, reducing inventory, and optimizing supply. Central bank policies included targeted interest rate cuts and tax incentives for home exchanges, injecting momentum into industry stabilization and recovery.

Against this backdrop, China Merchants Shekou will fully advance its “14th Five-Year” strategic layout, transforming into a “developer + operator + service provider” integrated model. The company will continue to focus on “quality operation, reform efficiency, asset reduction, and debt reduction,” enhancing core competitiveness.

Notably, during the March 17 earnings presentation, China Merchants Shekou stated that the real estate industry is entering a critical phase of transitioning from old to new models. The company’s strategic goal is to “solidify among the top five in the industry and become China’s leading integrated development and operation service provider for industrial parks.” It will focus on “development, asset operation, and property services,” using “precise investment, product upgrades, operational value addition, and asset revitalization” as key strategies to promote high-quality growth.

From a pioneer of reform and opening up to an industry transformation leader, China Merchants Shekou demonstrates strong resilience through its threefold business synergy, “digital intelligence + green” innovation momentum, and solid financial foundation. Moving forward, as strategic initiatives are implemented, the company will continue to unlock diverse business value, contribute to urban development, and pursue high-quality, sustainable growth.