China Aoyuan Group Limited released its audited results for the year ended 31 December 2025, reporting a RMB19.09 billion net loss—almost nine times the RMB2.10 billion loss recorded in 2024. The sharp deterioration follows the absence of the one-off RMB26.16 billion gain booked in 2024 from offshore debt restructuring.
Revenue slipped 4.3% year on year to RMB9.26 billion, weighed down by a 37.3% fall in “other” business income despite a 1.8% uptick in property development sales to RMB8.31 billion. The average selling price of delivered properties fell 25.5% to RMB7,422 per sq.m., offsetting a 36.6% rise in delivered GFA to 1.12 million sq.m.
Aoyuan recorded a RMB7.16 billion gross loss, narrower than the RMB16.19 billion loss in 2024 after lower impairment charges on properties for sale. Finance costs, net of capitalised interest, increased 36.7% to RMB5.56 billion.
Liquidity remains strained: • Cash and restricted deposits totalled RMB1.59 billion, against short-term debt of RMB56.07 billion. • Current liabilities exceeded current assets by RMB40.01 billion, while total net liabilities reached RMB45.65 billion. • Total interest-bearing debt stood at RMB71.53 billion, with 78% maturing within 12 months.
The auditor issued a disclaimer of opinion, citing “multiple uncertainties related to going concern,” including substantial short-term debt maturities, significant litigation exposures, and limited cash reserves.
Management stated it is “close to finalising” an onshore debt-restructuring plan, negotiating loan extensions, and pursuing asset disposals to improve liquidity. No dividend was declared for 2025.
Operationally, contracted sales fell to RMB7.29 billion (0.76 million sq.m.), reflecting continued weakness in China’s residential market. The group maintains a 4.86 million sq.m. landbank in the Greater Bay Area.
Despite implementing cost-control measures—selling and distribution expenses dropped 38.8% and administrative costs fell 34.7%—the company’s capital deficiency and auditor’s disclaimer highlight ongoing financial pressure as it seeks to stabilise operations and secure long-term viability.
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