Central China FY2025 loss narrows to RMB3.24 bn on 26.5% revenue decline; auditor issues going-concern disclaimer

Central China Real Estate Limited reported a consolidated net loss of RMB3.24 billion for the year ended 31 December 2025, 6.20% lower than the RMB3.46 billion loss in 2024. Revenue contracted 26.5% year-on-year to RMB11.82 billion, dragged by a 28.4% drop in property sales to RMB10.80 billion and softer hotel income.

Gross profit fell 48.90% to RMB0.72 billion, pushing the annual gross margin down 2.7 percentage points to 6.1%. Core property gross margin slipped to 2.7% from 7.8%. Basic and diluted losses per share narrowed to RMB1.0323 from RMB1.1212.

The balance sheet showed total assets of RMB94.90 billion against total liabilities of RMB103.47 billion, resulting in negative equity of RMB8.56 billion (2024: negative RMB5.39 billion). Cash and restricted deposits fell 42.70% to RMB0.85 billion, while total borrowings stood at RMB23.25 billion, of which RMB22.39 billion were net borrowings. Short-term interest-bearing debts due within 12 months reached RMB22.40 billion, versus cash-to-short-term-debt coverage of 0.04.

Auditor SHINEWING (HK) CPA Limited issued a disclaimer of opinion, citing multiple uncertainties over the group’s ability to continue as a going concern. As at year-end, the group had defaulted or cross-defaulted certain borrowings, including RMB13.78 billion in offshore senior notes subject to immediate redemption on demand. Management is pursuing an offshore debt restructuring, negotiations with lenders and asset-disposal plans to address liquidity pressure.

Operating metrics remained weak: contracted sales dropped 16.3% to RMB8.47 billion on 1.28 million sq m of gross floor area (-14.5% YoY). The group delivered 2.80 million sq m across 69 projects and held total land reserves of 25.40 million sq m, 57.1% of which is earmarked for future development.

Capital commitments for ongoing property development reached RMB7.15 billion, with a further RMB30.45 billion authorised but not yet contracted. Guarantees for homebuyers’ mortgages and for associates and joint ventures totalled RMB26.76 billion.

No interim or final dividend was declared for 2025 (2024: nil). Central China plans to start construction on 16 projects covering 0.82 million sq m and aims to deliver about 2.00 million sq m across 52 projects in 2026, subject to funding and market conditions.