Seazen Holdings: Real Estate Sales Decline While Commercial Operations Serve as Profit Stabilizer

Sales scale declined year-over-year, while commercial operations continued to gain momentum, becoming an important pillar of the profit structure.

**Core Insights**

**First-Half Sales Scale Declined with Structural Changes in Regional Performance Contributions**

In the first half of 2025, Seazen Holdings Co.,Ltd. achieved sales revenue of 10.33 billion yuan, down 56.14% year-over-year. The company ranked 43rd in full-scale sales, with its industry ranking continuing to decline, falling 19 positions from the end of last year. The company achieved collection amounts of 11.884 billion yuan, with a collection rate reaching 115.05%. The Yangtze River Delta's sales contribution continued to decline, dropping 7 percentage points to 33%, but remained the highest contributing region. The Bohai Rim region's performance contribution increased by 5 percentage points to 27%.

**Third and Fourth-Tier Cities Account for Over 60% of Land Reserves, Structural Adjustment Pressure Remains**

In the first half of 2025, Seazen Holdings did not acquire new land reserves in the open market. As the company's official channels did not disclose specific land reserve scale information for this period, based on estimates from Seazen's disclosed sellable land reserves in 2023 and sales and investment activities since 2024, Seazen's sellable land reserves at the end of the first half of 2025 were approximately 32.1 million square meters. From the distribution of land reserves by city tier, Seazen Holdings' land reserves are concentrated in third and fourth-tier cities at about 61%, while first and second-tier city land reserves account for only 39%. The third and fourth-tier land reserves are mainly located in the Yangtze River Delta region and central-western regions.

**Real Estate Business Revenue Continues to Decline, Overall Profit Margins Remain Relatively Stable**

In the first half of 2025, Seazen Holdings achieved operating revenue of 22.1 billion yuan, down 34.8% compared to the same period last year. Real estate business revenue was 15.17 billion yuan, down 44.9% compared to the same period last year, with slower settlement. The company achieved gross profit of 5.934 billion yuan, down 19.0% compared to the same period last year. The overall gross margin was 26.85%, up 5.25 percentage points compared to the same period last year. Real estate development gross margin was 7.96%, down 2.97 percentage points from the previous year, indicating profitability pressure. Net profit was 890 million yuan, down 34.6% compared to the same period last year. Net profit attributable to shareholders was 895 million yuan, down 32.1% compared to the same period last year.

**Financing Breakthroughs Achieved, Short-term Liquidity Still Under Pressure**

On June 12, 2025, Seazen Holdings' parent company Seazen Development successfully issued a 3-year term $300 million senior unsecured bond, marking the first private real estate overseas bond in nearly three years. Subsequently, on August 1st, Seazen Holdings successfully issued a 1 billion yuan medium-term note with an issuance rate of 2.68%, reaching a historical low, and extended the debt term to 5 years. As of the end of the reporting period, Seazen's overall average financing cost was 5.55%, down 0.37 percentage points from the end of 2024. Interest-bearing debt totaled 52.276 billion yuan, down 2.6% from the beginning of the year, of which short-term debt amounted to 14.16 billion yuan, up 13.8% from the beginning of the year. Cash holdings were 9.18 billion yuan, down 10.8% from the beginning of the year. The cash-to-short-term debt ratio was 0.65, and excluding restricted cash, the ratio was 0.42, indicating liquidity pressure.

**Wuyue Plaza Opening Scale Exceeds 16 Million Square Meters, Becoming Important Profit Structure Support**

As of the end of the first half of 2025, Seazen Holdings had 205 Wuyue Plazas across 141 cities nationwide, with 174 opened and under management operations, covering an opening area of 16.0814 million square meters. Wuyue Plaza continues to build an operational moat for Seazen Holdings. In terms of operating income, benefiting from the expansion of Wuyue Plaza scale and rising occupancy rates, Seazen Holdings' commercial operations income (including tax rental income) in the first half of 2025 was 6.944 billion yuan, up 11.8% year-over-year. The gross profit contribution ratio of property leasing and management business increased significantly from 57.21% in the same period last year to 77.06%, with a gross margin reaching 71.2%. The commercial segment has become the "ballast stone" of Seazen Holdings' profit structure.

**01 Sales** **First-Half Sales Scale Declined with Structural Changes in Regional Performance Contributions**

In the first half of 2025, Seazen Holdings achieved sales revenue of 10.33 billion yuan, down 56.14% year-over-year, with sales area of 1.335 million square meters, down 59.07% year-over-year, and average selling price of 7,738 yuan per square meter, down 56.15% year-over-year. The company ranked 43rd in full-scale sales, with its industry ranking continuing to decline, falling 19 positions from the end of last year. In the first half of 2025, Seazen Holdings achieved collection amounts of 11.884 billion yuan, with a collection rate of 115.05%.

From the sales revenue distribution perspective, the Yangtze River Delta's sales contribution continued to decline but remained the highest contributing region, while the Bohai Rim region's performance contribution increased significantly. In the first half of 2025, Seazen Holdings' contracted sales revenue from the Yangtze River Delta accounted for the highest proportion at 33%, down 7 percentage points year-over-year. Central-western regions and the Bohai Rim followed, with sales revenue contribution ratios both at 27%, down 2 percentage points and up 5 percentage points respectively year-over-year. The Pearl River Delta's sales revenue proportion was 12%, up 2 percentage points year-over-year.

**02 Investment** **Third and Fourth-Tier Cities Account for Over 60% of Land Reserves, Structural Adjustment Pressure Remains**

In the first half of 2025, Seazen Holdings did not acquire new land reserves in the open market, adopting a cautious strategy. As the company's official channels did not disclose specific land reserve scale information for this period, based on estimates from Seazen's disclosed sellable land reserves in 2023 and sales and investment activities since 2024, Seazen's sellable land reserves at the end of the first half of 2025 were approximately 32.1 million square meters.

From the distribution of land reserves by city tier, Seazen Holdings' first and second-tier city land reserves accounted for 39%, while third and fourth-tier land reserves exceeded 60%. According to the company's disclosed "First Half 2025 Real Estate Project List," Seazen Holdings' first and second-tier city land reserves accounted for only 39%. Over 60% of land reserves are located in third and fourth-tier cities, with the Yangtze River Delta, central-western regions, and Bohai Rim regions each having approximately 20% of third and fourth-tier reserves.

Currently, many third and fourth-tier cities' real estate markets exhibit characteristics of weak demand and oversupply, making them more vulnerable during market downturns with insufficient risk resistance capabilities. Seazen Holdings still faces pressure from inventory structure adjustments.

**03 Profitability** **Real Estate Business Revenue Continues to Decline, Overall Profit Margins Remain Relatively Stable**

In the first half of 2025, Seazen Holdings achieved operating revenue of 22.1 billion yuan, down 34.8% compared to the same period last year. Real estate business revenue was 15.17 billion yuan, down 44.9% compared to the same period last year, with slower settlement. As of the end of the reporting period, Seazen Holdings had sold but unrecognized area of 11.7919 million square meters, down 38.5% compared to the same period last year.

From profitability perspective, in the first half of 2025, Seazen Holdings achieved gross profit of 5.934 billion yuan, down 19.0% compared to the same period last year. The overall gross margin was 26.85%, up 5.25 percentage points compared to the same period last year. Real estate development gross margin was 7.96%, down 2.97 percentage points from the previous year. Affected by reduced asset and credit impairment losses during the period and fair value appreciation of investment properties, Seazen Holdings' net profit for the year was 890 million yuan, down 34.6% compared to the same period last year. Net profit attributable to shareholders was 895 million yuan, down 32.1% compared to the same period last year. Net profit attributable to shareholders excluding non-recurring gains and losses was 947 million yuan, down 28.2% compared to the same period last year. The corresponding net profit margin, net profit margin attributable to shareholders, and adjusted net profit margin were 4.0%, 4.0%, and 4.3% respectively, with the core net profit margin attributable to shareholders up 0.4 percentage points compared to the same period last year.

**04 Debt Repayment** **Financing Breakthroughs Achieved, Short-term Liquidity Still Under Pressure**

On June 12, 2025, Seazen Holdings' parent company Seazen Development successfully issued a 3-year term $300 million senior unsecured bond, marking the first private real estate overseas bond in nearly three years. Subsequently, on August 1st, Seazen Holdings successfully issued a 1 billion yuan medium-term note with an issuance rate of 2.68%, and extended the debt term to 5 years.

As of the end of the reporting period, Seazen Holdings' overall average financing cost was 5.55%, down 0.37 percentage points from the end of 2024. As of the end of the first half of 2025, Seazen Holdings' interest-bearing debt totaled 52.276 billion yuan, down 2.6% from the beginning of the year, of which short-term debt amounted to 14.16 billion yuan, up 13.8% from the beginning of the year. Cash holdings were 9.18 billion yuan, down 10.8% from the beginning of the year. The cash-to-short-term debt ratio was 0.65, and excluding restricted cash, the ratio was 0.42, indicating liquidity pressure.

The net debt ratio at the end of the first half of 2025 was 54.2%, and the asset-liability ratio excluding advance receipts was 66.40%.

**05 Commercial Operations** **Wuyue Plaza Opening Scale Exceeds 16 Million Square Meters, Becoming Important Profit Structure Support**

Seazen Holdings' commercial scale expanded steadily. As of the end of the first half of 2025, Seazen Holdings had 205 Wuyue Plazas across 141 cities nationwide, with 174 opened and under management operations, covering an opening area of 16.0814 million square meters. Wuyue Plaza continues to build an operational moat for Seazen Holdings.

In terms of operating income, benefiting from the expansion of Wuyue Plaza scale and rising occupancy rates, Seazen Holdings' commercial operations income (including tax rental income) in the first half of 2025 was 6.944 billion yuan, up 11.8% year-over-year. The gross profit contribution ratio of property leasing and management business increased significantly from 57.21% in the same period last year to 77.06%, with a gross margin reaching 71.2%. The commercial segment has become the "ballast stone" of Seazen Holdings' profit structure.

During the year, Wuyue Plaza operations remained robust, with total customer traffic reaching 950 million visits, up 16.0% year-over-year. Total sales exceeded 51.5 billion yuan (excluding vehicle sales), up 16.5% year-over-year, with an average occupancy rate of 97.81%, maintaining a high level.