The year 2025 has undoubtedly marked a turning point in the current real estate sector adjustment. Throughout the year, policies continued to exert their effect. From the central government to local authorities, and from the market to individual enterprises, signals aimed at stabilizing the property market were effectively communicated and fully implemented, contributing to a halt in the market's decline and a return to stability.
Substantial breakthroughs were also achieved in resolving industry risks. Twenty-one financially distressed developers successfully restructured 1.2 trillion yuan in debt, and the critical task of ensuring project completions was comprehensively accomplished. Consequently, the industry's evolution from 'risk mitigation' towards 'stable development' has become increasingly clear.
SUNAC stands out as one of the most noteworthy benchmarks within this developmental narrative. From 2021 to the present, after navigating liquidity risks, undertaking difficult self-rescue efforts, and resolving its crisis, the company has gradually entered a new stage of operational recovery. During this period, it completed one of the most comprehensive and thorough debt restructurings in the industry and was among the first to finalize its project delivery commitments, successfully overcoming the two major challenges critical to its survival.
These achievements are clearly reflected in SUNAC's 2025 annual report. Interest-bearing debt was approximately 188.26 billion yuan, a reduction of 71.41 billion yuan year-on-year, indicating effective deleveraging. The net loss attributable to shareholders was about 12.33 billion yuan, narrowing significantly by approximately 13.37 billion yuan compared to the previous year. Against a backdrop where many distressed developers faced pressure, SUNAC's sales figures remained among the industry's leaders, underscoring its solid business foundation and comprehensive strength.
From its financials to its operations, SUNAC's tangible results fully demonstrate the company's operational resilience and signal a steady forward trajectory. Its five-year journey has not only injected valuable confidence into the sector but also provided a reference for peers seeking to overcome difficulties.
Successfully surmounting these two major challenges has established a more solid and stable foundation. The period from 2021 to 2025 involved the entire industry grappling with solutions, with the dual challenges of ensuring deliveries and resolving debt crises persisting throughout.
Among these, ensuring project completions was undoubtedly the bottom line that developers had to uphold, relating to public trust and industry confidence, and serving as a key measure of a developer's sense of responsibility and operational capability.
SUNAC consistently prioritized project delivery as its primary operational task. From 2022 to 2025, it delivered 186,000, 312,000, 170,000, and 54,000 units respectively, cumulatively delivering over 722,000 units, thereby fulfilling its corporate social responsibility through concrete action.
Now, with the peak delivery period smoothly navigated and the delivery task largely concluded, the company has transitioned from an intensive 'delivery assurance' mode back to a normal 'sales-delivery' operational model, helping steer its operations back to a healthy track.
Confronting the widespread debt repayment pressure faced by developers during this adjustment period, SUNAC resolutely advanced the restructuring of its domestic and overseas debts, achieving full completion in 2025. This directly led to significant optimization of key metrics.
SUNAC reduced its interest-bearing debt by 71.41 billion yuan in 2025 alone, bringing it down to 188.26 billion yuan, representing a total decrease of 133.45 billion yuan since the end of 2021. Through the implementation of the debt restructuring, SUNAC essentially cleared the debt at the listed company level, establishing a more robust and secure capital structure.
The innovative approach it took to resolve its debt also attracted significant industry attention. In 2025, SUNAC offered flexible and practical debt resolution options to protect creditor interests, while implementing equity structure and team stability plans to secure its foundation, thereby building a base for restoring confidence among all stakeholders and ultimately carving a path towards a multi-party win-win situation.
Having overcome these two major hurdles, an examination of the company's fundamentals reveals a set of solid assets. Despite the industry-wide trend of balance sheet contraction, SUNAC recorded impairments of 17 billion yuan in 2025, yet its net assets attributable to shareholders remained at 34.17 billion yuan. Furthermore, the company's total land bank reached 108 million square meters, with nearly 70% located in core first- and second-tier cities. These net assets and the high-quality, ample land reserve serve as ballast for SUNAC, helping it weather storms and emerge from difficulties.
With a diversified presence spanning property, cultural tourism, and services, SUNAC is accelerating into a new phase. Having successfully scaled the 'two major mountains,' SUNAC is now operating with a lighter load. Years of sustained cultivation and capability accumulation across its three core sectors—property, cultural tourism, and services—have endowed SUNAC with greater resilience and opened up more possibilities for future development.
Within the property segment, SUNAC actively pursued deeper collaboration with financial institutions and partners, achieving substantial progress in asset revitalization. In 2025, the company successfully revitalized 12 property projects, from which it expects to obtain approximately 11.2 billion yuan in funds to address existing project debts and initiate new development and construction.
Leveraging its leading product strength and project execution capabilities, the revitalized projects launched for sale by SUNAC have become exemplary models in the market, recognized for both quality and sales performance. In 2025, the cumulative sales of Shanghai One Central exceeded 22 billion yuan, securing the top position for single-project sales nationally. Projects like Beijing SUNAC One Central, Tianjin Meijiang One Central Phase II, and Wuhan Optics Valley One Central also ranked at the forefront of local high-end project sales charts. This year, SUNAC anticipates launching new products, such as those in Chongqing Bay and the Tianjin Meijiang plot. These quality revitalized projects will serve as new showcases for SUNAC's product capabilities.
The cultural tourism industry is currently undergoing a profound adjustment, with intensified competition leading to a more fragmented market landscape. SUNAC's cultural tourism operations remained relatively stable in 2025 but faced overall pressure. To adapt to market changes, this segment adhered to a strategy of proactive adjustment and active optimization, comprehensively integrating internal and external resources to seek new breakthroughs and growth drivers.
The theme park business focused on outdoor parks and live performances, enhancing immersive experiences through the integration of 'performance + commerce + setting + technology' to continuously refine its benchmark comprehensive tourism resort products. The commercial business, operating on a tourism-commerce logic, introduced tourism-oriented brands and innovative marketing activities, achieving growth in both customer traffic and sales. The snow and ice business continued to consolidate its leading industry position, with the opening of new snow venues in Zhengding and Shenzhen, bringing the total number of operational snow parks to 11. New projects were signed in Wenzhou and Hangzhou, indicating an ongoing expansion of its industry footprint.
In the property management sector, SUNAC Services persistently pursued adjustments and improvements in management quality and efficiency. In 2025, it generated revenue of 6.82 billion yuan and returned to profitability, with net profit attributable to shareholders reaching 200 million yuan. Its managed area totaled 260 million square meters. By divesting non-core regional assets and exiting some non-core cities, the company further optimized resource allocation, concentrating on core first- and second-tier cities. It also continued to make positive strides in expanding its portfolio of mid-to-high-end residential properties and large commercial enterprise clients.
A market analyst commented that operating in a volatile and challenging environment, SUNAC's five-year journey, characterized by a proactive and diligent approach, allowed it to be a frontrunner in achieving the milestones of debt restructuring and project delivery completion. This sets a strong example for other developers still navigating difficulties. As it embarks on a new developmental phase, SUNAC is increasingly focusing on accelerating the revitalization of its property projects and the gradual recovery of its operations, while simultaneously enhancing the competitiveness of its lighter-asset management businesses like cultural tourism and property services. A diversified SUNAC, backed by substantial accumulated experience, remains a company worthy of attention and anticipation.
Comments