While maintaining positive profitability, Seazen Holdings (601155.SH) is accelerating the development of new growth engines.
The company recently released its third-quarter report, showing revenue of RMB 34.371 billion and net profit attributable to shareholders of RMB 974 million for the first nine months of the year. In its residential business, Seazen Holdings achieved contracted sales of approximately RMB 15.05 billion and a sales area of 1.9591 million square meters. Meanwhile, its commercial operations surpassed RMB 10 billion in total revenue, with Wuyue Plaza serving as a critical foundation for debt security and future recovery.
Industry experts highlight that exceeding the RMB 10 billion milestone in commercial operations will strongly support Seazen Holdings' overall performance and act as a key growth driver.
**Positive Net Cash Flow Sustained** In the first three quarters, Seazen Holdings demonstrated a dual-engine growth model, balancing residential and commercial operations.
On the residential front, the company actively optimized inventory, reducing its real estate development inventory to RMB 81.9 billion by the end of Q3, down from RMB 85.3 billion in the first half. Contract liabilities also improved to RMB 43.8 billion, a decrease of RMB 4.3 billion from Q2.
Gross margin and post-tax gross margin for the period stood at 25.6% and 21.8%, up 5.4% and 4.8% year-on-year, respectively. GF Securities noted that the increasing contribution of high-margin commercial operations has stabilized and improved overall profitability.
The dual-engine strategy has ensured robust cash flow, with Seazen Holdings maintaining positive net operating cash flow of RMB 1.026 billion by Q3-end.
**Financing Expansion** This year, Seazen Holdings has made progress in both domestic and overseas financing. In September, its wholly-owned subsidiary, Seazen Global, issued USD 160 million in senior secured notes. In June, parent company Seazen Development became the first private developer in three years to secure offshore financing, issuing USD 300 million in senior unsecured bonds. Domestically, the company raised RMB 1 billion in medium-term notes in August with 2.28x oversubscription, followed by another RMB 900 million issuance in September—both fully guaranteed by China Bond Insurance and rated AAA.
Notably, backed by ample liquidity, Seazen Holdings repaid RMB 1 billion in onshore and offshore bonds in Q3 2025, maintaining its track record of timely debt servicing. Joint venture interest-bearing liabilities also declined steadily to RMB 2.513 billion by September.
**11% YoY Growth in Commercial Revenue** Looking ahead, Seazen Holdings aims to navigate industry cycles through prudent deleveraging, strong commercial operations, and sustained cash flow improvements.
Commercial operations revenue reached RMB 10.511 billion in the first nine months, up 10.82% YoY, with Q3 revenue growing 9% to RMB 3.57 billion. The segment’s gross profit contribution also rose significantly.
Expanding its footprint, Seazen Holdings opened Wuyue Plaza in Zibo and Jimo, Shandong, introducing regional and city-first brands to stimulate consumption.
By Q3-end, the company operated 205 mixed-use projects across 141 cities, with 176 leasing properties maintaining a high occupancy rate of 97.7%. Analysts project a 6% annualized rent growth for Wuyue Plaza, translating to an additional RMB 1 billion in rental income per year. Optimistic forecasts suggest commercial revenue could rise from RMB 14 billion in 2025 to nearly RMB 20 billion by 2031.
At the 2025 New Commerce Conference, Seazen Holdings unveiled the "Wuyue Five-Step Operation Method" and "Yue Chain Plan," focusing on operational efficiency and ecosystem collaboration to maximize value creation.
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