Despite the ongoing adjustment in China's real estate sector, Hangzhou Binjiang Real Estate Group Co.,Ltd. has demonstrated remarkable resilience, achieving record-high performance in the first half of 2025. The company's strategic focus on Hangzhou's mid-to-high-end property market and increased investment in the region have driven its outperformance.
In H1 2025, Binjiang reported operating revenue of 45.449 billion yuan, surging 87.8% year-on-year, with net profit reaching 2.692 billion yuan, up 120% YoY. Notably, its H1 earnings surpassed peak levels from 2020-2021, setting a new historical record. The company's gross margin improved to 12.24%, a 2.67 percentage point increase YoY, translating to 5 billion yuan in after-tax gross profit (+138% YoY).
Binjiang's sales resilience stands out in the sector. From January-July 2025, contracted sales reached 61.6 billion yuan (-6% YoY), significantly better than the 15% decline among top 30 developers. The company ranked 10th nationally and 1st among private developers in CRIC's H1 2025 sales ranking, with 52.75 billion yuan in sales.
The company's success stems from its deep roots in Hangzhou's premium property market, where it maintains average selling prices above 35,000 yuan/sqm since 2020. As of June 2025, Binjiang held 101.34 billion yuan in presale proceeds awaiting settlement, ensuring future revenue visibility.
Hangzhou's robust economic fundamentals support Binjiang's growth. The city's GDP reached 2.19 trillion yuan in 2024 (ranked 8th nationally), with strong private sector activity and continuous population inflow. The residential market shows vitality, with August 2025 inventory turnover at 12 months (vs. 17.1-month national average) and secondary market transactions up 17% YoY.
Binjiang has aggressively expanded its land bank in Hangzhou, with local reserves now accounting for 81% of its total 9.9363 million sqm portfolio. The company's investment intensity rebounded to 0.63 in H1 2025 after years below 0.4.
Financially, Binjiang maintains a conservative leverage profile with 57.8% asset-liability ratio (after presales deduction) and 7.03% net gearing. Its average financing cost declined to 3.1% as of June 2025, with 97.9 billion yuan in unused credit facilities providing ample liquidity. The stock has nearly tripled since early 2022, recently hitting an all-time high of 12.8 yuan/share.
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