Performance Overview For the year ended 31 December 2025, R&F Properties reported revenue of RMB10.94 billion, down 38.20 % year-on-year. The decline was driven by a 34 % drop in property-development revenue to RMB7.63 billion and a 61 % slide in hotel-operation revenue to RMB1.71 billion following the derecognition of hotel subsidiaries in late-2024. Rental income fell 24 % to RMB0.63 billion. The company delivered 1.07 million sq.m. of properties during the year, 37 % lower than 2024.
Profitability Cost of sales decreased 32 % to RMB12.57 billion, yet the group recorded a gross loss of RMB1.63 billion after recognising RMB3.12 billion in inventory impairment. Excluding this charge, the property-development gross margin improved to 8.0 % (2024: 4.4 %). Other income and other losses combined resulted in a net expense of RMB0.27 billion, markedly narrower than the RMB3.42 billion loss a year earlier. Selling and marketing costs fell 31 % to RMB0.74 billion, while administrative expenses edged down 1 % to RMB3.41 billion. Net finance costs declined 16 % to RMB4.95 billion. Overall, the attributable net loss narrowed to RMB16.43 billion from RMB17.71 billion in 2024, equivalent to a basic loss per share of RMB4.3773.
Balance-Sheet and Liquidity Total assets stood at RMB268.87 billion, with cash and restricted cash of RMB3.06 billion. Current liabilities exceeded current assets by RMB47.01 billion, and total equity attributable to owners turned negative at RMB4.11 billion. Aggregate borrowings amounted to RMB99.37 billion; 94 % (RMB93.39 billion) mature within 12 months. Non-RMB debt represented 33 % of the total. As of the reporting date, RMB36.61 billion of borrowings were past due, triggering cross-defaults on RMB84.22 billion.
Debt Restructuring Progress Offshore: A scheme of arrangement launched in December 2024 to restructure three tranches of USD senior notes won support from over 77 % of creditors by December 2025. Options offered include a 5 % cash buy-back, debt-to-equity swap, new notes at a 50 % haircut, or new 10-year notes. The company aims to complete the scheme in 2026. Onshore: A holistic domestic-bond restructuring combining cash repurchase, asset swaps and long-term extensions is under way. In November 2025, holders of a RMB1.68 billion bond approved the plan; additional meetings are pending.
Auditor’s Disclaimer BDO Limited issued a disclaimer of opinion, citing multiple material uncertainties related to going concern, including negative working capital, large-scale defaults, ongoing litigation and dependence on successful debt-restructuring outcomes.
Operational Metrics • Contracted sales in 2025 totalled RMB14.21 billion on 1.87 million sq.m., with 59 % generated in tier-1 and tier-2 cities. • Land bank measured 45.86 million sq.m. in GFA, of which 34.75 million sq.m. is saleable. • Investment-property portfolio comprises 3.02 million sq.m.; hotels in operation number 22 with 7,513 rooms.
Outlook Management targets completion of the offshore scheme, further onshore bond resolutions and continued cost controls in 2026 while monitoring sales stability, liquidity and engagement with creditors.
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