Hong Kong – Kaisa Group released its audited results for the year ended 31 December 2025, highlighting a sharp profit rebound following completion of its offshore debt restructuring.
Key Financials • Revenue fell 17.8% to RMB9.50 billion, with property sales contributing 64.7% (RMB6.14 billion). • Gross profit rose 89.9% to RMB451.84 million; gross margin expanded to 4.8% (2024: 2.1%). • Reported profit swung to RMB52.33 billion from a RMB29.23 billion loss in 2024, driven primarily by an RMB85.37 billion gain on debt restructuring. • Contracted sales (incl. JVs/associates) declined 17.9% to RMB5.54 billion on 350,978 sq m of sold GFA (-36.6%). • No final dividend was declared.
Balance Sheet Highlights • Total borrowings contracted to RMB83.80 billion (2024: RMB135.07 billion); current portion fell to RMB36.15 billion. • Cash and bank balances stood at RMB544.69 million versus RMB697.65 million a year earlier; restricted cash totalled RMB1.05 billion. • Net current assets turned positive at RMB35.22 billion (2024: net current liabilities RMB51.02 billion). • Equity rebounded to RMB19.45 billion from a negative RMB31.74 billion, lifting the adjusted liabilities-to-assets ratio (ex-contract liabilities) to 88.6% (2024: 117.2%).
Cost & Expense Dynamics • Selling and marketing expenses contracted 36.7% to RMB287.02 million. • Administrative expenses fell 23.8% to RMB1.06 billion. • Net finance costs rose 37.2% to RMB2.67 billion, reflecting lower interest capitalisation. • Impairment charges on financial assets surged to RMB8.08 billion (2024: RMB5.53 billion). • Net other losses widened to RMB18.82 billion, mainly due to a RMB19.99 billion write-down on inventory.
Operational Snapshot • Land bank totalled 19.1 million sq m across 41 cities, with 64.2% located in the Greater Bay Area. • Projects under development numbered 54, aggregating 5.9 million sq m. • Delivered 8,592 housing units across 18 projects during the year.
Liquidity & Covenants At year-end, RMB30.54 billion of borrowings were in default or cross-default. Management’s going-concern assessment relies on extensions, refinancing, sales execution and cost controls; auditors flagged a material uncertainty but issued an unqualified opinion.
Post-Balance-Sheet Events • March 2026: Agreed disposal of a 30.1210% effective stake in Qinghai Pharmaceutical to listed subsidiary Kaisa Health for RMB21.60 million, to be settled in shares. • March 2026: Secured noteholder consent allowing interest on new notes to be paid in shares and amended the maturity of 5% senior notes due 2027.
Outlook Management expects continued policy support for China’s property sector and intends to focus on project delivery, urban-renewal opportunities and further cost optimisation while exploring new financing models for commercial and new-economy assets.
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