GREENTOWN CHINA issues a profit warning, expecting a decline of approximately 90% in profit attributable to shareholders for the interim period
Greentown China issued a profit warning, expecting that the profit attributable to shareholders for the mid-2025 period will decline by approximately 90%, mainly due to uneven delivery schedules and a year-on-year decrease in area and revenue recognized in the first half of the year. In addition, the company will recognize related asset impairment losses, affecting shareholder profits. Nevertheless, the group has optimized its debt structure, with the proportion of short-term liabilities falling to a historical low, ample cash reserves, and a cash-to-short-term debt ratio exceeding 2.5 times, indicating overall stable operations
According to the Zhitong Finance APP, Greentown China (03900) announced that it expects the profit attributable to shareholders for the mid-2025 period to decrease by approximately 90% compared to RMB 2.045 billion in the same period of 2024. This is mainly due to the uneven distribution of the delivery schedule in the first and second halves of 2025, with a year-on-year decrease in the area transferred in the first half and a year-on-year decline in revenue. In addition, the company continues to actively promote inventory destocking this year, and it will recognize related asset impairment losses for the mid-2025 period, which will further impact the profit attributable to shareholders.
In the first half of the year, the group continued to optimize its debt structure, reducing short-term liabilities, with the proportion of short-term debt falling below 20%, reaching a historical low. At the same time, cash reserves are abundant, with a cash-to-short-debt ratio of over 2.5 times, setting a new historical high, ensuring overall operational safety and stability
