Property developer Kaisa Group Holdings Ltd. (1638.HK) on Tuesday reported its revenue fell 17.8% last year to 9.5 billion yuan ($1.38 billion), as it recorded a profit of 52.56 billion yuan, reversing a loss in 2024.
The company’s return to profitability owed primarily to 85.37 billion yuan in gains related to its debt restructure, though those gains were non-cash items. Following the restructuring, the company’s interest-bearing debt stood at 84.8 billion yuan at the end of last year — a sharp reduction of 50 billion yuan. However, its cash totaled just 1.6 billion yuan at the end of the year, down 33% from a year earlier.
Kaisa and its joint ventures reported contracted property sales last year of about 5.54 billion yuan, down 17.9% year-over-year. Its sales area for the year totaled 350,000 square meters, down 36.6% from 553,000 square meters in 2024.
Kaisa’s shares opened up 1% at HK$0.09 on Wednesday. The stock is down almost 60% from its 52-week high.
By Lau Chi Hang
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