BRIEF: Greentown China’s profit plunges in 2025

Property developer Greentown China Holdings Ltd. (3900.HK) warned on Tuesday that it expects to report its profit plunged about 95% last year from the 1.6 billion yuan ($232 million) it reported in 2024, implying a profit of roughly 80 million yuan last year.

The company blamed the sharp decline mainly on the prolonged downturn in China’s property market. At the same time, it said it has worked to reduce its long-standing inventory, resulting in lower gross margins on revenue recognized during the year. Its profit from joint ventures and associates also declined, while asset impairment provisions further weighed on its bottom line.

Concurrently, Greentown said it continued to improve its debt structure last year and reduced the share of short-term liabilities to below 20%, a record low. Meanwhile, the company’s cash-to-short-term-debt ratio exceeded 2.5 times, also a historic high, indicating its overall financial position remains solid.

Greentown China’s shares opened higher on Wednesday and closed at HK$10.45 by the midday break, up 3.98%.

By Lee Shih Ta

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