Only 1 out of 27 firms turns a profit, signaling China’s property market has yet to bottom out.

(BEIJING, 22nd) China’s property market continued to weaken last year, with both sales volume and value declining. According to Chinese media estimates, among 27 listed developers that have released earnings forecasts for 2025, only industry leader Poly Developments managed to remain profitable, while the rest posted losses. The total disclosed losses have exceeded RMB 60 billion (about RM34.85 billion).

Data from the National Bureau of Statistics show that sales of newly built homes in 2025 totaled 880 million square meters, down 8.7% year-on-year, while sales value fell 12.6% to RMB 8.4 trillion (about RM487.93 billion). Property investment, new construction starts, and completed floor space also declined by 17.2%, 20.4%, and 18.1% respectively.

Barely staying profitable

According to Yicai, among the 27 A-share listed developers that have released earnings forecasts, all but Poly Developments reported losses. Some companies, after years of weak performance, are edging closer to insolvency and face potential delisting risks.

Wind data show that as of Jan 20, only Poly Developments recorded a positive net profit. Combined losses among the disclosed developers are estimated at between RMB 47.55 billion and RMB 62.46 billion (about RM27.62 billion to RM36.28 billion).

Poly Developments reported revenue of about RMB 308.26 billion in 2025, down 1.09% year-on-year, while net profit attributable to shareholders plunged 79.49% to about RMB 1.03 billion—barely remaining in the black.

Other developers remain deeply in the red. China Fortune Land Development is expected to widen its loss to between RMB 16 billion and RMB 24 billion in 2025, while Greenland Holdings forecast losses of RMB 15.9 billion to RMB 18.95 billion. Greenland has accumulated losses of more than RMB 40 billion over the past three years.

Multiple pressures on profitability

Several other listed developers are also expected to post significant losses, reflecting a sector-wide downturn that has persisted since 2022. Analysts cited low-margin project settlements, impairment provisions during the market adjustment, rising interest expenses, and prolonged sales declines as key factors.

Despite continued policy support, the recovery in China’s property market remains limited. Prolonged losses could further weaken developers’ cash flow, credit profiles, and balance sheets, increasing the risk of delisting. China Fortune Land Development has already warned that its shares may be subject to delisting risk alerts.