[Inner Property Stocks 1109 Earnings] China Resources Land's net profit last year decreased by 0.5% to 25.4 billion RMB, with the final dividend reduced by 13.7% to 0.966 RMB per share

China Resources Land (01109)
Announces annual results. The profit attributable to shareholders for last year was 25.42 billion yuan (RMB, same below), a year-on-year decline of 0.5%. The core net profit was 22.48 billion yuan, down 11.4%. Earnings per share were 3.56 yuan, with a final dividend of 0.966 yuan, a decrease of 13.7%.

During the period, the consolidated revenue of China Resources Land was 281.44 billion yuan, an increase of 0.9% year-on-year. Among them, the revenue from development and sales business was 238.16 billion yuan; the revenue from operational real estate rental business was 25.44 billion yuan, and the revenue from light asset management service business was 17.83 billion yuan. The total income from recurring businesses was 43.28 billion yuan, an increase of 3.7%, accounting for 15.4% of total revenue.

The group achieved a gross profit of 59.74 billion yuan, with a consolidated gross profit margin of 21.2%, down 0.4 percentage points. The gross profit margin for the development and sales business was 15.5%, down 1.3 percentage points; the gross profit margin for the operational real estate rental business improved by 1.8 percentage points year-on-year to 71.8%; the operational management efficiency of Vanke Life drove the gross profit margin to increase by 2.5 percentage points year-on-year to 35.5%.

Achieved property contracted sales of 233.6 billion yuan, down 10.5%

China Resources Land achieved property contracted sales of 233.6 billion yuan, ranking third in the industry, a decrease of 10.5%, with a contracted area of 9.22 million square meters, down 18.6%. As of the end of 2025, the locked-in unrecognized revenue is 164.58 billion yuan, of which 123.48 billion yuan is expected to be recognized this year.

Last year, the group added land reserves with a planned construction area of 3.39 million square meters. As of the end of last year, the total land reserve was approximately 46.73 million square meters.

As of the end of 2025, China Resources Land’s total borrowings were 281.47 billion yuan, with bank balances and cash of 116.99 billion yuan, a net interest-bearing debt ratio of 39.2%, and a weighted average cost of debt financing decreased by 39 basis points to 2.72% compared to the end of 2024, maintaining the lowest level in the industry.

Looking ahead to the 14th Five-Year Plan, the group will fully upgrade its strategic positioning, aiming to “create a world-class urban investment and development operator,” firmly practicing three major operational policies—“liberate thoughts, innovate transformation, and pursue comprehensive high-quality development,” “effective quality improvement and reasonable growth in quantity,” “profitable revenue and cash-generating profits,” through the “three growth curves” working efficiently in synergy to reshape the new competitive advantage in the industry and build a solid foundation for high-quality development.

The three growth curves are:

• First growth curve: Development and sales business, solidifying the performance base.
• Second growth curve: Operational real estate rental business, activating sustainable growth momentum.
• Third growth curve: Light asset management service business, creating strong growth poles.

To promote the new development pattern and achieve strategic elevation goals, focus will be placed on forging two major support systems of “strategic-led precise investment” and “lean operational management,” and fully activating three major development engines: in the asset and capital circulation dimension, accelerating the materialization of asset management operations, leveraging REITs for expansion and multi-strategy funds to close the value loop of “investment, financing, management, and exit”; in the technology and innovation dimension, deeply advancing the “AI+” special action to empower the entire industry chain through digitization, driving iterative improvements in smart construction and operational models; in the organization and incentive dimension, advancing a new round of organizational change, continuously stimulating internal vitality to ensure efficient implementation of strategies.

Source: China Resources Land announcement

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