According to a research report, statistics show that 50 sample real estate companies achieved operating revenue of 1,204.9 billion yuan in the first half of 2025, down 16.1% year-on-year. Among them, central state-owned enterprises, private enterprises, and mixed-ownership real estate companies recorded growth rates of +4.9%, -32.1%, and -26.1% respectively. The gross margin stood at 11.68%, declining 0.29 percentage points compared to the full year 2024. The industry gross margin is expected to have emerged from the rapid decline phase and entered a bottoming-out stage. On the sales front, real estate companies continue to diverge, with leading improvement-oriented companies showing resilience against the trend. On the investment side, companies adopt a sales-driven investment approach, focusing on core areas of core cities, with land acquisition intensity showing signs of recovery.
**Performance Analysis: Real Estate Company Performance Continues to Diverge, Gross Margin Inflection Point May Be Approaching**
For the 50 sample real estate companies in H1 2025: ①Operating revenue reached 1,204.9 billion yuan, down 16.1% year-on-year, with central state-owned enterprises, private enterprises, and mixed-ownership companies recording +4.9%, -32.1%, and -26.1% respectively; ②Net profit attributable to shareholders showed losses of 87 billion yuan, representing 39.0% more losses compared to the same period last year. Central state-owned enterprises maintained positive profitability, while private enterprises posted losses of 97.7 billion yuan and mixed-ownership companies lost 9.8 billion yuan; ③Gross margin was 11.68%, down 0.29 percentage points from the full year 2024, with industry gross margin expected to have exited the rapid decline phase and entered a bottoming-out stage; ④Sales and administrative expense ratio was 4.89%, down 0.62 percentage points from the full year 2024, continuing cost reduction and efficiency improvement efforts; ⑤Based on prudent principles, real estate companies continued to make impairment provisions, with Vanke A, Greentown China, and China Resources Land each recording inventory impairments exceeding 1 billion yuan in H1 2025.
**Operations: Core City Markets Perform Well, Leading Real Estate Companies Focus Investment and Sales Efforts**
On the sales front, TOP100 real estate companies continued the declining trend in H1 2025, with total sales amount reaching 1,782 billion yuan, down 11% year-on-year. Real estate companies continue to diverge, with leading improvement-oriented companies showing resilience against the trend. C&D International Group and China Jinmao achieved positive year-on-year growth. The number of private enterprises among TOP30 decreased from 21 in 2020 to 7 in H1 2025.
On the investment side, real estate companies adopt sales-driven investment strategies, focusing on core areas of core cities, with land acquisition intensity showing recovery. The land acquisition intensity of 14 typical real estate companies from 2021 to H1 2025 was 0.47, 0.31, 0.29, 0.21, and 0.36 respectively. China Jinmao, C&D International Group, Binjiang Group, and Greentown China all had land acquisition intensity exceeding 0.6.
**Assets: Real Estate Companies Control Asset-Liability Scale, Improve Asset Liquidity**
For 16 typical real estate companies in H1 2025: ①Balance sheets continued to contract, with total assets of 10,187.5 billion yuan, down 2.9% from the end of 2024; interest-bearing debt reached 2,714.6 billion yuan, up 0.4% from the end of 2024; asset-liability ratio was 71.5%, down 0.8 percentage points from the end of 2024. ②Short-term debt repayment still faces certain pressure, with overall short-term interest-bearing debt at 30.4%, down 1.8 percentage points from the end of 2024. ③Average financing cost was 3.63%, down 30 basis points from the full year 2024. China Merchants Shekou, Poly Developments, China Overseas Land & Investment, and China Resources Land had financing costs in the industry's lowest range. ④Improvement-oriented real estate companies have higher asset liquidity. C&D International Group (8.0%), Binjiang Group (12.8%), and Greentown China (14.9%) had completed inventory as a percentage of total inventory below 15% in H1 2025. Four companies - C&D International Group, Binjiang Group, Poly Developments, and China Resources Land - had asset turnover rates exceeding 65% in H1 2025.
**Investment Recommendations: Recommend Leading Central State-Owned Enterprises and Improvement-Oriented Real Estate Companies**
The analysis indicates that the current real estate market shows divergent trends between new and existing homes. High-quality new residential projects in core areas of core cities demonstrate good sales volume and price performance, creating pressure on older projects and existing homes. Existing homes mostly adopt "price-for-volume" strategies, with prices in a gradual decline state. Real estate companies with normal production and operations actively liquidate old inventory while supplementing high-quality land reserves with good liquidity, balancing turnover speed and profitability.
In the context of housing entering the stock era, competition among real estate companies focuses on asset quality, product quality and services, and brand influence. The report recommends leading real estate companies that continue land acquisition in core areas of core cities, including Greentown China (03900), C&D International Group (01908), Binjiang Group (002244.SZ), China Overseas Land & Investment (00688), and C&D Inc. (600153.SH).
**Risk Warnings**
Policy effects may not meet expectations, real estate company liquidity risks may intensify, and market confidence may fall short of expectations.