9.3 billion impairment absorbs profit! Goldland's publicly issued bonds are cleared, but losses exceed 10 billion

What is the impact of the 9.3 billion impairment provision on the future debt repayment of Gemdale?

As of the end of 2025, Gemdale Group’s consolidated interest-bearing debt balance is approximately 67.03B yuan, a decrease of 8.82% year-on-year.

On April 7, reports indicated that Gemdale Group has completed the repayment of the principal and interest for two corporate bonds, “21 Gemdale 03” and “21 Gemdale 04,” totaling about 522 million yuan. After these bonds were repaid, Gemdale Group’s public market debt has been fully cleared.

Debt repayment and maintaining financial security have been key priorities for Gemdale Group in recent years.

In its recently disclosed financial report, Gemdale Group revealed efforts made over the past year to service its debt. As of the end of 2025, the company’s consolidated interest-bearing debt was about 67.03B yuan, down 8.82% year-on-year. Of this, the debt due within one year amounts to 30.87B yuan, including 460 million yuan in credit bonds, 30.2B yuan in bank loans, and 209 million yuan in non-bank financial institution loans.

This also means that 2025 remains a major year for Gemdale Group’s debt repayment, with banks as the main creditors. To meet these obligations, Gemdale’s operations need to be healthier and cash flow more abundant, but from the 2025 annual report, several core indicators still show no signs of improvement.

In 2025, Gemdale Group achieved revenue of 35.86B yuan, a decrease of 52.41% year-on-year; net profit attributable to the parent turned from a profit of 6.12B yuan last year to a loss of 13.28B yuan; and net cash flow from operating activities plummeted 99.88% to 16 million yuan.

In the annual report, Gemdale attributed the decline in revenue to “reduction in the scale of real estate project transfers.” In recent years, the company’s sales scale has decreased, with last year’s real estate transfer income at 23.89 billion yuan, down 60.2% year-on-year, and the gross profit margin on transfers fell by 6.18 percentage points from the previous year to 7.93%.

Gemdale Fengshengli, Wu Dian / Photo

Alongside worsening operations, impairment provisions continue to erode profits.

In the second half of 2025, Gemdale Group made impairment provisions totaling 7.03B yuan, including 4.51B yuan in credit loss provisions, 2.5B yuan in inventory write-downs, and 27M yuan in goodwill impairment. This resulted in a reduction of 5.91 billion yuan in net profit attributable to the parent.

The “International Financial News” reporter noted that in the first half of last year, Gemdale Group made impairment provisions of about 2.28B yuan, reducing net profit attributable to the parent by 1.66B yuan. Summing the two halves, the total impairment for 2025 reached 9.32B yuan, impacting net profit attributable to the parent by 7.58B yuan.

Clearly, even though the company has begun transforming—venturing into project agency, holding-type property operations, property services, and other fields—the shadow of the real estate market downturn still looms over this property developer.

Last year, Gemdale Group’s project agency business grew rapidly, with a total new signed service area of 15.31 million square meters during the reporting period, a year-on-year increase of 59%. By the end of the reporting period, the company’s project agency operations had expanded to over 70 cities nationwide, with a total signed management area of 53.62 million square meters.

In terms of holding-type property operations, Gemdale Group signed new agreements for over 320k square meters in 2025, with a commercial project occupancy rate of 95%, and a 5% year-on-year increase in foot traffic on the same basis; the total new and renewed lease area for office buildings was nearly 220k square meters for the year. Regarding property services, as of the end of the reporting period, Gemdale Smart Services managed approximately 268 million square meters.

In terms of performance, in 2025, revenue from property management services was 8.06 billion yuan, up 3.23% year-on-year, while income from property leasing and other sources was 320k yuan, down 15.69% year-on-year.

Overall, the real estate development business, which contributed 66.62% of the performance, remains Gemdale’s key focus. Last year, the company aligned with favorable housing policies, promoting the research and implementation of four-generation residential and healthy renovation projects to enhance product strength. It also seized market structural opportunities by acquiring two scarce low-density villa land parcels in Songjiang District, Shanghai, and Linping District, Hangzhou, aiming to optimize and increase new projects.

On the inventory side, the company actively adjusted its asset structure and increased efforts to revitalize existing assets through multiple channels such as “land swaps, commercial-to-residential conversions, inventory housing acquisitions, and self-held to for-sale conversions,” completing 22 revitalization projects during the year. For example, it secured self-owned residential land in Hangzhou, converted commercial land to residential land in Zhanjiang, and obtained approval to convert self-held residential projects into for-sale in Tianjin.

As of the end of the reporting period, Gemdale Group’s total land reserves were approximately 24.72 million square meters, with equity land reserves of about 10.59 million square meters, with roughly 79% located in first- and second-tier cities. In 2026, the company plans to start 460k square meters of new projects and complete 1.71 million square meters.

Gemdale Cuiyu Yuan Villa, Sun Wanqiu / Photo

Reporter Wu Dian

Text Editor Sun Wanqiu