Greentown China Profit Craters 96%, Cancels Dividend

Edgen Stock

·Mar 31 2026, 01:01

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Key Takeaways

Greentown China (03900.HK) unveiled dire full-year 2025 results, revealing a near-total collapse in profitability and signaling deep distress within China's property sector. The developer's decision to scrap its dividend payment underscores severe cash flow pressures and a grim outlook.

Profit Vanishes: Net profit for the year ending in December plummeted 95.6% year-over-year to just RMB 70.99 million from a much higher base.
Sales Weaken: Annual revenue registered a 2.3% decline to RMB 154.966 billion, indicating persistent weakness in property sales.
Dividend Eliminated: The company cancelled its final dividend, a sharp reversal from the RMB 0.30 per share paid out in the previous year, depriving shareholders of returns.

Profit Plummets 95.6% on Weak Sales

Greentown China (03900.HK) reported a catastrophic decline in profitability for its full-year 2025 results, underscoring the severe and ongoing crisis in China's real estate market. The developer's net profit collapsed by 95.6% year-over-year, falling to just RMB 70.99 million. This sharp deterioration in earnings was driven by continued pressure on sales, with annual revenue for the year ended last December slipping 2.3% to RMB 154.966 billion. The resulting earnings per share (EPS) was a meager RMB 0.03.

Dividend Canceled as Financial Strain Intensifies

Reflecting the severe financial strain, Greentown's management announced it would not distribute a final dividend for 2025. This decision marks a significant blow to investors and reverses the previous year's policy, when the company paid a final dividend of RMB 0.30 per share. The cancellation signals a critical need to preserve cash within the company, suggesting that management anticipates continued operational challenges and tight liquidity. This move is likely to erode investor confidence not only in Greentown but also in the stability of the broader Chinese property development sector.