Key Takeaways:
R&F Properties (2777.HK) reported a narrowed full-year net loss of RMB 16.425 billion for fiscal 2025 as revenue plunged 38.2 percent.
The results, disclosed in a filing with the Hong Kong Stock Exchange on March 31, reflect the persistent challenges facing China’s heavily indebted property developers.
Revenue for the year fell to RMB 10.942 billion from RMB 17.709 billion in the prior year. The reported loss per share was RMB 4.3773. The company did not declare a final dividend, extending its streak of no payouts to four consecutive periods since its 2024 interim results.
Shares of R&F Properties fell 5.2% in Hong Kong trading following the announcement. The developer's performance underscores the ongoing liquidity crisis in China's real estate sector, which has seen numerous defaults and restructurings.
The Guangzhou-based developer's narrowed loss comes after a preliminary warning in January, where it had guided for a net loss around RMB 16.6 billion. The final figure represents a slight improvement on that estimate but still highlights the severe downturn in property sales and asset values.
R&F's struggles are emblematic of the broader sector's woes, which have been a significant drag on the Chinese economy. Competitors like China Evergrande Group (3333.HK) and Country Garden Holdings (2007.HK) are undergoing complex debt restructuring processes, impacting global investor confidence. The company did not disclose key operating metrics such as contracted sales or current debt ratios in the announcement.
The continued losses and revenue decline signal that R&F's path to recovery remains fraught with difficulty. Investors will be closely watching for any announcements regarding debt restructuring progress or asset sales in the coming months.
This article is for informational purposes only and does not constitute investment advice.
