Amidst Forecasted Losses, 20 Real Estate Firms Show Profits Defying Trends
Table of Contents
You might want to know
- What factors enabled 20 real estate companies to remain profitable while others faced significant losses?
- How have specific strategies assisted certain firms in achieving remarkable profit margins?
Main Topic
The real estate sector has faced challenging times, particularly in the first half of 2025, with a primary theme of anticipated losses. Despite unfavorable market conditions, a remarkable trend emerged as 20 companies managed to defy the odds and report profits. Data from Wind shows that by July 17, 2025, 67 firms listed on the A-shares had issued their performance forecasts for the first half of the year. Out of these, 47 experienced varying degrees of losses. Notable firms like Vanke, China Overseas Land & Investment, and Greenland Holdings projected losses exceeding 20 billion yuan.
Amidst these downturns, there are distinct categories of companies that posted profits. A category includes companies with a significant development scale, indicating their product competitiveness. Another category consists of smaller firms achieving favorable financial performance through asset transfers; however, these cases are atypical. Tianbao Infrastructure and Deepen Development lead as examples with significant profit margins.
Among the significant loss reportees, Vanke is set to lose approximately 100 billion to 120 billion yuan. Other top contributors to losses include China Fortune Land Development and Gemdale Corporation. In stark contrast, Tianbao Infrastructure emerged as a leader in growth, projecting a net profit increase of 1581.80% to 2329.27% over the previous year, mainly due to a reversal of land appreciation tax by its wholly-owned subsidiary. Similarly, Deepen Development's net profit is expected to rise significantly by 1411.70% to 2034.17% due to increased profitability from its real estate projects during the period.
Besides, companies like Guangdong Macro, Urban Construction Development, and Zhujiang Company exceeded a 100% growth rate in net profit forecasts. A prominent player, the Binjiang Group, who anticipates a net profit rise between 40% and 70%, cites the increased delivery volume of its projects as a critical factor driving profits. Notably, the group demonstrated higher flexibility by capturing market opportunities effectively.
Compounding upon these companies, Dayuecheng, having turned its loss into a gain, cites increased year-on-year gross profit margins and an expanded resource settlement scale. Urban Construction Development follows a similar trajectory, declaring robust profitability driven by increased project delivery and investment returns from equity stakes.
This key insight significantly impacts the understanding of market adaptability and strategic execution in the real estate sector. Both improved product delivery and financial maneuvers show resilience in market adaptation, portraying a blueprint for success amid adversity.
Key Insights Table
| Aspect | Description |
|---|---|
| Surviving Firms | 20 firms with positive net profits against a general industry downturn. |
| Major Losses | Vanke and others report significant projected losses, over 20 billion yuan. |
| Profit Drivers | Supplementary income through land tax reversals and effective project completion. |
| Growth Example | Tianbao Infrastructure with an impressive profit hike due to strategic tax handling. |
Afterwards...
Moving forward, the real estate market continues to face volatility. A strategic evaluation of asset-value preservation, alongside capturing favorable opportunities within urban growth regions, can pave a path for greater stability and profitability. Thus, emphasizing the importance of tailored strategic planning and market-awareness.