China Sandi Holdings Limited Announces Substantial Reduction in Annual Loss for FY2025

Key Points from the Announcement

• China Sandi Holdings Limited expects to record a consolidated net loss for the financial year ended 31 December 2025 (FY2025), but this loss is projected to be significantly lower compared to the previous year.
• The anticipated loss range for FY2025 is approximately RMB 500 million to RMB 650 million, marking a reduction of about 84.0% to 87.7% from the FY2024 loss of RMB 4,055.0 million.
• The primary driver behind the reduced loss is a substantial decrease in the fair value loss on investment properties, which is expected to be around RMB 305 million for FY2025 versus RMB 3,870.5 million for FY2024.
• The Board considers the Group’s overall financial position to remain stable and is cautiously optimistic about its future prospects.

Important Information for Shareholders and Investors

• Price Sensitive Information: The dramatic reduction in annual loss, primarily due to lower fair value losses on investment properties, could be viewed as a positive development by the market. This may influence share prices, especially given the scale of improvement in the Group’s financial performance.
• The Company is still in the process of finalising its consolidated annual results for FY2025. All figures mentioned are based on a preliminary review of unaudited management accounts and have not been audited or reviewed by external auditors.
• The official audited results are expected to be released on 31 March 2026. Investors should monitor this date for confirmation of the numbers and any further corporate updates.
• While the Group remains loss-making, the Board’s statement on financial stability and optimism about future prospects may signal to investors that the worst could be over for the Company, especially if investment property values stabilise.
• Investors are advised to exercise caution and not to place undue reliance on the preliminary figures. Professional advice is recommended if there are doubts or uncertainties.

Detailed Analysis and Potential Impact

The reduction in losses is primarily attributed to an improvement in the fair value of the Group’s investment properties. In FY2024, the Group booked a massive fair value loss of RMB 3,870.5 million, which severely impacted its bottom line. For FY2025, this figure is expected to drop to RMB 305 million, indicating a stabilisation or recovery in property values. This turnaround could reflect improving market conditions or changes in the Group’s portfolio.

Even though the Group will still report a net loss, the magnitude of the improvement is significant and may be interpreted as a positive signal by the market. It could also potentially lead to re-rating of the Company’s shares, especially if investors believe that this trend will continue or that the Company is turning the corner on its financial difficulties.

The Company’s leadership, headed by Chairman Guo Jiadi, has emphasised the stability of the financial position and expressed optimism for the future. This messaging, combined with the reduction in losses, could have a favourable impact on investor sentiment.

Shareholders should, however, remain vigilant until the final audited results are released. Any material changes between the preliminary and final figures could affect the share price. Moreover, the Company continues to operate at a loss, which carries risks and uncertainties.

Board Composition

• Executive Directors: Mr. Guo Jiadi (Chairman) and Mr. Wang Chao
• Non-Executive Director: Ms. Amika Lan E Guo
• Independent Non-Executive Directors: Mr. Liao Yiyi, Ms. Yu Huaxiu, and Ms. Zhang Jianchan

Conclusion

The announcement of a much reduced annual loss for FY2025 is a noteworthy event for China Sandi Holdings Limited and its shareholders. The improvement in financial performance, mainly due to a recovery in investment property values, has the potential to positively impact the Company’s share price and investor confidence. Nevertheless, shareholders and investors should await the audited results and continue to exercise caution.

Disclaimer

The information in this article is based on preliminary unaudited figures provided by China Sandi Holdings Limited. Investors should not rely solely on this article for making investment decisions. Please refer to the official audited results and consult professional advisers before acting on any information herein.

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