Kaisa Group Holdings Issues Major Profit Alert for FY2025

Key Highlights

• Significant Turnaround: Kaisa Group Holdings Ltd. expects to report a profit attributable to owners of not less than RMB50 billion for the year ended 31 December 2025. This marks a dramatic reversal from the net loss of RMB28.5 billion recorded for the year ended 31 December 2024.
• Primary Driver: The turnaround is primarily due to the recognition of a substantial gain from offshore debt restructuring during the year.
• Underlying Performance: Excluding the gains from debt restructuring, the Group is expected to record a loss for the year, attributed mainly to declining recognised revenue and increased provisions for impairment of property projects.
• Results Not Yet Audited: The announced figures are based on preliminary, unaudited management accounts. The results have not been confirmed or reviewed by independent auditors or the company’s audit committee.
• Results Announcement Date: The final audited results will be published on 31 March 2026.

Details for Investors

Kaisa Group Holdings Ltd. (“Kaisa Group” or the “Company”) has issued a profit alert in accordance with Hong Kong Stock Exchange regulations and the Securities and Futures Ordinance. Based on management’s preliminary assessment, the Company expects to deliver a profit of at least RMB50 billion for the fiscal year 2025, compared to a net loss of RMB28.5 billion in 2024.

The dramatic turnaround is primarily due to the recognition of a gain on offshore debt restructuring. This is a significant, non-operational item that has a major impact on reported earnings for the year. It is important for investors to note, however, that when these gains are excluded, the Group is still expected to post an underlying loss. This underlying loss is attributed to:

• A decline in recognised revenue, driven by challenging market conditions.
• An increase in provisions for impairment related to property projects, reflecting ongoing risks in the property sector.

As of the announcement date (24 March 2026), Kaisa Group’s consolidated financial statements for 2025 have not been finalized. The information provided is based on internal management accounts and has not yet been audited or reviewed by the Company’s independent auditors or audit committee.

Price-Sensitive Issues & Shareholder Advisory

• Shareholders and potential investors should be aware that the headline profit is largely the result of a one-off debt restructuring gain, not an improvement in core operating performance.
• The underlying business remains under pressure, with ongoing losses linked to lower revenues and increased property impairment provisions.
• These developments are likely to be price-sensitive and could have a significant impact on the Company’s share price, both due to the headline profit figure and the continuing operational challenges.

Investors are strongly encouraged to exercise caution when dealing in the securities of Kaisa Group Holdings Ltd. and to review the detailed results announcement scheduled for 31 March 2026 for a comprehensive understanding of the Group’s financial position.

Corporate Management

The announcement is signed by Mr. Kwok Ying Shing, Chairman and Executive Director, on behalf of the Board, which includes both executive and independent non-executive directors.

Disclaimer: The information presented is based on preliminary, unaudited management accounts and forward-looking statements provided by Kaisa Group Holdings Ltd. Actual results may differ. Investors should await the final audited results and consult with professional advisors before making investment decisions. The company and its directors accept no responsibility for any reliance placed on the information reported above.

View KAISA GROUP Historical chart here