Guangzhou R&F Properties Issues Profit Warning for FY2025: Significant Net Loss Expected

Key Highlights

• Guangzhou R&F Properties Co., Ltd. has issued a profit warning for the full year ended 31 December 2025.
• The Group anticipates a net loss of approximately RMB 16.6 billion for FY2025.
• This figure represents a slight improvement compared to the net loss of RMB 17.789 billion reported for FY2024.
• The company attributes the anticipated loss to:
  • Continued downturn in the PRC real estate market, leading to decreased revenue from property development.
  • Impairment provisions made for properties under development, completed properties held for sale, and other fixed assets.

Details and Analysis

Guangzhou R&F Properties Co., Ltd. (hereafter “the Company”) and its subsidiaries (“the Group”) have announced that, based on a preliminary review of their unaudited management accounts, the Group expects to record a substantial net loss for the year ended 31 December 2025.

According to the announcement, the forecasted net loss is approximately RMB 16.6 billion. While this is a reduction in losses compared to the previous year’s net loss of RMB 17.789 billion, it still signals ongoing financial difficulties for the company.

The losses are mainly attributed to:

1. Industry Downturn: The persistent decline in the real estate sector in the People’s Republic of China (PRC) continues to have a severe impact on the Company’s operations, with a marked decrease in revenue from property development activities.
2. Impairment Provisions: The Group has made significant impairment provisions on properties under development, completed properties held for sale, and other fixed assets. These provisions are necessary under accounting standards to reflect the reduced value of these assets in light of market conditions.

Important Information for Shareholders and Investors

• Price-sensitive Information: This profit warning is a major development and is considered inside information under Hong Kong’s Securities and Futures Ordinance. The anticipated loss may have a material effect on the share price of the Company.
• Unaudited Financials: The figures disclosed are based on unaudited management accounts and have not yet been reviewed or audited by the Company’s external auditor. Final numbers may be subject to adjustments.
• Upcoming Results Announcement: Shareholders and potential investors are advised to review the Group’s official results announcement for FY2025, which is expected to be published on 31 March 2026. This will provide audited figures and potentially further management commentary on the results.
• Caution Advised: The Company’s Board specifically advises shareholders and investors to exercise caution when dealing in the Company’s securities due to the uncertainty and volatility that may arise from this announcement.

Corporate Governance

The announcement is signed by Li Sze Lim, Chairman of Guangzhou R&F Properties Co., Ltd. The Board comprises executive directors Dr. Li Sze Lim, Mr. Zhang Hui, Mr. Xiang Lijun, and Mr. Zhao Feng; non-executive directors Ms. Zhang Lin and Ms. Li Helen; and independent non-executive directors Mr. Zheng Ercheng, Mr. Ng Yau Wah, Daniel, and Mr. Wong Chun Bong.

Conclusion

The anticipated heavy net loss for FY2025, while slightly narrower than the prior year, underscores the ongoing challenges faced by Guangzhou R&F Properties in the current real estate climate. The announcement is highly price-sensitive and investors should closely monitor subsequent disclosures, especially the audited results due in March 2026.

Disclaimer: This article is based on information disclosed by Guangzhou R&F Properties Co., Ltd. as of 31 March 2026. The financial figures are preliminary and unaudited, and may change following the completion of the audit process. This article does not constitute investment advice. Investors are advised to exercise caution and consult their financial advisers before making investment decisions.

View R&F PROPERTIES Historical chart here