China Resources Land’s half-year profit increased by 16.2 percent to 11.9 billion yuan, whereas Sunac’s losses decreased by 14.4 percent.

The struggling Chinese real estate sector appears to be displaying early indications of improvement, with certain builders reporting improved profits and lower deficits, backed by
government stimulus measures
and recovering consumption.

China Resources Land
The company’s net profit for the first half of the year grew by 16.2 percent compared to last year, reaching 11.9 billion yuan (US$1.66 billion), as stated by the state-run developer on Wednesday. Sales climbed by 20 percent to reach 94.9 billion yuan.

One of China’s biggest private construction companies, Sunac, established by billionaire Sun Hongbin, announced on the same day that its temporary loss decreased by 14.4 percent to 12.8 billion yuan, primarily due to reduced operational and financial expenses.

Are you curious about the most significant issues and developments happening globally? Find out the solutions with
SCMP Knowledge
Our latest platform offering handpicked content including explanations, frequently asked questions, analysis, and visual graphics, presented by our acclaimed team.

Enhanced outcomes highlight how a revival in retail spending across Mainland China and the government’s support measures for construction companies and developers have started to lay the foundation for a turnaround in the real estate sector. Just a year ago, numerous developers, such as Sunac, remained in emergency situations due to rising debts, sluggish sales, and limited access to bank funding.

CR Land’s profit increase was fueled by a 25.8 percent surge in property development sales reaching 74.4 billion yuan, making up over three-quarters of overall revenue. Income from investment properties—generated via rent and increases in real estate values,
including retail centers and workspaces
– increased by 5.5 percent to 12.1 billion yuan.

Consumption recovery
And robust retail sales enhanced profits within the mall division managed by China Resources. The Shenzhen-headquartered company reported that retail revenue from its shopping centers increased by 20.2 percent to 110.2 billion yuan, surpassing “the national overall retail sales” significantly. The operating profit margin for this segment also hit an all-time high of 65.9 percent.

However, CR Land’s residential construction operations, which account for most of its income, faced ongoing challenges as property values kept falling and buyer confidence remained low.

Interim core net profit—defined as a metric excluding unusual items—dropped by 23.8 percent to slightly less than 4 billion yuan, leading to a 6.6 percent decrease in the company’s total core net profit to 10 billion yuan.

Despite facing temporary structural adjustment issues, the share of demand driven by upgrades is gradually rising, showing an evident shift toward high-quality consumption,” stated Chairman Li Xin. “This is consistently strengthening the base for market revival and enhancing the optimistic view for the industry’s future.

CR Land announced an interim dividend of 0.2 yuan per share, remaining unchanged compared to the prior year. Its stock declined by 2.3 percent during Wednesday’s closing session, reaching HK$30.40 in Hong Kong.

The residential real estate segment at Sunac continued to face challenges. Real estate sales, which serve as the company’s primary income stream, dropped over the initial six months to 14 billion yuan, representing just half of the previous year’s figure. The proportion of overall revenue contributed by this sector also decreased from 82 percent in June 2024 to below 70 percent.

A decline in real estate sales was the primary factor causing total revenues to fall by 41.7 percent to 20 billion yuan, as reported by management, continuing a similar decrease of 41.4 percent during the same time frame last year.

The firm reduced its overall debts to 805.9 billion yuan by June 30, down from 827.7 billion yuan at the end of December. The leverage ratio, determined by dividing net debt by total equity, increased to 84.1 percent, up from 81.3 percent half a year earlier.

Sunac’s stock ended down 5 percent at HK$1.52 in Hong Kong following the release of its financial report.

More Articles from SCMP

In China, Trump’s potential imposition of tariffs on furnishings might hinder attempts to restore trade relations.

A Hong Kong official and legislator have withdrawn from Bitcoin Asia 2025, which includes Eric Trump as a participant.

Trump’s 200% tariff on rare earth materials highlights China’s influence, according to experts

The Philippines cautions China against crossing a ‘red line’ concerning the sunken vessel in the South China Sea

The original version of this article was published in the South China Morning Post (www.scmp.com), a top-tier news outlet covering developments in China and Asia.

© 2025. South China Morning Post Publishers Ltd. All rights reserved.