Overseas Chinese Town: Losses are projected to expand to 14.496 billion yuan by 2025, with only one new land reserve added throughout the year.

On March 30, China Overseas City A (000069.SZ) disclosed its 2025 annual report.

Financial data shows that in 2025, China Overseas City’s operating revenue was approximately RMB 31.381 billion, down 42.32% year over year. Net profit attributable to shareholders of the listed company was approximately -RMB 14.496 billion, down 67.35% year over year. Net profit attributable to shareholders of the listed company after deducting non-recurring gains and losses was -RMB 14.386 billion, down 62.92% year over year. Net cash flow from operating activities was approximately RMB 12.5 billion, up 133.13% year over year. Total assets were approximately RMB 280.3 billion, down 13.51% year over year. Net assets attributable to shareholders of the listed company were approximately RMB 38.723 billion, down 27.2% year over year.

Regarding the reasons for the loss, China Overseas City explained in the annual report that the main reasons for the worsening performance were that, according to the company’s annual operating strategy, it proactively adapted to changes in the market environment, and through asset transfers and other measures, made every effort to help dispose of existing inventory businesses and improve cash flow. The related transactions resulted in losses, and the amounts of project-recognition revenue and gross margin declined year over year, among other factors.

As of the end of 2025, the total amount of interest-bearing liabilities of China Overseas City was RMB 118.5 billion, of which medium- and long-term borrowings accounted for 69%.

In 2025, China Overseas City added only one land-reserve project throughout the year.

The project is named the Chongqing Shapingba Xiaolongkan project. The planned land-use purpose is residential. The land area is 18,002 square meters. The total permitted building area is 52,806 square meters. The total land consideration is approximately RMB 457 million.

In terms of real estate business, during the reporting period, the company累计 achieved signed sales volume of 1.206 million square meters and signed sales amount of RMB 17.73 billion.

For the integrated tourism segment, in 2025, operating revenue was approximately RMB 21.371 billion, accounting for 68.1%. Revenue from the real estate industry was approximately RMB 9.848 billion, accounting for 31.39%.

Regarding its outlook for future development, China Overseas City stated in the annual report that it will improve the quality and effectiveness of market-oriented operations and reshape the core competitiveness of its culture-and-tourism (cultural tourism) business. This includes strengthening product iteration and empowering with technology to enhance core competitiveness. It also includes coordinating efforts to improve the quality and efficiency of existing inventory and accelerating the layout for incremental expansion. In the real estate segment, it will optimize the allocation of resources and promote high-quality, steady development of this business segment.

However, China Overseas City also warned in its annual report about potential risks the company may face.

In terms of performance risks, due to factors such as market fluctuations, there is some uncertainty in the sales and profitability levels of real estate projects. The space for profitability faces pressure from narrowing, which will bring challenges to the company’s overall operating performance. The culture-and-tourism business is susceptible to factors such as consumption capability and travel willingness, which may cause fluctuations in passenger flow and operating revenue, thereby affecting the overall stability of profitability.

In terms of financial risks, the real estate business requires large capital investments and has a long development cycle, which calls for higher requirements for centralized management of funds. If changes in the industry environment lead to slower sales and cash collections, it may result in phased liquidity pressure. The culture-and-tourism projects involve large investment scales and long investment payback periods. If the financing structure and project operation cycle are not adequately matched in a reasonable manner, it may create short-term debt-servicing pressure, which could affect the company’s sound financial operations.

In terms of market risks, currently, the integration of the real estate industry is accelerating and market competition is becoming increasingly intense. Competition among enterprises in areas such as overall strength, product quality, and operational capabilities is further intensifying. For the culture-and-tourism business, homogenized competition within the industry is relatively prominent. The company’s culture-and-tourism projects face competitive pressure from high-quality culture-and-tourism brands at home and abroad. If content innovation, product upgrades, and service-experience improvements are not kept timely, it may have an adverse impact on market share and competitiveness.