In 2025, the real estate market in the People’s Republic of China (“PRC”) continued its overall downward trend. Amid a market environment marked by shrinking new housing supply and a slower pace of inventory reduction, Yanlord Land Group Limited (“Company” and together with its subsidiaries, “Yanlord” or the “Group”) maintained broadly stable performance.
In last year’s annual report, I noted that the Group’s operations in the PRC would gradually undergo a transition, with the contribution from recurring income properties expected to increase steadily over the medium to long term, while the Singapore business would continue to show a stable and improving trend.
The Group’s overall performance last year was broadly in line with these expectations. I would like to take the opportunity of presenting the Group’s results for the financial year ended 31 December 2025 (“FY 2025”) to report on, and share with shareholders, the market rationale behind these evolving trends.
For Yanlord, following nearly two years of strategic adjustments and management optimisation, the Group’s revenue mix underwent structural changes during the year.
For FY 2025, the Group recorded total revenue of RMB14.369 billion, representing a year-on-year decline of 60.5%. Revenue from property development amounted to approximately RMB9.765 billion, with its contribution decreasing from 85.8% in the financial year ended 31 December 2024 (“FY 2024”) to 68.0%. This was mainly attributable to the Group’s reduced development intensity in recent years, which resulted in a smaller delivery area last year.
Meanwhile, revenue from the Group’s investment properties (including office buildings, retail, serviced apartments and hotel operations), together with property management segments, amounted to RMB3.210 billion. Their contribution to the Group’s total revenue increased from 9.0% to 22.3%.
On the expenditure side, both interest expenses and operating costs declined noticeably. As a result of the Group’s proactive efforts to reduce debt, total borrowings decreased by 9.1% to RMB23.969 billion. Coupled with lower interest rates, this further reduced interest expenses. Administrative expenses decreased by 13.2% year-on-year, reflecting the effectiveness of the organisational adjustments and optimisation implemented by the Group over the past few years.
Supported by the combined effects of revenue-enhancing and cost-controlling initiatives, the Group’s gross profit and gross profit margin improved significantly compared with FY 2024, reaching RMB4.004 billion and 27.9%, respectively. This was mainly attributable to a shift in the product-mix of properties delivered and a reduction in the write-down of completed properties for sale and properties under development for sale.
The Group recorded net profit after tax of RMB435 million for the year, achieving a turnaround from loss to profit. Profit attributable to owners of the Company for the year amounted to RMB268 million.
Against the backdrop of moderating economic growth in the PRC, it is commendable that the Group’s portfolio of investment properties maintained stable performance in FY 2025. Among these, retail leasing properties performed well. In particular, occupancy rates at Yanlord Landmark in Chengdu, Yanlord Reverie Plaza in Shenzhen and Cangjie Commercial Plaza in Suzhou continued to improve, supporting the stability of the Group’s overall retail rental income. The Group’s existing office buildings were affected by market conditions, and occupancy rates declined slightly.
In 2025, the hotel market in PRC faced two main challenges: weaker demand from business travellers and softer spending in the leisure market. The Group’s hotel division strengthened cost management and adjusted its operating model. Overall performance achieved commendable results, reflecting the effectiveness of the management team’s response to market challenges.
The Group’s property management business continued to develop through ongoing process optimisation, service quality improvements and enhanced technological innovation. As at 31 December 2025, Yanlord’s Property Management operated in 26 cities and regions, with a total managed area of 30.58 million sqm and approximately 147,700 households served. During FY 2025, 15 newly completed projects developed by the Group were handed over to Yanlord Property Management for routine management services.
The Singapore market remained stable overall. The Group’s office buildings, retail malls, serviced apartments and hotels in Singapore maintained high occupancy levels, with several properties fully leased. Rental levels also continued to rise steadily, further strengthening the quality of asset operations. Yanlord will continue to pursue steady progress, refine the service experience and further strengthen brand recognition among its target customer base.
The real estate sector in the PRC is entering a deeper phase of transformation. Urban divergence is widening, upgrade demand is accounting for a larger share of housing demand, and the management of long-term hold assets is becoming increasingly important. These trends are likely to remain key themes for the industry for foreseeable future. Against this backdrop, a developer’s existing city footprint, long-term market positioning and product development capabilities, as well as its ability to operate and manage investment properties, will play an important role in determining the success of its transition. On these fronts, Yanlord believes it holds certain advantages.
Going forward, Yanlord will continue to prioritise asset quality and prudent cash flow management, optimise its project pipeline and promote a more balanced and diversified business mix. At the same time, the Group will closely monitor market signals, capture policy and regional opportunities, and maintain disciplined investment pacing and cost control, with the aim of strengthening core competitiveness and positioning the Group for future opportunities.
The Board of Directors and management team would like to express sincere appreciation to the Group’s customers, partners, employees and shareholders for their continued trust and support. I would also like to thank the Board of Directors for its prudent guidance and dedication in leading the Group through a challenging year. The Board of Directors has proposed a final dividend of 1.0 Singapore cent per ordinary share (equivalent to 5.47 Renminbi cents) for FY 2025.
Looking ahead, Yanlord will continue to uphold a prudent and disciplined approach, respond carefully to a complex operating environment, and advance its initiatives in an orderly manner. The Group will also seek to capture investment opportunities when appropriate, with the aim of delivering sustainable value to shareholders.
Yanlord Land Group Limited
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