High performance growth + accelerated transformation: China’s new towns will deliver a high-quality development report by 2025

On March 20, China New Town (1278.HK) released its 2025 full-year performance report. The financial data shows that in 2025, China New Town recorded main business revenue of approximately 389 million yuan (RMB), a year-on-year increase of 15.3%; net profit of 75.71 million yuan, up 35.5%; and total profit attributable to the parent company’s equity holders of about 73.3 million yuan, a rise of 65.4%. Achieving both revenue and profit growth, with profit growth far exceeding revenue growth, fully demonstrates the company’s strong profitability resilience and operational toughness, as well as a tangible improvement in asset quality and steady enhancement of operational efficiency.

In terms of profitability, the company’s net profit margin saw a leap, significantly increasing from 13.56% in 2024 to 18.16%, greatly enhancing profit quality.

From a business breakdown perspective, China New Town has established a stable “gradual effort” growth pattern. In 2025, the company’s urbanization investment income and other income combined grew by 25% to 231 million yuan, mainly benefiting from the scale effect of steady expansion of investment balances. As of December 31, 2025, China New Town’s fixed income investment portfolio totaled 3.366 billion yuan, continuously contributing high-quality, stable operating cash flow and providing solid financial support for the steady operation of various core business segments. The property leasing and management fee business steadily advanced, generating approximately 100 million yuan in revenue for the year, including 76 million yuan from property leasing and 24 million yuan from property management fees, demonstrating ongoing operational strength of high-quality assets. The engineering construction business achieved revenue of 57.175 million yuan throughout the year, serving as an important supplement to revenue growth.

While consolidating its business foundation, China New Town fully leverages the core advantages of its “local state-owned assets + central enterprise financial institutions” hybrid shareholder structure. In 2025, the company successfully issued 1.5 billion yuan offshore RMB bonds, with funds precisely used for refinancing existing debt, further reducing debt costs and optimizing debt maturity structure. This also supports the company’s layout in new productive sectors and accelerates strategic transformation with sustainable funding.

Notably, in terms of shareholder returns, China New Town has always adhered to a long-term approach, genuinely rewarding shareholders with real cash. The board recommends a final dividend of HKD 0.0025 per ordinary share for 2025, in addition to the interim dividend of HKD 0.0016 per share already paid in mid-2025. The total dividend payout for 2025 is approximately HKD 39 million. Since resuming dividend payments in mid-2023, the total dividends paid and planned to be paid have reached about 120 million yuan, demonstrating a firm commitment and concrete actions to continuously reward shareholders.

If outstanding performance is the “trump card,” then leveraging the advantages of its hybrid shareholder structure and deepening transformation into emerging industries is China New Town’s “ace” for unlocking future growth. While maintaining steady growth, the company keenly follows industry trends, aligns with national policies promoting new productive forces and advancing new urbanization, centers on platform positioning, accelerates strategic transformation, and precisely plans for the “14th Five-Year” development window. It focuses on cultivating emerging industries and integrating high-quality resources, injecting strong momentum into the company’s medium- and long-term high-quality development.

It is reported that China New Town has fully integrated the industrial resources of Wuxi Transportation Industry Group and the financial advantages of China Development Bank Financial, focusing on new economic sectors such as integrated circuits, new energy, new materials, high-end equipment manufacturing, and environmental protection. The company actively reserves high-quality equity projects and gradually clarifies strategic acquisition pathways. From a business structure perspective, China New Town is leveraging its hybrid shareholder advantages to build a “steady cash flow + emerging industry growth” dual-driven pattern, characterized by “performance defensive” and “growth offensive.” As the “14th Five-Year” plan is gradually implemented, with ongoing deepening of new urbanization and the rise of new productive sectors, China New Town, as an industrial investment and capital operation platform under the “local state-owned assets + central enterprise financial institutions” structure, will迎来更广阔的发展空间。