China Resources Land: Net profit of 25.4 billion yuan in 2025
Operating business profit contribution first exceeds 50% | Financial report review

Ask AI · What is the key to the transformation behind CR Land’s operational profit surpassing 50% for the first time?

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Turning thirty and setting out again, aiming for a world-class goal.

China Real Estate News Reporter Li Hongmei | Beijing Report

On March 30th, China Resources Land Limited (hereinafter “CR Land”, 01109.HK) announced its full-year 2025 results in Hong Kong, with management including Chairman Li Xin, President Xu Rong, and COO Zhao Wei attending the meeting.

The financial report shows that 2025, as the final year of the “14th Five-Year Plan,” CR Land delivered a substantial performance amid deep adjustments in the real estate industry. The full year’s revenue reached 281.44 billion yuan, with net profit attributable to shareholders of 25.42 billion yuan. Notably, core net profit from recurring operations grew by 13.1% year-over-year, with its proportion of core net profit exceeding half for the first time, reaching 51.8%. This change is seen by industry insiders as a key milestone in the company’s strategic transformation—from a single development and sales model to a multi-track driven model of “development, operation, and services,” which has been initially achieved.

At the performance briefing, management provided forecasts for the 2026 market. COO Chen Wei stated that the national market shows signs of structural recovery, with some cities reaching recent highs, and future policies still have considerable room for support. Sales scale in 2026 is expected to be roughly the same as in 2025. Chairman Li Xin pointed out that the real estate industry is undergoing profound changes, and the company will aim during the “15th Five-Year Plan” to “become a world-class urban investment, development, and operation enterprise.”

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Net profit from operational real estate in 2025: 9.87 billion yuan

In 2025, development and sales-type businesses, as the main contributor to CR Land’s performance, achieved a signed contract amount of 233.6 billion yuan. The company ranked first in market share in five cities, and entered the top three in 13 cities. Management stated at the earnings meeting that the company adheres to the investment principle of “spending according to income,” acquiring 33 projects throughout the year, with nearly 80% of investments concentrated in Beijing, Shanghai, and other five core cities, with a continuously optimized land reserve structure. Regarding the land market in 2026, CFO Zhao Wei analyzed that structural differentiation will continue, and the company will continue to deepen its focus on core cities.

In terms of “good housing” construction, CR Land launched and implemented its enterprise-level “Good Housing” standard system for the first time. According to management, the company is promoting a shift in residential experience from “housing to live in” to “housing to be livable” through project grading management and resource integration. Chen Wei stated at the earnings meeting that this year, the focus will be on comprehensively improving product strength, delivery capability, and service quality.

Of particular note, the rental income business from operational real estate has become an important profit pillar for the company’s second growth curve. In 2025, this segment achieved revenue of 25.44 billion yuan and net profit of 9.87 billion yuan, representing year-over-year increases of 9.2% and 15.2%, respectively. The overall operating profit margin of self-owned shopping centers exceeded 60%, setting a new record. In terms of light-asset management, CR Vanguard continued steady growth, with core net profit increasing by 13.7% year-over-year.

By the end of 2025, CR Land held ample cash reserves, with the weighted average financing cost dropping to 2.72%, a historic low. This level of financing is quite competitive within the industry, and all three major international rating agencies maintained their high credit ratings for the company.

From the financial report, it is evident that the “three growth curves” strategy that CR Land has been continuously advancing in recent years has begun to show results in performance. From development and sales to operational real estate, and then to light-asset management, the synergy among various business segments is being unleashed.

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“15th Five-Year Plan” aims for a world-class goal

In early 2026, CR Land completed a highly watched organizational adjustment. According to the company, this adjustment set up corresponding business tracks based on the “three growth curves” model, abolished regional tiers, and merged regional companies from 20 to 18. The corporate governance structure shifted to a “functional platform + business track” model, simplifying the traditional real estate development hierarchy from “headquarters—regional—regional companies” to a “headquarters—regional companies” flat structure.

Regarding this adjustment, company officials stated that it is not merely organizational contraction but a deep restructuring of governance based on strategic upgrades. Under the overall industry pressure, organizational flattening to improve decision-making efficiency has become a common choice among leading real estate firms.

At the earnings meeting, Li Xin elaborated on the “15th Five-Year” strategic positioning. He said that based on the transformation achievements of the “14th Five-Year Plan,” the company aims to “become a world-class urban investment, development, and operation enterprise,” covering five dimensions: profitability, finance, mode, market value, and brand. The company adheres to three main operating principles: “liberate thinking, innovate and transform,” “qualitative effective improvement and reasonable quantitative growth,” and “profitable revenue and cash flow profits.”

In terms of business model, CR Land will build a new pattern of “highly efficient, mutually reinforcing three growth curves.” Development and sales will remain the foundation, focusing on quality and efficiency; operational real estate will leverage its first-mover advantage to contribute stable profits and cash flow; light-asset management will focus on innovation and quality improvement, seizing the window for scale expansion. Zhao Wei revealed at the earnings meeting that during the “15th Five-Year Plan,” the revenue share from operational real estate is expected to rise to about 15%, and the core net profit contribution from light-asset management will reach 10% to 15%.

In asset management, the company is accelerating the construction of a multi-layered REITs platform to promote effective circulation of assets and capital. By the end of 2025, asset management scale exceeded 500 billion yuan. CR Commercial REIT’s stock price has risen significantly since issuance, maintaining its position as the leading consumer infrastructure REIT, providing stable dividends to investors. CR Woshe REIT completed the country’s first follow-up issuance via a rights offering to existing holders, establishing an early advantage in the financialization of affordable rental housing.

Li Xin concluded at the earnings meeting that 2026 marks the beginning of the “15th Five-Year Plan” and a milestone for CR Land’s 30th anniversary listing in Hong Kong. Over the past thirty years, the company has grown from a small firm with a market value of over 2 billion HKD to an industry leader with a market value exceeding 200 billion HKD, annual profits over 20 billion HKD, and cumulative dividends surpassing 100 billion HKD. Looking ahead, the company will focus on shareholder value, improve quality and efficiency through lean operations, and strengthen momentum through transformative innovation, steadily progressing toward the goal of “becoming a world-class urban investment, development, and operation enterprise.”

Duty Editor: Li Hongmei

Chief Editor: Li Hongmei Wen Hongmei