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.

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

The financials show that in 2025, Overseas Chinese City’s operating revenue was about RMB 31.38B, down 42.32% year over year. Net profit attributable to shareholders of listed companies was about RMB -14.5B, down 67.35% year over year. Net profit attributable to shareholders of listed companies after deducting non-recurring gains and losses was RMB -14.39B, down 62.92% year over year. Net cash flow from operating activities was about RMB 12.5 billion, up 133.13% year over year. Total assets were about RMB 280.3 billion, down 13.51% year over year. Net assets attributable to shareholders of listed companies were about RMB 38.72B, down 27.2% year over year.

Regarding the reasons for the losses, Overseas Chinese City explained in its annual report that the main reason for the increased loss is that, according to its annual operating strategy, the company proactively adapted to changes in the market environment and, by fully pushing the disposal of stock business and improving cash flow through asset transfers and other measures, incurred losses from the relevant transactions, resulting in declines in the project revenue recognized and gross margin compared with the year-ago period, among other factors.

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

During the full year of 2025, Overseas Chinese City added only one land reserve project.

The project name is the Chongqing Shapingba Xiaolongkan project. The planned land use is residential. The land area is 18,002 square meters, with a gross floor area of 52,806 square meters. The total consideration for the land is approximately RMB 457 million.

In terms of the real estate business, during the reporting period, the company cumulatively achieved contracted sales of 1.21M square meters, with contracted sales value of RMB 17.73 billion.

In the tourism and related comprehensive segment, in 2025 operating revenue was about RMB 21.37B, accounting for 68.1%; real estate industry revenue was about RMB 9.85B, accounting for 31.39%.

For its outlook on future development, Overseas Chinese City said in its annual report that it will seek to improve the quality and effectiveness of market-oriented operations and rebuild the core competitiveness of its culture and tourism (business) segment. This includes strengthening product iteration and technology enablement to enhance core competitiveness; overall planning to improve the quality and efficiency of existing stock and accelerate the layout for incremental expansion. For the real estate segment, it will optimize the structure of resource allocation and promote high-quality and steady development of this business segment.

However, Overseas Chinese City also pointed out in its annual report the risks the company may face.

In terms of performance risk, due to factors such as market fluctuations, there is some uncertainty regarding the sales and profitability levels of real estate projects, and profit margins face pressure from narrowing, which poses challenges to the company’s overall operating performance. The culture and tourism business is prone to fluctuations in passenger flow and operating revenue due to factors such as consumers’ spending capacity and travel willingness, which may affect the stability of overall profitability.

In terms of financial risk, the real estate business requires large capital investments and has a long development cycle, leading to higher requirements for capital pooling and management. If changes in the industry environment cause slower sales collections, it may bring staged liquidity pressures. Culture and tourism projects involve large investment scales and long investment recovery cycles. If the financing structure and project operating cycle are not reasonably matched, it may result in short-term debt service pressure, affecting the company’s financial sound operation.

In terms of market risk, currently, the real estate industry’s consolidation is accelerating and market competition is intensifying, further increasing competition among enterprises in overall strength, product quality, operating capability, and other aspects. For the culture and tourism business, competition driven by industry homogenization is relatively prominent. The company’s culture and tourism projects face competitive pressure from high-quality domestic and overseas culture and tourism brands. If content innovation, product upgrades, and improvements to service experiences are not carried out in a timely manner, it may have an adverse impact on market share and competitiveness.