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Yuzhou Group Swings to Profit on Debt Restructuring Despite Weak Sales

Story Highlights
  • Yuzhou Group swung to a headline profit in 2025, mainly due to large gains from offshore debt restructuring and revaluation of financial guarantees.
  • Underlying losses narrowed but revenue, contracted sales, cash balances, and contracted liabilities all declined, highlighting ongoing liquidity strain and operational pressure.
  • Looking for the best stocks to buy? Follow the recommendations of top-performing analysts.
Yuzhou Group Swings to Profit on Debt Restructuring Despite Weak Sales

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The latest announcement is out from Yuzhou Group Holdings Co., Ltd. ( (HK:1628) ).

Yuzhou Group reported a 30.52% year-on-year decline in 2025 revenue to RMB6.75 billion and a sharp fall in contracted sales, reflecting continued weakness in China’s property market. Despite this, the company swung to a profit attributable to shareholders of RMB24.93 billion from a loss a year earlier, driven largely by a sizeable gain from offshore debt restructuring and a revaluation gain on financial guarantee contracts.

Stripping out these one-off restructuring-related gains, Yuzhou still posted a substantial underlying loss of RMB9.72 billion, though this narrowed by nearly 19% versus 2024, suggesting some progress in stabilising its operations. Cash and bank balances fell 17.48% to RMB2.46 billion and contracted liabilities dropped more than 60%, underscoring ongoing liquidity pressure and the heavy impact of balance-sheet repair on the group’s future development capacity and obligations to homebuyers and creditors.

The most recent analyst rating on (HK:1628) stock is a Hold with a HK$0.11 price target. To see the full list of analyst forecasts on Yuzhou Group Holdings Co., Ltd. stock, see the HK:1628 Stock Forecast page.

More about Yuzhou Group Holdings Co., Ltd.

Yuzhou Group Holdings Co., Ltd. is a Chinese property developer listed in Hong Kong, focusing on residential and commercial real estate projects. The group generates revenue mainly from property sales and related services across mainland China, and is exposed to the broader downturn and restructuring pressures in the Chinese real estate sector.

Average Trading Volume: 1,441,460

Technical Sentiment Signal: Sell

Current Market Cap: HK$238.6M

For a thorough assessment of 1628 stock, go to TipRanks’ Stock Analysis page.

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