China City Development Group Co., Ltd. (hereinafter referred to as "the Company") has received the inquiry letter from the Shenzhen Stock Exchange regarding the 2025 annual report (the "Inquiry Letter") (Company's annual report inquiry number (2026) No. 27). The Company has responded to the inquiry letter dated May 8, 2026, announcement number: 2026-030, which requires the Company to clarify relevant matters in the report.
The response is as follows:
- Regarding Operational Performance
The report shows that the Company's operating income for 2025 is expected to be 147.07 billion yuan, with a net profit attributable to shareholders of the listed company (hereinafter referred to as "net profit") of 17.10 billion yuan, a decrease of 19.64%, 66.99%, 67.65%. The report period's operating income is mainly derived from real estate business, with the real estate business income expected to be 133.33 billion yuan, a decrease of 22.40%, and the gross profit margin is expected to decrease by 1.56%, a decrease of 8.01 percentage points.
In the first quarter of 2025, the Company achieved operating income of 117.70 billion yuan, 14.76 billion yuan, 10.48 billion yuan and 4.14 billion yuan, with a net profit of -4.93 billion yuan, -6.87 billion yuan, -4.80 billion yuan and -0.49 billion yuan, respectively. The cash flow from operating activities (hereinafter referred to as "operating cash flow") is expected to be -1.06 billion yuan, 4.11 billion yuan, -4.02 billion yuan and -1.81 billion yuan. The Company requests the business segment to clarify the industry environment and operational conditions.
(1) The business segment should clarify the industry environment and operational conditions, and combine the market economic environment, industry development situation. It can also compare the operating income with the same period last year, net profit, and the reasons for the significant differences in the three variables.
| Category | 2025 Year | 2024 Year | Year-on-Year Change |
|---|---|---|---|
| Real Estate Sales | 1,333,257.47 | 1,718,091.27 | -22.40% |
| Property Services (including asset management and operation) | 128,981.75 | 89,965.68 | 43.37% |
| Others | 8,450.23 | 12,500.00 | -32.81% |
| Total Operating Income | 1,470,689.45 | 1,830,204.25 | -19.64% |
(2) From the above table, the Company's operating income in 2025 is mainly derived from the real estate sales segment and property services segment. The real estate sales industry is expected to continue to stabilize. The Company reports that the real estate sales revenue in 2025 is expected to be 133.33 billion yuan, a decrease of 22.40%, mainly due to the Company's decision to exclude certain real estate projects from the report, leading to a decrease in expected operating income compared to the previous year.
(3) The Company will clarify the reasons for the decline in operating income and net profit, and whether the reasons for the significant decline in gross profit margin are reasonable.
The Company will respond to the inquiry regarding the operating income and net profit for the first quarter of 2025.
Debt: Loan Capital (Nominal Amount 1 Yuan)
Debt: Issued and Consolidated Liabilities
- Total: 493 million yuan
- Among: Payable Employee Salaries: 1 million yuan
- Other Payables: 109 million yuan
- Long-term Loans due within one year: 5 million yuan
- Payable Bonds due within one year: 48 million yuan
- Long-term Payables due within one year: 169 million yuan
- Other Current Liabilities: 2 million yuan
- Long-term Loans: 6 million yuan
- Payable Bonds: 72 million yuan
- Long-term Payables: 81 million yuan
Debt: Issued and Consolidated Assets
- Total: 445 million yuan
- Among: Other Income: 251 million yuan
- Non-current Assets due within one year: 78 million yuan
- Long-term Income: 22 million yuan
- Long-term Equity Investment: 94 million yuan
- Debt: Capital Public