BUSINESS

State Property Giant’s Profit Plunges as Market Pressures Persist

Published: Mar. 19, 2026 3:03 a.m. GMT+8

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A residential project developed by China Merchants Shekou under construction in Wuchang district, Wuhan. Photo: VCG

China Merchants Shekou Industrial Zone Holdings Co. Ltd. reported profit fell to a nearly decade low, highlighting persistent strains in China’s property sector, where subdued demand and weaker asset values continue to weigh on developers.

The state-owned developer said net profit fell 74.7% to about 1 billion yuan ($145 million) in 2025, pointing to a still-weak housing market where both sales volumes and prices remain under pressure despite policy support.

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China Merchants Shekou’s 2025 net profit fell 74.7% to 1 billion yuan, its lowest in nearly a decade, amid ongoing weakness in China’s property sector.
Revenue dropped 13.5% to 154.7 billion yuan, with significant asset write-downs and a 24.4% decrease in settled project area further weighing on earnings.
Despite deteriorating profits, the developer increased land acquisitions by 62.1%, focusing 90% of investment in 10 core cities for long-term repositioning.

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Who’s Who

China Merchants Shekou Industrial Zone Holdings Co. Ltd.: China Merchants Shekou Industrial Zone Holdings Co. Ltd. is a state-owned developer. In 2025, its net profit fell by 74.7% to 1 billion yuan, marking a near decade low, and revenue dropped by 13.5% to 154.7 billion yuan. This decline is attributed to a weak housing market, eroding margins, and asset write-downs. Despite these challenges, the company increased land acquisitions in 2025, focusing on core cities, and aims to reposition itself as an integrated developer.

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