Fangda Group posted a net loss of 5.15 billion yuan in 2025, with impairment of investment properties dragging down more than 40% of profits

Whale News, April 7 — On April 7, Fangda Group released its 2025 annual report. Data shows that the company achieved an operating revenue of 3.38B yuan in 2025, a decrease of 23.66% year-on-year; net profit attributable to the parent was -515 million yuan, a decrease of 455.95% year-on-year; non-recurring net profit was -295 million yuan, a decrease of 284.68% year-on-year.

Quarterly, the fourth quarter’s single-quarter operating revenue was 818 million yuan, net profit attributable to the parent was -531 million yuan, and non-recurring net profit was -306 million yuan, with all three indicators significantly below the annual average level, indicating that operational pressure further intensified at the end of the year.

The revenue structure continued to concentrate, with curtain wall systems and materials accounting for 76.09%, subway shield doors and services accounting for 17.67%, totaling 93.76%, while revenue from other businesses continued to shrink.

Regionally, domestic market revenue increased to 88.68%, while overseas revenue was 382 million yuan, accounting for 11.32%. Although the company added two overseas subsidiaries during the year—Curtain Wall Sydney and Curtain Wall UAE—overseas revenue did not expand.

R&D investment decreased by 22.34% year-on-year, the number of R&D personnel decreased by 19.30%, and R&D expenses as a percentage of revenue dropped to 3.93%, indicating that technological investment intensity and team size shrank simultaneously. Selling expenses increased by 4.11% year-on-year, rising against the backdrop of a 23.66% decline in revenue, with the sales expense rate rising from about 1.2% last year to about 1.7%.

Net cash flow from operating activities was 187 million yuan, a net inflow but a decrease of 30.82% year-on-year. The financial report clearly states that this change was mainly due to a fair value loss of 281 million yuan on investment properties recognized during this period and a provision for asset impairment of 283 million yuan.

Total non-recurring gains and losses amounted to -220 million yuan, with fair value changes in investment properties reaching -281 million yuan, causing net profit attributable to the parent to decrease by an additional 220 million yuan compared to non-recurring net profit, accounting for 42.76% of the absolute value of net profit attributable to the parent. The fair value loss of investment properties such as Fangda City and Nanchang Fangda Center was the main source of non-recurring gains and losses. Additionally, the termination of the Bangshen Industrial Park project resulted in an extraordinary expense of 17.78M yuan, further exacerbating the current period’s losses.