Hong Kong – 27 March 2026 – China SCE Group Holdings (China SCE) reported a RMB7.45 billion loss attributable to shareholders for the year ended 31 December 2025, a marginal 5.30% improvement on 2024 but the group remains under acute financial stress and subject to a going-concern warning from its auditor.

Revenue and margins • Revenue fell 9.00% to RMB37.11 billion, dragged by a 10.20% drop in property sales to RMB34.90 billion. • Delivered floor area grew 4.2% to 2.71 million sq.m, but the average selling price declined 13.70% to RMB12,857 per sq.m. • Group gross profit inched up 5.00% to RMB6.55 billion; gross margin improved to 17.6% (FY24: 15.3%) on delivery of higher-margin projects in Shanghai, Fuzhou and Beijing.

Expense and valuation movements • Fair-value loss on investment properties narrowed 41.90% year on year to RMB2.93 billion. • Selling and marketing expenses were cut 26.00% to RMB0.52 billion. • Administrative expenses rose 7.00% to RMB1.30 billion, reflecting higher disposal-related costs. • Finance costs decreased 10.40% to RMB1.70 billion as total interest expense declined, though interest coverage remained negative. • Income-tax expense surged 75.80% to RMB1.65 billion, driven by higher land appreciation tax and lower deferred-tax credits.

Liquidity and leverage • Cash and cash equivalents stood at RMB2.34 billion, with an additional RMB0.92 billion in restricted cash. • Interest-bearing debt totalled RMB33.09 billion, of which RMB27.21 billion falls due within 12 months. • Net gearing ballooned to 1,448.1% (FY24: 296.8%). • Net current liabilities widened to RMB19.93 billion, and equity attributable to owners swung to negative RMB5.11 billion from a positive RMB1.70 billion a year earlier.

Going-concern risks and restructuring China SCE has been in default on offshore senior notes and certain onshore borrowings since October 2023, triggering cross-defaults amounting to RMB20.26 billion in principal and RMB3.63 billion in accrued interest. Management is pursuing an offshore debt restructuring; as of November 2025 creditors holding about 78% of in-scope debt had signed a Restructuring Support Agreement. The High Court of Hong Kong ordered a creditors’ meeting for 24 March 2026. The auditor highlighted a material uncertainty over going concern, though noted management’s mitigation plans.

Operational metrics • Contracted sales (including joint ventures and associates) fell 41.70% to RMB6.54 billion, with sales area down 35.00% to 0.80 million sq.m and ASP at RMB8,162 per sq.m. • Regional exposure: Central-Western China (28.6% of sales), Yangtze River Delta (27.1%), Greater Bay Area (21.4%), Bohai Rim (13.2%) and West Taiwan Strait (9.7%). • Land bank totalled 21.15 million sq.m GFA (17.89 million sq.m attributable) across 55 cities; Yangtze River Delta accounts for 35.8% of land cost.

Dividends and outlook No final dividend was declared. Management plans to pivot from “Ensure Delivery” to “Refine Operations” in 2026, prioritising product enhancement, sales of completed inventory, cost controls and completion of debt restructuring to stabilise liquidity.