Exchange: HKSE | Sector: Real Estate | Industry: Real Estate Development
Q1 2025
Published: Mar 31, 2025
Earnings Highlights
Revenue of $350.20M down 50.1% year-over-year
EPS of $-0.15 increased by 6.3% from previous year
Gross margin of 14.2%
Net income of -387.77M
"Transcript not provided." - N/A
Yida China Holdings Limited (3639.HK) QQ1 2025 Results Analysis — Real Estate Development, Revenue Decline with Margin Pressures and One-off Charges
Executive Summary
Yida China’s QQ1 2025 results show a sharp year-over-year and quarter-over-quarter decline in revenue, with a modest operating profit but a pronounced net loss driven by substantial other expenses. Revenue reached 350.20 million CNY, down 50.1% year-over-year and 58.8% quarter-over-quarter. Gross profit was 49.85 million CNY, yielding a gross margin of 14.23%. Operating income stood at 10.51 million CNY (operating margin 3.00%), while EBITDA was 12.83 million (EBITDA margin 3.66%). The net result was a substantial loss of 387.77 million CNY for the quarter, as total other income/expensesNet swung to -364.68 million CNY, overwhelming operating profitability and tax contributions (income before tax of -354.17 million CNY and income tax expense of 35.01 million CNY).
The disparity between EBITDA/operating income and net income indicates material non-operating or one-off charges in QQ1 2025. Absent more granular disclosure, the key takeaway is that the quarter’s bottom-line deterioration was primarily driven by this line item rather than operating profitability alone. Management commentary was not provided in the material supplied; as a result, the forward-looking view relies on the reported trajectory, the macro backdrop for China’s property sector, and typical industry dynamics. Near-term sentiment hinges on stabilization of policy support, project execution, and discipline on both costs and working capital.
Key Performance Indicators
Revenue
350.20M
QoQ: -58.76% | YoY:-50.13%
Gross Profit
49.85M
14.23% margin
QoQ: -70.13% | YoY:-71.18%
Operating Income
10.51M
QoQ: -89.81% | YoY:-73.56%
Net Income
-387.77M
QoQ: -1 910.37% | YoY:6.91%
EPS
-0.15
QoQ: -861.54% | YoY:6.25%
Revenue Trend
Margin Analysis
Key Insights
Revenue: 350,204,000 CNY in QQ1 2025, down 50.13% YoY and 58.76% QoQ.
Total Other Income/Expenses Net: -364,680,500 CNY (a material drag on pretax income).
Financial Highlights
- Revenue: 350,204,000 CNY in QQ1 2025, down 50.13% YoY and 58.76% QoQ.
- Gross Profit: 49,850,500 CNY, Gross Margin: 14.23%.
- Operating Income: 10,514,500 CNY, Operating Margin: 3.00%.
- EBITDA: 12,833,500 CNY, EBITDA Margin: 3.66%.
- Total Other Income/Expenses Net: -364,680,500 CNY (a material drag on pretax income).
- Income Before Tax: -354,166,000 CNY; Income Tax Expense: 35,005,000 CNY.
- Net Income: -387,769,000 CNY; Net Income Margin: -110.73%.
- EPS (diluted): -0.15 CNY; Weighted Average Shares: 2,583,970,000.
- Revenue mix and line items reflect a real estate developer with a sizable one-off charge or impairment type item in other expenses, masking underlying operating efficiency.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
350.20M
-50.13%
-58.76%
Gross Profit
49.85M
-71.18%
-70.13%
Operating Income
10.51M
-73.56%
-89.81%
Net Income
-387.77M
6.91%
-1 910.37%
EPS
-0.15
6.25%
-861.54%
Key Financial Ratios
Net Income vs. Revenue
Expense Breakdown
Management Commentary
Transcript highlights not provided in the supplied data. No QQ1 2025 earnings call transcript content was included to synthesize management commentary or group reviews by themes (strategy, operations, market conditions).
Transcript not provided.
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Transcript not provided.
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Forward Guidance
No explicit forward guidance was disclosed for QQ1 2025 in the supplied material. Given the macro backdrop for China’s real estate sector, investors should monitor:
- How effectively Yida reduces one-off and non-operating costs to stabilize net income.
- Any improvements in gross margin and operating expense containment as revenue recovers or remains pressured.
- The cadence of project completions, collections, and cash flow generation to support liquidity.
- Management’s commentary on policy tailwinds or headwinds affecting property development and business parks.
- Liquidity metrics, debt levels, and capital expenditure plans as the quarter signals potential for a leaner cost structure and improved operating leverage if market conditions stabilize.
Competitive Position
Company
Gross Margin
Operating Margin
Return on Equity
P/E Ratio
3639.HK Focus
14.23%
N/A
N/A
N/A
3628.HK
0.00%
0.00%
0.00%
0.00%
3688.HK
-2.64%
-1.09%
-6.81%
-32.80%
Gross Profit Margin
Operating Profit Margin
Return on Equity
P/E Ratio Comparison
Investment Outlook
Investment thesis under QQ1 2025 is contingent on stabilization of China’s real estate market and a meaningful reduction in non-operating charges. Near-term catalysts would include improved working capital management, a clearer path to sustainable gross margin improvements, and evidence of cash flow generation, even if at a moderated pace. If management can articulate a credible plan to address the large other expenses and deliver a positive operating cash flow, the stock could re-rate modestly from current levels. Key factors for investors to monitor include: gross margin trajectory, operating expense ratio, evidence of impairment reversal or avoidance, liquidity metrics, and the speed of project completion/collections in core markets.
Key Investment Factors
Growth Potential
Potentially favorable long-term tailwinds include China’s urbanization, continued demand for business parks and integrated developments, and selective project wins in higher-margin segments. Growth would depend on execution, stabilization of property markets, and the ability to monetize new developments with healthier gross margins.
Profitability Risk
Key risks include a protracted downturn in China’s property sector, potential impairments or write-downs on property-related assets, revenue concentration in slower cities, execution delays, and uncertainty around policy support. The sizable negative net income driven by other expenses suggests exposure to non-operating costs that could recur if not addressed.
Financial Position
Limited financial position data were provided. Absence of balance sheet items (debt levels, cash, liquidity, working capital) restricts a full assessment of leverage and liquidity. EBITDA margin is modest (3.66%), but net margin is deeply negative due to non-operating items, implying fragile near-term profitability without a reduction in other expenses and a recovery in core operations.
SWOT Analysis
Strengths
Diversified real estate platform with property development, investment properties, and business park operations
Weaknesses
Material non-operating charges driving net losses (Total Other Income/Expenses Net: -364,680,500 CNY in QQ1 2025)
Low net margin structurally (net income margin: -110.73%) despite positive EBITDA
Limited disclosure on cash flow, debt levels, and working capital metrics in the provided data
Opportunities
China urbanization and growth in business park demand could support revenue scale and asset utilization
Potential for margin improvement through project mix optimization and cost controls
Policy support for urban development and public-private partnership projects may aid project execution
Threats
China real estate market volatility and financing constraints pose ongoing revenue and margin risk
Impairment risk and one-off costs could recur, pressuring earnings quality
Competition in property development and business park segments could compress margins