Zhuhai Huafa Properties Co Ltd Financial Update

Zhuhai Huafa Properties Co Ltd, a real estate development company listed on the Shanghai Stock Exchange, has recently made significant financial moves. The company, which specializes in residential areas, garages, and shopping mall projects, has seen its close price on August 3, 2025, at 4.77 CNH. The company’s market capitalization stands at 13,180,000,000 CNH, with a price-to-earnings ratio of 16.735.

Strategic Land Sale to Boost Cash Flow

In a recent development, Zhuhai Huafa Properties Co Ltd, also known as Huafa Group, has decided to sell seven commercial land plots in Shenzhen’s Futian district. These plots, initially acquired for a snow-themed leisure project, are being sold at a significant discount, resulting in a loss of approximately 14 billion CNH. Despite this loss, which exceeds 50% of the company’s net profit for 2024, the sale is expected to alleviate current cash flow pressures.

The land, totaling about 70,468 square meters, was acquired five years ago in collaboration with another company. However, due to a cooling interest in snow-themed leisure projects and a partner’s exit, the land’s value diminished. The sale price of 44.05 billion CNH is a 24.59% reduction from the original value of 58.41 billion CNH. This move is seen as a necessary step to manage financial strain, given the longer capital return cycle for commercial properties compared to residential ones.

Recent Financial Activities

On August 4, 2025, Huafa Group received significant funding through margin purchases, amounting to 2,156.95 million CNH, which constituted 36.61% of the day’s total margin purchases. The company’s margin balance reached 8.08 billion CNH, surpassing the historical 50% percentile. Additionally, the company engaged in margin lending activities, with a net increase in margin lending balance to 522.12 million shares.

Overall, the company’s combined margin balance stands at 8.13 billion CNH, marking a 0.10% increase from the previous day. This financial activity indicates a strong market interest and a bullish sentiment among investors.

Stock Buyback Announcement

In a separate announcement, Huafa Group has disclosed progress on its stock buyback program. This move is part of the company’s strategy to enhance shareholder value and manage its equity structure effectively.

For more detailed information on these developments, stakeholders are encouraged to refer to the official announcements and financial disclosures available on the company’s website and the Shanghai Stock Exchange.

This summary provides an overview of the recent financial activities and strategic decisions made by Zhuhai Huafa Properties Co Ltd, reflecting the company’s efforts to navigate current market conditions and optimize its financial health.