Longfor Revenue Misses by 15.6%, Highlighting China Property Woes

Edgen Stock·Mar 27 2026, 04:27

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Key Takeaways

Longfor Group's 2025 financial results revealed a significant revenue shortfall, underscoring the persistent and severe downturn in China's real estate sector. The developer's performance contrasts sharply with growth in other areas of the Chinese economy, highlighting a deep, sector-specific crisis that government stimulus has yet to resolve.

Longfor Group's 2025 revenue was 97.31 billion RMB, falling 15.6% short of the 115.28 billion RMB consensus estimate.
Profitability was severely compressed, with profit attributable to owners collapsing to just 1.02 billion RMB.
The results reflect a broader sector decline, where fixed asset investment in real estate contracted 11.1% in early 2026, defying a wider economic rebound.

Longfor Revenue Misses Estimates by 18 Billion RMB

For its 2025 fiscal year, Chinese developer Longfor Group reported revenue of 97.31 billion RMB, falling 15.6% short of the 115.28 billion RMB consensus estimate. This significant miss represents a revenue gap of nearly 18 billion RMB, signaling deepening stress in the company's operations. Profitability was squeezed to near-zero, with profit attributable to the company's owners recorded at just 1.02 billion RMB for the year. This yields a net margin of approximately 1%, a stark indicator of the financial pressure facing one of the country's major property firms.

Real Estate Investment Contracts 11.1% as Economy Diverges

Longfor's poor performance is symptomatic of a persistent crisis in China's property market that runs contrary to a tentative recovery in other economic segments. While national industrial output expanded 6.3% in early 2026, fixed asset investment in the real estate sector contracted sharply by 11.1% year-over-year. This divergence illustrates a structural weakness in the economy, where capital continues to exit the property sector. The slump persists even as Beijing implements accommodative monetary policy and expansionary fiscal measures, suggesting that these tools have failed to restore investor confidence in real estate. The ongoing slide in private investment, which fell 2.6% in the same period, confirms that broad-based caution remains the dominant sentiment among investors.