China New Town's 2025 net profit surges 35.5%, continues to pay dividends to reward shareholders

China New Town's 2025 Net Profit Soars 35.5%, Continues Dividend Payout to Reward Shareholders

March 20, 2026 - China New Town Development Limited ("China New Town" or the "Company", together with its subsidiaries, the "Group"; Stock Code: $CHINANEWTOWN(1278.HK)), a company focused on investment in Mainland China and the holding and operation of quality assets, is pleased to announce its operating results for the 12 months ended December 31, 2025 ("2025" or the "Review Period").

During the Review Period, the Group continued to deepen its reform and transformation path, delivering a high-quality performance amidst challenges. In 2025, the Group recorded core operating revenue of approximately RMB 389 million (unit: RMB, same below), representing a year-on-year increase of 15%; net profit for the year was RMB 75.71 million, up 35.5% year-on-year; total profit attributable to equity holders of the parent company was approximately RMB 73.29 million, a significant increase of 65.4% year-on-year. The Board proposed a final dividend of HK$0.0025 per ordinary share.

Steady Growth in Core Business, Continuous Optimization of Fixed Income Business

During the Review Period, the Group maintained stable operations. In 2025, the Company achieved urbanization investment revenue of RMB 231 million, an increase of approximately 25% year-on-year, primarily due to an increase in the balance of urbanization project investments compared to the same period last year, leading to higher corresponding project investment income. Property leasing and management fee income amounted to approximately RMB 100 million, including property leasing income of RMB 76 million and property management fee income of RMB 24 million. Construction engineering revenue reached RMB 57.175 million.

Facing complex domestic and international economic conditions, the Group leveraged the resource advantages of its shareholders, Wuxi Communications Group and China Development Bank Financial Leasing Co., Ltd., fully utilizing the business network effect of "local state-owned assets + central SOE financial institutions" to effectively manage and operate its core business, achieving stable growth. In 2025, the Group's urbanization investment business progressed steadily, continuing to contribute stable cash flow. As of December 31, 2025, the total fixed income investment portfolio reached RMB 3.366 billion. The operation of quality assets improved steadily. The Wuhan Optics Valley property project achieved a "rebound from decline" despite market pressure. Through targeted investment attraction and service upgrades, the average occupancy rate recovered to 75% by year-end, ensuring the stability of investment property valuations.

Leveraging Shareholder Resources to Focus on Strategic Transformation and Explore New Growth Space

In 2025, the Group seized the policy opportunities presented by the nation's vigorous development of new quality productive forces. Combining the resource advantages of its shareholders, it focused on building a pipeline of quality equity projects in new economic sectors such as integrated circuits, new energy, new materials, high-end equipment manufacturing, and environmental protection. The path for strategic mergers and acquisitions became increasingly focused and clear. The Group aims to build stable income and cash flow, as well as future growth space in new business areas, by holding quality assets across different industries.

It is worth mentioning that the Group leveraged its shareholder synergy advantages. While achieving steady growth in operating performance, it made a major breakthrough in financing by successfully issuing RMB 1.5 billion in offshore RMB bonds for the refinancing of existing debt. This further reduced debt costs and optimized the maturity structure, providing sustainable financial support for the Group's future business development.

Continued Dividend Payouts, Providing Stable Shareholder Returns

For 2025, the Group proposed a final dividend of HK$0.0025 per share. Combined with the interim dividend of HK$0.0016 per share already paid, the total dividend payout for 2025 amounts to approximately HK$39 million. Since resuming dividend payments in mid-2023, the cumulative dividends paid and proposed by the Group have reached approximately RMB 120 million, demonstrating its commitment and action to continuously reward shareholders.

Future Outlook

Looking ahead to 2026, the inaugural year of the "15th Five-Year Plan", the Group will closely align with the national direction of new quality productive forces, focusing on strategic emerging industries and the information technology innovation industry to accelerate business transformation. The fixed income business will be improved steadily to ensure cash flow; the operation of core assets such as Wuhan Optics Valley will be optimized to enhance efficiency. Simultaneously, the Group will actively build a pipeline of quality equity projects, striving for substantive breakthroughs in strategic mergers and acquisitions, and continuously creating core value for shareholders.

About China New Town Development Limited

China New Town (Stock Code: 1278 on the Hong Kong Stock Exchange) is an investor and operator of quality assets in Mainland China. Since 2014, the Group has optimized its business model in line with China's new urbanization development trend. Adopting a "Investment + Downstream Product Operation" model, it starts with fixed-income project investments, holds and operates quality assets, and is market-oriented, fully expanding its equity investment business in new economic sectors such as new materials, semiconductors, and high-end equipment manufacturing, accumulating industry investment experience.

This press release is issued by Qianli International Consultants Limited on behalf of China New Town Development Limited.