CIFI Group turns profitable in 2025, post-80s Zhou Changliang takes over as CEO

Interface News reporter | Wang Tingting

Private developer Xu Hui Holdings (00884.HK) is entering a critical turning point: the completion of both onshore and offshore restructuring, returning to profitability, and a generational transition in management.

On March 31, Xu Hui Holdings released its 2025 annual results report. During the reporting period, the company achieved operating revenue of RMB 25.452 billion. Benefiting from restructuring gains, in 2025 the company returned to profitability. Shareholders’ net profit attributable to equity holders amounted to RMB 17.67 billion. This is the first time Xu Hui has turned a profit since it launched its offshore debt restructuring in 2022.

If the impact of the above one-off debt restructuring gains is excluded, Xu Hui Holdings Group’s core net loss attributable to shareholders in 2025 was approximately RMB 8.887 billion, a significant expansion compared with the core net loss of RMB 5.8258 billion in 2024.

Xu Hui said that the worsening core loss was mainly due to a decrease in the number of property projects reaching completion and meeting revenue recognition conditions during the period, leading to a drop in revenue, along with continued market weakness putting pressure on gross profit margins.

The completion of the debt restructuring has also improved Xu Hui’s capital structure. By the end of the reporting period, the company’s net assets attributable to shareholders increased to RMB 30.3 billion. Interest-bearing liabilities stood at RMB 50.4 billion. Compared with the peak at the end of 2021 (RMB 114.1 billion), liabilities were reduced by more than RMB 60 billion. The net gearing ratio was 74%, which is at the lowest level among private real estate developers.

Lin Zhong, Chairman of the board of Xu Hui Holdings, believes that this is thanks to the support and understanding of Xu Hui Holdings’ creditors and shareholders, enabling Xu Hui to become one of the first private real estate developers to complete both onshore and offshore restructuring, with support for “surviving the cycle” and “staying alive.”

In his view, the next three years will be a period of industry consolidation and stabilization, as well as the rugged and difficult path for Xu Hui to “stand up.” Lin Zhong provided three keywords and three major transformation paths: a development route of “low leverage, light asset, and high-quality,” focusing on transformation paths including self-operated development business, strengthening the rental income business, and exploring the asset management business.

First, focus on deeply developing the development business, closely follow market changes, do everything possible to repair sales performance, gradually release the value of the 25 million square meters of land reserves, and solidify the foundation of development. According to information, in 2026, Xu Hui plans to launch new phases of multiple projects in Guangzhou, Chengdu, Chongqing, Taiyuan, and other cities, and gradually repair sales performance through incremental supply.

Second, strengthen the rental income business. In a market environment full of challenges, continue to provide stable rental income, steadily increase asset value, and cultivate the “stabilizer.” In 2025, the properties held by Xu Hui generated all-coverage revenue of RMB 1.64 billion, maintaining stability. Through refined operations, rental income is becoming an important source of cash flow for Xu Hui, and its proportion in revenue is gradually increasing.

Finally, actively explore new tracks for the asset management business. With its nationwide, full-chain, and full-scenario development and operating capabilities, participate prudently, cultivate and refine operations deeply, and gradually build a new growth curve for the company.

While releasing its performance, Xu Hui also announced adjustments to the members of its new board of directors: Zhou Changliang succeeds Ru Hailin as CEO of Xu Hui Holdings; Li Yang succeeds Ge Ming as an executive director.

According to Interface News, the newly appointed CEO Zhou Changliang was born in 1980. He previously served as general manager of Xu Hui’s Northwest regional business unit and as president of the Beijing region. In November 2025, he was reassigned as the group’s executive vice president, assisting the president in handling group matters, laying the groundwork for his promotion to CEO of Xu Hui Holdings.

As for Li Yang, who took over as executive director, he led Xu Hui’s Northeast region and Shandong platform companies in sequence. In 2022, he returned to the headquarters to take charge of “ensuring delivery,” and oversaw an operations center that includes functions such as engineering, procurement, costs, and customer relationship management.

People close to Xu Hui believe that amid the ongoing contraction of the real estate industry and an environment where operating pressure has not eased, changes in core executives are essentially the result of talent iteration during the industry’s transition period.

“Although talent loss occurred due to business contraction, this adjustment at Xu Hui Holdings did not present any hidden risks of a talent gap. After Ru Hailin and Ge Ming stepped down, an appointment was made immediately as an advisor to the company, and he will continue to pay attention to and support Xu Hui’s development.” Xu Hui stated.

It is also worth noting that in recent years, as the industry has undergone deep adjustments, the youngerization of cadres has gradually become a trend in how real estate companies appoint personnel, and Xu Hui is no exception.

In November 2025, Xu Hui announced an organizational structure adjustment. The original more than ten companies were integrated into four major regions: East China, South China, West China, and North China. At the same time, it also completed a batch of first appointments of younger regional heads. The newly appointed regional presidents are all “born in the 1980s.”

Industry observers believe that from 2022, when Xu Hui avoided risk due to liquidity difficulties, to 2025, when it completed debt restructuring, turned around its performance, and returned to profitability, and now, as seasoned veterans hand over the baton and the younger management assumes the responsibility of “standing up,” Xu Hui has already gone through the most difficult stretch of the real estate industry cycle and is now entering a new starting point.