In the high-stakes world of China’s A-share market, the line between delisting and survival often hinges on real estate holdings rather than industrial innovation. Shenzhen-listed Hemei Group (002356) has recently exemplified this trend, reporting a return to profitability in 2025 that was fueled largely by the strategic liquidation of residential assets in one of the country's most expensive districts.
The company’s 2025 annual report reveals a net profit of 38.39 million RMB, a significant recovery from the deep losses recorded in previous cycles. While revenue grew by over 43% to reach 583 million RMB, the heavy lifting for the bottom line was done by the disposal of 90 idle apartments in Shenzhen’s affluent Nanshan District. This transaction alone netted the firm approximately 71.38 million RMB in gains, more than double its final net profit.
This asset disposal was a critical component of Hemei’s recovery following a 2021 bankruptcy reorganization. By liquidating these properties through electronic auction platforms, the company managed to satisfy secured creditors and drastically reduce its debt load. The move effectively used Shenzhen’s premium real estate market as a financial bridge to stabilize the company’s precarious balance sheet.
Simultaneous to its property sales, Hemei is attempting an ambitious narrative shift toward green energy. Its energy station and hydrogen-powered bike businesses now account for over 75% of total revenue, up from 48% a year prior. However, the shadow of past mismanagement lingers, as the company remains embroiled in lawsuits with retail investors over alleged securities fraud, highlighting the long road ahead to restoring full market confidence.