Can you turn around now? The answer is unclear. Following successive losses in 2023 and 2024, the united states projected losses to reach a maximum of $22. 5 billion in 2025. The first loss since its listing in 1998 - a projected loss of $10 billion-$52 billion in 2025 - was caused by the creation of the “new easters” stock (60153. Sh), which took over in 2023。
On the eve of spring 2026, on 14 february, the united states of america received a letter from the supervisory authority requesting it to explain the reasons for the sharp decline in the fair value of the investment properties at the end of the reporting period, which matched the decline in income and rental rates. The vice-president of the chinese business capital union and chief economist of the china region, pa wenxi, believes that the fair value accounting treatment of large retail industry operators has been the subject of focused surveillance, reflecting a high degree of vigilance on the part of regulators with regard to the risk transfer of downstream industrial chains of real estate。
After three years, is it necessary to guard against the risk of exit? As of 24 february, several calls to the secret service of the united states of america had been unattended. For its part, the ministry of equity and securities has made it clear that it is “probably unlikely” that the united states of america will be “de-marketed” and that, at present, the company is operating normally, with some operating profits, and that the losses are only affected by impairment and are on the books。
As at 25 february, it had received $2. 64 per unit, an increase of 1. 54 per cent and a total market value of $11. 5 billion。
Resuscitate the clamps and turn over to meet the core challenge of the american kailong
In response to a challenge to the submission of the regulatory letter, the united states responded to 25 pages. In the case of investment real estate, as at 30 september 2025, the carrying value of united states-caloon investment real estate was $9. 72 billion. In 2023, 2024 and the first three quarters of 2025, the fair value of the united states ' investment properties changed by rmb 840 million, rmb 1930 million and rmb 3. 3 billion。
According to the submission, the loss of fair value changes recognized by the united states of america in the fourth quarter of 2025 for investment real estate was significantly higher than in previous years, and it was required that the united states of america provide a full explanation of the causes and reasonableness of the significant decline in fair value of investment real estate at the end of the reporting period, the matching of the decline in income and rental rates, and the significant recognition of the reasonableness of the loss of fair value of investment real estate in the fourth quarter。
According to the united states response, the downside of the industry and the market environment is highly correlated with a significant decline in rent and rental rates at home. As of the end of 2024, the fair value of the construction of the established malls was rmb 79,758 million, representing 87. 6 per cent of the fair value of the total invested real estate. The weakness of national investment in real estate development, the decline in income and the decline in unit rental prices have had a significant impact on the valuation of investment-in-real estate in established businesses。
Source: cannery gallery
In response to rent levels, the shift from “rehabilitation under short-term policy stimulus” to “stable in the medium to long term at present at a low level” has directly led to a significant decrease in the rate of rent growth for core parameters in the investment real estate valuation model, with a significant impact on asset valuation。
The united states stated that since the establishment of the equity portfolio, the company had achieved significant cost-side savings, but cost-end controls could not counterbalance the pressure on the revenue side. In particular, after the third quarter of 2024, in response to the increase in vacancy rates, companies targeted larger earmarked rent concessions for eligible businesses, resulting in a significant reduction in real rent unit prices. At that time, management was also “fantasy” that subsequent unit rent prices would recover to historical levels, but the reality was that, after 2025, firm real unit rent prices and total revenues were further weakening, indicating that the lease market recovery was still not sufficiently dynamic。
The united states recognizes that the lack of growth in rental income is no longer short-term fluctuations but is likely to become the norm in the medium to long term. It therefore considered that a full adjustment to the fair value of invested real estate was necessary, timely and appropriate accounting treatment. According to merceron, the company's shift from a traditional “home building stock market” to a business mix of “home consumption” topics is a process of longer cycles, larger inputs and a possible lowering of the overall average rent unit price during the breeding period, which further strengthens management's judgement that future rental income cannot rebound quickly。
Source: cannery gallery
Merceron emphasized that the reduced expectations of management for rent price restoration were the core drivers of the significant downward revision of fair value in this time. Management's assumption that “rental levels will gradually be restored to historical levels”, based on the policy's early effect at the end of 2024, was rejected by actual rental data, particularly in the fourth quarter of 2025, and the unit price of rent was not restored as scheduled, “provening a downward trend rather than a cyclical one”。
With regard to the series of adjustments made by the united states of america’s capital executive board under pressure from the real world, xiang qianxian capital executive shen zheng believed that the submission of letters followed the regulatory principle of information disclosure, since the magnitude of the adjustments could affect investors’ judgement, and the specific regulatory content of fair value adjustments in investment real estate was not the focus, and both the institutions and the listed companies were aware of the reasons for the fair value adjustments. This adjustment, of course, does not preclude a one-time liquidation of the previously high asset value, which would provide the basis for a subsequent reorganization。
Three consecutive years of huge losses that have delayed the construction of equity performance
For three consecutive years of losses, how to repair performance is not only relevant to the development of the united states of america, but also an important incentive to boost the underprice of less than $3。
On 24 january 2026, the united states-keron performance forecast 2025 showed net profit to mothers ranging from $22. 5 billion to $15 billion. The main cause of the loss is the loss of the fair value of the investment property and the impairment of the related assets。
Source: cannery gallery
What should be done about the depressed industry and the declining demand for domestic construction materials? The continued reduction of rent and management revenues by the united states of america in an attempt to “stable the traders” and the initial expansion to attract new brand names, with the granting of rent and management fee concessions, led to a significant decline in the level of rent in 2025 compared to previous years. The value of investment-based real estate has declined significantly, with a corresponding downward revision of investment-based property valuations of about $12. 6 billion to $21. 5 billion in 2025。
At the same time, the united states made a preliminary estimate of the recoverable amounts of assets up to the end of 2025, with a corresponding reduction of about $4. 5 billion to $5. 7 billion。
Looking back at the performance of the united states in recent years, in 2022, although there were no losses, the net profits received and returned to the mother decreased by 8. 86 per cent and 63. 43 per cent, respectively. In 2023, there was a continued decline in revenues at the united states compound, with a net loss of profit to the mother of approximately $2,216 million, a decrease of 496. 78 per cent over the same period; in 2024, there was no unexpected decline at the united states compound of $2. 984 billion in net loss to the mother of profit, which further increased the loss. With regard to the main causes of the poor performance of the united states of america in recent years, shen moe felt that it was linked to the continuing contraction of the economy, particularly the real estate market。
Source: cannery gallery
Paradoxically, che jianheng, the founder of the united states of america, was opened for investigation last year. On 14 may 2025, according to the united states of america, the yunnan provincial inspection commission opened an investigation into the case of the director and general manager, jianhing, and put in place a retention measure to ensure the smooth running of the company's day-to-day work, under the full responsibility of the managing director, li yupeng. On 23 september 2025, the united states of america again disclosed that the yunnan provincial inspectorate had released the vehicle from detention。
On 17 january 2023, the united states-keylon holding shareholders, red star holdings, real control car constructions, and dealings entered into a swap agreement whereby the red star holdings agreed to transfer approximately us$ 1. 304 billion (29. 95 per cent of the total stock) of their holdings to the united states-owned shares at a price of us$ 4. 82 billion/share, at an exchange price of approximately us$ 6. 285 billion. Shen ming pointed out that meklon was facing a systemic market crisis that could be improved if it was not replaced by an actual operator. When listed companies changed their owners, the influence of former shareholders on listed companies was significantly diminished, with little involvement in day-to-day operations except in conjunction with the transition period of the new owners。
If today's rate is 2. 6, the same is true for the construction of shares, with an additional $2. 895 billion? This was not the case with respect to the construction of shares, which indicated that the inference was a different assessment and that the corresponding value of the united states/caylon net assets assessment at the time was approximately 20 billion. When it was purchased in 2023, it was evaluated at a rather low rate, when it was recognized that there were more than $9 billion in book value and that the value of the assessment to date could not be said to be in deficit. As assessed at the time, the present impairment portion has been largely assessed。
However, the “account” for the loss of the shareholding in 2025 had to be credited to the united nations development group, a subsidiary of real estate, and to the united states of america。
Source: cannery gallery
According to bovenhee, the united states of america has not ceased to lose for three years, but rather has a burden on the performance of its shares. In response, it was stated that unless the entire real estate industry continued to decline significantly, if the real estate was stable, there would probably be no further such impairment and performance would be reflected in normal operating profits. If the whole real estate market and prices and turnover continue to decline significantly, it is not just the united states of america that is affected, and all real estate development enterprises in the country are likely to be very affected。
Is there any room for me to turn? According to bovingxie, the window period is shrinking, with the company's asset quality still at the bottom line, such as the large number of self-employed businesses located in high-quality segments of the first and second-line cities, the scarcity of core property has not yet been completely lost, and the next step could be the light quantification of assets, commercial fusion, digitization of operations and debt restructuring. However, if business-level losses are not achieved in 2026, continued loss of blood will result in a significant decline in net assets and may trigger default。
Cash flows improved, with $9. 5 billion borrowed from construction
The pressure to reverse performance is clear, even if the united states and the united states do not need to worry about the risk of exit. From a positive point of view, it is argued that there is still a profit in the business of the united states of america and that the cash flow of re-entry is positive. According to the 2025 quarterly newspaper, there was a marked recovery in cash flows from corporate operations, with net inflows of about $640 million by the third quarter of 2025, an increase of about $1. 17 billion over the same period last year (the same period last year was $530 million). Net operating cash inflows in the first three quarters were $112 million, $314 million and $441 million, respectively, with an increase in the ring-to-season ratio。
Last year, however, the united states loaned a large sum of money to build-up equity. On 12 april 2025, the united states announced that, in order to meet the liquidity requirements of the company and to improve the efficiency of its use of funds, it was proposed to apply for loans totalling $9. 5 billion to build up shares and their subsidiaries, their joint ventures and their affiliates, which the company could recycle for a period of time。
Source: cannery gallery
The vice-president of the shanghai institute of eternal estates has made a major leap forward in the analysis that the construction of the equity shares in 2023 was “take-over”. Since then, red star america and kaylon have significantly adjusted their development strategies and their shopping patterns, actively introducing such items as domestic clothing, new energy vehicles and the granting of rent relief to some businesses, resulting in a temporary decline in company-related revenues。
By the first half of 2025, the united states had operated 76 self-employed businesses, 235 commissions, 7 strategic cooperative businesses and 23 licensed home-based construction materials projects, including 369 construction stores/industries, covering 189 municipalities in 30 provinces, municipalities directly under the central government and autonomous regions of the country, with a total business area of approximately 1,936. 18 million square metres。
In comparison with the year 2022, before the “ownership” of the shares, the average rent rate for the red star and the united states of america declined by 2. 2 to 83 per cent, 17 self-employed businesses, 27 commissions and one strategic cooperative mall, and 24 concession-owned building materials projects, with the number of construction stores/industry streets being reduced from 476 to 405, covering the cities from 223 to 202, with a total “shrunk” area of about 9. 7 per cent, currently estimated at 203. 57 million square metres。
Source: cannery gallery
The sharp leap indicates that, although the size of red star america and kaylon has been reduced, these are also voluntary adjustments made by companies to transform. However, in the course of the adjustment, particular attention will be paid to the combination of incentive consumption policies to raise incomes and to the general interest of investors in the business of the company。
At present, red star america and kaylon are working on new business brands, digging for and working closely with head companies in entertainment, education and training, sports, wedding pictures, hotels, supermarkets。
In addition, high-end appliances have become one of the fastest growing business blocks of the united states, accounting for 9. 4 per cent of red star america's electrical operations by the end of june 2025, and in the next three years, red star america's 40 high-end electrical eco-standards, the mega-e wilight oasis, will be built across the country。
With regard to the new energy car industry, red star america and kaylon also established shanghai-based smart motors services ltd., which is responsible for recruiting and operating the plates of the new energy vehicles, and for issuing the “3100 plan” for the car industry, a new track that hatched the car industry within three years, with a total automobile business area exceeding 1 million square metres. In the first half of 2025, the united states motor vehicle operation was located in 50 malls covering 44 cities, with over 30 brands of cooperation and an area of 261,000 m2, an increase of 97,000 m2 over the area at the end of 2024。
Skywatch shows that red star america and kaylon, through indirect full-capital holdings, have also established chongqing star america and kailong hui home co. Ltd., which operates in areas such as “the sale of new energy cars in their entirety; the sale of new energy vehicle attachments; the sale of cars; and the retailing of car spare parts”。
Red star america and kaylon stated that, with the downward adjustment of interest rates, taxes and fees, consumer goods in exchange for new ones and incentives, the industry in which the company operates continues to be supported and the demand for related consumption rebounds, companies will seize the opportunities for industry development and work to improve operational efficiency and performance。
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