Tian An Australia’s Profit Surge Masks Risks from Inflation and Project Delays
Tian An Australia Limited has reversed last year’s loss to report a $12.08 million profit for H1 2025, while progressing key residential developments across Australia.
- Statutory profit after tax of $12.08 million, reversing prior loss
- Revenue steady at $78.53 million for the half-year
- Key projects – Auburn Square stage 2, Hammond Greens SSDA approval pending
- Solid capital position supported by $230 million interest-free loan from parent
- No dividends declared; focus on new residential development opportunities
Financial Turnaround Amid Challenging Market
Tian An Australia Limited (TIA) has reported a significant turnaround in its financial performance for the half-year ended 30 June 2025, posting a statutory profit after tax of $12.08 million compared to a loss of $4.17 million in the same period last year. Revenue remained robust at $78.53 million, reflecting continued demand in the residential property sector despite prevailing high interest rates.
The company’s improved results come as it steadily sells down completed stock and advances construction and approvals on several key projects. Notably, stage 2 of the Auburn Square development is set to commence construction in the second half of 2025, following a successful presale launch in May.
Project Progress and Strategic Developments
TIA’s portfolio spans the east coast and Western Australia, with ongoing activity in multiple locations. The Henley project in Enfield, NSW, reached completion in May 2025, with 70% of townhouses sold. In Chatswood, the Hammond Greens project awaits State government SSDA approval expected in the third quarter, while Hammond Place continues land acquisitions, with final purchases anticipated by year-end.
In Western Australia, the company is pursuing amendments to the local structure plan for its Point Grey site, aiming for approval within 6 to 12 months. These developments underscore TIA’s commitment to expanding its residential footprint amid a housing shortage and rising prices in Australia.
Financial Position and Support from Parent Entity
TIA’s balance sheet remains solid, bolstered by a $230 million interest-free loan facility from its ultimate parent, Tian An China Investments Company Limited. This facility, extended through to December 2027, provides the company with financial flexibility to navigate market uncertainties and fund ongoing projects.
The Group also recognised deferred tax assets of $3.86 million related to carried forward tax losses, which may offset future tax liabilities as profitability continues. Cash reserves increased to $2.89 million, and net current assets rose to $53.3 million, reflecting improved operational cash flows.
Outlook and Market Considerations
While the Australian economy shows signs of easing inflation and anticipated interest rate cuts, the company remains cautious about potential impacts from inflation and construction cost volatility. TIA continues to evaluate economic conditions and their effects on asset values, maintaining a focus on residential developments that align with its investment criteria.
The company has not declared any dividends during the period, opting instead to reinvest in growth opportunities. Its strategy includes exploring affordable housing options in Chatswood to address declining housing affordability, a move that could resonate well with market demand and regulatory expectations.
Bottom Line?
Tian An Australia’s return to profitability and steady project pipeline position it well, but economic headwinds and project timing remain key watchpoints.
Questions in the middle?
- How will inflation and construction cost trends affect project margins and timelines?
- What is the outlook for approvals on key projects like Point Grey and Hammond Greens?
- Will Tian An Australia consider dividend payments as profitability stabilises?
