Gemdale Properties and Investment (535) investor relations material

Executive summary

• Revenue for the six months ended 30 June 2026 dropped 83% year-over-year to RMB1,122.0 million due to a prolonged property slump and weak purchasing power in Mainland China.

• Loss attributable to owners increased 11% year-over-year to RMB1,116.3 million, with basic loss per share at RMB0.0672.

• Property development revenue fell sharply, while property investment and management became a larger revenue contributor.

• No interim dividend was declared for the period.

Financial highlights

• Gross profit decreased 57% year-over-year to RMB399.3 million.

• Other income and gains rose to RMB215.5 million, mainly due to a RMB19.2 million gain on subsidiary disposal.

• Direct operating expenses fell to RMB487.7 million, reflecting cost-cutting measures.

• Finance costs decreased to RMB439.1 million, aided by lower interest rates.

• Impairment losses on receivables were RMB357.8 million, mainly from joint ventures.

Outlook and guidance

• The PRC real estate sector is expected to show gradual recovery in the second half of 2026, supported by government stimulus, low interest rates, and improved consumer confidence.

• The company will focus on financial stability, liquidity, and flexible sales strategies to maintain its industry position.