Longfor Group (960) investor relations material

Executive summary

• Revenue for 1H2026 was RMB39.80 billion, with property development contributing RMB26.10 billion, property operation RMB7.30 billion, and property service RMB6.40 billion.

• Profit attributable to owners was RMB1.96 billion, with core net profit (excluding fair value changes) at RMB64 million.

• No interim dividend was declared for 2026.

• The company maintained positive operating cash flow and reduced interest-bearing debt to RMB147.1 billion.

Financial highlights

• Gross profit for 1H2026 was RMB4.42 billion, down from RMB7.42 billion year-over-year.

• Net profit attributable to owners decreased to RMB1.96 billion from RMB3.22 billion year-over-year.

• Basic EPS was RMB0.29; core basic EPS (excluding fair value changes) was RMB0.009.

• Administrative expenses fell 10.2% year-over-year to RMB1.54 billion; selling expenses dropped 20.3% to RMB1.22 billion.

• Average finance cost was 3.36% per annum.

Outlook and guidance

• The company will continue to focus on reducing inventory, revitalizing existing assets, and enhancing product competitiveness.

• Plans to open six new shopping malls in the second half of 2026, maintaining a balanced asset-light and asset-heavy strategy.

• Will prioritize steady debt reduction and positive operating cash flow.