Powerlong Real Estate (1238) investor relations material

Executive summary

• Revenue for the six months ended 30 June 2026 was RMB8,184 million, down 38.2% year-over-year, mainly due to lower property sales and rental income.

• Loss attributable to owners narrowed to RMB592 million from RMB2,652 million in the prior year, a 77.7% reduction.

• Gross profit fell 72.9% to RMB548 million, with gross margin dropping to 6.7% from 15.3%.

• Debt restructuring gains of RMB3,106 million were recognized, offsetting some operating losses.

Financial highlights

• Contracted sales reached RMB3,420 million, with a contracted sales area of 332,199 sqm.

• Rental and property management income was RMB1,913 million, down 10.8% year-over-year.

• Cost of sales decreased 32% to RMB7,636 million, reflecting lower delivery volumes.

• Core losses (excluding non-recurring items) were RMB1,989 million, up from RMB1,632 million.

• No interim dividend was declared.

Outlook and guidance

• The real estate market is expected to continue a bottoming-out recovery with ongoing policy support and risk resolution.

• The group will focus on prudent operations, asset revitalization, and digital transformation to stabilize and grow.

• Continued emphasis on the Yangtze River Delta and premium land bank expansion.