Powerlong Real Estate (1238) investor relations material

Executive summary

• Revenue for H1 2026 was RMB8,184 million, down 38.2% year-over-year, mainly due to lower property sales and rental income.

• Loss attributable to owners was RMB592 million, a significant improvement from RMB2,652 million loss in H1 2025, representing a 77.7% reduction.

• Gross profit margin dropped to 6.7% from 15.3% year-over-year, with gross profit falling 72.9% to RMB548 million.

• The group completed a major onshore debt restructuring, resulting in a one-time gain of RMB3,106 million.

Financial highlights

• Property sales revenue fell 45.3% to RMB5,850 million; rental and management income decreased 10.8% to RMB1,913 million.

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

• Core losses (excluding non-recurring items) attributable to owners were RMB1,966 million, up from RMB1,760 million.

• Cash and cash equivalents plus restricted cash stood at RMB7,521 million, up 3.9% from year-end 2025.

• Total borrowings decreased 9.6% to RMB49,775 million; net gearing ratio improved to 107.7%.

Outlook and guidance

• The group expects continued marginal recovery and structural differentiation in the real estate market in H2 2026, with ongoing policy support and risk resolution.

• Focus remains on risk management, asset revitalization, prudent operations, and digital transformation.

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