Shimao Group (813) investor relations material

Executive summary

• Revenue for H1 2026 was RMB10.961 billion, down 26.1% year-over-year due to lower delivered floor area and contracted sales.

• Loss attributable to equity holders narrowed by 30.7% to RMB6.187 billion from RMB8.93 billion in H1 2025, mainly due to reduced gross loss and impairment provisions.

• Contracted sales reached RMB8.208 billion with a gross floor area of 667,945 sq.m. for H1 2026, reflecting ongoing market challenges and a focus on cash flow stability.

• The Group focused on cash flow security, risk mitigation, and prudent operations amid a challenging property market.

• No interim dividend was declared or proposed for the period.

Financial highlights

• Gross loss decreased sharply to RMB36 million from RMB908 million year-over-year.

• Net finance costs fell to RMB2.3 billion from RMB3.18 billion, aided by lower interest rates and FX gains.

• Cash and bank balances stood at RMB10.844 billion, with total borrowings at RMB176.143 billion as of June 30, 2026.

• Basic and diluted loss per share were RMB0.66, compared to RMB2.36 in H1 2025.

• Operating loss was RMB4.156 billion, down from RMB5.254 billion year-over-year.

Outlook and guidance

• Market recovery remains uncertain, with a full-scale rebound expected to take more time.

• The Group is focused on accelerating sales and delivery of existing inventory, negotiating debt extensions, and seeking alternative financing.

• Directors believe that, with successful implementation of restructuring and financing plans, the group can continue as a going concern.