Shui On Land (272) investor relations material

Executive summary

• Core earnings rose 53% year-on-year to RMB403 million in H1 2026, with profit attributable to shareholders up 337% to RMB223 million, reflecting prudent operations, cost management, and resilient rental income in a challenging market.

• Rental and related income increased 4% year-on-year to RMB1,856 million, driven by strong performance in Shanghai and new contributions from Wuhan projects.

• Retail sales and shopper traffic grew 20% and 17% year-on-year, respectively, with average retail and office occupancy rates at 94%.

• Special dividend of HKD0.04 per share declared to mark the 20th anniversary of listing.

• Recognized by TIME as one of the World's Most Impactful Companies 2026, the first Chinese property developer to receive this honor.

Financial highlights

• Revenue for H1 2026: RMB1,711 million, down 18% year-on-year due to lower residential completions.

• Gross profit fell 15% to RMB1,167 million, but gross profit margin improved to 68% (up 2ppt year-on-year).

• Net other income surged, including a RMB356 million gain from subsidiary interest purchases.

• Earnings per share increased to RMB2.78 cents from RMB0.64 cents in H1 2025.

• Net gearing ratio at 56% as of 30 June 2026, with cash and bank deposits at RMB6,142 million.

Outlook and guidance

• Market bottoming out in first-tier cities, especially Shanghai; gradual and uneven recovery expected.

• Continued focus on asset-light strategy, prudent liquidity management, and selective acquisitions.

• More residential launches planned for 2H 2026 and beyond, especially in Shanghai and Wuhan.

• Revenue and cash flows supported by a quality residential land bank, recurring rental income, and asset-light investments.

• No quick recovery expected; ongoing cost control and capital management prioritized.