China Merchants Shekou Industrial Zone (001979) H1 2026 earnings summary

Executive summary

• Revenue for H1 2026 reached ¥54.78 billion, up 6.41% year-over-year, while net profit attributable to shareholders dropped 63.54% to ¥528 million due to lower gross margins in real estate and reduced investment income.

• Cash flow from operating activities improved significantly to ¥24.14 billion, driven by higher property sales collections and reduced land/baseline construction outlays.

• The company maintained a strong liquidity position, with cash and cash equivalents at ¥98.45 billion and a cash/short-term debt ratio of 1.10.

Financial highlights

• Gross margin for development business declined by 0.92 percentage points to 15.35%.

• Operating cash flow increased by 1303.21% year-over-year.

• Basic and diluted EPS were both ¥0.06, down 57.14% year-over-year.

• Net asset value attributable to shareholders was ¥97.46 billion, slightly down from year-end 2025.

• Non-recurring gains (mainly asset disposals and government grants) contributed ¥465 million to profit.

Outlook and guidance

• The company expects continued policy support and market stabilization in core cities, but anticipates ongoing structural differentiation and pressure in lower-tier markets.

• Strategic focus will remain on high-quality development, cash flow management, and business transformation toward integrated development, operation, and services.