China SCE Group (1966) H1 2026 earnings summary

Executive summary

• Revenue for H1 2026 dropped 58.5% year-over-year to RMB7.68 billion, mainly due to a sharp decline in property sales income and delivered area.

• Gross profit fell 87.8% to RMB469 million, with gross margin down to 6.1% from 20.8% a year earlier.

• Loss attributable to owners was RMB3.39 billion, a 2.5% improvement from H1 2025.

• The group remains in a net liability position, with net current liabilities of RMB20.75 billion and net liabilities of RMB0.78 billion as of June 30, 2026.

• Contracted sales for H1 2026 were RMB2.18 billion, down 41.8% year-over-year; contracted sales area was 280,723 sq.m., down 39.1%.

Financial highlights

• Property sales income decreased 61.5% to RMB6.73 billion; delivered area dropped 53.5% to 679,323 sq.m.

• Property management fees rose slightly by 1.1% to RMB636 million; rental income fell 13.6% to RMB245 million.

• Finance costs decreased 4.6% to RMB808 million.

• Income tax turned to a credit of RMB86 million from an expense of RMB923 million in H1 2025.

• Basic and diluted loss per share: RMB(0.804).

Outlook and guidance

• The market is expected to remain in a bottoming-out phase in H2 2026, with stable but subdued transaction volumes.

• Focus will be on refined management, flagship project development, and product innovation to enhance competitiveness.

• The group aims to control project launches, improve synergy between construction and sales, and innovate marketing approaches.

• Continued emphasis on customer-centric product innovation and sales strategy adaptation.