Gemdale Properties and Investment (535) H1 2026 earnings summary

Executive summary

• Revenue for H1 2026 dropped 83% year-over-year to RMB1,122.0 million, mainly due to a prolonged property market slump and weak purchasing power in Mainland China.

• Loss attributable to owners increased to RMB1,116.3 million from RMB1,008.2 million year-over-year, with basic loss per share at RMB0.0672.

• Significant impairment losses on receivables and higher losses from joint ventures and associates contributed to the increased loss.

• Property development revenue fell sharply, while property investment and management became a larger revenue contributor.

• No interim dividend was declared for H1 2026.

Financial highlights

• Gross profit fell to RMB399.3 million from RMB931.2 million year-over-year, a 57% decrease.

• Direct operating expenses decreased to RMB487.7 million from RMB608.5 million, reflecting cost-cutting measures.

• Finance costs declined to RMB439.1 million from RMB493.8 million due to lower loan interest rates.

• Other income and gains rose to RMB215.5 million, mainly due to a RMB19.2 million gain on subsidiary disposal.

• Impairment losses on receivables totaled RMB357.8 million, mainly from joint ventures, down from RMB773.9 million year-over-year.

Outlook and guidance

• The PRC real estate sector is expected to show gradual recovery in H2 2026, supported by government stimulus, low interest rates, and improved consumer confidence, especially in first-tier cities.

• The Group will focus on financial stability, flexible pricing, and accelerating sales revenue collection to ensure liquidity and maintain its industry position.