Greentown China (3900) H1 2026 earnings summary

Executive summary

• Maintained top-tier sales performance with RMB 94.7 bn in total sales, ranking Top4 nationally, with self-investment projects contributing RMB 60.2 bn.

• Focused on core tier-1 and tier-2 cities, with 94% of sales and new land acquisitions in these markets.

• Customer satisfaction score reached 93.3, ranking Top1 in 16 cities.

• Revenue for the six months ended 30 June 2026 was RMB 39,481 mn, down 26.0% year-over-year, with profit attributable to owners at RMB 82 mn, a 61.0% decrease.

• Cash and bank deposits stood at RMB 61,865 mn, 2.0 times the balance of borrowings due within one year, supporting liquidity.

Financial highlights

• Revenue for 1H2026 was RMB 39,481 mn, down 26.0% year-over-year; gross profit declined 38.7% to RMB 4,388 mn.

• Net profit attributable to owners was RMB 82 mn, down from RMB 210 mn; basic EPS was RMB 0.03, down 62.5% year-over-year.

• Gross profit margin declined to 11.1% from 13.4% in 1H2025, mainly due to lower recognized property sales and destocking.

• Weighted average interest cost of borrowings decreased to 3.2%, a record low.

• Net gearing ratio improved to 63.9% from 66.4% at year-end 2025.

Outlook and guidance

• Industry expected to continue bottoming out for recovery in 2H2026, with ongoing policy support.

• Policy focus remains on stabilizing the real estate market, with supply-demand gradually improving.

• Company aims to amplify comparative advantages, maintain robust execution, and uphold cash flow security.

• Key operational measures include refining investment, enhancing cost-effectiveness, and driving digital innovation.

• Saleable value of self-investment projects for H2 2026 is RMB 125.6 bn, with 85% in first- and second-tier cities.