Kaisa Group (1638) H1 2026 earnings summary

Executive summary

• Revenue fell 40.6% year-over-year to RMB2,196.7 million, while gross profit rose 22.7% to RMB567.8 million and gross margin improved to 25.8% due to lower costs on delivered properties.

• Net loss attributable to owners narrowed to RMB9,328.5 million from RMB10,030.5 million in H1 2025; basic loss per share improved to RMB0.945 from RMB1.430.

• Contracted sales (including joint ventures and associates) surged 474.8% year-over-year to RMB11,514.0 million, with GFA sold increasing to 193,201 sq.m.

• No interim dividend was declared for the period.

• The Group focused on asset revitalization, urban renewal, and risk mitigation amid challenging market conditions.

Financial highlights

• Sales of properties revenue dropped 65.8% to RMB714.8 million; property management revenue rose 1.2% to RMB781.3 million.

• Rental income remained stable at RMB224.9 million; hotel and catering revenue fell 10.2% to RMB95.1 million.

• Healthcare operations revenue declined 17.1% to RMB252.1 million; cultural centre operations revenue decreased 17.1% to RMB70.8 million.

• Net other losses were RMB3,941.9 million, mainly due to property write-downs and fair value changes.

• Net finance costs increased 3.7% to RMB1,246.2 million; income tax credit was RMB119.1 million.

Outlook and guidance

• Management expects continued market divergence and industry transformation toward high-quality development, with policy support for urban renewal and asset revitalization.

• Focus remains on risk mitigation, model innovation, and operational recovery, aiming to optimize business structure and cash flow.

• Plans to explore asset-light operations and improve cash flow.