Longfor Group (960) H1 2026 earnings summary

Executive summary

• Revenue for H1 2026 was RMB39.80 billion, with property development contributing RMB26.10 billion, property operation RMB7.30 billion, and property service RMB6.40 billion, reflecting a challenging property market and sector-wide transition to quality-focused growth.

• Core attributable profit was RMB64 million, with a core net profit margin of 0.19% and EPS of RMB0.285, both significantly lower than the prior year.

• Profit attributable to owners was RMB1.96 billion.

• The Group maintained strict financial discipline, reducing interest-bearing debt to RMB147.1 billion, with bank loans comprising 91% and average finance cost at 3.36%.

• Operating cash flow remained positive after capital expenditures, supporting ongoing debt reduction.

Financial highlights

• Revenue: RMB39.80 billion (down 32.3% year-over-year).

• Gross profit: RMB4.42 billion (down from RMB7.42 billion year-over-year).

• Net profit attributable to owners: RMB1.96 billion (down from RMB3.22 billion year-over-year).

• EPS: RMB0.285 (down from RMB0.477 year-over-year); core basic EPS (excluding fair value changes): RMB0.009.

• Administrative expenses fell 10.2% year-over-year to RMB1.54 billion; selling expenses dropped 20.3% to RMB1.22 billion.

• Total assets: RMB565.7 billion; total equity: RMB235.1 billion.

• Net debt to equity ratio: 52.0%.

• Average finance cost: 3.36%.

• No interim dividend declared for H1 2026.

Outlook and guidance

• The Group will continue to focus on high-quality development, prudent financial management, and customer-centric strategies.

• Plans to open approximately six new shopping malls in H2 2026 in key cities, maintaining a balanced asset-light and asset-heavy approach.

• Ongoing efforts to reduce inventory, optimize land reserves, and enhance product competitiveness.

• Commitment to maintaining positive operating cash flow and further deleveraging.