Redsun Properties Group (1996) H1 2026 earnings summary

Executive summary

• Revenue for H1 2026 was RMB700.3 million, down 74.2% year-over-year, mainly due to a sharp decline in property sales and commercial operations revenue.

• Net loss narrowed to RMB1,757.9 million from RMB2,320.6 million in H1 2025.

• Contracted sales dropped 67.1% year-over-year to RMB944.0 million, with a total sales area of 99,998 sq.m. and an average selling price of RMB9,440/sq.m.

• Gross loss widened to RMB1,124.3 million, with a gross loss margin of 160.5%, mainly due to higher impairment provisions.

• No interim dividend was declared for the period.

Financial highlights

• Cost of sales decreased 37.8% to RMB1,824.6 million, reflecting fewer project deliveries.

• Selling and distribution expenses fell 85.8% to RMB10.9 million; administrative expenses decreased 16.9% to RMB50.9 million.

• Finance costs dropped 74.8% to RMB136.3 million, aided by exchange gains and lower borrowings.

• Taxation expense was RMB81.8 million, down 73.0% year-over-year.

• Loss per share was RMB(0.51) (vs. RMB(0.56) prior year).

Outlook and guidance

• The real estate market remains in an adjustment phase, with continued policy support and destocking strategies expected in H2 2026.

• Structural polarization between high-tier and lower-tier cities is expected to intensify, with demand and land resources concentrating in core cities.

• The company will prioritize cash flow management, receivables collection, cost control, and safeguarding project delivery.