Seazen Group (1030) H1 2026 earnings summary

Executive summary

• Revenue for the first half of 2026 was RMB17,686.4 million, down 20.2% year-over-year due to a decline in property sales amid a real estate downturn.

• Gross profit increased to RMB5,424.0 million, with gross margin rising to 30.7% from 24.4%, driven by a higher share of commercial property management and rental income.

• Net profit attributable to equity holders was RMB608.1 million, a 12.1% decrease year-over-year.

• All business segments operated steadily, with commercial operations expanding to 181 Wuyue Plazas and residential deliveries exceeding 10,000 properties.

• Net debt-to-equity ratio stood at 57.1%.

Financial highlights

• Revenue: RMB17,686.4 million (down 20.2% year-over-year).

• Gross profit: RMB5,424.0 million; gross margin: 30.7% (up 6.3 percentage points year-over-year).

• Net profit attributable to equity holders: RMB608.1 million (down 12.1% year-over-year); adjusted core earnings (non-HKFRS): RMB626.9 million.

• Cash and cash equivalents: RMB7.85 billion as of 30 June 2026; restricted funds: RMB2.33 billion.

• Weighted average borrowing cost: 6.0% per annum; 80.5% of borrowings are long-term.

Outlook and guidance

• The company will focus on stability and quality, deepening asset transformation, optimizing asset structure, and pursuing sustainable growth in commercial operations.

• Plans to expand external markets in construction management, implement REITs, and optimize debt structure.

• No interim dividend recommended or declared for the period.