Sunshine 100 China (2608) H1 2026 earnings summary

Executive summary

• Revenue for H1 2026 was RMB310.1 million, down 77.5% year-over-year, mainly due to a sharp decline in property sales and delivery volume, with gross profit of RMB35.1 million and a gross margin of 11.3%.

• Contracted sales dropped 93.9% to RMB21.0 million, with contracted sales area down 95.7% to 1,361 sq.m., reflecting severe market contraction.

• Gross profit was RMB35.1 million, while net loss attributable to shareholders was RMB1,090.6 million, and total net loss was RMB1,123.5 million, a 2% improvement from H1 2025.

• The group shifted focus from traditional development to asset operations and new business, emphasizing revitalization of existing assets and expansion into health, wellness, and cultural tourism.

• No interim dividend was declared for H1 2026.

Financial highlights

• Revenue: RMB310.1 million (down 77.5% YoY); property sales revenue: RMB56.8 million (down 94.9% YoY).

• Gross profit: RMB35.1 million (up from RMB6.2 million in H1 2025 due to reduced gross loss on delivered properties).

• Net loss: RMB1,123.5 million (down 2% YoY); loss attributable to shareholders: RMB1,090.6 million.

• Rental income: RMB48.5 million (down 14.9% YoY); property management and hotel operation income stable at RMB204.8 million.

• Finance income: RMB307.3 million (up 33.9% YoY); finance costs: RMB1,235.7 million (flat YoY).

• Cash and cash equivalents: RMB483.4 million (down RMB138.1 million from Dec 2025).

Outlook and guidance

• Strategic transformation continues, focusing on integrated asset operations and new business in health, wellness, and cultural tourism.

• Emphasis on revitalizing existing assets, optimizing business mix, and improving asset returns and cash flow.

• Strategic transformation will be supported by the Amoeba Management System and new business models.

• Ongoing efforts in onshore and offshore debt restructuring to improve liquidity and support transformation.