Zhong An Group (672) H1 2026 earnings summary

Executive summary

• Revenue for H1 2026 was RMB1,611.2 million, down 75.4% year-over-year, mainly due to a sharp drop in property deliveries.

• Gross profit fell 81.5% to RMB127.2 million, with gross margin declining to 7.9% from 10.5% a year earlier.

• Net loss was RMB233.3 million versus a profit of RMB90.7 million in H1 2025.

• Basic loss per share was RMB3.90 cents, versus earnings per share of RMB1.15 cents last year.

• No interim dividend was declared for the period.

Financial highlights

• Recognised property sales: RMB1,232.1 million, 99,388 sq.m. at RMB12,397/sq.m. (–33% YoY).

• Cost of property sales per sq.m.: RMB11,968 (–26.8% YoY).

• Selling and distribution expenses: RMB67.4 million (–36.2% YoY); admin expenses: RMB151.5 million (–18.7% YoY).

• Finance costs: RMB179.2 million (+21% YoY); income tax: RMB128.2 million (–40.3% YoY).

• Cash and cash equivalents: RMB485.5 million (Dec 2025: RMB898.7 million).

Outlook and guidance

• The Group expects continued industry adjustment and policy support for stabilisation, with gradual market recovery anticipated.

• Focus remains on financial stability, sales clearance, and operational efficiency in H2 2026.

• The Group will leverage its Yangtze River Delta presence and brand to pursue high-quality development.

• The group will take a prudent approach to land acquisition and asset management.