Zhong An Group (672) H1 2026 earnings summary

Executive summary

• Revenue for the six months ended 30 June 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, compared to a profit of RMB90.7 million in the prior year period.

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

• No interim dividend was declared.

Financial highlights

• Sales of properties generated RMB1,232.1 million, down 80.0% year-over-year.

• Property leasing revenue was RMB65.1 million, up 0.4%; hotel operations revenue was RMB79.2 million, down 20.1%.

• Property management and other services revenue was RMB234.8 million, nearly flat year-over-year.

• Cost of sales decreased 74.7% to RMB1,484.0 million.

• Other income and gains dropped 85.3% to RMB24.6 million, mainly due to a one-time gain in the prior year.

• Selling and distribution expenses fell 36.2% to RMB67.4 million; administrative expenses dropped 18.7% to RMB151.5 million.

• Finance costs rose 21.0% to RMB179.2 million due to lower interest capitalization.

• Income tax expense decreased 40.3% to RMB128.2 million.

Outlook and guidance

• The real estate sector in China is stabilizing but remains under pressure, with ongoing structural adjustments and destocking.

• Policy support is expected to continue, but full market confidence recovery will take time.

• The group will focus on securing delivery, stabilizing operations, and controlling risks, with a prudent approach to land acquisition and asset management.