Sunshine 100 China Holdings (Sunshine 100) reported a RMB310.10 million revenue for the six months ended 30 June 2026, down 77.50% year-on-year, reflecting a collapse in property deliveries and muted contracted sales. Gross profit came in at RMB35.10 million, translating to an 11.3% margin versus 0.5% a year earlier, but valuation losses, financing costs and shrinking other income drove a net loss of RMB1.12 billion (1H 2025: RMB1.15 billion).

Operating highlights • Contracted sales plunged 93.9% to RMB21.00 million on 1,361 sq m of floor space; 97% originated from Bohai Rim projects. • No new construction starts or project completions were recorded; projects under construction total 0.97 million sq m. • Investment-property rental income slipped 14.9% to RMB48.50 million as lettable space declined. • Land bank stood at 3.30 million sq m GFA, with 46% located in the Bohai Rim region.

Balance-sheet pressure • Total assets: RMB37.35 billion; total liabilities: RMB47.15 billion; debt-to-asset ratio: 126.2% (end-2025: 123.1%). • Net liabilities: RMB9.80 billion; deficit attributable to shareholders: RMB10.68 billion. • Cash and cash equivalents: RMB483.40 million versus current borrowings of RMB22.56 billion. • Total borrowings: RMB22.95 billion, 98% classified as current. • Pledged assets carry a book value of RMB11.98 billion.

Bond and loan defaults The group remains in default on: 1) USD50.87 million 6.5% convertible bonds (matured Aug 2021); 2) USD258.10 million 10.5% senior notes (matured Dec 2021); 3) USD219.60 million 13.0% senior green notes (matured Jun 2022); 4) USD120.00 million 12.0% senior notes (matured Oct 2023); 5) Three onshore bonds totalling RMB2.20 billion that matured between Sep 2022 and Feb 2023.

Accrued and unpaid interest totals USD298.47 million for offshore notes and RMB947.07 million for onshore bonds. Cross-default provisions have been triggered, and several loans are overdue.

Going-concern risk Management flagged “multiple material uncertainties” on going concern, citing negative working capital of RMB17.08 billion and a winding-up petition filed in March 2026. Mitigation efforts include asset sales, debt restructuring, project co-development, and cost controls, but successful execution remains uncertain.

Cash flow and financing Operating cash outflows, absence of new financing lines, and a heavy near-term maturity schedule heighten liquidity risk. No interim dividend was proposed.

Governance and compliance A vacancy on the audit committee following an INED’s passing leaves the company non-compliant with HKEX Rule 3.21; recruitment is underway. Sunshine 100 also seeks court approval to defer certain land-appreciation tax settlements.

Outlook The group plans to pivot from land-bank expansion to “revitalising existing assets” and asset-light businesses in health and cultural tourism, while continuing negotiations with creditors to restructure both onshore and offshore debt.