Zhong Hua Int’l Posts 59% Surge in H1 2026 Net Profit; Strengthens Balance Sheet Ahead of Guangzhou Redevelopment

Bulletin Express
09/23

Zhong Hua International Holdings Limited reported revenue of HK$16.52 million for the six months ended 30 June 2026, up 6.5% year on year. Profit attributable to equity holders rose 59.0% to HK$16.16 million, supported by a HK$54.24 million fair-value gain on the Group’s 25% stake in Guangzhou Zheng Da Real Estate Development Company, driven largely by Renminbi appreciation.

Adjusted EBITDA advanced to HK$5.95 million from HK$2.91 million, reflecting improved operating leverage. Group profit before tax reached HK$60.01 million versus HK$43.20 million a year earlier, while profit after tax climbed to HK$56.79 million (1H 2025: HK$40.56 million).

Liquidity remained solid with operating cash inflow of HK$8.06 million (1H 2025: HK$6.03 million) and cash and bank balances of HK$68.60 million at 30 June 2026, up from HK$59.41 million at end-2025. Net current assets improved to HK$6.23 million, and net assets rose to HK$1.06 billion. The gearing ratio stayed low at 0.09.

Investment properties in Chongqing’s Guang Yu Square continue to deliver stable rental income, while the Group’s largest asset—its equity interest in Guangzhou Zheng Da—stood at HK$1.06 billion, representing 72% of total assets. The Group is monitoring the protracted liquidation proceedings involving Zheng Da; management remains confident of a favorable resolution and has extended the long-stop date for the related acquisition agreement to 30 June 2029.

Capital expenditure needs are expected to be met from internal cash flows, and no interim dividend was declared. The HK$12.00 million in unutilised proceeds from the April 2020 share placement remains earmarked for potential redevelopment costs in Guangzhou, with a decision on reallocation pending.

Zhong Hua Int’l continues to explore “novel and quality productivity” initiatives, including pilot heavy-truck charging stations in the Greater Bay Area, with commercial contribution targeted within one to two years.

Management expects China’s property market to face continued headwinds over the next one to two years but remains focused on leveraging core assets in Chongqing and progressing the planned twin-tower commercial complex in Guangzhou, slated for phased completion between 2029 and 2031.

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