Weiye Holdings Limited released its unaudited results for the six months ended 30 June 2026, highlighting revenue growth offset by significant margin compression and higher credit provisioning, which deepened interim losses.

Revenue surged to RMB 49.99 million, more than quadrupling the RMB 11.42 million recorded in the prior-year period, driven chiefly by the hand-over of 4,683 sq m of net saleable floor area, mainly from the Weiye Shangcheng Sanhaoyuan (RMB 34.70 million) and Yuequan Wan Phase I (RMB 11.40 million) projects. Despite the top-line expansion, gross profit slipped 9.30 % year on year to RMB 1.83 million, as the consolidated gross margin narrowed sharply to 4 % from 18 %, reflecting steep price pressure on residential units.

Operating costs rose unevenly. Selling and distribution expenses increased to RMB 2.54 million (1H25: RMB 0.67 million) amid intensified marketing for new project launches, while administrative expenses fell 40 % to RMB 5.92 million following cost-containment measures. The Group booked a RMB 44.45 million loss allowance on trade and other receivables, the single largest driver of operating loss. Net finance costs eased 21 % year on year to RMB 7.52 million, benefitting from higher capitalisation of borrowing costs.

Consequently, loss attributable to shareholders widened to RMB 61.91 million from RMB 22.24 million a year earlier, pushing basic and diluted loss per share to 31.56 RMB cents (1H25: 11.34 RMB cents). No interim dividend was declared.

Balance-sheet pressures persisted. Net current assets declined to RMB 497.37 million from RMB 559.30 million at end-2025, reflecting lower development properties (–RMB 37.70 million) and reduced trade and other receivables (–RMB 63.0 million). Outstanding loans and borrowings remained high at RMB 992.0 million, while cash and cash equivalents totaled only RMB 18.80 million. This lifted the net gearing ratio to 125 % (31 Dec 2025: 117 %). The company flagged ongoing negotiations with lenders and construction partners to manage liquidity and resolve defaulted borrowings and related litigation.

Looking ahead, management expects China’s property market to remain polarized, with continued destocking initiatives and a strategic pivot toward asset enhancement and potential diversification into cultural and art supply-chain services. The interim results have not been reviewed by auditors, and the board affirmed no material post-period events other than a proposed name change to “DJSH International Holdings Limited,” pending shareholder approval.