ZHONGAN GROUP reported a sharp reversal in the six months to 30 June 2026, moving to a net loss of RMB233.30 million from a profit of RMB90.70 million a year earlier.

Revenue contracted 75.4% to RMB1.61 billion, driven by an 80.0% plunge in property sales to RMB1.23 billion. Gross profit dropped 81.5% to RMB127.20 million, with margin narrowing to 7.9% (1H 2025: 10.5%). No interim dividend was declared.

Contracted sales reached RMB1.05 billion on 80,422 sq.m. of gross floor area (GFA). Recognised sales totalled RMB1.23 billion on 99,388 sq.m., implying an average selling price of RMB12,397 per sq.m., while unit cost fell 26.8% year-on-year to RMB11,968 per sq.m.

Segment performance: • Property leasing revenue edged up 0.4% to RMB65.13 million, with average occupancy at roughly 80%. • Hotel operations generated RMB79.21 million (-20.1% YoY). • Property management and ancillary services contributed RMB234.80 million; within this, community value-added services surged 2.6-fold to RMB49.80 million, lifting segment revenue 10.9% to RMB238 million and expanding its share to 20.9%.

Balance sheet highlights (30 June 2026): • Total assets RMB26.72 billion; total liabilities RMB16.03 billion; equity RMB10.69 billion. • Cash, cash equivalents and restricted cash RMB485.48 million (31 Dec 2025: RMB898.73 million). • Interest-bearing bank and other borrowings trimmed to RMB6.45 billion (31 Dec 2025: RMB6.78 billion); average funding cost reduced to 4.65% (31 Dec 2025: 4.98%). • Net gearing stood at 55.8%, asset-liability ratio at 60.0% (-2.2 ppts from year-end 2025), and current ratio improved to 1.53.

Operating cash outflow narrowed to RMB105.11 million (1H 2025: outflow RMB252.25 million).

Development pipeline: • Land bank totals 6.52 million sq.m. at an average cost of RMB2,550 per sq.m., providing more than five years of development runway.

Management reiterated its “deepening the Yangtze River Delta” strategy, prioritising financial discipline, accelerating inventory digestion and sustaining product quality. No subsequent events material to the Group’s financial position were reported up to the interim report date of 21 August 2026.