Fantasia Holdings Group Co., Limited (Fantasia-New, 01777) reported unaudited interim results for the six months ended 30 June 2026 that highlight deepening operational and liquidity challenges.

Revenue and Profitability Fantasia’s revenue fell 51.5 % year on year to RMB913.29 million, reflecting a sharp contraction in property sales and property management income. Gross profit declined 56.9 % to RMB141.79 million, with gross margin narrowing to 15.5 % from 17.5 % a year earlier. Loss attributable to shareholders expanded 34.0 % to RMB4.25 billion, while basic and diluted loss per share widened to RMB0.7362.

Segment Performance • Property development revenue dropped 60.1 % to RMB151 million, driven by lower delivered gross floor area (GFA). • Property investment rental income decreased 31.9 % to RMB75 million due to reduced leased area and occupancy. • Property operation services revenue fell 51.8 % to RMB667.77 million, partly reflecting subsidiary disposals. • Other services generated RMB18.99 million.

Financial Position and Liquidity At 30 June 2026, Fantasia’s cash balance was RMB289.65 million, down 81.1 % from year-end 2025. Net current liabilities stood at RMB32.39 billion and total net liabilities reached RMB27.79 billion. The group was in default on RMB42.92 billion of interest-bearing debt as scheduled repayments were missed. Short-term borrowings totalled RMB18.31 billion, while senior notes and bonds maturing within one year amounted to RMB44.07 billion.

Going-Concern Uncertainty Auditors issued a disclaimer of conclusion, citing multiple uncertainties over Fantasia’s ability to continue as a going concern. Management is pursuing measures including an offshore debt restructuring—effective 30 July 2026—renewal of onshore borrowings, accelerated property sales, asset disposals and stringent cost control. Success of these initiatives remains critical to stabilising liquidity.

Balance Sheet Highlights • Total assets: RMB58.99 billion (-11.6 % versus end-2025). • Investment properties: RMB5.41 billion. • Land bank: 6.85 million square metres of GFA, split between projects under construction (0.93 million sq m) and held-for-development (5.92 million sq m).

Operational Metrics Contracted sales for 1H26 were RMB625 million on 0.11 million sq m, with the Bohai Rim region contributing 53.9 % of value. The group completed one project phase (27,054 sq m GFA) during the period and had 11 projects under construction.

Cost Management Selling and distribution plus administrative expenses fell 42.4 % to RMB185 million, reflecting headcount reduction (staff numbers fell to 3,514 from 17,382 at end-2025) and other austerity measures. Nevertheless, finance costs rose 6.0 % to RMB2.35 billion as capitalised interest declined.

Dividends and Outlook The board has not declared an interim dividend. Management’s near-term focus remains on implementing the debt restructuring, accelerating asset sales and preserving liquidity to address substantial upcoming maturities and restore financial stability.