Redsun Properties Group Limited (RSUN PPT, “Redsun Properties”) reported a sharp deterioration in operating performance for the six months ended 30 June 2026, underscoring the severe pressure facing China’s private-sector developers.

Revenue and Sales • Consolidated revenue fell 74.20 % year on year to RMB 700.32 million (USD 96 million). • Property development revenue declined 77.50 % to RMB 573.37 million, representing 81.9 % of total revenue. • Commercial operations contributed RMB 126.94 million, down 24.0 %. The hotel segment generated no revenue after suspending operations. • Contracted sales dropped 67.1 % to RMB 944.14 million, with contracted gross floor area of 99,998 sq m and an average selling price of RMB 9,442 per sq m.

Profitability • Cost of sales decreased 37.8 % to RMB 1.82 billion, but sizeable impairment charges on properties under development and completed units (RMB 1.15 billion) drove a gross loss of RMB 1.12 billion, versus a RMB 222.12 million loss a year earlier. • Gross loss margin widened to 160.5 % from 8.2 %. • Net loss narrowed 24.2 % to RMB 1.76 billion, helped by a 74.8 % fall in finance costs to RMB 136.29 million and lower equity-accounted losses from joint ventures and associates (RMB 447.04 million, down 63.8 %). • Selling and distribution expenses fell 85.8 % to RMB 10.86 million; administrative expenses declined 16.9 % to RMB 50.90 million.

Balance-Sheet and Liquidity • Cash and bank balances stood at RMB 464.57 million, of which RMB 190 million was restricted. • Total borrowings amounted to RMB 20.01 billion, including RMB 10.04 billion of bank and other loans and RMB 9.98 billion of senior notes. • Cash-to-short-term-debt coverage remained low at 0.03 ×. • Net current liabilities widened to RMB 13.23 billion; total equity turned negative at RMB 143.99 million, pushing the net gearing ratio to –13,576.5 %. • Interest-bearing bank loans of RMB 4.77 billion and senior notes plus accrued interest of RMB 13.60 billion were in default as at 30 June 2026, prompting management to disclose “material uncertainties” over going-concern status. The Group is negotiating debt extensions, new financing and asset disposals.

Segment Assets At period-end, Redsun held a land bank of 6.97 million sq m GFA, comprising 2.11 million sq m completed, 1.03 million sq m investment properties and 3.83 million sq m under development.

Legal Proceedings A winding-up petition filed in Hong Kong over a USD 228.50 million defaulted note remains pending; the High Court has adjourned the hearing to 5 October 2026.

Dividend No interim dividend was proposed.

Management Outlook Management expects China’s real-estate policy stance to stay supportive in 2H26, with destocking and demand stimulation highlighted as priorities. Redsun intends to prioritize project delivery, cash collection, cost control and risk management while pursuing asset disposals and debt restructuring to stabilize operations.