Longfor Group (00960) has issued an announcement. For the six months ending June 30, 2026, the company anticipates a profit attributable to shareholders ranging from RMB 1.80 billion to RMB 2.00 billion. This compares to a profit attributable to shareholders of RMB 3.22 billion in the corresponding period of 2025.

Excluding the impact of fair value changes from investment properties and other derivative financial instruments, the company's core profit attributable to shareholders for the six months ending June 30, 2026, is expected to be between RMB 50 million and RMB 100 million. This is a significant decline from the RMB 1.38 billion recorded in the first half of 2025.

The primary reason for the decrease is the ongoing adjustment phase in the real estate market. The company's focus on destocking inventory has led to a continuous decline in settlement revenue from its property development business and increased pressure on settlement gross margins.

Over the past few years, the group has been deeply integrating the transformation of its business model with the optimization of its debt structure to promote high-quality development. During the six months ending June 30, 2026, the group's operations and services businesses maintained steady growth, consistently contributing stable cash flow and profits.

The group has also continued to strengthen its financial safety. In the first half, it achieved positive operating cash flow, including capital expenditure. The scale of its liabilities has been steadily reduced, and its financing structure, financing costs, and contractual loan terms have been further optimized.

Looking ahead, the group said it will adhere to a financial safety bottom line, reduce debt in an orderly and steady manner, and maintain positive operating cash flow. At the same time, it will actively promote the steady growth of its operations and services businesses to build a solid foundation for high-quality development.