REDCO GROUP (01622) has released its interim results for the six months ended June 30, 2026. The group recorded revenue of RMB 1.302 billion during the period, representing an increase of 31.72% year-on-year. However, the loss attributable to owners of the company stood at RMB 1.369 billion, expanding by 131.99% compared to the same period last year. The basic loss per share was RMB 38.54 cents.

According to the announcement, the increase in losses was primarily driven by a significant rise in financing costs. This was due to the challenging market environment in China, which led to the slowdown and suspension of certain property development projects, resulting in a larger proportion of borrowing costs not qualifying for capitalization. The increase was partially offset by a shift from gross loss to gross profit, as well as reductions in selling and marketing expenses and general and administrative expenses.