ZHUGUANG HOLD posts wider interim loss as revenue falls 27%; gears up for debt talks and urban-renewal focus

Bulletin Express
09/28

ZHUGUANG HOLD reported a HK$0.26 billion net loss for the six months ended 30 June 2026, widening from a HK$0.25 billion deficit a year earlier, as group revenue slipped 27% to HK$1.08 billion.

Key financials • Revenue: HK$1.08 billion (1H 2025: HK$1.47 billion)  – Property development: HK$0.64 billion (-28%)  – Project management services: HK$0.37 billion (-27%)  – Property investment & hotel operations: HK$0.06 billion (-6%)

• Gross profit: HK$0.58 billion (-42%) • Fair-value loss on investment properties: HK$0.14 billion (1H 2025: HK$0.18 billion) • Net finance costs: HK$0.51 billion (1H 2025: HK$0.58 billion) • Net loss attributable to shareholders: HK$0.26 billion (loss per share: HK$0.033) • Negative equity: HK$3.04 billion; gearing ratio: 123% • Cash and bank balances: HK$12.71 million; interest-bearing debt: HK$16.41 billion

Operational highlights • Contracted sales rose 196% to HK$79.17 million on higher volume at Guangzhou’s “Zhuguang Financial Town One”. • Land bank stood at 0.78 million sqm GFA, concentrated in Guangzhou and other Guangdong locations. • Rental income edged up 1% to HK$36.53 million; hotel revenue declined 14% to HK$24.44 million on lower occupancy.

Balance-sheet pressures • Short-term borrowings account for 99.8% of total debt; HK$1.63 billion senior notes mature in September 2025. The company is negotiating maturity extensions with noteholders. • Management acknowledged material uncertainties over going-concern status but is seeking loan renewals, new credit lines, faster project cash collections and additional asset sales to improve liquidity.

Corporate actions • Completed disposal of the entire 29.5% stake in Silver Grant International for HK$81.59 million on 31 March 2026. • No interim dividend declared.

Outlook Management expects market conditions to remain challenging amid China’s property sector adjustment but will prioritise urban-renewal projects, focus on Guangzhou sales, and pursue collaborations to strengthen its financial position and project pipeline.

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