GREENTOWN CHINA (03900) has issued a profit warning, revealing that its attributable profit for the first half of 2026 is expected to fall sharply to between approximately RMB 50 million and RMB 100 million, compared to RMB 210 million recorded in the same period of 2025.

The company attributed the decline primarily to a year-on-year drop in both the area and average price of properties delivered in the first half, which led to lower revenue. Additionally, with the real estate market still in a period of adjustment, the company has continued to actively push forward the clearance of long-standing inventory to support its long-term development, resulting in a decline in the gross margin on revenue recognized during the period.

Furthermore, GREENTOWN CHINA recorded a certain amount of asset impairment losses, which further impacted the profit attributable to shareholders. During the first half of the year, the group continued to reduce its interest-bearing debt, keeping its short-term debt ratio below 25%, a relatively low level. At the same time, the company maintained ample cash reserves, with a cash-to-short-term-debt ratio of more than 2 times, remaining at a high level and ensuring overall operational safety and stability.