Longfor Group Holdings Limited released an inside-information announcement on 14 August 2026 indicating a significant downturn in interim earnings.

The developer expects profit attributable to owners for the six months ended 30 June 2026 to range between RMB1.80 billion and RMB2.00 billion, down 37.9%–44.1% from RMB3.22 billion in the prior-year period.

Core net profit—excluding fair-value changes of investment properties and derivative financial instruments—is projected at only RMB0.05 billion to RMB0.10 billion versus RMB1.38 billion a year earlier, representing a contraction of roughly 92.8%–96.4%.

Management attributes the sharp decline to: 1. A prolonged adjustment period in China’s real-estate market, and 2. The company’s strategic focus on inventory destocking, which led to reduced recognised revenue from property development and continued pressure on gross margins.

Despite weaker development earnings, the announcement highlights that: • Property operation and property service segments maintained steady growth, delivering stable cash flow and profit. • Group operating cash flow, including capital expenditures, remained positive in the first half of 2026. • Total debt was “steadily reduced,” while financing structure, borrowing maturity profile, and financing costs were further optimised.

Looking ahead, the board emphasises a commitment to: • Preserving financial safety, • Continuing orderly debt reduction, • Sustaining positive operating cash flow, and • Driving steady expansion of property operation and service businesses.

The interim results are still being finalised and remain unaudited. The formal H1 2026 results announcement is scheduled for publication on or before 31 August 2026. Shareholders and potential investors are advised to exercise caution when dealing in Longfor Group shares.