China New Town Development Company Limited (CHINANEWTOWN) reported solid interim results for the six months ended 30 June 2026.

Revenue and Earnings • Revenue rose 25.7% year-on-year to RMB210.64 million, driven by:  – Urbanisation fixed-income projects: RMB130.44 million (+16.9%).  – Property leasing: RMB47.53 million (-10.2%).  – Building construction: RMB32.67 million (+985%). • Operating profit slipped 2.3% to RMB75.83 million as finance costs expanded 20.7% to RMB54.62 million following an overlap of bond issues. • Net profit attributable to equity holders increased 7.6% to RMB52.39 million, while total net profit reached RMB55.70 million (+8.2%). • Basic EPS was RMB0.0054 versus RMB0.0050 a year earlier.

Margins and Costs • Gross profit margin for urbanisation investment remained above 70%, mitigating a surge in construction costs linked to new school projects. • Selling and administrative expenses decreased 11.3% to RMB45.88 million, reflecting tighter cost controls.

Balance Sheet and Liquidity • Total assets stood at RMB7.73 billion; total liabilities fell to RMB2.98 billion after the repayment of RMB1.50 billion guaranteed bonds in April 2026. • Net gearing improved to 20% (end-2025: 25%), with interest-bearing debt reduced to RMB2.22 billion (-RMB1.54 billion). • Cash and bank balances declined to RMB1.02 billion, mainly due to the bond repayment and a RMB39.23 million operating cash outflow.

Cash Flow • Operating activities: net outflow of RMB39.23 million. • Investing activities: net inflow of RMB461.23 million, aided by RMB1.99 billion recovery of fixed-income investments. • Financing activities: net outflow of RMB1.60 billion, dominated by bond redemption and interest payments.

Segment Performance • Segment profit before finance costs:  – Urbanisation investment: RMB93.45 million.  – Property leasing: RMB33.74 million.  – Building construction: RMB-3.03 million (loss).

Dividends The Board declared an interim dividend of HK$0.0019 per share (2025 interim: HK$0.0016), payable on 23 September 2026 to shareholders on record as at 7 September 2026.

Management Commentary Management highlighted continued expansion of the fixed-income portfolio in the Yangtze River Delta, stable occupancy at the Wuhan investment property, and ongoing efforts to pivot toward minority equity investments in sectors such as semiconductors, high-end manufacturing and AI.

Outlook The Group will balance “risk prevention” with incremental expansion, optimise its fixed-income model for steady cash generation, and pursue new quality productive-force investments while maintaining disciplined cost and liquidity management.