CIFI HOLD GP Reports RMB6.19 Billion H1 2026 Net Loss as Revenue Falls 63%

Bulletin Express
昨天

CIFI HOLD GP released its H1 2026 interim results, showing a sharp deterioration amid China’s protracted real-estate downturn.

Key Financials • Revenue: RMB4.54 billion, a 63.1% decline from RMB12.28 billion in H1 2025. • Gross profit: RMB340.28 million, down 65.4%. Gross margin fell to 7.5% from 8.0%. • Net loss attributable to equity owners: RMB5.99 billion (H1 2025: RMB6.36 billion loss). • Core net loss attributable to equity owners: RMB1.81 billion, narrowing from RMB4.25 billion a year earlier. • Contracted sales: RMB5.02 billion, down 50.6%. • Bank balances and cash (including restricted deposits): RMB6.93 billion at 30 June 2026. • Total indebtedness: RMB48.47 billion; net debt-to-equity ratio rose to 78.6% (31 Dec 2025: 73.9%). • No interim dividend declared.

Operational Highlights • Delivered 394,946 sq.m. of saleable GFA in H1 2026, 44.7% lower year on year. • Land bank: 24.10 million sq.m. in total GFA; attributable GFA 14.00 million sq.m. • Investment-property rental and related income slipped 7.1% to RMB730.27 million. • Property management and other services revenue plunged 98.9% to RMB38.07 million following the December 2025 disposal of Ever Sunshine Services. • No new land acquisitions in the period; focus remained on Tier-1 and strong Tier-2 cities.

Liquidity & Debt Restructuring • June 2026 non-payment of scheduled offshore restructuring instalments and certain bank loan principals triggered defaults on RMB8.22 billion of bank borrowings, RMB9.54 billion of offshore senior notes and RMB1.49 billion of convertible bonds. • The Group appointed a financial adviser and is pursuing an updated offshore restructuring, refinancing of onshore bank loans, asset disposals and cost reductions. • Onshore bondholders holding approximately RMB0.60 billion principal elected an equity option; on 18 August 2026 the Company agreed to issue 407.94 million new shares to a special-purpose vehicle, with disposal proceeds to repay and cancel those bonds.

Capital Movements • Conversion of USD1.57 billion mandatory convertible bonds added 7.64 billion new shares in H1 2026, lifting issued share capital to 18.15 billion shares. • Share-based payment expense of RMB127.07 million recognised; previously granted awards to two former directors (143 million shares) were cancelled following their resignations.

Outlook Management cites continued industry headwinds but targets liquidity improvement through refinancing, asset sales and a shift toward asset-light operations while prioritising project delivery and cost control.

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