Zhongliang Holdings Group Company Limited (Zhongliang HLDG) released its results for the year ended 31 December 2025, showing a sharp deterioration in operating and financial metrics amid a prolonged downturn in China’s property market.

Revenue and Profitability • Total revenue fell 69.1 % year on year to RMB 12.27 billion, driven by a 69.1 % contraction in property sales to RMB 12.18 billion. • Recognised gross floor area dropped 63.7 % to 1.36 million sq m; average selling price retreated to RMB 8,945 per sq m (2024: RMB 10,503). • A gross loss of RMB 2.13 billion replaced the prior-year gross profit of RMB 0.91 billion, translating into a gross margin of –17.4 %. • Impairment charges on properties under development and completed stock totalled RMB 1.85 billion (2024: RMB 0.42 billion). • Net loss attributable to shareholders widened 68.0 % to RMB 4.08 billion; total net loss reached RMB 5.93 billion.

Operating Metrics • Group-wide contracted sales (including subsidiaries, JVs and associates) amounted to RMB 12.07 billion, down 32.7 %. • Contracted sales area declined 31.0 % to 1.16 million sq m; contracted ASP was approximately RMB 10,400 per sq m. • Deliveries totalled around 27,000 housing units during 2025, positioning the developer among China’s top 15 by units handed over, according to EH Consulting.

Balance-sheet Highlights • Total interest-bearing indebtedness reduced to RMB 17.70 billion, with 46 % (RMB 8.11 billion) maturing within 12 months. • Cash and bank balances stood at RMB 3.33 billion, of which a large portion is subject to project-level escrow requirements. • Net current assets fell to RMB 7.30 billion (2024: RMB 14.92 billion); net assets declined to RMB 12.34 billion (2024: RMB 19.38 billion). • Land bank (subsidiaries, JVs and associates) measured 18.1 million sq m, with no new sites acquired in 2025.

Auditor’s Disclaimer External auditor ZHONGHUI ANDA issued a disclaimer of opinion, citing insufficient evidence to confirm the Group’s ability to continue as a going concern. Key uncertainties include RMB 8.11 billion of near-term debt maturities (of which RMB 4.80 billion are already in default), limited cash resources, and reliance on debt extensions, asset sales and improved sales cash flow.

Management Response and Outlook Management highlighted ongoing negotiations with lenders for loan extensions, efforts to accelerate project sales, tighter cost controls and potential asset disposals. The board emphasised policy support for China’s property sector but cautioned that recovery will require time. No final dividend was proposed for 2025.

Liquidity Commitments and Guarantees • Outstanding mortgage guarantees: RMB 4.07 billion (2024: RMB 17.52 billion). • Guarantees for joint-venture and associate borrowings: RMB 4.39 billion. • Contracted but unprovided capital commitments: RMB 10.21 billion.

Shareholder Matters The annual general meeting is scheduled for 11 June 2026; the register of members will be closed from 8 to 11 June 2026. No final dividend will be distributed for FY 2025.