On August 28, CIFI Holdings Group (00884) released its 2026 interim results report. During the reporting period, the company achieved revenue of RMB 4.537 billion, with a net loss attributable to shareholders of RMB 5.991 billion, narrowing its loss margin year-on-year. As of the end of the reporting period, the company's net assets attributable to shareholders stood at RMB 25.4 billion, while interest-bearing debt had decreased to RMB 48.5 billion, representing a reduction of approximately RMB 65 billion from the peak in 2021. The company has recorded positive operating cash flow for five consecutive years.

CIFI Holdings' board chairman Lin Zhong stated: "Embracing the times, CIFI's asset-light transformation path must move forward resolutely. We must lower the revenue share from development operations, increase operational income, explore asset management models, promote synergy among diversified businesses, fully leverage CIFI's advantages in 'national presence, full-chain capabilities, and complete business coverage,' and build new growth curves. Examining ourselves, we still need to face various legacy challenges head-on. From stalled land parcels to partnership deadlocks, from product specification adjustments to idle land, we persist in never giving up, seeking breakthroughs through repeated attempts, completing difficult tasks through continuous trial and error, and striving to unlock maximum value from every asset."

Net assets attributable to shareholders exceed RMB 25 billion, with multiple measures to revitalize existing assets

Reviewing CIFI's interim report, positive net assets and land reserves concentrated in high-tier cities form the crucial foundation of CIFI's operational resilience. As of the end of the reporting period, the company's total land reserves amounted to approximately 24.06 million square meters, with over 80% concentrated in first and second-tier cities, reflecting a high-quality land reserve structure. Meanwhile, the company's net assets attributable to shareholders remain above RMB 25 billion, ranking among the top in the listed private real estate sector. Against the backdrop of industry-wide deleveraging and mounting insolvency pressures, this asset base provides substantial support for the company's operational resilience.

With the basic completion of housing delivery guarantees, CIFI has shifted its focus toward unlocking the value of existing assets. According to CIFI's official WeChat account, the company promoted new construction starts or resumption of construction for 10 project clusters in Taiyuan, Changde, Nanchang, and other locations during the first half of the year, contributing incremental saleable resources for the second half. Additionally, the company focused on design specification adjustments for 11 projects, with 5 projects passing approval processes. Among these, Kunming CIFI Plaza Phase 5 became the first local case of an enterprise-initiated commercial-to-residential conversion, while Chengdu CIFI Center Phase 3 completed residential upgrades under new regulations. These product optimizations are expected to effectively enhance project profit margins.

Regarding idle land and partnership project deadlocks, CIFI has also steadily advanced solutions through a "one project, one strategy" approach. The Zhengzhou Airport Times project was acquired by the government platform for resettlement housing, with CIFI completing the entrusted construction, thereby effectively revitalizing existing land resources. For the Fuzhou partnership project Bocui Jiangyu, which had been stalled for three years, CIFI actively sought government task force assistance, driving a revitalized market launch through government-enterprise collaboration to break the deadlock. The project achieved 166% of its first-sale target in May this year.

Embracing the existing-asset era, asset-light businesses advance on all fronts

In the first half of this year, China's second-hand housing transaction volume surpassed new home sales in total transaction share for the first time, signaling the real estate market's full entry into the existing-asset era. Lin Zhong commented: "China's real estate industry has entered a new era of existing assets, with rapid product innovation and iteration, and services and operations surrounding real estate are gaining unprecedented market attention."

In response to industry transformation, CIFI has progressively developed an asset-light business matrix around real estate services and operations, comprising property management, rental management, construction management, commercial management, and asset management. Each business line possesses the capability to operate independently while forming a tightly integrated synergy chain. The first-half performance across all segments was commendable.

CIFI's property management arm, Yongsheng Service (01995.HK), achieved first-half operating revenue of RMB 3.61 billion and net profit attributable to shareholders of RMB 215 million, maintaining steady growth amid industry-wide pressure. During the reporting period, the company declared a dividend of HKD 0.1 per share, continuing its high 70% dividend payout ratio.

In rental management, Lingyu continues to lead the industry. As of the end of June 2026, operational units reached 100,000, with managed scale exceeding 150,000 units, elevating its management scale to No. 2 on the "China Housing Rental Enterprise Scale Ranking." Its newly iterated 3.0 products - Nanjing Qingyan Pavilion Community and Shanghai Songjiang West Science Park Youmi Community - both achieved full occupancy.

In construction management, CIFI Construction Management continues to consolidate its leading industry position. According to China Index Academy data, CIFI Construction Management's newly signed scale reached 7.83 million square meters in the first half of 2026, ranking second in the industry. In the government entrusted construction segment, it led the industry with 4.08 million square meters of newly expanded area.

In commercial management, CIFI Commercial's asset-light expansion capabilities are accelerating, having won bids for quality projects including the Shanghai Jinding TOD commercial complex and performing arts center, Nantong Jinsha Xintiandi and Golden Beach projects, and the Hangzhou Meinong project since the beginning of this year.

In the existing-asset era, the competitive logic of the real estate industry has shifted from scale racing to operational excellence. For CIFI, persistent efforts on existing assets test operational resilience, while the resolute advancement of asset-light transformation tests strategic determination. Advancing both fronts is the key to winning the initiative amid industry changes. In this "second half" concerning survival and evolution, CIFI has taken a critical step, and its exploration and practices may provide a valuable reference for private real estate enterprises seeking breakthroughs in the existing-asset landscape.