EB Grand China (Everbright Grand China Assets Limited) reported mixed interim results for the six months ended 30 June 2026.
Financial Highlights • Revenue fell 15.9% year on year (YoY) to RMB 20.60 million, mainly due to weaker rental income. • Gross profit declined 14.4% YoY to RMB 15.48 million; gross margin edged up to 75.2% (H1 2025: 73.9%). • Profit attributable to equity shareholders decreased 20.8% YoY to RMB 8.03 million. • Basic EPS slipped to RMB 1.82 cents from RMB 2.30 cents. • Interim dividend was cut by 20.5% to RMB 0.58 cents per share (HK 0.67 cents), payable on or around 30 October 2026 to shareholders on record as of 15 October 2026. • Cash and bank balances dropped to RMB 49.45 million (31 Dec 2025: RMB 130.97 million), while longer-dated deposits rose to RMB 180.39 million (31 Dec 2025: RMB 104.43 million). • Gearing ratio remained low at 18.3% (31 Dec 2025: 18.4%); current ratio stood at 14.7x.
Operational Performance • Property leasing revenue declined 16.2% YoY to RMB 14.21 million as average occupancy slipped to 71% (H1 2025: 81%). • Property management revenue contracted 14.7% to RMB 6.39 million. • Fair-value gain on investment properties narrowed to RMB 0.10 million (H1 2025: RMB 0.88 million). • Portfolio comprised three commercial buildings in Chengdu and Kunming with unchanged GFA of 89,507 sq m; investment property fair value stood at RMB 979.10 million (31 Dec 2025: RMB 979.00 million).
Cash Flow & Capital Expenditure • Operating cash outflow totalled RMB 2.09 million (H1 2025: inflow of RMB 4.12 million). • Capex on property and equipment amounted to RMB 0.18 million. • No new property acquisitions; unutilised IPO proceeds of RMB 98.06 million earmarked mainly for potential UK property purchases and asset upgrades remain on hand.
Management Commentary EB Grand China attributes the earnings decline to softer rental demand amid macroeconomic headwinds and intensified competition. The group targets tenant diversification, ancillary service expansion (e.g., conference support, advertising), and digital upgrades to stabilise occupancy and enhance service quality. It maintains ample liquidity and continues to monitor acquisition opportunities, notably in UK commercial real estate, with unused IPO funds expected to be fully deployed by end-2027.
Governance & Other Updates • No contingent liabilities or pledged assets at period-end. • Liu Jia continues as Chairman & CEO; Jiang Zhiwen joined the board on 23 July 2026, while Ma Heming resigned on 12 June 2026. • Public float, audit, and governance code compliance remain intact.
Overall, H1 2026 performance reflects a challenging leasing environment, with management focusing on portfolio optimisation and cost control to preserve shareholder value.