COSMOPOL INT'L (00120) reported a consolidated net loss attributable to shareholders of HK$232.40 million for the six months ended 30 June 2026, quadrupling the HK$56.50 million loss recorded a year earlier. The deterioration was chiefly driven by a HK$163.30 million impairment of capitalised prepayment costs linked to the Group’s reforestation and land-grant project in Urumqi, where local authorities have delayed requisite inspections.
Financial performance • Revenue jumped to HK$158.80 million (1H 2025: HK$16.00 million), fuelled by the June 2026 disposal of a hotel block at the Regal Cosmopolitan City project in Chengdu for RMB143.0 million. • Gross profit rose to HK$6.60 million from HK$2.30 million, yet operating loss before depreciation, finance costs and tax expanded to HK$191.70 million (1H 2025: HK$20.90 million). • Basic loss per share widened to HK12.43 cents from HK3.84 cents. No interim dividend was declared.
Balance sheet and liquidity • Net assets attributable to equity holders declined 43.4% to HK$217.60 million, translating to HK$0.12 per share (basic) and HK$0.09 per share on a fully diluted basis. • Cash and bank balances stood at HK$16.80 million (31 Dec 2025: HK$22.00 million). • Net borrowings, including convertible notes, were broadly stable at HK$1.24 billion, lifting the gearing ratio to 49.1% (31 Dec 2025: 44.3%). • Properties held for sale of HK$925.90 million were pledged to secure borrowings.
Project updates 1. Chengdu – Regal Cosmopolitan City – Hotel block sold in June 2026; proceeds applied to debt reduction and working capital. – Remaining commercial assets: 52,500 sq m mall and five office towers (86,000 sq m) completed but sales sluggish. – Office Tower A: 380 of 434 units (approx. 17,0 00 sq m) contracted for RMB145.8 million to date; shop sales minimal.
2. Tianjin – Regal Renaissance – All residential units sold; c.16,050 sq m of shops disposed for RMB374.10 million cumulatively. – Two completed office towers (67,739 sq m) and residual retail space remain on the market; some areas leased for rental income.
3. Xinjiang – Urumqi Reforestation & Land Grant – Project involves reforestation of 7,600 mu; 4,300 mu completed. – With municipal inspection delayed indefinitely, maintenance work was suspended in April 2026, triggering the HK$163.30 million impairment.
Capital structure • Other borrowings totalled HK$1.22 billion, including a US$40 million secured note (refinanced to April 2028) and HK$920.00 million in loans from related parties and external lenders. • Borrowing costs for the period were HK$30.80 million (1H 2025: HK$39.00 million) as legacy loans amortised.
Outlook Management expects China’s property market to stabilise gradually amid ongoing policy support. COSMOPOL INT'L plans to monitor market conditions before relaunching unit sales in Chengdu and Tianjin and is open to en bloc disposals of remaining assets. The Group continues to seek resolution or strategic alternatives for the Urumqi project while maintaining a conservative funding strategy focused on liquidity preservation.