Baoye Group Company Limited reported a consolidated net loss attributable to shareholders of RMB 71.28 million for the six months ended 30 June 2026, reversing a profit of RMB 140.98 million in the prior-year period. The downturn stemmed mainly from property development impairments amid continued weakness in China’s housing market.

Revenue fell 11.4% year on year to RMB 7.53 billion, with double-digit declines in three of the Group’s four operating segments: • Construction – RMB 5.13 billion (68% of total, –9% YoY) • Property Development – RMB 1.46 billion (19% of total, –10% YoY) • Building Materials – RMB 0.79 billion (11% of total, –24% YoY) • Others – RMB 0.15 billion (2% of total, –18% YoY)

Segment profitability diverged sharply. Construction delivered RMB 190.78 million operating profit, up 15% on one-off demolition compensation of RMB 51.88 million. Property Development recorded an operating loss of RMB 76.10 million versus a RMB 105.03 million profit a year earlier, weighed by RMB 76.57 million of impairment on completed units. Building Materials posted a wider operating loss of RMB 60.12 million (–73% YoY) after revenue contraction and RMB 19.0 million in asset write-downs.

Group gross profit contracted 27.9% to RMB 366.83 million; operating profit declined 78.2% to RMB 55.20 million. Finance costs (net) rose to RMB 20.17 million on lower capitalized interest, while tax expense increased to RMB 140.43 million due to land appreciation tax settlements.

The balance sheet remains liquid: • Cash, term deposits >3 months and restricted deposits totaled RMB 11.99 billion. • Net cash position stood at RMB 7.07 billion; net-cash-to-equity ratio edged up to 55% (H1 2025: 54%). • Total assets were RMB 41.59 billion; equity attributable to shareholders was RMB 12.90 billion, putting gearing (liabilities/equity) at 2.1x.

Operating cash inflow strengthened to RMB 1.44 billion (H1 2025: RMB 0.48 billion), bolstered by higher presale receipts. Free cash was partly deployed to boost term deposits and fund RMB 0.13 billion of capex, mainly for building materials capacity.

Management signaled a strategic shift toward urban renewal, new-type infrastructure, and high-tech industrial projects in construction, while property development will focus on “good houses” featuring energy-efficient technologies. Land acquisition will concentrate on core markets in Shanghai, Zhejiang and Hubei under a “prudent but proactive” approach.

No interim dividend was declared. A final dividend of RMB 0.085 per share for FY 2025 (total payout: RMB 44.25 million) was approved in June and remains payable.

Baoye maintains an AAA domestic credit rating and RMB 8 billion in undrawn banking facilities, positioning the Group to navigate ongoing property-market headwinds while funding selective growth initiatives.