Zhong Hua International reported robust interim results for the six months ended 30 June 2026, underpinned by higher fair-value gains on its Guangzhou property investment.
Financial performance • Revenue rose to HK $16.52 million, a 6.5% increase from HK $15.50 million in the prior-year period, with over 90% generated on the Chinese mainland. • Profit before tax advanced 38.9% to HK $60.01 million (2025: HK $43.20 million), driven primarily by a HK $54.24 million fair-value gain on the Group’s 25%-owned stake in Guangzhou Zheng Da Real Estate Development Company. • Net profit climbed 40.1% to HK $56.79 million, of which HK $16.16 million was attributable to shareholders (up 59.0% year on year). • Basic and diluted earnings per share improved to 2.10 HK cents from 1.32 HK cents. • Administrative expenses declined 15.9% to HK $10.75 million, supporting margin expansion.
Balance-sheet highlights • Total assets increased to HK $1.48 billion at 30 June 2026, from HK $1.40 billion at end-2025, aided by the revaluation of the Guangzhou equity stake. • Net assets rose 6.3% to HK $1.06 billion, while cash and cash equivalents strengthened to HK $68.60 million (31 December 2025: HK $59.41 million). • The gearing ratio (director loan to total assets) remained stable at 0.09. • Net current assets improved to HK $6.23 million, compared with HK $2.30 million six months earlier.
Segment review • Property investment and development contributed 100% of revenue, generating a segment profit of HK $67.08 million (2025: HK $51.33 million). • The Chongqing-based Guang Yu Square shopping mall remained almost fully occupied, supplying steady rental income. • The corporate and other segment recorded a HK $7.09 million loss, narrowing from HK $8.15 million a year ago.
Cash flow and dividends • Operating cash inflow rose to HK $8.06 million (2025: HK $6.03 million). • The board did not declare an interim dividend, consistent with the prior-year stance.
Key assets and projects • The Group’s unlisted stake in GZ Zheng Da, valued at HK $1.06 billion, represents approximately 72% of total assets. • Redevelopment of the Guangzhou Yuexiu District site remains on hold pending resolution of a long-running liquidation petition; management anticipates potential dismissal of the petition and is targeting construction start in late 2027. • A new division has been set up to pilot integrated charging solutions for heavy-duty vehicles in the Greater Bay Area, expected to scale within one to two years.
Capital management and outlook Management affirmed that existing cash resources and a low gearing profile provide adequate liquidity for near-term capital and operating needs. Looking ahead, the Group plans to leverage its prime land bank in Guangzhou, explore urban-renewal opportunities and expand into “novel and quality productivity” initiatives amid China’s evolving economic landscape.