Zhong An Group Limited (Zhong An Group) reported a sharp downturn for the six months ended 30 June 2026, sliding from a RMB90.74 million profit a year earlier to a RMB233.30 million loss.

Revenue plunged 75.4% to RMB1.61 billion, driven by an 80.0% drop in property sales to RMB1.23 billion as delivered floor area contracted materially. Gross profit fell 81.5% to RMB127.19 million and gross margin narrowed 2.6 percentage points to 7.9%. Other income and gains declined 85.3% to RMB24.64 million due to the absence of last year’s one-off disposal gains.

Cost controls partly offset the revenue slump: • Selling and distribution expenses fell 36.2% to RMB67.44 million. • Administrative expenses decreased 18.7% to RMB151.48 million. • Other expenses dropped 69.9% to RMB34.30 million as impairment charges normalised. Finance costs rose 21.0% to RMB179.24 million on lower interest capitalisation.

Segment performance • Residential operations posted a RMB308.94 million loss versus a RMB338.17 million profit a year earlier. • Commercial operations generated RMB203.85 million profit, reversing a RMB32.75 million loss. Residential projects contributed 77.2% of total revenue; commercial projects, including hotel and leasing income, made up the balance.

Balance sheet and liquidity Total assets stood at RMB26.72 billion, with equity of RMB10.69 billion. Interest-bearing debt totalled RMB6.45 billion at an average rate of 4.65%, while cash and restricted cash amounted to RMB485.50 million. Net gearing edged up to 55.8%; the current ratio improved to 1.53. The group pledged RMB11.02 billion of assets, mainly investment properties and completed units, to secure financing.

Operational metrics • Contracted sales: 80,422 sq.m. and RMB1.05 billion. • Recognised sales: 99,388 sq.m. and RMB1.23 billion, translating to an average selling price of RMB12,397 per sq.m. • Land bank: 6.52 million sq.m. with an average cost of RMB2,550 per sq.m., sufficient for more than five years of development.

No interim dividend was declared.

Outlook Management will prioritise “securing delivery, stabilising operations and controlling risks,” continue its Zhejiang-focused land strategy, and seek to boost commercial asset efficiency while tightening cash-flow and risk controls amid the sector’s ongoing adjustment.