Yanlord Land Group reported a loss attributable to owners of the company of RMB151 million for the six months ended Jun 30 2026, reversing from a RMB379 million profit a year earlier, as a sharp decline in residential property sales drove net income lower despite cost controls.

Revenue fell 33.3% year-on-year (YoY) to RMB6.195 billion. The group did not declare an interim dividend.

Property development, its core business, generated RMB3.942 billion, down 43.8% YoY, as average selling prices (ASP) retreated and the mix shifted towards lower-priced projects such as Putting Land Phase 1 in Haikou and Yanlord The Mansion in Park in Yancheng. Investment property and hotel operations contributed RMB878 million, off 8.6%, while property management and “other” businesses edged up 3.7% to RMB652 million and 5.6% to RMB723 million, respectively.

Group gross profit dropped 58.1% to RMB1.257 billion, compressing the gross margin by 12.0 percentage points to 20.3%. Contracted pre-sales (including joint ventures and associates) halved to RMB3.698 billion on a 43.2% slide in contracted gross floor area to 196,867 sq m, with ASP down 24.4% to RMB18,784 per sq m. Accumulated pre-sales pending revenue recognition stood at RMB10.116 billion as at end-June.

Management cited a tougher sales environment and a change in product mix as key drags on profitability. The challenging backdrop was partly cushioned by a 25.3% fall in interest paid to RMB399 million and a 0.9 percentage-point reduction in average borrowing costs to 3.5%. Total debt was broadly steady at RMB22.804 billion, while cash and cash equivalents amounted to RMB5.730 billion, leaving net gearing at 45.4%, 1.8 percentage points higher than at end-2025.

Looking ahead, Yanlord intends to focus on inventory reduction, debt management and preserving balance-sheet strength. Chairman and Chief Executive Officer Zhong Sheng Jian said the mainland property market “remained subject to adjustments,” although he noted early signs of recovery in tier-one cities such as Shanghai and Shenzhen. He indicated that the group will maintain a conservative stance, emphasising liquidity and risk control while positioning for an eventual market upturn.