As the real estate industry navigates a deep adjustment cycle with intensifying market divergence, the competitive landscape has shifted from scale expansion to comprehensive capability, with improvement demand in high-tier cities emerging as the market's core pillar. Against this backdrop, China Jinmao adheres to its operational strategy of "clear vision, precise execution, and ultimate implementation," anchoring precise investments in core cities and districts. By leveraging an efficient operational system to close the full business loop of "investment-product-sales-receivables-reinvestment," the company has achieved counter-cyclical sales growth, continuously optimized its land reserve structure, and steadily improved operational quality, delivering an interim scorecard that balances resilience with certainty.

Data shows that in the first half of 2026, China Jinmao recorded contracted sales of RMB 57.5 billion, a year-on-year increase of 8%, elevating its industry ranking to 7th place, a historic high. During the same period, the company acquired 12 land parcels with an average premium rate of just 1.36%, all located in first- and second-tier cities. New projects achieved an average sales profit margin exceeding 10%, with subscription volume realization reaching 119%.

Counter-Cyclical Momentum: Core Cities Anchor Sales Foundation

Throughout the first half of 2026, the property market continued its stabilization trend, with leading developers generally under pressure. Industry data indicates that contracted sales among the top 10 developers fell by 9% year-on-year collectively. In contrast, China Jinmao achieved contracted sales of RMB 57.5 billion, up 8% year-on-year, climbing to 7th place in industry rankings—a historic peak—and emerging as one of the few top developers to post positive sales growth. In terms of sales structure, resources remain concentrated in high-tier cities, with first- and second-tier cities accounting for 96% of sales. North China and East China contributed a combined 81% of total sales, with Beijing contributing RMB 12.33 billion and Shanghai RMB 10.94 billion, together accounting for over 40% of total sales. Strong second-tier cities such as Tianjin, Zhengzhou, Xi'an, Chengdu, Nanjing, and Qingdao delivered diversified support, forming a stable performance base.

Sales resilience is underpinned by sustained product strength. The company adheres to a "product-led, customer-first" philosophy, fostering a culture where "everyone is a product officer." It continues to iterate its four core product lines under the "Jin Yu Man Tang" series, covering diverse housing needs from high-end upgrades to family life cycles. In the first half, multiple projects under this series achieved strong sales, with China Jinmao ranking in the top 10 in 10 cities. Notable successes include Tianjin Jinmao Mansion securing the city's sales championship, Zhengzhou Puyi Manhu achieving six successful launches to top Zhengzhou, Hefei Puyi Yunhu retaining the top spot in commercial residential sales across Hefei's nine districts, Nanjing Yue Man Yunchuan ranking second in Nanjing, and Chengdu Dongcheng Xiaotang placing third in its local market. These landmark projects affirm market recognition of China Jinmao's offerings. Additionally, the company upheld its quality delivery standards, achieving 100% high-quality handovers in the first half, with a one-time delivery visit rate of 98%, delivery touchpoint satisfaction of 97%, and overall satisfaction of 96%, solidifying its brand reputation and completing the transition from "selling products" to "delivering value."

Precision Land Acquisition Targets Core Assets, Building a High-Quality Land Reserve Base

The standout sales performance stems from proactive, high-quality investment positioning. While the land market has contracted overall, competition for quality residential plots in core cities remains fierce. China Jinmao adheres to a "focused cultivation, precise targeting" investment principle, avoiding blind scale chasing. It prioritizes location safety margins and profit potential, actively exploring non-public market opportunities to sidestep overheated bidding in public auctions. Since the beginning of 2026, the company has secured a total of 15 projects with aggregate land costs of RMB 26 billion, all located in first- and second-tier cities. Of these, 11 parcels were acquired at base prices, resulting in an average premium rate of only 5.64%. In the first half alone, the company completed high-quality replenishment of 12 land parcels, adding RMB 29.4 billion in land value and approximately 820,000 square meters of gross floor area, with an average premium rate at a low 1.36%, ensuring strict control over land acquisition costs.

Land acquisition is highly concentrated in core scarce districts of key cities: in Beijing, the company secured the Chaoyang Dongba parcel and the Haidian Xiran low-density residential plot for RMB 9.761 billion; in Shanghai, it acquired a prime parcel in Jiading New City; in Guangzhou, it obtained scarce old-town land in Liwan's historic Xiguan area; in Changsha, it won a large-scale riverside plot in the Xiangjiang district at base price; and in Xi'an, it acquired a quality residential parcel in Qujiang Duling. Additionally, continued land replenishment in core urban areas of Nanjing, Suzhou, Chengdu, and Qingdao further cemented its market presence in key cities. As of the end of June 2026, the company's total unsold land value stood at RMB 254 billion, with an optimized structure—89% concentrated in first- and second-tier cities. Core top-10 cities accounted for 61% of land value, while North China and East China regions represented 62%. This ample, high-quality land reserve lays a solid foundation for supply, sales, and profit realization over the coming 2 to 3 years, providing ample momentum for sustainable development.

Operational Efficiency Drives a Positive Investment-to-Sales-Receivables Cycle

High-quality land reserves are only a foundation; converting asset value through efficient operations is essential to complete the loop from investment to sales and receivables. In 2026, China Jinmao continues to deepen its transparent management approach, focusing on four penetrations: organization, strategy, systems, and business. The company has upgraded operational assessment standards by adding an "18-month above-ground sell-out" metric, fully adopting the "fast opening, fast recovery, fast clearance" operational system, targeting "one harvest per year" and striving for "two harvests per year," driving synergistic efficiency across investment, product development, marketing, and receivables.

A batch of benchmark projects has set high-efficiency standards: Chengdu Chengxi Jinmao Xiaotang achieved its first opening just 2.5 months after land acquisition; Zhengzhou Jinmao Puyi Manhu completed its first launch in 4.5 months, achieving phenomenal sales; Xi'an Jinmao Xingfu Xiaotang turned its operating cash flow positive in 8.2 months, while Chengdu Dongcheng Jinmao Xiaotang achieved the same in 10.6 months; Chongqing Puyin Jinkai cleared above-ground inventory in 14.8 months, and Shanghai Runyun Jinmao Mansion did so in 16 months, maintaining industry-leading development turnover efficiency. Investment quality is now reflected in operational outcomes. Since 2024, new projects have delivered an average sales profit margin exceeding 10%; compared to investment feasibility targets, new projects achieved an average subscription volume realization of 119% and an average price realization of 102%. Project sell-through rates and pricing have exceeded initial investment expectations, truly achieving "precise acquisition, quality construction, strong sales, and rapid receivables," creating a virtuous cycle of land acquisition, supply, sales, and reinvestment.

Solid Financial Foundation and Diversified Business Synergy Support Long-Term Growth

A robust financial position is a critical safeguard for sustaining the investment-to-sales loop. Financial results show that in the first half of 2026, China Jinmao recorded revenue of RMB 21.418 billion, with profit attributable to owners of the company at RMB 879 million. After excluding fair value losses on investment properties, attributable profit stood at RMB 1.010 billion. The board declared an interim dividend of HK$0.03 per share, along with a scrip dividend option, with payment scheduled on or before October 30, continuing to reward shareholders. Debt structure has been consistently optimized. As of the end of the first half of 2026, interest-bearing debt decreased by RMB 6.2 billion compared to the end of 2025; debt due within one year accounted for only 20.8%, extending the maturity profile. Foreign currency debt fell to 18% of total, while lower-cost development and operating loans rose to 56.2%. The average interest rate on onshore and offshore interest-bearing debt dropped to 2.89%, with new financing costs averaging just 2.87% in the first half. Notably, the "26 Jinmao Investment MTN002" bond was issued at a low cost of 2.20%, and most new project development loans secured local self-discipline floor rates. The company holds approximately RMB 70 billion in unutilized bank credit lines, supplemented by over RMB 6 billion in offshore club loan facilities, ensuring smooth financing channels and ample capital reserves. Lean management continues to deliver results: centralized procurement utilization rose to 98.3%; selling expenses fell 2% year-on-year in the first half, administrative expenses dropped 11%, and financial costs reduced 17%, continuously releasing profit potential. The MSCI ESG rating was upgraded from A to AA, earning authoritative recognition for the company's sustainable development capabilities.

Second growth curve businesses are advancing in tandem. Jinmao Services maintains customer satisfaction at the 94th percentile, focusing on quality external expansion while optimizing underperforming projects for growth with substance. The hotel segment is enhancing profitability, commercial operations are steadily improving, and the building technology business continues to sharpen capabilities in smart living and vibration/noise reduction, empowering the core business. These multi-segment synergies collectively support China Jinmao's steady march toward becoming a leading city operator.

Looking ahead, Chairman Tao Tianhai stated at the results conference: "The market's deep adjustment phase is also a period of competitive landscape reshaping and a window for outstanding companies to overtake." China Jinmao will continue to focus on three major tasks: delivering operational performance, building product culture, and accelerating the second curve. It will place greater emphasis on activating existing assets and reducing debt, adhering to "clear vision, precise execution, utmost implementation," and striving to achieve its full-year sales target of RMB 120 billion. Leveraging the four pillars of precise investment, hard-core product strength, efficient operations, and solid finance, the company will continue to strengthen the investment-to-sales virtuous cycle, steadily advancing toward its strategic goal of "thriving and excelling," solidifying its core competitiveness to navigate through the industry's transformation wave.