Powerlong Real Estate (1238) investor relations material

Executive summary

• Revenue declined 12.1% year-over-year to RMB22,637 million, mainly due to lower property sales and deliveries.

• Net loss attributable to owners was RMB5,887 million, with basic loss per share at RMB142.2 cents.

• Contracted sales dropped to RMB7,272 million, with contracted sales area at 667,082 sqm, reflecting a challenging real estate market.

• The group faces significant liquidity pressure, with borrowings of RMB55,055 million and cash of RMB7,242 million.

• A restructuring support agreement was reached with creditors, including asset disposals and a proposed scheme of arrangement.

Financial highlights

• Revenue: RMB22,637 million, down 12.1% year-over-year.

• Gross profit: RMB1,304 million, down 44.4%; gross margin fell to 5.8% from 9.1%.

• Rental and property management income: RMB4,213 million, down 1.9%.

• Net loss: RMB6,845 million; core loss (excluding non-recurring items): RMB4,278 million.

• Cash and equivalents: RMB7,242 million; total borrowings: RMB55,055 million.

• Net gearing ratio increased to 119.1% from 101.6%.

Outlook and guidance

• The group expects the real estate market to shift from stabilization to quality and efficiency improvement in 2026.

• Strategic focus includes debt reduction, asset optimization, sales acceleration, and operational refinement.

• Five-year strategy launched to reinvigorate the business, emphasizing prudent operations and talent development.