Greentown China (3900) H1 2026 earnings summary

Executive summary

• Revenue for H1 2026 was RMB39,481 million, down 26.0% year-over-year, with net profit attributable to owners at RMB82 million, a 61.0% decrease, mainly due to lower recognized sales area, ASP, and gross margin from inventory destocking.

• Contracted sales reached RMB94.7 billion, ranking 4th in the industry, with a cash collection rate of 101% for self-investment projects and a high average selling price of RMB33,125/sqm.

• Focused on core tier-1 and tier-2 cities, with 94% of sales in these markets and leading market share in key cities.

• Customer satisfaction score reached 93.3, ranking Top1 in 16 cities.

• Cash and bank deposits stood at RMB61,865 million, 2.0 times the balance of borrowings due within one year, supporting liquidity.

Financial highlights

• Revenue: RMB39,481 million (-26.0% YoY); property sales revenue: RMB36,165 million (-27.2% YoY).

• Net profit attributable to owners: RMB82 million (-61.0% YoY); basic EPS was RMB0.03, down 62.5% YoY.

• Gross profit: RMB4,388 million (-38.7% YoY); gross margin: 11.1% (2025: 13.4%); property sales gross margin: 9.7%.

• Weighted average interest cost of borrowings decreased to 3.2%, a record low.

• Net gearing ratio improved to 63.9% from 66.4% at year-end 2025.

Outlook and guidance

• The real estate market is expected to continue bottoming out and recovering in the second half of 2026, with ongoing policy support but persistent pressure on a full recovery.

• Company aims to amplify comparative advantages, maintain robust execution, and focus on quality enhancement, cost control, and digital efficiency.

• Saleable value of self-investment projects for H2 2026 is RMB125.6 billion, with 85% in first- and second-tier cities.