Hong Kong – 28 August 2026 – Longfor Group (LONGFOR GROUP) reported a sharp contraction in first-half earnings as weak mainland home sales dragged on performance, partly mitigated by resilient rental and services income.

Financial Highlights (January–June 2026) • Consolidated revenue fell 32.3% year on year to RMB 39.80 billion (1H25: RMB 58.75 billion). • Profit attributable to owners declined 39.0% to RMB 1.96 billion. • Core net profit attributable to owners slipped to just RMB 0.06 billion, reflecting minimal margin on underlying operations. • Basic EPS dropped to RMB 0.29 from RMB 0.477. • No interim dividend declared.

Segment Performance • Property Development: Revenue slumped 42.6% to RMB 26.10 billion; Adjusted Earnings registered a loss of RMB 4.11 billion versus a RMB 1.18 billion loss a year earlier. Contracted sales halved to RMB 16.55 billion on 1.75 million sqm, with average selling price at RMB 9,460/sqm. • Property Operation: Rental income grew 4.2% to RMB 7.30 billion, underpinned by a shopping-mall portfolio occupancy of 97.4%. Same-store rental growth reached 2.7%; overall rental income from commercial assets rose 8.7% to RMB 5.98 billion. • Property Service: Revenue edged up 2.2% to RMB 6.40 billion, supported by stable growth in property management (RMB 5.65 billion, +2.3%) and smart-construction services (RMB 0.65 billion, +3.3%).

Margins and Costs • Gross profit contracted 40.4% to RMB 4.42 billion; gross margin eased to 11.1% (1H25: 12.6%). • Administrative expenses fell 10.2% to RMB 1.54 billion; selling & marketing expenses declined 20.3% to RMB 1.22 billion. • Average funding cost slipped to 3.36% per annum.

Balance-Sheet Metrics • Total borrowings declined by RMB 5.69 billion to RMB 147.12 billion. • Cash on hand stood at RMB 24.88 billion; net debt-to-equity ratio was 52.0%. • Fixed-rate debt accounted for 11% of total borrowings; debt maturing within 12 months totalled RMB 15.85 billion (10.8% of total).

Operational Indicators • Unsold but contracted sales: RMB 83.80 billion (7.34 million sqm) awaiting revenue recognition. • Land bank: 20.11 million sqm GFA (16.05 million sqm attributable) at an average cost of RMB 3,633/sqm. Only 0.34 million sqm of new land was added in 1H26, signalling disciplined acquisition. • Rental-housing brand “Goyoo” recorded a 94.9% occupancy rate; shopping-mall pipeline targets six new openings in 2H26 across Hangzhou, Chengdu, Changsha and Kunming.

Management Outlook Longfor plans to prioritise cash flow, debt reduction and asset revitalisation amid a “high-quality development” phase for China’s property sector. The Group will continue to pare inventory in its development arm while leveraging steady income streams from commercial operations, asset management and property services to bolster resilience.