Longfor Group Holdings Limited ('Longfor Group' or the 'Group', HKEX stock code: 0960.HK) announced its interim results for the six months ended June 30, 2026, revealing a resilient performance amid ongoing industry adjustments.
During the first half of 2026, Longfor Group recorded total revenue of RMB 39.80 billion. This figure comprises RMB 26.10 billion from property development, RMB 7.30 billion from operational businesses, and RMB 6.40 billion from service businesses. The combined revenue from operational and service segments reached RMB 13.70 billion, representing a year-on-year increase of 3.2% and accounting for 34.4% of total revenue.
The Group reported a profit attributable to shareholders of RMB 1.96 billion for the period. After excluding fair value changes from investment properties and other derivative financial instruments, core profit attributable to shareholders stood at RMB 0.064 billion. Notably, the operational and service businesses continued to deliver steady core profit growth, serving as the primary contributors to the Group's overall profitability.
Turning to the balance sheet, Longfor's total interest-bearing debt amounted to RMB 147.12 billion as of June 30, 2026, a decrease of RMB 5.69 billion compared to the end of the previous year. The Group maintained cash on hand of RMB 24.88 billion, with equity attributable to shareholders of RMB 165.16 billion. The net debt-to-equity ratio was 52.0%, while the average financing cost was reduced to a low annual rate of 3.36%.
Where the Market Stands Now
The real estate sector continued its bottoming-out process during the reporting period, with the industry moving away from scale expansion toward capability competition and existing asset operations. Longfor has strategically concentrated its resources and efforts on strengthening its core business foundation while cultivating growth drivers. The combination of financial credibility, positive operating cash flow, and digital capabilities now forms the Group's fundamental support for navigating market cycles.
Driving Inventory Clearance With Over 22,000 Quality Homes Delivered and Sales Collection Rate Exceeding 100%
As the industry transitions from incremental expansion to quality improvement of existing stock, supply-demand dynamics are showing signs of structural recovery driven by supply-side reforms. Guided by its comprehensive "Good Housing" initiative, Longfor continues to implement its product standards, building a value system centered on "good communities, good neighborhoods, good homes, and good services" through product strength, service quality, and supporting facilities.
In the first half of 2026, Longfor's development business generated revenue of RMB 26.10 billion. The Group delivered over 22,000 quality homes across more than 30 cities nationwide, achieving a delivery satisfaction rate exceeding 90%. The first Guan Cui product line entered its delivery cycle, fulfilling commitments to customers. Against the evolving market backdrop, Longfor's development arm has anchored its strategy on inventory clearance and revitalizing existing land reserves while ensuring high-quality delivery of new projects.
During the reporting period, Longfor achieved contracted sales of RMB 16.55 billion, with consolidated sales collection rates exceeding 100%. Regionally, the Bohai Rim, Western, Yangtze River Delta, Southern, and Central China regions contributed 32.3%, 28.3%, 21.7%, 12.1%, and 5.6% of total sales respectively, with first and second-tier cities accounting for 89% of sales. In terms of land acquisition, the Group adhered to its prudent investment strategy of "selecting the best opportunities and investing based on sales", securing four new projects in cities including Qingdao, Dalian, Wuxi, and Lanzhou. These additions brought 337,000 square meters of new gross floor area. As of June 30, 2026, Longfor's total land bank stood at 20.11 million square meters, with attributable floor area of 16.05 million square meters.
Synergistic Growth in Operational and Service Segments, With Combined Revenue Up 3.2% Year-on-Year
Under the new cycle and evolving environment, the resilience of Longfor's operational and service businesses has become increasingly evident. These segments have emerged as the primary contributors to the Group's profit and cash flow, representing crucial growth engines. During the reporting period, combined revenue from these businesses reached a record RMB 13.70 billion, accounting for 34.4% of total Group revenue. Profits from operational and service segments maintained steady growth, providing stable support to the Group's overall profitability.
Operational revenue, comprising commercial investment and asset management, totaled RMB 7.30 billion in the first half of 2026, up 4.2% year-on-year. The commercial investment segment saw rental income increase by 8.7% to RMB 5.98 billion, with the period-end occupancy rate improving to a high of 97.4%. Overall turnover grew by 11%, while average daily foot traffic rose by 13%. In response to changing consumption patterns characterized by service-led spending, product quality upgrades, and active experiential consumption, Longfor Commercial has pursued a strategy of "activating existing assets through renovation". Since last year, the Group has increased capital expenditure on existing projects, undertaking mall renovations in cities such as Chongqing, Beijing, Suzhou, and Hangzhou to reconfigure project portfolios. The Group continues to leverage original IP initiatives like the "Paradise Street Temple Fair" to build differentiated experiential advantages.
Maintaining its focus on high-tier cities, Longfor Commercial added one asset-light mall in Chengdu during the period. As of June 30, 2026, the Group operated 96 malls across 25 cities, with total operational gross floor area of 10.39 million square meters (13.86 million including parking areas). The portfolio encompasses over 7,400 brand partners, including more than 400 strategic partners, with differentiated "one-store-one-strategy" operations delivering unique consumption scenarios and experiences.
Within the asset management segment, six business lines spanning long-term rental apartments, industrial offices, serviced apartments, vibrant streets, women's and children's hospitals, and health and senior care worked in synergy. This segment generated revenue of RMB 1.32 billion in the first half, improving asset quality through structural optimization and renovation. The long-term rental apartment brand Guanyu achieved rental income of RMB 1.06 billion during the period, maintaining a period-end occupancy rate of 95%, with projects operational for over six months achieving an occupancy rate above 96%. The vibrant streets brand "Huan Si" operated seven projects with a 95% occupancy rate, while the health and senior care brand "Chun Shan Wan Shu" ran five projects with an average occupancy rate of 96%, demonstrating steady improvement in existing asset performance.
Service business revenue, comprising property management and smart construction, reached RMB 6.40 billion in the first half of 2026, up 2.2% year-on-year. Property management services generated RMB 5.65 billion, an increase of 2.3%, managing over 2,100 projects with a total managed area of 360 million square meters, of which approximately 55% came from external expansion. Despite external challenges, Longfor Smart Living has committed to "creating value for customers" as the starting point and endpoint of all services. The Group continues to invest in security, landscape renewal, and facility upgrades while maintaining stable scale and systematically optimizing its project portfolio. Leveraging the HALO smart space management platform, the segment has enhanced efficiency through digitalization and focused on key account strategies, signing contracts with prominent enterprises including GAC Xiaopeng's global headquarters in Guangzhou, Tencent Tower in Dalian, and SERES Group's headquarters in Chongqing during 2026. The segment has also actively expanded integrated "asset management plus property management" services across projects in Chongqing Chaotianmen, Chengdu Tianfu International Animation City, and Hangzhou Asian Games Village, continuously strengthening its long-term business model.
The smart construction segment integrates the Group's full-format development experience and digital technology capabilities. Leveraging synergies across business lines, Longfor Longzhi provides clients with comprehensive, digitalized "one-stop urban development solutions" encompassing planning and design, construction management, and smart decoration services. In the first half of 2026, the segment achieved revenue of RMB 650 million, up 3.3% year-on-year, with agency construction sales of RMB 11.2 billion and delivered floor area of 710,000 square meters. Client satisfaction reached an impressive 98%, with numerous projects becoming regional benchmarks. As of mid-2026, Longfor Longzhi had served over 330 projects cumulatively, totaling approximately 46 million square meters, consistently creating value through smart construction capabilities and high-quality delivery.
Strengthening Financial Foundations With Debt Structure Optimization and Average Financing Costs Reduced to 3.36%
Longfor Group maintains a disciplined, prudent, and highly self-regulated approach, prioritizing financial security above all else. The Group adheres to its financial discipline of "no overdue payments, no extensions, and no defaults", with continuous optimization of its financial structure. As of June 30, 2026, total interest-bearing debt stood at RMB 147.12 billion, down RMB 5.69 billion from year-end 2025. Cash on hand amounted to RMB 24.88 billion, with a net debt-to-equity ratio of 52.0% and a cash-to-short-term-debt coverage ratio of 1.57 times. The debt-to-asset ratio excluding advance receipts was 53.8%.
Having safely navigated the debt peak of 2025, Longfor faces limited debt maturities at the group level in the coming years. During the current year, the Group has completed principal and interest payments on multiple bonds including "21 Longfor 02", "16 Longfor 04", "21 Longfor 04", and "21 Longfor 06". To date, all credit bonds maturing in 2026 have been fully repaid, leaving only RMB 800 million in domestic credit bonds maturing in 2027. While steadily reducing debt, Longfor's debt structure has continued to improve. As of June 30, 2026, the average financing cost had decreased to 3.36%, and operating cash flow including capital expenditure has remained positive for four consecutive years.
The Group's interest-bearing debt composition shows bank financing accounting for 91%, with operational property loans and long-term rental loans comprising 69%. Short-term debt represented only 10.8%, while foreign currency debt decreased to 10% of total debt. This healthy debt structure further enhances the safety of the Group's operations.
Community Stewardship and Low-Carbon Transition Efforts
Upholding its philosophy of "kindness to all", Longfor Group remains customer-centric, collaborating with partners to advance corporate sustainability and fulfill social responsibilities. Through its full-lifecycle public welfare project matrix, the Longfor Foundation focuses on the practical needs of different age groups, implementing assistance programs in rural revitalization, care for the elderly and children, and education support.
During the first half of 2026, the foundation completed its rural revitalization assistance initiative in Dianjiang County, Chongqing. Over the past three years, the foundation has integrated and introduced quality resources across education, industry, community, and healthcare sectors, investing over RMB 12 million cumulatively and benefiting more than 60,000 people. To date, Longfor Group, its founders, and the Longfor Foundation have made cumulative donations exceeding RMB 2 billion, with the foundation having assisted over 2.41 million people. The volunteer force exceeds 20,000 individuals, contributing over 80,000 hours of service. In recognition of its outstanding contributions, Longfor Group has received the China Charity Award, the highest government honor in the charity sector, for two consecutive terms, while the Longfor Foundation has maintained perfect scores in the China Foundation Transparency Index for four consecutive years.
Concurrently, Longfor Group actively responds to the "dual carbon" policy initiative, deeply integrating digitalization into its green, low-carbon operations system. As of June 30, 2026, all new projects met national green building standards. The Group continues to explore clean energy applications, with 15 photovoltaic projects operational across its commercial portfolio, achieving 100% self-consumption of generated electricity during mall operations. Additionally, Longfor's Suzhou Shishan Paradise Walk project earned the first batch of platinum-level certification under the "Green Low-Carbon and Sustainable Development Evaluation Standards for Commercial Complexes and Shopping Centers", establishing a new industry benchmark. The Group's environmental, social, and governance performance has earned recognition from domestic and international authorities: MSCI ESG rating of AA, leading the industry; GRESB score of 96 out of 100 with green four-star recognition; CDP climate disclosure rating of B; and S&P DJSI score of 51, surpassing 89% of real estate peers.
Looking Ahead: Deepening Strategic Transformation With a Solid Foundation for New Growth
Having moved beyond the "three highs" model, the real estate industry is undergoing a critical transition of growth drivers. Longfor's various business segments have gradually established a development model driven by positive operating cash flow. This continuously strengthened financing and cash management mechanism constitutes the Group's core defense against industry volatility.
Looking to the second half of the year, the Group will continue to solidify its financial foundation, steadily reducing debt while refining operational capabilities and deepening collaboration across business lines. The property development business will persist in inventory clearance, revitalizing existing land reserves, and focusing on quality collections while continuously enhancing product strength based on market demand. In the operational segment, commercial investment plans to open approximately six new malls in cities including Hangzhou, Chengdu, Changsha, and Kunming, maintaining high standards for new openings. The asset management business will launch new heavy-asset projects across multiple formats including Guanyu, Huan Si, and Chun Shan Wan Shu, further strengthening multi-format asset synergies and improving operational efficiency.
The service business's importance as a bridge connecting customers and creating long-term value continues to grow. Longfor Smart Living will pursue quality growth, enhance service quality, and maintain its strategic focus on high-tier cities, business lines with competitive moats, and key accounts. Leveraging the HALO smart space platform, the segment will extend its integrated "asset management plus property management" services. Smart construction will concentrate on planning and design, construction management, and smart decoration, adopting a "one project, one success" approach to consistently deliver value for clients.
The Group will remain customer-centric, leveraging its "One Longfor" ecosystem to unify service touchpoints across all business lines. The "Longfor" APP aggregates member benefits, services, and activity information, while the "Longfor Mailbox" establishes a systematic customer feedback and response mechanism, converting customer voices into product and service innovation drivers, forming a closed loop from listening and feedback to improvement. The "Longzhu" points system integrates residential, commercial, rental, service, and healthcare scenarios, enabling full ecosystem access to membership benefits and services.
In the next phase of industry development, Longfor Group has chosen a more challenging yet more solid path: building trust as its foundation and delivering growth through capability. Looking forward, the Group will continue to strengthen its financial fundamentals, steadily reduce debt, maintain positive operating cash flow, and drive steady growth in operational and service businesses, establishing a firm footing amid market fluctuations and building momentum for transformation as it advances toward a promising future.