Earnings release
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Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement. Redsun Properties Group Limited ʮ̡ (Incorporated in the Cayman Islands with limited liability) (Stock Code: 1996) UNAUDITED INTERIM RESULTS ANNOUNCEMENT FOR THE SIX MONTHS ENDED 30 JUNE 2026 HIGHLIGHTS OF THE 2026 INTERIM RESULTS • Contracted sales reached RMB944.0 million, aggregated sales area was 99,998 square meters and the average selling price was RMB9,440 per square meter; • Revenue amounted to RMB700.3 million, representing a decrease of 74.2% for the corresponding period of 2025 (corresponding period of 2025: RMB2,712.3 million). The revenue of the commercial operations and hotel operations decreased by 24.0% to RMB126.9 million (corresponding period of 2025: RMB167.0 million); • Gross loss and gross loss margin amounted to RMB1,124.3 million and 160.5%, respectively; • The net loss was RMB1,757.9 million (corresponding period of 2025: a net loss of RMB2,320.6 million); and • The Board does not recommend the payment of any interim dividend for the six months ended 30 June 2026 (2025 interim: Nil). – 1 –
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INTERIM RESULTS The board (the “Board”) of directors (the “Directors”) of Redsun Properties Group Limited (the “Company”) is pleased to announce the unaudited condensed consolidated results of the Company and its subsidiaries (the “Group”) for the six months ended 30 June 2026 (the “Reporting Period”), together with the comparative figures for the corresponding period of the previous year as follows: CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME For the six months ended 30 June 2026 2026 2025 Notes RMB’000 RMB’000 (Unaudited) (Unaudited) REVENUE 5 700,315 2,712,287 Cost of sales (1,824,584) (2,934,402) Gross loss (1,124,269) (222,115) Other income and gains 5 137,344 232,607 Selling and distribution expenses (10,861) (76,281) Administrative expenses (50,899) (61,253) Fair value losses on investment properties, net – (19,660) Other expenses (44,095) (53,980) Finance costs 7 (136,291) (540,165) Share of losses of: Joint ventures (226,192) (624,754) Associates (220,851) (610,003) LOSS BEFORE TAXATION 6 (1,676,114) (1,975,604) Taxation 8 (81,780) (344,977) LOSS AND TOTAL COMPREHENSIVE LOSS FOR THE PERIOD (1,757,894) (2,320,581) Loss and total comprehensive loss attributable to: Owners of the Company (1,697,874) (1,883,732) Non-controlling interests (60,020) (436,849) (1,757,894) (2,320,581) LOSS PER SHARE ATTRIBUTABLE TO ORDINARY EQUITY HOLDERS OF THE COMPANY 10 Basic and diluted RMB (51) cents RMB (56) cents – 2 –
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CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION 30 June 2026 30 June 2026 31 December 2025 Note RMB’000 RMB’000 (Unaudited) (Audited) NON-CURRENT ASSETS Property, plant and equipment 142,145 148,823 Investment properties 10,436,708 10,442,715 Right-of-use assets 20,126 20,689 Other intangible assets 2,718 3,085 Investments in joint ventures 2,126,414 2,041,727 Investments in associates 4,938,053 4,904,289 Deferred tax assets 149,333 157,234 Total non-current assets 17,815,497 17,718,562 CURRENT ASSETS Inventories 522 537 Properties under development 5,240,166 6,317,477 Completed properties held for sale 5,731,488 6,310,521 Trade receivables 11 2,134 2,048 Prepayments, other receivables and other assets 10,331,682 10,026,594 Amounts due from related parties 8,371,488 9,076,066 Financial assets at fair value through profit or loss 28,225 49,499 Tax recoverable 544,646 616,804 Cash and bank balances 464,567 496,303 Total current assets 30,714,918 32,895,849 – 3 –
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CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION (CONTINUED) 30 June 2026 30 June 2026 31 December 2025 Note RMB’000 RMB’000 (Unaudited) (Audited) CURRENT LIABILITIES Trade and bills payables 12 5,659,327 5,976,136 Other payables and accruals 6,313,227 5,515,109 Contract liabilities 2,630,942 2,670,452 Interest-bearing bank and other borrowings 7,519,708 7,052,231 Senior notes 9,977,969 10,404,055 Lease liabilities 18,157 17,710 Amounts due to related parties 8,197,080 8,123,337 Tax payable 3,623,723 3,623,968 Total current liabilities 43,940,133 43,382,998 NET CURRENT LIABILITIES (13,225,215) (10,487,149) TOTAL ASSETS LESS CURRENT LIABILITIES 4,590,282 7,231,413 NON-CURRENT LIABILITIES Interest-bearing bank and other borrowings 2,515,724 3,012,424 Lease liabilities 269,152 278,334 Deferred tax liabilities 1,949,396 1,949,396 Total non-current liabilities 4,734,272 5,240,154 Net (liabilities)/assets (143,990) 1,991,259 EQUITY EQUITY ATTRIBUTABLE TO OWNERS OF THE COMPANY Share capital 28,411 28,411 Share premium 1,888,469 1,888,469 Other deficit (8,169,440) (6,471,566) (6,252,560) (4,554,686) Non-controlling interests 6,108,570 6,545,945 Total (deficit)/equity (143,990) 1,991,259 – 4 –
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NOTES TO CONDENSED CONSOLIDATED FINANCIAL INFORMATION For the six months ended 30 June 2026 1. CORPORATE INFORMATION The Company is a limited liability company incorporated in the Cayman Islands. The registered office address of the Company is Walkers Corporate Limited, 190 Elgin Avenue, George Town, Grand Cayman, KY1–9008, Cayman Islands. The Company’s shares were listed on the Main Board of the Stock Exchange of Hong Kong Limited (the “Hong Kong Stock Exchange”) on 12 July 2018. The Company is an investment holding company. During the six months ended 30 June 2026 (the “Reporting Period”), the Group is principally engaged in property development and management services, commercial property investment and operations, and hotel operations. In the opinion of the directors of the Company, the ultimate holding company and the ultimate controlling party of the Company is Hong Yang Group (Holdings) Limited, which is incorporated in the British Virgin Islands and Mr. Zeng Huansha (“Mr. Zeng”), an executive director of the Company respectively. 2. BASIS OF PREPARATION The condensed consolidated financial information for the six months ended 30 June 2026 has been prepared in accordance with IAS 34 Interim Financial Reporting . The condensed consolidated financial information does not include all the information and disclosures required in the annual financial statements, and should be read in conjunction with the Group’s annual consolidated financial statements for the year ended 31 December 2025. Going concern basis The Group recorded a net loss of approximately RMB1,757,894,000 for the period ended 30 June 2026. As at 30 June 2026, the Group’s current liabilities exceeded its current assets by approximately RMB13,225,215,000, of which approximately RMB4,767,705,000 of interest-bearing bank and other borrowings and approximately RMB13,602,543,000 of senior notes and interest payable were in default, included the amount of event triggered by default of certain interest-bearing bank and other borrowings and senior notes. Such that, the lenders and certain senior note holders have the right to demand immediate repayment of the entire outstanding balance as at 30 June 2026. As at 30 June 2026, the Group’s cash and cash equivalents amounted to RMB278,757,000 only. The above conditions indicate the existence of material uncertainties which cast significant doubt over the Group’s ability to continue as a going concern. In view of such circumstances, the directors of the Company have undertaken a number of plans and measures to improve the Group’s liquidity and financial position, including: (a) The Group has been actively negotiating with several banks and financial institutions on the extension for repayments of certain borrowings; – 5 –
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(b) The Group has been actively negotiating with several financial institutions to obtain new loans at a reasonable cost for ensuring delivery of its property projects under development; (c) The Group will continue to seek for other alternative financing and borrowings to finance the settlement of its existing financial obligations and future operating and capital expenditures; (d) The Group has prepared a business strategy plan mainly focusing on the acceleration of the sales of properties; (e) The Group has implemented measures to speed up the collection of outstanding sales proceeds and effectively control costs and expenses; and (f) The Group will continue to seek suitable opportunities to dispose of its equity interests in certain project development companies in order to generate additional cash inflows. The directors have reviewed the Group’s cash flow projections prepared by management, which cover a period of not less than twelve months from 30 June 2026. They are of the opinion that, taking into account the abovementioned plans and measures, the Group will have sufficient working capital to finance its operations and to meet its financial obligations as and when they fall due within twelve months from 30 June 2026. Accordingly, the directors are satisfied that it is appropriate to prepare the condensed consolidated financial statements on a going concern basis. Notwithstanding the above, the successful implementation of these plans and measures is subject to uncertainties that are not wholly within the control of the Group. The ability of the Group to continue as a going concern depends on: (a) successfully negotiating with several banks and financial institutions on the extension for repayments of certain borrowings; (b) successfully negotiating with several financial institutions to obtain new loans at a reasonable cost for ensuring delivery of its property projects under development; (c) successfully seeking for other alternative financing and borrowings to finance the settlement of its existing financial obligations and future operating and capital expenditures; (d) successfully preparing a business strategy plan mainly focusing on the acceleration of the sales of properties; (e) successfully implementing measures to speed up the collection of outstanding sales proceeds and effectively control costs and expenses; and (f) successfully seeking suitable opportunities to dispose of its equity interests in certain project development companies in order to generate additional cash inflows. – 6 –
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These matters collectively constitute material uncertainties that may cast significant doubt on the Group’s ability to continue as a going concern. Should the Group fail to continue as a going concern, adjustments may have to be made to write down the carrying values of assets to their recoverable amounts, to provide for any further liabilities which might arise, and to reclassify non-current assets and non-current liabilities as current assets and current liabilities, respectively. The effect of these adjustments has not been reflected in the condensed consolidated financial statements. 3. CHANGES IN ACCOUNTING POLICIES AND DISCLOSURES The accounting policies adopted in the preparation of the condensed consolidated financial information are consistent with those applied in the preparation of the Group’s annual consolidated financial statements for the year ended 31 December 2025, except for the adoption of the following revised IFRS Accounting Standards for the first time for the current period’s financial information. Amendments to IFRS 9 and IFRS 7 Amendments to the Classification and Measurement of Financial Instruments Amendments to IFRS 9 and IFRS 7 Contracts Referencing Nature-dependent Electricity Annual Improvements to IFRS Accounting Standards –Volume 11 Amendments to IFRS 1, IFRS 7, IFRS 9, IFRS 10 and IAS 7 The amendments did not have any material impact on the condensed consolidated financial statements. 4. OPERATING SEGMENT INFORMATION For management purposes, the Group is organised into business units based on their products and services and has three reportable operating segments as follows: • Property development and management services • Commercial property investment and operations • Hotel operations – 7 –
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The Group’s operations are mainly conducted in Mainland China. Management considered there is no reportable geographic segment as all revenues from external customers are generated in Mainland China and the Group’s significant non-current assets are located in Mainland China. Six months ended 30 June 2026 Property development and management services Commercial property investment and operations Hotel operations Total RMB’000 RMB’000 RMB’000 RMB’000 (Unaudited) (Unaudited) (Unaudited) (Unaudited) Segment revenue (Note 5) Sales to external customers 573,372 126,943 – 700,315 Revenue 700,315 Segment results (1,479,485) (48,247) (1) (1,527,733) Reconciliation: Bank interest income 438 Fair value losses on financial assets at fair value through profit or loss, net (19,582) Finance costs (other than interest on lease liabilities) (128,980) Corporate and other unallocated expenses (257) Loss before taxation (1,676,114) – 8 –
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Six months ended 30 June 2025 Property development and management services Commercial property investment and operations Hotel operations Total RMB’000 RMB’000 RMB’000 RMB’000 (Unaudited) (Unaudited) (Unaudited) (Unaudited) Segment revenue (Note 5) Sales to external customers 2,545,316 166,971 – 2,712,287 Revenue 2,712,287 Segment results (1,384,283) (62,500) (902) (1,447,685) Reconciliation: Bank interest income 994 Fair value gains on financial assets at fair value through profit or loss, net 2,946 Finance costs (other than interest on lease liabilities) (524,579) Corporate and other unallocated expenses (7,280) Loss before taxation (1,975,604) – 9 –
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The following table presents the asset and liability information of the Group’s operating segments as at 30 June 2026 and 31 December 2025. Property development and management services Commercial property investment and operations Hotel operations Total RMB’000 RMB’000 RMB’000 RMB’000 (Unaudited) (Unaudited) (Unaudited) (Unaudited) Segment assets 30 June 2026 34,334,451 13,848,715 93,841 48,277,007 Reconciliation: Corporate and other unallocated assets 276,692 Total assets 48,553,699 Segment liabilities 30 June 2026 46,651,122 1,894,447 43,504 48,589,073 Reconciliation: Corporate and other unallocated liabilities 76,764 Total liabilities 48,665,837 Property development and management services Commercial property investment and operations Hotel operations Total RMB’000 RMB’000 RMB’000 RMB’000 (Audited) (Audited) (Audited) (Audited) Segment assets 31 December 2025 36,587,848 13,671,668 131,142 50,390,658 Reconciliation: Corporate and other unallocated assets 223,753 Total assets 50,614,411 Segment liabilities 31 December 2025 46,408,918 2,126,486 50,045 48,585,449 Reconciliation: Corporate and other unallocated liabilities 37,703 Total liabilities 48,623,152 – 10 –
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Information about major customers No sales to a single customer or a group of customers under common control accounted for 10% or more of the Group’s revenue during the six months ended 30 June 2026 and 2025. 5. REVENUE, OTHER INCOME AND GAINS An analysis of revenue is as follows: For the six months ended 30 June 2026 2025 RMB’000 RMB’000 (Unaudited) (Unaudited) Revenue from contracts with customers 574,209 2,548,408 Revenue from other sources Gross rental income 126,106 163,879 Total 700,315 2,712,287 Disaggregated revenue information for revenue from contracts with customers For the six months ended 30 June 2026 Segments Property development and management services Commercial property investment and operations Hotel operations Total RMB’000 RMB’000 RMB’000 RMB’000 (Unaudited) (Unaudited) (Unaudited) (Unaudited) Types of goods or services Sale of properties 549,905 – – 549,905 Project management services 23,467 – – 23,467 Others – 837 – 837 Total 573,372 837 – 574,209 Timing of revenue recognition Sale of properties transferred at a point in time 549,905 – – 549,905 Services transferred over time 23,467 837 – 24,304 Total 573,372 837 – 574,209 – 11 –
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For the six months ended 30 June 2025 Segments Property development and management services Commercial property investment and operations Hotel operations Total RMB’000 RMB’000 RMB’000 RMB’000 (Unaudited) (Unaudited) (Unaudited) (Unaudited) Types of goods or services Sale of properties 2,533,070 – – 2,533,070 Project management services 12,246 – – 12,246 Others – 3,092 – 3,092 Total 2,545,316 3,092 – 2,548,408 Timing of revenue recognition Sale of properties transferred at a point in time 2,533,070 – – 2,533,070 Services transferred over time 12,246 3,092 – 15,338 Total 2,545,316 3,092 – 2,548,408 An analysis of the Group’s other income and gains is as follows: For the six months ended 30 June 2026 2025 RMB’000 RMB’000 (Unaudited) (Unaudited) Bank interest income 438 994 Forfeiture of deposit 88 760 Government grants (Note (i)) 71 335 Fair value gains on financial assets at fair value through profit or loss, net – 2,946 Reversal of impairment losses recognised on financial assets, net 82,946 143,375 Gains on disposal of property, plant and equipment – * – Gain on disposal of investment properties 269 – Exchange gains 52,716 – Gains on settlement of borrowing (Note (ii)) – 83,435 Others 816 762 137,344 232,607 Notes: (i) It mainly represented unconditional cash received from the local government to encourage the business operations in the Mainland China. * Less than RMB1,000 – 12 –
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(ii) During the six months ended 30 June 2025, pursuant to a court ruling, pledged investment properties with a carrying amount of approximately RMB66,645,000 were used to settle a defaulted borrowing of approximately RMB150,080,000. As a result, a gain on settlement of borrowing of approximately RMB83,435,000 was recognised and included in other income and gains. No such transaction occurred during the six months ended 30 June 2026. 6. LOSS BEFORE TAXATION The Group’s loss before taxation is arrived at after charging/(crediting): For the six months ended 30 June 2026 2025 RMB’000 RMB’000 (Unaudited) (Unaudited) Cost of inventories sold 649,373 2,521,297 Cost of services provided 21,688 58,422 Impairment losses recognised on properties under development and completed properties held for sale, net 1,153,523 354,683 Reversal of impairment losses recognised on financial assets, net (82,946) (143,375) Depreciation of property, plant and equipment 7,180 6,788 Depreciation of right-of-use assets 563 1,367 Amortisation of other intangible assets 367 309 Fair value losses on investment properties, net – 19,660 Fair value losses/(gains) on financial assets at fair value through profit or loss, net 19,582 (2,946) (Gains)/losses on disposal of property, plant and equipment – * 1 Gains on settlement of borrowing – (83,435) Written off of property, plant and equipment 853 – Share of losses of: Joint ventures 226,192 624,754 Associates 220,851 610,003 Employee benefit expense (including directors’ and chief executive’s remuneration): Wages and salaries 28,859 68,872 Pension scheme contributions and social welfare 4,690 8,272 Less: Amount capitalised (2,797) (14,216) 30,752 62,928 * Less than RMB1,000 – 13 –
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7. FINANCE COSTS An analysis of finance costs is as follows: For the six months ended 30 June 2026 2025 RMB’000 RMB’000 (Unaudited) (Unaudited) Interest on interest-bearing bank and other borrowings and senior notes 553,536 757,291 Interest on lease liabilities 7,311 15,586 Interest expense arising from revenue contracts 10,245 20,625 Total interest expense 571,092 793,502 Less: Net foreign exchange gains on financing activities (348,640) (48,384) Interest capitalised (86,161) (204,953) 136,291 540,165 8. TAXATION The Group is subject to income tax on an entity basis on profits arising in or derived from the tax jurisdictions in which members of the Group are domiciled and operate. Pursuant to the rules and regulations of the Cayman Islands and British Virgin Islands, the Group’s subsidiaries incorporated in the Cayman Islands and British Virgin Islands are not subject to any income tax. The Group’s subsidiaries incorporated in Hong Kong are not liable for income tax as they did not have any assessable income currently arising in Hong Kong for the six months ended 30 June 2026 and 2025. Subsidiaries of the Group operating in Mainland China are subject to the People’s Republic of China (“PRC”) corporate income tax rate of 25% for the period. – 14 –
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Land appreciation tax (“LAT”) is levied at progressive rates ranging from 30% to 60% on the appreciation of land value, being the proceeds from sale of properties less deductible expenditures including land costs, borrowing costs and other property development expenditures. The Group has estimated, made and included in taxation a provision for LAT according to the requirements set forth in the relevant Mainland China tax laws and regulations. The LAT provision is subject to the final review and approval by the local tax bureau. For the six months ended 30 June 2026 2025 RMB’000 RMB’000 (Unaudited) (Unaudited) Current tax: Corporate income tax 12,424 32,274 LAT 61,455 68,598 Deferred tax 7,901 43,079 81,780 143,951 Under-provision in prior years: LAT – 201,026 Total tax charge for the period 81,780 344,977 9. DIVIDENDS The Board has resolved not to pay an interim dividend for the six months ended 30 June 2026 (six months ended 30 June 2025: Nil). – 15 –
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10. LOSS PER SHARE ATTRIBUTABLE TO ORDINARY EQUITY HOLDERS OF THE COMPANY The calculation of the basic loss per share amount is based on the loss for the year attributable to ordinary equity holders of the Company, and the weighted average number of ordinary shares of 3,338,898,000 (six months ended 30 June 2025: 3,338,898,000) in issue during the period. The calculations of basic and diluted losses per share are based on: 2026 2025 RMB’000 RMB’000 (Unaudited) (Unaudited) Loss Loss attributable to ordinary equity holders of the Company, used in the basic earnings per share calculation (1,697,874) (1,883,732) Number of shares 2026 2025 Shares Weighted average number of ordinary shares in issue during the period used in the basic earnings per share calculation 3,338,898,000 3,338,898,000 – 16 –
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11. TRADE RECEIVABLES An ageing analysis of the trade receivables as at the end of the Reporting Period, based on the invoice date and net of loss allowance, is as follows: 30 June 2026 31 December 2025 RMB’000 RMB’000 (Unaudited) (Audited) Within 1 month 1,852 1,557 1 to 3 months – 250 3 to 6 months – – 6 to 12 months 282 241 2,134 2,048 The Group applies the simplified approach to providing for expected credit losses prescribed by IFRS 9, which permits the use of the lifetime expected loss provision for all trade receivables. To measure the expected credit losses, trade receivables have been grouped based on shared credit risk characteristics and the days past due. Based on evaluation on the expected loss rate and gross carrying amount, the directors of the Company are of the opinion that the ECL in respect of these balances is considered to be immaterial, and therefore, there has not been a loss allowance provision. 12. TRADE AND BILLS PAYABLES An ageing analysis of the trade and bills payables as at the end of the Reporting Period, based on the invoice date, is as follows: 30 June 2026 31 December 2025 RMB’000 RMB’000 (Unaudited) (Audited) Within 1 year 507,665 629,376 Over 1 year 5,151,662 5,346,760 5,659,327 5,976,136 Trade payables are unsecured and interest-free and are normally settled based on the progress of construction. – 17 –
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OVERVIEW AND OUTLOOK Review for the First Half of 2026 According to the National Bureau of Statistics, China’s gross domestic product (GDP) for the first half of the year reached RMB69.5704 trillion, representing a year-on-year increase of 4.7% at constant prices. Withstanding downward pressure, the national economy operated within a reasonable range, characterized by relatively rapid growth in production and supply, generally stable employment, and a mild increase in consumer prices. Furthermore, foreign trade sustained robust momentum, while new economic drivers expanded rapidly. With people’s livelihoods effectively safeguarded, the underlying resilience of economic development was continuously demonstrated. In the real estate sector, the central government persistently advanced policies aimed at stabilizing the market, adopted city-specific measures to control incremental supply, accelerate destocking and optimize the supply structure, and explored diverse channels to revitalize existing commercial housing, such as encouraging the acquisition of existing commercial housing to be repurposed for affordable housing. In the first half of 2026, the sales area of newly built commercial housing stood at 401.40 million sq.m., representing a year-on-year decrease of 11.6%, of which the sales area of residential housing decreased by 12.4%. The sales amount of newly built commercial properties was RMB3.7945 trillion, representing a decrease of 13.6%, of which the sales amount of residential properties decreased by 13.7%. The residential sector underperformed the broader market. Although the cumulative decline has generally plateaued, the year-on-year drop in June widened, reflecting persistently weak homebuyer confidence. The release of both rigid and upgrade demand remained insufficient; only high-quality upgrade projects in core cities demonstrated robust destocking performance, illustrating a structural market trend of “contracting volume alongside stable prices”. At the end of June, the unsold area of commercial housing was 763.15 million sq.m., down 0.9% year-on-year. Notably, the unsold area of properties available for less than three years decreased by 3.5% to 561.67 million sq.m. Marking a decline for four consecutive months, this highlighted the tangible effectiveness of destocking short-term housing inventory (less than three years). The strategy of controlling incremental supply and accelerating destocking was gradually bearing fruit. Nevertheless, the overall market remained in a phase of adjustment and bottoming-out. With key indicators still trending downwards year-on-year, policies have effectively held the risk bottom line. However, a trend-level recovery on the demand side is yet to materialize, and the polarization among different cities and projects has further intensified. In the face of a shifting external consumer market, the Company steadfastly upheld its core values of “professionalism and building credibility for the long term”. Adhering to the service philosophy of “quality first, customer foremost”, we devoted unwavering efforts to safeguard housing delivery and comprehensively addressed customer needs. – 18 –
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In the first half of 2026, the Group delivered one project of a total of 324 new housing with 42,000 sq.m. in aggregate, steadfastly keeping its word to provide good homes. During the Reporting Period, the Company adhered to an operational strategy centered on strengthening debt management, safeguarding assets, and controlling risks, with steady operation as its overriding priority. Strictly defending the safety red line of our cash flow and building upon the foundation of safeguarding housing delivery, we employed multiple measures to tackle the collection of outstanding receivables, accelerate capital return, and fortify our operational bedrock. Furthermore, the Company conducted a comprehensive and full-dimensional review of its accounts and asset inventory. By meticulously examining current accounts item by item and unlocking the potential of receivables recovery, we formulated categorized collection plans to activate idle funds. We also enforced strict and refined control over administrative and operating expenses, optimized our cost structure, and rigidly curtailed non-essential expenditures. Through continuous improvements in the input-output ratio and overall cost-efficiency, we ensured the steady and healthy operation of the enterprise, underpinned by a robust financial control system. Outlook for the Second Half of 2026 Looking ahead to the second half of 2026, the real estate policy environment is expected to remain accommodative. In the first half of the year, the central government twice emphasized “stabilizing the real estate market”, underscoring its firm commitment to market stabilization. As the industry transitions from incremental development to existing stock operation, the market will be predominantly in the bottoming-out and adjustment phase, with the divergence landscape persisting. Going forward, it is expected that destocking and boosting residents’ housing demand will be the core policy priorities in the next stage. We anticipate an intensification of structural polarization in the property market during the second half of 2026. Land resources and housing demand will continue to concentrate in core high-tier cities. Supported by endogenous demand driven by population and industries, first- and second-tier cities will stabilize their market fundamentals. Conversely, third-and fourth-tier cities, hampered by insufficient demand, will remain in a deep bottoming-out phase. The market transaction structure is undergoing a paradigm shift, with second-hand housing transactions continuing to increase and gradually emerging as the primary force in the market. The new housing market has bid farewell to the era of broad-based price appreciation. Only upgraded projects possessing hardcore product strength can defy the overall trend and carve out an independent upward trajectory, whereas the destocking of homogenized rigid-demand properties will face persistent pressure. – 19 –
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Embarking on a new journey at our 30th anniversary, we are gathering our collective strength to chart a new course. The Company will actively fulfill its corporate social responsibility by resolutely defending the bottom line of project delivery. Through safeguarding livelihood- critical handovers, we aim to facilitate the steady development of cities and uphold the orderly operation of the industry. On the financial front, we will strictly maintain our cash flow bottom line, channeling our utmost efforts into receivables collection, activating existing assets, and rigorously controlling cost-efficiency outlays. In terms of risk management, we will continually enhance the full-cycle oversight of our debts, assets, and overall operations to prudently defuse any hidden operational risks. Simultaneously, we will solidify our organizational foundation and optimize team efficiency. Relying on steady operations, refined management, and a highly efficient organizational framework, we will secure the smooth and high-quality development of the Group. Looking forward, as we stand at the historic milestone of our 30th anniversary, the Company will reaffirm its conviction and persevere through hard work. By addressing challenges with pragmatic actions and fulfilling our mission with unwavering responsibility, we will join hands to write a new chapter of high-quality development on the journey of the new era. – 20 –
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MANAGEMENT DISCUSSION AND ANALYSIS Business Review 1. Sales of Properties For the six months ended 30 June 2026, the Group achieved contracted sales of approximately RMB0.94 billion, representing a decrease of 67.1% as compared to RMB2.87 billion in the same period last year. Details of the contracted sales of the Group for the six months ended 30 June 2026 are set out as below: Region Contracted Sales in Total Gross Floor Area Contracted Sales Amount Average Contracted Selling Price sq.m. RMB’000 RMB/sq.m. Nanjing 7,619 195,487 25,657 Xuzhou 2,182 15,554 7,128 Weifang 7,001 59,491 8,498 Ningbo 2,629 47,789 18,178 Suzhou 7,178 109,636 15,273 Chengdu 1,774 22,237 12,532 Qingdao 3,644 32,560 8,936 Hefei 1,366 11,449 8,384 Foshan 1,414 26,733 18,911 Wuhan 1,865 19,939 10,688 Yancheng 9,196 60,657 6,596 Changsha 302 4,062 13,450 Changzhou 3,485 42,705 12,255 Nantong 31,657 63,500 2,006 Huai’an 4,099 31,835 7,767 Anqing 962 18,679 19,422 Chongqing 5,817 70,554 12,129 Nanchang 246 3,455 14,065 Wuxi 334 10,089 30,197 Wenzhou 1,913 29,127 15,223 Suqian 4,869 32,285 6,631 Yangzhou – 344 – Others 448 35,973 80,332 Total 99,998 944,139 9,442 – 21 –
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2. Land Bank As at 30 June 2026, the Group’s total gross floor area of land bank was approximately 6,974,761 sq.m., including completed properties totaled 2,105,616 sq.m., rentable area held for investment totaled 1,034,882 sq.m. and properties under development totaled 3,834,262 sq.m. Details of the land bank of the Group (including the land bank which is undergoing the acquisition process) as at 30 June 2026 are set out as below: Region Name of Project Area of Land Completed Total Gross Floor Area for Sale Rentable Area Held for Investment Total Gross Floor Area under Development Total Area of Land Bank The Group’s Interests (sq.m.) (sq.m.) (sq.m.) (sq.m.) (sq.m.) Anqing Anqing Hong Yang Upper City (۬) 147,547 153 80,000 – 80,153 100% Bengbu Huadi Hongyang Residence (ִ) 32,646 5,328 – – 5,328 50% Bozhou Verse of River and Mountain (formerly: Bozhou Land Lot No. 2017 –217 ( Ϫʆረ(ψ2017 –217 ή෯)) 201,216 7,694 – – 7,694 40% Changshu Hefeng Architecture in Xinhua Road (Τጘ) 45,742 423 – – 423 40% Changshu Changshu Guli Tieqin Road Project ( ੬ᆞ̚༁᚛ೞ༩ධͦ) 40,805 39,450 – – 39,450 34% Changzhou Commercial and Trading Peak (ࢤ) 50,921 15,020 – – 15,020 57% Changzhou Phoenix East Phoenix One (formerly: Phoenix East Project) (ᎀჾΥ ჼ(ධͦ)) 115,615 8,521 30,086 94,266 132,873 49% Changzhou Golden Seal and Heaven Shire (ᖗ˂য়) 88,719 1,608 – – 1,608 50% Changzhou Sang Ma Land Lot A (௦A ή෯) 44,524 – 11,690 – 11,690 70% Changzhou Yanlan Fenghua (ശ) 126,695 1,051 – – 1,051 85% Changzhou Changzhou Hong Yang Plaza ( ੬ψ̾ජᄿఙ) 43,590 – 89,865 – 89,865 100% Changzhou Changzhou Hong Yang 1936 (formerly: Sang Ma Land Lot CD) (੬ψ̾ජ 1936(௦CDή෯)) 156,115 36,385 105,818 26,509 168,712 70% Changzhou Sanmao Longyun Tiancheng (formerly: Sanmao Land Lot) (۬ ( Τ၈jɧˣή෯)) 108,486 4,219 – – 4,219 31% Changzhou Xi Xia Shu Yun Xi (ྨථᐤ) 36,712 17,798 – – 17,798 37% Changzhou Changzhou Yaoguan Yuhushangguan Garden (߹ڀ) 58,093 8,090 – – 8,090 60% Chengdu Dujiangyan DJY2017 –09 (ேϪఛ DJY2017 –09) 26,393 2,457 – – 2,457 99% Chengdu Dujiangyan DJY2017 –10 (ேϪఛ DJY2017 –10) 39,064 4,347 – – 4,347 99% Chengdu Central Road Fanjin 108 (formerly: Central Road Project) (ʕᐑ༩ᎀ 108(Τ၈jʕᐑ༩ධͦ)) 72,114 11,988 41,730 20,787 74,505 50% Chengdu Shuangliu Heyuan Project (Υ ධͦ) 19,794 433 – – 433 50% – 22 –
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Region Name of Project Area of Land Completed Total Gross Floor Area for Sale Rentable Area Held for Investment Total Gross Floor Area under Development Total Area of Land Bank The Group’s Interests (sq.m.) (sq.m.) (sq.m.) (sq.m.) (sq.m.) Chengdu Qionglai Hong Yang Weilai Shiguang (Έ) 39,809 7,088 – – 7,088 99% Chengdu Chengdu Xinglonghu Lakeside Yun Jing Garden (formerly: Tianfu Xinqu 42 mu) ( (อਜ42ल )) 28,432 11,545 – – 11,545 51% Chuzhou Metropolitan Art Atmosphere ( ேึᖵྤ) 60,189 5,599 – – 5,599 33% Chuzhou Hong Yang Garden (߹8,782 1,103 – – 1,103 100% Chuzhou Glory Residence (ִ80,867 11,383 – – 11,383 30% Chuzhou Garden in Times (Chuzhou Times Billow) ((ࢬ)) 89,886 10,425 – – 10,425 100% Chuzhou Jingzi Road Times Magnificence (ശ) 55,719 12,197 – – 12,197 50% Danyang Phoenix Terrace (ჾዳ̨) 88,498 4,968 – – 4,968 20% Foshan Hongyang Shan Xin Garden () 63,132 937 – – 937 100% Foshan Benevolence Lake No.1 (௹ฌಳɓ) 44,156 2,219 8,011 – 10,230 100% Foshan Foshan Lakeside Mansion (formerly: Lv Dao Hu) (ಳʮ (ಳ)) 51,240 21,225 – – 21,225 33% Foshan Nanyou Park No.1 (ʮɓ) 67,582 22,066 – – 22,066 33% Foshan Foshan Jihua North Joy River No.1 (Ϫɓ) 33,220 11,444 – – 11,444 49% Foshan Foshan Zhangcha Sunrise Joy Residence (ִࣀ) 17,059 4,896 – – 4,896 51% Fuyang Yingzhou Hong Yang Residence (ִ) 38,297 4,616 – – 4,616 50% Guangzhou Guangzhou Wanjing No.1 ( ᄿψᝄዽఠ) 32,387 39,052 – – 39,052 25% – 23 –
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Region Name of Project Area of Land Completed Total Gross Floor Area for Sale Rentable Area Held for Investment Total Gross Floor Area under Development Total Area of Land Bank The Group’s Interests (sq.m.) (sq.m.) (sq.m.) (sq.m.) (sq.m.) Haimen Jianghai Road The One World (formerly: Jianghai Road Zuo An Gong Yuan) (߹(Τ၈jϪऎ ʮʩ)) 75,028 313 – – 313 67% Hangzhou Hangxing Road Project (Б༩ධͦ) 18,703 1,931 – – 1,931 30% Hangzhou Fuchun Bay Jichen Residence (ִ࢚) 39,313 10,469 – – 10,469 35% Hangzhou Hangzhou Binyao Mansion (formerly: Binjiang Pule Project) (ִ ( Τ၈jᏵϪऌᆀධͦ)) 44,633 3,668 – – 3,668 30% Hefei Changfeng in Times (Έ༁) 42,621 4,699 – – 4,699 100% Hefei Yaohai Joy Residence (ִࣀ37,254 2,133 – – 2,133 80% Hefei Dongfangyin (˙Ι) 28,081 4,553 – – 4,553 51% Hefei Fengle Oriental Jade (formerly: Yaohai Prosper and Joy) (˙ (Τ၈jာऎᔮᆀ)) 59,233 11,763 – – 11,763 34% Hefei Longzi Lake Times (Έ) 68,461 7,326 – – 7,326 30% Hefei Lujiang Lakeside Shade Mountain ( ᕽϪಳऱ⭮ʆ) 161,263 81,856 0 127,588 209,444 50% Hengyang Yangliu Road Sunrise Joy Residence (ִࣀ) 36,912 5,831 – – 5,831 100% Huzhou Ren Huang 43 Yan Lan Residence (ެ43ִ) 48,652 4,079 – – 4,079 100% Huzhou Ren Huang 58 Yan Lan Residence (formerly: Huzhou Ren Huang No.58#) (ެ58ִ(Τ၈j ެ58#)) 102,218 6,672 – – 6,672 100% Huzhou Huzhou Southwest Development Zone Qinlan Residence (formerly: Huzhou South Taihu New District Project) (ִ(Τ၈j ˄ಳอਜධͦ)) 30,200 36,737 – – 36,737 38% – 24 –
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Region Name of Project Area of Land Completed Total Gross Floor Area for Sale Rentable Area Held for Investment Total Gross Floor Area under Development Total Area of Land Bank The Group’s Interests (sq.m.) (sq.m.) (sq.m.) (sq.m.) (sq.m.) Huai’an Heyi Road Yunhe Fenghua (Υจ༩༶ ശ) 68,362 4,623 – – 4,623 49% Huai’an Huai’an Fengdeng Road Jinyuefu (formerly: Huai’an Fengdeng Road) (ִ(Τ၈jଊτ ᔮ೮༩)) 41,476 1,955 – – 1,955 34% Huai’an Huai’an Eco-City Grand One (ଊτ͛࿒ ഹɽᝈ) 82,734 2,980 – 114,841 117,821 51% Jinan Jiqi Road Leisure’s Mansion (formerly: Jiqi Road Project) ( ִ ( Τ၈jᄁ༩ධͦ)) 34,290 4,639 – – 4,639 45% Jiangmen Liyue Guoyue Residence (formerly: Liyue Project) (ִ ( Τ၈jᓿᆀධͦ)) 30,231 19,831 – – 19,831 33% Jiangyin Yunting Tangyue Jinyuan (formerly: Yunting Primary School Project) (ಆ⭮ᎀ(ʃኪ ධͦ)) 92,953 7,508 – – 7,508 50% Jurong Jurong C Ziyue Residence (formerly: Land Lot No.2018-J1-06) (࢙Cࣀ ִ(Τ၈j2018-J1-06ή෯)) 72,609 40,290 – – 40,290 33% Jurong Jurong B Project (formerly: Jurong Land Lot No.B) (࢙B ධͦ(Τ၈j ࢙Bή෯)) 38,731 – – 74,274 74,274 19% Kaifeng Zhong Yi Hu Yan Lan Residence (formerly: Kaifeng Yan Lan Residence) (ִ(Τ၈j ִ)) 63,533 9,358 – – 9,358 49% Ma’anshan Hexian Peacock City (۬97,340 2,146 – – 2,146 20% Meishan Renshou in Times (Έ༁) 68,107 84 – 45,421 45,505 100% Nanchang Nanchang Hong Yang Residence (ִ) 43,410 9,335 – – 9,335 49% – 25 –
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Region Name of Project Area of Land Completed Total Gross Floor Area for Sale Rentable Area Held for Investment Total Gross Floor Area under Development Total Area of Land Bank The Group’s Interests (sq.m.) (sq.m.) (sq.m.) (sq.m.) (sq.m.) Nanchang Yao Lake Times Sky Shade (ࣛ Έ˂⭮) 102,269 18,996 – 129,964 148,960 66% Nanchang Zhong Da Hong Yang (formerly: Qing Yun Pu) (ʕɽ̾ජ(ථᗅ)) 29,452 11,095 – – 11,095 49% Nanchang Wanli in Times (Έ༁) 13,717 3,262 – – 3,262 100% Nanchang Nanchang Qingshan Lake Avenue Times Garden (ࣀ) 20,182 9,380 – 11,320 20,700 49% Nanjing Solaris Loving City Section 8 (ɞਜ) 40,552 4,324 – – 4,324 100% Nanjing Shiguang Chunxiao (ወ) 32,246 449 – – 449 49% Nanjing Binhuli (Ᏽಳ༁) 52,763 5,426 – – 5,426 51% Nanjing Qilin Garden in the East (߹؇67,810 14,219 – – 14,219 33% Nanjing Yanlan Qijin (ዲᘜɖጧ) 57,503 4,024 – – 4,024 49% Nanjing Shiguang Yinxiang (ΈΙ) 61,145 119 – – 119 49% Nanjing Gaoxin G27 Yinyue Residence ( ৷อG27ִࣀ) 68,644 12,212 – – 12,212 20% Nanjing Mountain and Lake View in Times (Έʆಳ) 14,338 2,120 – – 2,120 25% Nanjing Shidai Tianyue (formerly: Nanjing Land Lot No.2017G36) (˾˂⭮(Τ ԯ•2017G36ή෯)) 54,173 – – 78,508 78,508 20% Nanjing Xiaolongwan Garden of Joy and Happiness (formerly: Land Lot No.2017G57) (߹ ( Τ၈j2017G57ή෯)) 58,024 8,949 – – 8,949 100% Nanjing Gaoxin Xingyuecheng Phase 2 (ɚಂ) 7,025 – – 14,687 14,687 50% Nanjing Gaochun Pinglan Residence (formerly: Gaochun Land Lot No. 02 –03) (ִ(Τ၈j৷૮02 –03 ή෯)) 102,787 11,450 – – 11,450 12% – 26 –
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Region Name of Project Area of Land Completed Total Gross Floor Area for Sale Rentable Area Held for Investment Total Gross Floor Area under Development Total Area of Land Bank The Group’s Interests (sq.m.) (sq.m.) (sq.m.) (sq.m.) (sq.m.) Nanjing Solaris Jingcheng Store (ਠ⧕) 1,371 – 4,450 – 4,450 100% Nanjing Solaris Loving City Section 6 Store (ʬਜਠ⧕) 989 – 7,301 – 7,301 100% Nanjing Nanjing Hong Yang Plaza (ԯ̾ජ ᄿఙ) 230,871 – 504,373 – 504,373 100% Nanjing 3rd–4th Floor of Redsun Tower ( ̾ජɽข3 –4ᄴ) 277 – 4,964 – 4,964 100% Nanjing Lishui Times Joy Residence (formerly: Shiqiu Project) (ִࣀ ( Τ၈jͩ⇞ධͦ)) 131,964 30,486 – – 30,486 51% Nanjing Lukou Lakeside Mansion (formerly: Lukou Project) (ສɹථዽ (Τ၈jສɹධͦ)) 73,686 18,339 – 50,283 68,622 49% Nanjing Puzhu North Road Shangshang Joy Garden (߹ࣀ) 7,232 5,889 – – 5,889 70% Nanjing Lishui Sunrise Joy Shangchen (࢚֠ࣀ) 41,931 1,269 – 8,870 10,139 50% Nanjing Qiaolin Shiguang Boyueyuan (˜) 28,188 5,323 – – 5,323 50% Nanjing Nanjing Times Avenue Lan Wan Jiu Zhu (formerly: Times Avenue Project) (˾ɽ༸ᜡᝄӯጘ(Τ၈j ˾ɽ༸ධͦ)) 60,138 90,411 – – 90,411 15% Nanjing Nanjing Zhuangyuanfang Xiyue Garden (formerly: Lishui Zhuangyuanfang Project) ( (ʩѥධͦ)) 67,192 32,493 – 12,544 45,037 33% Nanjing Nanjing Yaohuamen Qiyao Meizhu (ഹ) 14,670 3,853 – – 3,853 83% Nanjing Nanjing Kangjian Road Glance River Joy Residence (ִࣀ) 65,227 23,131 – – 23,131 49% Nanjing Nanjing Jiangbei Core District Yuejiang Shidai (˾) 66,057 27,203 – – 27,203 25% Nanjing Nanjing Dachang Top Cloud Mansion (ഹ) 18,130 9,892 – 10,220 20,112 51% – 27 –
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Region Name of Project Area of Land Completed Total Gross Floor Area for Sale Rentable Area Held for Investment Total Gross Floor Area under Development Total Area of Land Bank The Group’s Interests (sq.m.) (sq.m.) (sq.m.) (sq.m.) (sq.m.) Nanjing Nanjing Tangshan Yunchen Yuanlu (ᘇ) 68,029 – – 108,995 108,995 33% Nanjing Nanjing Qinhuai Chengdong Atmosphere of Mind (؇۬ ӯ⭮Ι) 31,813 31,908 – – 31,908 33% Nantong Yunyue Oriental (˙) 86,652 4,016 – – 4,016 17% Nantong Upper Joy City (۬ࣀ82,741 9,125 – – 9,125 25% Nantong New Metropolitan (อேึ) 109,890 2,135 – – 2,135 13% Nantong Center Creation Metropolitan ( ʕ௴ɽேึ) 47,963 – 1,035 – 1,035 24% Nantong Sutong Yongjin Lanwan (ᘽஷའᎀᘜᝄ) 47,405 7,091 – – 7,091 36% Nantong Zisheng Road Junlan Tianyue (ࣀ) 40,689 540 – – 540 100% Nantong Nantong Gaotie Xincheng Honored Palace (formerly: Pingchao Gaotie Xincheng) (ි (۬)) 84,022 41,823 – 101,513 143,336 60% Nantong Nantong Fuxing Road Guanjianghai (formerly: Nantong Fuxing Road Project) (ஷబጳ༩ᝈϪऎ (ஷబጳ༩ධͦ)) 69,966 6,216 – – 6,216 20% Nantong Antai Road Jingchen Residence (ִ࢚) 53,761 – – 116,056 116,056 30% Ningbo Chen Po Du Yong Chao Yin Residence (formerly: Chen Po Du) (ನಪᆓ ִ(Τ၈jನ)) 40,148 4,163 – – 4,163 31% Ningbo Cixi Chengdong Shangdongchen Residence (ִ) 84,775 38,631 42,129 – 80,760 50% Qingdao Jinshatan Beyond the Sea (Ӎᛉ˂ረථऎ) 14,077 11,726 – 37,415 49,141 30% Qingdao Jimo Yunhai Road Beauty Collection in Times (Έ) 116,220 – – 129,851 129,851 35% – 28 –
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Region Name of Project Area of Land Completed Total Gross Floor Area for Sale Rentable Area Held for Investment Total Gross Floor Area under Development Total Area of Land Bank The Group’s Interests (sq.m.) (sq.m.) (sq.m.) (sq.m.) (sq.m.) Rugao Wanshou Road Zi Yun Ji (formerly: Wanshou Road Project) (ຬྪ༩ഓථ ණ(Τ၈jຬྪ༩ධͦ)) 89,669 9,447 – – 9,447 29% Suzhou Upper Sunny Masterpiece Garden (߹) 44,701 1,872 – – 1,872 50% Suzhou Shangshui Garden of Elegance (߹) 69,325 95 – – 95 100% Suzhou Xiangcheng Shangchen View Mansion (formerly: Fuyuan Road Project) (˂ྤɪԕ(Τ၈jబʩ༩ ධͦ)) 154,101 16,320 – 174,496 190,816 80% Suzhou Suzhou Lumu Heaven Billow (ࢬ) 37,963 4,105 – – 4,105 51% Suqian Wutaishan Heyue Garden (ʞ̨ʆձ ) 139,947 12,419 – 242,657 255,076 20% Taizhou (इψ) Taixing Jinjiang Residence (इጳᗁ ִ) 56,230 6,289 – – 6,289 100% Tongxiang Wuzhen Joy Court (formerly: Wuzhen Longxiang Avenue Project) ( ಆ(Τ၈jढᕄᎲജɽ༸ධͦ)) 42,811 2,013 – – 2,013 100% Weifang Weifang Kuiwen North District Project (˖̏ධͦ) 202,107 39,516 93,430 390,251 523,197 100% Wenzhou Huichang River Prosperous Seasons (formerly: Huichang River B03 Project) (֙(Τ၈j ئB03ධͦ)) 25,721 12,538 – – 12,538 50% Wenzhou Huichang River West Lakeside Seasons (formerly: Huichang River B07 Project) (֙(Τ၈j ئB07ධͦ)) 19,967 12,771 – – 12,771 50% – 29 –
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Region Name of Project Area of Land Completed Total Gross Floor Area for Sale Rentable Area Held for Investment Total Gross Floor Area under Development Total Area of Land Bank The Group’s Interests (sq.m.) (sq.m.) (sq.m.) (sq.m.) (sq.m.) Wenzhou Guanghuaqiao Jiangbin ONE ( ᄿʷϪᏵONE) 21,191 446 – – 446 47% Wenzhou Yueqing Central District Junlan Hezhu ( ᆀʕːਜёᚆձഹ) 41,342 470 – – 470 34% Wuxi Hong Yang Sanwan Qing (̾ජɧຬ) 800,000 6,433 – – 6,433 100% Wuxi Huishan Sunrise Joy Court (ಆ) 85,122 3,122 – – 3,122 100% Wuxi Liyuan The Art of Shine (formerly: Liyuan Project) (݈ ( Τ၈jл๕ධͦ)) 39,021 3,779 – – 3,779 30% Wuxi Yangjian Platinum Residence (formerly: Yangjian Project) (ڒ ( Τ၈jϺφධͦ)) 63,050 1,775 – – 1,775 98% Wuxi Jade Seal (formerly: Wuxi Yangshan) (ජɘᖗ(Τ၈jೌ፼ ජʆ)) 28,166 8,286 – – 8,286 30% Wuhu Mengxi Road Shiguang Lane (Έ༁) 74,135 810 – – 810 40% Wuhan NK1 Hong Yang Tian Yue (formerly: Yin Yue Residence) (NK1ࣀ ( ִ)) 106,207 113,399 – – 113,399 95% Wuhan Wuhan Xiao Jun Shan Aesthetics of Life (formerly: Xiao Jun Shan) (ࠏ ৫( ʆ)) 128,129 26,494 – 270,292 296,786 50% Wuhan Wuhan Huangjia Hu Project (ಳධͦ) 25,290 – – 36,938 36,938 95% Xi’an Yan Liang Sunrise Joy Residence (ִࣀ) 24,649 4,838 – – 4,838 51% Xi’an Xi’an Jinghe New Town The Polaris Mansion (˂⭮) 95,017 – – 122,283 122,283 32% Xiangyang Prime Watery Court (ࢬ45,761 9,008 – – 9,008 95% Xiangyang Xiangzhou Park 1873 (ᑳψʮ1873) 93,846 9,472 – 135,060 144,532 50% – 30 –
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Region Name of Project Area of Land Completed Total Gross Floor Area for Sale Rentable Area Held for Investment Total Gross Floor Area under Development Total Area of Land Bank The Group’s Interests (sq.m.) (sq.m.) (sq.m.) (sq.m.) (sq.m.) Xiangyang Taiziwan Lu Yun Ting (ࢬ29,569 7,122 – – 7,122 100% Xuzhou Fengming Residence (ִ104,284 10,561 – – 10,561 76% Xuzhou Beautiful Scenery Residence (ִ26,646 2,214 – – 2,214 33% Xuzhou Metropolitan City in Xinyuan Avenue ( อʩɽ༸ɽேึ) 90,236 8,888 – – 8,888 100% Xuzhou Phoenix Hill Puyue Residence (ୋ) 59,770 4,596 – – 4,596 96% Xuzhou Dawu Park Avenue (ɽюʮɽ༸) 213,207 37,486 – 288,094 325,580 51% Xuzhou Dawu Shugang Road Project ( ɽюଯಥɽ༸ධͦ) 65,828 – – 182,340 182,340 51% Xuzhou Xuzhou Songshan Road One Sino Long (formerly: Songshan Road Project) (ߥ(Τ၈j ʆ༩ධͦ)) 142,721 258,200 – – 258,200 16% Xuzhou Xuzhou Damiao Heping Gongguan (formerly: Zhongtian Shiming Road Project) (ψɽᄽձ̻ʮ (Τ၈jʕ˂˻Τ༩ධͦ)) 55,614 21,057 – 21,021 42,078 51% Xuzhou Taoloushan Land Lot Project B ( ௗᅽʆB ή෯ධͦ) 25,157 13,754 – 16,900 30,654 50% Xuzhou Taoloushan Land Lot Project C ( ௗᅽʆC ή෯ධͦ) 24,514 – – 67,973 67,973 50% Yancheng Begonia View Residence in Yanzhen Road (ִ) 69,049 7,452 – – 7,452 33% Yancheng Dongjin Road Sunrise Joy Residence (ִࣀ) 103,847 8,713 – – 8,713 34% Yancheng Haikuo Road Fenglin Residence (ִ) 100,491 31,301 – – 31,301 35% Yancheng Yancheng Yandangshan Road Fengyue Residence (formerly: Yancheng Yandangshan Road Project) (ඨ ִ(ඨጺʆ ༩ධͦ)) 104,088 27,205 – 8,500 35,705 15% – 31 –
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Region Name of Project Area of Land Completed Total Gross Floor Area for Sale Rentable Area Held for Investment Total Gross Floor Area under Development Total Area of Land Bank The Group’s Interests (sq.m.) (sq.m.) (sq.m.) (sq.m.) (sq.m.) Yangzhou Yangzhou City Two Central Mansion (ࣀ) 23,234 11,977 – 10,587 22,564 67% Yizheng Yizheng 38 Yuedi Bay (ּ38చᝄ) 69,788 12,061 – – 12,061 50% Yizheng Yizheng 39 Yuejiang Bay (formerly: Yizheng 39) (ּ39Ϫᝄ (ּ39)) 66,358 7,722 10,000 – 17,722 50% Yizheng Yizheng Yuelong Bay (ᘡᝄ) 27,589 7,637 – – 7,637 100% Zhangjiagang Tang Qiao Xing Tang Residence (ִࡥ) 36,829 4,887 – – 4,887 50% Zhangjiagang Daxin Sunrise Joy Masterpiece Residence (ڒ) 47,706 6,147 – – 6,147 100% Zhangjiagang Jinfeng Beautiful in Ten (ᎀᔮɤԢᎀᔐ) 98,783 – – – – 16% Zhangjiagang Tang Qiao Cloud Mansion (formerly: Tang Qiao Fumin Road Project) ( ෨ථጘ(Τ၈j෨బ͏༩ ධͦ)) 40,317 9,804 – – 9,804 48% Zhangjiagang Zhangjiagang Chengdong Tangyue Royalty (formerly: Zhangjiagang Jiangcheng Road) (ಆ (༩)) 44,590 32,582 – – 32,582 45% Changsha Deyi in Times (Έ༁) 12,956 9,255 – – 9,255 70% Changsha Black Stone Sunrise Joy Residence (formerly: Black Stone Project) (ִࣀ(Τ၈jලͩධͦ)) 32,684 7,591 – – 7,591 100% Changsha Changsha Wanhou Residence (formerly: Wanhou Road) (ִڨ ( ༩)) 21,967 5,215 – – 5,215 100% Changsha Changsha Wayao Road Sunrise Joy Court (formerly: Wayao Road) (ಆ(Τ၈j ͙ᇉ༩)) 34,269 1,614 – 1,105 2,719 51% – 32 –
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Region Name of Project Area of Land Completed Total Gross Floor Area for Sale Rentable Area Held for Investment Total Gross Floor Area under Development Total Area of Land Bank The Group’s Interests (sq.m.) (sq.m.) (sq.m.) (sq.m.) (sq.m.) Changsha Changsha Xinglian Road Natural Bustling (formerly: Xinglian Road) (Ӎጳᑌ༩ථᖋረ(Τ၈j ጳᑌ༩)) 16,111 16,763 – 27,094 43,857 50% Zhenjiang Zhenjiang Zhoujiazhuang Jingkou Times (Έ) 16,168 1,479 – – 1,479 51% Zhenjiang Xiaoniu Hill No. 1 Four Seasons Magnificence (ശ) 20,536 2,228 – – 2,228 33% Zhenjiang Xiaoniu Hill No. 2 Four Seasons Magnificence (ശ) 28,920 5,123 – – 5,123 33% Zhengzhou Zhongmou Hong Yang Residence (ִ) 119,924 – – 261,447 261,447 95% Chongqing Taojia Times Billow (formerly: Cypress View • Seattle) (ࢬ ( ౻ • Гඩྡ)) 89,273 26,051 – 47,367 73,418 100% Chongqing Bishan Sunrise Joy Residence (formerly: Bishan 295) (ִࣀ(Τ၈j ᓴʆ295)) 106,259 24,353 – – 24,353 50% Chongqing Guan Yin Tang Sunrise Joy Residence (ִࣀ) 14,785 5,962 – – 5,962 49% Chongqing Beibei Utopia (formerly: Beibei Project) ( ̏Ⓨ⭮౻̨(Τ၈j̏Ⓨධͦ)) 109,540 11,553 – 8,094 19,647 49% Chongqing Chongqing Central Park Sunrise Joy Court (formerly: Central Park) (ಆ(Τ၈j ʕ̯ʮ)) 39,636 3,796 – – 3,796 100% Chongqing Chongqing Babin Road Glistening River (formerly: Babin Road Project) (ᅅˋᏵ༩ɓϜ౹Ϫ(Τ၈j ˋᏵ༩ධͦ)) 66,926 2,714 – 1,403 4,117 51% Chongqing Chongqing Jieshi Xiao Feng Jiang Nan 71 mu Project (ی 71लධͦ) 47,039 12,644 – – 12,644 24% Chongqing Chongqing Jieshi Xiao Feng Jiang Nan 141 mu Project (ی 141लධͦ) 94,061 – – 206,447 206,447 24% 11,443,835 2,105,616 1,034,882 3,834,262 6,974,761 3. Commercial Operations For the six months ended 30 June 2026, the Group’s sales revenue from commercial operations amounted to approximately RMB126.9 million, representing a decrease of 24.0% as compared to the corresponding period last year. It was due to the reduction of the rental prices of some stores. – 33 –
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4. Hotel Operations For the six months ended 30 June 2026, the Group has no revenue from hotel operations. It was due to suspension of hotel operations during the period. FINANCIAL REVIEW 1. Revenue For the six months ended 30 June 2026, the Group’s revenue amounted to approximately RMB700.3 million, representing a decrease of 74.2% from approximately RMB2,712.3 million for the same period last year. The revenue mainly included income generated from sales of properties and commercial operations, of which income generated from: (i) sales of properties decreased by 77.5% to approximately RMB573.4 million as compared to the same period last year, accounting for 81.9% of the total recognized revenue; and (ii) commercial operations decreased by 24.0% to approximately RMB126.9 million as compared to the same period last year. Details of recognized revenue are set out as follows: For the six months ended 30 June 2026 2025 Recognized Revenue Percentage of Total Recognized Revenue Recognized Revenue Percentage of Total Recognized Revenue Year-on-year change (RMB’000) (%) (RMB’000) (%) (%) Sales of properties 573,372 81.9 2,545,316 93.8 -77.5 Commercial operations 126,943 18.1 166,971 6.2 -24.0 Hotel operations – – – – – Total 700,315 100.0 2,712,287 100.0 -74.2 – 34 –
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2. Cost of sales For the six months ended 30 June 2026, the cost of sales of the Group was approximately RMB1,824.6 million, representing a decrease of 37.8% as compared to that of approximately RMB2,934.4 million for the same period last year. The decrease was primarily due to the decrease in the number of projects delivered during the period as compared with the corresponding period last year. During the period, the Group primarily delivered Weifang Kuiwen North District Project. 3. Gross Loss and Gross Loss Margin For the six months ended 30 June 2026, the Group’s gross loss was approximately RMB1,124.3 million, representing an increase of 406.2% from gross loss of approximately RMB222.1 million for the corresponding period last year. For the six months ended 30 June 2026, the gross loss margin was 160.5%, compared with a gross loss margin of 8.2% for the corresponding period last year, the increase in gross loss margin was mainly due to the amount of provisions for impairment of inventories for properties under development and completed properties held for sale during the period was higher than the corresponding period last year. 4. Changes in Fair Value of Investment Properties For the six months ended 30 June 2026, the Group did not recognized fair value gains or losses on investment properties. 5. Selling and Distribution Expenses For the six months ended 30 June 2026, the Group’s selling and distribution expenses amounted to approximately RMB10.9 million, representing a decrease of 85.8% from approximately RMB76.3 million for the corresponding period last year. Such decrease was due to the decrease in the launch of new property projects of the Group in the first half of 2026. 6. Administrative Expenses For the six months ended 30 June 2026, the Group’s administrative expenses amounted to approximately RMB50.9 million, representing a decrease of 16.9% from approximately RMB61.3 million for the corresponding period last year. Such decrease was mainly due to the Group’s further development in major metropolitan areas and core cities, and the strengthened control in administrative expenses and costs. – 35 –
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7. Share of Profits and Losses of Joint Ventures and Associates For the six months ended 30 June 2026, the Group’s share of losses of joint ventures and associates amounted to approximately RMB447.0 million (corresponding period of 2025: share of losses of RMB1,234.8 million) mainly due to the decrease in losses incurred by the joint ventures and associates held by the Group. 8. Finance Costs For the six months ended 30 June 2026, the Group’s finance costs expended amounted to approximately RMB136.3 million, representing a decrease of 74.8% from approximately RMB540.2 million for the corresponding period last year. Such change in finance costs was mainly due to an increase of the exchange gains on US$-denominated borrowings of the Group and a decrease of total borrowings during the Reporting Period. 9. Taxation The Group’s taxation included provisions for the corporate income tax and LAT net of deferred tax during the period. During the Reporting Period, the Group’s income tax amounted to approximately RMB20.3 million, representing a decrease of 73.0% from approximately RMB75.4 million for the corresponding period last year. During the Reporting Period, the provision made for LAT by the Group was approximately RMB61.5 million, as compared with approximately RMB269.6 million for the corresponding period last year. 10. Loss for the Reporting Period As a result of the aforementioned factors, the loss before taxation of the Group during the Reporting Period was approximately RMB1,676.1 million, representing a decrease of 15.2% from approximately RMB1,975.6 million for the corresponding period last year. During the Reporting Period, the net loss was RMB1,757.9 million, representing a decrease of 24.2% as compared with the corresponding period last year. – 36 –
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LIQUIDITY, FINANCE AND CAPITAL 1. Cash Position As at 30 June 2026, the Group’s cash and bank balances were approximately RMB0.46 billion (as at 31 December 2025: approximately RMB0.50 billion), of which, restricted cash amounted to RMB0.19 billion (as at 31 December 2025: RMB0.27 billion), and there was no pledged deposits (as at 31 December 2025: RMB0.02 billion). 2. Borrowings and Pledged Assets As at 30 June 2026, the Group’s total borrowings (including interest-bearing bank and other borrowings and senior notes) amounted to approximately RMB20.01 billion (as at 31 December 2025: approximately RMB20.47 billion), of which, interest-bearing bank and other borrowings were approximately RMB10.04 billion (as at 31 December 2025: approximately RMB10.06 billion) and senior notes were approximately RMB9.98 billion (as at 31 December 2025: approximately RMB10.40 billion). The Group’s total borrowings were repayable as follows: 30 June 31 December 2026 2025 RMB’000 RMB’000 Interest-bearing bank and other borrowings: Repayable within one year or on demand 7,519,708 7,052,231 Repayable in the second year 929,224 911,672 Repayable in the third to fifth years, inclusive 1,334,000 1,793,952 Repayable beyond five years 252,500 306,800 Sub-total 10,035,432 10,064,655 Senior notes: Repayable on demand 9,977,969 10,404,055 Total borrowings 20,013,401 20,468,710 – 37 –
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As at 30 June 2026, except for the borrowings in the amount of RMB11,411.9 million (as at 31 December 2025: RMB11,787.3 million) denominated in US$, the remaining borrowings of the Group were denominated in RMB. As at 30 June 2026, except for certain bank and other borrowings of RMB4,444.9 million (as at 31 December 2025: RMB4,386.2 million) with fixed interest rates, all of the Group’s bank and other borrowings bear interest at floating interest rates. As at 30 June 2026, assets with an aggregate value of approximately RMB14,147.6 million (as at 31 December 2025: approximately RMB14,859.9 million) have been pledged to banks and other financial institutions to secure the credit facilities granted to the Group and its joint ventures and associates. 3. Gearing Ratio As at 30 June 2026, the Group’s net gearing ratio (total borrowings less cash and bank balances divided by total equity) was approximately -13,576.5%, as compared with approximately 1,003.0% as at 31 December 2025. As at 30 June 2026, the Group’s debt to asset ratio (total debts divided by total assets) was approximately 100.3%, as compared with approximately 96.1% as at 31 December 2025. As at 30 June 2026, the Group’s current ratio (current assets divided by current liabilities) was approximately 0.70 times, as compared with approximately 0.76 times as at 31 December 2025. As at 30 June 2026, cash to short-term debt ratio (cash and bank balances divided by short- term borrowings) was approximately 0.03 times, as compared with approximately 0.03 times as at 31 December 2025. 4. Capital and Property Development Expenditure Commitments As at 30 June 2026, the Group had capital and property development expenditure commitments contracted but not provided for of approximately RMB3.36 billion (as at 31 December 2025: approximately RMB2.76 billion). – 38 –
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CORPORATE GOVERNANCE/OTHER INFORMATION 1. Material Acquisitions and Disposals There was no material acquisition and disposal of subsidiaries, associates or joint ventures by the Group during the Reporting Period. 2. Employment and Remuneration Policies As of 30 June 2026, the Group had 376 employees in total, of which 219 employees were engaged in the real estate development business and 157 employees were engaged in the commercial property operations. The emolument of the employees of the Group is mainly determined based on the prevailing market level of remuneration and the individual performance and work experience of the employees. Bonuses are also distributed based on the performance of the employees. The Group provides employees with career development opportunities and considers if their remuneration should be raised or if they should be promoted with reference to their individual performance and potential. Other benefits provided by the Group include medical benefits and specialized training schemes. 3. Events after the Reporting Period There is no significant subsequent event undertaken by the Company after 30 June 2026. 4. Interim Dividend The Board has resolved that the Company will not declare any interim dividend for the Reporting Period (2025 interim: Nil). 5. Purchase, Sale or Redemption of Any of the Company’s Listed Securities During the Reporting Period, there was no purchase, sale or redemption by the Group of any of the Company’s listed securities (including sale of treasury shares). As of the end of Reporting Period, no treasury shares were held by the Company. – 39 –
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6. Currency Risk The Group primarily operates in the PRC and the majority of the Group’s transactions were denominated and settled in RMB. 7. Material Legal and Litigation Matters On 14 February 2024, a winding-up petition (the “Petition”) was filed against the Company at the High Court of the Hong Kong Special Administrative Region (“High Court”), in connection with a financial obligation in the amount of not less than USD228,500,000, being the amount of payment under the USD200,000,000 9.50% guaranteed notes due 2023 issued by the Company. On 18 March 2026, the High Court has approved the adjournment application jointly proposed by The Bank of New York Mellon, London Branch, the petitioner, and the Company. The hearing of the Petition is now adjourned to 5 October 2026. As at the date of this announcement, no winding-up order has been made by the High Court against the Company. The Company is grateful to the creditors for their continuing support and engagement and will continue to progress the consensual restructuring in an orderly manner. For details, please refer to the announcements of the Company dated 16 February 2024, 13 March 2024, 16 September 2024, 26 March 2025, 16 September 2025 and 19 March 2026. 8. Corporate Governance The Group is committed to implementing high standards of corporate governance to safeguard the interests of the shareholders of the Company and enhance the corporate value as well as the responsibility commitments. The Company has adopted the Corporate Governance Code (the “CG Code”) as set out in Appendix C1 to the Rules Governing the Listing of Securities on the Hong Kong Stock Exchange (the “Listing Rules”) as its own code of corporate governance. To the knowledge of the Directors, except for code provision C.2.1 of the CG Code, the Company has complied with all applicable code provisions set out in Part 2 of the CG Code during the Reporting Period, and the Directors will use their best endeavors to procure the Company to continue to comply with the CG Code. – 40 –
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Under code provision C.2.1 of the CG Code, the roles of chairman and chief executive officer should be separated and performed by different individuals. During the Reporting Period, the roles of chairman and chief executive officer of the Company were not separated and Mr. Zeng Huansha is currently taking the roles of chairman of the Board and chief executive officer of the Company. Taking into account that Mr. Zeng Huansha has extensive experience in the real estate industry, the Board considered that the roles of chairman and chief executive officer being performed by Mr. Zeng Huansha will enable more effective business planning and implementation of the Group. In order to maintain good corporate governance and fully comply with the provisions of the CG Code, the Board will regularly review the necessity to appoint different individuals to perform the roles of chief executive officer separately. 9. Model Code for Securities Transactions by Directors of Listed Issuers The Company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers (the “Model Code”) set out in Appendix C3 to the Listing Rules as its code for dealing in securities of the Company by the Directors. After specific enquiries made to all Directors, the Directors have confirmed their compliance with the required standards set out in the Model Code throughout the Reporting Period. 10. Review of Interim Results by the Audit Committee The Board has established its audit committee with written terms of reference in compliance with Rules 3.21 and 3.22 of the Listing Rules and code provision D.3 in Part 2 of the CG Code. The primary duties of our audit committee are to review and monitor the Group’s financial reporting process, risk management and internal control system, to provide recommendation and advice to the Board, and to perform other duties and responsibilities as may be assigned by the Board. Our audit committee consists of three members, including Mr. Leung Yau Wan John, Mr. Lee Kwok Tung Louis and Mr. Au Yeung Po Fung. Our audit committee is chaired by Mr. Leung Yau Wan John, who possesses appropriate professional qualifications. Our audit committee has reviewed the Company’s unaudited condensed consolidated interim results for the six months ended 30 June 2026 and confirmed that it has complied with all applicable accounting principles, standards and requirements, and made sufficient disclosures. Our audit committee has also discussed the matters of financial reporting. – 41 –
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11. Publication of Interim Results and 2026 Interim Report on the Websites of the Hong Kong Stock Exchange and the Company This announcement is published on the website of the Hong Kong Stock Exchange (www.hkexnews.hk) and the website of the Company (www.rsunproperty.hk). The interim report of the Company for the six months ended 30 June 2026 will be provided to the Company’s shareholders and posted on the above websites in due course. On behalf of the Board Redsun Properties Group Limited Zeng Huansha Chairman Hong Kong, 27 August 2026 As of the date of this announcement, the executive Directors are Mr. Zeng Huansha and Ms. Hu Fang; and the independent non-executive Directors are Mr. Lee Kwok Tung Louis, Mr. Leung Yau Wan John and Mr. Au Yeung Po Fung. – 42 –