Earnings release
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– 1 – 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. Ronshine China Holdings Limited ʮ̡ (Incorporated in the Cayman Islands with limited liability) (Stock code: 3301) ANNOUNCEMENT OF INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2026 FINANCIAL HIGHLIGHTS • Contracted sales amounted to approximately RM B1,293.88 million, decreased by approximately 38.62% as compared with the six months ended 30 June 2025. • Total revenue amounted to approximately RM B798.91 million, decreased by approximately 62.35% as compared with the six months ended 30 June 2025. • Gross profit amounted to approximately RMB47.02 million, representing a decrease of 91.67% as compared with the gross profit of approxima tely RM B564.56 million for the six months ended 30 June 2025. • Loss for the Period amounted to approximately RMB1,915.48 million, as compared with the loss for the period of approximately RM B1,704.13 million for the six months ended 30 June 2025. • Loss for the Period attributable to owners of the Company amounted to approximately RMB1,565.11 million, as compared with the loss for the period attributable to owners of the Company of approximately RMB1,829.16 million for the six months ended 30 June 2025. • Gearing ratio was -3.04 as at 30 June 2026 as compared with -5.19 as at 31 December 2025. INTERIM RESULTS The board (the “ Board”) of directors (the “ Directors ”) of Ronshine China Holdings Limited (the “ Company ”) hereby announces the unaudited interim consolidated results of the Company and its subsidiaries (the “ Group ”) for the six months ended 30 June 2026 (the “Period ”).
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– 2 – CONDENSED CONSOLIDATED INCOME STATEMENT Six months ended 30 June 2026 2025 Notes RMB’000 RMB’000 (Unaudited) (Unaudited) Revenue 6 798,908 2,121,936 Cost of sales (751,892) (1,557,378) Gross profit/(loss) 47,016 564,558 Selling and marketing costs (63,043) (74,749) Administrative expenses (663,282) (658,023) Other income 12,414 63,292 Other gains/(losses) – net (480,832) (37,137) Operating profit/(loss) (1,147,727) (142,059) Finance income 7,947 13,563 Finance costs (709,842) (1,257,360) Finance costs – net 7 (701,895) (1,243,797) Share of net profit/(loss) of investments accounted for using the equity method (6,178) (6,178) Profit/(loss) before income tax (1,855,800) (1,392,034) Income tax expenses 8 (59,684) (312,098) Profit/(loss) for the period (1,915,484) (1,704,132) Profit/(loss) for the period attributable to: – Owners of the Company (1,565,109) (1,829,156) – Non-controlling interests (350,375) 125,024 (1,915,484) (1,704,132) Loss per share for loss attributable to owners of the Company (expressed in RMB per share) 9 – Basic (0.93) (1.09) – Diluted (0.93) (1.09)
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– 3 – CONDENSED CONSOLIDATED COMPREHENSIVE INCOME STATEMENT Six months ended 30 June 2026 2025 RMB’000 RMB’000 (Unaudited) (Unaudited) Gains/(losses) for the period (1,915,484) (1,704,132) Other comprehensive income – – Total comprehensive gains/(losses) for the period (1,915,484) (1,704,132) Total comprehensive gains/(losses) for the period attributable to: – Owners of the Company (1,565,109) (1,829,156) – Non-controlling interests (350,375) 125,024 (1,915,484) (1,704,132)
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– 4 – CONDENSED CONSOLIDATED BALANCE SHEET 30 June 31 December 2026 2025 RMB’000 RMB’000 Notes (Unaudited) (Audited) ASSETS Non-current assets Property, plant and equipment 899,452 927,836 Investment properties 11,526,500 11,526,500 Right-of-use assets 342,132 348,807 Intangible assets 1,606 1,606 Investments accounted for using the equity method 5,635,136 5,657,245 Financial assets at fair value through profit or loss 420,504 421,160 Total non-current assets 18,825,330 18,883,154 Current assets Properties under development 21,470,550 21,863,958 Completed properties held for sale 11,783,081 13,114,604 Contract assets and contract costs 576,270 577,707 Trade and other receivables and prepayments 10 17,151,535 17,630,982 Amounts due from related parties 2,698,885 2,630,146 Prepaid taxation 3,162,646 3,789,200 Financial assets at fair value through profit or loss 29,940 95,428 Term deposits 92,981 99,853 Restricted cash 871,027 1,393,107 Cash and cash equivalents 1,368,933 1,098,822 Total current assets 59,205,848 62,293,807 Total assets 78,031,178 81,176,961 EQUITY Share capital 15 15 Share premium 3,082,681 3,082,681 Other reserves (26,360,068) (24,794,959) Equity attributable to owners of the Company (23,277,372) (21,712,263) Non-controlling interests 12,233,016 14,967,114 Total (deficit)/equity (11,044,356) (6,745,149)
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– 5 – 30 June 31 December 2026 2025 RMB’000 RMB’000 Notes (Unaudited) (Audited) LIABILITIES Non-current liabilities Borrowings 2,769,000 4,080,402 Deferred tax liabilities 1,351,140 1,351,140 Total non-current liabilities 4,120,140 5,431,542 Current liabilities Borrowings 33,185,269 33,513,645 Contract liabilities 11,459,997 11,122,804 Trade and other payables 11 27,936,615 25,875,386 Amounts due to related parties 6,404,292 6,007,095 Current tax liabilities 5,969,221 5,971,638 Total current liabilities 84,955,394 82,490,568 Total liabilities 89,075,534 87,922,110 Total equity and liabilities 78,031,178 81,176,961 CONDENSED CONSOLIDATED BALANCE SHEET
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– 6 – NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 1 GENERAL INFORMATION Ronshine China Holdings Limited (the “ Company ”) was incorporated in the Cayman Islands on 11 September 2014 as an exempted company with limited liability under the Companies Act, Cap. 22 of the Cayman Islands. The address of its registered office is Cricket Square, Hutchins Drive, P.O. Box 2681, Grand Cayman, KY1-1111, Cayman Islands. The Company’s principal activity is investment holding. The Company and its subsidiaries (together the “ Group ”) are principally engaged in property development business in the People’s Republic of China (the “ PRC”). The ultimate holding company of the Company is TMF (Cayman) Limited as trustee of the Ou Family Trust and the ultimate controlling shareholder of the Company is Mr. Ou Zonghong (“ Mr. Ou ”). The Company’s shares were listed on the Main Board of The Stock Exchange Hong Kong Limited (the “Stock Exchange ”) on 13 January 2016. These condensed consolidated financial statements are presented in Renminbi (“ RMB”), unless otherwise stated. 2 BASIS OF PREPARATION The condensed consolidated financial statements have been prepared in accordance with Hong Kong Accounting Standard 34 (“ HKAS 34 ”) “Interim Financial Reporting” issued by the Hong Kong Institute of Certified Public Accountants as well as the applicable disclosure requirements of Appendix D2 to the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited. Going concern basis As of 30 June 2026, the Group incurred a loss for the period of approximately RMB1,915,484,000. As at 30 June 2026, the Group recorded net current liabilities of RMB25,749,546,000, and the Group’s current portion of borrowings amounted to RMB33,185,269,000, while its cash and cash equivalents (excluding restricted cash) amounted to RMB1,461,914,000. Since the second half of 2021, the business environment of China’s real estate industry has undergone major changes, with increased difficulties in financing confronted by real estate companies. Under such circumstances, a number of real estate companies have successively encountered debt repayment issues, indicating accelerated deterioration of the industry’s business environment. As a result of the impact brought by the above factors, the Group takes longer time than expected to realise cash from its properties and/or to obtain cash from external financing to meet its loan repayment obligations. Although the Company has endeavoured to mitigate the impact of various unfavourable factors on its operations, due to the prolonged duration of this situation, the Group’s operation and cash position have been significantly affected, and its ability to perform future obligations is subject to uncertainty. As of 30 June 2026, the Company has not paid the principal amounts and/or interests of the senior notes due 25 October 2022 (ISIN: XS1976760782 and Common Code: 197676078) (the “ October 2022 Notes ”), due 22 January 2023 (ISIN:XS2031469732 and Common Code: 203146973) (the “ January 2023 Notes ”), due 9 June 2023 (ISIN: XS2090949160 and Common Code: 209094916) (the “ June 2023 Notes ”), due 25 December 2023 (ISIN: X S2189303873 and Common Code: 218930387) (the “ December 2023 Notes ”), due 5 August 2024 (ISIN: XS2211514885 and Common Code: 221151488) (the “ August 2024 Notes ”) and due 25 January 2025 (ISIN: XS2290308845 and Common Code: 229030884) (the “ January 2025 Notes ”). The total outstanding principal amount of these senior notes is approximately RMB14,040,486,000.
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– 7 – If such non-payment continues, holders of at least 25% of the aggregate principal amount of the relevant outstanding senior notes at that time may, by written notice to the Company or the trustee, require the Company to pay the principal and accrued interest of the relevant outstanding senior notes immediately. As of the date of approval of these condensed consolidated financial statements, the Company has not received any notice regarding accelerated repayment from the relevant trustee or holders of the relevant senior notes. In addition, as at 30 June 2026, the Group did not repay certain borrowings of RM B35,669,259,000 according to their scheduled repayment dates. As a result, as at 30 June 2026, borrowings with the aggregate principal amount of RMB27,098,385,000 had become default. If the Group fails to perform the obligations of repaying the debts due and cannot agree on a consensual solution to the corresponding indebtedness with creditors in a timely manner, it may cause the relevant creditors to demand accelerated repayment of the obligations of the relevant debts or take enforcement actions. The above events or conditions indicate the existence of a material uncertainty which may cast significant doubt on the Group’s ability to continue as a going concern. In view of the aforesaid, the directors of the Company (the “ Directors ”) have given careful consideration to the future liquidity and performance of the Group and its available sources of financing in assessing whether the Group will have sufficient financial sources to continue as a going concern. The following plans and measures are formulated to mitigate the liquidity pressure and to improve the financial position of the Group: (i) the G roup is actively negotiating with several existing financial institutions on the renewal of certain borrowings. Subsequent to 30 June 2026, the Group has also been negotiating with various banks and financial institutions to secure new sources of financing; (ii) the Group will continue to implement measures to accelerate the pre-sales and sales of its properties under development and completed properties, and to speed up the collection of outstanding sales proceeds and other receivables; (iii) the Group will continue to take active measures to control administrative costs and maintain containment of capital expenditures; and (iv) the Group has engaged Haitong International Capital Limited as its financial advisor for overseas debt management to initiate relevant preliminary work, and intends to explore various feasible solutions with overseas creditors so as to seek a holistic solution to the relevant debts. The Directors have reviewed the Group’s cash flow projections prepared by the 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 above mentioned 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 continue to adopt the going concern basis of accounting in preparing these condensed consolidated financial statements. Notwithstanding the above, given the volatility of the property sector in China and the uncertainties to obtain continuous support by the banks and the Group’s creditors, material uncertainties exist as to whether management of the Company will be able to achieve its plans and measures as described above. Should the going concern assumption be inappropriate, adjustments may have to be made to write down the values of assets to their recoverable amounts, to provide for any further liabilities that might arise, and to reclassify non-current assets and non-current liabilities as current assets and current liabilities, respectively. The effects of these adjustments have not been reflected in these condensed consolidated financial statements.
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– 8 – 3 PRINCIPAL ACCOUNTING POLICIES The condensed consolidated financial statements have been prepared on the historical cost basis, except for financial assets at fair value through profit or loss, derivative financial instruments and investment properties, which are measured at fair value. The accounting policies and the methods of computation used in the condensed consolidated financial statements for the six months ended 30 June 2026 are the same as those presented in the Group’s annual financial statements for the year ended 31 December 2025, except as described below. Application of amendments to HKFRSs In the current interim period, the Group has applied the following amendments to HKFRSs for the first time for the preparation of the Group’s condensed consolidated financial statements: Amendments to HKFRS 9 and HKFRS 7 Amendments to the Classification and Measurement of Financial Instruments Amendments to HKFRS 9 and HKFRS 7 Contracts Referencing Nature-dependent Electricity Amendments to HKFRS Accounting Standards Annual Improvements to HKFRS Accounting Standards – Volume 11 The application of the revised standards in the current interim period had no material impact on the amount reported in these condensed consolidated financial statements and/or on the disclosures set out in these condensed consolidated financial statements. 4 CRITICAL ESTIMATES AND JUDGEMENTS The preparation of the Group’s condensed consolidated financial statements requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expense. Actual results may differ from these estimates. In preparing the condensed consolidated financial statements, the significant judgements made by management in applying the Group’s accounting policies and the key sources of estimation uncertainty were the same as those applied to the consolidated financial statements for the year ended 31 December 2025. 5 SEGMENT INFORMATION The executive Directors have been identified as the chief operating decision maker. Management has determined the operating segments based on the reports reviewed by the executive Directors, which are used to allocate resources and assess performance. The Group is principally engaged in property development in the PRC. Management reviews the operating results of the business as one segment to make decisions about resources to be allocated. Therefore, the executive Directors regard that there is only one segment which is used to make strategic decisions. Revenue and profit after income tax are the measures reported to the executive Directors for the purpose of resources allocation and performance assessment. The major operating entities of the Group are domiciled in the PRC. All of the Group’s revenue are derived in the PRC for the six months ended 30 June 2026 (six months ended 30 June 2025: same). As at 30 June 2026, except for parts of term deposits and financial assets at fair value through profit or loss, other assets of the Group were located in the PRC (31 December 2025: same). There was no revenue derived from a single external customer accounting for 10% or more of the Group’s revenue for the six months ended 30 June 2026 (six months ended 30 June 2025: same).
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– 9 – 6 REVENUE Revenue of the Group for the six months ended 30 June 2026 is as follow: Six months ended 30 June 2026 2025 RMB’000 RMB’000 (Unaudited) (Unaudited) Revenue from contracts with customers: Revenue from sales of properties – Recognised at a point in time 610,379 1,910,186 Revenue from construction services, hotel operations and others: – Recognised at a point in time 84,500 126,421 – Recognised over time – – Revenue from other sources – rental income 104,029 85,329 798,908 2,121,936 7 FINANCE (COSTS)/INCOME – NET Six months ended 30 June 2026 2025 RMB’000 RMB’000 (Unaudited) (Unaudited) Finance income – Interest income from bank deposits 7,947 13,563 7,947 13,563 Finance costs – Net foreign exchange gains/(losses) 549,399 70,638 – Interest expenses of borrowings (1,277,066) (1,340,374) – Less: capitalised interest 17,825 12,376 709,842 (1,257,360) Finance costs – net (701,895) (1,243,797)
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– 10 – 8 INCOME TAX EXPENSES Six months ended 30 June 2026 2025 RMB’000 RMB’000 (Unaudited) (Unaudited) Current income tax: PRC corporate income tax 49,527 148,923 Land appreciation tax (“ LAT”) 10,157 163,175 59,684 312,098 Deferred income tax PRC corporate income tax – – 59,684 312,098 PRC corporate income tax The income tax provision of the Group in respect of operations in Mainland China has been calculated at the applicable tax rate on the estimated assessable profits for the six months ended 30 June 2026 and 2025, based on the existing legislation, interpretations and practices in respect thereof. The corporate income tax rate applicable to the group entities located in Mainland China is 25% according to the Corporate Income Tax Law of the PRC (the “ CIT Law ”) effective on 1 January 2008. PRC LAT Pursuant to the requirements of the Provisional Regulations of the PRC on LAT effective on 1 January 1994, and the Detailed Implementation Rules on the Provisional Regulations of the PRC on LAT effective on 27 January 1995, all income from the sale or transfer of state-owned land use rights, buildings and their attached facilities in the PRC is subject to LAT at progressive rates ranging from 30% to 60% of the appreciation value, with an exemption provided for sales of ordinary residential properties if their appreciation values do not exceed 20% of the sum of the total deductible items. The Group has made provision of LAT for sales of properties according to the aforementioned progressive rates. PRC dividend withholding income tax Pursuant to the Detailed Implementation Regulations for Implementation of the Corporate Income Tax Law issued on 6 December 2007, dividends distributed from the profits generated by the PRC companies after 1 January 2008 to their foreign investors shall be subject to this withholding income tax of 10%, a lower 5% withholding income tax rate may be applied when the immediate holding companies of the PRC subsidiaries are incorporated in Hong Kong and fulfil the requirements to the tax treaty arrangements between the PRC and Hong Kong. The Group has not accrued any withholding income tax for these undistributed earnings of its PRC subsidiaries as the Group does not have a plan to distribute these earnings from its PRC subsidiaries. Hong Kong profits tax The applicable Hong Kong profits tax rate is 16.5% for the six months ended 30 June 2026 (six months ended 30 June 2025: 16.5%). Hong Kong profits tax has not been provided as the Group did not have any assessable profit for the six months ended 30 June 2026 (six months ended 30 June 2025: nil).
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– 11 – Overseas income tax The Company was incorporated in the Cayman Islands as an exempted company with limited liability under the Companies Act, Cap. 22 of the Cayman Islands and is exempted from Cayman Islands income tax. The Company’s direct subsidiary in the British Virgin Islands (the “ BVI”) was incorporated under the Business Companies Act of the BVI and is exempted from BVI income tax. 9 LOSS PER SHARE 9.1 Basic loss per share Basic loss per share is calculated by dividing the loss attributable to owners of the Company by the weighted average number of ordinary shares in issue during the six months ended 30 June 2026 and 2025. Six months ended 30 June 2026 2025 RMB’000 RMB’000 (Unaudited) (Unaudited) Loss attributable to owners of the Company (RMB’000) (1,565,109) (1,829,156) Weighted average number of ordinary shares in issue (in thousand) 1,683,431 1,683,431 Basic loss per share (RMB per share) (0.93) (1.09) 9.2 Diluted loss per share For the six months ended 30 June 2026 and 2025, there is no potential ordinary share issued. Accordingly, diluted loss per share for the six months ended 30 June 2026 and 2025 are the same as the basic loss per share. The Company has not repurchased and cancelled its own ordinary shares during the six month ended 30 June 2026 (for the six month ended 30 June 2025: nil).
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– 12 – 10 TRADE AND OTHER RECEIVABLES AND PREPAYMENTS 30 June 2026 31 December 2025 RMB’000 RMB’000 (Unaudited) (Audited) Trade receivables (note (a)) 108,192 84,681 Other receivables – Amounts due from minority interests 11,794,965 11,798,386 – D eposits for acquisition of land use rights and property development projects 4,797,484 4,822,976 – Other amounts due from third parties 2,152,835 2,220,676 – Deposits for construction contracts 127,379 131,536 – Others 123,221 198,901 Less: loss allowance (7,122,414) (7,204,038) 11,873,470 11,968,437 Prepayments – Prepaid value added tax and other taxes 4,861,677 5,000,813 – Others 308,196 577,051 5,169,873 5,577,864 Total 17,151,535 17,630,982 (a) Trade receivables mainly arose from sales of properties. Proceeds in respect of sale of properties is settled in accordance with the terms stipulated in the sale and purchase agreements. 30 June 2026 31 December 2025 RMB’000 RMB’000 (Unaudited) (Audited) Within one year 29,050 56,946 Over one year 79,142 27,735 Total 108,192 84,681 These trade receivables relate to a number of independent customers for whom there is no significant financial difficulty. Management does not expect any credit loss for these receivables.
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– 13 – 11 TRADE AND OTHER PAYABLES 30 June 2026 31 December 2025 RMB’000 RMB’000 (Unaudited) (Audited) Trade payables (note (a)) 8,083,934 7,441,903 Note payables 139,798 155,513 Other payables – Amounts due to non-controlling interests 4,086,677 3,800,450 – Other taxes payable 4,052,902 3,820,898 – Interests payable 9,845,440 8,969,572 – Deposits received from property purchasers 270,763 354,344 – Dividend payable 8,301 27,539 – Deposits from contractors and suppliers 1,050,466 909,786 – Accrued payroll 76,501 81,942 – Provisions 234,194 234,194 – Others 87,639 79,245 Total 27,936,615 25,875,386 (a) The ageing analysis of the trade payables is as follows: 30 June 2026 31 December 2025 RMB’000 RMB’000 (Unaudited) (Audited) Within one year 1,695,801 605,451 Over one year 6,388,133 6,836,452 Total 8,083,934 7,441,903 (b) Other payables of approximately RM B234,194,000 (31 December 2025: RMB234,194,000) are interest bearing and repayable within one year from 30 June 2026. 12 DIVIDEND The Directors do not recommend payment of any interim dividend for the six months ended 30 June 2026 (six months ended 30 June 2025: nil).
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– 14 – OVERVIEW AND PROSPECTS Market Review In the first half of 2026, China’s national economy withstood internal and external pressures to achieve steady growth, with gross domestic product (GDP) rising by 4.7% year-on-year. New quality productive forces were cultivated and expanded at an accelerated pace, and the momentum of high-quality development was continuously reinforced. With regard to the real estate sector, driven by the combined effects of proactive contraction on the supply side and gradual recovery on the demand side, the new housing market, although still hovering at historically low levels, saw its year-on-year decline narrowing significantly compared with the same period last year. During the Period, the national real estate market continued its protracted adjustment. Underpinned by a series of supportive policies aime d at stabilising the property market, the market as a whole exhibited characteristics of bottoming out and consolidation, structural recovery, and intensifying regional divergence. The industry is accelerating its transition from the traditional incremental development model to an existing property operation model. Positive signs of stabilisation have emerged in selected markets, yet the foundation for an overall recovery remains fragile. At the top policy level, the authorities have explicitly called for “accelerating the repair of household balance sheets”, which fully underscores the significance of stabilising housing prices, expectations and the market, and points the way for local governments to further stabilise the real estate market. During the first half of the year, local governments intensively introduced optimisation and adjustment measures. As a result, initiatives like the continuous strengthened housing provident fund support and home purchase subsidies have been effectively implemented to facilitate market recovery. Overall, the real estate market remains in a bottoming-out and recovery phase, with prominent structural characteristics: the scale of development investment and new construction projects continued to contract, and funding pressures on real estate enterprises have yet to be fully alleviated; new home sales remained under pressure overall, while transactions in the secondary housing market became more active; housing prices showed obvious stratification, with first-tier cities remaining relatively resilient, second- and third-tier cities still under adjustment, and third- and fourth-tier cities facing considerable destocking pressure. Data indicates that household income expectations and consumer confidence are still in the process of recovery. Factors such as uncertainty in the macroeconomic environment and weak household expectations continue to constrain the release of housing demand to a certain extent. Business Review The Group maintained its focus on the Yangtze River Delta and the core areas of the West Coast of the Taiwan Strait so as to consolidate the advantages of its strategic regional layout, while striving to strengthen its whole-process operations and management to ensure successful project development and on-time delivery in all aspects. During the Period, the Group’s contracted sales amounted to approximately RM B1,293.88 million, representing a year-on-year decrease of approximately 38.62%, with c ontracted gross floor area (“ GFA”) of approximately 113,105 sq.m. and average contracted selling price of approximately RMB11,440 per sq.m. During the Period, a number of the Group’s projects earned themselves a good reputation in the market and the recognition of the property owners for their outstanding products and services.
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– 15 – In respect of land reserves, the Group adhered to a steady and prudent development principle, remaining focused on its presence in core first- and second-tier cities. As at 30 June 2026, the Group had a total of 206 projects nationwide with a total land reserve of approximately 16,259,599.62 sq.m. Among them, the land reserves in the first- and second-tier cities accounted for approximately 85.16%. In the future, the Group will continue to deepen the cultivation of high-quality projects in core cities and commit to improving operational efficiency, so as to enhance its brand influence continuously. During the year, the government successively introduced a number of supportive policies for the real estate industry, yet the relevant implementation rules still need to be further clarified and take effect. Therefore, the current predicament of declining sales across the market and funding pressures on the whole industry is yet to be fundamentally alleviated. In such a challenging situation, the Group continued to adhere to its prudent development strategy and strengthen cash flow manageme nt. As at 30 June 2026, the ba lance of the Group’s interest- bearing liabilities amounted to RMB35.9 billion. The Group took proactive steps in debt management, maintained a high degree of information transparency, and consistently maintained smooth communication with the market through voluntary announcements, investor engagement and other means. Up to now, the Group has completed its onshore corporate bond restructuring, and has appointed Haitong International Capital Limited as its financial advisor for overseas debt management to advance the relevant preliminary work in an orderly manner. Meanwhile, the Group adopted a number of measures to ensure operational stability and liquidity security, including but not limited to enhancing its sales and cash collection efforts, diversifying financing channels, strictly controlling operating costs, negotiating with financial institutions for extensions of some existing debts, and prudently advancing the disposal of certain assets. Faced with a complex market environment, the Group has always remained committed to the quality of its products and services. Under the call of “Guaranteeing Delivery of Real Estate Development Projects and Ensuring People’s Livelihood”, the Group has earnestly honoured its commitments to homeowners and made every effort to advance high-quality delivery. During the Period, the Group has completed the delivery of a number of projects, including but not limited to the Hangzhou Aoshi Mansion (ڒTaiyuan City of Times (ࡡ ۬Hangzhou Poly He Guang Chen Yue (лձΈྡྷ⭮ ), Junlan Mansion ( ё ڒand Zhengzhou Jiangwancheng (۬In addition, the Group has been actively promoting the development of its environmental, social and governance (ESG) system, earnestly fulfilling its corporate social responsibility, and achieving steady and sustainable development.
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– 16 – Prospects Looking ahead to the second half of the year, the real estate market is expected to continue its trend of structural recovery. While the market has developed the fundamental conditions for halting decline and achieving stabilisation, a sustained recovery will require continued efforts from multiple stakeholders, supported by ongoing policy measures and the coordinated implementation of complementary initiatives. To sum up, the industry is expected to remain in a phase of deep adjustment and optimisation in the second half of the year. From a positive perspective, the continued introduction of supportive policies has provided a solid foundation for market stabilisation. Following a prolonged period of adjustment, the industry is gradually entering a phase of self-recovery, and the virtuous interaction between policy measures and the market has been further strengthened. At the same time, market price expectations have improved markedly, and the concerns arising from the prolonged decline in property prices have largely subsided. Looking forward, the Group will continue to deepen its layout in the Yangtze River Delta, the West Coast of the Taiwan Strait and other advantageous regions, continuously strengthen its core competitiveness through in-depth layout, remain committed to product quality and service enhancement, make determined efforts to ensure on-time property delivery, actively seize market opportunities and respond to various challenges, and make unremitting efforts to improve people’s living environment and create happy lives.
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– 17 – MANAGEMENT DISCUSSION AND ANALYSIS Summary of operating results For the six months ended 30 June Change in percentage 2026 2025 Contracted sales Contracted sales amount (RMB’000) (1) 1,293,881 2,108,005 (38.62)% Contracted gross floor area (sq.m.) 113,105 187,577 (39.70)% Average unit price of contracted sales (RMB/sq.m.) 11,440 11,238 1.80% Property delivered Revenue from delivery of properties (RMB’000) 610,379 1,910,186 (68.05)% Delivered gross floor area (sq.m.) 52,197 132,442 (60.59)% Recognised average selling price of properties delivered (RMB/sq.m.) 11,694 14,423 (18.92)% Revenue (RMB’000) 798,908 2,121,936 (62.35)% Cost of sales (RMB’000) (751,892) (1,557,378) (51.72)% Gross profit/(loss) (RMB’000) 47,016 564,558 (91.67)% Other income and other gains or losses (RMB’000) (468,418) 26,155 (1,890.93)% Profit/(loss) before income tax (RMB’000) (1,855,800) (1,392,034) 33.32% Profit/(loss) for the period (RMB’000) (1,915,484) (1,704,132) 12.40% – attributable to owners of the Company (RMB’000) (1,565,109) (1,829,156) (14.44)% – attributable to non-controlling interests (RMB’000) (350,375) 125,024 (380.25)% Gross profit/(loss) margin (2) 5.89% 26.61% (77.88)% Net profit/(loss) margin (3) (239.76)% (80.31)% 198.55% Total assets (RMB’000) 78,031,178 96,171,368 (18.86)% Total liabilities (RMB’000) 89,075,534 91,503,606 (2.65)% Total equity (RMB’000) (11,044,356) 4,667,762 (336.61)% Capital and reserve attributable to owners of the Company (RMB’000) (23,277,372) (13,582,928) 71.37% Current ratio (4) 0.70 times 0.87 times (19.15)% Gearing ratio (5) (3.04) 7.56 (140.27)% Notes: (1) The amounts include the contracted sales amount from subsidiaries, associates and joint ventures of the Company. (2) The calculation of gross loss margin is based on gross loss divided by revenue and multiplied by 100%; and the calculation of gross profit margin is based on gross profit divided by revenue and multiplied by 100%. (3) The calculation of net profit/(loss) margin is based on profit/(loss) divided by revenue and multiplied by 100%. (4) The calculation of current ratio is based on current assets divided by current liabilities. (5) The calculation of gearing ratio is based on total borrowings less cash and bank balances and divided by total equity.
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– 18 – Property Development Contracted Sales For the six months ended 30 June 2026, the Group and its joint ventures and associates achieved contracted sales of approximately RM B1,293.88 million, representing a decline of approximately 38.62% compared with approximately RMB2,108.01 million for the six months ended 30 June 2025. This decrease was mainly attributable to the decrease in the total GFA of the Group’s contracted sales by approximately 39.70% from approximately 187,577.72 sq.m. for the six months ended 30 June 2025 to approximately 113,105 sq.m. for the six months ended 30 June 2026. The following table sets forth details of the contracted sales of the Group (including its joint ventures and associates) for the six months ended 30 June 2026: City Amount Percentage Total GFA Percentage Average selling price RMB million % sq.m. % RMB/sq.m. Hangzhou 243.62 18.83 15,462.56 13.67 15,755.61 Chengdu 210.62 16.28 15,063.09 13.32 13,982.73 Fuzhou 175.40 13.56 7,500.81 6.63 23,383.80 Suzhou 111.84 8.64 2,933.65 2.59 38,122.25 Nanjing 88.44 6.84 7,984.27 7.06 11,076.50 Nantong 74.15 5.73 8,096.62 7.16 9,158.53 Qingdao 64.03 4.95 14,168.00 12.53 4,519.34 Fuyang 57.33 4.43 4,153.46 3.67 13,804.12 Taiyuan 53.91 4.17 3,175.60 2.81 16,974.81 Others 214.54 16.58 34,566.82 30.56 6,206.80 Total 1,293.88 100.00 113,104.88 100.00 11,439.80 Projects completed For the six months ended 30 June 2026, the Group (including its joint ventures and associates) completed a total of 169 projects or phases of projects, with a total GFA of approximately 34,395,334.06 sq.m. (approximately 19,627,121.64 sq.m., after taking into account the interests of owners of the Company in the relevant projects). Projects under construction As at 30 June 2026, the Group (including its joint ventures and associates) had a total of 35 projects or phases of projects under construction, with total planned GFA of approximately 4,075,786.42 sq.m. (approximately 2,378,967.14 sq.m., after taking into account the interests of owners of the Company in the relevant projects).
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– 19 – Land reserve As at 30 June 2026, the total GFA of the Group’s land reserve (including its joint ventures and associates) was approximately 16.26 million sq.m., among which, approximately 7.78 million sq.m. were completed properties held for sale, approximately 7.42 million sq.m. were under construction and approximately 1.07 million sq.m. were held for future development. As at 30 June 2026, the cost per sq.m. of the Group’s land reserve (including its joint ventures and associates) was approximately RMB8,750. The following table sets forth details of the land reserve attributable to the owners of the Company as at 30 June 2026: Region Project Name Total land value Total GFA of reserve Average cost per sq.m. (RMB million) (10,000 sq.m.) (RMB/sq.m.) Zhengzhou Zhengzhou Jiangwancheng - Supai (ݼ225 95.11 470 Zhengzhou Zhengzhou Jiangwancheng - Delan (Ñᅃᔝ ) 230 90.74 520 Zhengzhou Zhengzhou City of Times (۬798 74.15 3,167 Zhengzhou Zhengzhou Olympic Century (ߏ212 57.19 2,264 Taiyuan Taiyuan City of Times (۬290 36.19 1,355 Fuzhou Fuzhou Gushan Bridge Project (၅ψོʆɽධͦ ) 3,554 29.44 13,521 Zhengzhou Zhengzhou Jiangwancheng - Zhongqiao (Ñʕఐ ) 139 26.33 722 Hangzhou Hangzhou Xianghu Yuezhang ( ) 3,180 24.57 17,134 Fuzhou Fuzhou Ronghui Hot Spring City (۬ݰ471 20.93 1,610 Zhengzhou Zhengzhou Cheng Shi Zhi Chuang (̹ʘ ) 140 15.19 912 Xuzhou Xuzhou Xinyi Project (ψอӥධͦ ) 372 12.44 3,360 Tianjin Tianjin West Coast (֦1,049 12.21 8,238 Huzhou Anji Yuejiang (ִ236 10.73 2,986 Mianyang Wanwei Mianyang Economic Development Zone 105 mu (ၧජකਜ 105ल) 256 10.45 2,932 Huzhou Huzhou Xifengyang 2# Lot (ಳψ̹Гჾည 2#ή෯) 612 10.02 6,475 Lianyungang Lianyungang Urban Park West District (ϪГਜ ) 597 9.27 6,518 Jiangmen Jiangmen Mansion (ִ332 9.07 4,800 Nantong Nantong Chongchuan Times Yuechengnan Lot (ή෯ ) 937 8.14 14,197 Putian Putian Junlong Yuhu Project (ஆ͞ᒺඤ͗ಳධͦ ) 138 8.11 3,903
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– 20 – Region Project Name Total land value Total GFA of reserve Average cost per sq.m. (RMB million) (10,000 sq.m.) (RMB/sq.m.) Chengdu Chengdu Qingbaijiang Project (ͣϪධͦ ) 116 8.01 2,048 Hangzhou Hangzhou Century (ߏ1,748 7.65 30,816 Chongqing Chongqing Lan Bay (ᅅᘜᝄ ) 335 7.55 6,189 Fuzhou Fuzhou Heshang Project ( ၅ψᚲɪධͦ ) 340 7.41 5,121 Lianyungang Lianyungang Urban Park East District (ਜ ) 623 7.37 8,856 Hangzhou Hangzhou Canal New City Project (ධͦ ) 1,768 7.23 23,558 Nantong Nantong Chongchuan Yuanlin Road Plot (༩ή෯ ) 667 6.67 13,340 Qingdao The Ocean Coastal (ᝄ ) 184 6.65 3,504 Suzhou Suzhou Wuzhong Mudu Project (ᘽψюʕਜ˝ᓪᕄධͦ ) 941 6.38 16,811 Hangzhou Hangzhou Science City 11 Lot (۬11ή෯) 992 6.24 19,474 Hangzhou Baolong Lin’an Project ( ᘒᎲᑗτධͦ ) 280 6.17 6,128 Wenzhou East Wenzhou Pingyang New District B009, 11 Lot (อਜ B009e11ή෯) 364 6.17 7,607 Fuzhou Pingtan Lanchen (࢚316 6.03 5,549 Suzhou Suzhou Huangqiao Project ( ᘽψරධͦ ) 784 5.83 14,784 Fuzhou Fuzhou Difeng River Project (Ϫධͦ ) 368 5.82 7,932 Suzhou Changshu Project ( ੬ᆞධͦ ) 275 5.74 6,662 Zhoushan Zhoushan Chuang Shi Ji (ߏ306 5.61 4,324 Fuzhou Changle Lanshan (ᆀᘜʆ ) 253 5.48 5,005 Weinan Weinan Wenquetai (˖ᕍ̨ ) 78 5.44 2,393 Baoding Baoding Jinyue City (۬ࣀږ֛ڭ131 5.09 3,979 Hangzhou Mei Hao Bao Long Lan Sky (λᘒᎲᘜ˂ ) 255 4.88 5,546 Lanzhou Lanzhou Lelan • Shiguangyin (ᚆψᆀᘜ • ΈΙ) 43 4.74 709 Xi’an Xi’an Sandi 86 mu Project (ࠔ86लධͦ) 301 4.73 7,653 Xi’an Xi’an Sandi 115 mu Project (ࠔ115लධͦ) 378 4.65 7,397 Lanzhou Lanzhou Park Academy (ִ39 4.37 897 Fuzhou Fuzhou CBD 49 Lot ( ၅ψCBD49 ή෯) 482 4.12 14,497 Hangzhou Hangzhou Sandun North Project (ψɧᄧ̏ධͦ ) 665 3.96 16,088 Chongqing Chongqing Haiyue Pinghu (ᅅऎ˜̻ಳ ) 259 3.84 11,149 Ningbo Ningbo Country Garden Siji Longyue (ִ186 3.83 5,599
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– 21 – Region Project Name Total land value Total GFA of reserve Average cost per sq.m. (RMB million) (10,000 sq.m.) (RMB/sq.m.) Shanghai Shanghai Parallel Impression (ɪऎऎॶΙ ) 1,120 3.77 38,763 Qingdao Qingdao Science and Technology Innovation Center Project (௴ʕːධͦ ) 110 3.68 3,578 Suzhou Kunshan Yulan Residence (ʆ͗ᚆʮ ) 365 3.60 13,576 Nanjing Nanjing Bo’an Center (ʕː ) 102 3.60 2,515 Hangzhou Hangzhou Vanke Zhong Cheng Hui (ි ) 642 3.56 24,704 Jinhua Tianyang River Mansion ( ˂ජථ᳒Ϫྤ ) 275 3.45 10,562 Hangzhou Hangzhou Gu Cui Yin Xiu (ψ̚ၯᒯӸ ) 1,016 3.36 40,542 Suzhou Kunshan Bacheng Lot (ή෯ ) 168 3.34 5,582 Shanghai Shanghai Baoshan Luodian Project (ධͦ ) 551 3.33 22,340 Putian Xianyou Jianfa Cooperation Project (೯ΥЪධͦ ) 42 3.33 2,784 Zhangzhou Changtai Luxi County (इГয় ) 33 3.23 1,127 Tianjin Tianjin Jinnan (ִیݵݵ397 3.14 12,959 Suzhou Suzhou Science City Project (ධͦ ) 416 3.03 15,647 Jiangmen Jiangmen Guoyue House (ִ146 2.98 5,847 Qingdao Qingdao Manshan Lanting (ڤ75 2.98 2,386 Fuzhou Fuzhou Vanke Zhen Lu Yuan (ጲᘇ ) 198 2.95 7,340 Fuyang Xingfu Li • East County (၅Ԣ • য়) 51 2.93 2,235 Nanjing Nanjing Vanke Du Hui Tian Di (ே⸭˂ή ) 351 2.92 12,130 Nanjing Nanjing Zhong Jun Yong Jing Tai (ԯʕᒺའ౻̨ ) 309 2.90 12,842 Tianjin Tianjin Lanyue 4 (ࣀ4) 300 2.89 11,742 Putian Putian Ronshine Yuezhu (ഹ ) 97 2.70 4,796 Quzhou Quzhou Tianyang Yunqi Longting (ࢬ149 2.61 8,281 Zhenjiang Jurong Tianyuefu (ִࣀ94 2.58 4,837 Shanghai Shanghai Zhongxing Road ( ɪऎʕጳ༩ ) 2,147 2.46 100,091 Jiaxing Haining Lanting (ࢬ131 2.45 7,200 Hangzhou Hangzhou Qinlan (ψӎᘜ ) 340 2.42 21,211 Hangzhou Hangzhou Poly He Guang Chen Yue (лձΈྡྷ⭮ ) 256 2.33 16,005 Fuzhou Fuzhou Yongtai Project ( ၅ψ͑इධͦ ) 55 2.32 2,811 Hangzhou Hangzhou Pengbu Commercial Lot (ψుਠุή෯ ) 160 2.26 12,278 Shaoxing South Shaoxing Dongguang Lot (Έή෯ ) 467 2.21 12,263 Fuyang Fuyang Yingzhou Project (ජ⤭ψධͦ ) 60 2.21 2,961
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– 22 – Region Project Name Total land value Total GFA of reserve Average cost per sq.m. (RMB million) (10,000 sq.m.) (RMB/sq.m.) Hangzhou Hangzhou Aoshi Mansion (ڒ741 2.18 27,253 Lishui Lishui Tianyang Country Garden City Innovation (ேึʘΈ ) 202 1.99 13,169 Xi’an Chang’an Xiyue (ࣀ8 1.97 446 Haining Haining Lanting Qihang (62 1.90 3,939 Hangzhou Yue Zhen Mansion (ִ62 1.78 4,375 Hangzhou Hangzhou Liwang NEO1 (ψ᩶ૐNEO1) 408 1.69 31,551 Chengdu Chengdu Jinniu 16 mu (ˬ 16ल) 183 1.65 14,200 Chengdu Chengdu Ruilian ( ϓேᑌ ) 185 1.55 14,300 Shanghai Shanghai Yangpu Pingliang Lot (ɪऎเऌ̻૭ή෯ ) 413 1.46 25,397 Hangzhou Hangzhou Zhanwang (ૐ ) 272 1.38 25,116 Guangzhou Guangzhou Tianyue (ִ341 1.38 14,999 Chongqing Chongqing Hai Yue Yu Zhou (ᅅऎ˜ಽψ ) 94 1.36 9,600 Wenzhou Wenzhou Ou Hai Xi Yue Li (Ԣ ) 111 1.24 13,004 Hangzhou Yunhe Commercial 43 Lot (ਠุ 43ή෯) 132 1.17 14,075 Hangzhou Hangzhou Lan Sky (Konggang) (ಥ) 94 1.17 5,101 Fuyang Linquan Junyue Mansion (ִ22 1.02 2,592 Fuzhou Fuzhou Nice Villa ( ၅ψϞྨ ) 7 0.99 486 Shanghai Shanghai Jing’an Zhongxing Community (ਜ ) 479 0.98 72,000 Jinhua Jinhua Yuejiang (ִ60 0.93 8,467 Chengdu Chengdu Traffic Lane 9.5 mu (܍9.5ल) 139 0.89 18,699 Chengdu Chengdu Lan Sky ( ϓேᘜ˂ ) 29 0.88 4,200 Nanjing Nanjing CIFI Shi Dai Tian Yue (˾˂⭮ ) 170 0.83 9,464 Shanghai Shanghai Four Seasons (֙133 0.80 22,578 Fuzhou Fuzhou Park Left Bank (֦143 0.79 21,731 Hangzhou Hangzhou Xingyao Beixi Project (ψጳᘴ̹̏Гධͦ ) 148 0.79 25,962 Quzhou Quzhou Zhongliang Shiguangli (ΈԢ ) 29 0.74 5,383 Shanghai Shanghai Platinum ( ɪऎཔᐌ ) 80 0.72 15,409 Changzhou Changzhou Lanyue (ࣀ55 0.71 9,313 Hangzhou Hangzhou Sibao Qibao 16 Lot (ψ̬ఝɖఝ 16ή෯) 242 0.67 44,364 Wenzhou Wenzhou Rongwang ( ψૐ ) 34 0.60 7,203 Suzhou Suzhou Wuzhong Linhu County Lot (ᘽψюʕᑗಳᕄή෯ ) 37 0.58 6,843 Chongqing Tan Zi Kou ( ᛉɿɹ) 29 0.43 9,255
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– 23 – Region Project Name Total land value Total GFA of reserve Average cost per sq.m. (RMB million) (10,000 sq.m.) (RMB/sq.m.) Fuzhou Fuzhou Country Garden Yuelinglong (ᘡ ) 22 0.23 7,687 Total 43,033 857 8,750 Note: (1) This represents the original land costs of these projects only and does not reflect the fair value decrease that had been recognised upon acquisitions or consolidations by the Group during the six months ended 30 June 2026. Financial review Revenue The Group derives its revenue from sales of properties in the People’s Republic of China (the “PRC”), and rental income and others. No revenue was derived from provision of construction services during the Period. The following table sets forth the details of the Group’s revenue recognised from such sources for the six months ended 30 June 2026 and 2025, respectively: For the six months ended 30 June Change in percentage 2026 2025 RMB’000 RMB’000 Revenue Sales of properties 610,379 1,910,186 (68.05)% Rental income and others 188,529 211,750 (10.97)% Total 798,908 2,121,936 (62.35)% The revenue of the Group decreased by approximately 62.35% from approximately RMB2,121.94 million for the six months ended 30 June 2025 to approximately RMB798.91 million for the six months ended 30 June 2026. This decrease was mainly attributable to the combined effects of: (i) the decrease in revenue from delivery of properties by the Group by approximately 68.05% from RM B1,910 million for the six months ended 30 June 2025 to RMB610 million for the six months ended 30 June 2026. The decrease in revenue from delivery of properties by the Group was primarily due to the decrease in delivery of completed properties; and
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– 24 – (ii) the lower revenue generated from consulting services and hotel operations during the six months ended 30 June 2026, which was partly offset by the increase in rental income and sales commissions. During the six months ended 30 June 2026, revenue from consulting services amounted to approximately RMB2.75 million, the sales commission was approximately RM B3.39 million, and revenue from hotel operations of the Group was approximately RMB66.78 million, as compared with consulting service revenue of approximately RMB52.69 million, sales commission income of approximately RMB1.89 million and revenue from hotel operations of approximately RMB66.90 million for the six months ended 30 June 2025. The rental income increased by approximately 21.92% from approximately RM B85.33 million for the six months ended 30 June 2025 to approximately RMB104 million for the six months ended 30 June 2026. Revenue generated from the sales of properties amounted to approximately RMB610 million for the six months ended 30 June 2026. The following table sets forth the details of the revenue generated from the sales of properties of the Group by geographical location for the six months ended 30 June 2026 and 2025, respectively: For the six months ended 30 June 2026 2025 Revenue GFA delivered by the Group Average selling price Revenue GFA delivered by the Group Average selling price RMB million sq.m. RMB/sq.m. RMB million sq.m. RMB/sq.m. Hangzhou 241 9,741 24,777 1,115 31,205 35,731 Wenzhou 76 7,606 10,043 177 15,236 11,591 Zhengzhou 74 10,919 6,799 13 1184.41 10,624 Shanxi 50 7,994 6,255 281 40,086 7,014 Qingdao 45 2,529 17,789 31 2,366 12,915 Others 123 13,409 9,204 294 42,365 6,942 Total 610 52,197 11,694 1,910 132,442 14,421 Cost of sales The Group’s cost of sales decreased by approximately 51.72% from approximately RMB1,557.38 million for the six months ended 30 June 2025 to approximately RMB751.89 million for the six months ended 30 June 2026. This decrease is mainly attributable to the decrease in GFA of the properties delivered by the Group. Gross loss/profit and gross loss/profit margin Gross loss/profit represents revenue less cost of sales. As a result of the foregoing, there was a decrease in gross profit from approximately RMB564.56 million for the six months ended 30 June 2025 to approximately RMB47.02 million for the six months ended 30 June 2026.
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– 25 – The Group recorded a gross profit margin of approximately 26.61% for the six months ended 30 June 2025 and a gross profit margin of approximately 5.89% for the six months ended 30 June 2026, primarily due to the decrease in average gross profit margin of projects delivered by the Group. Other income The Group’s other income primarily includes interest income due from loans to non- controlling interests and related parties. The Group’s other income decreased by approximately 80.39% from approximately RM B63.29 million for the six months ended 30 June 2025 to approximately RM B12.41 million for the six months ended 30 June 2026. Such change was primarily attributable to the decrease in revenue from debt restructuring. Other gains or losses – net The Group’s other gains or losses primarily include (i) gains or losses from dissolution of subsidiaries; and (ii) gains from disposal of associates and joint ventures. The Group incurred other net losses of approximately RMB480.83 million for the six months ended 30 June 2026 as compared to other net losses of approximately RMB37.14 million for the six months ended 30 June 2025. Such change was primarily attributable to the increase in losses from dissolution of subsidiaries. Selling and marketing costs The Group’s selling and marketing costs include (i) staff costs for sales personnel; (ii) marketing, advertising and commission costs; (iii) property management fees; and (iv) other costs including rental expenses and other miscellaneous fees and expenses. The Group’s selling and marketing costs decreased by approximately 15.66% from approximately RM B74.75 million for the six months ended 30 June 2025 to approximately RMB63.04 million for the six months ended 30 June 2026, prima rily due to the decrease in staff costs for sales personnel and marketing, advertising and commission costs. Administrative expenses The Group’s administrative expenses include (i) staff costs for administrative personnel; (ii) other taxes; (iii) office and travel expenses; (iv) entertainment expenses; (v) consultation fees; (vi) office lease expenses; (vii) net impairment losses on financial assets; and (viii) others. The Group’s administrative expenses increased by approximately 0.8% from approximately RMB658.02 million for the six months ended 30 June 2025 to approximately RM B663.28 million for the six months ended 30 June 2026, primarily due to the increase in net impairment losses on financial assets.
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– 26 – Finance income/cost – net Finance income primarily consists of foreign exchange gain and interest income from bank deposits. Finance cost primarily consists of interest expenses of borrowings and net foreign exchange losses. The Group recorded a net finance cost of approximately RMB701.90 million for the six months ended 30 June 2026 and a net finance cost of approximately RMB1,243.80 million for the six months ended 30 June 2025. The decrease in net finance cost was primarily due to the decrease in interest expenses of borrowings and the increase in foreign exchange gain. Share of net profit/loss of investments accounted for using the equity method The Group’s share of net profit/loss of investments accounted for using the equity method remained stable, with a net loss of approximately RMB6.18 million recorded for both the six months ended 30 June 2025 and 2026. Profit/(loss) before income tax As a result of the aforementioned changes in the Group’s financials, the Group recorded a loss before income tax of approximately RM B1,855.80 million for the six months ended 30 June 2026, representing an increase in loss before income tax of approximately 33.32% from approximately RMB1,392.03 million for the six months ended 30 June 2025. Income tax expenses The Group’s income tax expenses comprise provisions made for corporate income tax (“ CIT”) (including deferred income tax) and land appreciation tax (“ LAT”) in the PRC. The Group’s income tax expenses decreased by approximately 80.88% from approximately RMB312.10 million for the six months ended 30 June 2025 to approximately RM B59.68 million for the six months ended 30 June 2026. Specifically, CIT (including deferred income tax) decreased by approximately 66.74% from approximately RMB148.92 million for the six months ended 30 June 2025 to approximately RMB49.53 million for the six months ended 30 June 2026, and LAT decreased by approximately 93.78% from approximately RM B163.18 million for the six months ended 30 June 2025 to approximately RMB10.16 million for the six months ended 30 June 2026. Loss for the Period attributable to owners of the Company As a result of the aforementioned changes in the Group’s financials, the Group recorded a loss for the period attributable to owners of the Company of approximately RMB1,565.11 million for the six months ended 30 June 2026, as compared to a loss for the period attributable to owners of the Company of approximately RMB1,829.16 million for the six months ended 30 June 2025.
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– 27 – Profit/(loss) for the Period attributable to non-controlling interests The Group recorded a loss for the period attributable to non-controlling interests of approximately RMB350.38 million for the six months ended 30 June 2026 as compared to a profit for the period attributable to non-controlling interests of approximately RM B125.02 million for the six months ended 30 June 2025, primarily due to the decrease in gain from disposal of properties recognized under each project (jointly developed with the non- controlling interests) for the six months ended 30 June 2026. LIQUIDITY AND FINANCIAL RESOURCES As at 30 June 2026, the Group’s net current liabilities amounted to approximately RMB25,749.55 million (31 December 2025: approximately RM B20,196.76 million). Specifically, the Group’s total current assets decreased by approximately 4.96% from approximately RM B62,293.81 million as at 31 December 2025 to approximately RMB59,205.85 million as at 30 June 2026. The Group’s total current liabilities increased by approximately 2.99% from approximately RMB82,490.57 million as at 31 December 2025 to approximately RMB84,955.39 million as at 30 June 2026. The decrease in the Group’s total current assets was primarily attributable to the decrease in completed properties held for sale by 10.15% from RMB13,114.60 million as at 31 December 2025 to RMB11,783.08 million as at 30 June 2026. As at 30 June 2026, the Group had cash and bank ba lances of a pproximately RMB2,332.94 million (31 December 2025: appr oximately RMB 2,591.78 million), total borrowings of approximately RM B35,954.27 million (31 December 2025: approximately RM B37,594.05 million) and weighted average effective interest rate for outstanding borrowings of approximately 6.52% (including bank borrowings, trust and other borrowings, the domestic corporate bonds, senior notes and the asset-backed securities) (31 December 2025: approximately 6.11%). As at 30 June 2026, the aggregated issued amount of the domestic corporate bonds was approximately RM B8,488.20 million, representing approximately 23.61% of the total borrowings of the Group. Since the second half of 2021, the business environment of China’s real estate industry has undergone major changes, with increased difficulties in financing confronted by real estate companies. Under such circumstances, a number of real estate companies have successively encountered debt repayment issues, indicating accelerated deterioration of the industry’s business environment, which has brought enormous pressure on the Group’s operations. As a result of the impact brought by the above factors, the Group takes longer time than expected to realise cash from disposal of its properties and/or obtain cash from external financing to meet its loan repayment obligations. Although the Company has tried its best to mitigate the impact of various unfavourable factors on its operations, due to the prolonged duration of this situation, the Group’s operation and cash position have been significantly affected, and its ability to perform future obligations is subject to uncertainty.
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– 28 – In light of the current liquidity position, the Group has undertaken a number of plans and measures to mitigate the liquidity pressure and to improve the financial position of the Group, details of which are set out in note 2 to the interim condensed consolidated financial statements extracted in this announcement. The Group will closely monitor its liquidity position and issue further announcement regarding the progress of any capital structure solutions or significant business updates. PLEDGE OF ASSETS As at 30 June 2026, the Group’s borrowings were secured by the Group’s assets of approximately RM B19,377.48 million (31 December 2025: approximately RM B24,468.44 million) which includes (i) completed properties held for sale; (ii) properties under development; (iii) property, plant and equipment; (iv) land use rights; (v) restricted cash; and (vi) investment property. Certain borrowings from financial institutions were also secured by the equity interests of certain subsidiaries of the Company. CONTINGENT LIABILITIES The Group’s contingent liabilities primarily include guarantees that the Group has provided to PRC banks in respect of the mortgage loans granted by the banks to purchasers of the Group’s properties. The purchaser mortgage guarantees are typically released when the title deeds of the respective properties are pledged to the banks as security to continue to support the mortgage loans, which generally takes place after the properties are delivered to the purchasers. The borrowing guarantees represent the maximum exposure of the guarantees provided for the borrowings of related parties and an independent third party at the respective balance sheet dates. The total outstanding guarantee amounts provided by the Group amounted to approximately RMB10,084.55 million as at 30 June 2026 (31 December 2025: approximately RMB11,987.24 million). The Directors believe that, in case of a default by the Group’s purchasers on their mortgage payments, the net realisable value of the relevant properties will be sufficient to repay the outstanding mortgage loans, together with any accrued interest and penalty. Therefore, the Group did not make any provision in connection with these guarantees. The Group also provides various quality warranties to purchasers of its properties, with a term ranging from one to five years, in accordance with the relevant PRC laws and regulations. Such warranties are covered by back-to-back warranties provided to the Group by the respective construction contractors. In addition, the Group has, from time to time, also been a party to lawsuits and other legal proceedings in the normal course of business. Current ratio As at 30 June 2026, the current ratio of the Group was 0.70 times (31 December 2025: 0.76 times). The decrease of the Group’s current ratio was mainly attributable to the decrease in properties under development and completed properties held for sale.
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– 29 – Gearing ratio As at 30 June 2026, the gea ring ratio of the Group was -3.04 (31 December 2025: -5.19), mainly due to the decrease in total assets. This ratio is calculated as net borrowings divided by total equity as shown in the interim condensed consolidated balance sheet. Net borrowings are calculated as total borrowings (including current and non-current borrowings as shown in the interim condensed consolidated balance sheet) less total of cash and cash equivalents, restricted cash and term deposits. FUTURE PLANS FOR MATERIAL INVESTMENTS OR CAPITAL ASSETS The Group will continue to focus on its existing property development business and acquiring high-quality land parcels in first-tier cities in the PRC. However, in light of the current market sentiment, the Group will maintain a prudent approach in acquiring land parcels in the PRC. As at the date of this announcement, the Group has no concrete plan for any material investments or capital assets. PURCHASE, SALE OR REDEMPTION OF LISTED SECURITIES OF THE COMPANY During the six months ended 30 June 2026, neither the Company nor any of its subsidiaries had purchased, sold or redeemed any of the listed securities of the Company (including any sale or transfer of treasury shares). As at 30 June 2026, the Group did not hold any treasury shares. FOREIGN CURRENCY RISK The Group primarily operates its business in the PRC. The currency in which the Group denominates and settles substantially all of its transactions is Renminbi. As at 30 June 2026, the Group’s financial assets and liabilities denominated in currencies other than RMB were mainly borrowings denominated in United States dollars and Hong Kong dollars, in the total amount of approximately RMB 14,040.49 m illion. The Group currently does not engage in hedging activities designed or intended to manage foreign exchange rate risk. The Group will continue to monitor foreign exchange changes to best preserve the Group’s cash value. SIGNIFICANT INVESTMENTS HELD For the six months ended 30 June 2026, the Group did not hold any significant investments. MATERIAL ACQUISITIONS AND DISPOSALS OF SUBSIDIARIES, ASSOCIATES AND JOINT VENTURES There were no material acquisitions or disposals of subsidiaries, associates or joint ventures during the six months ended 30 June 2026.
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– 30 – SIGNIFICANT EVENTS AFTER THE REPORTING PERIOD The Group had no significant events subsequent to 30 June 2026 and as of the date of this announcement. EMPLOYEE AND REMUNERATION POLICY As at 30 June 2026, the Group employed a total of 322 full-time employees (30 June 2025: 427 full-time employees). For the six months ended 30 June 2026, the staff cost recognised as expenses of the Group amounted to approximately RMB43.50 million. The remuneration policy of the Group is to provide remuneration packages including salary, bonus and various allowances, so as to attract and retain top quality staff. In general, the Group determines employee salaries based on each employee’s qualification, position and seniority. The Group has designed a periodical review system to assess the performance of its employees, which forms the basis of the determination on salary raise, bonus and promotion. As required by PRC regulations, the Group makes contributions to mandatory social security funds for the benefit of the Group’s PRC employees that provide for pension insurance, medical insurance, unemployment insurance, personal injury insurance, maternity insurance and housing funds. Furthermore, the Group has implemented systematic, specialty-focused vocational training programs for its employees at different levels on a regular basis to meet different requirements and emphasise individual initiatives and responsibilities. The Group believes that these initiatives have contributed to increased employee productivity. The Group’s employees do not negotiate their terms of employment through any labor union or by way of collective bargaining agreements. During the six months ended 30 June 2026, no labor dispute had occurred which materially and adversely affected or was likely to have a material and adverse effect on the operations of the Group. CORPORATE GOVERNANCE The Group is committed to achieving high standards of corporate governance to safeguard the interests of the shareholders of the Company and to enhance corporate value and accountability. The Company has adopted the corporate governance code (the “ Corporate Governance Code ”) contained in Appendix C1 to the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the “ Listing Rules ”) as its own code on corporate governance and, to the best knowledge of the Directors, the Company had complied with all applicable code provisions set out in Part 2 of the Corporate Governance Code during the six months ended 30 June 2026, save and except for the deviation from code provision C.2.1 of the Corporate Governance Code which is explained below.
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– 31 – Code provision C.2.1 of the Corporate Governance Code provides that the roles of chairman and chief executive officer should be separate and should not be performed by the same individual. The roles of the chairman and chief executive officer of the Company are both performed by Mr. Ou Zonghong (“ Mr. Ou ”), an executive Director. The Board believes that vesting the roles of both chairman and chief executive officer in the same individual enables the Company to achieve higher responsiveness, efficiency and effectiveness when formulating business strategies and executing business plans. Furthermore, in view of Mr. Ou’s extensive industrial experience and significant role in the historical development of the Group, the Board believes that it is beneficial to the business prospects of the Group that Mr. Ou continues to act as the chairman and chief executive officer of the Group, and that the balance of power and authority is sufficiently maintained by the operation of the Board, comprising the executive Directors and independent non-executive Directors. COMPLIANCE WITH THE MODEL CODE FOR SECURITIES TRANSACTIONS BY DIRECTORS The Company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers as contained in Appendix C3 to the Listing Rules (the “ Model Code ”) as the guidelines for Directors’ dealings in the securities of the Company. Following specific enquiries to each of the Directors, the Directors have confirmed their compliance with the required standards set out in the Model Code during the six months ended 30 June 2026. INTERIM DIVIDEND The Board resolved not to declare the payment of any interim dividend for the six months ended 30 June 2026 (for the six months ended 30 June 2025: Nil). AUDIT COMMITTEE AND REVIEW OF THE INTERIM RESULTS The Board has established an audit committee (the “ Audit Committee ”) with written terms of reference in compliance with Rule 3.21 of the Listing Rules and the Corporate Governance Code. The terms of reference of the Audit Committee has been uploaded to the websites of the Stock Exchange (www.hkexnews.hk) and the Company (www.rongxingroup.com). The primary duties of the Audit Committee are to review and supervise the financial reporting process, risk management and internal control system of the Group, oversee the audit process, provide advice and comments to the Board and perform other duties and responsibilities as may be assigned by the Board. The Audit Committee currently consists of three members, namely Mr. Feng Dongcheng, Mr. Ren Yunan and Mr. Ruan Weifeng, each of whom is an independent non-executive Director. The chairman of the Audit Committee is Mr. Feng Dongcheng who possesses appropriate professional qualifications and accounting and related financial management expertise as required under Rule 3.10(2) of the Listing Rules. The Audit Committee has reviewed the interim results of the Group for the six months ended 30 June 2026.
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– 32 – PUBLICATION OF THE INTERIM RESULTS AND INTERIM REPORT This announcement is published on the website of the Stock Exchange at www.hkexnews.hk as well as the website of the Company at www.rongxingroup.com. The Company’s interim report for the six months ended 30 June 2026 will be published on the aforementioned websites in due course. By order of the Board Ronshine China Holdings Limited Ou Zonghong Chairman Hong Kong, 31 August 2026 As at the date of this announcement, Mr. Ou Zonghong, Ms. Yu Lijuan, Ms. Zeng Feiyan and Mr. Wu Jianxing are the executive Directors; Mr. Ren Yunan, Mr. Ruan Weifeng and Mr. Feng Dongcheng are the independent non-executive Directors.