Zhenro Properties Group Limited released unaudited interim results for the six months to 30 June 2026, reflecting the depth of China’s property downturn and the developer’s liquidity strain.
Financial Performance • Revenue fell 86.4% year-on-year to RMB 0.63 billion (H1 2025: RMB 4.65 billion) due to a sharp reduction in delivered floor space. • Gross profit contracted to RMB 38.21 million; margin improved to 6.0% from 2.8% a year earlier as lower-margin projects were limited. • Loss attributable to shareholders widened 28.5% to RMB 8.31 billion; total loss reached RMB 8.91 billion. • Impairment charges climbed to RMB 2.27 billion on financial assets and RMB 2.69 billion on inventories, while investment-property fair-value losses totalled RMB 0.35 billion.
Sales and Operations • Contracted sales (including JVs and associates) slipped 10.4% to RMB 2.12 billion on a 4.2% fall in sold GFA to 136,665 sq.m.; average selling price eased to RMB 15,500 per sq.m. • Handover volume was about 600 residential units covering 74,600 sq.m. • Rental income declined 30.9% to RMB 31.27 million. • Land bank shrank to 8.75 million sq.m. from 9.04 million sq.m. at end-2025.
Balance-Sheet Stress • Cash and cash equivalents stood at only RMB 0.33 billion against current borrowings of RMB 52.58 billion, giving a current ratio of 0.63 (end-2025: 0.67). • Total borrowings were RMB 57.64 billion, with 91% maturing within 12 months. • Shareholders’ equity turned further negative to –RMB 35.61 billion; total equity was –RMB 30.86 billion.
Default Status and Restructuring The company remains in default on multiple offshore senior notes and perpetual capital securities, covering RMB 12.56 billion principal and RMB 0.62 billion interest. Zhenro is working with legal and financial advisers on “offshore holistic liability management solutions” but has yet to finalise a restructuring plan. Some onshore borrowings of roughly RMB 0.91 billion have been successfully extended for five years.
Cost Management Selling and distribution expenses fell 42.8% to RMB 227.49 million; administrative expenses dropped 35.5% to RMB 160.48 million after headcount reductions to 458 staff.
Dividend Given the deepening losses and liquidity pressure, the board declared no interim dividend.
Outlook Management expects China’s property market to remain in a “bottoming” phase through H2 2026. Priorities include safeguarding project deliveries, accelerating asset disposals, tightening cost controls and securing a sustainable restructuring of offshore debt to stabilise operations.