Guangdong Land Holdings Limited (GD Land) reported sharp year-on-year declines in both revenue and earnings for the six months ended 30 June 2026 as subdued property handovers and inventory write-downs weighed on results.
Revenue fell 38.6% to HK$3.53 billion, driven by a smaller gross floor area (GFA) of properties delivered—primarily at the Foshan One Mansion and Guangzhou GDH Future City projects. Gross profit contracted 56.7% to HK$0.89 billion, while a HK$120.99 million impairment against property inventories and HK$14.55 million of fair-value losses on investment properties further compressed profitability.
Profit attributable to shareholders dropped 60.6% to HK$111.09 million, taking basic earnings per share down to HK6.49 cents from HK16.48 cents a year earlier. The board declared no interim dividend, consistent with the prior-year period.
Operating cash flow remained positive at HK$0.67 billion (1H 2025: HK$1.77 billion). Cash and bank balances stood at HK$3.06 billion, 8.9% lower than at end-2025, reflecting higher loan repayments. Total interest-bearing liabilities eased slightly to HK$17.88 billion, and the gearing ratio improved to 365.1% from 399.9% six months earlier. The weighted-average effective interest rate on borrowings was 3.20%.
Total assets declined 5.6% to HK$31.68 billion, but net assets attributable to shareholders rose 7.9% to HK$3.29 billion, lifting net asset value per share to HK$1.92. The current ratio was unchanged at 1.4 times.
Contracted sales volume (including completed and under-development units) slipped to 95,000 sq m, versus 122,000 sq m in 1H 2025, while delivered GFA fell to 140,000 sq m from 180,000 sq m. As at 30 June 2026, GD Land carried HK$18.46 billion of inventories—split between HK$10.10 billion of completed units and HK$8.35 billion of projects under development—and HK$4.47 billion of contract liabilities representing presales yet to be delivered.
Project pipeline momentum continued in the Guangdong-Hong Kong-Macao Greater Bay Area, where all developments are located. Key milestones during the period included ongoing sales and deliveries at Guangzhou GDH Future City, Foshan One Mansion and Zhuhai Laurel House, as well as construction progress at Zhongshan GDH City and Jiangmen GDH City.
Looking ahead, management expects policy support for China’s real-estate sector to persist, with demand in core Greater Bay Area cities underpinned by continued population inflows and “quality housing” initiatives. GD Land plans to maintain disciplined investment, focus on destocking, and pursue selective land acquisitions while preserving liquidity and controlling leverage.
Comments