On August 31st, China Resources Land (01109.HK) released its interim results for the first half of 2026. The financial report shows that the company's consolidated revenue for the period was 67.87 billion yuan, a year-on-year decrease of 28.5%. Of this, revenue from the development and sales business was 45.26 billion yuan; revenue from the recurring income-generating operational real estate business was 14.16 billion yuan; and revenue from the light-asset management fee-based business was 8.45 billion yuan.
Total recurring business income reached 22.61 billion yuan, up 9.9% year-on-year, accounting for 33.3% of total revenue. Gross profit was approximately 17.22 billion yuan, down 24.4% year-on-year, with the company's comprehensive gross margin at 25.4%. Specifically, the gross margin for the development and sales business was 10%, while the gross margin for the operational real estate business was 73.3%.
Profit attributable to shareholders was 9.84 billion yuan, a decrease of 17.15% year-on-year. After deducting the investment property valuation gain of 3.41 billion yuan for the period and adding back the realized cumulative valuation gain of 3.73 billion yuan from the disposal of some investment property projects, core profit attributable to shareholders was 10.16 billion yuan. Of this, core net profit from recurring businesses reached 6.65 billion yuan, with its contribution to core net profit rising by 5.3 percentage points year-on-year to 65.5%. The company's cash and cash equivalents stood at approximately 97.376 billion yuan, compared to 115.449 billion yuan at the end of 2025.
In the first half of 2026, China Resources Land achieved contracted property sales of 116.5 billion yuan, up 5.6% year-on-year, with a contracted area of 3.16 million square meters, down 23.2% year-on-year. As of June 30th, the company had locked in 188.19 billion yuan in unsettled development property sales revenue, of which an estimated 97.28 billion yuan is expected to be settled within 2026.
Regarding the company's second growth curve, the operational real estate business generated revenue of 14.16 billion yuan in the first half, up 17% year-on-year, with core net profit reaching 5.62 billion yuan, a 12.7% increase. Retail sales from self-owned shopping malls reached 128.19 billion yuan, up 16.4% year-on-year. As of June 30th, the company operated 98 self-owned shopping malls with an operating margin of 66%.
In the light-asset management business, China Resources Mixc Lifestyle generated revenue of 9.22 billion yuan in the first half, a year-on-year increase of 8.1%. In its asset management segment, the company issued the Chengdu Mixc Inter-institutional REIT and is steadily advancing applications for commercial real estate REITs, continuously improving its multi-tiered REITs platform. As of June 30th, the group's asset management scale reached 524.3 billion yuan, an increase of 22.1 billion yuan compared to the end of last year.
China Resources Consumer REIT achieved revenue of 406 million yuan, up 10.6% year-on-year, and EBITDA of 229 million yuan, up 12.9%. Since its listing, it has distributed cumulative cash dividends of 771 million yuan. China Resources Youchao REIT posted fund income of 68.85 million yuan and EBITDA of 45.13 million yuan, both up 75% year-on-year. The company also successfully completed the expansion of the Shanghai Maqiao project and is actively promoting the establishment of Pre-REITs funds.
The culture and sports industry operations business expanded to 24 managed projects, covering an area of 5.56 million square meters with a scale of 76.3 billion yuan. Revenue grew 18.1% year-on-year to 600 million yuan, with an operating profit margin of 25.1%. The rental housing business achieved full-caliber operating revenue of 470 million yuan, up 14.4% year-on-year, and operating profit of 290 million yuan, up 16.4%. The business covers 15 cities nationwide, with 99,000 rooms under management.
In its financial report, China Resources Land stated that the group adheres to the investment principles of "adjusting layout, adjusting structure, and adjusting pace," focusing on core strategic cities and value-gap projects. During the period, the company acquired 16 projects with equity investment of 32.49 billion yuan, with 99% of investments in first- and second-tier cities. New land reserves added in the first half totaled 2.84 million square meters of planned floor area. As of June 30th, the company's total land reserves stood at approximately 47.12 million square meters, including 39.23 million square meters of property development land reserves, with an attributable area of 27.66 million square meters.
Furthermore, as of June 30th, China Resources Land's total borrowings were 271.18 billion yuan, with bank balances and cash of 98.91 billion yuan. The net interest-bearing debt ratio was 41%, and the weighted average debt financing cost fell 9 basis points from the end of 2025 to 2.63%.
At the results conference, China Resources Land's management commented on the series of policies announced on August 28th, stating that these measures constitute a comprehensive policy framework. The documents build a policy incentive system based on the spot-sale housing system, project company system, and lead bank system.
"We believe this is an important step by the state to accelerate the establishment of a new development model for real estate, and it will be the main policy tone for the real estate sector for a considerable period to come," management said. They assessed the impact of this round of institutional reform on the industry in several ways.
First, the policies are expected to have a positive effect on the supply-demand dynamics of the primary housing market and the continued improvement and restoration of price expectations. "The supply-demand relationship in the national real estate market is constantly changing, and we have now entered a new development period of optimizing the existing stock structure. On the one hand, total second-hand housing transactions have fully surpassed new homes. On the other hand, the combined inventory of unsold new homes and homes under construction remains high. The new policies require optimizing land supply, reasonably determining supply scale, and encouraging spot sales, which is expected to have a long-term positive effect on stabilizing the new home market and repairing prices. China Resources Land's land reserves are concentrated in prime locations in high-tier cities, and the new policies will help accelerate the clearance of existing inventory and optimize the land reserve structure."
"Second, the policies help systematically protect the legal rights of homebuyers. In the past, problems such as delayed delivery, violations, and even unfinished projects in the commercial housing market have impacted buyer confidence. The new policies, which emphasize seeing-is-believing in the sales and delivery process and the principle of receiving the house before repaying the loan, will guide developers to continuously strengthen their focus on project quality and steadily boost consumer confidence in purchasing homes."
"Third, the policies assist real estate enterprises in moving away from the traditional 'three highs' development path characterized by high debt, high leverage, and high turnover."
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