Chen Xing Development Posts Wider Interim Loss Amid Revenue Halve; Gearing Climbs to 309%

Chen Xing Development (02286) reported a deeper interim loss for the six months ended 30 June 2026 as revenue more than halved and finance costs remained elevated.

Financial performance • Revenue fell 51.10% year on year to RMB 40.79 million, with property-development income down 51.90% to RMB 39.35 million following lower project handovers—particularly at Chen Xing Yijun and Jinhutingyuan Phase I.

• Gross profit contracted 65.91% to RMB 11.39 million, cutting margin to 27.93% from 40.10% in the prior-year period.

• Finance costs eased 34.41% to RMB 53.07 million, yet remained the single largest expense line.

• Net loss widened 10.91% to RMB 100.65 million; basic loss per share increased to RMB 0.17 from RMB 0.15.

Balance-sheet highlights • Cash and cash equivalents declined 33.86% since end-2025 to RMB 69.42 million.

• Interest-bearing bank and other borrowings totalled RMB 2.60 billion; borrowings from related parties stood at RMB 176.26 million.

• Net assets slipped to RMB 842.85 million from RMB 953.31 million at year-end 2025, lifting the gearing ratio to 309.14% (31 Dec 2025: 274.64%).

• Net current assets turned positive at RMB 971.40 million versus a net current liability position of RMB 1.25 billion six months earlier, reflecting reclassification of borrowings to non-current liabilities.

Cash flow • Operating activities generated RMB 7.70 million of net cash, markedly below the RMB 53.50 million inflow posted a year ago.

Operational metrics • Contracted sales advanced 15.78% to RMB 64.60 million on a 10.88% rise in contracted GFA to 8,713 sq m; average selling price increased 4.41% to RMB 7,414 per sq m.

• Total land bank measured 2.11 million sq m at period-end with an average cost of RMB 881.70 per sq m.

Dividends and outlook No interim dividend was declared. Management expects China’s property market to remain in a differentiated recovery, signalling continued focus on asset revitalisation, debt structure optimisation and product upgrades targeting demand for higher-quality housing in core cities while navigating sustained challenges in lower-tier markets.