Longhu Group (00960) expects profit attributable to shareholders in the medium term to be between RMB 1.8 billion and RMB 2.0 billion

Zhitong Finance App News, Longhu Group (00960) issued an announcement comparing the profit attributable to the company owner of RMB 3.22 billion for the six months ended June 30, 2025, and the profit attributable to company owners is estimated to be between RMB 1.8 billion and RMB 2.0 billion for the six months ending June 30, 2026; compared to the six months ending June 30, 2025, excluding the impact of changes in the fair value of investment properties and other derivative financial instruments, of RMB 1.38 billion for the six months ended June 30, 2026 Excluding the impact of changes in the fair value of investment properties and other derivative financial instruments, the core profit attributable to company owners is estimated to be between RMB 50 million and RMB 100 million. Mainly due to the fact that the real estate market is still in a period of adjustment, the company's focus on inventory removal has led to a continuous decline in settlement revenue from the real estate development business and pressure on settlement gross margin.

Over the past few years, the Group has continued to deeply integrate business model transformation with debt structure optimization to promote high-quality development. For the six months ended June 30, 2026, the Group's operations and service business maintained steady growth and continued to contribute stable cash flow and profits; the Group continued to consolidate a secure financial market, and achieved positive operating cash flow including capital expenditure in the first half of the year as a whole. The size of debt was steadily reduced, and the financing structure, financing costs, and contract loan period were further optimized.

Facing the future, the Group will strictly abide by the bottom line of financial security, reduce liabilities in an orderly and steady manner, and maintain positive operating cash flow; at the same time, actively promote the steady growth of operations and service businesses, and establish a foundation for high-quality development.