Zhengrong Real Estate (06158) is forecasting that losses attributable to shareholders in the medium term will increase to 8.2 billion yuan to 8.4 billion yuan year-on-year

According to Zhitong Finance App News, Zhengrong Real Estate (06158) issued an announcement. Based on a preliminary assessment of the Group's unaudited management accounts for the six months ended June 30, 2026 (this period) and other currently available data, it is expected that the Group will obtain losses attributable to the owners of the parent company of RMB 8.2 billion to RMB 8.4 billion during the period (same period) (loss attributable to owners of the parent company for the six months ended June 30, 2025 (same period): approximately RMB 6.463 billion).

The increase in losses expected to be borne by parent company owners during the period is mainly due to: (1) the number of projects delivered was drastically reduced from about 2000 in the same period to about 600 in the current period, leading to a decrease in gross profit of about RMB 93.5 million over the same period; (2) the reduction in interest capitalization rates, which led to an increase in financing costs of about 24% or approximately RMB 469 million over the same period; (3) confirmed impairment losses for properties under development and holding completed properties sold during the period of approximately RMB 2.69 billion (same period: approximately RMB 1,972 million); and (4) confirmation of financial assets during the current period Net impairment loss was approximately RMB 2.27 billion (same period: approximately RMB 1,345 billion).