Shenzhen Holdings (00604) announced interim results. Shareholders' equity losses of approximately HK$1,986 billion narrowed 24.15% year over year

According to the Zhitong Finance App, Shenzhen Holdings (00604) announced its 2026 interim results, with revenue of approximately HK$10.139 billion, a decrease of 2.04% over the previous year. Gross profit was approximately HK$1,428 million, a year-on-year decrease of about 19.48%, and the overall gross margin was approximately 14.08%. The loss attributable to equity shareholders of the company was approximately HK$1,986 million, a year-on-year decrease of 24.15%; loss per share was HK22.32 cents.

In the first half of the year, the contract sales amount was approximately $5.966 billion (equivalent to HK$6.759 billion), a year-on-year decrease of about 8.54%; the contract sales area was about 261,800 square meters, a year-on-year decrease of 12.73%. Achieved about 52% of the annual sales target of HK$13 billion, and the overall progress was in line with annual operating expectations.

Looking back at the reporting period, the company's overall operating performance was mainly hampered by cyclical adjustments in the real estate development industry. First, due to the macroeconomic environment where the real estate industry continues to be deeply adjusted, industry demand and market pressure are obvious. The carry-over scale of the company's real estate development business has shrunk, and corresponding operating income and gross margin have declined year-on-year; second, in order to prudently respond to the continuous decline in the real estate market and adhere to the principles of steady management and active risk prevention, the company fully assessed the net realizable value of inventory during the reporting period, and calculated a total of about HK$1,122 million for inventory impairment; third, due to the downturn in the industry and project performance, some joint ventures experienced joint operating losses during the current period Check the company's current period The impact on results was approximately HK$223 million. Although the above situation put pressure on the company's current profit in stages, it has effectively released the risk of existing assets, further consolidated the company's overall asset quality, optimized the asset structure, and built a solid operating foundation for the company to go into battle lightly and achieve steady and sustainable development. While the traditional development business is under pressure, the company's real estate asset management and integrated urban operation sector operated steadily and bucked the trend. Overall revenue grew year on year, becoming an important stabilizing force supporting the company's basic operating market.