Zensun Enterprises reported interim results for the six months to 30 June 2026 showing a sharp contraction in top-line performance, yet a reduced net loss attributable to shareholders.

Revenue dropped 86.4% year-on-year to RMB 357.39 million, reflecting lower gross floor area (GFA) deliveries from its mainland China property projects. Gross profit fell 49.6% to RMB 29.99 million, but the margin improved to 8.4% from 2.3% a year earlier as cost reductions outpaced the revenue decline.

Net other losses narrowed to RMB 67.60 million (2025: RMB 270.21 million) after a smaller write-down on properties and a fair-value gain on financial assets. Finance costs rose 19.0% to RMB 183.65 million due to lower interest capitalisation.

Loss attributable to owners eased to RMB 301.17 million, down 40.0% from the prior-year period’s RMB 502.18 million loss. Basic loss per share declined to RMB 15.7 cents from RMB 26.2 cents. No interim dividend was declared.

Segment highlights • Mainland property development: revenue RMB 309.29 million; segment loss RMB 345.44 million. • Project management services: revenue RMB 5.71 million; segment profit RMB 0.76 million. • Hotel operations: revenue RMB 17.72 million; segment profit RMB 10.54 million. • Property investment and management – USA (AHR): revenue RMB 5.54 million; segment loss RMB 1.34 million. • Other property investment: revenue RMB 12.50 million; segment profit RMB 3.15 million. • Securities trading and investment: revenue RMB 6.64 million; segment profit RMB 26.02 million.

Financial position Total assets stood at RMB 32.94 billion against total liabilities of RMB 32.90 billion. Equity attributable to owners moved to a deficit of RMB 20.61 million from positive RMB 44.08 million at year-end 2025. The current ratio was 1.00 (31 Dec 2025: 1.01) and the gearing ratio 39.6% (31 Dec 2025: 40.6%).

Cash and bank balances, including pledged and restricted amounts, rose to RMB 759.39 million from RMB 666.63 million at year-end. Outstanding borrowings totalled RMB 13.79 billion, with RMB 12.94 billion due within 12 months.

Contingent liabilities linked to mortgage guarantees for property buyers amounted to RMB 17.98 billion. Capital commitments for property development were RMB 2.89 billion.

Outlook Management will prioritise cash preservation, accelerate sales of completed units, curb new land acquisitions and continue negotiating with creditors after missed payments on US-dollar senior notes. The group will also expand asset-light project-management services while focusing on its core Henan market and select tier-one and tier-two mainland cities.