Changshi Group (01113) 2026 Interim Results: Stable financial cash continues to operate with prudent strategies
The Zhitong Finance App learned that on August 13, Changshi Group (01113) announced its 2026 interim results. The Group obtained revenue of $40.306 billion (HK$, same below) during the period, an increase of 58.77% over the previous year; profit attributable to shareholders was 8.683 billion yuan, an increase of 37.78% over the previous year, and plans to pay an interim dividend of $0.41 per share. Group Chairman Li Zeju said in the performance report that the Group has always upheld the principle of prudence and relied on diversified high-quality asset portfolios to operate its various businesses. He pointed out that Hong Kong's foreign trade performance is improving, local demand is improving, and the property market will continue to be dominated by housing land policies and interest rates.
On the books, the Group is financially stable and has various sources of regular revenue. The sale of the British joint venture recorded a profit of 9.787 billion yuan. After deducting bank and other loans, the Group held net cash of 21.9 billion yuan on the interim settlement date.
On the interim settlement date, the total amount of bank and other loans of the Group was $43.8 billion, a decrease of $7.6 billion from bank and other loans on December 31, 2025. The repayment period is spread over 10 years: loans maturing within 1 year are $10.1 billion, loans maturing within 2 to 5 years are $29 billion, and loans maturing after 5 years are $4.7 billion.
In terms of impairment, the fair value of real estate investment trusts and investment properties held by the Group decreased by $255 million and $1.46 billion respectively. The value of the associated company Huixian Industrial Trust (087001) was reduced to 6.023 billion yuan.
Li Zeju said in the performance report that the group adheres to the principle of prudence, has financial strength, can respond flexibly to changing business environments, and will rigorously search for potential investment projects and allocate funds in a timely manner to create sustainable returns for shareholders. Furthermore, the Group will continue to explore potential opportunities in Hong Kong and the Mainland.
Referring to the mainland property market, Li Zeju said that China, as one of the world's largest economies, has made significant contributions to world growth. The country promotes scientific and technological innovation and the development of strategic emerging industries, continues to develop new economic momentum, and focuses on boosting domestic demand and promoting global trade and investment. The central government is also committed to stabilizing the property market and has successively introduced various favorable policies in a number of key cities to strengthen market confidence and maintain the steady development of the real estate market.
In the first half of the year, Changshi recorded huge profits due to the sale of British assets, but the group did not pay a special dividend. Wen Jiaqiang, general manager of Changshi's accounting department, pointed out that Changshi's dividend policy is related to financial performance and prospects. The board of directors did not discuss the payment of special dividends, but believes that repurchasing shares is also a way to increase shareholders' long-term value.
Referring to the prospects of the property market, Wen Jiaqiang pointed out that despite many factors affecting the property market and economy, the property market has been growing steadily this year, especially demand for luxury homes. For example, the price of its Borough Road project has reached a record high, and general residential projects are also supported by demand from Hong Kong and the mainland, but if property prices fluctuate or interest rates rise, it will slow down the property market trend.
In terms of property sales, confirmed property sales revenue for the first half of the year (including amortization of joint ventures) was $21.618 billion (2025: $7.366 billion), which mainly includes sales of the residential projects completed in Hong Kong last year — Blue Coast and Blue Coast II; and sales of the remaining units in various completed projects in the mainland.
Property sales revenue increased significantly in the first half of the year compared to the same period last year, mainly due to confirmed sales records for Blue Coast and Blue Coast II. However, the first half of the year's earnings, even after taking into account the provisions already made for the sale of Blue Coast and Blue Coast II in 2025, were not significant.
Changshi's property development profit margin fell to 3.5% in the first half of the year. Wen Jiaqiang explained that the main projects that contributed profits in the first half of the year were Blue Coast and Blue Coast II. Although the land price costs of the two were high, the profit margin of the Borough Road project was still healthy.
In terms of office buildings, Ma Lizhi, member of the Changshi Executive Committee and Finance Committee and general manager of the Enterprise Business Development Department, pointed out that demand in the office market is good, and the cost of the Yangtze River Center Phase II is low, allowing the Group to wait relatively patiently for the recovery of the rental market in Central. Currently, market sentiment in Central China has improved, but it is still difficult outside of Central. We will keep a close eye on the impact of interest rate trends on the market in the future.
Zhao Rucheng, director of Changshi Special Projects, said that the current market is full of uncertainties. The Group will carefully treat existing business and new investment opportunities, make good use of cash, adhere to financial discipline, continue to find projects that can bring stable operating cash flow, and explore investment opportunities in Hong Kong, especially Hong Kong real estate.