Zensun Enterprises Limited reported interim revenue of RMB 357.39 million for the six months ended 30 June 2026, down 86.4 % year-on-year, reflecting sharply reduced property handovers in mainland China. Despite the steep top-line contraction, loss attributable to owners narrowed 40.0 % to RMB 301.17 million, aided by smaller inventory write-downs and tighter cost control. Basic loss per share improved to RMB 15.7 cents from RMB 26.2 cents.
Operating performance • Gross profit fell 49.6 % to RMB 30.00 million, yet the gross margin widened to 8.4 % (H1 2025: 2.3 %) as cost of sales decreased faster than revenue. • Net other losses shrank to RMB 67.60 million (H1 2025: RMB 270.21 million), primarily due to a lower write-down on properties (RMB 99.38 million vs RMB 268.52 million a year earlier) and a RMB 19.43 million fair value gain on financial assets. • Finance costs rose 19.0 % to RMB 183.65 million as fewer interest expenses were capitalised into projects under development. • Administrative and selling expenses were cut by 24.8 % and 10.8 %, respectively, reflecting ongoing cost-containment measures.
Segment snapshot • Property development in the PRC generated RMB 309.29 million of revenue (-88.0 %) and a RMB 345.44 million loss, hurt by reduced gross floor area (GFA) deliveries and continued market weakness. • Project management services recorded RMB 5.71 million revenue and RMB 0.76 million profit. • Hotel operations contributed RMB 17.72 million revenue and RMB 10.54 million profit. • U.S. property investment via American Housing REIT posted RMB 5.54 million revenue but slipped to a RMB 1.34 million loss on fair-value declines. • Other property investments produced RMB 12.50 million revenue and RMB 3.15 million profit. • Securities trading and investment swung to a RMB 26.02 million profit, supported by fair-value gains.
Balance sheet and liquidity • Cash, restricted cash and pledged deposits totalled RMB 759.45 million at 30 June 2026 (31 Dec 2025: RMB 666.62 million). • Current borrowings stood at RMB 12.94 billion; total debt was RMB 13.79 billion. • Net debt edged down to RMB 13.03 billion; gearing ratio was 39.6 % (31 Dec 2025: 40.6 %). • Equity attributable to owners turned negative at RMB 20.61 million, versus RMB 44.08 million positive six months earlier. Group net assets declined to RMB 37.72 million. • Properties under development and completed units held for sale totalled RMB 27.97 billion. Contract liabilities reached RMB 9.55 billion. • Capital commitments for ongoing projects amounted to RMB 2.89 billion.
Going-concern risks Zensun acknowledged material uncertainties over its ability to continue as a going concern. As at period-end, principal and interest of RMB 4.83 billion on US-dollar senior notes and other borrowings were in default or cross-default following missed repayments in 2023-2025. Management is negotiating with creditors, seeking new financing, accelerating property sales, tightening costs and exploring repayment rescheduling.
Dividend No interim dividend was declared.
Outlook Management expects mainland China’s property market to remain subdued and will prioritise cash generation, cost discipline and selective project development while continuing discussions with lenders and noteholders. The company will also pursue light-asset project-management mandates and review its U.S. real-estate and securities portfolios to enhance liquidity and returns.