KWG Group Holdings Limited released its unaudited interim results for the six months ended 30 June 2026, highlighting a sharp contraction in top-line performance and continued pressure on profitability.

Revenue declined 50.4% year-on-year to RMB 1.88 billion, driven chiefly by a 60.0% slide in property-development income to RMB 1.23 billion. Investment-property rental income fell 15.5% to RMB 343.12 million, and hotel-operation revenue was broadly stable at RMB 309.40 million, down 1.4%.

Cost of sales contracted 57.1% to RMB 1.59 billion, reflecting lower delivery volume, yet gross profit still improved to RMB 295.49 million from RMB 93.48 million a year earlier as higher-margin segments helped offset reduced scale.

Operating pressures remained substantial: • Selling and marketing expenses dropped 37.8% to RMB 212.68 million. • Administrative expenses decreased 29.9% to RMB 450.00 million after organisational streamlining. • Other operating expenses rose to RMB 378.91 million due to property impairments and foreign-exchange losses. • Net fair-value loss on investment properties expanded to RMB 373.89 million.

Finance costs stood at RMB 991.07 million, little changed year-on-year. Share of losses from joint ventures widened to RMB 1.43 billion, mainly on increased bad-debt provisions. After a tax credit of RMB 740.03 million, the Group recorded a net loss attributable to shareholders of RMB 2.56 billion, versus RMB 2.05 billion in the prior-year period.

Liquidity remained tight: cash and bank balances were RMB 719.30 million at period-end, against current borrowings of RMB 50.42 billion. Total interest-bearing debt was RMB 72.18 billion, and the net-debt-to-equity ratio deteriorated to 1,299.7% (31 Dec 2025: 1,098.0%). The company disclosed RMB 53.51 billion of offshore senior notes and other borrowings in default or cross-default as of 30 June 2026 and is pursuing a comprehensive debt-restructuring plan under a Restructuring Support Agreement signed with an ad-hoc group of creditors on 15 June 2026.

Operationally, KWG Group delivered approximately 145,308 sq m of gross floor area (down from 348,103 sq m) and achieved pre-sales of RMB 2.05 billion on 91,000 sq m at an average RMB 22,527 per sq m, with around 80% contributed by projects in the Greater Bay Area. The company maintained a land bank of 10.99 million sq m (attributable basis, 76% ownership) across 42 cities.

Management stated that industry conditions remain challenging and outlined three near-term priorities: accelerating asset sales and cash collection, ensuring on-time project delivery, and completing onshore and offshore debt restructurings. No interim dividend was declared.