Logan Group reports significant loss, revenue plummets 75.8% amid property downturn

Logan Group reported a net loss of RMB1,959.7 million for the six months ended June 30, 2025, an increase from RMB1,800.1 million in the comparative period of 2024. Revenue for the period significantly decreased by 75.8% to RMB3,401.0 million, down from RMB14,053.3 million in the first half of 2024. This downturn was largely attributed to a low gross profit margin due to the continued slump in the real estate industry and provisions for inventory impairment. Contracted sales amounted to RMB3,975.2 million, with the Greater Bay Area contributing 53.5% of sales.

The Group's total assets decreased by 2.5% to RMB207,215.8 million as of June 30, 2025, compared to RMB212,585.9 million at the end of 2024. Total liabilities also saw a reduction to RMB183,697.1 million from RMB187,780.7 million. Cash and bank balances, however, increased by 3.5% to RMB8,952.6 million. The company is actively pursuing a holistic debt restructuring proposal for its offshore debt, having reached an agreement with certain offshore creditors and secured consent from over 80.8% of the aggregate principal amount of part of the Group's offshore debt as of February 27, 2025.

Management has identified a material uncertainty regarding the Group's ability to continue as a going concern, contingent on the successful renewal or restructuring of its debts, acceleration of property sales, and disposal of assets. No interim dividend was recommended for the six months ended June 30, 2025.