Powerlong reports deepening half-year loss as real estate downturn bites

Powerlong Real Estate Holdings Limited reported a loss attributable to owners of the company of RMB2,652 million for the six months ended June 30, 2025, a slight increase from RMB2,623 million in the corresponding period of 2024. Basic loss per share stood at RMB64.1 cents. Total revenue decreased by 15.3% to RMB13,251 million, primarily due to a 17.9% drop in property sales revenue to RMB10,693 million. Contracted sales for the period also fell significantly to RMB3,723 million, down from RMB7,332 million in H1 2024.

The group's liquidity position remains a concern, with total borrowings of RMB56,111 million against RMB7,327 million in cash and cash equivalents as of June 30, 2025, resulting in a net gearing ratio of 104.1%. Fair value losses on investment properties increased to RMB1,721 million, exacerbating the financial downturn. The auditor also highlighted material uncertainties regarding the group’s ability to continue as a going concern, noting various defaults on indebtedness and a pending liquidation application against a subsidiary.

In efforts to mitigate the situation, Powerlong is pursuing debt restructuring, accelerating property sales, disposing of equity interests in projects, and implementing stringent cost controls. No interim dividend was declared for the period.