Shenzhen Investment (00604) has released its interim results for the 2026 fiscal year, posting revenue of approximately HK$10.139 billion, a year-on-year decline of 2.04%. Gross profit came in at around HK$1.428 billion, down roughly 19.48% from the prior corresponding period, with an overall gross margin of approximately 14.08%.

The company recorded a loss attributable to equity shareholders of about HK$1.986 billion, narrowing by 24.15% year-on-year, translating to a loss per share of 22.32 HK cents. During the first half, contracted sales amounted to approximately RMB 5.966 billion (equivalent to around HK$6.759 billion), representing a decline of about 8.54% year-on-year. Contracted sales area reached roughly 261,800 square meters, down 12.73% year-on-year. This achievement represents about 52% of the full-year sales target of HK$13 billion, with overall progress aligning with annual operational expectations.

Looking back at the reporting period, the company's overall operational performance was primarily impacted by the cyclical adjustment within the property development industry. Firstly, due to the persistent deep correction in the real estate sector and the challenging macro environment, industry demand and market conditions have come under notable pressure. Consequently, the scale of the company's property development business settlements contracted, leading to year-on-year declines in both corresponding operating revenue and gross margin. Secondly, in a prudent response to the ongoing downturn in the property market, and adhering to principles of stable operations and proactive risk management, the company conducted a thorough assessment of the net realisable value of its inventories during the period, resulting in a total inventory impairment provision of approximately HK$1.122 billion. Thirdly, affected by the industry downturn and project operational performance, certain associates and joint ventures incurred operating losses during the period, collectively impacting the company's current-period results by approximately HK$223 million.

While the aforementioned factors have placed阶段性 pressure on the company's current profitability, they have effectively released risks associated with existing assets, further consolidating the overall quality of the company's asset base and optimising its asset structure. This lays a solid operational foundation for the company to move forward unburdened and achieve stable, sustainable development. Amidst the pressure on traditional development operations, the company's property asset management and integrated urban operations segments have maintained stable performance, improving quality against the trend. Their overall operating revenue achieved year-on-year growth, serving as a key stabilising force supporting the company's core business fundamentals.