China Resources Land Posts H1 2026 Net Profit of RMB 9.84 Billion with Contracted Sales of RMB 116.5 Billion Ranking Third in the Industry
nashnova research
China Resources Land booked RMB 9.84 billion in attributable profit and RMB 116.5 billion in contract sales — ranking third industry-wide — while recurring income now accounts for a third of revenue, leaving the 10% development margin as the key variable ahead.
How much did it earn in the first half?
Total revenue reached RMB 67.87 billion; attributable profit was RMB 9.84 billion, or RMB 1.38 per share.
Strip out fair-value gains on investment properties and the core net profit is RMB 10.16 billion, or RMB 1.42 per share — this figure removes paper gains and better reflects actual earning power.
The interim dividend stays flat at RMB 0.20 per share (approximately HKD 0.231), payable October 28.
Where does the money come from?
Development sales (selling homes): revenue of RMB 45.26 billion at a gross margin of just 10.0%. This means → for every RMB 100 of property sold, only RMB 10 is left as gross profit — razor-thin.
Rental income (shopping malls, offices): revenue of RMB 14.16 billion at a 73.3% gross margin. In plain terms = rental income is nearly all profit, with very low costs.
Asset-light management fees (CR Mixc Lifestyle and similar): revenue of RMB 8.45 billion at a 38.0% gross margin.
Recurring businesses (rental + management fees) totalled RMB 22.61 billion, up 9.9% year-on-year and now 33.3% of total revenue. This reflects a deliberate pivot from "selling homes" toward "collecting rent and fees."
How are property sales holding up?
First-half contract sales hit RMB 116.5 billion over 3.16 million square metres, ranking third in the industry.
Contracted-but-unsettled development revenue stands at RMB 188.19 billion; roughly RMB 97.28 billion is expected to settle in the second half of 2026.
This means → nearly RMB 100 billion of second-half revenue is already locked in, giving short-term earnings relatively high visibility.
Is the balance sheet solid?
Total borrowings: RMB 271.18 billion. Cash on hand: RMB 98.91 billion. Net gearing: 41.0%.
Weighted-average funding cost fell to 2.63%, down 9 basis points from end-2025 — the company says this remains the lowest in the sector.
In plain terms = borrowing costs are falling, nearly RMB 100 billion sits in cash, and leverage is moderate — by current property-sector standards, these are top-of-class financials.
What is the one thing to watch next?
The core question is singular: can the development segment's 10% gross margin recover?
Recurring-business core net profit reached RMB 6.65 billion, lifting its share of total core profit by 5.3 percentage points year-on-year to 65.5% — "rent + fees" now underpins nearly two-thirds of core earnings.
This means → even if home-selling margins stay under pressure, recurring income is an increasingly heavy ballast — but whether the development margin can repair as the settlement mix improves will determine how far overall profitability can go.
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