China Resources Land’s Core Profit Rises 1.6% as Recurring Businesses Overtake Home Sales

China Resources Land reported first-half 2026 core net profit of 10.16 billion yuan, up 1.6% year on year, even as total revenue fell 28.5% to 67.87 billion yuan and attributable net profit dropped 17.16% to 9.84 billion yuan, according to Jiemian News. The company said recurring businesses, including shopping malls, office buildings, hotels and property management, generated 22.61 billion yuan in revenue, up 9.9%, and 6.65 billion yuan in core net profit, up 10.4%, lifting their share of core profit to 65.5%. Development sales remained under pressure, with revenue down 39.1% to 45.26 billion yuan and settled area down 38.3% to 1.98 million square meters. Contracted sales, however, rose 5.6% to 116.5 billion yuan, while contracted area fell 23.2% to 3.16 million square meters. The company said its gross margin for residential development was 10%, compared with 73.3% for operating property leasing, and overall gross margin improved 1.4 percentage points to 25.4%. Chairman Li Xin said the company had completed an upgrade from a first growth curve centered on residential development to a second growth curve focused on urban investment, development and operations. As of June 30, China Resources Land had 271.18 billion yuan in borrowings, 98.91 billion yuan in cash and a net gearing ratio of 41%. Its weighted average financing cost fell 9 basis points from the end of 2025 to 2.63%. The company added 16 projects in the first half, with 32.49 billion yuan in attributable investment, and 99% of that investment was in first- and second-tier cities. It also said total land reserves reached 39.23 million square meters. The results came after China's Ministry of Housing and Urban-Rural Development, China's Ministry of Natural Resources and China's National Financial Regulatory Administration issued a notice on August 28 to improve the commercial housing sales system, alongside supporting credit and capital market measures. China Resources Land President Xu Rong said the policy could help stabilize new-home supply and prices, protect buyers' rights and push the industry toward quality-led competition.