China's Redco Properties interim net loss widens sharply on higher finance costs

Redco Properties

28/08/2026 15:58

Overview
China property developer's interim revenue rose yr/yr, net loss attributable widened sharply
Company faces liquidity pressure with overdue borrowings and senior notes in default
Redco pursuing debt restructuring plans to address financial obligations

Outlook
Redco Properties Group did not provide specific guidance for the current qtr or full yr

Result Drivers
BORROWING-COST CAPITALISATION – Loss widened as project slowdowns and suspensions reduced borrowing costs eligible for capitalisation, lifting finance costs to RMB844.7 mln from RMB311.9 mln
 
PROPERTY DELIVERY VOLUMES – H1 revenue rose 31.7% as delivered GFA increased 87.0% to 146,525 sq.m., partly offset by a 23.9% decline in recognised ASP
 
HIGHER-MARGIN PROJECT MIX – Gross profit swung to RMB25.4 mln from a RMB57.1 mln loss, aided by higher delivery revenue and projects with relatively higher margins
 
DEFERRED TAX WRITEDOWN – Income tax expense rose to RMB73.7 mln from RMB1.3 mln as the group wrote down deferred tax assets on unused losses at certain project companies

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
H1 Revenue
 
RMB 1.30 bln
 
H1 Net Loss Attributable
 
RMB 1.37 bln
 

Analyst Coverage
The stock recently traded at 0 times the next 12-month earnings vs. a P/E of 0 three months ago

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Press Release s3://eap-prd-eu-west-1-source-content/eap_feed_proxy/fingerpost/HKSW/2026-08-28/57a75bba-90bd-48e6-ae7a-aaea66500186.file
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)