Kaisa Group reported a narrower interim net loss as lower-margin projects were curtailed, yet funding pressure persisted.

Revenue fell 40.6 % year-on-year to RMB 2.20 billion, driven mainly by a 65.8 % drop in property sales to RMB 714.84 million. Despite the top-line contraction, gross profit increased 22.7 % to RMB 567.78 million, lifting gross margin to 25.8 % from 12.5 %.

Loss attributable to shareholders narrowed to RMB 9.33 billion from RMB 10.03 billion. The result was weighed by RMB 3.94 billion of net other losses—including RMB 5.02 billion of inventory write-downs—and a RMB 1.25 billion net finance charge. Impairment provisions on financial assets and guarantees totalled RMB 3.21 billion.

No interim dividend was declared.

Contracted sales (including joint ventures and associates) jumped to RMB 11.51 billion from RMB 2.00 billion, with 84 % generated in the Greater Bay Area. The period’s completed-and-delivered GFA declined to 0.09 million sq m versus 0.11 million sq m a year earlier.

Cash and bank balances (excluding restricted funds) fell to RMB 372.07 million from RMB 544.69 million at year-end. Restricted cash earmarked for project delivery stood at RMB 822.09 million. Total borrowings edged up to RMB 84.53 billion; of this, RMB 35.33 billion is due within 12 months, while RMB 29.33 billion was already in default or cross-default as at 30 June. Net finance costs eased 3.7 % to RMB 1.25 billion following debt-extension efforts.

Key leverage metrics deteriorated: the liabilities-to-assets ratio (excluding contract liabilities) rose to 93.6 % from 88.6 % and the cash-to-short-term-debt ratio slipped to 0.01. Quick ratio remained at 0.03.

Land bank totalled 19.0 million sq m across 41 cities, with 64.5 % located in the Greater Bay Area. Total assets under development were 5.9 million sq m across 54 ongoing projects.

During the half-year, Kaisa issued 1.82 billion new shares to settle US $69.84 million of cash interest on its restructured notes. Mandatory convertible bonds outstanding (US $6.29 billion) could translate into a maximum 11.95 billion shares—equivalent to 104.55 % of current share capital—if fully converted between 2026 and 2032.

Management continues to prepare cash-flow plans centred on project deliveries, asset sales and further debt-extension talks. Auditors highlighted material uncertainties about going-concern status, but the board said existing plans should provide sufficient liquidity for the next 12 months.