Ronshine China Holdings Limited posted a sharp contraction in first-half 2026 results, with revenue plunging 62.35% year on year to RMB 798.91 million and gross profit shrinking 91.67% to RMB 47.02 million. Gross margin fell to 5.89% from 26.61% a year earlier.

The developer logged a net loss attributable to shareholders of RMB 1.56 billion, narrower than the RMB 1.83 billion loss in the prior-year period, but total comprehensive loss reached RMB 1.92 billion. Contracted sales slid 38.62% to RMB 1.29 billion on a 39.70% drop in contracted gross floor area to 113,105 sq m.

Balance-sheet pressure intensified. Total assets dropped 3.88% to RMB 78.03 billion while total liabilities edged up to RMB 89.08 billion, leaving shareholders’ equity at a negative RMB 23.28 billion. Cash and bank balances stood at RMB 2.33 billion against total borrowings of RMB 35.95 billion, of which RMB 33.19 billion are due within 12 months. The current ratio deteriorated to 0.70 and net current liabilities widened to RMB 25.75 billion.

The company confirmed it has not repaid principal or interest on six offshore senior notes totaling RMB 14.04 billion and that RMB 27.10 billion of onshore borrowings are in default. Haitong International Capital has been appointed to lead an overseas debt restructuring after the completion of an onshore bond workout, while negotiations continue with lenders for renewals and extensions.

Operating cash flow was positive at RMB 2.96 billion, but was outweighed by a RMB 2.17 billion financing outflow driven by capital reductions and dividend payments to non-controlling interests. Restricted cash fell to RMB 0.87 billion from RMB 1.39 billion at year-end 2025.

Ronshine China held a land bank of 16.26 million sq m at end-June, with 85.16% located in tier-one and tier-two cities; average land cost was RMB 8,750 per sq m. The developer is prioritising projects in the Yangtze River Delta and West Coast of the Taiwan Strait, and is curbing land acquisitions amid market weakness.

No interim dividend was declared. The board highlighted “material uncertainty” over the group’s ability to continue as a going concern but said liquidity will rely on asset sales, project cash collection, cost control and debt restructuring.

Governance matters also tightened: the resignation of an independent non-executive director on 1 September 2026 left the company temporarily out of compliance with Hong Kong listing requirements for board and committee composition, with a replacement to be appointed within three months.