Sunac China released its 1H 2026 interim results, reporting revenue of RMB 16.35 billion, down 18.2% year-on-year, as contracted sales plunged 56.5% to RMB 10.25 billion.
Net loss attributable to shareholders eased 2.1% to RMB 12.54 billion, while the group remained in a gross loss position of RMB 2.28 billion (loss widened 9.6% YoY). The gross margin stood at ‑14.0% versus ‑10.4% in the prior-year period, reflecting higher impairment on property inventories and lower delivery volume (1.12 million sq.m., down 33.8%).
Segment snapshot • Property development generated RMB 10.90 billion revenue (-22.1% YoY). • Property management arm Sunac Services posted RMB 3.17 billion revenue (-9.0% YoY) and profit attributable to owners of RMB 0.12 billion (+2.0% YoY). • Cultural & tourism operations delivered RMB 1.83 billion revenue (-15.7% YoY).
Balance-sheet metrics • Total borrowings fell by RMB 2.08 billion since end-2025 to RMB 186.18 billion; 98% are secured. • Cash and restricted cash declined to RMB 9.78 billion from RMB 12.01 billion six months earlier. • Net debt/total capital (gearing) rose to 81.8% (end-2025: 79.1%). • Total equity decreased to RMB 39.24 billion; equity attributable to owners stood at RMB 28.49 billion. • Land bank remained sizeable at 104 million sq.m., with 72.26 million sq.m. attributable.
Liquidity and restructuring update The group completed its offshore debt restructuring in December 2025 and its onshore public bond extension programme in January 2025, reducing near-term repayment pressure. Outstanding borrowings of approximately RMB 116.28 billion were overdue at 30 June 2026; Sunac is negotiating extensions and asset-backed solutions. Cash conservation measures include cost controls, organisational flattening and asset revitalisation in cooperation with asset-management companies and partners.
Auditor’s view BDO Limited issued a disclaimer of conclusion on the interim financial information, citing multiple uncertainties surrounding going-concern assumptions, including large overdue borrowings, litigation exposure (circa RMB 256.90 billion claimed), and reliance on successful completion of further debt extensions and asset-revitalisation plans.
Post-period events • On 20 July 2026 the company granted 284.56 million shares (1.43% of issued share capital) under its employee stock ownership plan. • On 24 August 2026 Sunac agreed to acquire 100% of Erjin Construction Management for RMB 123.15 million, to be settled via issue of 260.26 million new shares.
No interim dividend was declared.