Shenzhen Zhenye Group Co Ltd

Shenzhen Zhenye Group disclosed its 2026 semi-annual report on August 26. In the first half, total operating revenue was 796 million yuan, down 57.70 percent year on year. Net loss attributable to the parent was 95.73 million yuan, compared with a loss of 70.98 million yuan in the same period last year, widening the loss. Net loss after deducting non-recurring items was 98.87 million yuan, compared with 75.63 million yuan a year earlier. Net cash flow from operating activities was 444 million yuan, down 38.96 percent year on year. Basic loss per share was 0.0709 yuan, and weighted average return on net assets was negative 1.80 percent. The company's main business is real estate development and operation. As of the end of the first half, the book value of inventory was 10.24 billion yuan, accounting for 194.46 percent of net assets, of which inventory write-down provisions were 1.757 billion yuan, with a provision ratio of 14.64 percent.

Shenzhen Zhenye Group released its half-year report on August 26. First-half operating revenue was 796 million yuan, down 57.70 percent year on year, while net profit attributable to the parent company showed a loss of 95.7314 million yuan, widening by 34.88 percent from a year earlier. In the first quarter, the company had reported attributable net profit of 7.5274 million yuan, a year-on-year turnaround, but a second-quarter loss of 103 million yuan wiped out that first-quarter profit. The company attributed the revenue decline mainly to a smaller carry-over scale. Property sales revenue was 724.9 million yuan, accounting for 91.02 percent of the total and falling 59.93 percent year on year. The period expense ratio climbed from 10.53 percent to 22.85 percent, financial expenses rose 6.96 percent year on year, and asset impairment losses of 68.2379 million yuan further eroded profit. The company plans to focus on the Guangdong-Hong Kong-Macao Greater Bay Area and accelerate the sell-down of existing projects. Its 2026 budget revenue target is no less than 2.5 billion yuan, but the first-half completion rate was less than 32 percent.

Shenzhen Zhenye Group disclosed its earnings forecast, projecting a net loss attributable to the parent company of 80 million to 120 million yuan for the first half of 2026, compared with a loss of 70.9766 million yuan in the same period last year. The net loss after deducting non-recurring items is also expected to be 80 million to 120 million yuan, versus a loss of 75.6277 million yuan a year earlier. The company stated that the loss is mainly due to a year-on-year decline in the carry-over scale of its real estate business and low gross margins, while it also made provisions for inventory write-downs based on the principle of prudence. Based on the latest closing price, the company's price-to-book ratio is about 1.63 times, and its price-to-sales ratio is about 5.73 times.