Ever Reach Group (Holdings) Company Limited released its 2026 interim report, revealing a sharp contraction in revenue and modest profitability amid the continued downturn in China’s property market.

Financial Performance • Revenue fell 49.4% year on year to RMB802.58 million, driven by lower property deliveries (145,269 sq m, –52.7%). • Gross profit decreased 29.6% to RMB82.85 million, yet the gross margin improved to 10.3% (2025 interim: 7.4%) owing to higher average selling prices on commercial units. • Net profit attributable to shareholders declined to RMB5.02 million; total net profit stood at RMB2.75 million versus RMB3.40 million a year earlier. • Selling and marketing expenses dropped 18.2% to RMB30.90 million; administrative expenses fell 19.9% to RMB34.38 million. • Net finance cost was contained at RMB0.35 million after capitalising RMB15.79 million of interest. • No interim dividend was declared.

Balance Sheet and Liquidity • Cash and cash equivalents increased to RMB169.98 million (31 Dec 2025: RMB135.03 million); restricted deposits stood at RMB197.18 million. • Total borrowings were RMB765.28 million, with 51.9% at fixed rates; gearing ratio improved to 56.8% (31 Dec 2025: 61.3%). • Net current assets edged up to RMB1.45 billion; current ratio rose to 1.4. • Contract liabilities, reflecting presales yet to be recognised, declined to RMB1.60 billion (31 Dec 2025: RMB2.02 billion).

Operational Highlights • Land bank contracted to 2.2 million sq m (31 Dec 2025: 2.6 million sq m). • Cumulative contracted sales totalled RMB564.0 million, of which residential accounted for RMB471.6 million. Contracted ASP for residential units was RMB5,395/sq m (–0.4% YoY). • Completed and delivered area reached 175,100 sq m, mainly from projects in Xuchang’s central districts and counties. • The Group disposed of a 51% stake in Xuchang Jiari and a 70% stake in Xuchang Yuanda, recording a disposal gain of RMB2.79 million and a loss of RMB0.39 million respectively. • Management continued to streamline operations, delegating authority to project level, curbing non-essential spending, and prioritising cash collection.

Market Context National real-estate investment fell 18.0% in 1H 2026, while Henan province, Ever Reach’s core market, saw a 12.3% drop. The Group cited weak demand, elevated inventory and tighter credit as key headwinds but expects policy support and supply contraction to gradually stabilise market conditions.

Outlook Ever Reach plans to maintain a “cash-first” strategy, accelerate inventory clearance, control new land additions and focus on cost-efficiency and project delivery. Management will rely on bank negotiations, related-party funding support and policy tailwinds to navigate the prolonged industry adjustment cycle.

Audit & Governance The interim figures are unaudited; the audit committee has reviewed the report. The Company affirmed compliance with Hong Kong’s Corporate Governance Code and Model Code requirements, with no repurchases or share issues during the period.