Huafa Property Development Revenue Falls 51.8% to RMB16.63 Billion
Huafa Industrial (600325. SH), a Zhuhai state-owned developer, reported a 51.8% year-on-year drop in property development revenue to RMB16.63 billion in the first half of 2026. Development gross margin fell to 3.6%, down 11.2 percentage points, while operating cash flow turned negative. The controlling shareholder plans a private placement to inject funds as the company accelerates asset sales.
Huafa Industrial (600325. SH), a real estate developer under Zhuhai state-owned assets, released its interim financial report for 2026 on August 31. In the first half of the year, revenue from property development fell 51.8% year on year to RMB16.63 billion, while related costs declined 45.4% to RMB16.03 billion. This implies a development gross margin of approximately 3.6%, down 11.2 percentage points from a year earlier.
During the period, gross profit from development activities decreased by RMB4.5 billion year on year, and sales dropped 56%. The company accelerated the disposal of existing assets to recover cash, while its controlling shareholder plans to inject funds through a private placement. Meanwhile, operating cash flow turned into a net outflow.
Among local state-owned developers that have published 2026 interim results, Shougang Development reported a property development gross margin of about 5.8%, Tianjian Group around 10.9%, and Yuexiu Property approximately 8.6%.
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The event has a measured impact on 1 industry. The strongest current signal is negative for Residential Development, with intensity 80/100 and 90% confidence over a short term horizon.
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