Longfor Group's H1 2026 Contracted Sales Drop 52.7% as Operations and Services Revenue Rise

The announcement said that as the property market remains in an adjustment phase, the company is focusing on inventory reduction, leading to continued decline in settlement revenue from property development and pressure on settlement gross margins. Over the past few years, the group has deeply integrated business model transformation with debt structure optimization to promote high-quality development.

The announcement shows that in the first half of 2026, the group's operations and services businesses maintained steady growth, continuing to contribute stable cash flow and profit; the group achieved positive operating cash flow including capital expenditure, steadily reduced its debt scale, and further optimized its financing structure, financing costs, and contract borrowing terms. The group stated that it will adhere to the bottom line of financial security, reduce debt in an orderly and steady manner, maintain positive operating cash flow, and actively promote steady growth in operations and services businesses.

In terms of sales data, in the first half of 2026, Longfor Group achieved cumulative total contracted sales of RMB 16.55 billion, down 52.73% from RMB 35.01 billion in the same period of 2025; contracted sales area was 1.75 million square meters. Among them, June alone achieved contracted sales of RMB 2.88 billion, with contracted sales area of 299,000 square meters; in June, contracted sales attributable to shareholders of the company were RMB 1.90 billion, with attributable contracted sales area of 209,000 square meters.

In terms of operations and services revenue, the first half of 2026 achieved approximately RMB 13.7 billion (including tax approximately RMB 14.61 billion), an increase of 3.24% from RMB 13.27 billion in the same period of 2025. Among them, operations revenue was approximately RMB 7.3 billion (including tax approximately RMB 7.82 billion), and services revenue was approximately RMB 6.4 billion (including tax approximately RMB 6.79 billion). In terms of land reserves, in the first half of 2026, the group acquired a total of four land parcels, with equity land cost of RMB 1.36 billion; among them, in June, it added a land parcel in Lanzhou, Gansu Province, with total gross floor area and equity gross floor area of 45,300 square meters, and equity land cost of RMB 121 million.