Central China Management Company Limited (CCMGT) reported a sharp downturn for the six months ended 30 June 2026, moving from a RMB 37.03 million profit a year earlier to a RMB 25.99 million net loss. The reversal was driven by a 55.8% plunge in revenue to RMB 61.68 million, reflecting the sustained contraction in China’s property-management market and slower project progress.
Impairment charges on trade and other receivables and contract assets remained heavy at RMB 45.34 million, up 3.1% year on year, underscoring persistent credit-risk pressure across the domestic real-estate sector. Personnel expenses fell 26.2% to RMB 25.28 million after tighter performance appraisals, partly offsetting higher professional fees that pushed other operating costs up 39.1% to RMB 27.16 million.
Operating cash flow stayed resilient. Cash and cash equivalents edged up to RMB 2.58 billion, and the group remained debt-free, leaving the gearing ratio at nil. Net assets stood at RMB 2.58 billion. Trade and other receivables dropped 16.0% since year-end 2025 to RMB 371.41 million, while contract assets declined 9.1% to RMB 79.03 million. Trade and other payables climbed 8.0% to RMB 263.39 million, reflecting cautious liquidity management.
The board declared no interim dividend.
Capital-raising activity continued. In May 2023 CCMGT completed share subscriptions that delivered RMB 247.0 million in net proceeds, of which RMB 12.4 million had been deployed by 30 June 2026, mainly for working capital. Post-period, on 14 August 2026 the company closed a further share placement to Star Bliss Investment and Regulus Culture, raising net proceeds of HK$69.2 million earmarked for distressed-asset project management initiatives, digital platform development, and Hong Kong operating needs.
Operationally, CCMGT managed 222 projects totaling 28.1 million sq m at period-end after signing five new mandates (374,500 sq m). Projects under management generated contracted sales of RMB 3.68 billion, down 32.8% year on year, with sales volume falling 23.7% to 0.7 million sq m. The group continues to focus on Henan—where 24.7 million sq m, or 88% of managed GFA, is located—while selectively pursuing opportunities across the broader Central China region.
Management emphasised a strategic pivot toward distressed-asset revitalisation, expanded government project mandates, and an AI-driven digital upgrade of project-management systems. Utilisation of remaining IPO and 2023 subscription proceeds, together with the 2026 fundraising, is scheduled through 2027 to support these initiatives.
Basic and diluted losses per share were RMB 0.71 cents, compared with earnings of RMB 0.94 cents and RMB 0.93 cents respectively in the prior-year period.