Guangzhou R&F Properties Co., Ltd. (“R&F Properties”) expects to post a net loss of approximately RMB5.00 billion–RMB5.50 billion for the six months ended 30 June 2026, according to a profit-warning filed with the Hong Kong and Shanghai stock exchanges on 26 August 2026. The projected loss equals roughly 83.91%–92.30% of the company’s RMB5.96 billion net assets recorded at end-2025. Management attributes the downturn to continued compression of gross margins in China’s property development market.

To mitigate the impact, R&F Properties plans to accelerate pre-sales, speed up conversion of saleable inventory into cash and continue the disposal of domestic and overseas assets deemed market-attractive. The group is currently preparing its 2026 interim results, which will be released in accordance with Shanghai Stock Exchange bond-disclosure rules.

Separately, the company detailed the latest developments on its first 2020 targeted debt-financing instrument (bond code: 032000374, “20RFPropertiesPPN001”), originally issued for RMB1.00 billion with a six-year tenor and investor put options at years two and five. The outstanding principal stands at RMB994.57 million. Principal and interest of RMB1.14 billion fell due on 23 April 2025 and 31 May 2025 but remain unpaid.

The Guangzhou Intermediate People’s Court has now ordered R&F Properties to repay Bank of Jiujiang RMB384.57 million in principal and RMB24.23 million in interest within ten days of the judgment’s effective date, plus daily liquidated damages of 0.021% on the overdue amount until settlement. Other claims were dismissed. The company must also bear a case-acceptance fee of RMB2.21 million.

R&F Properties stated it is “making every effort to maintain daily operations,” will continue negotiations with noteholders and aims to secure funds through multiple channels to meet its debt obligations and minimise operational disruption. The company pledged to update the market in a timely manner and cautioned investors to pay attention to related risks.