Central China Real Estate (00832) has issued a profit warning, projecting a loss attributable to equity shareholders of approximately RMB 1.6 billion to RMB 1.9 billion for the six months ending June 30, 2026. This compares to a loss of about RMB 1.3 billion recorded in the same period of the previous year.

The anticipated loss is primarily driven by the combined effects of macroeconomic conditions and the ongoing adjustment in the real estate market. On one hand, adhering to the principle of prudence, the group conducted impairment tests on inventories, receivables, and interests in joint ventures and associates, consequently making corresponding impairment provisions. Notably, given the planned disposal of its cultural tourism project in the second half of the year, which is expected to incur a disposal loss, the company has proactively made relevant impairment provisions in the first half.

On the other hand, revenue and gross profit recognized from the real estate business declined year-on-year, failing to adequately cover the group's various costs and operating expenses.