R&F Properties (02777) has issued a profit warning, projecting a net loss of approximately RMB 5.0 billion to RMB 5.5 billion for the six months ending June 30, 2026. This compares with a net loss of RMB 4.082 billion recorded in the corresponding period of 2025.

The anticipated deterioration in financial performance is primarily attributed to the ongoing downturn in China's real estate sector, which has led to a decline in gross profit margins from property development activities. The company noted that subdued market conditions continue to weigh heavily on its core operations, with persistent weakness in sales and pricing exerting additional pressure on profitability.

Management indicated that the challenging operating environment is expected to persist, with no immediate signs of recovery in the near term. The group remains focused on cost control measures and operational efficiencies to mitigate the impact of the prolonged market slump, while closely monitoring cash flow and liquidity positions to navigate the current headwinds.