KRP DEVELOPMENT (02421) issues profit warning, expecting interim profit attributable to shareholders to fall about 50% year-on-year

KRP DEVELOPMENT (02421) announces that it expects the profit attributable to owners of the Company for the six months ended 30 September 2026 to decrease by approximately 50% compared with the corresponding period in 2025. The decrease is primarily due to the continued adjustment in the PRC real estate market, where market demand remains weak, resulting in a decrease in the Group's property sales scale and revenue recognized upon delivery compared with the same period last year; and, in response to the current market environment, the Group adopted proactive sales pricing strategies for certain projects, resulting in a slight decrease in the Group's overall gross profit margin compared with the same period last year. Notwithstanding the above, the Company's financial position has remained sound since listing, and the Company has consistently maintained a healthy net cash position with no bank borrowings. The Board believes that the Group remains financially sound and operationally resilient.