Longfor Group Shares Reach Record Low After Dividend Suspension

Longfor Group shares fell to a record low of HK$4.955 as investors reacted to declining contract sales and the property developer's decision to eliminate its interim dividend for 2026. This move is a change from the prior-year period, signaling strain on the company's capital allocation as the Chinese real estate sector navigates a prolonged downturn.

For the nine months ended September 30, 2026, Longfor reported cumulative total contract sales of RMB 231.4 billion. September performance contributed RMB 23.0 billion toward that total, reflecting pressure on transaction volumes across the developer's portfolio.

Financial Performance Comparison

The decision to suspend the interim dividend is a reversal from the company's recent historical payouts. In the prior-year period, the board declared an interim dividend of RMB 0.07 per share. The removal of this payout follows a period of contraction in the firm's core financial metrics.

During the first half of 2026, the company's financial results highlighted the following downward trends:

• Revenue: Declined to RMB 39.8 billion.
• Net Profit: Profit attributable to shareholders fell to RMB 1.96 billion.

What Is at Stake for Shareholders

The suspension of dividends is a signal to shareholders regarding the company's current liquidity priorities. In the context of the broader Chinese property market, developers have shifted toward debt management and cash preservation as revenue from pre-sales slows. For Longfor, the pivot away from dividend distributions underscores a focus on maintaining operational liquidity over returning capital to equity holders amidst volatile market conditions.

As the company moves into the final quarter of the fiscal year, the ability to stabilize contract sales remains a primary concern for market participants. The record-low valuation reflects investor skepticism regarding the timing of a recovery in the property sector and the potential for a resumption of shareholder returns in the near term.