Yuexiu Property Company (123) investor relations material

Executive summary

• Contracted sales value reached RMB50.51 bn in 1H 2026, ranking 8th nationwide, with 84.5% of sales from six core cities and 80.7% from existing inventory.

• Focused on high-quality land acquisitions, adding 0.68 million sq.m. to the landbank, and asset optimization through disposal of non-core assets.

• Property management and construction technology businesses achieved double-digit revenue growth and expanded market presence.

• Maintained investment-grade credit ratings and strong liquidity, with net cash inflows from operating activities of RMB13.77 bn.

• S&P and Fitch maintained BBB- investment grade ratings with stable outlook.

Financial highlights

• Revenue for 1H 2026 was RMB36.65 bn, down 23% year-over-year; gross profit margin declined to 6.2%.

• Profit attributable to equity holders dropped 93.6% year-over-year to RMB0.09 bn; core net profit fell 94.6% to RMB0.08 bn.

• SG&A expenses reduced by 24.8% year-over-year, with a rate of 4.3%.

• Interim dividend payout ratio maintained at 40% for the 15th consecutive year; HKD0.009 per share declared.

• Gross profit was RMB2.27 bn, down 55.2% year-over-year.

Outlook and guidance

• Targets RMB100 bn in sales for 2026, with RMB215.7 bn in saleable resources and RMB30 bn equity investment premium.

• Strategy focuses on inventory reduction, precise investments in six key cities, and risk mitigation through liquidity management.

• Plans to maintain low financing costs and investment-grade ratings while optimizing debt structure.

• Focus remains on property development in core cities, urban renewal, and high-quality growth.

• Continued emphasis on innovation, operational refinement, and achieving full-year targets.