Yuexiu Property Company (123) H1 2026 earnings summary

Executive summary

• Revenue for H1 2026 was RMB36.65 billion, down 23% year-over-year, with gross profit margin at 6.2% and profit attributable to equity holders down 93.6% to RMB0.09 billion; core net profit dropped 94.6% to RMB0.08 billion.

• Contracted sales value reached RMB50.51 billion, ranking 8th nationwide, with 84.5% of sales from six core cities; contracted sales GFA rose 16.2% as ASP declined 29.5%.

• Focused on high-quality land acquisitions, asset optimization, and disposal of non-core assets, with 96.8% of new investments in six core cities.

• 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 billion.

Financial highlights

• Recognised sales value was RMB33.38 billion, down 24.2% year-over-year; gross profit was RMB2.27 billion, down 55.2%; gross profit margin declined to 6.2%.

• Profit attributable to equity holders dropped 93.6% to RMB0.09 billion; core net profit fell 94.6% to RMB0.08 billion.

• 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.

• Unrecognised sales value stood at RMB132.44 billion, up 0.3% from the start of the year.

Outlook and guidance

• Targets RMB100 billion in sales for 2026, with RMB215.7 billion in saleable resources and RMB30 billion 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, urban renewal, and high-quality growth, with operational refinement and innovation.

• Plans to enhance commercial property operations, expand property services, and pursue asset-light management.