As 2025 unfolds, China's real estate market remains shrouded by the keywords "losses" and "pressure." By January 23rd, companies like Gemdale Group have projected losses of 11.1 to 13.5 billion yuan, while Beijing Capital Development anticipates a 5.5 to 6.9 billion yuan shortfall, and Macrolink Group faces a staggering net loss of up to 22.5 billion yuan. The slew of earnings warnings from numerous developers paints a stark picture of the sector's deep and challenging adjustment period.
Yet, amidst this pervasive chill, YUEXIU PROPERTY has delivered a strikingly contrasting report card: it expects a core net profit of 250 to 350 million yuan for 2025, with profit attributable to equity holders reaching 50 to 100 million yuan. Crucially, its year-end cash balance exceeded 40 billion yuan, complemented by a net operating cash inflow of over 10 billion yuan. Bolstered by the dual strengths of "green-line financials and 100-billion-yuan sales," the company has emerged as a model of stability navigating the industry's counter-cyclical downturn.
This impressive performance is underpinned not only by the resource advantages stemming from its state-owned enterprise background but also by the strategic foresight and operational acumen of Chairman Lin Zhaoyuan and his team. At a time when most developers are grappling with "cash flow anxiety," YUEXIU PROPERTY's 40 billion yuan cash reserve stands as a pillar of stability, showcasing its exceptional ability to withstand risks.
Data reveals that by the end of 2025, the company's net operating cash inflow surpassed 10 billion yuan, while its total cash, bank balances, and fixed deposits broke the 40 billion yuan mark. With borrowings due within one year amounting to only 25.4 billion yuan, its ample cash-to-short-term-debt ratio renders its debt repayment pressure negligible.
More notably, the company has steadfastly maintained its "three red lines" green status. Its asset-liability ratio after excluding advance receipts stood at 64.6%, and its net gearing ratio was 53.2%, both significantly below the industry average. Its weighted average financing cost further decreased to 3.16%, down 41 basis points year-on-year, with rates for some tenors even dipping below 3% for the first time.
This financial robustness is no accident. As a core platform under Yuexiu Group, Guangzhou's largest municipal state-owned enterprise, YUEXIU PROPERTY benefits from lower-cost financing channels and more stable policy support. However, the more critical factor is its strategic resolve for "prudent operations." In 2025, amidst a tightening financing environment, the company synergized investment and financing, recouping 13.5 billion yuan through methods like special bond-financed land acquisitions and project asset disposals. Of this, 12 billion yuan was converted into high-quality land quotas, simultaneously optimizing its cash flow structure and building a war chest for future investments.
In stark contrast to the debt defaults plaguing many peers due to high-leverage expansion, YUEXIU PROPERTY's "low-debt, high-cash" model is precisely its core formula for navigating market cycles.
YUEXIU PROPERTY's counter-trend performance is also rooted in its precise strategic positioning. In 2025, the company achieved contracted sales of 106.2 billion yuan, securing the 9th position in the CRIC industry rankings. Against a backdrop where the total sales of the top 100 developers fell by 11.8%, it became one of only three companies in the top 10 to achieve positive growth.
This success stems from its steadfast execution of a "focus on core cities, deep cultivation in prime regions" strategy—over 90% of its new land acquisitions for the year were concentrated in the six key cities of Beijing, Shanghai, Guangzhou, Shenzhen, Hangzhou, and Chengdu. Sales from first-tier cities contributed a hefty 80.5% of the total, with sales in the Beijing market surging 255.1% year-on-year, propelling it to the top spot in local market share, while Guangzhou and Shanghai ranked second and sixth respectively.
In its home market of Guangzhou, YUEXIU PROPERTY demonstrated its dominant "local heavyweight" strength. In 2025, it secured the title of top land acquirer among Guangzhou developers with a total investment of 10.616 billion yuan, accounting for over one-fifth of the city's total land sales. It also deeply participated in urban renewal projects like the Nanyang Electric Factory redevelopment, Guangzhi area regeneration, and Lirendong village-in-the-city renovation, building an old-reform pipeline with a total value exceeding 70 billion yuan, which serves as a crucial engine for future growth.
This precise positioning yielded significant sales velocity advantages: projects like "YUEXIU PROPERTY · Yuncui" in Baiyun sold out upon launch, Longyue Xiguan cleared inventory within six months, and Dongshan Yunqi achieved a sales rate exceeding 90% at opening. Strong underlying demand in core cities has enabled the company to maintain high turnover efficiency even during an industry-wide period of sales pressure.
Chairman Lin Zhaoyuan emphasized at the results briefing, "We consistently concentrate resources in core cities and key regions. This focused strategy has established a relatively solid foundation for development and is a key factor driving our performance growth."
YUEXIU PROPERTY's steady development is inseparable from the leadership of its management team, spearheaded by Lin Zhaoyuan. Serving dual roles as Chairman of YUEXIU PROPERTY and General Manager of Yuexiu Group, Lin possesses a deep understanding of the real estate cycle coupled with a strategic vision honed at the group level. Under his guidance in 2025, the company charted a development path centered on "precision investment, efficient sales, and diversified transformation."
On the investment front, it adhered to a "one-project-one-strategy" approach, meticulously deploying its 30 billion yuan annual investment plan. In sales, it strengthened refined inventory management and price controls to ensure sales quality. For transformation, it accelerated the cultivation of new drivers: the Xi'an ICC hotel and office buildings commenced operations, occupancy rates in the senior care segment rose rapidly, and plans are in place to further increase the contribution from the commercial segment during the "15th Five-Year Plan" period, aiming to build a balanced revenue structure resilient to industry fluctuations.
Notably, under Lin's leadership, YUEXIU PROPERTY achieved a balance between "scale and quality." In the first half of 2025, the company reported operating revenue of 47.57 billion yuan, a 34.6% year-on-year increase, with a core net profit of 1.52 billion yuan, demonstrating strong operational resilience. Although full-year profits saw a temporary decline due to market adjustments, the company proactively created room for future profit recovery through prudent inventory impairment provisions and optimizing project equity structures. This decision to "sacrifice short-term gains for long-term stability" exemplifies the mature operational wisdom of the management.
In comparison, although Yuexiu Group Chairman Chen Qiang had only been in his role for six months, under his strategic guidance focused on "high-quality development," the group achieved a total profit of 6.5 billion yuan for the year, a 30% increase, providing solid resource support and confidence for the property segment's development.
Despite YUEXIU PROPERTY's standout performance, it is not immune to the common challenges of the industry's adjustment phase. In 2025, its core net profit declined by 80%-85% year-on-year, and profit attributable to equity holders fell by 90%-95%. This pattern of "stable scale but weak profitability" reflects the profound transformation underway in the real estate sector.
The primary reasons include compressed profit margins from property sales due to the market downturn, coupled with temporary shifts in project equity percentages. Furthermore, with the formal exit of the "three red lines" policy, industry regulation has entered a phase of differentiation and refinement. The core competitiveness of developers is shifting from "financing capability" to "investment, product, and operational capabilities." While YUEXIU PROPERTY holds a first-mover advantage, it still faces the long-term test of industry-wide transformation.
Nevertheless, challenges also harbor opportunities. Central government-funded urban renewal initiatives, robust demand for improved housing in core cities, and breakthroughs in diversifying business operations all present new growth avenues for YUEXIU PROPERTY. At the group's 2026 economic work conference, Lin Zhaoyuan clearly stated the intention to focus on optimizing layouts through new productive forces and invigorating the company through reform and innovation, driving its transition from a "real estate developer" to an "integrated urban service provider."
Backed by its 40 billion yuan cash reserve, premium land bank, and stable management team, YUEXIU PROPERTY is well-positioned to maintain its leading edge as the industry establishes new development models.
The year 2025 marked a period of risk clearance and structural reshaping for China's real estate sector. YUEXIU PROPERTY's resilient performance—anchored by 40 billion yuan in cash, safeguarded by 100-billion-yuan sales, and rooted in core cities—has not only set a benchmark for stable development among state-owned developers but has also demonstrated to the market that in this new era beyond breakneck expansion, financial robustness, strategic precision, and managerial professionalism are the true core competencies for navigating cycles. The operational wisdom of Lin Zhaoyuan's team has revitalized this established SOE amidst transformation. Looking ahead, as new industry models solidify, YUEXIU PROPERTY, by continuing to deepen its transformation and consolidate its advantages, is poised to tread the path of high-quality development with even greater steadiness and reach.
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