YUEXIU PROPERTY (00123) announced that it expects its profit attributable to equity holders for the 2025 fiscal year to decline to approximately RMB 50 million to RMB 100 million, a decrease of about 90% to 95% compared to the 2024 fiscal year. Core net profit is also expected to fall to approximately RMB 250 million to RMB 350 million, representing a decrease of about 80% to 85% compared to the previous year. In 2025, although the Group's profit level decreased, its financial position remained healthy and secure. The net cash inflow from operating activities for the year exceeded RMB 10 billion, and the year-end cash balance (including cash and bank balances, time deposits, and other restricted deposits) surpassed RMB 40 billion, indicating ample capital reserves. The Group continued to optimize its debt structure and significantly reduced its financing costs. The total borrowing amount at year-end remained stable, and it maintained its "green" status in the "Three Red Lines" metrics. It also retained its Fitch investment-grade rating, which was upgraded to a "stable" outlook, and additionally obtained a Standard & Poor's investment-grade rating with a "stable" outlook. The announcement stated that the decline in profit attributable to equity holders and core net profit was primarily due to: (1) the real estate market remaining in a period of deep adjustment in 2025, with a substantive recovery in market confidence and expectations still requiring time, and significant divergence in market conditions between cities, leading to a year-on-year decrease in the gross profit margin of the Group's property sales recognized in revenue; and (2) a temporary change in the structure of the Group's overall property sales projects recognized in revenue for 2025, resulting in a lower average equity interest percentage in these projects compared to 2024, thereby reducing the profit attributable to equity holders. The Group achieved contracted sales of approximately RMB 106.2 billion in 2025, maintaining its position within the top ten in the CRIC industry rankings, specifically at ninth place. Its market position in first-tier cities improved significantly. By scientifically managing the pace of market engagement, the Group acquired 23 high-quality land parcels throughout the year, with over 90% of the investment concentrated in six key cities: Beijing, Shanghai, Guangzhou, Shenzhen, Hangzhou, and Chengdu. This further optimized its resource allocation structure, supporting the company's future sales scale and operational quality. The Group comprehensively upgraded its "Yuexiu" product series, accelerated the research, development, and application of healthy living technologies, and advanced the construction of "good houses and good communities" through the integration of "product + service + operation," thereby aiding sales conversion and maintaining stable operations. Looking ahead to 2026, the Group will continue to actively respond to market adjustments, adhere to a long-term perspective, invest precisely, accelerate inventory reduction and the revitalization of existing assets, maintain financial stability and liquidity safety, ensure a net inflow from operating cash flow, and preserve its "green" status in the "Three Red Lines" and its investment-grade credit ratings.
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