Yuexiu Property Company Limited (Yuexiu Property) expects a sharp earnings contraction for the six months ended 30 June 2026. Based on unaudited management accounts, profit attributable to equity holders is projected at RMB50–100 million, a decline of about 90 %–95 % from the prior-year period. Core net profit, which excludes foreign-exchange effects, fair-value changes on investment properties and related tax impacts, is forecast within the same RMB50–100 million range, reflecting a comparable percentage drop.
Management attributes the downturn to two main factors: 1) Cyclical fluctuations in project completions and deliveries, which reduced recognised sales and earnings contributions from joint ventures and associates. 2) Ongoing pressure on project margins as China’s property market remains in a “profound adjustment” phase, compressing gross profit in the development segment.
Despite weaker profitability, operating cash flow remains robust. The Group anticipates net cash inflows from operating activities exceeding RMB10.00 billion in 1H26, while total cash and deposits are expected to surpass RMB50.00 billion at period-end. Borrowings stayed “stable,” financing costs remained at the lower end of industry averages, and all three “red-line” leverage metrics were maintained in the green zone. S&P and Fitch continue to assign investment-grade ratings with a stable outlook.
Contracted sales—including contributions from joint ventures and associates—reached approximately RMB50.50 billion, ranking the developer eighth industry-wide according to China Real Estate Information Corporation (CRIC). Management plans to accelerate inventory turnover, pursue selective investments and protect liquidity in the second half of 2026, while keeping leverage indicators within green-light thresholds.
The interim figures are based on preliminary unaudited data and may change after the Board finalises the 1H26 results. Shareholders and investors are advised to exercise caution when trading the company’s securities.
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