Yuexiu Property Company (123) H1 2025 earnings summary

Executive summary

• Revenue rose 34.6% year-over-year to RMB47.57 billion in H1 2025, marking seven consecutive years of growth, while gross profit margin declined by 3.1 percentage points to 10.6%.

• Profit attributable to equity holders fell 25.2% to RMB1.37 billion; core net profit dropped 12.7% to RMB1.52 billion.

• Contracted sales value increased 11.0% to RMB61.50 billion, achieving 51% of the annual target and ranking 8th in the industry.

• Maintained a healthy financial position with a net gearing ratio of 53.2%, cash/short-term debt ratio at 1.7x, and strong liquidity.

• Interim dividend declared at HKD0.166 per share, with a payout ratio of 40% of core net profit.

Financial highlights

• Gross profit increased 4.4% year-over-year to RMB5.06 billion, but gross profit margin declined to 10.6%.

• Recognised sales value grew 33.9% to RMB44.03 billion, while recognised sales ASP increased 48.1% to RMB35,100/sq.m.

• Unrecognised sales value as of June 2025 was RMB149.03 billion, down 12.4% from year-beginning.

• Cash and bank balances at period end were RMB44.64 billion, down 10.8% from year-end 2024.

• Weighted average borrowing interest rate declined to 3.16%.

Outlook and guidance

• 2025 contracted sales target set at RMB120.5 billion, with total sellable resources of RMB235.4 billion.

• Management expects continued policy support, stable land prices, and market stabilisation in the second half of 2025.

• Operational focus on quality land acquisition, lean management, and premium product delivery.

• Continued emphasis on high-quality product innovation, sustainable development, and green building certifications.

• Prudent financial policies and maintaining investment-grade credit ratings remain priorities.