In the first half of the year, Yuexiu Property reported a revenue of 47.57 billion yuan and sales of 61.5 billion yuan, outperforming the market.

On August 26, Yuexiu Property released its interim results for 2025. The report data shows that in the first half of the year, Yuexiu Property achieved an operating income of approximately 47.57 billion yuan (in the first half of 2024: 35.34 billion yuan), a year-on-year increase of 34.6%; the gross profit was approximately 5.06 billion yuan (in the first half of 2024: 4.85 billion yuan), a year-on-year increase of 4.4%; the gross profit margin was approximately 10.6%, a year-on-year decrease of 3.1 percentage points; the net profit attributable to the parent company was approximately 1.37 billion yuan (in the first half of 2024: 1.83 billion yuan), a year-on-year decrease of 25.2%.

Judging from the overall performance, Yuexiu Property outperformed the market in terms of sales and revenue in the first half of the year, but its profit margin declined in tandem with the broader market.

Lin Zhaoyuan, the Chairman and Executive Director of Yuexiu Property, said that the company's overall operating performance showed steady progress in the first half of the year, its financial condition remained healthy, and its core competitiveness was continuously enhanced.

Data source: Yuexiu Property's Interim Results Report for 2025

01

Sales Reached 61.5 Billion in the First Half of the Year, with Double - digit Growth Against the Market Trend

At the performance briefing, Zeng Zhizhao, the Chief Financial Officer, introduced that in the first half of 2025, Yuexiu Property actively responded to the impact of real - estate market fluctuations, implemented the annual work theme of stabilizing performance, seeking breakthroughs, refining management, and enhancing capabilities, and maintained stable operating performance. During the reporting period, it achieved an operating income of 47.57 billion yuan, a year - on - year increase of 34.6%. From January to June, it achieved a contract sales amount of 61.5 billion yuan, a year - on - year increase of 11%, completing 51% of the annual sales target. The company's sales performance outperformed the industry, and it ranked eighth in the national sales ranking in the first half of the year.

Why was the company able to maintain double - digit sales growth in the industry's downturn? Lin Zhaoyuan, the Chairman and Executive Director of Yuexiu Property, explained that the main reason was the company's accurate judgment of the market. The previous land acquisitions laid the foundation for the performance in the first half of the year. Meanwhile, Yuexiu Property's product strength, sales ability, delivery ability, and service ability have all been significantly improved, which ultimately led to good market performance and was reflected in the sales results. In addition, the choice of urban layout was also an important reason. Yuexiu Property's layout was concentrated in some core cities, which were less affected by the market downturn.

Among the 61.5 - billion - yuan sales performance in the first half of the year, the Greater Bay Area accounted for approximately 27.4%, the East China region accounted for approximately 27.8%, the Central and Western regions accounted for approximately 11.0%, and the Northern region accounted for approximately 33.8%. The sales volume in first - tier core cities reached 49.5 billion yuan, accounting for 80.5% of the total sales volume.

Zhu Huisong, the Vice - Chairman and Executive Director, said that the company planned to supply 235.4 billion yuan worth of properties throughout 2025, and it was confident of achieving the annual sales target of 120.5 billion yuan set at the beginning of the year.

Lin Zhaoyuan, Chairman and Executive Director of Yuexiu Property (second from left); Zhu Huisong, Vice - Chairman and Executive Director of Yuexiu Property (second from right); Jiang Guoxiong, Co - General Manager and Executive Director of Yuexiu Property (left); Zeng Zhizhao, Chief Financial Officer of Yuexiu Property (right)

02

Gross Profit Margin Dropped to 10.6%

While the operating income and sales increased year - on - year, the profit and profit margin of Yuexiu Property declined year - on - year in the first half of the year.

The report data shows that in the first half of 2025, Yuexiu Property's gross profit was approximately 5.06 billion yuan, a year - on - year increase of 4.4%, but the gross profit margin decreased by 3.1 percentage points year - on - year to 10.6%;

The decline in the net profit attributable to the parent company was more obvious. In the first half of the year, it was approximately 1.37 billion yuan (in the first half of 2024: 1.83 billion yuan), a year - on - year decrease of 25.2%. The core net profit was approximately 1.52 billion yuan (in the first half of 2024: 1.74 billion yuan), a year - on - year decrease of 12.7%.

Lin Zhaoyuan responded, "Everyone is generally concerned about the gross profit margin. Our gross profit margin in the first half of the year was 10.6%. Compared with the same period last year, it decreased by about 3 percentage points, but it was basically the same as the whole - year figure of last year. Maintaining a gross profit margin of over 10% is, in my opinion, in line with the current situation of the entire industry."

Borrowing Interest Rate Dropped to 3.16%

In terms of debt, as of June 30, the total scale of Yuexiu Property's interest - bearing borrowings was 103.9 billion yuan, basically the same as at the end of last year. The proportion of short - term debt due within one year was 24%, approximately 24.9 billion yuan. Compared with the total of 44.64 billion yuan in cash, bank balances, time deposits, and other restricted deposits on hand, there was no significant short - term debt pressure. The financing cost also decreased further year - on - year. In the first half of the year, the weighted average borrowing interest rate decreased by 41 basis points year - on - year to 3.16%.

Yuexiu Property's Mid - year Debt Structure

In the real - estate downturn, cash flow is the main indicator to measure the health of an enterprise. In this key indicator, Yuexiu Property achieved a net inflow of operating cash flow of 4.1 billion yuan in the first half of the year, and has continuously achieved positive operating cash flow since the fourth quarter of 2022.

Zeng Zhizhao, the Chief Financial Officer, said that in the first half of the year, Yuexiu Property's capital - debt ratio decreased by 1.4 percentage points to 40.3%, the net borrowing ratio was 53.2%, and the total assets were 383.67 billion yuan, a year - on - year decrease of 6.5%. The main reason was that most of the projects newly acquired by the company in the first half of the year were off - balance - sheet projects.

Accurately Timed Land Acquisitions, Quick In and Out like "Guerrilla Warfare"

Regarding Yuexiu Property's growth against the market trend, industry insiders believe that a key reason is that Yuexiu Property's land - acquisition rhythm and the quality of the selected plots are relatively high.

The mid - year report data for 2025 shows that as of June 30, 2025, Yuexiu Property's total land reserve reached 20.43 million square meters, with 94% located in first - and second - tier core cities, and half of it was in first - tier cities. The proportion of resources in Shanghai and Beijing has been increasing year by year.

Lin Zhaoyuan said that the company acquired a total of 13 land parcels in the first half of the year, all located in Guangzhou, Shanghai, Beijing, and Hangzhou. More importantly, it accurately timed the land - acquisition rhythm, avoiding the high - premium period in the first quarter of the market. It did not acquire land parcels with too high a premium rate. "The average premium rate of our 13 land parcels was about 9%, which is a good result."

Lin Zhaoyuan also revealed, "We have also conducted a series of analyses. Especially in the past two years, in Guangzhou, we have avoided large - scale projects and focused on small - scale projects. Why small - scale projects? Because we are concentrated in the old urban areas, where it is difficult to find large - scale contiguous land. The projects are small in scale, but they are easy to enter and exit. They can be quickly developed and sold, with high efficiency and high investment returns. From the current situation, we have our own characteristics in land acquisition. We used to engage in 'conventional battles', but now we can fight 'guerilla wars'. When we see a good opportunity, we concentrate our resources to seize it. This is also a characteristic of our current market response strategy."

Data on Yuexiu Property's Newly Acquired Land Reserves in the First Half of 2025

At the performance briefing, Yuexiu Property's management emphasized that the annual investment target of 30 billion yuan remained unchanged and the company would maintain a certain level of investment intensity. Yuexiu Property's total equity investment in the first half of 2025 was 10.96 billion yuan, which means it will look for more land - acquisition opportunities in the second half of the year.