Yuexiu Real Estate (00123) is expected to achieve a net operating cash flow inflow of more than 10 billion yuan in the medium term and continue to meet the “three red lines” and continue to meet the “green file” standards

According to Zhitong Finance App News, Yuexiu Real Estate (00123) announced that the profit attributable to equity holders in mid-2026 is expected to drop to about RMB 50 million to RMB 100 million year-on-year from the six months ended June 30, 2025 (mid-2025), a decrease of about 90% to 95%; core net profit fell year-on-year to about RMB 50 million to RMB 100 million from mid-2025, a decrease of about 90% to 95%. Core net profit refers to the net exchange gain/ (loss) of profit attributable to equity holders excluding net exchange gain/ (loss), continued holding of investment properties (excluding investment properties disposed of in the current year/period) net increase/ (decrease) in the fair value, and the impact of related taxes and impairment of intangible assets.

The decline in profit attributable to equity holders and core net profit is mainly due to: due to the impact of the project carry-over cycle, property income recorded in mid-2026 and investment income from joint ventures and associated companies decreased compared to mid-2025, leading to a decline in operating income and profit attributable to equity holders; and the Chinese real estate market is still in the deep adjustment stage, and the gross profit margin of the Group's real estate development and sales business declined year-on-year in mid-2026.

In the context of continuous and deep adjustments in the industry market, the Group has always adhered to a sound business strategy and maintained a healthy and safe financial situation. In mid-2026, the Group expects to achieve a net operating cash flow inflow of over RMB 10 billion; by the mid-end of 2026, cash balances (including cash and bank balances, time deposits, time deposits and other restricted deposits) will exceed RMB 50 billion, and capital reserves are sufficient. The Group continues to optimize its debt structure, financing costs are low in the industry, and total borrowing remains stable at the end of the period. The “Three Red Lines” continue to meet the “green file” standards, maintain S&P and Fitch investment-grade credit ratings, and look forward to “stability.”

In the first half of 2026, the Group achieved contract sales (along with contract sales of joint ventures and joint company projects) of approximately RMB 50.5 billion, ranking in the top ten and eighth place in the Kerry industry ranking. Looking ahead to the second half of the year, the Group will step up efforts to remove inventory, maintain a leading position in the industry; adhere to precise investment strategies and continuously optimize resource allocation. The Group will always put financial soundness and liquidity safety first, ensure a continuous net inflow of operating cash flow, and adhere to the “three red lines”, “green file” bottom lines and investment-grade credit ratings.