Yuexiu Property (00123) achieved operating cash flow net inflow exceeding 10 billion RMB in 2025, while maintaining the "three red lines" at the "green level".

Yuexiu Property (00123) announced that it is expected that the equity holders' share of profit for the year 2025 will decrease by approximately 0.5 billion to 1 billion compared to 2024, a decrease of about 90% to 95%; core net profit is expected to decrease by approximately 2.5 billion to 3.5 billion compared to 2024, a decrease of about 80% to 85%. In 2025, despite a decrease in the group's profitability, the financial situation remains healthy and secure. Operating cash flow is expected to exceed 100 billion yuan in 2025, with a year-end cash balance (including cash and bank balances, time deposits, and other restricted deposits) exceeding 40 billion yuan, ensuring sufficient funds. Debt structure and financing costs will be optimized, with a stable total borrowing amount at year-end. The "three red lines" will remain "green" and credit rating agencies like Fitch will maintain the investment-grade rating, with an outlook of "stable". Additionally, Standard & Poor's will also provide an investment-grade rating, with a "stable" outlook. The announcement stated that the decrease in equity holders' share of profit and core net profit for 2025 is mainly due to (1) the deep adjustment phase of the real estate market in 2025, with substantial recovery of market confidence and expectations still needing time. Market differentiation between cities is apparent. The group's sales gross profit margin for 2025 is expected to decrease; and (2) a structural change in the group's overall sales projects in 2025, leading to a decrease in the average equity contribution of sales projects compared to 2024, resulting in a decrease in equity holders' share of profit. In 2025, the group achieved contract sales of approximately 106.2 billion yuan, maintaining its position in the top ten of the industry ranking by CREIS, ranking ninth and significantly improving its market position in first-tier cities. The group strategically obtained 23 high-quality land plots, with over 90% of the investment concentrated in the core cities of Beijing, Shanghai, Guangzhou, Shenzhen, Hangzhou, and Chengdu. The resource allocation structure is further optimized to support the company's future sales scale and operational quality. The "Yuexiu" product series is comprehensively upgraded, with a focus on research and application of healthy living technologies, promoting the construction of "good houses, good neighborhoods" through integrated "products + services + operations" to boost sales conversion and maintain stable operations. Looking ahead to 2026, the group will continue to actively respond to market adjustments, adhere to long-term strategies, make precise investments, accelerate the reduction of inventory and activate existing assets, maintain financial stability and liquidity safety, ensure positive operating cash flow, and maintain the "three red lines", "green", and investment-grade rating.