Yuexiu Property (00123) expects to achieve a net inflow of operating cash flow exceeding 10 billion yuan in the middle term. The "three red lines" will continue to be maintained in the "green range" to meet the standards.

Yuexiu Property (00123) announced that it is expected that the equity holders' share of profits for the mid-year of 2026 will decrease by approximately RMB 50 million to RMB 100 million compared to the six months ended June 30, 2025 (mid-year 2025), a decrease of about 90% to 95%; core net profit is expected to decrease by approximately RMB 50 million to RMB 100 million compared to mid-year 2025, a decrease of about 90% to 95%. Core net profit refers to the profit attributable to equity holders excluding the net exchange gains/(losses) on comprehensive income statement, the net fair value gains/(losses) on continuing investment properties (excluding the disposal of investment properties in the current year/period) and related tax impacts, as well as impairment of intangible assets. The decrease in equity holders' share of profits and core net profit is mainly due to: the decrease in property income and investment income from joint ventures and associated companies in mid-year 2026 compared to mid-year 2025 due to the impact of project completion cycles, leading to a decline in operating income and profits attributable to equity holders; and the pressure on project profit margins due to the continued deep adjustment phase in the Chinese real estate market, resulting in a year-on-year decrease in gross profit from real estate sales business for the Group in mid-year 2026. Against the backdrop of ongoing deep adjustment in the industry, the Group has always adhered to a prudent operating strategy, maintaining a healthy financial position. In mid-year 2026, the Group expects to achieve a net inflow of operating cash flow exceeding RMB 10 billion; by the end of mid-year 2026, the cash balance (including cash and bank balances, fixed deposits, time deposits, and other restricted deposits) is expected to exceed RMB 50 billion, with sufficient reserves. The Group continues to optimize its debt structure, with financing costs at industry lows, and the total amount of borrowing remains stable at the end of the period. The "three red lines" continue to meet the "green category" standards, maintaining investment-grade credit ratings from Standard & Poor's and Fitch with a "stable" outlook. In the first half of 2026, the Group achieved contract sales (including contract sales from joint ventures and associated company projects) of approximately RMB 50 billion, ranking in the top ten in the industry according to the Keppel industry rankings, placing in eighth place. Looking ahead to the second half of the year, the Group will intensify efforts to reduce inventory and maintain its leading position in the industry; adhere to a precise investment strategy and continue to optimize resource allocation. The Group will always prioritize financial stability and liquidity safety, ensuring the continued achievement of net inflows of operating cash flow, and upholding the "three red lines" "green category" baseline and investment-grade credit ratings.