Yuexiu Property H1 Contracted Sales Fall 17.9% to RMB50.51 Billion

Yuexiu Property disclosed its interim results for 2026 on August 28. In the first half of the year, the company recorded revenue of approximately RMB36.65 billion, down 23% year on year. Gross margin stood at about 6.2%, a decrease of 4.4 percentage points from the prior year. Profit attributable to equity holders was approximately RMB90 million, down 93.6% year on year, while core net profit fell 94.6% to about RMB80 million.

Cumulative contracted sales in the first half reached approximately RMB50.51 billion, down 17.9% year on year. Sales area totaled about 1.7 million square meters, up 16.2%, and the average selling price was approximately RMB29,700 per square meter, down 29.5%. The amount of sold but unrecognized sales was RMB132.44 billion, up 0.3% year on year.

In terms of sales structure, contracted sales from existing inventory projects accounted for 80.7% of total sales, up from the same period last year, while continued-sales projects contributed 81% of sales, a significant increase from the first half of 2025. Sales from the six core cities accounted for 84.5% of total contracted sales. The collection rate for contracted sales in the period was 71%, up 10 percentage points year on year.

Regarding land acquisition, the company added six plots in five cities—Guangzhou, Shanghai, Hangzhou, Chengdu, and Qingdao—with a total gross floor area of approximately 680,000 square meters and equity investment of about RMB7 billion. Of this, 96.8% was concentrated in the six core cities, and the average premium rate for new plots was about 9.5%. As of June 30, total land reserves stood at approximately 16.57 million square meters, with 94% located in first- and second-tier cities.

On the funding and financing front, as of June 30, Yuexiu Property's cash and bank balances, time deposits, and other restricted deposits totaled approximately RMB51.5 billion, up 10.1% from the beginning of the year. Net operating cash inflow during the period was about RMB13.77 billion, and RMB4.46 billion was recovered through asset revitalization. The weighted average borrowing rate fell below 3% for the first time, to 2.91%, down 25 basis points year on year. The company maintained its green status under the "three red lines" policy, successfully issued RMB3.34 billion in offshore dim sum bonds, and retained investment-grade ratings from S&P and Fitch with stable outlooks. Yuexiu Services recorded operating revenue of RMB1.915 billion in the first half, while Yuexiu Real Estate Investment Trust achieved operating income of RMB767 million.

Regarding annual operating targets, management said it would continue to pursue the sales target of RMB100 billion. As of June 30, the company's total sellable resources for the year stood at RMB215.7 billion, including more than RMB150 billion in opening inventory and over RMB60 billion in newly added supply during the first half. Inventory is mainly concentrated in the six core cities of Beijing, Shanghai, Guangzhou, Shenzhen, Hangzhou, and Chengdu. The full-year equity investment target remains unchanged at RMB30 billion. With first-half sales of RMB50.51 billion, the company achieved "half the time, half the task" against its annual sales target of RMB100 billion.

Separately, the Guangzhou Zhujiang New Town Machang plot was acquired by Yuexiu Group on February 25, 2026, for a total price of RMB23.6 billion, translating to a floor price of RMB85,000 per square meter. Within one week of the land acquisition, the company signed a cooperation agreement with SKP to bring high-end commercial retail to the project, and within one month introduced the Waldorf Astoria hotel brand under Hilton Group. The project is currently still held by parent company Yuexiu Group, and any injection into the listed company will be subject to official announcements.