As the real estate sector enters a phase of high-quality development, competition among property developers has shifted from scale expansion to a contest of operational quality and comprehensive strength. Stable cash flow, a healthy asset structure, and the capacity for sustainable growth have become crucial foundations for companies to navigate industry changes and seize market opportunities.

On August 28, YUEXIU PROPERTY (00123) released its 2026 interim results, reporting a net operating cash inflow of RMB 13.77 billion for the first half of the year. This marks a continued period of positive inflows, underscoring the company's steadily strengthening internal cash-generation capabilities. This impressive cash flow performance is driven by both enhanced operational efficiency and optimized asset allocation. The company has reinforced its capital coordination, with the contract sales collection rate climbing 10 percentage points year-on-year to 71% during the period. Concurrently, it has actively advanced the optimization of existing assets, realizing RMB 4.46 billion in capital recovery through the transfer of certain assets to its parent company, Yuexiu Group. This move enhances capital utilization efficiency and sharpens the focus on its core residential development business.

As of the end of June, YUEXIU PROPERTY's cash balance stood at RMB 51.5 billion, a 10.1% increase from the beginning of the year. This substantial cash reserve not only bolsters operational stability but also provides solid support for the company's continued focus on core cities and its ability to capitalize on quality resource opportunities. The potent internal cash-generation capability has directly translated into strong credit endorsement in the capital markets, driving financing costs to new lows. Against a backdrop of a generally tight financing environment across the industry, YUEXIU PROPERTY's weighted average annual borrowing rate decreased by 25 basis points year-on-year to 2.91% in the first half. This marked the first time the rate has fallen below 3%, aligning the company with the low-cost financing levels of leading central state-owned enterprises and positioning it within the industry's first tier for financing costs.

Meanwhile, the company's domestic and overseas financing channels have remained unhindered. During the period, it completed several bond issuances, including a RMB 1.9 billion domestic corporate bond in June with a coupon rate of only 1.97%, further highlighting its robust financing capabilities. By the end of June, YUEXIU PROPERTY's net gearing ratio had further decreased to 49.2%, and its cash-to-short-term-debt ratio reached 2.1 times. The company continues to maintain its "green" status under the "Three Red Lines" policy, with its asset-liability structure consistently improving. Both S&P and Fitch have reaffirmed their investment-grade ratings for the company.

Balancing prudent operations with strategic expansion, YUEXIU PROPERTY continues to secure high-quality resources in core cities while maintaining financial safety margins, laying a solid groundwork for future growth. The company's total land bank is approximately 16.57 million square meters, with land reserves in first- and second-tier cities accounting for as high as 94%. The total unsold inventory value stands at approximately RMB 290.5 billion, with core six cities contributing around 73%, placing the company's asset quality at the forefront of the industry. More significantly, the company has locked in a substantial earnings safety cushion. As of the period's end, contracted but unrecognized sales amounted to RMB 132.4 billion, providing stable support for future operational performance.

As the industry's valuation logic pivots from scale expansion to security and operational quality, the capital market is increasingly consolidating around financially prudent, high-quality developers. YUEXIU PROPERTY has emerged as a consensus pick among several securities firms. Zhongtai Securities believes that YUEXIU PROPERTY's financial indicators remain solidly in the "green" zone, its financing channels are unobstructed, and its premium land bank lays a strong foundation for long-term growth. With its current valuation at a low point, the firm maintains a "Buy" rating. CITIC Construction Investment also notes the company's ample cash reserves and exceptional risk-resistance capabilities, highlighting its continued focus on replenishing land in high-tier cities during the first half, and maintains a "Buy" rating.

Industry analysts suggest that future competition will increasingly center on operational quality and developmental resilience. YUEXIU PROPERTY plans to persist in balancing prudent operations with strategic planning, continuously improving resource allocation efficiency to consolidate its long-term development foundation.