The real estate sector continues to experience a profound adjustment. During the 14th Five-Year Plan period, the number of developers with sales exceeding 100 billion yuan plummeted from 43 to just 10, signifying a major industry reshuffle. A market downturn ultimately tests the operational capabilities of enterprises. On March 31st, YUEXIU PROPERTY (00123) announced its performance for the final year of the 14th Five-Year Plan period. In this challenging environment, the company demonstrated significant progress, rising from a mid-tier position at 37th in the industry rankings in 2021 to secure the 9th spot nationally in the 2025 CRIC full-scale sales ranking, marking the most substantial rank improvement in the sector. In 2025, YUEXIU PROPERTY maintained its scale with sales of 106.21 billion yuan, establishing itself as one of the very few developers to achieve simultaneous growth in scale, ranking, and market share while maintaining stability during this adjustment phase. The operational resilience and strategic discipline behind this performance are highly noteworthy.

Adherence to a long-term vision and the "Four-Good Enterprise" strategy have been crucial in building core competitiveness. Strategic discipline that avoids being swayed by short-term fluctuations is the primary defense for navigating market cycles. Facing market changes, the company's leadership has consistently adhered to the long-term "Four-Good Enterprise" strategy, focusing on good products, good services, a good brand, and a good team. Early in 2025, YUEXIU PROPERTY proactively responded to the government's "Good Housing" policy by introducing its "4X4 Good Product Concept." This system has added brand premium to its market projects, contributing to a full-year average contracted selling price of 36,000 yuan per square meter, a significant 23% increase year-on-year. Notably, two flagship projects, one in Beijing and another in Shanghai, achieved sales of 9.5 billion yuan and 15.9 billion yuan, respectively, with average selling prices surpassing 100,000 yuan per square meter, creating a virtuous cycle where product strength translates into brand recognition and sales performance.

Amid deep market differentiation, core cities, including first-tier and strong second-tier cities, have demonstrated stable value and strong anti-cyclical resilience. The contribution from these core cities has become a key support for maintaining a developer's competitive edge. In 2025, six core cities—Beijing, Shanghai, Guangzhou, Shenzhen, Hangzhou, and Chengdu—contributed 85.6% of YUEXIU PROPERTY's total sales. The company also maintained leading market shares in Beijing, Shanghai, and Guangzhou. In its home base of Guangzhou, sales reached 29.1 billion yuan, ranking second locally. Sales in Beijing exceeded 30 billion yuan, also securing the second position, while Shanghai sales of 22.2 billion yuan ranked seventh. This has resulted in a balanced, multi-pillar layout, solidifying a fundamental development base in the nation's most competitive core markets.

Entering the 15th Five-Year Plan period, management has proposed building a business portfolio described as "One Core, Two Wings." The annual report indicates steady progress in diversifying its business layout, including commercial operations, property services, and project construction management. These businesses are designed to generate stable income that smooths out cyclical fluctuations. In 2025, all business segments achieved quality growth, providing sustained and stable cash flow, creating synergies with the core residential business, and further widening the company's competitive moat.

Prudent investment management has yielded significant results from its focus on core cities. As urban divergence becomes the norm, YUEXIU PROPERTY has adhered to an investment strategy of "precision investment, optimized land bank, and strong control," concentrating on high-tier cities. The annual report disclosed that the company's equity investment amount in 2025 was 24.4 billion yuan, with an average premium rate of only about 9.3%, substantially lower than the average for top 10 developers. Investment was highly concentrated in the six core cities, which accounted for 96.3% of the equity investment. By the end of 2025, the total land bank stood at 18.55 million square meters, increasingly concentrated in high-tier cities, with first and second-tier cities together comprising 94.4% of the total. Newly acquired land bank in 2025 saw the proportion from first-tier cities rise to 67.7%. This high-quality and highly concentrated land bank structure provides ample resource support for stable future sales growth. Recent analysis suggested that YUEXIU PROPERTY's focus on high-tier cities positions it for greater elasticity during a market recovery.

A solid financial foundation creates a safety barrier for counter-cyclical operations. While precise investment supports stable sales, strict financial discipline and ample safety margins are the fundamental underpinnings for all operational activities, including investment. According to the disclosed results, as of the end of 2025, YUEXIU PROPERTY maintained a "green" status across all three key financial red lines: the liability-to-asset ratio after excluding advance receipts was 65.5%, the net gearing ratio was 54.9%, and the cash-to-short-term-debt ratio was 1.7 times, all within safe industry ranges. Cash on hand amounted to 46.76 billion yuan, with a net operating cash flow inflow of 13.94 billion yuan for the full year. On the financing front, the weighted average interest rate decreased to 3.05%, down 44 basis points year-on-year, marking two consecutive years of declining financing costs. The company maintained smooth access to both onshore and offshore financing channels and held investment-grade ratings with stable outlooks from two major agencies, underscoring strong capital market recognition of its operational stability. Against an industry backdrop of pressured gross margins, the company implemented strict cost controls across the chain, leading to continuously declining expense ratios. For 2025, operating income reached 86.46 billion yuan, maintaining slight year-on-year growth, while post-tax profit was 1.78 billion yuan, an increase of 21.4%, making it one of the few developers to sustain profitability.

The acquisition of a prime land parcel in Guangzhou's core CBD is expected to anchor medium-to-long-term performance. As policy support for the real estate sector intensifies and market recovery expectations strengthen, the industry's development logic is shifting from scale expansion to high-quality growth. Developers with sound fundamentals, rational layouts, and robust finances are poised for more opportunities. Early in 2026, the parent group successfully acquired a major land parcel in Guangzhou at a total price of 23.6 billion yuan. As the last large-scale urban renewal site in the city's central business district, this project is a rare initiative capable of simultaneously elevating the city's status. It is planned as an open urban public space linking a luxury retail cluster, international high-end hotels, and premium Grade-A offices. Market observers suggest that, as the core property platform of the group, YUEXIU PROPERTY is well-positioned to leverage its comprehensive urban development and operation capabilities for this project. The group's established model has previously been validated, providing a mature pathway for potential future asset injection. The strategic importance of securing and developing such landmark projects is becoming an industry consensus. Analysts note that scarce projects like this not only provide long-term, stable performance growth but also enable a systematic upgrade of a company's product capability, brand power, and operational skills through full-format, full-cycle development. The industry influence and demonstrative effect of such projects will be crucial for consolidating a developer's position during the ongoing industry transformation.

YUEXIU PROPERTY's counter-cyclical growth, from a mid-tier player to a stable top 10 contender, represents a successful case study in operational philosophy. The company's leadership stated that for 2026, the focus will be on refining operations for stable performance, strengthening capabilities through reform, and promoting development through transformation. The goals are to stabilize the scale, consolidate its position in core markets, optimize new increments, ensure investment success, and deepen the "One Core, Two Wings" strategy. Driven by the "Four-Good Enterprise" principle and lean management, the company aims to achieve a successful start to the 15th Five-Year Plan period, navigate cycles smoothly, continue enhancing customer lifestyles, and create sustained value for shareholders.