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since 2024, the overall national real estate market has continued to adjust, and favorable policies have been continuously released, but the overall industry still faces great challenges, and it will take time for the policies to take effect. the overall real estate market is still in the stage of bottoming out and stabilizing. against this background, it is particularly important to maintain core strategic focus. some real estate companies have achieved expected performance through active market response strategies and lean management. on august 28, yuexiu real estate disclosed its interim results for the first half of 2024. as of june 30, 2024, yuexiu real estate achieved operating income of 35.34 billion yuan, a year-on-year increase of 10.1%, and net profit attributable to equity holders was approximately 1.83 billion yuan. during the reporting period, yuexiu real estate faced the continuous adjustment of the real estate market, maintained stable development through product improvement, precise investment and lean management, and demonstrated strong resilience of state-owned enterprises.

revenue maintained steady growth, market ranking continues to improve

with mature urban operation experience and strategic layout of deepening core cities, yuexiu real estate's market position has been further enhanced. in the first half of 2024, the contract sales amount of yuexiu real estate, together with joint ventures and associated companies' projects, was approximately rmb 55.4 billion. in the first half of the year, the contract sales amount in the greater bay area was approximately rmb 26.11 billion, accounting for approximately 47.1% of the total contract sales amount. the contract sales amount in east china in the first half of the year was approximately rmb 12.88 billion, accounting for approximately 23.2% of the total contract sales amount. according to cric data, yuexiu real estate's contract sales (full caliber) in the first half of 2024 ranked 9th in the industry, up 3 places from the end of 2023.

in the first half of the year, yuexiu real estate maintained its strategy of adapting to changes, implemented a precise marketing strategy of "one project, one policy" and a precise pricing strategy, and recorded a contract sales of 23.05 billion yuan in guangzhou, its home base, maintaining its leading position in the local market share. in addition to guangzhou, its home base, yuexiu real estate has also increased its investment in high-volume cities such as shanghai and beijing.

lin zhaoyuan, chairman and executive director of yuexiu property, said: "in the future, the market will return to the attributes of 'good houses', and improved products, good products and good services will be the mainstream of the market; at the same time, the higher the city's energy level, the greater the market's resilience and opportunities will be." in the second half of the year, yuexiu property will actively respond to market challenges and continue to follow the path of high-quality and sustainable development under the new industry environment and new development model.

optimize investment structure and achieve high-quality reserve growth

from the investment perspective, since the beginning of this year, the land market has shown a shrinking supply and demand trend. large-scale real estate developers have been cautious in expanding their reserves and have focused more on core high-energy cities, such as economically active regions and areas with continued population influx. state-owned enterprises including yuexiu real estate are implementing precise investments and acquiring land cautiously.

in recent years, yuexiu real estate has stepped up its research on cities, sectors and customers in accordance with changes in the market and land transfer rules in specific cities. the investment scale has become more precise, the investment layout has become more reasonable, and it has focused on core cities and core areas. the report shows that in the first half of this year, yuexiu real estate acquired 12 new plots of land in beijing, shanghai, guangzhou, hangzhou, chengdu, hefei and other cities through the "6+1" diversified reserve increase model, with a total construction area of ​​about 1.72 million square meters. among them, it acquired 2 high-quality plots in shanghai, with an additional land reserve of about 60,000 square meters; acquired 2 high-quality plots in hangzhou, with an additional land reserve of about 230,000 square meters; and acquired about 580,000 square meters of tod land reserves through acquisitions from its parent company yuexiu group. among the newly added land reserves in the first half of the year, the land reserves acquired through the diversified reserve increase model accounted for 66% of the newly added land reserves, achieving high-quality reserve increase. the increase in high-quality land reserves will continue to enhance yuexiu real estate's risk resistance and provide strong support for subsequent performance growth and market share.

as of june 30, yuexiu property had a total land reserve of approximately 25.03 million square meters, 94% of which was located in first-tier and key second-tier cities, of which first-tier cities accounted for 44%, guangzhou, beijing and shanghai accounted for 36.7%, 3.9% and 2.4% respectively, and key second-tier cities accounted for 50%. the investment quality and structure are constantly being optimized.

the financial situation is safe and sound, and the financing cost advantage is obvious

from the financing perspective, in the first half of the year, the scale of financing for real estate companies was declining, and most of the real estate companies that were able to successfully raise funds were those with stable operations. the semi-annual report shows that yuexiu real estate's weighted average annual lending rate in the first half of 2024 fell by 41 basis points year-on-year to 3.57%, and the average borrowing cost at the end of the period further fell to 3.47%. the average financing cost further fell year-on-year, and the overall financing cost was in a leading position in the industry.

the management of yuexiu real estate stated at the performance meeting that due to its advantages such as state-owned background and good credit with financial institutions, yuexiu real estate's overall financing channels are currently relatively smooth, the overall financing costs are at a low level, and the average financing cost in the first half of the year further declined.

public data shows that on july 12, yuexiu real estate successfully issued the first corporate bond of 2024. the issuance scale of the "3+2" year variety is 500 million yuan, with a coupon rate of 2.25%; the issuance scale of the 10-year variety is 1 billion yuan, with a coupon rate of 2.75%. the financing cost is in a leading position in the industry. this will help yuexiu real estate further optimize its capital structure and enhance the company's capital strength.

financial stability and cash flow security are necessary conditions for real estate companies to survive industry cycles. yuexiu real estate has always maintained a sound financial position. as of june 30, 2024, yuexiu real estate's cash and cash equivalents, time deposits, deposits under monitoring, time deposits and other restricted deposits totaled approximately rmb 48.14 billion. excluding advance payments, the debt-to-asset ratio, net debt ratio and cash-to-short-term debt ratio were 68.3%, 58.6% and 1.53 times, respectively, and the "three red lines" indicators remained in the "green file" and met the standards.

it is worth mentioning that in the environment where the industry as a whole is undergoing profound adjustments, the board of directors of yuexiu real estate resolved to declare a 2024 interim dividend of rmb 0.173 per share. the interim dividend ratio is 40% of the core net profit, reflecting yuexiu real estate's good financial condition and its emphasis on shareholder interests.

the product side continues to make efforts, and the improvement products are deeply in line with the industry trend

observing the sales data of the leading real estate companies in the first half of the year, it is not difficult to find that they all have one thing in common, that is, they are increasingly focusing on the core areas of first-tier and second-tier key cities in terms of layout, and the proportion of improvement and high-end products is gradually increasing. in recent years, the competent authorities have vigorously promoted the construction of "good houses", and many leading real estate companies are "rolling" good houses, hoping to break through in the market through product strength. industry insiders believe that the current demand for mid-to-high-end improvements is relatively active. with many years of project development experience, yuexiu real estate accurately grasps the policy pulse and market demand, and continues to layout in the field of improvement housing, showing its foresight and innovation capabilities. especially in the successful breakthrough of the high-end improvement product line, yuexiu real estate has achieved the ultimate in understanding customers, and the new products launched this year are all well received by the market.

at present, yuexiu real estate has launched the high-end improvement series "heyue series" and "yue series" in core cities such as beijing, shanghai, guangzhou and shenzhen, and has been warmly sought after by the market for its superior geographical location and excellent design quality. for example, yuexiu guanyue in guangzhou was hot-selling on its first launch in march, with opening sales exceeding 1.5 billion yuan; yuexiu suhe heyue mansion in putuo district, shanghai is yuexiu real estate's first top series heyue mansion in shanghai. it was sold out on its first launch in august, with a subscription rate of 280%, becoming the first project in putuo, shanghai to trigger points this year. the total sales amount of the first launch reached 1.735 billion yuan, once again confirming the strength of yuexiu real estate's high-end improvement products.

according to cric data, in the first half of 2024 guangzhou real estate sales list, yuexiu real estate won the top spot in both the full-caliber amount ranking and the flow amount ranking of guangzhou real estate companies in the first half of 2024. among them, pazhou south tod, yuexiu tianhe heyue mansion, yuexiu guanyue, yuexiu zhushi chengfa | jiangwan heyue were all shortlisted in the semi-annual top 10. in addition, xiangshanyue and yuexiu tianyue yuncui were shortlisted in the top 10 of the first half of the year list of commercial residential sales in beijing and chengdu respectively.

the improvement of yuexiu's product strength is closely related to its internal "good product" creation. it is understood that around the creation of "good products", yuexiu real estate's management team formed a "first team" and completed an in-depth product strength survey over 200 days, defining "good products" from the perspective of customer perception, and forming a "4×4 good product concept" with "quality, warmth, wisdom, and growth" as the core concept, combined with continuous innovation and lean management, to solidly promote the effective implementation of the good product concept.

in recent years, the central government has repeatedly proposed to accelerate the construction of a new model for real estate development, and recently it has once again set the tone for real estate development to boost confidence in development. yuexiu real estate will focus on building the concept of a "four good" enterprise of "good products, good services, good brands, and good teams", and enhance the "three new" capabilities of "new capabilities, new mechanisms, and new culture", while providing high-quality services to customers and promoting high-quality development of the company. looking to the future, lin zhaoyuan, chairman and executive director of yuexiu real estate, said: "in the second half of the year, the company will focus on the work theme of 'overcoming difficulties to stabilize performance, and improving capabilities through lean management', strive to achieve various annual operating goals, and continue to follow the path of high-quality and sustainable development under the new industry environment and new development model, and continuously create value for shareholders."