Yuexiu Property Targets 120.5 Billion Yuan Sales in 2025, Plans Substantial Land Investment Amidst Profit Contraction

GUANGZHOU, China – Yuexiu Property Company Limited, a prominent player in China’s real estate sector, has laid out an ambitious sales target for 2025, aiming for approximately 120.5 billion yuan. This represents a projected increase of 5.2% from the previous year’s figure.

The announcement, made on March 31, 2025, coincided with the release of the company’s performance results for the 2024 financial year. While the company is setting its sights on future growth, the 2024 figures revealed mixed results amidst a challenging market environment.

Reviewing 2024 Performance

For the year ended December 31, 2024, Yuexiu Property reported an operating income of approximately 86.4 billion yuan. This marked a year-on-year increase of 7.7%, indicating continued top-line growth.

However, profitability metrics showed a notable contraction. The gross profit margin for 2024 stood at about 10.5%, a decrease of 4.8 percentage points compared to the previous year. This decline reflects pressures on development costs and potentially selling prices within the market.

The impact on bottom-line figures was significant. Core net profit for the year was approximately 1.59 billion yuan, representing a substantial decrease of 54.4%. Profit attributable to equity holders also saw a sharp decline, falling by 67.3% to approximately 1.04 billion yuan.

Sales and Market Standing

Contract sales for 2024 reached approximately 114.54 billion yuan. This figure represented a year-on-year decrease of 19.4%, underscoring the broader market slowdown that impacted many developers.

Despite the dip in sales volume, 2024 marked a significant milestone for Yuexiu Property in terms of market positioning. For the first time, the company entered the top 10 of the national real estate enterprise sales list, securing the 8th position according to statistics compiled by CRIC (China Real Estate Information Corporation).

Setting Sights on 2025 and Land Strategy

Looking ahead, Yuexiu Property’s 2025 sales target of 120.5 billion yuan signals the company’s intent to resume sales growth following the 2024 contraction.

Central to achieving this target is a planned allocation for land acquisition. The company intends to spend approximately 30 billion yuan of equity funds on acquiring new land parcels during 2025. This significant investment highlights the company’s commitment to replenishing its development pipeline and supporting future sales expansion.

Financial Health and Liquidity

As of December 31, 2024, Yuexiu Property reported a total borrowing scale of about 103.89 billion yuan.

A positive development in the company’s financial management was the reduction in borrowing costs. The weighted average borrowing annual interest rate decreased by 33 basis points year-on-year, settling at 3.49% in 2024. The company attributed this improvement to smoother public market financing channels.

Specific examples of successful financing activities included the issuance of 2.5 billion yuan in domestic bonds with an interest rate of 2.61%, 1.8 billion yuan in targeted debt financing at approximately 2.27% interest, and the successful issuance of over 4 billion yuan in dim sum bonds overseas.

Furthermore, the company saw an improvement in its cash collection efficiency. The contract sales collection rate rose to 87% in 2024, contributing to a healthy net operating cash flow inflow of 21.73 billion yuan for the year.

Dividend Policy Update

In light of the financial results, the company announced it will not be paying a final dividend for the year-end 2024 period.

Shareholders received an interim dividend of HK$0.189 per ordinary share during 2024, which represented a payout ratio of 44%. Looking forward, the company expects its future dividend payout ratio to be in the range of 30% to 40%.

Chairman and Executive Director Lin Zhaoyuan commented on the company’s performance and future strategic plans, emphasizing the focus on navigating the market while pursuing sustainable development and market share expansion.

The 2024 results reflect the challenging operating environment for property developers in China, marked by pressure on margins and sales volumes. However, the company’s strategic positioning among the top national developers, combined with its focus on securing favorable financing and investing in future land bank, indicates its resolve to strengthen its market position and achieve its ambitious targets in 2025.