The interim net profit of the land increased by 20%.

Yuexiu Real Estate (00123) net profit increased 19.2% in the first half of the year to 1.31 billion yuan (intermediate yuan), interim dividend of 4.2 Hong Kong cents, the current dividend yield of 6.5%. During the period, the core net profit was 1.12 billion yuan, and the gross profit margin increased by 0.9 percentage points to 25.8%.

Sales return rate is lower than expected

The regulation of the mainland property market has further increased this year, and the funding has also tightened. Lin Zhaoyuan, vice chairman and general manager, acknowledged that the speed of sales repayments has slowed down, indicating that due to the unpaid amount of sales of more than 10 billion yuan in June, the rate of return in the first half of the year was dragged down. 64%, below the 80% expectation, but stressed that if the impact is removed, the payback rate is 74%.

Regulation also affects its land-buying strategy. Jiang Yongjin, general manager of the Investor Relations Department, said that in the first half of the year, he spent about 8.4 billion yuan to purchase 9 sites, most of which were cooperative projects. Management explained that it is a risky and prudent investment consideration. Jiang Yongjin said that it will not rule out the acquisition of parent company projects in the second half of the year, but under volatile market conditions, it will be cautious to buy land in the open market. Lin Zhaoyuan also pointed out that under the regulatory background, higher requirements were also placed on the internal rate of return and gross profit margin of new projects.

Chen Jing, the chief financial officer, also revealed that the financial costs of the industry have risen significantly. The Yuexiu real estate development loan cost increased by 10% to 20% during the period, but there is sufficient quota to meet the capital demand, and the annual financing cost is controlled within 5%.

Despite the cautious attitude towards the big environment, Lin Zhaoyuan still said that the market is expected to be stable in the second half of the year, maintaining the target of 55 billion yuan in annual contract sales, and will strive to meet the standards or even exceed the standard. In the first seven months, Yuexiu real estate contract sales were 30.13 billion yuan, up 39% year-on-year.