Trailing net profit reached 35.8bn, fell 40.5bn compared with the same period last year. Key positives came from lower selling expenses and lower deferred tax. Offsetting pressure came mainly from lower gross profit and higher administrative expenses. Detailed impact is shown below:

Is growth real and durable?

Trailing-12-month revenue declined 51.7% year on year — but the quarterly pace is slowing (−32% → −97%).

1 of the last 4 quarters grew year on year.

Net margin fell to −30.02%, losing 31.7pp. The main pressure comes from SG&A / Revenue rose 17.2pp and Gross margin fell 0.7pp (in addition, Other profit / Revenue rose 0.1pp added support while Net financial result / Revenue fell 16.1pp remained a drag).

Margin is under pressure from multiple sides — temporary and structural components need to be separated to properly assess the risk.

Developer revenue is recognised at handover — large swings between quarters are a property-sector feature, not a business trend. Read on a TTM basis and against the delivery schedule.

2025Q1: 61.9bn

2025Q2: 83.7bn

2025Q3: 27.9bn

2025Q4: 93.5bn

2026Q1: 1.8bn

2026Q2: 2.4bn

Is profit converting into cash?

Operating cash flow reached -28.4bn against investing cash flow of -98.6bn (annual cash-flow figures for 2025).

Post-investment cash flow was negative +127.0bn. Financing cash flow was positive +70.5bn.

CFO / net income was 2,83 lần.

After spending +5.1bn on fixed-asset investment, the business generated trailing free cash flow of −106.7bn.

For residential developers, FCF and CFO swing with project cycles — negative during investment phases and positive at handover — not representative of single-year efficiency.

How much income is non-core?

Non-core income reaches 93.7% of pre-tax profit — core earnings are thinner than the headline.

Within that, net financial result at +91.9%, other profit at +1.8% of PBT.

ROIC fell to −2.43%, losing 2.7pp. That translates to −2.43 in after-tax operating profit for every 100 units of operating capital. Both NOPAT margin narrowed 31.3pp and capital turnover fell 0.09x, with invested capital holding roughly steady — pressure came from both operational efficiency and asset efficiency.

For real estate developers, ROIC moves with project cycles — this is a reference signal, and the real assessment needs upcoming handover periods.

Leverage warrants monitoring, with net debt / equity at 0.82x and interest coverage only at −0.68x.

At present, short-term debt accounts for 82.9% of total debt, cash equals 10.3% of debt, and total debt stands at 800.2bn.

Leverage for residential developers should be read alongside project cycles, development inventory, and handover timing.

ROIC for residential developers swings with project cycles and handover timing. Capital structure is relatively light for the real estate sector — liabilities at 1.38x equity, net debt at 0.82x equity.

Customer advances 52.9bn (as of 2026Q2) — deposits on units/projects not yet handed over: revenue already sold but not yet recognised, a lead indicator of profit in upcoming delivery quarters. Advances fell 42.07% without a matching rise in TTM revenue — sales pace to watch. Advances cover only 6.31% of current inventory — most of the pipeline is not yet pre-sold.

Customer advances: 52.9bn · YoY −38.4bn · QoQ −14.7bn

Locked-in revenue: ~1.68x quarters of revenue (TTM)

Inventory pre-sold: 6.31%

Project inventory splits in two at 2026Q2: 838.9bn near-delivery stock (short-term) and 65.3bn construction-in-progress (long-term). Weighted toward near-delivery — the revenue-recognition cycle is approaching.

Near-delivery (ST): 838.9bn (92.78%)

Construction-in-progress (LT): 65.3bn (7.22%)

For a developer the question is not debt-to-equity but whether borrowings are backed by the project pipeline. At 2026Q2, net debt 717.7bn vs project value 904.1bn — ratio 79.38%; the project pipeline backs net debt 1.26x over.

Net debt / project value: 79.38%

Development inventory ended the period at 794.2bn, about 35.7% of total assets — reflecting projects in progress awaiting handover.

Over the last 12 months, working capital absorbed 85.0bn of cash, mainly because of higher receivables and lower payables. Part of that drag was offset by lower inventories.