Trailing net profit reached 2,138.6bn, fell 1,400.1bn compared with the same period last year. Key positives came from lower tax, higher associates income, and lower minority interests. Offsetting pressure came mainly from lower gross profit, higher finance costs, and higher administrative expenses. Detailed impact is shown below:

Is growth real and durable?

Trailing-12-month revenue declined 44.7% year on year — but the quarterly pace is slowing (−33% → −65%).

0 of the last 4 quarters grew year on year.

Net margin expanded to 51.63%, rising 2.4pp. Core operating signals are improving as Gross margin rose 4.2pp are enough to offset pressure from SG&A / Revenue rose 17.6pp (with lingering pressure from Net financial result / Revenue fell 19.9pp and Other profit / Revenue fell 0.4pp).

Margin improves from both core operations and non-core items — the core foundation is positive, but the sustainability of non-core contributions needs monitoring.

Is profit converting into cash?

High leverage combined with negative cash flow reveals the actual liquidity pressure. Operating cash flow reached -222.9bn against investing cash flow of -1,871.1bn (annual cash-flow figures for 2025).

Post-investment cash flow was negative +2,094.0bn. Financing cash flow was positive +2,238.7bn.

CFO / net income was −1,14 lần.

After spending +130.3bn on fixed-asset investment, the business generated trailing free cash flow of −2,563.4bn.

FCF and CFO in this industry should be read alongside investment cycles and business model specifics.

How much income is non-core?

About 98% of pre-tax profit comes from core operations.

Within that, net financial result at −70.9%, other profit at +2.1% of PBT.

ROIC fell to 4.70%, losing 4.8pp. That translates to 4.70 in after-tax operating profit for every 100 units of operating capital. Both NOPAT margin narrowed 0.5pp and capital turnover fell 0.09x, while invested capital rose by 4,134bn — pressure came from both operational efficiency and asset efficiency.

Industry characteristics make ROIC cyclical — this is a reference signal and should be read with the business context.

Cash conversion cycle lengthened by 3213.0 days versus the same period last year. The main moves came from DIO rose 3009.7 days, DSO rose 232.2 days, and DPO rose 28.9 days.

Working capital cycle lengthened mainly due to slower inventory turnover — more capital is being tied up in inventory.

Working capital metrics in this industry should be read alongside business model specifics — DSO/DIO/DPO/CCC can be distorted by operational factors not reflected in raw numbers.

Leverage warrants monitoring, with net debt / equity at 1.11x and interest coverage only at 1.34x.

At present, short-term debt accounts for 35.8% of total debt, cash equals 5.8% of debt, and total debt stands at 26,333.9bn.

Leverage should be read alongside project structure, regulated assets, or industry-specific capital recovery.

ROIC should be read with industry context. Capital structure is relatively light for the real estate sector — liabilities at 1.61x equity, net debt at 1.11x equity.

Unearned revenue 2,148.2bn (as of 2026Q2, 3.43% of total assets) — land-lease cash already collected, waiting to be amortised into revenue; ≈ 0.5 years of current revenue already banked. For a collect-upfront park amortising over 30-50 years, accounting profit typically UNDERSTATES true cash health — the cash arrived long ago; accounting recognises it gradually. Over the last four quarters, operating cash flow was 2,433.0bn vs net profit 2,169.0bn. Up 114.86% YoY — the future-amortisation reserve is thickening.

Unearned revenue (ST + LT): 2,148.2bn

Share of total assets: 3.43%

Years of revenue banked: 0.5

Development inventory ended the period at 22,179.0bn, about 36.4% of total assets — reflecting projects in progress awaiting handover.

Over the last 12 months, working capital absorbed 645.1bn of cash, mainly because of higher receivables and higher inventories. Part of that drag was offset by higher payables.