Trailing net profit reached 4,174.2bn, rose 3,965.5bn compared with the same period last year. Key positives came from lower minority interests, higher gross profit, and better other profit. Offsetting pressure came mainly from lower financial income. Detailed impact is shown below:

Is growth real and durable?

Trailing-12-month revenue declined 20.5% year on year — but the quarterly pace is slowing (−16% → −22%).

1 of the last 4 quarters grew year on year.

Net margin expanded to 51.00%, rising 29.0pp. Core operating signals are improving as Gross margin rose 28.6pp are enough to offset pressure from SG&A / Revenue rose 2.3pp (in addition, Other profit / Revenue rose 11.3pp added support while Net financial result / Revenue fell 5.5pp remained a drag).

The improvement comes from core operations — this is a high-quality margin expansion.

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: 1,778.2bn

2025Q2: 1,936.6bn

2025Q3: 1,683.1bn

2025Q4: 1,567.4bn

2026Q1: 3,586.7bn

2026Q2: 1,509.1bn

Is profit converting into cash?

High leverage combined with negative cash flow reveals the actual liquidity pressure. Operating cash flow reached -6,145.4bn against investing cash flow of 266.4bn (annual cash-flow figures for 2025).

Post-investment cash flow was negative +5,879.0bn. Financing cash flow was positive +5,666.9bn.

CFO / net income was −0,55 lần.

After spending +26.8bn on fixed-asset investment, the business generated trailing free cash flow of −2,311.3bn.

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 36.0% of pre-tax profit — core earnings are thinner than the headline.

Within that, net financial result at +21.9%, other profit at +14.1% of PBT.

ROIC edged up to 3.01%, rising 0.8pp. That translates to 3.01 in after-tax operating profit for every 100 units of operating capital. The main driver is NOPAT margin rose 21.0pp, with capital turnover broadly stable; while invested capital rose by 15,275bn.

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 1.04x and interest coverage only at 1.45x.

At present, short-term debt accounts for 41.8% of total debt, cash equals 6.7% of debt, and total debt stands at 72,911.0bn.

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 typical for the real estate sector — liabilities at 3.24x equity, net debt at 1.04x equity.

Customer advances 24,551.4bn (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 rose 33.17% YoY — strong sales locking in future revenue. Advances cover only 15.57% of current inventory — most of the pipeline is not yet pre-sold.

Customer advances: 24,551.4bn · YoY +6,114.9bn · QoQ +2,508.0bn

Locked-in revenue: ~11.77x quarters of revenue (TTM)

Inventory pre-sold: 15.57%

Project inventory splits in two at 2026Q2: 157,711.9bn near-delivery stock (short-term) and 363.1bn construction-in-progress (long-term). Weighted toward near-delivery — the revenue-recognition cycle is approaching.

Near-delivery (ST): 157,711.9bn (99.77%)

Construction-in-progress (LT): 363.1bn (0.23%)

For a developer the question is not debt-to-equity but whether borrowings are backed by the project pipeline. At 2026Q2, net debt 68,032.2bn vs project value 158,075.0bn — ratio 43.04%; the project pipeline backs net debt 2.32x over.

Net debt / project value: 43.04%

Development inventory ended the period at 153,324.0bn, about 61.4% of total assets — reflecting projects in progress awaiting handover.

Over the last 12 months, working capital absorbed 1,384.0bn of cash, mainly because of higher inventories and lower payables. Part of that drag was offset by lower receivables.