Trailing net profit reached 263.9bn, fell 197.3bn compared with the same period last year. Offsetting pressure came mainly from lower gross profit, lower financial income, higher tax, and higher selling expenses. Detailed impact is shown below:

Net margin fell to 10.34%, losing 29.2pp. The main pressure is Gross margin fell 30.3pp, outweighing the improvement in SG&A / Revenue fell 4.1pp (with lingering pressure from Net financial result / Revenue fell 2.0pp and Other profit / Revenue fell 1.1pp).

The pressure comes from core operations — this is a concerning type of decline, not a one-off movement.

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.

2024Q4: 763.9bn

2025Q1: 126.2bn

2025Q2: 508.1bn

2025Q3: 684.0bn

2025Q4: 1,162.5bn

2026Q1: 231.1bn

ROIC fell to 9.95%, losing 7.9pp. That translates to 9.95 in after-tax operating profit for every 100 units of operating capital. Although capital turnover rose 0.45x, NOPAT margin narrowed 28.3pp still pulled ROIC lower, while invested capital rose by 269bn.

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

ROIC for residential developers swings with project cycles and handover timing — the balance sheet below adds perspective. Capital structure is relatively light for the real estate sector — liabilities at 1.65x equity, net debt at 0.65x equity.

Customer advances 394.0bn (as of 2026Q1) — deposits on units/projects not yet handed over: revenue already sold but not yet recognised, a lead indicator of profit in upcoming delivery quarters.

Customer advances: 394.0bn · YoY −16.0bn · QoQ −75.9bn

Locked-in revenue: ~0.61x quarters of revenue (TTM)

Inventory pre-sold: 109.68%

Project inventory splits in two at 2026Q1: 359.2bn near-delivery stock (short-term) and 14.7bn construction-in-progress (long-term). Weighted toward near-delivery — the revenue-recognition cycle is approaching.

Near-delivery (ST): 359.2bn (96.07%)

Construction-in-progress (LT): 14.7bn (3.93%)

For a developer the question is not debt-to-equity but whether borrowings are backed by the project pipeline. At 2026Q1, net debt 1,129.4bn vs project value 373.9bn — ratio 302.06% — net debt is 3.02x the project pipeline, far beyond the asset layer that should back it. Leverage sits in high-risk territory; repayment depends on sources outside the current pipeline.

Net debt / project value: 302.06%

None

Over the last 12 months, working capital released 0.0bn of cash.

Leverage is balanced for now, with net debt / equity at 0.65x and interest coverage at 2.26x.

At present, short-term debt accounts for 91.0% of total debt, cash equals 2.2% of debt, and total debt stands at 1,155.3bn.

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

Operating cash flow reached -185.7bn in 2025, against investing cash flow of 276.3bn.

Post-investment cash flow was positive +90.7bn. Financing cash flow was negative +8.9bn.

CFO / net income was −1,14 lần.

After spending +33.2bn on fixed-asset investment, the business generated trailing free cash flow of −333.5bn.

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