Group 1 - The core viewpoint of the article highlights the decline in the stock price of CIFI Holdings Group, which fell by 5.2% to 0.237 yuan per share, with a trading volume of 23.727 million yuan as of 15:24 on August 25 [1] - CIFI Holdings is a comprehensive enterprise group engaged in residential and commercial complex development, property and urban services, green building technology, and health care services [1] - In 2023, the company achieved a revenue of 71.83 billion yuan and a net asset of 64.6 billion yuan, ranking 48th among the top 100 enterprises in Shanghai and 8th in delivery capability among real estate developers [1] Group 2 - As of the mid-2025 report, CIFI Holdings Group reported a total operating revenue of 12.281 billion yuan and a net profit of -6.358 billion yuan [2]

Core Insights - The article discusses the revival of two notable luxury residential projects in Shanghai, highlighting the contrasting fates of融创外滩壹号院 and八埭头滨江园, with the former experiencing a resurgence in sales while the latter remains stalled [1][12]. Group 1: Market Dynamics - The bad asset construction business is rapidly growing, with new contract areas increasing at an annual rate of approximately 20%, contrasting with the declining new construction area in the real estate sector [3][5]. - The scale of the construction industry for bad assets is expected to reach trillions, with a penetration rate of around 10%, indicating significant growth potential compared to developed countries [5][7]. Group 2: Company Strategies - Many real estate companies are entering the bad asset construction market as a second growth curve, with companies like绿城管理 leading the way, achieving a market share exceeding 20% [7][15]. - Companies such as旭辉 and融创 are actively pursuing bad asset projects, with旭辉 announcing a comprehensive entry into the real estate construction business [12][14]. Group 3: Financial Involvement - In the first half of the year, asset management companies (AMCs) invested at least 131.6 billion yuan in revitalizing real estate bad assets [8]. - The collaboration between AMCs and construction companies allows real estate firms to engage in the market with minimal capital investment, thus accessing substantial opportunities [11][20]. Group 4: Project Revitalization - The revival of projects like八埭头滨江园 involves significant financial input and strategic partnerships, with expectations of enhancing product quality and community planning [19][20]. - The article emphasizes the importance of project conditions, intervention timing, and the reputation of the construction company in determining the success of revitalized projects [23][24].

Core Viewpoint - CIFI Holdings has successfully passed its offshore debt restructuring plan, which was approved by creditors on June 3 and subsequently by the Hong Kong court on June 26, laying a solid foundation for its implementation [1][9] Financial Performance - For the six months ending June 30, 2025, CIFI Holdings reported confirmed revenue of approximately 12.281 billion yuan, a year-on-year decrease of 39.2% [2][3] - The net loss attributable to shareholders was approximately 6.358 billion yuan, compared to a loss of 4.939 billion yuan in the same period last year [1] - The gross profit margin fell from 13.4% in 2024 to 8.0% in 2025 [1] Sales and Revenue Breakdown - Property sales and related services generated approximately 8.12 billion yuan, down 49.9% year-on-year, accounting for 66.1% of total revenue [2] - Rental and other service income was 786 million yuan, a slight decrease of 0.3%, making up 6.4% of total revenue [2] - Property management and other services saw a revenue increase of 5.2%, contributing 3.375 billion yuan, or 27.5% of total revenue [2] Contract Sales - In the first half of the year, CIFI Holdings achieved contract sales of approximately 10.16 billion yuan, a 50% decrease from 20.31 billion yuan in the same period last year [3] - The average contract sales price was approximately 10,274 yuan per square meter [3] Debt Restructuring Progress - CIFI Holdings is actively advancing the restructuring of seven public bonds domestically, with six of them having received creditor approval [1][10] - The offshore debt restructuring plan involves approximately 6.8 billion USD in total principal, with an expected reduction of about 5.27 billion USD (approximately 37.9 billion yuan), representing 66% of total offshore debt [9][10] Future Strategy - The company aims for a "second entrepreneurship" focusing on a new model with low leverage and high quality, moving away from high leverage and high turnover strategies [7] - CIFI Holdings plans to concentrate on three core business areas: stable rental income from quality commercial assets, focused development in key cities, and real estate asset management [7] Investment Properties - As of June 30, the company held 33 investment properties with a total area of approximately 2.282 million square meters [5] - The fair value loss on investment properties for the first half of 2025 was approximately 675.5 million yuan, compared to 371 million yuan in the same period last year [6]

Core Viewpoint - CIFI Holdings has successfully passed its offshore debt restructuring plan, which was approved by creditors on June 3 and confirmed by the Hong Kong court on June 26, laying a solid foundation for its implementation [1][9] Financial Performance - For the six months ending June 30, 2025, CIFI Holdings reported confirmed revenue of approximately 12.281 billion yuan, a year-on-year decrease of 39.2% [2][3] - The net loss attributable to shareholders was approximately 6.358 billion yuan, compared to a loss of 4.939 billion yuan in the same period last year [1] - The gross profit margin fell from 13.4% in 2024 to 8.0% in 2025 [1] Sales and Revenue Breakdown - CIFI Holdings achieved contract sales of approximately 10.16 billion yuan in the first half of the year, a 50% decrease from 20.31 billion yuan in the same period last year [3] - The sales area for contracts was approximately 989,300 square meters, down 40.3% year-on-year [3] - The average contract sales price was approximately 10,274 yuan per square meter [3] - For the six months ending June 30, 2025, confirmed revenue from property sales was approximately 7.862 billion yuan, a year-on-year decline of 50.4% [4] Debt Restructuring Progress - CIFI Holdings is actively advancing the restructuring of seven publicly issued domestic bonds, with six of the restructuring plans already approved by bondholders [1][10] - The offshore debt restructuring plan involves approximately 6.8 billion USD in total principal, with an expected reduction of about 5.27 billion USD (approximately 37.9 billion yuan), accounting for 66% of the total offshore debt [9][10] Future Strategy - CIFI Holdings aims for a "second entrepreneurship," focusing on a new model with low leverage and high quality, moving away from high leverage and high turnover strategies [7] - The company plans to concentrate on three core business areas: stable rental income from quality commercial assets, focused development in key cities, and real estate asset management [7] Investment Properties - As of June 30, CIFI Holdings held 33 investment properties with a total area of approximately 2.282 million square meters [5] - The fair value loss on investment properties for the first half of 2025 was approximately 675.5 million yuan, compared to 371 million yuan in the same period last year [6]

Investment Rating - The report maintains a "Positive" rating for the real estate and property management sectors [2][3]. Core Views - The report indicates that the broad housing demand in China has reached a bottom, although the volume and price have not yet entered a positive cycle. It predicts that the overall real estate market will continue to stabilize, with further policies expected to be introduced to support this trend [3][29]. - The report highlights that the performance of quality companies in the real estate sector remains resilient despite overall industry pressure, with some companies showing significant growth in profits [3][29]. - The report emphasizes the potential for new development tracks in the housing market, driven by policies aimed at improving housing quality and affordability, particularly in core cities [3][29]. Industry Data Summary New Housing Transaction Volume - In the week of August 16-22, 2025, new housing transactions in 34 key cities totaled 1.834 million square meters, a week-on-week increase of 11.7%. However, this is a decline of 37.1% compared to the average weekly transaction volume in 2024 [4][6]. - Year-on-year, new housing transactions in August 2025 decreased by 20.9% compared to August 2024, with first and second-tier cities seeing a decline of 19.9% and third and fourth-tier cities experiencing a decline of 32.7% [6][7]. Second-Hand Housing Transaction Volume - In the same week, second-hand housing transactions in 13 key cities totaled 1.081 million square meters, reflecting a week-on-week increase of 7.2%. Cumulatively, second-hand housing transactions in August 2025 showed a year-on-year decrease of 0.1% [11][12]. Inventory and Market Dynamics - In the week of August 16-22, 2025, 15 key cities launched 1 million square meters of new housing, with total sales of 810,000 square meters, resulting in a sales-to-launch ratio of 0.81. The average monthly inventory clearance period increased to 22 months [19][20]. - The report notes that the overall financing scale for real estate companies continues to grow, with July 2025 seeing bond financing of 71.39 billion yuan, marking a significant increase compared to previous months [29][31]. Policy and News Tracking - The report discusses the emphasis on stabilizing the real estate market through effective macro policies, including the issuance of special bonds for land acquisition and urban renewal projects [29][31]. - It highlights various local government initiatives aimed at improving housing accessibility and affordability, such as the introduction of "housing vouchers" in Guangzhou and adjustments to housing fund policies in Beijing and Kunming [29][31]. Company Dynamics - The report tracks the performance of key real estate companies, noting that while some companies like Vanke and Greentown China faced profit declines, others like Jianfa International and Greentown Services reported profit growth [3][29]. - It also mentions the successful issuance of bonds by several companies, indicating a positive trend in financing activities within the sector [3][29].

Core Viewpoint - Yongsheng Services reported a revenue increase but a significant decline in profit for the first half of the year, indicating a situation of "increased revenue but decreased profit" [2][16]. Financial Performance - Yongsheng Services achieved a revenue of approximately 3.461 billion yuan, a year-on-year increase of about 2.7% [2][6]. - The profit attributable to shareholders was approximately 214 million yuan, reflecting a year-on-year decrease of about 19.4% [2][16]. - The company's gross profit fell to approximately 645 million yuan, a decline of about 10.0% year-on-year, with the gross margin decreasing from 21.3% to 18.6% [14][15]. Revenue Structure - The property management service segment remains the primary revenue contributor, generating 2.669 billion yuan, accounting for 77.1% of total revenue, up from 73.1% in the previous year [7]. - Revenue from third-party projects increased, with its share rising from 70.9% to 77%, while revenue from projects associated with Xuhui decreased from 29.1% to 23% [8]. Challenges and Strategic Changes - The company has faced difficulties in recent years, particularly due to the fallout from Xuhui Holdings, leading to a decline in profits for two consecutive years [3]. - Yongsheng Services is undergoing a transformation to reduce its reliance on Xuhui, with a name change and a strategic focus on expanding its third-party client base [8][17]. - The management acknowledged that the transformation process is more challenging than anticipated, emphasizing the need for a profound change to adapt to industry shifts [17][18]. Dividend Distribution - Despite the profit decline, the board proposed an interim dividend of 0.0678 HKD per share and a special dividend of 0.0271 HKD per share, totaling 0.0949 HKD per share [4]. Market Reaction - On August 22, the stock price of Yongsheng Services opened lower and closed at 2.080 HKD per share, down 4.59% [5].

旭辉控股集团(00884)发布截至2025年6月30日止6个月中期业绩，该集团取得收入人民币122.81亿元(单 位下同)，毛利9.83亿元，股东权益应占亏损63.58亿元，每股亏损0.61元。 经营活动所得现金净额继续取得正数。 本集团(包括其合营公司及联营公司)于2025年上半年完成交付约1.5万套物业单位，于2022年至2025年上 半年合共完成交付超过28.5万套。 投资物业租金及其他相关服务收入约为7.86亿元。物业管理及其他服务收入约为33.75亿元，持续录得增 长。未偿还债务总额较去年同期下降约44亿元。 ...

投资物业租金及其他相关服务收入约为7.86亿元。 物业管理及其他服务收入约为33.75亿元，持续录得 增长。未偿还债务总额较去年同期下降约44亿元。 经营活动所得现金净额继续取得正数。 智通财经APP讯，旭辉控股集团(00884)发布截至2025年6月30日止6个月中期业绩，该集团取得收入人民 币122.81亿元(单位下同)，毛利9.83亿元，股东权益应占亏损63.58亿元，每股亏损0.61元。 本集团(包括其合营公司及联营公司)于2025年上半年完成交付约1.5万套物业单位，于2022年至2025年上 半年合共完成交付超过28.5万套。 ...

[Performance Summary](index=1&type=section&id=%E4%BA%8C%E9%9B%B6%E4%BA%8C%E4%BA%94%E5%B9%B4%E4%B8%AD%E6%9C%9F%E4%B8%9A%E7%BB%A9%E6%91%98%E8%A6%81) The Group demonstrated resilience in core operations amidst a challenging market environment in the first half of 2025 - Property delivery: Approximately **15 thousand units** delivered, with over **285 thousand units** cumulatively since 2022[2](index=2&type=chunk) - Investment properties: Rental and related service income stable at approximately **RMB 786 million**[2](index=2&type=chunk) - Property management: Property management and other service income grew to approximately **RMB 3.375 billion**[2](index=2&type=chunk) - Debt management: Total outstanding debt decreased by approximately **RMB 4.4 billion** year-on-year[2](index=2&type=chunk) - Cash flow: Net cash generated from operating activities remained positive[2](index=2&type=chunk) [Financial Statements](index=2&type=section&id=Financial%20Statements) [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=2&type=section&id=%E7%AE%80%E6%98%8E%E7%BB%BC%E5%90%88%E6%8D%9F%E7%9B%8A%E5%8F%8A%E5%85%B6%E4%BB%96%E5%85%A8%E9%9D%A2%E6%94%B6%E7%9B%8A%E8%A1%A8) In H1 2025, Group revenue decreased by 39.2% to RMB 12.28 billion, with gross profit sharply down 63.7%, leading to a net loss of RMB 6.24 billion and basic loss per share of RMB 0.61 Condensed Consolidated Statement of Profit or Loss Key Data (For the six months ended June 30) | Indicator | 2025 (RMB thousand) | 2024 (RMB thousand) | Year-on-year Change | | :--- | :--- | :--- | :--- | | Revenue | 12,281,324 | 20,206,011 | -39.2% | | Gross Profit | 983,152 | 2,708,108 | -63.7% | | Loss Before Tax | (6,119,764) | (3,453,242) | +77.2% | | Loss for the Period | (6,239,277) | (4,440,408) | +40.5% | | Loss Attributable to Equity Holders of the Company | (6,357,763) | (4,939,432) | +28.7% | | Basic Loss Per Share (RMB) | (0.61) | (0.47) | +29.8% | [Condensed Consolidated Statement of Financial Position](index=4&type=section&id=%E7%AE%80%E6%98%8E%E7%BB%BC%E5%90%88%E8%B4%A2%E5%8A%A1%E7%8A%B6%E5%86%B5%E8%A1%A8) As of June 30, 2025, total assets declined to RMB 241.32 billion, with total liabilities at RMB 196.91 billion, resulting in a net current liability of RMB 8.83 billion, indicating increased short-term solvency pressure Condensed Consolidated Statement of Financial Position Key Data | Indicator | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | Period Change | | :--- | :--- | :--- | :--- | | **Total Assets** | **241,319,850** | **256,168,485** | **-5.8%** | | Non-current Assets | 78,453,990 | 78,912,643 | -0.6% | | Current Assets | 162,865,860 | 177,255,842 | -8.1% | | **Total Liabilities** | **196,914,157** | **204,249,584** | **-3.6%** | | Current Liabilities | 171,694,418 | 176,299,544 | -2.6% | | Non-current Liabilities | 25,219,739 | 27,950,040 | -9.8% | | **Net Current Assets (Liabilities)** | **(8,828,558)** | **956,298** | **-** | | **Total Equity** | **44,405,693** | **51,918,901** | **-14.5%** | [Notes to the Financial Statements](index=6&type=section&id=%E7%AE%80%E6%98%8E%E7%BB%BC%E5%90%88%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8%E9%99%84%E6%B3%A8) [Basis of Preparation and Going Concern Risk](index=6&type=section&id=2.%20%E7%BC%96%E5%88%B6%E5%9F%BA%E5%87%86) Despite preparation on a going concern basis, significant uncertainties exist due to a RMB 6.36 billion loss and over RMB 57 billion in defaulted debts, with ongoing mitigation efforts uncertain - As of June 30, 2025, the Group faces severe financial challenges posing significant going concern uncertainty[10](index=10&type=chunk) - Operating performance: Net loss attributable to shareholders of approximately **RMB 6.36 billion** in H1[10](index=10&type=chunk) - Liquidity position: Net current liabilities reached **RMB 8.83 billion**[10](index=10&type=chunk) - Debt default: Unpaid principal and interest on bank borrowings, offshore senior notes, and convertible bonds totaled over **RMB 57 billion**, constituting default or cross-default[10](index=10&type=chunk) - To alleviate liquidity pressure, the Group has adopted several measures[11](index=11&type=chunk)[13](index=13&type=chunk) - Debt restructuring: Scheme of arrangement for offshore debt restructuring approved by the court[11](index=11&type=chunk) - Loan extension: Actively negotiating with domestic financial institutions for renewal and extension of existing borrowings[11](index=11&type=chunk) - Cost control: Implementing strict cost-cutting measures, reducing non-core businesses and expenses[13](index=13&type=chunk) - Asset disposal: Seeking opportunities to dispose of non-core assets to enhance cash position[13](index=13&type=chunk) [Segment Information](index=8&type=section&id=4.%20%E5%88%86%E9%83%A8%E8%B5%84%E6%96%99) The Group's property sales revenue declined 49.9% to RMB 8.12 billion, resulting in a RMB 2.06 billion segment loss, while property management revenue grew 5.2% to RMB 3.38 billion, and property investment revenue remained stable Segment Revenue and (Loss)/Profit (For the six months ended June 30) | Segment | 2025 (RMB thousand) | 2024 (RMB thousand) | Year-on-year Change | | :--- | :--- | :--- | :--- | | **Segment Revenue** | | | | | Property sales and other property related services | 8,119,887 | 16,208,285 | -49.9% | | Property investment | 786,050 | 788,703 | -0.3% | | Property management and other services | 3,375,387 | 3,209,023 | +5.2% | | **Total** | **12,281,324** | **20,206,011** | **-39.2%** | | **Segment (Loss)/Profit** | | | | | Property sales and other property related services | (2,057,775) | (747,984) | -175.1% | | Property investment | 466,199 | 462,689 | +0.8% | | Property management and other services | 591,220 | 669,279 | -11.7% | | **Total** | **(1,000,356)** | **383,984** | **-** | [Analysis of Key Profit and Loss Items](index=10&type=section&id=Key%20P%26L%20Items%20Analysis) Total finance costs decreased by 15.6%, but expensed finance costs increased by 5.2% to RMB 1.94 billion due to a significant reduction in capitalized amounts, while income tax expense sharply declined by 87.9% Finance Cost Analysis (For the six months ended June 30) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Total interest expense on borrowings | 2,340,408 | 2,772,086 | | Less: Amount capitalized | (403,563) | (930,771) | | **Finance costs charged to profit or loss** | **1,936,845** | **1,841,315** | - Total income tax expense for the period was **RMB 119.5 million**, a significant decrease of **87.9%** from RMB 987.2 million in the prior year, primarily due to the expanded pre-tax loss[22](index=22&type=chunk) [Analysis of Key Balance Sheet Items](index=13&type=section&id=Key%20Balance%20Sheet%20Items%20Analysis) Net trade receivables increased to RMB 4.34 billion, with a rise in overdue amounts, while trade payables remained stable at RMB 26.49 billion, with a high proportion (45.6%) over one year old Trade Receivables Ageing Analysis (Net of loss allowance) | Ageing | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Within 60 days | 1,806,146 | 1,801,275 | | 61 to 180 days | 531,287 | 464,198 | | 181 to 365 days | 599,032 | 338,613 | | Over 1 year | 1,407,033 | 1,129,935 | | **Total** | **4,343,498** | **3,734,021** | Trade Payables Ageing Analysis | Ageing | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Within 60 days | 11,395,928 | 10,927,385 | | 61 to 180 days | 1,428,366 | 1,020,088 | | 181 to 365 days | 1,599,048 | 2,194,751 | | Over 1 year | 12,066,948 | 12,624,045 | | **Total** | **26,490,290** | **26,766,269** | [Summary of Independent Review Report](index=16&type=section&id=%E7%8B%AC%E7%AB%8B%E5%AE%A1%E9%98%85%E6%8A%A5%E5%91%8A%E6%91%98%E8%A6%81) [Material Uncertainty Related to Going Concern](index=16&type=section&id=%E4%B8%8E%E6%8C%81%E7%BB%AD%E7%BB%8F%E8%90%A5%E6%9C%89%E5%85%B3%E7%9A%84%E9%87%8D%E5%A4%A7%E4%B8%8D%E7%A1%AE%E5%AE%9A%E5%9B%A0%E7%B4%A0) The independent auditor's review report highlights significant uncertainties regarding the Group's ability to continue as a going concern, citing substantial losses, net current liabilities, and widespread debt defaults - The independent auditor's review report emphasizes "Material Uncertainty Related to Going Concern," noting that the Group's financial condition, including substantial losses, net current liabilities, and debt defaults, indicates significant uncertainty that may cast substantial doubt on its ability to continue as a going concern[37](index=37&type=chunk)[38](index=38&type=chunk) [Management Discussion and Analysis](index=16&type=section&id=%E7%AE%A1%E7%90%86%E5%B1%82%E8%AE%A8%E8%AE%BA%E4%B8%8E%E5%88%86%E6%9E%90) [Market Review and Outlook](index=16&type=section&id=%E4%BA%8C%E9%9B%B6%E4%BA%8C%E4%BA%94%E5%B9%B4%E4%B8%8A%E5%8D%8A%E5%B9%B4%E5%9B%9E%E9%A1%B5%E5%8F%8A%E4%B8%8B%E5%8D%8A%E5%B9%B4%E5%B1%95%E6%9C%9B) Management observes a structural stabilization in the H1 2025 China property market, with sales decline narrowing but recovery challenges persisting, expecting continued differentiation in H2 - Management's core market assessment[39](index=39&type=chunk)[41](index=41&type=chunk)[42](index=42&type=chunk) - Current market: Policy stimulus effects are weakening, market recovery faces challenges, new home inventory pressure is high, property prices are still bottoming out, and market segmentation is evident[39](index=39&type=chunk) - H2 Outlook: The market will continue its structural stabilization, with higher-tier cities showing more resilient sales, second-hand home transactions outperforming new homes, and high-quality residential properties remaining popular[41](index=41&type=chunk) - Corporate strategy: Property developers will highly focus investments on core cities and core locations, accelerating the transition to asset-light models like project management and commercial operations[42](index=42&type=chunk) [Business Review](index=18&type=section&id=Business%20Review) The Group's business performance diverged in H1 2025, with core property development sales halved, investment property income stable, and property management achieving robust 5.2% growth [Property Development](index=18&type=section&id=%E6%88%BF%E5%9C%B0%E4%BA%A7%E5%BC%80%E5%8F%91) In H1 2025, contract sales plummeted 50.0% to RMB 10.16 billion, with an average selling price of RMB 10,274/sqm, primarily in central-western regions and second-tier cities Contract Sales Performance (For the six months ended June 30, 2025) | Indicator | Amount | Year-on-year Change | | :--- | :--- | :--- | | Contract Sales Value | RMB 10.16 billion | -50.0% | | Contract Sales Area | 0.9893 million square meters | -40.3% | | Average Contract Sales Price | RMB 10,274/square meter | -16.2% (estimated) | - Geographically, the central-western region contributed **37.6%** of contract sales, with the Bohai Rim and Yangtze River Delta contributing **25.5%** and **24.4%** respectively[45](index=45&type=chunk) - By city tier, first and second-tier cities collectively accounted for **87.0%** of sales[45](index=45&type=chunk) - Recognized property sales revenue for the period was **RMB 7.86 billion**, a **50.4%** year-on-year decrease, with major delivery regions being the central-western and Yangtze River Delta[48](index=48&type=chunk) [Property Investment](index=21&type=section&id=%E6%88%BF%E5%9C%B0%E4%BA%A7%E6%8A%95%E8%B5%84) Investment property rental and other service income remained stable at approximately RMB 786 million in H1 2025, a slight 0.3% decrease, with 33 properties totaling 2.282 million sqm held - Investment property rental and other service income was **RMB 786 million**, a **0.3%** year-on-year decrease, with major income sources from core projects in Shanghai and Beijing[52](index=52&type=chunk) [Property Management](index=21&type=section&id=%E7%89%A9%E4%B8%9A%E7%AE%A1%E7%90%86) Property management and other service income achieved robust growth, increasing by 5.2% to approximately RMB 3.38 billion in H1 2025, providing a stable revenue stream - Property management and other service income increased by **5.2%** year-on-year to **RMB 3.375 billion**, primarily due to an increase in the number of properties under management[53](index=53&type=chunk) [Financial Review](index=22&type=section&id=Financial%20Review) The Group's financial position further deteriorated in H1 2025, with significant declines in revenue and gross profit, expanded net loss due to impairments, and increased leverage and liquidity risks [Revenue and Profit Analysis](index=22&type=section&id=Revenue%20and%20Profit%20Analysis) Total revenue decreased by 39.2% to RMB 12.28 billion, primarily due to reduced property sales, with gross margin falling to 8.0%, and significant impairment losses expanding the net loss to RMB 6.36 billion Breakdown of Recognized Revenue (For the six months ended June 30) | Revenue Category | 2025 (RMB thousand) | % of Total | 2024 (RMB thousand) | % of Total | Year-on-year Change | | :--- | :--- | :--- | :--- | :--- | :--- | | Property sales and other property related services | 8,119,887 | 66.1% | 16,208,285 | 80.2% | -49.9% | | Rental and other services | 786,050 | 6.4% | 788,703 | 3.9% | -0.3% | | Property management and other services | 3,375,387 | 27.5% | 3,209,023 | 15.9% | +5.2% | | **Total** | **12,281,324** | **100.0%** | **20,206,011** | **100.0%** | **-39.2%** | - Gross profit decreased by **63.7%** year-on-year to **RMB 983 million**, with gross margin declining from 13.4% to **8.0%**[58](index=58&type=chunk) - Net loss attributable to shareholders expanded to **RMB 6.36 billion**, compared to RMB 4.94 billion in the prior year[66](index=66&type=chunk) [Balance Sheet and Liquidity Analysis](index=25&type=section&id=Balance%20Sheet%20and%20Liquidity%20Analysis) Total debt decreased to RMB 84.2 billion, but cash was tight at RMB 10.16 billion (60% restricted), while net gearing ratio surged to 166.8% and current ratio dropped to 0.9x, indicating worsening liquidity and leverage - As of June 30, 2025, bank balances and cash were approximately **RMB 10.16 billion**, including **RMB 1.73 billion** in pledged deposits and **RMB 4.30 billion** in regulated account funds[72](index=72&type=chunk) - Total outstanding borrowings were approximately **RMB 84.21 billion**, a decrease from RMB 86.65 billion at the end of 2024[73](index=73&type=chunk) Key Financial Ratios | Ratio | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Net Debt to Equity Ratio | 166.8% | 145.6% | | Debt to Asset Ratio | 34.9% | 33.8% | | Current Ratio | 0.9 times | 1.0 times | [Risk Management](index=26&type=section&id=Risk%20Management) The Group faces significant unhedged foreign currency risk from substantial foreign currency-denominated debts and interest rate risk from floating-rate borrowings - The Group is exposed to foreign currency risk, primarily from bank balances, borrowings, senior notes, and convertible bonds denominated in foreign currencies, with no foreign currency hedging arrangements in place[75](index=75&type=chunk) - The Group is exposed to market interest rate fluctuation risk related to interest-bearing bank and other borrowings and does not use derivative financial instruments to hedge interest rate risk[76](index=76&type=chunk) [Other Information](index=28&type=section&id=Other%20Information) [Dividends and Governance](index=28&type=section&id=%E8%82%A1%E6%81%AF%E5%8F%8A%E7%AE%A1%E6%B2%BB) The Board resolved not to declare an interim dividend for H1 2025 due to current financial conditions, while the company complied with corporate governance codes, and interim results were reviewed by auditors and the audit committee - The Board resolved not to declare an interim dividend for the six months ended June 30, 2025[80](index=80&type=chunk) - The Company complied with the Corporate Governance Code during the reporting period, and the interim financial statements were reviewed by the auditor and considered by the audit committee[81](index=81&type=chunk)[84](index=84&type=chunk)

Group 1: Real Estate Industry Overview - In the first seven months of the year, the funding for real estate development enterprises in Henan province increased by 0.3% year-on-year, with domestic loans decreasing by 15.2% and self-raised funds increasing by 1.7% [1] - The total overdue debt of nine subsidiaries of CIFI Group amounts to approximately 1.05 billion yuan, primarily involving bank project loans [2] Group 2: Company Financial Performance - Zhengrong Real Estate expects a loss attributable to shareholders of 6.4 billion to 6.6 billion yuan for the first half of 2025, compared to a loss of approximately 2.343 billion yuan in the same period last year, indicating an expanded loss [3] - Baolong Real Estate anticipates a loss of approximately 2.6 billion to 2.9 billion yuan for the first half of the year, compared to a loss of 2.047 billion yuan in the same period last year, with core losses attributable to shareholders expected to be around 1.6 billion to 1.9 billion yuan [4] Group 3: Debt Issuance - Midea Real Estate issued a total of 500 million yuan in medium-term notes, with a planned issuance range of 200 million to 1 billion yuan, and an issuance interest rate of 3.15% [5]