Core Viewpoint - Longfor Group has successfully transitioned from a traditional developer to a high-quality development model, focusing on stable cash flow and operational efficiency, which enhances its resilience against market fluctuations [3][4]. Financial Performance - In the first half of 2025, Longfor Group reported a revenue of 58.75 billion yuan, a year-on-year increase of 25%, with development business revenue at 45.48 billion yuan and operational business revenue at 13.27 billion yuan, up 1.3% [1]. - The core net profit after rights was approximately 1.38 billion yuan, with operational business gross margin at 77.7% and service business gross margin around 30% [1][3]. Business Model Transition - Longfor's operational and service businesses have become significant contributors to revenue, with operational income accounting for 22.6% of total revenue in the first half of 2025, up from less than 10% in 2022 [3]. - The company has invested over 100 billion yuan in cultivating its commercial investment and operational businesses, leading to a balanced business structure [3][4]. Debt Management - Longfor has reduced its interest-bearing debt by 6.53 billion yuan in the first half of 2025, bringing the total to 169.8 billion yuan, with a target to further reduce debt by approximately 20 billion yuan by the end of the year [7]. - The average financing cost is 3.58% with an average loan term of 10.95 years, both at historical lows [7]. Land Acquisition Strategy - In the first half of 2025, Longfor achieved a contract sales amount of 35.01 billion yuan, with 90% of sales concentrated in first- and second-tier cities [8][9]. - The company remains cautious in land acquisition, prioritizing financial safety and maintaining a land reserve of 28.4 million square meters, with unsold value exceeding 200 billion yuan [10]. Future Outlook - Longfor plans to open approximately 10 new shopping malls in 2026 and 2027, continuing to expand its operational footprint [5]. - The management expresses optimism about the long-term development of the real estate market, particularly in core urban areas where demand for quality housing remains strong [10].

中经记者 吴静 卢志坤 北京报道 从地铁房山线良乡大学城北站走出，映入眼帘的不再是冷清的闲置建筑，而是人流如织的下沉广场、飘 着咖啡香味的网红店铺、充满设计感的休闲空间和满足年轻人居住的长租公寓。几年前，这里的部分区 域还是寂寥无声的"沉睡资产"。 "我们团队刚来时，这个项目面临的最大挑战是如何盘活闲置资源并实现全流程闭环。"站在熙悦天街· 熙悦荟项目沙盘前，龙湖集团华北公司商办营销负责人方灿向《中国经营报》记者介绍道，受2017年3 月商办政策影响，该项目部分楼宇竣工后即闲置，招商、销售均受阻。 面对这一难题，如何唤醒这片总建筑面积约11万平方米的"沉睡资产"，成为摆在项目方面前的一道必答 题。近两年来，项目团队并未选择简单的散售或盲目招商，而是通过对业态的精准重组和对功能的创新 再造，写就了一个资产焕活重生、资金闭环融通的故事，并因此成为2024年北京城市更新中备受瞩目的 实践案例。 业态协调保证项目长久活力 "围绕着这个项目的更新方案，我们在过程中也是改了又改，反复地推倒重来。"当问及最初如何为项目 定位时，受访者坦言道。 熙悦天街·熙悦荟项目位于房山区长阳镇，地处良乡大学城商圈及长阳休闲购物板块的交汇 ...

Core Viewpoint - Longfor Group reported a growth in turnover scale for the first half of 2025, with a stable performance in operational and service businesses, despite pressure on gross profit margins from turnover [1] Group 1: Financial Performance - The company achieved a revenue of 587.5 billion RMB in the first half of 2025, representing a year-on-year increase of 25.4% [1] - Real estate development revenue was 454.8 billion RMB, up 34.7% year-on-year, while operational and service revenue was 132.7 billion RMB, a slight increase of 1.3% [1] - The net profit attributable to shareholders was 32.2 billion RMB, down 45.2% year-on-year, with a core net profit of approximately 13.8 billion RMB [1] - The gross profit margin was 12.6%, a decrease of 7.9 percentage points year-on-year, with development, operational, and service business margins at approximately 0.2%, 77.7%, and 30.0% respectively [1] Group 2: Debt and Financing - As of the end of the first half, the company had interest-bearing liabilities of 169.8 billion RMB, reduced by 6.5 billion RMB since the beginning of the year [1] - The pre-debt ratio was 56.1%, and the net debt ratio was 51.2%, with a cash-to-short-term debt ratio of 1.74 times [1] - The average financing cost decreased to 3.58%, down 42 basis points year-on-year, with cash reserves of 44.67 billion RMB [1] Group 3: Sales and Land Reserves - The company reported a sales amount of 35.01 billion RMB in the first half of 2025, a decrease of 31.5% year-on-year, with a sales area of 2.615 million square meters, down 28.5% [2] - As of the end of the first half, the company had unsold turnover amounting to 105.9 billion RMB, covering an area of approximately 854,000 square meters [2] - The total land reserve was 28.4 million square meters, with an equity ratio of 74.4% [2] Group 4: Operational and Service Business - Operational revenue for the first half was 7.01 billion RMB, a year-on-year increase of 2.5%, with shopping mall revenue accounting for 78.5% [2] - The gross profit margin for operational business was 77.7%, an increase of 2.3 percentage points year-on-year, with a rental income increase of 4.9% and an overall occupancy rate of 96.8% [2] - Service revenue was 6.26 billion RMB, with a gross profit margin of 30.0%, and the company actively expanded its construction agency business, adding 8.52 million square meters in the first half [2]

Core Viewpoint - The real estate market is facing significant challenges in the third quarter of 2023, but there remains a strong demand for quality properties in prime locations, particularly in first- and second-tier cities [1] Financial Performance - For the first half of 2023, the company reported a revenue of 58.75 billion yuan, representing a year-on-year increase of 25.4% [1] - The attributable profit to shareholders was 3.22 billion yuan, with a core profit of 1.38 billion yuan after excluding fair value changes of investment properties and other financial instruments [1] - The real estate development segment generated a revenue of 45.48 billion yuan, up 34.7% year-on-year [1] - The operational and service segments achieved a record revenue of 13.27 billion yuan, accounting for 22.6% of total revenue [2] Debt Management - As of June 30, 2023, the total borrowing was 169.8 billion yuan, a decrease of approximately 6.53 billion yuan from the end of 2024 [3] - The company had cash reserves of 44.67 billion yuan and a net debt ratio of 51.2% [3] - The average financing cost dropped to 3.58%, with the average loan term extended to 10.95 years [3] - The company plans to reduce interest-bearing debt by approximately 10 billion yuan annually from 2026 to 2028 [3]

Core Viewpoint - Longfor Group has significantly reduced its debt pressure after the peak in 2025, allowing for potential new land acquisitions while ensuring financial safety [1][3]. Financial Performance - In the first half of the year, Longfor Group achieved operating revenue of 58.75 billion yuan, with operational and service income reaching a historical high of 13.27 billion yuan, accounting for 22.6% of total revenue [1]. - The real estate development business recorded a contract sales amount of 35.01 billion yuan, with approximately 90% of sales coming from first- and second-tier cities [1]. Debt Management - As of June 30, the company had interest-bearing liabilities of 169.8 billion yuan, reduced by 6.53 billion yuan compared to the end of 2024, with bank financing making up 87% of this amount [1]. - The cash-to-short-term debt coverage ratio stands at 1.74 times, with an average financing cost at a historical low of 3.58% and an average loan term of 10.95 years [1]. - Longfor has fully repaid 10.1 billion yuan of domestic credit bonds and 3.5 billion yuan of medium-term notes, with no further credit bonds due for repayment this year [1]. Future Debt Obligations - By the end of 2025, the company's domestic credit bond balance is expected to be around 4.4 billion yuan, with 3.6 billion yuan maturing in 2026 and 800 million yuan in 2027 [2]. - The company anticipates a significant reduction in annual debt repayments post-2025, with approximately 60 billion yuan due in 2025, and around 20 billion yuan in 2026 and 2027 [2]. Strategic Focus - Longfor's chairman and CEO stated that the company has reduced its interest-bearing liabilities by 40 billion yuan over the past three years, with a target to further decrease by 20 billion yuan by the end of this year [3]. - The company emphasizes financial safety and the importance of debt repayment over new investments, while still acquiring quality land in key cities [3][4]. - Longfor plans to maintain strict investment discipline and will selectively acquire new land while focusing on high-potential cities [4].

Core Insights - Longfor Group Holdings Limited reported a revenue of RMB 58.75 billion for the first half of 2025, representing a year-on-year increase of 25.4% [1] - The real estate development segment generated revenue of RMB 45.48 billion, up 34.7% year-on-year, while operational and service segments contributed RMB 13.27 billion, growing by 1.3% [1][2] - The company achieved a core profit of RMB 1.38 billion after excluding fair value changes [1] Revenue Breakdown - Real estate development revenue reached RMB 45.48 billion with a total property delivery area of 3.527 million square meters [1] - Operational business revenue was RMB 70.1 billion, marking a 2.5% increase, while service business revenue was RMB 62.6 billion, showing a slight increase [2][3] - The combined revenue from operational and service segments accounted for 22.6% of total revenue [1][2] Land Acquisition and Development - In the first half of 2025, Longfor Group acquired four land parcels in key cities, adding a total land reserve of 249,000 square meters [2] - The total land reserve as of June 30, 2025, stands at 28.4 million square meters, with an equity area of 21.13 million square meters [2] Financial Performance - The company reported a total borrowing of RMB 169.8 billion, a decrease of RMB 6.53 billion from the previous year [3] - Cash on hand was RMB 44.67 billion, with a net debt ratio of 51.2% and a cash-to-short-term debt ratio of 1.74 times [3] - The asset-liability ratio, excluding pre-receipts, was 56.1%, maintaining a healthy financial position within the "three red lines" framework [3]

Core Viewpoint - The real estate market's stabilization is crucial for China's economic and financial stability, according to the CEO of Longfor Group [1] Group 1: Market Insights - The short-term market trends will depend on the strength of policy stimulus [1] - In the medium to long term, there is strong confidence in the resilience of the Chinese real estate market [1] - There is a significant demand for quality housing in prime locations of first and second-tier cities, where good properties are still in short supply [1] Group 2: Business Strategy - The company emphasizes the importance of providing quality products and services in prime locations as a long-term business opportunity [1]

Investment Rating - The investment rating for Longfor Group is maintained as "Buy" [6] Core Views - Longfor Group reported an increase in turnover scale for the first half of 2025, with a stable growth in operational and service businesses despite pressure on gross profit margins [6] - The company is expected to see a recovery in profitability, with projected net profits for 2025-2027 being 6.87 billion, 7.26 billion, and 7.64 billion RMB respectively, corresponding to EPS of 0.98, 1.04, and 1.09 RMB [6] Financial Performance - For the first half of 2025, the company achieved a revenue of 58.75 billion RMB, a year-on-year increase of 25.4%, with real estate development revenue at 45.48 billion RMB, up 34.7% [7] - The net profit attributable to shareholders was 3.22 billion RMB, down 45.2%, with a core net profit of approximately 1.38 billion RMB [7] - The gross profit margin was 12.6%, a decrease of 7.9 percentage points year-on-year [7] Debt and Cash Management - As of the end of the first half of 2025, the company had interest-bearing debt of 169.8 billion RMB, reduced by 6.5 billion RMB since the beginning of the year [7] - The cash-to-short-term debt ratio was 1.74 times, with cash on hand amounting to 44.67 billion RMB [7] Sales and Land Reserves - The sales amount for the first half of 2025 was 35.01 billion RMB, a decrease of 31.5% year-on-year, with a sales area of 2.615 million square meters, down 28.5% [8] - The total land reserve as of the end of the first half was 28.4 million square meters, with an equity ratio of 74.4% [8] Operational Business - The operational revenue for the first half of 2025 was 7.01 billion RMB, a year-on-year increase of 2.5%, with a gross profit margin of 77.7% [9] - The company opened 12.7 thousand rental units under its brand "Guan Yu," achieving a rental rate of 95.6% [9]

Core Viewpoint - The chairman and CEO of Longfor Group, Chen Xuping, emphasized the necessity of relaxing purchase restrictions in Beijing and Shanghai, indicating a positive outlook for the resilience of the Chinese real estate market despite recent adjustments [1] Financial Performance - In the first half of the year, Longfor Group achieved a revenue of 58.75 billion yuan and a net profit attributable to shareholders of 3.22 billion yuan [1] - As of the end of the reporting period, the total comprehensive borrowing amounted to 169.8 billion yuan, with cash on hand of 44.67 billion yuan, resulting in a net debt ratio of 51.2% [1] - The average financing cost was reported at 3.58%, with an average loan term of 10.95 years [1] Market Outlook - The real estate market has seen a price decline of approximately 30% from its peak over the past four years, and the short-term stabilization of the market is expected to be influenced by policy stimuli [1] - The long-term outlook remains optimistic regarding the resilience of the Chinese real estate market [1]

Group 1 - The chairman and CEO of Longfor Group, Chen Xuping, stated that the recent relaxation of purchase restrictions in Beijing and Shanghai is necessary [1] - The real estate market has undergone four years of adjustment, with many cities experiencing a price drop of 30% from their peak [1] - The short-term stabilization of the real estate market relies on policy stimulus, while the long-term outlook remains optimistic about the resilience of the Chinese real estate market [1]