董事會會議通告 龍湖集團控股有限公司（「本公司」）之董事會（「董事會」）謹此公佈，本公司董事會將於 二零二五年八月二十九日（星期五）舉行董事會會議，藉以（其中包括）批准本公司及其附 屬公司截至二零二五年六月三十日止六個月之中期業績並考慮派發中期股息（如有）。 承董事會命 龍湖集團控股有限公司 LONGFOR GROUP HOLDINGS LIMITED 龍湖集團控股有限公司 （於開曼群島註冊成立的有限公司） （股份代號：960） 香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其 準確性或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部分內容 而產生或因倚賴該等內容而引致的任何損失承擔任何責任。 主席 陳序平 於本公告刊發日期，董事會包括九名成員：執行董事陳序平先生、趙軼先生、張旭忠先 生及沈鷹女士；非執行董事孫佳慧女士；獨立非執行董事 Frederick Peter Churchouse 先 生、陳志安先生、項兵先生及梁翔先生。 香港，二零二五年八月十九日 ...

Investment Rating - The report maintains a "Positive" investment rating for the real estate industry in China, indicating an expected return that is stronger than the market benchmark index by over 5% [3]. Core Insights - The report highlights that the optimization of existing housing storage policies is expected to gradually assist in inventory reduction. The People's Bank of China announced a 300 billion yuan re-loan for affordable housing, which supports local state-owned enterprises in acquiring existing residential properties for allocation as affordable housing. The report notes that the slow progress in storage is primarily due to pricing discrepancies between developers and local governments, and the responsibility for compliance and profitability lies with local governments [1][5]. - The report suggests that there is room for policy optimization, such as removing price caps to encourage developers to sell inventory, extending re-loan terms, and lowering interest rates to improve project profitability. These cumulative effects are expected to gradually aid in inventory reduction and enhance the recovery slope of real estate stock prices [1][5]. - The report emphasizes that the recovery of the real estate industry and stock prices does not solely depend on the timing of policy announcements. The decline in risk-free interest rates and the reduction in industry risk assessments are the main drivers for the recovery of real estate stocks. The report indicates that the real estate sector is entering a new bottoming phase, with the influence of the denominator (risk-free rates) surpassing that of the numerator (industry challenges), leading to a potential rebound in stock prices [5]. Summary by Sections Policy Evaluation - The report discusses the marginal optimization of existing housing storage policies, which is expected to facilitate inventory reduction. The People's Bank of China has set up a 300 billion yuan re-loan to support local state-owned enterprises in acquiring existing residential properties for affordable housing [1]. - The report identifies that the slow progress in storage is due to the pricing discrepancies between developers and local governments, with local governments bearing the ultimate responsibility for compliance and profitability [1][5]. Investment Recommendations - The report recommends focusing on specific stocks, including China Merchants Shekou (001979, Buy), Poly Developments (600048, Buy), Beike-W (02423, Buy), Longfor Group (00960, Buy), and Gemdale Corporation (600383, Accumulate) [6].

Summary of Conference Call Records Industry Overview - The real estate sector is characterized as a "three low" industry (low price-to-book ratio, low positioning, low attention), suggesting that the valuation gap will eventually close [3][5] - The construction and real estate sectors are experiencing significant challenges, with broad infrastructure investment growth declining by 1.9% year-on-year in July 2025, marking the first negative growth in two years [6][9] - The construction investment growth rate in July 2025 was negative 5.1%, indicating a severe decline in local government-funded projects and highlighting fiscal difficulties [6][9] Key Points and Arguments - Real estate stocks are not to be viewed pessimistically; the market is in a phase of orderly expansion, and the sector's win rate is high due to its low valuation metrics [3][5] - In July 2025, real estate investment fell by 17.1%, while manufacturing investment decreased by 0.3%, both showing significant declines and marking a critical turning point [11] - The cash flow situation in the real estate market has improved compared to last year, with financing costs and completion rates showing strength, suggesting potential recovery in construction data in the second half of the year [2] - The introduction of special bonds and government debt in July has significantly increased, aiding in resolving real estate debt issues and enhancing macroeconomic stability [7] Notable Companies and Their Performance - Companies like Vanke, JinDi, Longfor, and New Town are identified as having high elasticity due to improved competitive dynamics [8] - Service-oriented companies such as Wanwu Cloud, China Resources Mixc, and China Overseas Property are also highlighted for their dividend performance in the mid-year reports [8] - Recommended companies in the consumer building materials sector include Oriental Yuhong and Henkel Group, which are expected to perform well due to improved market conditions [19] Risks and Future Outlook - The upcoming mid-year reports for construction companies are anticipated to be risky, with potential for lower-than-expected performance due to increased receivables and declining revenues [13][16] - Despite short-term risks, there is potential for a rebound in the fourth quarter, particularly for companies with mineral resource attributes, such as China Metallurgical Group and China Railway [14] - The cement industry is projected to face a demand decline of 4.5% for the year, with July's demand down by 5.6% [17] Additional Insights - The consumer building materials sector is showing signs of recovery, with improved fundamentals and reduced price wars, which may lead to enhanced profitability [18] - The western region's infrastructure projects are expected to significantly impact the building materials industry, with strong demand and funding availability [24] - Investors are advised to adjust their positions cautiously in anticipation of potential volatility following the mid-year report disclosures [15]

Investment Rating - The report maintains a "Positive" rating for the real estate and property management sectors [2][3]. Core Insights - The report indicates that the broad housing demand in China has likely bottomed out, although the volume and price have not yet entered a positive cycle. It anticipates that the overall real estate market will continue to stabilize, with further policies expected to be introduced to support this trend. Core cities are expected to lead the recovery as they approach the bottom of the market [3][34]. - The report highlights significant policy changes, including the implementation of new regulations in Beijing that have led to a 20% increase in new home visits in areas outside the Fifth Ring Road. Additionally, various provinces are focusing on stabilizing the housing market and urban renewal tasks [3][34]. Industry Data Summary New Home Transaction Volume - In the week of August 9-15, 2025, new home transactions in 34 cities totaled 1.613 million square meters, a decrease of 9% week-on-week. The transaction volume for first and second-tier cities fell by 7.9%, while third and fourth-tier cities saw a decline of 23.5% [3][4]. - Year-on-year, new home transactions in August (up to August 15) decreased by 19.1%, with first and second-tier cities down by 17.6% and third and fourth-tier cities down by 35.5% [3][7]. Second-Hand Home Transaction Volume - In the week of August 9-15, 2025, second-hand home transactions in 13 cities totaled 999,000 square meters, a decrease of 3.6% week-on-week. Cumulatively, transactions in August were down 3% year-on-year [3][13]. Inventory and Supply - In the week of August 9-15, 2025, 76,000 square meters of new homes were launched in 15 cities, with a transaction volume of 65,000 square meters, resulting in a transaction-to-launch ratio of 0.86. The total available residential area in these cities was 89.15 million square meters, reflecting a slight increase of 0.1% [3][24]. Policy and News Tracking - The report notes that the National Bureau of Statistics reported a 12% year-on-year decline in real estate development investment for the first seven months of 2025, totaling 535.8 billion yuan. Various provinces are implementing measures to stabilize the housing market and promote urban renewal [3][34]. - Specific policies include a reduction in the down payment ratio for housing loans in Suzhou to 15% and the introduction of new measures to support the conversion of commercial properties to residential use in Shanghai [3][34]. Company Dynamics - Several real estate companies reported their sales figures for the first seven months of 2025, with China Resources Land at 123.6 billion yuan (-11.8%) and China Jinmao at 61.8 billion yuan (+23.0%). Dragon Lake Group forecasted a 70% decline in core earnings [3][34]. - Financing activities included the issuance of bonds by various companies, such as a 1.5 billion yuan medium-term note by Dayuecheng Holdings and a total of 1.4 billion yuan in bonds by Yuexiu Property [3][34].

Investment Rating - The report maintains a recommendation for the real estate industry, indicating a cautious but potential investment opportunity as the sector adjusts to current market conditions [3]. Core Insights - The real estate market is experiencing a "W-shaped" bottoming process, with new construction expected to show a trend of rising and then falling in the second half of the year, with the peak likely approaching zero growth [2][39]. - The overall development investment is under pressure, with July's investment amount showing a year-on-year decline of 17.0%, reflecting weaker construction intensity due to declining sales market heat [2][38]. - The funding chain index for the real estate sector has slightly improved but remains at historically low levels, indicating potential future improvements in the financial situation of some companies [2][10]. Summary by Sections Sales and Construction Data - In July, the adjusted year-on-year growth rate for new housing sales area was -7.8%, continuing a trend of low market activity since May [13][14]. - The total sales area for the first seven months of 2025 was 515.6 million square meters, with a cumulative year-on-year decline of 4.0% [9][14]. - The new construction area in July saw a year-on-year decline of 15.4%, with a cumulative decline of 19.4% for the first seven months [2][39]. Price Trends - The new home price index for 70 cities showed a month-on-month decline of 0.31% in July, with significant drops in second-tier cities [10][11]. - The average price of new homes in July was 9,613 yuan per square meter, reflecting a year-on-year decrease of 2.6% [12][14]. Investment Recommendations - The report suggests that the narrowing gap between net rental yields and mortgage rates is a key observation point for total demand in both new and second-hand housing markets [37]. - It emphasizes the importance of focusing on companies with stable cash flow generation capabilities, such as China Overseas Development and Poly Developments, as potential investment opportunities [37][38].

Core Viewpoint - Longfor Group anticipates a significant decline of approximately 70% in core profit attributable to shareholders for the first half of 2025, primarily due to the downturn in the real estate sector affecting the gross profit margin of its development business [1] Company Summary - Longfor Group's announcement highlights that despite the pressure on the gross profit margin from development business, it remains one of the few companies in the industry that continues to maintain positive profitability [1] - The company reported that its operational business continues to grow, with positive operating cash flow including capital expenditures, and is actively reducing its debt scale while optimizing its debt structure [1] Industry Summary - The real estate industry is undergoing a deep adjustment, with many listed property companies releasing their mid-year performance forecasts for 2025, indicating that losses remain the mainstream trend for the first half of the year [1] - According to Wind data, as of August 15, 74 property companies have issued performance forecasts for the first half of 2025, with 46 companies expected to report losses, accounting for over 60% [1]

Core Viewpoint - Longfor Group anticipates a significant decline of approximately 70% in core profit attributable to shareholders for the first half of 2025, primarily due to a decrease in gross profit margin from real estate development amid a downturn in the industry [1] Group 1: Company Performance - Longfor Group's announcement highlights that despite the pressure on development business profitability, the operational business continues to show growth [1] - The company reported positive operating cash flow, including capital expenditures, and is actively reducing its debt scale while optimizing its debt structure [1] - Longfor Group remains one of the few companies in the industry that continues to maintain positive profitability despite the challenges faced [1] Group 2: Industry Context - The broader real estate industry is experiencing a significant downturn, with many listed property companies expected to report losses for the first half of 2025 [1] - As of August 15, 2023, 74 property companies have released their performance forecasts, with 46 companies, accounting for over 60%, expected to report losses [1]

Core Viewpoint - Longfor Group anticipates a significant decline of approximately 70% in core profit attributable to shareholders for the first half of 2025, primarily due to a decrease in gross profit margin from real estate development amid industry downturn [1] Group 1: Company Performance - Longfor Group's operating revenue reached approximately 16.47 billion yuan (including tax) by the end of July 2025, with operational business revenue at about 8.76 billion yuan and service business revenue at around 7.71 billion yuan [2] - Despite the pressure on development business profitability, Longfor Group remains one of the few companies in the industry still achieving positive earnings [1][2] - The company has successfully reduced its debt scale and optimized its debt structure, with positive operating cash flow including capital expenditures [2] Group 2: Industry Context - As of August 15, 2025, over 60% of the 74 listed real estate companies that released performance forecasts are expected to report losses, continuing the trend from the previous year [1] - Morgan Stanley's report indicates that, despite some alleviation of liquidity risks, the decline in profit margins for real estate development will lead to disappointing performance for Chinese developers in the first half of the year [1] Group 3: Future Outlook - DBS Bank projects that Longfor's strategy of maintaining cash flow and reducing inventory will help lower debt, with potential land investments resuming in early 2026, which could accelerate the recovery of profit margins in real estate development [3] - Longfor Group emphasizes a customer-centric approach to enhance product and service capabilities, aiming for steady growth in development, operational, and service businesses to ensure sustainable development through positive operating cash flow [3]

Core Viewpoint - Longfor Group (00960) announced a significant decline in profit expectations for the six months ending June 30, 2025, primarily due to the downturn in the real estate industry affecting the gross profit margin of its property development business [1] Financial Performance - For the six months ending June 30, 2024, the profit attributable to the company's owners is reported at RMB 5.87 billion, while the expected profit for the same period in 2025 is projected to decline by approximately 45% [1] - The core profit, excluding the impact of fair value changes in investment properties and other derivative financial instruments, is RMB 4.75 billion for the six months ending June 30, 2024, with an anticipated decline of around 70% for the same period in 2025 [1] Operational Insights - The group's operational and service businesses continue to grow, contributing stable profits [1] - The operating cash flow, including capital expenditures, remains positive, and the company is steadily reducing its debt levels while optimizing its debt structure [1] - The company has fulfilled all debt obligations due in 2025 as of the announcement date [1] Strategic Focus - Moving forward, the company aims to enhance product and service capabilities centered around customer needs, actively promote inventory reduction in development business, and ensure steady growth in operational and service sectors [1] - The focus is on sustainable development across various business channels driven by positive operating cash flow [1]

Core Viewpoint - Longfor Group (00960) announced a significant decline in profit expectations for the upcoming fiscal periods, primarily due to the downturn in the real estate industry affecting its development business margins [1] Financial Performance - For the six months ending June 30, 2024, the profit attributable to the company's owners is reported at RMB 5.87 billion, with an expected decline of approximately 45% for the six months ending June 30, 2025 [1] - The core profit, excluding the impact of fair value changes from investment properties and other derivative financial instruments, is RMB 4.75 billion for the six months ending June 30, 2024, with an anticipated decline of around 70% for the same period in 2025 [1] Business Operations - The group's operational and service businesses continue to grow, contributing stable profits to the overall performance [1] - The operating cash flow, including capital expenditures, remains positive, and the company is steadily reducing its debt levels while optimizing its debt structure [1] Debt Management - The company is committed to fulfilling all debt obligations either ahead of schedule or on time, having fully repaid domestic credit bonds due within 2025 as of the announcement date [1] Future Strategy - Looking ahead, the company will focus on enhancing customer-centric product and service capabilities, actively promoting inventory reduction in development business, and ensuring steady growth in operational and service sectors to drive sustainable development across all business lines through positive operating cash flow [1]