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]

报告期内，龙湖集团运营及服务业务合计实现收入132.7亿元，创历史新高，核心净利润约40亿元，营 收、利润均实现同比增长。期内，运营及服务业务在龙湖集团营业收入中占比达到22.6%，成为收入、 利润及现金流的稳定贡献来源。 2025年上半年，由商业投资、资产管理组成的运营业务不含税租金收入为70.1元，同比增长2.5%。以物 业管理、智慧营造为主的服务业务板块不含税收入为62.6亿元，同比微增。 龙湖集团经营性业务下的四个航道，在细分领域均保持领先身位，延续稳定增长的态势，这使得龙湖可 以依靠内生动力、通过业务"造血"自循环来驱动公司发展，以低杠杆、强运营、正现金流，持续践行高 质量发展路径。 来源：智通财经网 2025年8月29日，龙湖集团控股有限公司（「龙湖集团」或「集团」，港交所股份代号：00960）公布其 截至2025年6月30日的半年业绩。2025年上半年，龙湖集团运营及服务业务实现稳定增长，可持续的盈 利能力与现金流反哺能力不断增强。 ...

Core Insights - Longfor Group Holdings Limited reported a stable growth in its operations and services business for the first half of 2025, with a significant enhancement in sustainable profitability and cash flow capabilities [1] Financial Performance - For the first half of 2025, Longfor Group's operations and services business achieved a record revenue of 13.27 billion yuan, with core net profit approximately 4 billion yuan, reflecting year-on-year growth in both revenue and profit [1] - The operations and services business accounted for 22.6% of Longfor Group's total revenue, serving as a stable source of income, profit, and cash flow [1] Business Segments - The operational business, comprising commercial investment and asset management, generated a non-tax rental income of 7.01 billion yuan, representing a year-on-year increase of 2.5% [1] - The service business segment, primarily focused on property management and smart construction, recorded a non-tax revenue of 6.26 billion yuan, showing a slight year-on-year increase [1] Strategic Positioning - Longfor Group's four operational channels under its business model maintain a leading position in their respective segments, continuing a trend of stable growth [1] - The company relies on internal growth drivers and self-circulation through its business model, characterized by low leverage, strong operations, and positive cash flow, to pursue a high-quality development path [1]

Core Insights - The company reported a revenue of RMB 587.5 billion for the first half of 2025, representing a year-on-year growth of 25.4% [1] - The real estate development segment generated revenue of RMB 454.8 billion, up 34.7% year-on-year, while the operational business revenue was RMB 70.1 billion, growing by 2.5% [1] - The profit attributable to shareholders was RMB 32.2 billion, with a core profit of RMB 13.8 billion after excluding fair value changes, primarily driven by growth in operational and service businesses [1] - The company declared an interim dividend of RMB 0.07 per share [1] Financial Performance - As of June 30, 2025, total borrowings amounted to RMB 1,698.0 billion, a decrease of RMB 65.3 billion from the end of the previous year [1] - Cash on hand was reported at RMB 446.7 billion [1] - Contract sales for the first half of 2025 reached RMB 350.1 billion, with a total sold area of 2.614 million square meters and an average selling price of RMB 13,393 per square meter [1] Market Position - The highest sales contribution came from the Western region (28.1%) and the Yangtze River Delta (26.5%) [1] - The company has unrecognized contract sales of RMB 1,059 billion, covering an area of approximately 8.54 million square meters [1] - As of June 30, 2025, total land reserves were 28.4 million square meters, with an equity area of 21.13 million square meters and an average cost of RMB 4,207 per square meter [1] Strategic Focus - In the second half of the year, the company will continue to focus on core city investments, adjust the pace of project launches flexibly, and enhance product quality [2] - The company aims to adhere to a high-quality development strategy, maintain prudent financial management, systematically reduce debt, adjust inventory structure, and promote growth in operational and service businesses to achieve sustainable development through positive operating cash flow [2]