Group 1 - The US stock market showed mixed performance, with the Dow Jones rising by 0.5%, while the Nasdaq initially increased before falling by 0.3%, and the S&P 500 remained stable [3] - The Golden Dragon Index, which reflects the performance of Chinese concept stocks, declined by 1.2% [3] Group 2 - The Hong Kong stock market performed well last week, with the Hang Seng Index gaining 1,012 points or 3.88%, closing at 27,140 points, while the Tech Index rose by 6.9% to close at 6,622 points [4] - Semiconductor company SMIC (00981.HK) was the best-performing constituent stock, rising nearly 25% over the week, with six other stocks also increasing by over 10%, including Kuaishou (01024.HK) up over 17% and Xinyi Solar (00968.HK) up 14.7% [4] - The worst-performing constituent stock was Pop Mart (09992.HK), which fell by over 4%, with its stock price down more than 25% from its peak [4] - Real estate-related stocks experienced adjustments, with China Resources Mixc (01209.HK) down 3.5%, Longfor (00960.HK) and R&F Properties (01109.HK) down nearly 2.4% and 1.8% respectively, while China Overseas (00688.HK) slightly outperformed peers with a 0.5% increase [4] - Zijin Mining's spin-off, Zijin Gold International (02259.HK), had a strong debut, being quickly included in the Hang Seng Composite Index, with its stock price closing at 120.6 HKD, nearly 90% higher than its IPO price [4] Group 3 - The Hang Seng Index remained above the 10-day moving average (26,600 points), indicating a stable trend, and as long as it stays above this level, the upward trend is expected to continue [5]

Investment Rating - The report maintains an "Overweight" rating for the real estate industry [4] Core Views - The current monetary policy stance in China is supportive, with measures to optimize down payment ratios and mortgage rates, potentially reducing interest expenses for over 50 million households by approximately 300 billion yuan annually [10][11] - The real estate sector is viewed as an early-cycle indicator, making it a key economic barometer [4] - The competitive landscape in the industry is improving, with leading state-owned enterprises and select mixed-ownership and private companies expected to benefit more in the future [4] - The report emphasizes a focus on first-tier and select second- and third-tier cities, which have shown better performance during sales rebounds [4] - Supply-side policies, including land storage and management of idle land, are critical areas to monitor for future developments [4] Summary by Sections Market Overview - The real estate index decreased by 0.2% this week, underperforming the CSI 300 index by 1.22 percentage points, ranking 11th among 31 sectors [12] - In the past week, 30 cities recorded new housing transaction areas of 186.1 million square meters, a 20.0% increase month-on-month but a 23.6% decrease year-on-year [23] New Housing Transactions - New housing transaction areas in first-tier cities reached 55.8 million square meters, up 11.6% month-on-month and up 12.5% year-on-year [23] - Second-tier cities saw transactions of 91.0 million square meters, a 41.9% increase month-on-month but a 20.5% decrease year-on-year [23] - Third-tier cities recorded 39.2 million square meters, down 4.1% month-on-month and down 50.6% year-on-year [23] Second-Hand Housing Transactions - The total transaction area for second-hand housing in 14 sample cities was 198.9 million square meters, a 1.4% increase month-on-month and a 13.9% increase year-on-year [31] - Year-to-date, the cumulative transaction area for second-hand housing is 7,815.4 million square meters, reflecting a 17.3% increase year-on-year [31] Credit Bond Issuance - This week, 14 credit bonds were issued by real estate companies, totaling 14.781 billion yuan, a 67.61 billion yuan increase from the previous week [41] - The net financing amount was 4.562 billion yuan, marking a significant increase of 111.56 billion yuan from the previous week [41]

Investment Rating - The report suggests a low valuation for the real estate sector, recommending to accumulate real estate stocks on dips [5]. Core Views - The real estate market is experiencing downward pressure on prices, with new home prices in 70 cities showing negative month-on-month changes for 27 consecutive months, and second-hand home prices for 28 consecutive months [4][12]. - Recent policies in major cities aim to stimulate demand for improved housing, indicating potential for recovery in the market [4][12]. - The report highlights that the basic market conditions are expected to gradually improve due to the effects of previous policies and the upcoming demand season [5]. Summary by Sections Market Overview - The A-share real estate sector saw a weekly change of -0.2%, ranking 11th among all sectors, while the Hong Kong real estate sector dropped by -3.3%, also ranking 11th [2]. - The average premium rate for land transactions remains low at 2%, with a significant year-on-year decrease in land transaction volume [2][27]. New Home Sales - In the week of September 20-26, 47 cities recorded new home sales of 380 million square meters, a week-on-week increase of 25% but a year-on-year decrease of 4% [3][32]. - Sales in first-tier cities increased by 1% week-on-week and 15% year-on-year, while second-tier cities saw a 41% week-on-week increase [3][32]. Second-Hand Home Sales - The report indicates that 22 cities sold 243 million square meters of second-hand homes, with a week-on-week increase of 2% and a year-on-year increase of 12% [40]. - First-tier cities experienced a 3% decrease week-on-week but a 24% increase year-on-year in second-hand home sales [40]. Policy Developments - New policies in cities like Shanghai aim to enhance housing quality and stimulate demand for improved housing [5][14]. - The focus of future policies will likely be on stimulating demand for improved housing, optimizing public fund policies, and revitalizing existing properties and land [4][12]. Key Companies - The top five companies in terms of land acquisition amounts are China Overseas Land & Investment, Greentown China, Poly Developments, Jianfa Group, and Binjiang Group, with acquisition amounts of 55.1 billion, 54.1 billion, 44 billion, 40 billion, and 34.7 billion respectively [27][28].

Investment Rating - The report maintains a "Positive" rating for the real estate and property management sectors [3][4]. Core Insights - 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 policies aimed at stopping the decline and promoting recovery [3][4]. - The report highlights significant policy support, including over 1.6 trillion yuan allocated for three major projects to stabilize the real estate market and support the delivery of nearly 20 million housing units [31][32]. - The report emphasizes the emergence of a new development track driven by favorable housing policies, which will enhance the penetration of quality housing in core cities [3][4]. Industry Data Summary New Housing Transactions - For the week of September 20-26, 2025, new housing transactions in 34 key cities totaled 2.458 million square meters, a week-on-week increase of 17.2%. The transaction volume in first and second-tier cities rose by 15.4%, while third and fourth-tier cities saw a significant increase of 43.8% [4][12]. - In September, the total transaction volume for new homes in 34 cities was 8.078 million square meters, a year-on-year increase of 6.3% [7][8]. Second-Hand Housing Transactions - For the week of September 20-26, 2025, second-hand housing transactions in 13 key cities totaled 1.148 million square meters, a week-on-week increase of 3.8%. Cumulatively, September transactions were up 21.2% year-on-year [12][13]. Inventory and Supply - In the week of September 20-26, 2025, 15 key cities launched 1.48 million square meters of new housing, with a transaction volume of 950,000 square meters, resulting in a transaction-to-launch ratio of 0.64. The total available residential area in these cities was 90.309 million square meters, a week-on-week increase of 0.6% [21][22]. Policy and News Tracking - The report notes that various local governments are implementing policies to stabilize the real estate market, including subsidies for home purchases and regulations to improve housing quality [31][32]. - Shanghai has introduced new regulations to standardize balcony measurements and support the renovation of old residential areas [31][32]. Company Dynamics - New City Holdings issued USD 1.6 billion in overseas bonds, while Poly Developments announced a plan to issue corporate bonds not exceeding 150 billion yuan [38][39]. - The report tracks significant financing activities, including guarantees provided by major companies for their subsidiaries [38][39].

Core Insights - The 2025 National Day holiday period will see a peak in commercial openings across China, with over 60 projects launching nationwide, particularly in cities like Hangzhou and Beijing [1][3]. Group 1: Project Highlights - The upcoming openings feature diverse commercial formats, including high-end cultural and artistic spaces, TOD (Transit-Oriented Development) commercial projects, park-style commercial centers, micro-vacation outlet complexes, cultural tourism commercial spaces, and non-standard commercial formats [3][4]. - Notable projects include: - Shenzhen Bay MixC Phase II, a high-end commercial and artistic space [7]. - Hangzhou Aoyuan MixC, the first MixC project in Zhejiang, featuring a 120,000 square meter shopping center [15]. - Guangzhou K11 Select, a cultural-themed space integrating local heritage [11][14]. Group 2: Key Locations and Sizes - Major projects and their sizes include: - Hangzhou Aoyuan MixC: 120,000 m² [15]. - Shenzhen Bay MixC Phase II: 167,000 m² [10]. - Guangzhou K11 Select: 81,000 m² [11]. - Wuhan Shanshan Outlet Plaza: 130,000 m² [37]. - The projects are strategically located in key urban areas, enhancing accessibility and consumer engagement [1][3]. Group 3: Innovative Concepts - The projects emphasize innovative concepts such as integrating art into commercial spaces, creating immersive experiences, and promoting pet-friendly environments [10][14][37]. - For instance, the Guangzhou K11 Select incorporates a pet-friendly shopping experience, while the Hangzhou Aoyuan MixC focuses on experiential retail and social interaction [15][11]. Group 4: Cultural and Historical Integration - Several projects aim to blend cultural heritage with modern commercial experiences, such as the Zhengzhou Baidu New Image, which integrates historical elements from the Shang Dynasty [47]. - The Hangzhou Jinmao Qinwang Water Street focuses on creating immersive cultural experiences through themed environments [42][44]. Group 5: Non-Standard Commercial Formats - The Beijing Weibo IN Cross-Dimensional Gravity Field represents a new trend in non-standard commercial formats, focusing on e-sports and ACG (Anime, Comic, and Games) culture [48][49]. - This project aims to redefine youth consumption patterns and create a vibrant community space for young consumers [49].

Core Viewpoint - The Hefei Baoneng City project, which has been stagnant for eight years, is now revitalized through a successful restructuring and collaboration with several major companies, including CITIC Financial Asset Management, Greentown China, China Railway Real Estate, and China Resources Vanguard Life [1][3][4]. Group 1: Project Restructuring and Partnerships - Hefei Baoneng City project has officially embarked on a revival path after eight years of being stalled [3]. - The residential land will be jointly developed by Greentown China and China Railway Real Estate, while the commercial land will be operated by China Resources Vanguard Life, focusing on high-end shopping centers [1][4]. - The project aims to integrate the strengths of various partners to accelerate its restart and enhance confidence, although challenges related to debt and property rights from years of stagnation remain [9]. Group 2: Market Context and Strategic Intent - China Resources Vanguard Life's involvement in the Hefei Baoneng City commercial project aligns with its strategy of light asset management, having previously launched multiple commercial projects in Hefei [4][5]. - Greentown China is expected to introduce high-end product lines in the residential sector, facing pricing challenges given the current market conditions, where the average price in the Binhu New District is 16,100 yuan per square meter [5][9]. - The project was initially planned to include a 565-meter T1 tower, which was intended to be the tallest building in Anhui, but its future remains uncertain due to regulatory and market pressures on super high-rise constructions [9][11].

26 September 2025 Dear Non-Registered Shareholder(1), China Resources Mixc Lifestyle Services Limited (the "Company") – Notification of publication of Interim Report 2025 (the "Current Corporate Communication") The English and Chinese versions of the Company's Current Corporate Communication are available on the Company's website at www.crmixclifestyle.com.cn and the website of The Stock Exchange of Hong Kong Limited (the "Stock Exchange") at www.hkexnews.hk. (Incorporated in the Cayman Islands with limited ...

(Incorporated in the Cayman Islands with limited liability) （於開曼群島註冊成立的有限公司） (Stock Code: 1209) （股份代號：1209） NOTIFICATION LETTER 通知信函 Dear Registered Shareholder, 26 September 2025 China Resources Mixc Lifestyle Services Limited (the "Company") – Notification of publication of Interim Report 2025 (the "Current Corporate Communication") The English and Chinese versions of the Company's Current Corporate Communication are available on the Company's website at www.crmixclifestyle.com.cn and the website of The S ...

[Company Information](index=4&type=section&id=Company%20Information) This section provides fundamental administrative and governance details for China Resources Mixc Lifestyle Services Limited, including board composition, registered offices, and key financial partners - The Board of Directors includes **non-executive directors** (Chairman Mr. Li Xin), **executive directors** (President Mr. Yu Linkang), and **independent non-executive directors**, ensuring **board independence**[6](index=6&type=chunk)[7](index=7&type=chunk) - The registered office is in the Cayman Islands, with headquarters and main operating location in Shenzhen, China, and the main Hong Kong operating location in Wan Chai[9](index=9&type=chunk)[10](index=10&type=chunk) - KPMG is the independent auditor[11](index=11&type=chunk) - The company's stock code is **1209**[11](index=11&type=chunk) [Group Structure](index=6&type=section&id=Group%20Structure) This section outlines China Resources Mixc Lifestyle Services Limited's ownership structure within China Resources (Holdings) Co., Ltd. and the scale of its two core business segments: property management and commercial management - China Resources Land Limited holds **72.29%** equity in China Resources Mixc Lifestyle Services Limited, with China Resources (Holdings) Co., Ltd. indirectly controlling the company through China Resources Land[13](index=13&type=chunk) Group Business Scale Overview (H1 2025) | Business Segment | Metric | Quantity/Area | | :--- | :--- | :--- | | **Property Management Segment** | Projects Under Management | 1,949 units | | | Area Under Management | 429.8 million sq.m. | | **Commercial Management Segment** | Contracted Shopping Malls for Commercial Operation Services | 183 units | | | Opened Shopping Malls for Commercial Operation Services | 125 units | | | Contracted Office Buildings for Commercial Operation Services | 34 units | | | Opened Office Buildings for Commercial Operation Services | 27 units | [Chairman's Report](index=7&type=section&id=Chairman's%20Report) The Chairman's Report reviews the H1 2025 Chinese economic environment and company performance, highlighting a "reform for development" and "stable growth" strategy that led to robust revenue and core net profit growth, significantly enhancing shareholder returns [Overall Performance](index=7&type=section&id=Overall%20Performance) In H1 2025, the company achieved significant revenue and core net profit growth under a "stable growth" strategy, substantially increasing interim dividends and payout ratios, demonstrating industry-leading performance amidst market uncertainties - The Group adheres to "**reform for development**" and "**stable growth**" as its overall operating philosophy, embracing a core strategy of "**organic growth + inorganic growth**"[15](index=15&type=chunk)[18](index=18&type=chunk) H1 2025 Key Financial Indicators | Metric | H1 2025 (CNY) | YoY Growth | | :--- | :--- | :--- | | Total Revenue | 8.524 billion | 6.5% | | Core Net Profit | 2.011 billion | 15.0% | | Interim Dividend | CNY 0.529 per share | **89.6%** | | Interim Payout Ratio | **60%** | **increased by 24 percentage points** | | Special Dividend | CNY 0.352 per share | **significantly enhanced shareholder returns** | [Commercial Management Business](index=8&type=section&id=Commercial%20Management%20Business) In H1, the commercial management business optimized its national footprint, opening **4** new shopping malls and signing **6** new asset-light expansion projects, increasing operational shopping centers to **125**, with double-digit growth in retail sales and rental income, improved operating profit margins, and increased office building occupancy rates after restructuring - During the period, **4** new shopping malls successfully opened, and **6** new asset-light commercial expansion projects were signed, with **4** being TOD projects and **2** existing operational projects[19](index=19&type=chunk)[20](index=20&type=chunk) - As of June 30, 2025, the Group's operational shopping malls increased to **125**[19](index=19&type=chunk)[20](index=20&type=chunk) Shopping Mall Business Key Performance (H1 2025) | Metric | Amount (CNY) | YoY Growth | | :--- | :--- | :--- | | Retail Sales | 122.0 billion | **21.1%** | | Landlord-side Rental Income | 14.7 billion | **17.2%** | | Landlord-side Operating Profit Margin | **68.2%** | **increased by 0.4 percentage points** | - The office building business completed its restructuring, with the occupancy rate for **27** operational projects increasing by **0.5 percentage points** to **74.1%** compared to the end of 2024[21](index=21&type=chunk) [Property Management Business](index=9&type=section&id=Property%20Management%20Business) The property management business maintained its industry-leading position in H1, with steady market expansion, adding **14.32 million square meters** in contracted area, reaching **420 million square meters** under management across **171** cities, while enhancing urban space operational capabilities, increasing non-residential revenue share, and improving community space customer satisfaction and collection rates - In H1, property expansion added **14.32 million square meters** in contracted area[22](index=22&type=chunk)[24](index=24&type=chunk) - As of June 30, 2025, the area under management reached **420 million square meters**, contracted area was **452 million square meters**, covering **171** cities nationwide[22](index=22&type=chunk)[24](index=24&type=chunk) - **37** urban public space projects were expanded, securing key projects such as Wenzhou Longgang Civic Center and Shenzhen Xili Lake Greenway[22](index=22&type=chunk)[24](index=24&type=chunk) - Non-residential business revenue share increased by **2.2 percentage points** year-on-year to **18.4%**, further solidifying its position as an urban space operation service provider[23](index=23&type=chunk)[25](index=25&type=chunk) - Community space business customer satisfaction improved by **0.3 points** to **92.06 points** compared to the end of 2024, contributing to a **1 percentage point** year-on-year increase in collection rate to **76%**[23](index=23&type=chunk)[25](index=25&type=chunk) [Grand Member Business](index=10&type=section&id=Grand%20Member%20Business) The Grand Member business achieved a breakthrough in H1 2025, completing the acquisition of "CR Link" and integrating member resources, turning operational losses into profits, with significant growth in total members and points issued, strengthening the competitive advantage of the "2+1" integrated business model - In H1, the Grand Member business completed the acquisition of "**CR Link**" and integrated member resources, achieving a turnaround in operations, and enhancing member operational capabilities and digital service efficiency[26](index=26&type=chunk)[29](index=29&type=chunk) - As of June 30, 2025, the total number of Mixc Star members reached **72.37 million**, an increase of **18.5%** from the end of 2024[26](index=26&type=chunk)[29](index=29&type=chunk) - The total value of Mixc Star points issued amounted to **CNY 590 million**, a year-on-year increase of **18.0%**[26](index=26&type=chunk)[29](index=29&type=chunk) [Technology Empowerment](index=10&type=section&id=Technology%20Empowerment) In H1, the Group steadfastly advanced digital transformation through "five modernizations" (technological production, digital operations, smart spaces, data assetization, green and low-carbon), enhancing operational efficiency, intelligence, and data value across commercial and property management segments, while actively applying AI technology - The Group is firmly implementing **digital transformation**, continuously deepening technology empowerment through "**five modernizations**": technological production, digital operations, smart spaces, data assetization, and green and low-carbon[27](index=27&type=chunk)[30](index=30&type=chunk) - The commercial management segment's store management system achieved **100%** coverage for operational projects, the "Liangjia" mini-program tenant-side coverage reached **98%**, and "Yidian Mixc" upgraded its online service experience[27](index=27&type=chunk)[31](index=31&type=chunk) - The property management segment's "Mixc Services" achieved **100%** multi-format coverage for community and urban spaces, and the "Park Boundary" parking management system project coverage exceeded **90%**[27](index=27&type=chunk)[31](index=31&type=chunk) - Promoting scaled development of clean energy, **4** shopping malls achieved **100%** green electricity procurement; energy efficiency improvements covered all areas, with over **200** energy-saving optimization projects achieving annual electricity savings of approximately **20 million kWh**[33](index=33&type=chunk)[37](index=37&type=chunk) - The Group emphasizes the application of **artificial intelligence** technology, completing private deployment during the period, building an AI application development platform, and promoting efficiency improvements and management empowerment[34](index=34&type=chunk)[38](index=38&type=chunk) [Organizational Efficiency and Talent Development](index=11&type=section&id=Organizational%20Efficiency%20and%20Talent%20Development) In H1, the Group pursued organizational reform with goals of "flat structure, leading human efficiency, and lean costs," optimizing business processes, reshaping the commercial office building organization, launching the "Mixc Gravity" program, and improving compensation and incentive mechanisms to build an efficient talent supply chain - The Group aims for "**flat structure**, **leading human efficiency**, and **lean costs**," continuously promoting organizational reform towards "headquarters platformization, segment entity-ization, specialized tracks"[35](index=35&type=chunk)[39](index=39&type=chunk) - The commercial management segment completed its office building organizational reshaping, while the property management segment developed an ecological operation mechanism reform plan based on service penetration[35](index=35&type=chunk)[39](index=39&type=chunk) - The "**Mixc Gravity**" program was launched to recruit elite external talent, strengthen talent depth in key internal positions, and build an efficient talent supply chain to support business development[35](index=35&type=chunk)[39](index=39&type=chunk) - Further improving market-oriented compensation and incentive reforms, reshaping the grassroots employee compensation system, and emphasizing care for frontline staff[35](index=35&type=chunk)[39](index=39&type=chunk) [Environmental, Social, and Governance (ESG)](index=12&type=section&id=Environmental%2C%20Social%2C%20and%20Governance%28ESG%29) The Group integrated its ESG strategy into business management, achieving full carbon verification coverage, making significant progress in low-carbon environmental protection, rural revitalization, community care, and public responsibility, continuously enhancing its ESG influence, and receiving multiple authoritative ratings and awards - The Group integrates its **ESG strategy** into business and management, continuously updates its ESG policy system, and achieves **full coverage of carbon verification**[40](index=40&type=chunk)[42](index=42&type=chunk) - During the period, "Warm Heart Stations" cumulatively served **400,000 people**, and the "Love for Hope" public welfare education program entered **11** China Resources Hope Towns[40](index=40&type=chunk)[42](index=42&type=chunk) - Sustainable procurement deepened, with the proportion of centralized procurement for low-carbon and environmentally friendly certified products reaching **30%**[40](index=40&type=chunk)[42](index=42&type=chunk) - The Group's **ESG influence** continues to grow, receiving authoritative awards from the International WELL Building Institute, with stable-to-rising ratings from Wind, Morningstar, and MSCI, and its annual "Sustainability Report" receiving the highest "**Five-Star Excellent**" rating for the first time[40](index=40&type=chunk)[42](index=42&type=chunk) - "**Mixc City**" was listed on the World Brand Lab's "**China's 500 Most Valuable Brands**" list for the first time[40](index=40&type=chunk)[42](index=42&type=chunk) [Future Outlook](index=12&type=section&id=Future%20Outlook) The Group anticipates future opportunities from China's economic resilience, unleashed consumption potential, urban cluster development, asset renewal, and REITs expansion, aiming to conclude its "14th Five-Year Plan" in H2 with robust performance and enhanced shareholder value, while maintaining its "urban quality life service platform" strategic positioning long-term and accelerating the cultivation of a second growth curve - The Chinese economy demonstrates strong resilience and vitality, with the domestic circulation's primary role strengthening and consumption potential continuously unleashed; modern urban clusters and metropolitan areas are accelerating development, bringing new opportunities for regional deep cultivation strategies; urban development's stock quality and efficiency improvements will open new spaces for asset renewal and urban operation services; normalized REITs expansion accelerates the revitalization of existing assets, and new commercial operation paradigms are rapidly taking shape[41](index=41&type=chunk)[43](index=43&type=chunk) - In H2, the Group will fully drive the successful conclusion of the "14th Five-Year Plan" strategic blueprint, achieving **stable performance growth** and **enhanced shareholder value**[44](index=44&type=chunk)[45](index=45&type=chunk) - In the medium to long term, the Group will firmly adhere to its strategic positioning as an "**urban quality life service platform**," maintain the "**2+1 integrated business model**," target the goal of becoming a world-class enterprise, continuously expand its core business advantages, and accelerate the cultivation of a second growth curve[46](index=46&type=chunk)[47](index=47&type=chunk) [Management Discussion and Analysis](index=15&type=section&id=Management%20Discussion%20and%20Analysis) This section provides a detailed analysis of the Group's H1 2025 business operations and financial performance, covering specific progress and data for commercial, property management, and ecosystem businesses, alongside an in-depth review of changes and drivers for key financial metrics such as revenue, costs, profit, cash flow, and balance sheet, while also outlining future development strategies and significant matters [Business Review](index=15&type=section&id=Business%20Review) The Group's business is primarily divided into commercial management, property management, and ecosystem businesses, encompassing shopping mall and office building operations, community and urban space property management and value-added services, and diverse ecosystem services including member operations, marketing, and self-operated cosmetics - The Group's businesses include **commercial management**, **property management**, and **ecosystem businesses**[49](index=49&type=chunk)[52](index=52&type=chunk) - Commercial management business covers commercial operation services (investment attraction, operation, opening preparation) and property management services for shopping malls and office buildings, as well as commercial sub-leasing services[51](index=51&type=chunk)[53](index=53&type=chunk)[54](index=54&type=chunk) - Property management business provides property management services (basic property management, non-owner value-added, owner value-added) and other value-added services for community and urban spaces[56](index=56&type=chunk)[57](index=57&type=chunk)[58](index=58&type=chunk) - Ecosystem business expands diversified ecological services such as member operations and marketing, self-operated cosmetics, consulting services, and cultural operations, based on core segment services[59](index=59&type=chunk) H1 2025 Revenue and Gross Profit Margin Overview | Business Segment | Revenue (CNY thousand) | Revenue Share (%) | Gross Profit Margin (%) | | :--- | :--- | :--- | :--- | | Commercial Management | 3,266,893 | 38.3 | 66.1 | | Shopping Malls | 2,264,435 | 26.6 | 78.7 | | Office Buildings | 1,002,458 | 11.7 | 37.7 | | Property Management | 5,156,450 | 60.5 | 18.8 | | Community Spaces | 4,207,251 | 49.4 | 19.8 | | Urban Spaces | 949,199 | 11.1 | 14.2 | | Ecosystem Business | 100,194 | 1.2 | 37.2 | | **Total** | **8,523,537** | **100.0** | **37.1** | [Commercial Management Segment](index=18&type=section&id=Commercial%20Management%20Segment) The commercial management segment achieved revenue growth in both shopping mall and office building sectors, with shopping mall service revenue increasing by **19.8%** year-on-year, **120** opened projects totaling **13.1 million square meters**, and office building service revenue growing by **4.5%**, with **27** office buildings providing commercial operation services and **225** for property management services - For the six months ended June 30, 2025, the Group's commercial operation and management service revenue from shopping malls was **CNY 2,264.4 million**, a year-on-year increase of **19.8%**, accounting for **26.6%** of total revenue[63](index=63&type=chunk)[65](index=65&type=chunk) Shopping Mall Project Contracted and Opened Status (June 30, 2025) | Project Type | Contracted GFA (thousand sq.m.) | Contracted Projects | Opened GFA (thousand sq.m.) | Opened Projects | | :--- | :--- | :--- | :--- | :--- | | Management Output Projects | 19,492 | 175 | 13,093 | 120 | | Profit-sharing Projects | 327 | 4 | 127 | 2 | | Lease Operation Projects | 488 | 4 | 340 | 3 | - For the six months ended June 30, 2025, the Group's commercial operation and property management service revenue from office buildings was **CNY 1,002.5 million**, a year-on-year increase of **4.5%**, accounting for **11.7%** of total revenue[71](index=71&type=chunk)[73](index=73&type=chunk) Office Building Project Contracted and Under Management Status (June 30, 2025) | Service Type | Contracted GFA (thousand sq.m.) | Contracted Projects | GFA Under Management (thousand sq.m.) | Projects Under Management | | :--- | :--- | :--- | :--- | :--- | | Commercial Operation Services | 2,259 | 34 | 1,875 | 27 | | Property Management Services | 22,334 | 248 | 17,789 | 225 | [Property Management Segment](index=23&type=section&id=Property%20Management%20Segment) The property management segment developed in both community and urban spaces, with community space property management service revenue growing by **8.8%** year-on-year, **1,412** projects under management, and **275.5 million square meters** under management; non-owner value-added service revenue decreased by **34.6%**, and owner value-added service revenue decreased by **32.7%**, mainly due to market and business model adjustments; urban space property management service revenue increased by **15.1%** year-on-year, with **432** projects under management and **127.2 million square meters** under management, where revenue growth significantly outpaced scale growth - For the six months ended June 30, 2025, the Group's property management service revenue from community spaces was **CNY 3,500.7 million**, a year-on-year increase of **8.8%**, accounting for **41.1%** of total revenue[79](index=79&type=chunk)[80](index=80&type=chunk) - As of June 30, 2025, the number of community space projects under management was **1,412**, an increase of **77** from the same period last year, with a total GFA under management of **275.5 million square meters**, an increase of **16.0 million square meters** from the same period last year[79](index=79&type=chunk)[80](index=80&type=chunk) - For the six months ended June 30, 2025, the Group's non-owner value-added service revenue provided to developers was **CNY 220.1 million**, a year-on-year decrease of **34.6%**, primarily due to reduced land acquisition and delivery project areas by the parent company, leading to pressure on service unit prices[85](index=85&type=chunk)[86](index=86&type=chunk) - For the six months ended June 30, 2025, the Group's owner value-added service revenue from community spaces was **CNY 486.5 million**, a year-on-year decrease of **32.7%**, mainly affected by adjustments to the operating model of this business segment[87](index=87&type=chunk)[90](index=90&type=chunk) - For the six months ended June 30, 2025, the Group's property management service revenue from urban spaces was **CNY 949.2 million**, a year-on-year increase of **15.1%**, accounting for **11.1%** of total revenue[88](index=88&type=chunk)[91](index=91&type=chunk) - As of June 30, 2025, the number of urban space property projects under management was **432**, a decrease of **12** from the same period last year, with a total area under management of **127.2 million square meters**, an increase of **3.9 million square meters** from the same period last year; revenue growth significantly outpaced the growth in managed scale[88](index=88&type=chunk)[91](index=91&type=chunk) [Ecosystem Business](index=27&type=section&id=Ecosystem%20Business) The ecosystem business generated **CNY 100.2 million** in revenue in H1 2025, a **104.0%** year-on-year increase, accounting for **1.2%** of total revenue, primarily driven by the acquisitions of CR Network Shenzhen and CR Data Technology Guangzhou, integrating member operations and marketing services, and adding consulting service revenue - For the six months ended June 30, 2025, the Group's ecosystem business revenue was **CNY 100.2 million**, a year-on-year increase of **104.0%**, accounting for **1.2%** of total revenue[96](index=96&type=chunk)[97](index=97&type=chunk) - During the period, the acquisitions of **CR Network Shenzhen** and **CR Data Technology Guangzhou** were completed, integrating their **CR Link** member operation services and marketing services businesses[99](index=99&type=chunk)[100](index=100&type=chunk) - New specific consulting services provided to consumer funds under China Resources Group generated revenue of **CNY 17,490 thousand**[99](index=99&type=chunk)[100](index=100&type=chunk) [Future Outlook](index=28&type=section&id=Future%20Outlook) The Group aims to consolidate its market position and achieve resilient growth by pursuing high-quality scaled development, enhancing operational efficiency, building an integrated membership system, and practicing sustainable development, aspiring to become a world-class urban quality life service platform - The Group will adhere to deep regional cultivation, specialized tracks, and strategically led M&A, expanding market share in core cities, enhancing differentiated competitive advantages, and achieving high-quality scaled development[101](index=101&type=chunk)[102](index=102&type=chunk) - By systematically building quality services, technological intelligence, and organizational efficiency, the Group will advance its digital strategy of "technological production, digital operations, smart spaces, data assetization, and green and low-carbon," deepening the "headquarters platformization, segment entity-ization, specialized tracks" management model to achieve high-quality and high-efficiency operations[103](index=103&type=chunk)[104](index=104&type=chunk) - Continuously deepening the construction of the member ecosystem, focusing on the three elements of "points, rights, and data," building a holistic member value ecosystem, transforming from traffic operation to user asset operation, and enhancing customer stickiness[105](index=105&type=chunk)[107](index=107&type=chunk) - Upholding green, low-carbon, and sustainable principles, integrating **ESG concepts** throughout the entire business process, responding to the national "dual carbon" strategy, and establishing carbon peak by **2030** and carbon neutrality by **2050** targets[106](index=106&type=chunk)[108](index=108&type=chunk) [Financial Review](index=31&type=section&id=Financial%20Review) The financial review details the Group's H1 2025 revenue, costs, profit, cash flow, and balance sheet, showing a **6.5%** year-on-year revenue increase, **16.3%** gross profit growth, and a **3.1 percentage point** rise in gross profit margin, with both net profit and core net profit increasing, ample liquidity, but an elevated asset-liability ratio due to dividend declarations - For the six months ended June 30, 2025, the Group's revenue was **CNY 8,523.5 million**, a year-on-year increase of **6.5%**, driven by continuous expansion of managed scale and improved commercial retail efficiency[109](index=109&type=chunk)[112](index=112&type=chunk) - For the six months ended June 30, 2025, the Group's cost of sales was **CNY 5,358.4 million**, a year-on-year increase of **1.5%**, primarily due to corresponding increases in various costs with the continuous growth of business scale[110](index=110&type=chunk)[114](index=114&type=chunk) Gross Profit and Gross Profit Margin Changes (H1 2025) | Metric | H1 2025 (CNY thousand) | YoY Growth | Gross Profit Margin (%) | YoY Change (percentage points) | | :--- | :--- | :--- | :--- | :--- | | Gross Profit | 3,165,133 | **16.3%** | 37.1 | **3.1** | | Commercial Management Gross Profit | 2,159,457 | **24.4%** | 66.1 | **5.2** | | Property Management Gross Profit | 968,401 | **0.4%** | 18.8 | **-0.1** | | Ecosystem Business Gross Profit | 37,275 | **77.6%** | 37.2 | **-5.5** | - For the six months ended June 30, 2025, the Group's net profit was **CNY 2,067.8 million**, a year-on-year increase of **8.6%**; net profit attributable to equity holders of the Company was **CNY 2,030.3 million**, a year-on-year increase of **7.4%**[138](index=138&type=chunk)[140](index=140&type=chunk) - For the six months ended June 30, 2025, the Group's core net profit attributable to shareholders was **CNY 2,011.2 million**, a year-on-year increase of **15.0%**[142](index=142&type=chunk)[145](index=145&type=chunk) - As of June 30, 2025, the Group's total cash and cash equivalents (including restricted bank deposits) amounted to **CNY 7,609.8 million**[143](index=143&type=chunk)[146](index=146&type=chunk) - As of June 30, 2025, the Group's asset-liability ratio was **49.3%**, an increase of **6.6 percentage points** from the end of last year, primarily due to the inclusion of declared but unpaid 2024 final and special dividends in current payables[144](index=144&type=chunk)[147](index=147&type=chunk) [Major Investments, Acquisitions and Disposals of Subsidiaries, Associates and Joint Ventures, and Future Plans for Major Investments or Capital Assets](index=38&type=section&id=Major%20Investments%2C%20Acquisitions%20and%20Disposals%20of%20Subsidiaries%2C%20Associates%20and%20Joint%20Ventures%2C%20and%20Future%20Plans%20for%20Major%20Investments%20or%20Capital%20Assets) In H1 2025, the Group completed the equity acquisitions of CR Network Shenzhen and CR Data Technology Guangzhou for a total consideration of **CNY 121.038 million**, aiming to integrate member operations and marketing services, with no other major investment, acquisition, or disposal activities during the period, and future plans consistent with prospectus disclosures - As of June 30, 2025, the Group completed the full equity acquisitions of **CR Network Shenzhen** and **CR Data Technology Guangzhou**, with total considerations of **CNY 114.4 million** and **CNY 6.6 million**, totaling **CNY 121.038 million**[148](index=148&type=chunk)[150](index=150&type=chunk) - The acquisitions aim to integrate member operation services, online mall businesses, and technology data value-added services[148](index=148&type=chunk)[150](index=150&type=chunk) - There were no other major investments, acquisitions, or disposals of subsidiaries, associates, and joint ventures during the period, and future plans are consistent with those disclosed in the prospectus[149](index=149&type=chunk)[151](index=151&type=chunk) [Use of Proceeds from Listing](index=39&type=section&id=Use%20of%20Proceeds%20from%20Listing) As of June 30, 2025, of the **CNY 11,600.4 million** net proceeds from listing, **CNY 5,918.7 million** has been utilized, with the remaining **CNY 5,681.7 million** to be allocated according to revised uses and proportions, expected to be fully utilized by December 2027 - The total net proceeds from listing amounted to approximately **CNY 11,600.4 million**[152](index=152&type=chunk) - As of June 30, 2025, **CNY 5,918.7 million** of the proceeds had been utilized[153](index=153&type=chunk) - The unutilized net proceeds of approximately **CNY 5,681.7 million** will be allocated and used according to the purposes and proportions stated in the announcement dated March 25, 2024[153](index=153&type=chunk) Revised Use of Net Proceeds from Listing and Timetable | Use | Proportion (%) | Planned Net Proceeds for Use (CNY million) | Actual Use for Six Months Ended June 30, 2025 (CNY million) | Unutilized Net Proceeds as of June 30, 2025 (CNY million) | Expected Timetable for Full Utilization | | :--- | :--- | :--- | :--- | :--- | :--- | | Strategic investments and acquisitions to expand property management and commercial operation businesses | 45% | 5,220.3 | 10.1 | 2,070.0 | By December 2027 | | Strategic investments in value-added services and upstream/downstream supply chains in the industry | 30% | 3,480.0 | 121.0 | 2,779.1 | By December 2027 | | Investment in information technology systems and smart communities | 15% | 1,740.1 | 3.2 | 832.6 | By December 2027 | | Working capital and general corporate purposes | 10% | 1,160.0 | 0.0 | 0.0 | Not applicable | | **Total** | **100%** | **11,600.4** | **134.3** | **5,681.7** | | [Investment Properties](index=40&type=section&id=Investment%20Properties) As of June 30, 2025, three properties (Shenzhen Buji Mixc City, Lanzhou Mixc City, Shenzhen Longgang Universiade Project) were classified as investment properties, measured at fair value, with relevant percentage ratios exceeding listing rule requirements, held under long-term operating leases - As of June 30, 2025, three properties were identified as investment properties, including **Shenzhen Buji Mixc City**, **Lanzhou Mixc City**, and **Shenzhen Longgang Universiade Project**[155](index=155&type=chunk)[156](index=156&type=chunk) - These investment properties are recognized in the consolidated statement of financial position in accordance with HKFRS 16 and measured at fair value[155](index=155&type=chunk)[156](index=156&type=chunk) - The properties are currently used as operating lease projects and held under long-term leases, where the lessor has no right to unilaterally terminate the contract during the lease term (except in extreme circumstances)[155](index=155&type=chunk)[156](index=156&type=chunk) [Contingent Liabilities](index=40&type=section&id=Contingent%20Liabilities) As of June 30, 2025, the Group had no material contingent liabilities - As of June 30, 2025, the Group had **no material contingent liabilities** (December 31, 2024: nil)[157](index=157&type=chunk)[159](index=159&type=chunk) [Pledged Assets](index=40&type=section&id=Pledged%20Assets) As of June 30, 2025, the Group had no pledged assets - As of June 30, 2025, the Group had **no pledged assets** (December 31, 2024: nil)[158](index=158&type=chunk)[160](index=160&type=chunk) [Foreign Exchange Risk](index=41&type=section&id=Foreign%20Exchange%20Risk) The Group's primary operations are in China, settled in RMB, resulting in low foreign exchange risk, with non-RMB assets mainly in HKD and USD cash, where HKD cash for dividend distribution has substantially eliminated FX fluctuation risk, and management will dynamically monitor foreign exchange risk - The Group's business is primarily conducted in China, mainly using RMB as the settlement currency, thus foreign exchange risk is **low**[161](index=161&type=chunk)[163](index=163&type=chunk) - As of June 30, 2025, non-RMB assets and liabilities primarily consisted of cash of **HKD 448.7 million** and **USD 112,829.5**[161](index=161&type=chunk)[163](index=163&type=chunk) - The HKD cash balance primarily represented reserve funds for declared but unpaid 2024 final and special dividends, which were disbursed on July 23, 2025, thus the foreign exchange rate fluctuation risk faced has been **substantially eliminated**[161](index=161&type=chunk)[163](index=163&type=chunk) - The Group currently has no foreign currency risk hedging policy, but management will dynamically monitor foreign exchange risk exposures and make necessary adjustments based on market environment changes[161](index=161&type=chunk)[163](index=163&type=chunk) [Employees and Remuneration Policy](index=41&type=section&id=Employees%20and%20Remuneration%20Policy) As of June 30, 2025, the Group employed **39,213** full-time staff in mainland China and Hong Kong, with remuneration policies based on employee performance, experience, and market levels, offering performance bonuses and other benefits - As of June 30, 2025, the Group employed **39,213** full-time staff in mainland China and Hong Kong (December 31, 2024: 42,046 staff)[162](index=162&type=chunk)[164](index=164&type=chunk) - The Group determines employee remuneration based on performance, work experience, and market wage levels, granting performance bonuses as appropriate, with other employee benefits including provident funds, insurance, and medical plans[162](index=162&type=chunk)[164](index=164&type=chunk) [Continuing Disclosure Requirements under Listing Rule 13.21](index=42&type=section&id=Continuing%20Disclosure%20Requirements%20under%20Listing%20Rule%2013.21) The Company entered into a loan agreement with its controlling shareholders containing specific performance covenants requiring China Resources (Holdings) and China Resources Land to maintain minimum shareholding percentages in the Company's issued share capital, which remain effective as of the report date, though the Group has not drawn down the financing amount - The Company entered into a loan agreement with specific performance covenants from its controlling shareholders, and the obligations under these covenants remain in effect[165](index=165&type=chunk)[166](index=166&type=chunk) - The covenants require China Resources (Holdings) and China Resources Land to maintain direct or indirect ownership of not less than **35%** and **51%**, respectively, of the Company's issued share capital[165](index=165&type=chunk)[166](index=166&type=chunk) - As of June 30, 2025, the Group had not drawn down the **HKD 600 million** revolving loan facility amount[165](index=165&type=chunk)[166](index=166&type=chunk) [Post-Balance Sheet Events](index=42&type=section&id=Post-Balance%20Sheet%20Events) As of the report date, no significant events affecting the Group have occurred since June 30, 2025 - No significant events affecting the Group have occurred since June 30, 2025, up to the date of this report[167](index=167&type=chunk)[168](index=168&type=chunk) [Other Information](index=43&type=section&id=Other%20Information) This section discloses directors' and major shareholders' interests in the Company's and its associated corporations' shares, details of continuing connected transactions, changes in directors' information, and the Company's policies and practices regarding securities dealings, corporate governance, financial statement review, and dividend distribution [Directors' Interests and Short Positions in Shares, Underlying Shares, and Debentures of the Company or Any Associated Corporation](index=43&type=section&id=Directors'%20Interests%20and%20Short%20Positions%20in%20Shares%2C%20Underlying%20Shares%2C%20and%20Debentures%20of%20the%20Company%20or%20Any%20Associated%20Corporation) This section discloses the Company's directors' interests in shares of the Company and its associated corporations (China Resources Land, Jiangzhong Pharmaceutical, China Resources Pharmaceutical Group) as of June 30, 2025, primarily long positions with low shareholding percentages Directors' Interests in Shares of the Company (June 30, 2025) | Director's Name | Nature of Interest | Number of Ordinary Shares (L) | Approximate Percentage of Shareholding | | :--- | :--- | :--- | :--- | | Mr. Yu Linkang | Other | 358,304 | **0.02%** | | Mr. Wang Haimin | Other | 52,955 | **0.00%** | | Mr. Nie Zhizhang | Beneficial Owner | 50,000 | **0.00%** | | Mr. Guo Ruifeng | Beneficial Owner | 31,000 | **0.00%** | - Mr. Li Xin beneficially owns **40,000** shares in China Resources Land, representing **0.00%**[176](index=176&type=chunk) - Mr. Guo Shiqing is deemed to own **60,000** shares in Jiangzhong Pharmaceutical Co., Ltd. due to spouse's interest, representing **0.01%**[179](index=179&type=chunk) - Mr. Nie Zhizhang beneficially owns **32,000** shares in China Resources Pharmaceutical Group Limited, representing **0.00%**[182](index=182&type=chunk) [Major Shareholders' Interests and Short Positions in Shares and Underlying Shares](index=46&type=section&id=Major%20Shareholders'%20Interests%20and%20Short%20Positions%20in%20Shares%20and%20Underlying%20Shares) This section discloses major shareholders' interests and short positions in the Company's shares, excluding directors, as of June 30, 2025, showing China Resources (Holdings) and its associates collectively hold **73.72%** of the Company's shares, with JPMorgan Chase & Co. also holding a certain proportion of interests and short positions - China Resources Company Limited, China Resources Co., Ltd., CRC Bluesky Limited, China Resources (Holdings) Co., Ltd., and China Resources Group (Land) Limited are all deemed to have interests in **1,682,666,000** shares of the Company, representing **73.72%** of the issued share capital[188](index=188&type=chunk)[191](index=191&type=chunk) JPMorgan Chase & Co.'s Interests and Short Positions in Shares of the Company (June 30, 2025) | Nature of Interest | Number of Ordinary Shares (L) | Number of Ordinary Shares (S) | Number of Ordinary Shares (P) | Approximate Percentage of Shareholding (L) | Approximate Percentage of Shareholding (S) | Approximate Percentage of Shareholding (P) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Beneficial Owner | 11,758,190 | 10,492,669 | - | **0.52%** | **0.46%** | - | | Investment Manager | 13,228,351 | - | - | **0.58%** | - | - | | Person with a security interest in shares | 29,200 | - | - | **0.00%** | - | - | | Approved Lending Agent | - | - | 112,104,982 | - | - | **4.91%** | [Continuing Connected Transactions](index=49&type=section&id=Continuing%20Connected%20Transactions) This section details the Group's H1 2025 continuing connected transactions with associates such as China Resources Land, China Resources (Holdings), China Resources Bank, and China Resources Capital, covering property leases, procurement, commercial operation services, value-added services, deposits and financial services, framework loan agreements, and member operations and marketing services, along with their annual caps and actual transaction amounts - The Company's associates include China Resources Capital and its associates, China Resources Land and its associates, China Resources (Holdings) and its holding companies and subsidiaries, China Resources Bank, China Resources Co., Ltd., and China Resources Trust[192](index=192&type=chunk)[193](index=193&type=chunk)[194](index=194&type=chunk)[195](index=195&type=chunk)[196](index=196&type=chunk)[197](index=197&type=chunk)[198](index=198&type=chunk)[199](index=199&type=chunk)[200](index=200&type=chunk)[201](index=201&type=chunk)[202](index=202&type=chunk)[203](index=203&type=chunk)[204](index=204&type=chunk)[205](index=205&type=chunk) [Partially Exempt Continuing Connected Transactions (Subject to Reporting, Annual Review and Announcement Requirements)](index=51&type=section&id=Partially%20Exempt%20Continuing%20Connected%20Transactions%20%28Subject%20to%20Reporting%2C%20Annual%20Review%20and%20Announcement%20Requirements%29) This section lists the Group's partially exempt continuing connected transactions with associates for property leases, parking space purchases, procurement, commercial operation services, value-added services, deposits and financial services, framework loans, and consulting services, providing 2025 annual caps and actual transaction amounts for the six months ended June 30, 2025 Overview of Partially Exempt Continuing Connected Transactions (H1 2025 Actual Transaction Amounts) | Framework Agreement | Transaction Type | Annual Cap (CNY thousand) | Actual Transaction Amount (CNY thousand) | | :--- | :--- | :--- | :--- | | 2023 CR Land Property Management Lease | Group leases properties from CR Land associates | 155,000 | 19,870 | | | CR Land associates lease properties from Group | 20,000 | – | | | CR Land associates lease properties from Group under commercial sub-lease model | 50,000 | 3,142 | | 2023 CR (Holdings) Property Management Lease | Group leases properties from CR (Holdings) associates | 51,600 | 458 | | | CR (Holdings) associates lease properties from Group under commercial sub-lease model | 110,000 | 3,995 | | 2023 Parking Space Purchase | Group purchases parking spaces | 440,000 | 1,000 | | 2023 CR (Holdings) Procurement | Group's purchase amount | 330,000 | 68,878 | | | CR (Holdings) associates' purchase amount | 110,000 | 5,943 | | 2023 CR (Holdings) Commercial Operation Services | Actual service fees received by Group | 280,000 | 27,000 | | 2023 CR (Holdings) Value-Added Services | Fees to be collected by Group for community value-added services | 130,000 | 25,064 | | | Fees to be collected by Group for value-added services targeting property management developers | 25,000 | – | | 2023 CR Land Procurement | Actual purchase amount paid by Group | 440,000 | 88,000 | | 2023 Deposit and Financial Services | Maximum daily deposit amount placed by Group with CR Bank | 700,000 | 632,884 | | | Maximum daily amount of financial services and products provided by CR Bank | 500,000 | – | | 2023 Framework Loan | Maximum daily outstanding principal amount during the year | 1,000,000 | – | | 2024 Consulting Services | Actual service

Investment Rating - The investment rating for the real estate industry is "Positive" (maintained) [1] Core Insights - The report indicates that new housing transaction areas have shown a month-on-month increase, while real estate development investment has decreased year-on-year from January to August 2025 [3] - The report highlights that the decline in housing prices has been consistent since 2022, with a significant drop in both new and second-hand housing prices across 70 cities, although the rate of decline has started to narrow due to supportive policies [5][16] - It emphasizes that the relationship between population growth and housing prices is not straightforward, as effective housing demand driven by economic development and income growth is crucial for influencing prices [5][25] Summary by Sections Industry Overview - The real estate market has entered a downward trend since 2022, with new and second-hand housing prices experiencing a decline for over 40 months [5][16] - As of August 2025, the new housing price index across 70 cities has decreased by 3.0% year-on-year, while the second-hand housing price index has dropped by 5.5% [16][20] Population Impact - The report concludes that population factors are long-term variables with limited mid-term impact on housing prices, as the marginal changes in housing prices are influenced more by monetary policy, supply-demand relationships, and economic expectations [25][39] - A regression analysis across several developed countries shows that housing price indices do not have a significant correlation with population growth rates [40][42] International Experience - The report draws parallels with international experiences, noting that stable fiscal and monetary policies are essential for stabilizing housing prices after declines [6][46] - It cites examples from the U.S., Japan, and South Korea, where coordinated fiscal and monetary policies have successfully supported housing market recovery after significant downturns [46][49] Investment Recommendations - The report recommends focusing on real estate companies with strong credit ratings and solid fundamentals in urban areas, such as China Overseas Development and Poly Developments [7] - It also suggests that companies excelling in both residential and commercial real estate, as well as those providing high-quality property management services, are well-positioned for growth [7]