智通财经APP获悉，香港联交所最新资料显示，9月23日，建发国际集团(01908)股东将股票由香港上海 汇丰银行转入UBS Securities Hong Kong Limited，转仓市值9.38亿港元，占比2.32%。 财报显示，2025年上半年，建发国际集团实现收益341.65亿元人民币，同比增长4.3%;公司权益持有人 应占溢利9.14亿元，同比增长11.8%。 ...

[Company Information](index=3&type=section&id=Company%20Information) This section details the company's board composition, committee structures, and lists key professional advisors and contact information [Board Composition](index=3&type=section&id=Board%20Composition) This chapter lists the members of the company's board of directors, including executive, non-executive, and independent non-executive directors, noting appointment/resignation dates for some - Executive Directors include Mr. Lin Weiguo (Chairman), Mr. Tian Meitan (CEO), Ms. Zhao Chengmin, and Mr. Xu Yixuan[4](index=4&type=chunk) - Non-executive Director Mr. Xu Xiaoxi was appointed on May 13, 2025, while Mr. Huang Wenzhou and Mr. Zheng Yongda resigned on the same day[4](index=4&type=chunk) - Independent Non-executive Directors include Mr. Huang Wei, Mr. Huang Daren, Mr. Chen Zhenyi, and Mr. Dai Yiyi[5](index=5&type=chunk) [Committee Composition](index=3&type=section&id=Committee%20Composition) This chapter details the membership of the company's Audit, Remuneration, and Nomination Committees, identifying the chairman for each - The Audit Committee is chaired by Mr. Huang Wei, with members including Mr. Huang Daren, Mr. Chen Zhenyi, and Mr. Dai Yiyi[5](index=5&type=chunk) - The Remuneration Committee is chaired by Mr. Huang Daren, with members including Mr. Huang Wei, Mr. Chen Zhenyi, and Mr. Dai Yiyi[5](index=5&type=chunk) - The Nomination Committee is chaired by Mr. Lin Weiguo, with members including Mr. Chen Zhenyi, Mr. Huang Wei, Mr. Huang Daren, and Mr. Dai Yiyi[7](index=7&type=chunk) [Professional Advisors and Offices](index=4&type=section&id=Professional%20Advisors%20and%20Offices) This chapter lists the company's independent auditor, principal bankers, registered office, main operating locations, share registrar, legal counsel, stock code, and website - The independent auditor is Grant Thornton Hong Kong Limited[8](index=8&type=chunk) - Principal bankers include Agricultural Bank of China, Bank of China, Bank of Communications, China CITIC Bank, China Construction Bank, China Merchants Bank, Industrial and Commercial Bank of China, Industrial Bank, Postal Savings Bank of China, and Shanghai Pudong Development Bank[8](index=8&type=chunk) - The company's stock code is **1908**, and its official website is www.cndintl.com[11](index=11&type=chunk) [Interim Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=6&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) This section presents the interim condensed consolidated statement of profit or loss and other comprehensive income, highlighting key financial performance metrics [Profit or Loss Performance](index=6&type=section&id=Profit%20or%20Loss%20Performance) For the six months ended June 30, 2025, the Group's revenue increased by 4.3% year-on-year to RMB 34.16 billion, and gross profit increased by 12.8% to RMB 4.40 billion. Profit for the period grew by 4.7% to RMB 1.50 billion, with profit attributable to equity holders of the Company increasing by 11.8% to RMB 910 million Key Data from Interim Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income | Indicator | For the six months ended June 30, 2025 (RMB thousands) | For the six months ended June 30, 2024 (RMB thousands) | | :--- | :--- | :--- | | Revenue | 34,164,664 | 32,753,303 | | Cost of sales | (29,762,390) | (28,850,554) | | Gross profit | 4,402,274 | 3,902,749 | | Other income | 354,150 | 409,133 | | Loss on fair value change of investment properties | (34,849) | (1,369) | | Administrative expenses | (986,783) | (926,748) | | Selling expenses | (1,392,190) | (1,436,784) | | Finance costs | (466,897) | (266,707) | | Profit before income tax | 2,254,661 | 2,007,694 | | Income tax expense | (750,096) | (571,216) | | Profit for the period | 1,504,565 | 1,436,478 | | Profit attributable to equity holders of the Company | 913,748 | 817,068 | | Basic earnings per share (RMB cents) | 48.09 | 47.30 | | Diluted earnings per share (RMB cents) | 45.18 | 42.95 | - Total comprehensive income for the period was **RMB 1,538,636 thousand**, an increase from **RMB 1,408,741 thousand** in the prior year period[15](index=15&type=chunk) [Interim Condensed Consolidated Statement of Financial Position](index=8&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Financial%20Position) This section presents the interim condensed consolidated statement of financial position, outlining the Group's assets, liabilities, and equity at the reporting date [Assets and Liabilities Overview](index=8&type=section&id=Assets%20and%20Liabilities%20Overview) As of June 30, 2025, the Group's total assets reached RMB 443.93 billion, a 7.62% increase from the end of 2024. Both non-current and current assets grew, with properties under development increasing significantly. Total liabilities rose by 8.69% to RMB 336.93 billion, while total equity increased by 4.39% to RMB 107.00 billion Key Data from Interim Condensed Consolidated Statement of Financial Position | Indicator | As of June 30, 2025 (RMB thousands) | As of December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Non-current assets | 38,169,696 | 35,098,138 | | Current assets | 405,762,687 | 377,385,247 | | **Total assets** | **443,932,383** | **412,483,385** | | Current liabilities | 258,166,809 | 231,144,664 | | Non-current liabilities | 78,764,449 | 78,833,828 | | **Total liabilities** | **336,931,258** | **309,978,492** | | Equity attributable to owners of the Company | 38,507,230 | 37,559,870 | | Non-controlling interests | 68,493,895 | 64,945,023 | | **Total equity** | **107,001,125** | **102,504,893** | - Properties under development increased from **RMB 223,028,034 thousand** at the end of 2024 to **RMB 243,923,464 thousand** as of June 30, 2025[16](index=16&type=chunk) - Contract liabilities increased from **RMB 159,457,346 thousand** at the end of 2024 to **RMB 184,410,331 thousand** as of June 30, 2025[17](index=17&type=chunk) [Interim Condensed Consolidated Statement of Changes in Equity](index=11&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) This section presents the interim condensed consolidated statement of changes in equity, detailing movements in equity components over the reporting period [Analysis of Changes in Equity](index=11&type=section&id=Analysis%20of%20Changes%20in%20Equity) This chapter details the changes in equity for the six months ended June 30, 2025. Total comprehensive income for the period was RMB 1,538,636 thousand, including profit attributable to equity holders of RMB 913,748 thousand. Significant contributions came from non-controlling interests, and the 2024 final dividend was settled in cash and new shares - As of June 30, 2025, total equity was **RMB 107,001,125 thousand**, an increase from **RMB 102,504,893 thousand** as of January 1, 2025[22](index=22&type=chunk) - Total comprehensive income for the period was **RMB 1,538,636 thousand**, comprising profit for the period of **RMB 1,504,565 thousand** and currency translation differences of **RMB 34,071 thousand**[22](index=22&type=chunk) - Capital contributions from non-controlling interests amounted to **RMB 3,381,372 thousand**, significantly contributing to total equity[22](index=22&type=chunk) - The 2024 final dividend was settled with approximately **RMB 318,081 thousand** in cash and the issuance of new shares totaling approximately **RMB 1,887,775 thousand**[22](index=22&type=chunk)[23](index=23&type=chunk) [Interim Condensed Consolidated Statement of Cash Flows](index=13&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) This section presents the interim condensed consolidated statement of cash flows, detailing cash movements from operating, investing, and financing activities [Cash Flow Analysis](index=13&type=section&id=Cash%20Flow%20Analysis) For the six months ended June 30, 2025, the Group generated net cash inflow from operating activities of RMB 12.03 billion, compared to a net outflow in the prior year. Net cash outflow from investing activities was RMB 12.45 billion, and net cash outflow from financing activities was RMB 530 million. Cash and cash equivalents at period-end totaled RMB 53.29 billion Key Data from Interim Condensed Consolidated Statement of Cash Flows | Indicator | For the six months ended June 30, 2025 (RMB thousands) | For the six months ended June 30, 2024 (RMB thousands) | | :--- | :--- | :--- | | Net cash from/(used in) operating activities | 12,031,348 | (3,411,876) | | Net cash (used in)/from investing activities | (12,448,840) | 811,866 | | Net cash used in financing activities | (529,193) | (2,268,153) | | Net decrease in cash and cash equivalents | (946,685) | (4,868,163) | | Cash and cash equivalents as of June 30 | 53,294,875 | 46,255,626 | - Cash used in financing activities for repayment of interest-bearing borrowings, indirect holding company loans, and amounts due to non-controlling interests was approximately **RMB 123,521.16 million**, an increase from approximately **RMB 117,912.22 million** in the prior year period[25](index=25&type=chunk) [Notes to the Unaudited Interim Condensed Consolidated Financial Information](index=14&type=section&id=Notes%20to%20the%20Unaudited%20Interim%20Condensed%20Consolidated%20Financial%20Information) This section provides detailed notes to the unaudited interim condensed consolidated financial information, explaining the basis of preparation, significant accounting policies, and specific financial items [1. General Information](index=14&type=section&id=1.%20General%20Information) This note clarifies that the interim financial information is presented in RMB thousands, despite the functional currency being HKD, and identifies the company's direct, indirect, and ultimate holding companies - The interim financial information is presented in **RMB thousands**, while the Company's functional currency is **HKD**[26](index=26&type=chunk)[29](index=29&type=chunk) - The Company's ultimate holding company is Xiamen C&D Group Co., Ltd[27](index=27&type=chunk)[30](index=30&type=chunk) [2. Basis of Preparation](index=14&type=section&id=2.%20Basis%20of%20Preparation) This note states that the interim financial information is prepared in accordance with HKAS 34 and Appendix D2 of the Listing Rules, and should be read in conjunction with the Group's annual consolidated financial statements for the year ended December 31, 2024 - The interim financial information has been prepared in accordance with Hong Kong Accounting Standard 34 'Interim Financial Reporting' issued by the Hong Kong Institute of Certified Public Accountants and the applicable disclosure requirements of Appendix D2 to the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited[28](index=28&type=chunk)[31](index=31&type=chunk) - The interim financial information should be read in conjunction with the Group's annual consolidated financial statements for the year ended December 31, 2024[28](index=28&type=chunk)[32](index=32&type=chunk) [3. Adoption of New and Revised Hong Kong Financial Reporting Standards ("HKFRSs")](index=15&type=section&id=3.%20Adoption%20of%20New%20and%20Revised%20Hong%20Kong%20Financial%20Reporting%20Standards%20(%22HKFRSs%22)) This note explains the Group's adoption of new and revised HKFRSs on January 1, 2025, including HKAS 21 (Amendment) "Lack of Exchangeability," which had no material impact on current or prior period results. It also lists standards issued but not yet effective, which are also not expected to have a significant impact - The Group adopted new and revised HKFRSs on January 1, 2025, including HKAS 21 (Amendment) 'Lack of Exchangeability'[33](index=33&type=chunk)[35](index=35&type=chunk) - The adoption of new and revised HKFRSs had no material impact on the preparation and presentation of the results and financial position for the current and prior periods[35](index=35&type=chunk) - HKFRSs issued but not yet effective include HKFRS 18, HKFRS 19, and amendments to HKFRS 9, which are not expected to have a significant impact on the Group's consolidated financial statements[37](index=37&type=chunk)[39](index=39&type=chunk) [4. Revenue and Segment Information](index=17&type=section&id=4.%20Revenue%20and%20Segment%20Information) This note explains that the Group determines operating segments based on reports reviewed by the chief operating decision-maker, primarily engaging in property development, property management, and related services. Most of the Group's revenue and results are from the China market. Revenue is analyzed by business type and recognition timing - The Group primarily engages in property development, property management, and other related services, identified as a single segment[42](index=42&type=chunk) - The majority of the Group's revenue and results are derived from the China market, hence no geographical information is presented[43](index=43&type=chunk) Group Revenue Analysis | Revenue Source | For the six months ended June 30, 2025 (RMB thousands) | For the six months ended June 30, 2024 (RMB thousands) | | :--- | :--- | :--- | | Property development | 32,143,307 | 31,010,852 | | Property management and other related services | 2,021,357 | 1,742,451 | | **Total** | **34,164,664** | **32,753,303** | Revenue Recognition Timing Analysis | Revenue Recognition Timing | For the six months ended June 30, 2025 (RMB thousands) | For the six months ended June 30, 2024 (RMB thousands) | | :--- | :--- | :--- | | At a point in time | 32,213,056 | 31,121,612 | | Over a period of time | 1,951,608 | 1,631,691 | | **Total** | **34,164,664** | **32,753,303** | [5. Other Income](index=19&type=section&id=5.%20Other%20Income) This note lists the components of the Group's other income, primarily including bank interest income, interest income from loans to associates and joint ventures, compensation income, government grants, and sundry income. Total other income for the period was RMB 354,150 thousand, a decrease from the prior year Other Income Details | Other Income Source | For the six months ended June 30, 2025 (RMB thousands) | For the six months ended June 30, 2024 (RMB thousands) | | :--- | :--- | :--- | | Bank interest income | 249,468 | 318,965 | | Interest income from loans to associates | 24,099 | 20,080 | | Interest income from loans to joint ventures | 7,359 | 11,261 | | Compensation income | 21,185 | 16,492 | | Government grants | 10,285 | 11,246 | | Fair value change (loss)/gain on financial assets at fair value through profit or loss | (4,000) | 1,000 | | Sundry income | 28,063 | 25,240 | | **Total** | **354,150** | **409,133** | [6. Finance Costs](index=20&type=section&id=6.%20Finance%20Costs) This note provides a detailed analysis of the Group's finance costs, including interest expenses on bank borrowings, indirect holding company loans, amounts due to non-controlling shareholders and related companies, and the significant financing component of contract liabilities. Total borrowing costs were RMB 3,253,739 thousand, with net finance costs of RMB 466,897 thousand after deducting capitalized interest Finance Costs Details | Finance Cost Item | For the six months ended June 30, 2025 (RMB thousands) | For the six months ended June 30, 2024 (RMB thousands) | | :--- | :--- | :--- | | Interest expense on bank borrowings | 399,215 | 502,061 | | Interest expense on indirect holding company loans | 960,110 | 1,029,169 | | Amounts due to non-controlling shareholders | 95,341 | 37,052 | | Amounts due to associates | 39,260 | 16,077 | | Amounts due to joint ventures | 8,025 | 3,742 | | Significant financing component of contract liabilities | 1,750,473 | 2,509,394 | | Finance costs on lease liabilities | 1,315 | 2,828 | | **Total borrowing costs** | **3,253,739** | **4,100,323** | | Less: Capitalized interest | (2,786,842) | (3,833,616) | | **Finance costs** | **466,897** | **266,707** | - Borrowing costs were capitalized at applicable annual interest rates ranging from **0.95% to 10.0%** (prior year period: **1.30% to 10.0%** per annum)[52](index=52&type=chunk) [7. Profit Before Income Tax](index=21&type=section&id=7.%20Profit%20Before%20Income%20Tax) This note lists the various expenses and income deducted or included in the calculation of profit before income tax, such as cost of properties sold, depreciation, expected credit loss provisions, net foreign exchange losses, and property inventory provisions Items for Profit Before Income Tax Calculation | Item | For the six months ended June 30, 2025 (RMB thousands) | For the six months ended June 30, 2024 (RMB thousands) | | :--- | :--- | :--- | | Cost of properties sold | 28,244,621 | 27,441,170 | | Depreciation: owned assets | 13,490 | 16,294 | | Depreciation: right-of-use assets | 57,732 | 36,766 | | Provision for/(reversal of) expected credit losses on loans to associates and joint ventures | 20,629 | (65,225) | | Reversal of expected credit losses on trade and other receivables | (4,646) | (29,753) | | Provision for expected credit losses on amounts due from non-controlling interests | 4,003 | 5,086 | | Net foreign exchange loss/(gain) | 9,728 | (2,837) | | Provision for property inventories and other contract costs | 392,815 | 284,937 | [8. Income Tax Expense](index=22&type=section&id=8.%20Income%20Tax%20Expense) This note details the Group's income tax expense, primarily comprising China corporate income tax, China land appreciation tax, and deferred tax. For the six months ended June 30, 2025, total income tax expense was RMB 750,096 thousand, an increase from the prior year. No Hong Kong profits tax provision was made, and China corporate income tax is calculated at a 25% rate Income Tax Expense Details | Income Tax Expense Item | For the six months ended June 30, 2025 (RMB thousands) | For the six months ended June 30, 2024 (RMB thousands) | | :--- | :--- | :--- | | China Corporate Income Tax ("CIT") — Current | 1,731,246 | 1,009,099 | | China Land Appreciation Tax ("LAT") | 100,665 | 160,112 | | Deferred tax | (1,081,815) | (597,995) | | **Total income tax expense** | **750,096** | **571,216** | - The Group did not generate any assessable profits in Hong Kong for the six months ended June 30, 2025 and 2024, thus no provision for Hong Kong profits tax was made[57](index=57&type=chunk) - China corporate income tax is provided at a rate of **25%**, and China land appreciation tax is calculated at progressive rates ranging from **30% to 60%**[57](index=57&type=chunk)[59](index=59&type=chunk) [9. Dividends](index=23&type=section&id=9.%20Dividends) This note states that the Board of Directors resolved not to declare an interim dividend for the current period, consistent with the prior year - The Board of Directors has resolved not to declare an interim dividend for the current period (prior year period: nil)[58](index=58&type=chunk)[63](index=63&type=chunk) [10. Earnings Per Share](index=24&type=section&id=10.%20Earnings%20Per%20Share) This note details the calculation methods and results for both basic and diluted earnings per share. As of June 30, 2025, basic earnings per share was RMB 48.09 cents, and diluted earnings per share was RMB 45.18 cents Basic Earnings Per Share Calculation | Indicator | For the six months ended June 30, 2025 (RMB thousands) | For the six months ended June 30, 2024 (RMB thousands) | | :--- | :--- | :--- | | Profit attributable to equity holders of the Company | 913,748 | 817,068 | | Weighted average number of ordinary shares in issue during the period (thousand shares) | 1,899,953 | 1,727,565 | | **Earnings per share (expressed in RMB cents per share)** | **48.09** | **47.30** | Diluted Earnings Per Share Calculation | Indicator | For the six months ended June 30, 2025 (RMB thousands) | For the six months ended June 30, 2024 (RMB thousands) | | :--- | :--- | :--- | | Profit attributable to equity holders of the Company for diluted EPS calculation | 910,394 | 813,813 | | Weighted average number of ordinary shares for diluted EPS calculation (thousand shares) | 2,014,875 | 1,894,991 | | **Earnings per share (expressed in RMB cents per share)** | **45.18** | **42.95** | - The restricted shares granted by the Company have a potential dilutive effect on earnings per share, which has been adjusted in the diluted earnings per share calculation[68](index=68&type=chunk)[69](index=69&type=chunk) [11. Investment Properties](index=26&type=section&id=11.%20Investment%20Properties) This note outlines the changes in the carrying amount of investment properties, including fair value changes and transfers from completed properties held for sale. As of June 30, 2025, the carrying amount of investment properties was RMB 3,016,927 thousand, with some properties pledged. The note also details the valuation process, methodology, and fair value hierarchy, with all investment properties classified as Level 3 Changes in Carrying Amount of Investment Properties | Change Item | As of June 30, 2025 (RMB thousands) | As of December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Carrying amount as of January 1 | 2,778,052 | 1,668,273 | | Fair value change of investment properties | (34,849) | (364,658) | | Transfer from completed properties held for sale | 273,724 | 1,469,572 | | **Carrying amount as of period-end** | **3,016,927** | **2,778,052** | - As of June 30, 2025, investment properties with a fair value of **RMB 623,000 thousand** were pledged to banks to secure the Group's bank borrowings[73](index=73&type=chunk)[74](index=74&type=chunk) - The fair value of investment properties is determined by independent professional qualified valuers using the direct capitalization approach or income approach, and is classified as Level 3 of the fair value hierarchy[78](index=78&type=chunk)[79](index=79&type=chunk)[83](index=83&type=chunk)[85](index=85&type=chunk)[86](index=86&type=chunk) [12. Other Financial Assets](index=32&type=section&id=12.%20Other%20Financial%20Assets) This note discloses the Group's other non-current financial assets, primarily unlisted equity securities measured at fair value through profit or loss. As of June 30, 2025, these assets amounted to RMB 107,877 thousand Other Financial Assets Details | Item | As of June 30, 2025 (RMB thousands) | As of December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Financial assets at fair value through profit or loss: Unlisted equity securities | 107,877 | 111,538 | [13. Properties Under Development, Other Inventories and Other Contract Costs](index=33&type=section&id=13.%20Properties%20Under%20Development%2C%20Other%20Inventories%20and%20Other%20Contract%20Costs) This note provides a detailed classification of properties under development, properties held for sale, other inventories, and other contract costs. As of June 30, 2025, properties under development and properties held for sale totaled RMB 263,501,675 thousand. Some properties under development are pledged, and capitalized contract costs primarily consist of sales commissions Properties Under Development, Other Inventories and Other Contract Costs Details | Item | As of June 30, 2025 (RMB thousands) | As of December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Properties under development | 243,923,464 | 223,028,034 | | Properties held for sale | 19,578,211 | 21,739,904 | | Other inventories | 207,958 | 235,345 | | Other contract costs | 2,483,833 | 2,026,697 | | **Total** | **266,193,466** | **247,029,980** | | Less: Inventory provision | (4,930,736) | (5,754,234) | - As of June 30, 2025, properties under development with a carrying amount of **RMB 23,733,157 thousand** were pledged to banks to secure the Group's bank borrowings[97](index=97&type=chunk) - Capitalized contract costs primarily represent incremental sales commissions paid to property agents, with **RMB 453,840 thousand** recognized in profit or loss during the period[98](index=98&type=chunk) [14. Trade and Other Receivables](index=34&type=section&id=14.%20Trade%20and%20Other%20Receivables) This note presents the composition of the Group's trade and other receivables, including amounts due from third parties, related parties, deposits, prepayments, and VAT receivables, net of loss allowances. As of June 30, 2025, total trade and other receivables amounted to RMB 17,081,217 thousand. The note also provides an aging analysis of trade receivables and changes in loss allowances Trade and Other Receivables Details | Item | As of June 30, 2025 (RMB thousands) | As of December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Trade receivables (net of loss allowance) | 3,026,920 | 3,232,006 | | Other receivables (net of loss allowance) | 14,054,297 | 12,903,720 | | **Total** | **17,081,217** | **16,135,726** | Aging Analysis of Trade Receivables (Net of Loss Allowance) | Aging | As of June 30, 2025 (RMB thousands) | As of December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | 0 to 30 days | 262,881 | 1,840,753 | | 31 to 90 days | 192,930 | 7,355 | | 91 to 180 days | 195,265 | 444,524 | | 181 to 365 days | 1,750,168 | 165,538 | | Over 1 year | 625,676 | 773,836 | | **Total** | **3,026,920** | **3,232,006** | - Loss allowance for trade receivables decreased by **RMB 10,205 thousand** during the period, while loss allowance for other receivables increased by **RMB 5,559 thousand**[102](index=102&type=chunk)[105](index=105&type=chunk) [15. Bank and Cash Balances](index=37&type=section&id=15.%20Bank%20and%20Cash%20Balances) This note presents the Group's bank and cash balances and restricted bank deposits. As of June 30, 2025, the total amounted to RMB 56,255,461 thousand. Most bank balances are denominated in RMB and held in China, subject to foreign exchange control regulations. Restricted bank deposits primarily serve as guarantee deposits for pre-sold properties under construction Bank and Cash Balances Details | Item | As of June 30, 2025 (RMB thousands) | As of December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Bank and cash balances | 53,294,875 | 54,245,647 | | Restricted bank deposits | 2,960,586 | 3,013,506 | | **Total** | **56,255,461** | **57,259,153** | - Bank balances of **RMB 56,049,923 thousand** are denominated in RMB and held in banks in China, where RMB is not freely convertible[108](index=108&type=chunk)[110](index=110&type=chunk) - Restricted bank deposits primarily represent guarantee deposits for pre-sold properties under construction, which can only be used to pay construction costs upon approval from relevant government authorities[109](index=109&type=chunk)[111](index=111&type=chunk) [16. Trade and Other Payables](index=38&type=section&id=16.%20Trade%20and%20Other%20Payables) This note provides a detailed classification of the Group's trade and other payables. As of June 30, 2025, trade payables amounted to RMB 25,887,266 thousand, and other payables totaled RMB 6,130,663 thousand, with a grand total of RMB 32,017,929 thousand. The note also includes an aging analysis of trade payables Trade and Other Payables Details | Item | As of June 30, 2025 (RMB thousands) | As of December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Trade payables | 25,887,266 | 25,851,482 | | Advances received and other payables | 165,233 | 108,085 | | Accrued interest | 28,923 | 28,586 | | Accrued salaries | 416,149 | 955,979 | | VAT payable | 373,918 | 938,856 | | Deposits received | 820,103 | 717,576 | | Accrued expenses | 2,220,834 | 2,111,069 | | Collections and payments on behalf of others | 877,267 | 934,285 | | Payables for restricted share incentive scheme | 882,169 | 1,084,739 | | Dividends payable | 346,067 | – | | **Total** | **32,017,929** | **32,730,657** | Aging Analysis of Trade Payables | Aging | As of June 30, 2025 (RMB thousands) | As of December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | 0 to 30 days | 12,093,181 | 16,515,253 | | 31 to 60 days | 3,786,806 | 1,997,491 | | 61 to 90 days | 1,162,549 | 1,138,791 | | Over 90 days | 8,844,730 | 6,199,947 | | **Total** | **25,887,266** | **25,851,482** | [17. Amounts Due from/(to) Related Companies/Non-controlling Interests/Indirect Holding Company Loans](index=40&type=section&id=17.%20Amounts%20Due%20from%2F(to)%20Related%20Companies%2FNon-controlling%20Interests%2FIndirect%20Holding%20Company%20Loans) This note details the Group's receivables from/payables to related parties and indirect holding company loans. As of June 30, 2025, net amounts due from non-controlling interests were RMB 52,684,641 thousand, amounts due to related companies were RMB 22,172,561 thousand, and indirect holding company loans were RMB 45,328,009 thousand. Some amounts are interest-bearing, and indirect holding company loans are unsecured Related Party Balances Details | Item | As of June 30, 2025 (RMB thousands) | As of December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Amounts due from non-controlling interests (net of loss allowance) | 52,684,641 | 48,685,189 | | Amounts due to related companies | 22,172,561 | 21,355,737 | | Amounts due to non-controlling interests | 7,833,977 | 6,996,648 | | Indirect holding company loans (non-current liabilities) | 45,328,009 | 50,752,538 | - Amounts due from non-controlling interests of **RMB 651,634 thousand** bear interest at annual rates ranging from **1.92% to 6.5%**; amounts due to non-controlling interests of **RMB 1,670,006 thousand** bear interest at annual rates ranging from **3.5% to 10%**[120](index=120&type=chunk)[123](index=123&type=chunk) - Indirect holding company loans are unsecured, bear interest at an effective annual rate of **4.06%** (December 31, 2024: **4.45%**), and are not repayable within one year[121](index=121&type=chunk)[124](index=124&type=chunk) - Loss allowance for amounts due from non-controlling interests increased by **RMB 4,003 thousand** to **RMB 52,737 thousand** during the period[127](index=127&type=chunk) [18. Interest-Bearing Borrowings](index=43&type=section&id=18.%20Interest-Bearing%20Borrowings) This note provides detailed information on the Group's interest-bearing borrowings, including secured and unsecured bank loans and their repayment terms. As of June 30, 2025, total bank loans amounted to RMB 41,111,718 thousand, mostly secured by properties under development and investment properties, with unsecured portions guaranteed by holding companies Interest-Bearing Borrowings Details | Borrowing Type | As of June 30, 2025 (RMB thousands) | As of December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Bank loans — Secured | 6,644,137 | 6,821,723 | | Bank loans — Unsecured | 34,467,581 | 26,925,174 | | **Total bank loans** | **41,111,718** | **33,746,897** | Bank Loan Repayment Schedule | Repayment Period | As of June 30, 2025 (RMB thousands) | As of December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Within one year or on demand | 8,100,151 | 6,124,502 | | In the second year | 12,136,868 | 11,201,871 | | In the third to fifth year | 20,593,008 | 16,127,149 | | After the fifth year | 281,691 | 293,375 | | **Total** | **41,111,718** | **33,746,897** | - Bank loans are secured by properties under development with a carrying amount of approximately **RMB 23,733,157 thousand** and investment properties with a fair value of approximately **RMB 623,000 thousand**[132](index=132&type=chunk)[134](index=134&type=chunk) - Unsecured borrowings are guaranteed by C&D Inc., C&D Real Estate, and certain non-controlling interests, with bank loans bearing interest at effective annual rates ranging from **0.95% to 3.05%**[135](index=135&type=chunk)[136](index=136&type=chunk) [19. Share Capital](index=45&type=section&id=19.%20Share%20Capital) This note describes the Company's authorized and issued share capital. As of June 30, 2025, the issued and fully paid share capital consisted of 2,017,177,631 ordinary shares of HKD 0.1 each, amounting to RMB 174,233 thousand Share Capital Details | Item | Number of Shares | Amount (RMB thousands) | | :--- | :--- | :--- | | Authorized share capital (ordinary shares of HKD 0.1 each) | 3,000,000,000 | 254,870 | | Issued and fully paid share capital (ordinary shares of HKD 0.1 each) | 2,017,177,631 | 174,233 | [20. Significant Related Party Transactions](index=46&type=section&id=20.%20Significant%20Related%20Party%20Transactions) This note discloses significant transactions between the Group and related parties, including interest expenses on indirect holding company loans, interest income/expenses on loans to associates and joint ventures, procurement of raw materials from indirect holding companies, and construction management fees received. It also lists key management personnel compensation Significant Related Party Transactions Details | Nature of Transaction | For the six months ended June 30, 2025 (RMB thousands) | For the six months ended June 30, 2024 (RMB thousands) | | :--- | :--- | :--- | | Interest expense on indirect holding company loans | 960,110 | 1,029,169 | | Interest income from loans to associates | (24,099) | (20,080) | | Interest expense on loans to associates | 39,260 | 16,077 | | Interest income from loans to joint ventures | (7,359) | (11,261) | | Construction management fees received from fellow subsidiaries | 9,897 | 11,032 | | Raw materials procured from indirect holding companies | 103,898 | 201,918 | - Indirect holding company C&D Real Estate agreed to provide loan financing of up to **RMB 60,000 million** for project development, at an annual interest rate of **4.06%** (prior year period: **4.45%**)[142](index=142&type=chunk) Key Management Personnel Compensation | Compensation Item | For the six months ended June 30, 2025 (RMB thousands) | For the six months ended June 30, 2024 (RMB thousands) | | :--- | :--- | :--- | | Basic salaries and allowances | 6,542 | 6,398 | | Contributions to retirement benefit schemes | 140 | 122 | | Share-based payments | 3,000 | 5,768 | | **Total** | **9,682** | **12,288** | [21. Events After the Reporting Period](index=48&type=section&id=21.%20Events%20After%20the%20Reporting%20Period) This note discloses two significant post-reporting period events: the company allotted and issued 158,376,501 ordinary shares on July 8, 2025, under a scrip dividend scheme, and issued 64,600,000 ordinary shares on August 5, 2025, under a placing and subscription agreement - On July 8, 2025, the Company allotted and issued **158,376,501** ordinary shares under a scrip dividend scheme[146](index=146&type=chunk)[148](index=148&type=chunk) - On August 5, 2025, the Company issued a total of **64,600,000** ordinary shares under a placing and subscription agreement dated July 22, 2025[147](index=147&type=chunk)[149](index=149&type=chunk) [Management Discussion and Analysis](index=49&type=section&id=Management%20Discussion%20and%20Analysis) This section provides management's discussion and analysis of the Group's financial performance, operational review, and future outlook, including market conditions and strategic initiatives [Market Review](index=49&type=section&id=Market%20Review) In the first half of 2025, the domestic and international economic situation was complex, and the real estate market was still in the process of stabilizing, with national new commercial housing sales decreasing by 5.5% year-on-year. Industry differentiation intensified, with demand for improved housing in core areas becoming mainstream, and customers demanding higher quality, intelligence, green features, and digitalization, shifting corporate competition towards products, brands, technology, and supply chains - In the first half of 2025, national new commercial housing sales reached **RMB 4,424.1 billion**, a year-on-year decrease of **5.5%**, marking the lowest level in nearly four years[150](index=150&type=chunk)[151](index=151&type=chunk) - The differentiation trend in the real estate industry became more pronounced, with demand for improved housing in core areas becoming the current mainstream, and customers demanding higher quality, location, functionality, environment, amenities, and services[150](index=150&type=chunk)[151](index=151&type=chunk) - Intelligent, green, and digital features have become industry development trends, and competition among real estate enterprises has shifted towards products, brands, technology, and supply chains[152](index=152&type=chunk) [Business Review](index=49&type=section&id=Business%20Review) The Group primarily engages in property development, real estate industry chain investment services, and emerging industry investments. During the period, total revenue was approximately RMB 34.16 billion, a year-on-year increase of 4.3%; gross profit was approximately RMB 4.40 billion, a year-on-year increase of 12.8%; and profit attributable to equity holders of the Company was approximately RMB 910 million, a year-on-year increase of 11.8% - The Group primarily engages in property development, real estate industry chain investment services, and emerging industry investments, with property development being the main source of revenue[154](index=154&type=chunk) Key Business Financial Data for the Period | Indicator | H1 2025 (RMB billions) | H1 2024 (RMB billions) | Y-o-Y Growth (%) | | :--- | :--- | :--- | :--- | | Revenue | 341.6 | 327.5 | 4.3% | | Gross profit | 44.0 | 39.0 | 12.8% | | Profit attributable to equity holders of the Company | 9.1 | 8.2 | 11.8% | [Property Development Business](index=50&type=section&id=Property%20Development%20Business) The Group's property development business revenue accounted for 94.1% of total revenue, reaching RMB 32.14 billion in the current period, a year-on-year increase. Despite a decrease in total GFA delivered, higher average selling prices in certain cities drove revenue growth. Contracted sales increased by 4.9% year-on-year to RMB 53.35 billion, but GFA attributable to shareholders from contracted sales decreased by 18.4%. As of June 30, 2025, land reserves available for sale totaled approximately 12.71 million square meters - Revenue from property development business reached approximately **RMB 32.14 billion**, an increase of approximately **RMB 1.13 billion** year-on-year, accounting for approximately **94.1%** of the Group's total revenue[157](index=157&type=chunk)[158](index=158&type=chunk) - Total gross floor area of properties delivered was approximately **1.901 million square meters**, a decrease of approximately **0.151 million square meters** from the prior year period, but property development revenue still increased due to higher average selling prices per square meter for properties delivered in certain cities[157](index=157&type=chunk)[158](index=158&type=chunk)[179](index=179&type=chunk) - The Group, together with its joint ventures and associates, achieved cumulative contracted sales attributable to the Company's shareholders of approximately **RMB 53.35 billion**, a year-on-year increase of approximately **4.9%**[163](index=163&type=chunk)[164](index=164&type=chunk) - Cumulative contracted sales GFA attributable to shareholders was approximately **2.008 million square meters**, a year-on-year decrease of approximately **18.4%**[163](index=163&type=chunk)[164](index=164&type=chunk) - As of June 30, 2025, the Group's land reserves available for sale in China amounted to approximately **12.71 million square meters**[169](index=169&type=chunk) [Financial Review](index=56&type=section&id=Financial%20Review) During the period, the Group's revenue grew by 4.3% to RMB 34.16 billion, with property development accounting for 94.08% and property management and other related services growing by 16.0%. Gross profit margin improved to 12.89%, mainly due to higher margins from certain delivered projects. Other income decreased due to lower bank interest. Total borrowing costs decreased due to a slight reduction in average financing interest rates. Fair value changes of investment properties recorded a loss. Administrative expenses increased due to higher property inventory provisions, while selling expenses decreased due to reduced sales-related staff costs. Profit before income tax increased by 12.3% to RMB 2.25 billion, and profit attributable to equity holders of the Company increased by 11.8% to RMB 910 million Revenue Segments and Proportions | Revenue Segment | For the six months ended June 30, 2025 (RMB thousands) | Proportion (%) | For the six months ended June 30, 2024 (RMB thousands) | Proportion (%) | | :--- | :--- | :--- | :--- | :--- | | Property development | 32,143,307 | 94.08 | 31,010,852 | 94.68 | | Property management and other related services | 2,021,357 | 5.92 | 1,742,451 | 5.32 | | **Total** | **34,164,664** | **100.00** | **32,753,303** | **100.00** | - Revenue from property management and other related services increased by **16.0%** to approximately **RMB 2.02 billion**, with GFA under management reaching approximately **83.3 million square meters**[177](index=177&type=chunk)[180](index=180&type=chunk) - Gross profit margin increased from **11.92%** in the prior year period to **12.89%** in the current period, mainly due to higher gross profit margins from certain delivered projects[181](index=181&type=chunk)[185](index=185&type=chunk) - Total borrowing costs (excluding the significant financing component of contract liabilities and finance costs on lease liabilities) decreased to approximately **RMB 1.50 billion**, mainly due to a slight decrease in the average financing interest rate[183](index=183&type=chunk)[188](index=188&type=chunk) - Administrative expenses increased by approximately **RMB 60 million** to approximately **RMB 990 million**, mainly due to increased provision for property inventories during the period[191](index=191&type=chunk)[196](index=196&type=chunk) - Selling expenses decreased by approximately **RMB 50 million** to approximately **RMB 1.39 billion**, mainly due to reduced sales-related staff costs during the period[192](index=192&type=chunk)[197](index=197&type=chunk) - Profit before income tax was approximately **RMB 2.25 billion**, an increase of approximately **RMB 240 million** from the prior year period[193](index=193&type=chunk)[198](index=198&type=chunk) - Profit attributable to equity holders of the Company was approximately **RMB 910 million**, a year-on-year increase of **11.8%**[195](index=195&type=chunk)[200](index=200&type=chunk) [Liquidity and Financial Resources](index=59&type=section&id=Liquidity%20and%20Financial%20Resources) The Group's liquidity position is well-managed, with bank and cash balances of approximately RMB 56.26 billion as of June 30, 2025. Both total assets and net assets increased, with working capital reaching RMB 147.60 billion. The net debt-to-equity ratio decreased to 33.37%, mainly due to increased contributions from non-controlling interests. Of the total borrowings, approximately RMB 13.63 billion is repayable within one year - As of June 30, 2025, the Group's bank and cash balances were approximately **RMB 56.26 billion** (December 31, 2024: approximately **RMB 57.26 billion**)[202](index=202&type=chunk)[204](index=204&type=chunk) - Total assets were approximately **RMB 443.93 billion**, and net assets (after deducting non-controlling interests) were approximately **RMB 38.51 billion**[202](index=202&type=chunk)[204](index=204&type=chunk) - Working capital reached approximately **RMB 147.60 billion**[202](index=202&type=chunk)[204](index=204&type=chunk) - The net debt-to-equity ratio was approximately **33.37%** (December 31, 2024: approximately **31.78%**), and the gearing ratio decreased to approximately **85.9%** (December 31, 2024: approximately **87.6%**), mainly due to increased contributions from non-controlling interests[202](index=202&type=chunk)[204](index=204&type=chunk)[207](index=207&type=chunk)[209](index=209&type=chunk) - Of the total borrowings, approximately **RMB 13.63 billion** is repayable within one year, and approximately **RMB 78.06 billion** is repayable after one year but within five years[210](index=210&type=chunk) [Financial Guarantee Contracts](index=61&type=section&id=Financial%20Guarantee%20Contracts) The Group's outstanding balance of bank financing guarantees provided to property unit purchasers significantly decreased, mainly because guarantees were no longer provided for mortgage loans of some newly sold property projects during the period - As of June 30, 2025, the outstanding balance of bank financing guarantees provided by the Group to property unit purchasers was approximately **RMB 21.76 billion** (December 31, 2024: approximately **RMB 43.32 billion**)[212](index=212&type=chunk)[216](index=216&type=chunk) - The decrease in guarantees was mainly due to the Group no longer providing guarantees for mortgage loans of certain newly sold property projects during the period[212](index=212&type=chunk)[216](index=216&type=chunk) [Capital Commitments](index=61&type=section&id=Capital%20Commitments) The Group's capital commitments increased to RMB 66.71 billion, primarily due to an increase in contracted but unprovided properties under development - As of June 30, 2025, the outstanding balance of capital commitments was approximately **RMB 66.71 billion** (December 31, 2024: approximately **RMB 59.97 billion**)[213](index=213&type=chunk)[217](index=217&type=chunk) - The increase was due to an increase in contracted but unprovided properties under development compared to 2024 during the period[213](index=213&type=chunk)[217](index=217&type=chunk) [Pledged Assets](index=61&type=section&id=Pledged%20Assets) The Group's bank loans are secured by investment properties with a fair value of approximately RMB 623 million and properties under development with a carrying amount of approximately RMB 23.73 billion - As of June 30, 2025, the Group's bank loans are secured by legal charges over investment properties with a fair value of approximately **RMB 623 million** and properties under development with a carrying amount of approximately **RMB 23.73 billion**[214](index=214&type=chunk)[218](index=218&type=chunk) [Capital Structure](index=61&type=section&id=Capital%20Structure) As of June 30, 2025, the Company's issued share capital consisted of 2,017,177,631 ordinary shares of HKD 0.1 each - As of June 30, 2025, the Company's issued share capital was **HKD 201,717,763.1**, divided into **2,017,177,631** ordinary shares of **HKD 0.1** each[215](index=215&type=chunk)[219](index=219&type=chunk) [Foreign Currency Risk](index=62&type=section&id=Foreign%20Currency%20Risk) The Group's operations are primarily conducted in China, with revenues and expenses mainly denominated in RMB, resulting in limited foreign exchange risk. Except for bank deposits denominated in foreign currencies (primarily HKD), the Group has no significant foreign exchange risk and did not use any financial instruments for hedging during the period - The Group's business operations are primarily conducted in China, with its revenues and expenses mainly denominated in **RMB**[221](index=221&type=chunk)[225](index=225&type=chunk) - Except for bank deposits denominated in foreign currencies (primarily **HKD**), the Group's operations have no significant foreign exchange risk, and no financial instruments were used for hedging during the period[221](index=221&type=chunk)[225](index=225&type=chunk) [Contingent Liabilities](index=62&type=section&id=Contingent%20Liabilities) As of June 30, 2025, the Group had no significant contingent liabilities - As of June 30, 2025, the Group had no significant contingent liabilities (December 31, 2024: nil)[222](index=222&type=chunk)[226](index=226&type=chunk) [Significant Investments, Major Acquisitions and Disposals of Subsidiaries, Joint Ventures and Associates](index=62&type=section&id=Significant%20Investments%2C%20Major%20Acquisitions%20and%20Disposals%20of%20Subsidiaries%2C%20Joint%20Ventures%20and%20Associates) During the period, the Group held no significant investments or securities investments, nor did it undertake any major acquisitions or disposals of subsidiaries, joint ventures, and associates. As of the report date, the company also had no related future plans - During the period, the Group did not hold any significant investments or major securities investments as part of its asset portfolio, nor did it undertake any major acquisitions or disposals of subsidiaries, joint ventures, and associates[223](index=223&type=chunk)[227](index=227&type=chunk) - As of the date of this report, the Company has no future plans regarding any significant investments or capital assets[223](index=223&type=chunk)[227](index=227&type=chunk) [Events After Reporting Period](index=62&type=section&id=Events%20After%20Reporting%20Period) This section refers to details of significant events affecting the Group after the reporting period, as disclosed in Note 20 of this report - Details of significant events affecting the Group after June 30, 2025, are set out in Note 20 of this report[224](index=224&type=chunk)[228](index=228&type=chunk) [Employees and Remuneration Policy](index=63&type=section&id=Employees%20and%20Remuneration%20Policy) As of June 30, 2025, the Group employed approximately 22.4 thousand full-time employees, with total staff costs of approximately RMB 1.85 billion. The company regularly reviews its remuneration policy, provides year-end bonuses, and has adopted a restricted share incentive scheme and an online learning platform to attract, retain, and develop employees - As of June 30, 2025, the Group employed approximately **22.4 thousand** full-time employees (June 30, 2024: approximately **20.9 thousand** employees)[229](index=229&type=chunk)[231](index=231&type=chunk) - During the period, the Group's total staff costs (including directors' emoluments and share-based payments) were approximately **RMB 1.85 billion** (prior year period: approximately **RMB 1.95 billion**)[229](index=229&type=chunk)[231](index=231&type=chunk) - The Group has adopted a restricted share incentive scheme and established an online learning platform, offering various training courses to enhance employees' skills and capabilities[232](index=232&type=chunk) [Principal Risks and Uncertainties](index=63&type=section&id=Principal%20Risks%20and%20Uncertainties) The China real estate market is influenced by multiple factors, including social, political, economic, legal environments, and government policies. The Group manages these risks by implementing differentiated investment and sales strategies, cultivating multiple projects in various regional markets to reduce reliance on a single market - The China real estate market is affected by multiple factors, including changes in social, political, economic, and legal environments, as well as the implementation of government policies related to fiscal, economic, financial, industrial, and environmental aspects[230](index=230&type=chunk)[234](index=234&type=chunk) - The Group implements differentiated investment and sales strategies based on market conditions, cultivating multiple projects in various regional markets to reduce reliance on a single market[230](index=230&type=chunk)[234](index=234&type=chunk) [Outlook and Prospects](index=64&type=section&id=Outlook%20and%20Prospects) Facing intensified market differentiation and a shift in industry competition towards quality and value in 2025, the company will uphold asset health, focusing on "stable scale and stable profit." In the second half, it will accelerate inventory destocking in sales, prudently focus on core areas in investment, innovate R&D to lead quality upgrades in products, and integrate resources to enhance operational efficiency in the supply chain, aiming for healthy and sustainable development - In 2025, market differentiation continues to intensify, and industry competition has shifted from scale competition to a comprehensive contest of quality and value[236](index=236&type=chunk)[237](index=237&type=chunk) - The company will adhere to the working principle of 'stable scale and stable profit,' focusing on strengthening execution in four key areas: sales, investment, products, and supply chain[238](index=238&type=chunk) - Looking ahead, the real estate industry has entered the 'quality living era,' and the company will focus on 'better living' to create a value loop of 'good products, good services, and good life,' striving for healthy and sustainable development through refined management and continuous innovation[250](index=250&type=chunk) [Sales End: Seize Opportunities, Accelerate Inventory Destocking, Enhance Sales Quality](index=64&type=section&id=Sales%20End%3A%20Seize%20Opportunities%2C%20Accelerate%20Inventory%20Destocking%2C%20Enhance%20Sales%20Quality) This sub-section outlines strategies to improve sales quality, focus on core cities, and accelerate inventory destocking through various initiatives - The company will strive to enhance sales quality, focus on in-depth development in core cities, and increase market share[238](index=238&type=chunk) - Actively capture policy and market opportunities, timely increase prices for eligible projects, and fully ensure sales and destocking for new project launches[238](index=238&type=chunk)[239](index=239&type=chunk) - For existing projects, the Group will strengthen management control, promote various strategies such as 'rejuvenating old projects,' accelerate destocking, and expedite cash recovery[239](index=239&type=chunk) [Investment End: Prudent Investment, Focus on Core Areas, Ensure Precise Investment](index=65&type=section&id=Investment%20End%3A%20Prudent%20Investment%2C%20Focus%20on%20Core%20Areas%2C%20Ensure%20Precise%20Investment) This sub-section details the investment strategy, emphasizing cautious investment, focusing on core regions, and ensuring precise investment decisions - Continuously increase in-depth research on the market and various regions, closely monitor policy directions and market changes, and ensure precise investment[240](index=240&type=chunk)[241](index=241&type=chunk) - Investment priorities include liquidity, destocking cycle, and price risk, while also considering profit margin requirements to enhance inventory liquidity[242](index=242&type=chunk) - Continue to enhance diversified investment capabilities, supplementing high-quality projects in core cities through urban renewal, asset packages, and other expansion methods and channels[242](index=242&type=chunk) [Product End: Innovative R&D, Promote Lighthouse Project Implementation, Lead Quality Upgrades](index=66&type=section&id=Product%20End%3A%20Innovative%20R%26D%2C%20Promote%20Lighthouse%20Project%20Implementation%2C%20Lead%20Quality%20Upgrades) This sub-section focuses on product strategy, including innovative R&D, implementing "lighthouse" projects, and leading quality upgrades - The company has developed and launched four product series: 'Jin, Xiu, Hua, Zhang,' and will continue to increase investment in R&D and new technologies to maintain product leadership and differentiation[245](index=245&type=chunk) - Focus on implementing high-quality 'lighthouse' projects, ensure the achievement of expected goals, and continuously strengthen production quality control to ensure timely and high-quality delivery, enhancing brand power[246](index=246&type=chunk) [Supply Chain End: Integrate Resources, Strengthen System Construction, Enhance Operational Efficiency](index=67&type=section&id=Supply%20Chain%20End%3A%20Integrate%20Resources%2C%20Strengthen%20System%20Construction%2C%20Enhance%20Operational%20Efficiency) This sub-section outlines strategies for the supply chain, including resource integration, strengthening system construction, and enhancing operational efficiency - The company will continue to accelerate the construction of its centralized procurement platform and construction system, optimize costs, improve operational efficiency, and enhance the company's core competitiveness in the supply chain[248](index=248&type=chunk) - Strengthen control over key nodes across the entire production and supply chain, including promoting modularization and standardization in the design phase, strengthening research and application of new materials, and optimizing supplier management[249](index=249&type=chunk) [Other Information](index=68&type=section&id=Other%20Information) This section provides additional disclosures, including information on directors' and major shareholders' interests, restricted share incentive schemes, and corporate governance practices [Additional Disclosures](index=68&type=section&id=Additional%20Disclosures) This chapter discloses two additional matters: some domestic lease agreements remain unregistered due to merchants' lack of cooperation, and a discrepancy in total GFA for the Wanguo Plaza property ownership certificate, with a new application pending and expected to take longer than usual - As of June 30, 2025, **92** lease agreements remain unregistered because merchants have not actively assisted the company with registration[252](index=252&type=chunk)[256](index=256&type=chunk) - The property ownership certificate for Wanguo Plaza has an uncovered discrepancy of approximately **770 square meters** in total GFA, and a new property ownership certificate is still being applied for, with processing expected to take longer than usual[254](index=254&type=chunk)[258](index=258&type=chunk) [Directors' and Chief Executive's Interests and Short Positions in the Shares, Underlying Shares and Debentures of the Company and its Associated Corporations](index=69&type=section&id=Directors'%20and%20Chief%20Executive's%20Interests%20and%20Short%20Positions%20in%20the%20Shares%2C%20Underlying%20Shares%20and%20Debentures%20of%20the%20Company%20and%20its%20Associated%20Corporations) This chapter details the long positions held by directors and the chief executive in the shares of the Company and its associated corporation (C&D Property) as of June 30, 2025, primarily through discretionary trusts and restricted share incentive schemes Directors' Long Positions in the Company's Shares | Director's Name | Capacity/Nature of Interest | Number of Shares Held | Approximate Equity Percentage (%) | | :--- | :--- | :--- | :--- | | Ms. Zhao Chengmin | Founder of a discretionary trust | 33,589,257 | 1.67% | | Mr. Lin Weiguo | Interest in a controlled corporation | 33,589,257 | 1.67% | | Mr. Tian Meitan | Beneficiary of a trust | 345,197 | 0.02% | | Mr. Xu Yixuan | Interest in a controlled corporation | 33,589,257 | 1.67% | - Several directors, as grantees under the 2021, 2022, and 2023 Restricted Share Incentive Schemes, hold shares subject to vesting[265](index=265&type=chunk) Directors' Long Positions in C&D Property Shares | Director's Name | Name of Associated Corporation | Capacity/Nature of Interest | Number of Shares Held | Approximate Equity Percentage (%) | | :--- | :--- | :--- | :--- | | Ms. Zhao Chengmin | C&D Property | Founder of a discretionary trust | 54,287,090 | 3.85% | | Mr. Lin Weiguo | C&D Property | Interest in a controlled corporation | 54,287,090 | 3.85% | | Mr. Tian Meitan | C&D Property | Beneficiary of a trust | 557,908 | 0.04% | | Mr. Xu Yixuan | C&D Property | Interest in a controlled corporation | 54,287,090 | 3.85% | [Major Shareholders' Interests and Short Positions in the Shares and Underlying Shares of the Company](index=73&type=section&id=Major%20Shareholders'%20Interests%20and%20Short%20Positions%20in%20the%20Shares%20and%20Underlying%20Shares%20of%20the%20Company) This chapter lists major shareholders holding 5% or more interests in the Company's shares and underlying shares as of June 30, 2025, including Yinen and its holding companies, OceanLink Partners Fund, LP and its affiliates, and BOC International Trust (Hong Kong) Company Limited Major Shareholders' Long Positions in the Company's Shares | Major Shareholder Name | Capacity/Nature of Interest | Number of Shares Held | Approximate Equity Percentage (%) | | :--- | :--- | :--- | :--- | | Yinen | Beneficial owner | 1,142,467,712 | 56.64% | | Yihong International Limited | Interest in a controlled corporation | 1,142,467,712 | 56.64% | | C&D Real Estate | Interest in a controlled corporation | 1,142,467,712 | 56.64% | | Xiamen C&D Inc. | Interest in a controlled corporation | 1,142,467,712 | 56.64% | | Xiamen C&D | Interest in a controlled corporation | 1,142,467,712 | 56.64% | | OceanLink Partners Fund, LP | Beneficial owner | 154,643,412 | 7.67% | | Mr. Richard Li | Interest in a controlled corporation | 219,123,701 | 10.86% | | OLP Capital Management Limited | Investment manager | 219,123,701 | 10.86% | | RCWL Inc. | Interest in a controlled corporation | 219,123,701 | 10.86% | | Mr. Shen Di Fan | Interest in a controlled corporation | 219,123,701 | 10.86% | | BOC International Trust (Hong Kong) Company Limited | Trustee | 105,100,000 | 5.21% | - Yinen is a wholly-owned subsidiary of Yihong, which is a wholly-owned subsidiary of C&D Real Estate, ultimately controlled by Xiamen C&D[277](index=277&type=chunk) - BOC International Trust (Hong Kong) Company Limited holds relevant shares as trustee for the 2021, 2022, and 2023 Restricted Share Incentive Schemes[277](index=277&type=chunk) [Restricted Share Incentive Schemes](index=74&type=section&id=Restricted%20Share%20Incentive%20Schemes) This chapter outlines the implementation of the 2021, 2022, and 2023 Restricted Share Incentive Schemes, with all available shares fully granted. As of June 30, 2025, a total of 114,922,000 unvested restricted shares remained, of which 2,006,000 shares lapsed due to grantees' resignation or retirement - All shares available for grant under the 2021, 2022, and 2023 Incentive Schemes have been fully granted, and the Company did not adopt any new share schemes or grant any share options or awards during the period[276](index=276&type=chunk) Details of Restricted Share Movements | Category of Grantees | Number of Unvested Restricted Shares as of January 1, 2025 | Vested during the period | Lapsed during the period | Number of Unvested Restricted Shares as of June 30, 2025 | | :--- | :--- | :--- | :--- | :--- | | Directors | 2,894,400 | 554,400 | 0 | 2,340,000 | | Other employees of the Group | 137,287,200 | 22,699,200 | 2,006,000 | 112,582,000 | | **Total** | **140,181,600** | **23,253,600** | **2,006,000** | **114,922,000** | - During the period, **2,006,000** restricted shares lapsed due to grantees' resignation or retirement[277](index=277&type=chunk) [Changes in Directors' Information Required Under Rule 13.51B(1) of the Listing Rules](index=78&type=section&id=Changes%20in%20Directors'%20Information%20Required%20Under%20Rule%2013.51B(1)%20of%20the%20Listing%20Rules) This chapter discloses changes in the Board of Directors since May 13, 2025, including the resignations of Mr. Huang Wenzhou and Mr. Zheng Yongda as Non-executive Directors, and the appointment of Mr. Xu Xiaoxi as a Non-executive Director. It also updates other directorships for some directors - Effective May 13, 2025, Mr. Huang Wenzhou and Mr. Zheng Yongda resigned as Non-executive Directors, and Mr. Xu Xiaoxi was appointed as a Non-executive Director[285](index=285&type=chunk) - Mr. Xu Xiaoxi resigned as a director of Xiamen ITG Group Corp., Ltd. in May 2025 and was appointed as a director of Xiamen C&D Inc. from June 2025[286](index=286&type=chunk) - Ms. Ye Yanliu was appointed as a Non-executive Director of Red Star Macalline Group Corporation Ltd. from July 2025[287](index=287&type=chunk) [Retirement Benefit Schemes/Pension Schemes](index=79&type=section&id=Retirement%20Benefit%20Schemes%2FPension%20Schemes) The Group provides defined contribution retirement benefit schemes for employees, with related costs deducted in the profit or loss statement, representing contributions payable to retirement benefit schemes managed by local social security authorities during the period - Retirement benefits for employees are provided through defined contribution schemes[289](index=289&type=chunk)[294](index=294&type=chunk) - Retirement benefit costs deducted from the profit or loss statement represent contributions payable to retirement benefit schemes managed by various local social security authorities in different jurisdictions in accordance with government regulations during the period[289](index=289&type=chunk)[294](index=294&type=chunk) [Other Information](index=79&type=section&id=Other%20Information) This chapter confirms that there have been no significant changes in the Group's business development, financial position, and future prospects since t

Core Viewpoint - The real estate industry is experiencing a divergence in performance among different types of companies, with state-owned enterprises showing resilience while private and mixed-ownership firms face significant losses. The industry is expected to enter a bottoming phase after a rapid decline in gross profit margins [1][2]. Performance Analysis - In the first half of 2025, the 50 sample real estate companies reported total revenue of 1,204.9 billion yuan, a year-on-year decrease of 16.1%. State-owned enterprises saw a revenue increase of 4.9%, while private and mixed-ownership firms experienced declines of 32.1% and 26.1%, respectively [1]. - The net profit attributable to shareholders was a loss of 87 billion yuan, representing a 39% increase in losses year-on-year. State-owned enterprises maintained positive profitability, while private firms reported losses of 97.7 billion yuan and mixed-ownership firms lost 9.8 billion yuan [1]. - The gross profit margin stood at 11.68%, down 0.29 percentage points from the full year of 2024, indicating that the industry may have exited the rapid decline phase and is now stabilizing [1]. - The selling and administrative expense ratio was 4.89%, a decrease of 0.62 percentage points compared to 2024, reflecting ongoing cost reduction efforts [1]. Sales and Investment Trends - In the first half of 2025, the total sales amount for the top 100 real estate companies was 1,782 billion yuan, down 11% year-on-year. However, leading improvement-focused firms like China Jinmao and CIFI Holdings showed positive growth [2]. - The number of private enterprises in the top 30 decreased from 21 in 2020 to 7 in the first half of 2025, indicating a consolidation trend [2]. - Real estate companies are adopting a sales-driven investment strategy, focusing on core cities and regions, with land acquisition intensity showing signs of recovery. The land acquisition intensity for 14 typical firms from 2021 to the first half of 2025 averaged between 0.21 and 0.47, with some firms exceeding 0.6 [2]. Asset Management - In the first half of 2025, 16 typical real estate companies reported total assets of 10,187.5 billion yuan, a decrease of 2.9% from the end of 2024. The interest-bearing debt increased by 0.4% to 2,714.6 billion yuan, while the asset-liability ratio decreased by 0.8 percentage points to 71.5% [3]. - Short-term debt remains a concern, with 30.4% of total interest-bearing debt being short-term, down 1.8 percentage points from the end of 2024 [3]. - The average financing cost was 3.63%, a decrease of 30 basis points compared to the full year of 2024, with several firms achieving the lowest financing costs in the industry [3]. - Improvement-focused firms demonstrated higher asset liquidity, with companies like CIFI Holdings and China Jinmao having less than 15% of their total inventory as completed stock [3]. Investment Recommendations - The current real estate market shows a divergence between new and second-hand housing, with quality new projects in core cities performing well. Companies are encouraged to actively reduce old inventory and enhance liquidity through quality land reserves [4]. - In the context of a transitioning housing market, competition among firms will focus on asset quality, product quality, service, and brand influence. Recommendations include leading firms that continue to acquire land in core urban areas, such as Greentown China, CIFI Holdings, and China Overseas Land & Investment [4].

Group 1 - New housing prices in first-tier cities have seen a reduction in the rate of decline both month-on-month and year-on-year, with overall new housing prices in 70 cities showing a year-on-year decline narrowing to 3.0% [1][10][24] - The number of cities with rising new housing prices month-on-month increased to 9 in August, compared to 6 in July, while the number of cities with year-on-year price increases remained at 5 [1][14][24] - In August, Shanghai led the new housing price increases with a month-on-month rise of 0.4% and a year-on-year increase of 5.9%, making it the only first-tier city to achieve growth in both metrics [3][20][23] Group 2 - Second-hand housing prices in 70 cities experienced a month-on-month decline of 0.6%, with the rate of decline expanding by 0.1 percentage points [2][15][19] - Year-on-year, second-hand housing prices decreased by 5.5%, with the decline narrowing by 0.4 percentage points, while first-tier cities showed mixed results in their year-on-year performance [2][15][19] - In August, only one city, Changchun, saw a month-on-month increase in second-hand housing prices, while all cities experienced year-on-year declines [2][19][20] Group 3 - The overall real estate market in China is moving towards stabilization, with expectations for continued small fluctuations in housing prices amid supportive fiscal and monetary policies [4][24] - Recommended investment targets include strong credit real estate companies that can cater to improving customer demand, as well as firms benefiting from both residential and commercial real estate recovery [4][24]

Investment Rating - The industry investment rating is "Outperform the Market" [25] Core Viewpoints - In August 2025, new home prices in 70 major cities decreased by 0.3% month-on-month, while second-hand home prices fell by 0.6%. The decline in second-hand home prices has expanded compared to July [6][9] - The number of cities with declining new home prices was 57, with an average decline of 0.41%, while 69 cities saw a drop in second-hand home prices, with an average decline of 0.59% [6][12] - First-tier cities experienced a narrowing decline in new home prices, down 0.1%, while second-hand home prices remained stable, with a decline of 1.0% [6][14] - The report emphasizes the need for the real estate market to stabilize and recover from the current downward pressure on prices, with a focus on policy adjustments in major cities to boost market sentiment [6][18] Summary by Sections Price Trends - New home prices in first-tier cities decreased by 0.1%, while second-hand home prices fell by 1.0% in August [6][14] - Second-tier cities saw new home prices decline by 0.3% and second-hand prices drop by 0.6% [6][14] - Third-tier cities experienced a 0.4% decline in new home prices, while second-hand prices remained stable [6][14] Market Dynamics - The report highlights that the current price declines are the largest since November 2024, indicating significant downward pressure on the market [6][18] - Policy adjustments in cities like Beijing, Shanghai, and Shenzhen aim to improve market conditions, although the sustainability of these effects remains uncertain [6][18] Investment Opportunities - The report suggests focusing on four main lines for investment: 1. Companies with stable fundamentals and high market share in core cities, such as Binjiang Group and China Resources Land [6] 2. Smaller companies that have made significant breakthroughs in sales and land acquisition since 2024, like Poly Real Estate Group [6] 3. Companies with operational or strategic changes, such as New Town Holdings and China Vanke [6] 4. Real estate brokerage firms benefiting from the recovery in the second-hand market, including Beike and Wo Ai Wo Jia [6]

Investment Rating - The report maintains a "Positive" rating for the real estate sector [2][3][34] Core Viewpoints - The investment side remains weak, with a year-on-year decline of 12.9% in investment from January to August 2025, and a more significant drop of 19.5% in August alone [1][20] - The sales side is also experiencing a downturn, with a cumulative sales area decrease of 4.7% year-on-year from January to August 2025, and a sharper decline of 10.6% in August [21][34] - Funding sources are showing a narrowing decline, with total funding sources down 8.0% year-on-year from January to August 2025, but domestic loans have turned positive [35] Investment Analysis Summary Investment Side - From January to August 2025, total real estate development investment reached 603.09 billion yuan, down 12.9% year-on-year, with August alone seeing a 19.5% decline [3][20] - New construction area decreased by 19.5% year-on-year, while the completion area fell by 17.0% [20][21] - The report predicts a continued weak investment environment, with forecasts of a 11.0% decline in investment, 15.1% in new construction, and 20.0% in completions for 2025 [20] Sales Side - Cumulative sales area from January to August 2025 was 570 million square meters, down 4.7% year-on-year, with a 10.6% drop in August [21][34] - The total sales amount for the same period was 5.5 trillion yuan, reflecting a 7.3% decrease year-on-year, with August sales amounting to 544.9 billion yuan, down 14.0% [21][34] - The average selling price of commercial housing decreased by 2.6% year-on-year, with a slight increase in August compared to July [33][34] Funding Side - Total funding sources for real estate development enterprises amounted to 6.4 trillion yuan from January to August 2025, down 8.0% year-on-year [35] - Domestic loans showed a year-on-year increase of 0.2%, with August seeing a 1.1% rise [35] - The report indicates that while funding remains slightly tight, it is expected to improve gradually due to recent policy relaxations [35]

Investment Rating - The investment rating for the real estate industry is "Positive" (maintained) [5][6][57] Core Viewpoints - Since September 2024, the central government has emphasized "stabilizing the real estate market and stock market," which is crucial for boosting social expectations and facilitating domestic demand circulation [5][6] - The report suggests that high-quality residential properties may experience a development wave due to policy guidance and changes in supply-demand structure [5][6] Market Performance - The Shanghai Composite Index fell by 1.2%, the Shenzhen Component Index decreased by 0.8%, while the ChiNext Index rose by 2.4% during the week [9] - The real estate sector (Shenwan) declined by 1.5% [9] - Notable stock performances included Shoukai Co. (+32.0%) and Ningbo Fuda (+12.7%), while *ST Nanzhi fell by 22.6% [9] Data Tracking New Housing Transactions - In the week of August 30 to September 5, 2025, 42 key cities saw new housing transactions totaling 1.7 million square meters, a decrease of 15.3% week-on-week and 9.4% year-on-year [15] - For August 2025, the total new housing transactions in these cities reached 7.3 million square meters, down 4.1% month-on-month and 18.8% year-on-year [18] Second-Hand Housing Transactions - In the same week, 21 key cities recorded second-hand housing transactions of 171,000 square meters, a decrease of 9.1% week-on-week but an increase of 10.2% year-on-year [29] - For August 2025, total second-hand housing transactions in these cities were 793,000 square meters, down 7.2% month-on-month but up 0.9% year-on-year [34] Industry News - The Ministry of Housing and Urban-Rural Development held a meeting emphasizing high-level legislation to promote high-quality development in housing and urban construction [45] - Shanghai initiated a new round of adjustments to existing mortgage rates, allowing second-home buyers to apply for a rate reduction to the first-home level [45] - In Shenzhen, policies were optimized to lower purchasing thresholds and mortgage costs for residents and enterprises [45] Company Announcements - In August 2025, major real estate companies reported varying sales figures: China Overseas Development at 18.33 billion yuan (down 0.7% year-on-year), and Greentown China at 10.6 billion yuan (up 27.7% year-on-year) [48] - Poly Developments recently acquired two projects in Lanzhou and Sanya, with a total payment of 1.612 billion yuan [48]

Investment Rating - The report maintains a "Positive" rating for the real estate and property management sectors [4][5]. Core Insights - The report highlights that the broad housing demand in China has bottomed out, but the price and volume have not entered a positive cycle as expected. The real estate industry faces challenges from weakened household balance sheets and policy constraints requiring high-quality development without overall leverage [4][5][6]. - The "Good House" policy is seen as a potential breakthrough strategy that could lead to a fivefold positive resonance in core cities, gradually achieving a recovery driven by structural improvements [4][5][6]. Summary by Sections 1. Industry Status: Challenges in Real Estate Fundamentals and Policy Constraints - Broad housing demand is estimated to have bottomed out, with total transactions stabilizing around 1.4 billion square meters [15][22]. - New home sales have decreased from 1.57 billion square meters in 2021 to an estimated 0.81 billion square meters in 2024, a cumulative decline of 48%, while second-hand home sales have increased by 64% during the same period [15][22]. - The key issue in the real estate sector is not demand but purchasing power, with a trend of consumption downgrade evident in the market [22][31]. 2. Breakthrough Strategy: "Good House" Policy Leading to Fivefold Positive Resonance - The "Good House" policy aims to create new products and markets, enhancing the price system under conditions of supply scarcity and relatively abundant demand [4][6]. - The report identifies five positive resonances: policy strength of "Good House," urban renewal, housing consumption upgrade, wealth reallocation under capital controls, and stock market strength [4][6]. - Potential benefits include expected further reductions in mortgage rates and loosening of purchase restrictions, which could drive improvements in core cities [4][6]. 3. Core Cities: Hong Kong Has Reversed, Shanghai and Other Core Cities Nearing Bottom - Hong Kong's real estate market has experienced a turnaround due to four positive factors, including talent policies and stock market gains [4][6]. - Other core cities like Shanghai, Beijing, and Shenzhen are also showing signs of improvement, with Shanghai expected to be the next city to see a bottoming out [4][6]. 4. Investment Analysis Opinion: "Good House" as a Breakthrough Strategy - The report emphasizes that the "Good House" policy could lead to a structural recovery in the real estate market, benefiting quality real estate companies positioned in core cities [4][5][6]. - Recommended companies include those with strong product capabilities and undervalued recovery potential, as well as second-hand housing intermediaries and property management firms [4][5].

Core Viewpoint - Morgan Stanley has issued a report giving CIFI Holdings (01908) an "Overweight" rating with a target price of HKD 23.51, indicating confidence in the company's growth potential and profitability recovery [1] Group 1: Project Launch and Sales Expectations - CIFI Holdings launched its flagship project in Yangpu, Shanghai, in the fourth week of this month, with expectations that the initial sales rate will exceed 90% and net profit margin will surpass 10% [1] - The potential success of this project is expected to further validate the company's strong sales performance amid significant profit margin recovery [1] Group 2: Dividend and Stock Price Projections - The report anticipates a visibility of a 7% to 9% dividend yield based on the company's performance [1] - It is projected that the stock price could increase by 5% to 10% following the sales results, driven by investor confidence in the gradual recovery of the company's gross margin to high double digits by 2027 [1] Group 3: Earnings Growth Forecast - The forecast includes an annual compound growth rate of over 15% in earnings from 2024 to 2027, with a projected price-to-earnings ratio of 7 to 8 times [1] - The probability of these projections materializing is estimated to be over 70% [1]

Core Viewpoint - Morgan Stanley has issued a report maintaining an "Overweight" rating for Jianfa International Group (01908) with a target price of HKD 23.51, highlighting the company's strong sales performance and potential for profit margin recovery [1] Group 1: Company Performance - Jianfa International launched its flagship project in Yangpu, Shanghai, in the fourth week of this month, with expected initial unit sales rate exceeding 90% and a net profit margin over 10% [1] - The potential success of this project is anticipated to further validate the company's ongoing strong sales performance amid significant profit margin recovery [1] Group 2: Financial Projections - Morgan Stanley expects the stock price to rise by 5% to 10% following the sales results, driven by investor confidence in the gradual recovery of the company's gross margin to high double digits by 2027 [1] - The forecasted compound annual growth rate (CAGR) for earnings from 2024 to 2027 is over 15%, with a projected price-to-earnings (P/E) ratio of 7 to 8 times [1] - The probability of these projections materializing is estimated to be over 70% [1]