Core Viewpoint - The delivery of residential properties remains a crucial task for the real estate market in 2025, with a notable decline in delivery volumes compared to the previous year, indicating a shift in focus for companies from "guaranteeing delivery" to seeking development opportunities [1][9]. Delivery Performance - In the first half of 2025, 55 real estate companies delivered over 500,000 units, with 15 companies delivering more than 10,000 units each [1]. - Major companies like Greenland Group, Sunac China, and Jianye Group saw delivery declines exceeding 50% compared to the same period last year [1]. - The top three companies in terms of delivery volume were Country Garden (75,000 units), Poly Developments (65,000 units), and China Overseas Property (42,155 units), with the top ten companies accounting for 56.46% of total deliveries [2][1]. Industry Trends - The pressure to ensure delivery is easing as the peak delivery period has passed, allowing companies to shift their focus towards development and operational strategies [1][9]. - Companies like Country Garden and Sunac China are actively working on completing their delivery commitments while also restructuring their financing to align with current market conditions [3][4]. Innovations in Delivery - Some companies have begun implementing innovative delivery methods, such as "delivery and certificate issuance" on-site, enhancing customer experience and operational efficiency [10]. - The focus on improving delivery quality includes better communication with homeowners and offering personalized services during the delivery process [10]. Strategic Shifts - The industry is witnessing a strategic shift where companies are prioritizing product quality, operational efficiency, and asset management over mere scale [11][12]. - Companies are categorizing their strategies into three main types: product-focused, light-asset models, and asset operation, reflecting a more nuanced approach to market challenges [11].

Core Insights - The report from the China Index Academy indicates that the delivery scale of real estate companies in the first half of 2025 has peaked and is on a downward trend, with pressures on delivery easing in the industry [1][7]. Delivery Scale Rankings - In the first half of 2025, the top real estate company delivered over 50,000 units, with 15 companies delivering more than 10,000 units each [1]. - The delivery numbers for major companies have generally decreased compared to the same period last year, with companies like Greenland, Sunac, and Jianye experiencing declines of over 50% [1]. Company Performance - The report highlights that delivery capability has become a core competitive advantage for real estate companies, with some firms managing to gain market trust by enhancing quality and optimizing services despite the overall contraction in delivery scale [7]. Market Dynamics - The new housing market remains stable, supported by the combination of "good cities + good houses," although there has been a slight weakening in the market in the second quarter [5]. - The government is expected to take stronger measures to stabilize expectations, activate demand, optimize supply, and mitigate risks in the real estate market in the second half of the year [6]. Delivery Quality Improvement - Real estate companies are focusing on product delivery and service optimization to enhance delivery quality, utilizing methods such as open construction days and live broadcasts to build customer trust [4].

Group 1: Housing Lottery in Jinan - Jinan conducted the first lottery for the allocation of affordable housing, with 1599 families participating [1] - The lottery was organized based on the principles of "priority for those in need" and "priority for talent," categorizing eligible families into priority and regular groups [1] Group 2: Sales Performance of Real Estate Companies - China Jinmao reported a sales amount of 15.6 billion yuan in June, with a signed sales area of approximately 647,700 square meters [2] - China Merchants Shekou achieved a signed sales amount of 21.748 billion yuan in June, with a sales area of 695,000 square meters [3] - New City Holdings recorded a contract sales amount of approximately 1.493 billion yuan in June, representing a year-on-year decrease of 60.71%, with a sales area of about 196,400 square meters, down 62.6% year-on-year [4] - Zhongliang Holdings reported a contract sales amount of approximately 1.01 billion yuan in June, with a sales area of about 95,000 square meters and an average sales price of approximately 10,600 yuan per square meter [5]

Core Viewpoint - Zhongliang Holdings (02772.HK) has successfully obtained the necessary majority support from bondholders for the amendment of terms related to its 5.0% senior notes and 3.0% convertible bonds due in 2027, marking a significant step in its debt management strategy [1][3] Group 1: Debt Management Progress - The company initiated a consent solicitation for two bonds totaling approximately $1.319 billion on May 28, aiming to improve its overall financial condition and extend debt maturity [3] - Over 80% of noteholders and over 90% of convertible bondholders agreed to the revised terms, reflecting a willingness among creditors to provide the company with breathing room amid a challenging industry environment [4][6] - The successful debt management measures signal a positive market response and enhance the company's financial health, allowing it to navigate through the current industry adjustment period [4][11] Group 2: Market and Policy Environment - The recent supportive policies from the government, including measures to stabilize expectations and activate demand in the real estate market, align with Zhongliang's debt management efforts [5] - The company’s proactive approach in debt management is seen as a way to ensure mutual benefits for all stakeholders, especially as the industry environment improves [5][11] Group 3: Investment Opportunities - The debt management success is expected to enhance the company's financial stability, thereby boosting market confidence [7][8] - As one of the early private real estate firms to complete debt restructuring, Zhongliang is positioned to benefit from the recovery of market confidence, with potential for higher sales and stock price elasticity [9] - The company is focusing on optimizing its land reserve structure and enhancing product competitiveness, which aligns with the market shift towards quality development over mere scale expansion [10]

Group 1: Urban Renewal Policies - Hainan Province has introduced 20 policy measures to support urban renewal, categorized into five main areas including planning, land supply, project supervision, and funding [1] - Specific measures include incentives for floor area ratio, utilization of underground space, and innovative land supply methods for irregular plots [1] Group 2: Housing Policies - Shenzhen has released a draft for the management of shared affordable housing, detailing application conditions, allocation methods, and strict management protocols [2] - The policy prohibits the conversion of shared affordable housing into commercial properties and allows for transfer after a three-year holding period under regulated conditions [2] - Hefei has extended its housing subsidy policy until May 14, 2026, for new purchases of residential properties and parking spaces, with subsidies disbursed after obtaining property rights certificates [3] Group 3: Consumption Stimulus - Fujian Province has launched a consumption stimulus plan comprising 30 policy measures aimed at enhancing employment, reducing resident burdens, and improving service quality [4] - The plan includes initiatives for housing and automobile consumption, promoting policies like "housing vouchers" and "shared ownership" to stimulate the market [4] Group 4: Corporate Debt Management - Zhongliang Holdings is seeking consent to extend the maturity of two bonds totaling $1.319 billion, which are due in 2027, as part of its debt management strategy [5]

Group 1 - The real estate sector in both Hong Kong and A-shares experienced a significant rally on May 7, with notable stock price increases for companies such as Jin Hui Holdings (up 21.9%) and Zhongliang Holdings (up 7.06%) [1] - The People's Bank of China announced a 0.5 percentage point reserve requirement ratio cut, expected to inject approximately 1 trillion yuan into the market, along with a 0.1 percentage point reduction in policy interest rates [2] - The reduction in personal housing provident fund loan rates by 0.25 percentage points is projected to save residents over 20 billion yuan annually in interest, supporting rigid housing demand and stabilizing the real estate market [2] Group 2 - Following the "May Day" holiday, there was a surge in property subscriptions in various cities, with Shenzhen seeing a 23.89% year-on-year increase in new housing subscriptions during the holiday [3] - The introduction of high-quality projects in major cities like Beijing, Shanghai, and Hangzhou is expected to stimulate demand for improved housing and facilitate market recovery in May [3] - Major financial institutions are increasingly optimistic about the Chinese real estate market, with reports indicating a favorable policy environment and potential recovery in core cities [3]

Core Viewpoint - The Hong Kong property stocks are experiencing a strong upward trend, with significant gains observed in various companies within the sector [1] Company Performance - Jin Hui Holdings (09993.HK) has surged over 30% [1] - Ronshine China (03301.HK) has increased nearly 7% [1] - Zhongliang Holdings (02772.HK) has risen nearly 6% [1] - Shimao Group (00813.HK), Greentown China (03900.HK), and Sunac China (01918.HK) have all gained over 4% [1] - Fuli Properties (02777.HK) and Country Garden (02007.HK) have both seen increases of over 3% [1]

Group 1 - Hong Kong property stocks experienced a significant rise at the beginning of trading, with major companies like Ronshine China (03301.HK) and Jin Hui Holdings (09993.HK) both increasing by over 13% [1] - Shimao Group (00813.HK) saw an increase of over 9%, while Sunac China (01918.HK) rose by more than 6% [1] - Other companies such as Zhongliang Holdings (02772.HK) and New World Development Holdings (01030.HK) also recorded gains exceeding 5% [1]

A股三大指数早盘集体上涨，截至午盘，沪指涨0.15%，深证成指涨0.87%，创业板指涨1.07%，北证50 指数涨1.11%。全市场半日成交额7331亿元，较上日同期缩量469亿元。全市场超3800只个股上涨。 盘面上，房地产板块早盘走高， 大龙地产3分钟内直线涨停 。电力板块延续活跃，华银电力封板。 光模块、铜缆高速连接等AI硬件方向亦表现强势，仕佳光子、致尚科技涨超10%。创新药板块早盘 局部调整，江苏吴中跌停。 港股方面，恒生指数和恒生科技指数均高开高走，截至午间收盘，恒指涨1.36%，恒生科技指数涨 1.87%，国企指数涨1.29%。地产股集体走高，金辉控股盘中最高涨超80%。 地产板块再度走强 大龙地产直线涨停 地产板块25日盘中再度走强。截至午间收盘，A股南国置业、世联行、渝开发、大龙地产纷纷涨停。 大 龙地产自9时56分起直线拉升，3分钟内封住涨停。 港股市场，金辉控股盘中一度涨超80%，截至发稿涨超43%。融信中国涨超17%，远洋集团涨超11%， 中梁控股、龙湖集团等跟涨。 | | 09993 金辉控股 | | | 3.230 | +0.980 | | --- | --- | --- | -- ...

Financial Performance - Zhongliang Holdings reported a total contracted sales value of RMB 50 billion for the fiscal year, representing a year-on-year increase of 15%[18]. - The average selling price (ASP) of properties sold increased by 8% to RMB 12,000 per square meter[19]. - The company’s gross profit margin for the year was 25%, reflecting a stable performance in cost management[19]. - For the year ended December 31, 2024, the Group's recognized revenue amounted to RMB39.68 billion, representing a year-on-year decrease of 40.4%[32]. - The Group recorded a loss attributable to owners of the Company of approximately RMB2.43 billion for the year ended December 31, 2024, compared to a loss of approximately RMB4.25 billion for the previous year[32]. - The total contracted sales for the Group, including subsidiaries, joint ventures, and associates, was approximately RMB17.93 billion in 2024, reflecting a year-on-year decrease of approximately 47.5%[37]. - Revenue from property sales decreased by approximately 40.6% year-on-year to approximately RMB39,457.3 million for the year ended December 31, 2024[87]. - Gross profit decreased by approximately 71.5% to approximately RMB906.9 million, with gross profit margin dropping from 4.8% to 2.3%[96][97]. Market Strategy and Expansion - The company plans to expand its market presence in the Midwest region, targeting a 20% increase in sales from this area in the next fiscal year[18]. - New product launches are expected to contribute an additional RMB 5 billion in revenue over the next two years[18]. - The company is exploring potential mergers and acquisitions to enhance its market position and diversify its portfolio[18]. - The Group aims to accelerate property sales and improve cash flow management to settle outstanding debts[143]. Land Bank and Development - Zhongliang's land bank spans five core economic areas in China, with a total area of 10 million square meters[6]. - As of December 31, 2024, the total land reserve of the Group, including its joint ventures and associates, was approximately 2.19 million square meters[39]. - The Group did not acquire any land in 2024 due to ongoing uncertainties in the Chinese real estate market[39]. - The total land bank of the Group as of December 31, 2024, was approximately 21.9 million sq.m., with 6.1 million sq.m. being completed properties available for sale or lease[77]. Operational Efficiency - The Group has strengthened construction and contractor management to ensure smooth property delivery and reduce delivery risks[38]. - The Group has implemented measures to enhance operational efficiency and lower operating costs amid a challenging industry environment[49]. - The total staff cost recognized as expenses for the year ended December 31, 2024, was approximately RMB597.4 million, a decrease from RMB894.8 million for the year ended December 31, 2023[162]. - The Group employed a total of 2,150 full-time employees as of December 31, 2024, down from 3,145 employees as of December 31, 2023[162]. Financial Position and Debt Management - As of December 31, 2024, the Group's total interest-bearing debts were approximately RMB20.25 billion, with onshore debts at approximately RMB10.87 billion and offshore debts at approximately RMB9.38 billion[50]. - The Group's cash and bank balances, including restricted cash and pledged deposits, totaled approximately RMB5.74 billion as of December 31, 2024[50]. - The Group's assets-to-liabilities ratio was approximately 81.3% as at 31 December 2024, with a net gearing ratio of approximately 74.9%[127]. - The total outstanding indebtedness of the Group was approximately RMB20,250.7 million as at 31 December 2024, a decrease from RMB21,165.8 million at the end of 2023[128]. - The restructuring of debt has alleviated the pressure from offshore indebtedness, with new senior notes and convertible bonds issued[135]. Management and Governance - The Group's management team includes experienced professionals with backgrounds in various aspects of real estate, finance, and corporate governance, enhancing operational efficiency[179]. - The company is committed to achieving high levels of corporate governance to protect shareholder interests and enhance company value[198]. - The company has adopted corporate governance codes and has complied with all applicable code provisions for the year ending December 31, 2024[198]. - The board consists of five executive directors and three independent non-executive directors, ensuring compliance with listing rules regarding board composition[199]. Economic Environment - The Chinese economy grew by 5% in 2024, meeting expectations, while the government continued to promote policies to stabilize growth and boost market confidence[34]. - The government implemented a series of industry support and economic stimulus policies to stabilize the real estate market after a decline[40]. - Market confidence remains insufficient, with ongoing difficulties in financing and property sales for private-owned developers[40].