Core Insights - The increasing demand for "existing house sales" is driven by industry downturns and a loss of confidence in pre-sale properties due to discrepancies between marketing and actual delivery [1][2] - Realistic demonstration areas have become a crucial marketing tool for real estate companies, evolving from mere sales points to comprehensive lifestyle showcases [1][3] Group 1: Objectives of Demonstration Areas - The core goal of demonstration areas is to create a threefold value system, enhancing sales experience, product visualization, and innovation [2][3] - Demonstration areas serve as the ultimate sales tool, embodying the principle of "what you see is what you get" [4][5] Group 2: Core Functions of Demonstration Areas - Risk mitigation: They address trust issues inherent in the pre-sale system, as exemplified by the 12,000 square meter all-dimensional demonstration area of the West Xi'an Greentown project [5][7] - Emotional engagement: They stimulate emotional resonance through sensory experiences, enhancing customer connection to quality living [7][8] - Value anchoring: High-end projects utilize realistic displays to justify premium pricing, with potential price premiums of 15%-20% for well-crafted demonstration areas [7][8] Group 3: Product Value Expression - Demonstration areas act as three-dimensional brochures for developers, showcasing spatial value through innovative designs [8][9] - Transparency in craftsmanship is highlighted, as seen in the Shanghai Putuo Jinmao project, which showcases hidden engineering quality [9][11] Group 4: Innovation and Iteration - Demonstration areas serve as critical platforms for product development, allowing for design validation and cost adaptation [12][14] - They facilitate the standardization of product lines, enabling iterative improvements based on customer feedback [14] Group 5: Classification of Demonstration Areas - Basic type: Focuses on entry experience and core landscape elements, suitable for smaller communities [16] - Advanced type: Combines public space functionality with innovative design, targeting improvement-oriented customers [17] - Comprehensive type: High-end projects that provide a complete experience from urban interface to interior space [18][20] Group 6: Design Elements and Standards - The selection strategy prioritizes visibility and accessibility, ensuring demonstration areas are strategically located [21] - Core design elements evolve from basic functionality to a deeper expression of lifestyle philosophy, balancing aesthetics and practicality [21][22] Group 7: Implementation Challenges - Conflicts with site pipelines can arise, necessitating early design and communication with government departments to avoid disruptions [29][30] - Adjustments in planning and design during implementation can lead to discrepancies between displayed and delivered projects, requiring ongoing monitoring and rectification [32][33] Conclusion - The evolution of demonstration areas reflects a shift in the real estate industry towards a more refined and customer-centric approach, emphasizing genuine experiences over mere sales tactics [35]

Investment Rating - The report maintains a "Positive" rating for the real estate and property management sectors [4]. Core Insights - The overall housing demand in China has reached a bottom, but the recovery of residents' balance sheets may take around two years, leading to a continued downward trend in volume and price [4]. - The report anticipates that policies aimed at stabilizing the market will be introduced, with core cities expected to lead the recovery due to healthier supply-demand dynamics [4]. - The "Good House" policy is expected to create new development tracks, enhancing the market in core cities with lower penetration rates [4]. Industry Data Summary New Housing Transaction Volume - In the week of August 2-8, 2025, new housing transactions in 34 cities totaled 1.758 million square meters, a decrease of 24.3% week-on-week [5]. - Year-on-year, new housing transactions in August (up to August 8) fell by 14.2% compared to July [5][8]. - The transaction-to-launch ratio for new housing was 1.1 times, indicating a slight increase in inventory absorption [22]. Second-Hand Housing Transaction Volume - In the week of August 2-8, 2025, second-hand housing transactions in 13 cities totaled 1.021 million square meters, down 5.2% week-on-week [14]. - Year-to-date, second-hand housing transactions have increased by 5.1% compared to the previous year [14]. Inventory and Market Dynamics - As of August 8, 2025, the total available residential area in 15 cities was 89.04 million square meters, with a slight decrease of 0.1% [22]. - The average months of inventory absorption increased to 20.7 months, indicating a slower pace of sales [22]. Policy and News Tracking - The China Real Estate Association has issued a notice to enhance connections with small and medium-sized real estate companies to support their healthy development [32]. - Fitch Ratings has revised its forecast for new home sales in 2025, reducing the expected decline from 15% to 7% [32]. - Beijing has relaxed purchase restrictions outside the Fifth Ring Road and introduced supportive policies for first-time homebuyers [32][33]. Company Dynamics - Several real estate companies reported their sales for July, with notable declines: - China Overseas Land & Investment reported a monthly sales figure of 11.9 billion yuan, down 11% year-on-year [4]. - Greentown China announced a projected 90% decline in net profit for the first half of 2025 compared to the same period in 2024 [4]. - Huafa Group's convertible bond application has been approved by the regulatory authority [4].

Investment Rating - The report maintains an "Overweight" rating for the real estate industry [4][6]. Core Insights - The recent policy changes in Beijing, which relax restrictions on home purchases outside the Fifth Ring Road, are expected to aid in inventory reduction in suburban areas, although the overall impact may be limited [11][12]. - The real estate sector is viewed as an early economic indicator, making it a key focus for investment [4]. - The competitive landscape in the industry is improving, with leading state-owned enterprises and select private firms expected to benefit more in the future [4]. - The report emphasizes a focus on first-tier and select second-tier cities for investment opportunities, as this combination has shown better performance during market rebounds [4]. - Supply-side policies, including land management and disposal of idle land, are critical areas to monitor for future developments [4]. Summary by Sections 1. Policy Changes - Beijing's new policy allows residents with two years of social security contributions to purchase homes without quantity restrictions outside the Fifth Ring Road, differing from other cities that have fully lifted purchase limits [11][12]. 2. Market Review - The real estate index increased by 2.2% this week, outperforming the CSI 300 index by 0.93 percentage points, ranking 16th among 31 sectors [2][13]. - New home sales in 30 cities totaled 120.5 million square meters, down 35.0% month-on-month and 19.3% year-on-year [22]. - Second-hand home sales in 14 cities totaled 171.1 million square meters, down 7.2% month-on-month and 2.1% year-on-year [32]. 3. Credit Market - A total of 22 corporate bonds were issued this week, raising 228.70 billion yuan, with a net financing amount of 159.94 billion yuan [3]. 4. Investment Recommendations - The report suggests focusing on companies with strong fundamentals, including both H-shares and A-shares, as well as local state-owned enterprises and property management firms [4].

Report Summary 1. Report Industry Investment Rating No relevant content provided. 2. Core View of the Report From June 30 to July 6, 2025 (Week 27), the land supply scale in key cities increased significantly for two consecutive weeks, while the transaction scale decreased but remained at a high level for the year. The average premium rate dropped to a recent low. The supply of high - quality plots decreased, leading to a decline in the average premium rate [4]. 3. Summary by Related Catalogs Supply - The supply construction area this week was 6.8 million square meters, a 26% week - on - week increase, continuing the seasonal rise in mid - year. There were 76 residential - included plots supplied in key cities, with an average plot ratio of 1.99. The average plot ratios of residential land supplied in Nanjing, Nantong, Hefei, and Tianjin were all no higher than 2.0 [4]. - In Shenzhen, a residential plot in Longhua District was listed, with a base price of 1.906 billion yuan, a plot ratio of 3.1, a planned construction area of 68,000 square meters, and a starting floor price of 28,000 yuan per square meter. The plot is adjacent to a subway station with mature surrounding facilities [5]. - Nanjing listed 16 residential plots, with a total construction area of 709,000 square meters and a total starting base price of 7.25 billion yuan. The highest starting floor price was 30,000 yuan per square meter for a plot in Gulou, and the highest base price was 1.71 billion yuan for a plot in Jiangbei New Area [6]. Transaction - The transaction construction area was 5.56 million square meters, a 11% week - on - week decrease. The transaction amount was 39.2 billion yuan, a 26% week - on - week decrease. The average premium rate dropped to 3.3% [4][6]. - In Chengdu, a plot in Jinniu District was sold at a 24% premium rate, with a transaction floor price of 20,000 yuan per square meter. In Wuhan, a plot in Jiang'an District was won by Greentown at a transaction floor price of 28,000 yuan per square meter, ranking second in Wuhan's residential floor price records [7]. Top 5 Plots - **Unit Price TOP5**: The top 5 plots in terms of unit price included those in Guangzhou, Wuhan, Fuzhou, and Tianjin. The highest unit price was 30,000 yuan per square meter for a plot in Guangzhou, and the highest premium rate was 54% for a plot in Wuhan [13]. - **Total Price TOP5**: The top 5 plots in terms of total price included those in Fuzhou, Guangzhou, and Chengdu. The highest total price - related information was not clearly presented, and some plots had a 0% premium rate [15].

Group 1 - The core viewpoint indicates that despite the new housing market not fully stabilizing, the land market is showing signs of activity, particularly in core cities where high premium land parcels are being actively pursued by developers [1][2]. - In the first seven months of 2025, the proportion of premium land parcels in 30 key cities reached 30%, marking a three-year high and an increase of 12 percentage points compared to 2024, indicating a resurgence in land acquisition sentiment [2][3]. - The average premium rate for land parcels in the same period rose to 26%, nearly doubling compared to the past two years, reflecting heightened competition among developers [2]. Group 2 - The performance of companies in the land acquisition space remains fragmented, with many struggling to capitalize on opportunities, while leading firms are driving positive growth in investment amounts [3][5]. - In the first seven months of 2025, the top 100 real estate companies recorded a total new land reserve value of 682.8 billion yuan and an area of 5.802 million square meters, with a year-on-year increase of 33%, indicating a stabilization in investment trends [5]. - The concentration of land acquisition among the top 10 real estate companies remains high, with their new land value accounting for 70% of the total for the top 100, reflecting a trend towards market consolidation [6][7]. Group 3 - The top 10 real estate companies have a land acquisition to sales ratio of 0.41, significantly higher than the industry average of 0.3, showcasing their aggressive land acquisition strategies [7]. - Companies such as China Overseas, China Merchants, and Greentown have seen substantial increases in land acquisition amounts, with Poly Developments and China Resources maintaining steady investment speeds [8]. - High premium land acquisitions are primarily being made by state-owned enterprises and established regional players, with companies like CIFI, China Overseas, and China Merchants leading in this area [11][12]. Group 4 - The focus of investment is increasingly on high-quality land parcels in first and second-tier cities, leading to intense competition among developers, particularly state-owned enterprises [14]. - The attractiveness of premium land parcels is rising, as the market recognizes the importance of improvement projects in driving growth [14].

Group 1 - Greentown China (03900.HK) expects a decline of approximately 90% in the interim profit attributable to shareholders for the first half of 2025 compared to RMB 2.045 billion in the same period of 2024 [1] - The decline is primarily due to uneven delivery schedules in 2025, resulting in a year-on-year decrease in recognized area and revenue for the first half of the year [1] - The company continues to actively promote inventory reduction and will recognize related asset impairment losses for the interim period of 2025, further impacting shareholder profit [1] Group 2 - The group has optimized its debt structure, reducing short-term liabilities to below 20%, achieving a historical low [1] - Cash reserves are robust, with a cash-to-short-term debt ratio exceeding 2.5 times, marking a historical high, indicating overall operational safety and stability [1]

Group 1 - Xi'an's new property launches are accelerating as developers aim to boost performance for the second half of the year [1][2] - Greentown China made a significant impact by announcing four new projects at the "Flourishing Era of Xi'an" event, signaling confidence in the current sluggish market [1][2] - The four projects announced include Greentown·Run Baihe, Greentown·Gui Guan Dongfang, Greentown·Lvtin Fangfei, and Greentown·Chang'an Yuhua, each targeting different market segments [2][4] Group 2 - Greentown·Lvtin Fangfei is set to launch at the end of September, featuring units ranging from 89 to 139 square meters with a 40% gift rate, emphasizing spacious interior designs [4][6] - Greentown·Run Baihe, the first Baihe series project in Xi'an, will offer units from 125 to 195 square meters, with a focus on high-quality urban locations [8][9] - Greentown·Gui Guan Dongfang, positioned as a premium urban project, is expected to enter the market by the end of the year, targeting high-end buyers [12][15] Group 3 - Greentown·Chang'an Yuhua aims to surpass existing high-end offerings in the area, with a focus on large units and high-end improvements, expected to launch by the end of the year [17][19] - Other developers like China Resources, Longfor, and China Overseas are also launching new projects in Xi'an, indicating a competitive market landscape [19] - The upcoming months are anticipated to be significant for Xi'an's real estate market, with multiple new projects set to enter [19]

上半年，集团持续优化债务结构，压降短期负债，短债占比低于20%，创历史新低。同时，现金储备充 裕，现金短债比2.5倍以上，创历史新高，整体经营安全稳健。 绿城中国(03900)发布公告，预计2025年中期公司股东应占利润较2024年同期人民币20.45亿元下降90% 左右，主要是受集团2025年上下半年交付节奏分布不均的影响，上半年结转面积同比下降，收入同比下 降。此外，公司今年继续积极推动长库存去化，2025年中期计提相关资产减值损失，进而影响了股东应 占利润。 ...

Core Viewpoint - Greentown China announced a significant expected decline in shareholder profit for mid-2025, projecting a decrease of approximately 90% compared to the same period in 2024, primarily due to uneven delivery schedules and inventory reduction efforts [1] Financial Performance - The company anticipates a shareholder profit of around 2.045 billion yuan for mid-2025, which represents a substantial drop from the previous year [1] - The decrease in profit is attributed to a year-on-year decline in both the area delivered and revenue for the first half of the year [1] Strategic Initiatives - Greentown China continues to actively promote inventory reduction, which is expected to lead to asset impairment losses being recognized in mid-2025 [1]

Core Viewpoint - Greentown China (03900.HK) expects a significant decline in profit attributable to shareholders for the first half of 2025, projecting a decrease of approximately 90% compared to the same period in 2024, primarily due to uneven delivery schedules and a decrease in recognized area and revenue [1] Financial Performance - The company anticipates a profit attributable to shareholders of RMB 2.045 billion for mid-2025, reflecting a substantial drop from the previous year [1] - The decrease in recognized area and revenue is attributed to the company's ongoing efforts to reduce inventory levels [1] Debt Management - The company has been actively optimizing its debt structure, successfully reducing short-term liabilities to below 20%, marking a historical low [1] - Cash reserves are robust, with a cash-to-short-term debt ratio exceeding 2.5 times, also a historical high, indicating a stable operational safety [1]