Corporate Information This section provides an overview of the company's governance structure, including board and committee compositions, along with essential corporate details such as registered offices, key advisors, and listing information [Board of Directors](index=3&type=section&id=Board%20of%20Directors) This chapter outlines the composition of the company's Board of Directors, including executive, non-executive, and independent non-executive directors, as well as members of the audit, remuneration, and nomination committees - The Board of Directors includes executive directors such as Mr. Lu Ming (Chairman), Mr. Lu Jinliang, and Mr. Lu Zhicong; non-executive directors such as Mr. Lu Yongmao and Mr. Lu Yongnan; and independent non-executive directors such as Professor Zhang Jiayu, Ms. Wu Hua, and Mr. Xiong Lusheng[4](index=4&type=chunk)[5](index=5&type=chunk) - Professor Zhang Jiayu chairs the Audit Committee, Mr. Xiong Lusheng chairs the Remuneration Committee, and Mr. Lu Ming chairs the Nomination Committee[4](index=4&type=chunk)[5](index=5&type=chunk) [Company Details](index=3&type=section&id=Company%20Details) This chapter provides detailed information on the company's authorized representatives, company secretary, registered office, China headquarters, Hong Kong principal place of business, share registrar, principal banks, legal advisors, auditor, and listing information - The company's authorized representatives are Mr. Lu Jinliang and Mr. Chan Pui Tak, with Mr. Chan Pui Tak also serving as the company secretary[5](index=5&type=chunk) - The company's registered office is in the Cayman Islands, its China headquarters is in Minhang District, Shanghai, and its principal place of business in Hong Kong is on Hennessy Road, Wan Chai[5](index=5&type=chunk)[6](index=6&type=chunk)[7](index=7&type=chunk) - The company's auditor is Zhongzheng Tianheng Certified Public Accountants Co., Ltd., and legal advisors include Chan, Fong & Ng Solicitors LLP (Hong Kong law) and Harneys (Cayman Islands law)[8](index=8&type=chunk)[9](index=9&type=chunk) - The company's ordinary shares have been listed on the Main Board of The Stock Exchange of Hong Kong Limited since July 15, 2020, with stock code 06968.HK[8](index=8&type=chunk)[9](index=9&type=chunk) Management Discussion and Analysis This section provides a comprehensive analysis of the company's operational and financial performance, strategic responses to market challenges, and detailed reviews of business segments, financial health, and human resources [GENERAL OVERVIEW](index=6&type=section&id=GENERAL%20OVERVIEW) In the first half of 2025, the real estate sector continued to face downward pressure, with the Group delivering properties worth approximately RMB1,631 million, while implementing strategies to strengthen marketing, streamline expenses, focus on cash collection, and ensure quality delivery amidst an anticipated challenging market in the second half - In the first half of 2025, the real estate sector as a whole continued to face downward pressure[10](index=10&type=chunk)[13](index=13&type=chunk) 2025 First Half Property Delivery Overview | Indicator | Amount/Area | | :--- | :--- | | Delivery Amount | Approximately RMB1,631 million | | Delivery Area | Approximately 177,042 square meters | - The Group's response strategies include: strengthening marketing (precise and diversified strategies, enhancing inventory destocking and cash collection management, innovative online marketing, external channel cooperation), expense reduction (expanding cost control scope, optimizing debt structure and financing costs), focusing on core business (prioritizing cash collection to support cash flow), and meticulous construction (continuously improving engineering management and comprehensive quality control system)[11](index=11&type=chunk)[13](index=13&type=chunk) - The Chinese real estate market is expected to remain under adjustment pressure in the second half of 2025, with financial stability being a primary consideration for property developers, and survival and development hinging on internal improvements, operational efficiency, and product quality enhancement[12](index=12&type=chunk)[14](index=14&type=chunk) - The Group's future plans include: focusing on product development and customer service, strict expense control, prioritizing cash collection, adjusting financing structure to reduce costs, continuous talent review, strengthening incentives and performance indicators, and actively fulfilling social responsibilities[15](index=15&type=chunk)[19](index=19&type=chunk) [Business Review](index=7&type=section&id=Business%20Review) The Group's revenue primarily derives from property sales, totaling approximately RMB1,631 million for the six months ended June 30, 2025, with contract sales of approximately RMB2,700 million and a decrease in contract liabilities compared to the end of 2024, while land reserves total approximately 3,795,222 square meters, with 47 projects located in the Yangtze River Delta region - The Group's revenue primarily derives from property sales[16](index=16&type=chunk)[20](index=20&type=chunk) 2025 First Half Business Key Data | Indicator | Amount/Area | | :--- | :--- | | Total Revenue | Approximately RMB1,631 million | | Unaudited Contract Sales | Approximately RMB2,700 million | | Contract Sales GFA | Approximately 221,613 square meters | | Contract Sales ASP | Approximately RMB12,183/square meter | | Contract Liabilities (June 30, 2025) | Approximately RMB2,033 million | | Contract Liabilities (December 31, 2024) | Approximately RMB2,746 million | [Sales of properties](index=8&type=section&id=Sales%20of%20properties) For the six months ended June 30, 2025, the Group recognized property sales revenue of approximately RMB1,631 million, with a total gross floor area of approximately 177,042 square meters and an average selling price of approximately RMB9,214 per square meter, with Fuyang, Taizhou, and Wuhu being the largest contributors to revenue 2025 First Half Recognized Property Sales Data | Indicator | Amount/Area | | :--- | :--- | | Recognized Property Sales Revenue | Approximately RMB1,631 million | | Recognized Total Gross Floor Area | Approximately 177,042 square meters | | Recognized Average Selling Price | Approximately RMB9,214/square meter | 2025 First Half Recognized Sales by City | City | Recognized Revenue (RMB thousand) | | :--- | :--- | | Fuyang | 451,443 | | Taizhou | 331,536 | | Wuhu | 164,763 | | Hefei | 127,155 | | Yancheng | 126,056 | | Yangzhou | 78,175 | | Suzhou | 59,539 | | Huangshan | 56,300 | | Huaian | 41,749 | | Guangzhou | 39,758 | | Luoyang | 35,853 | | Haian | 33,990 | | Nanjing | 27,099 | | Foshan | 16,107 | | Guizhou | 12,917 | | Changzhou | 10,193 | | Parking lots & garages/storage facilities & other residual properties | 18,686 | | **Total** | **1,631,319** | [Land reserves](index=8&type=section&id=Land%20reserves) As of June 30, 2025, the Group (together with joint ventures and associates) held 54 projects with total land reserves of approximately 3,795,222 square meters, of which 47 projects are located in the Yangtze River Delta region, with Guangdong, Jiangsu, and Anhui provinces being the primary areas for land reserves Land Reserve Overview as of June 30, 2025 | Indicator | Value | | :--- | :--- | | Number of Projects | 54 | | Total Land Reserves | Approximately 3,795,222 square meters | | Number of Projects in Yangtze River Delta | 47 | Land Reserves by Province/City as of June 30, 2025 | Province/City | Total Land Reserves (square meters) | Percentage of Total Land Reserves (%) | | :--- | :--- | :--- | | Guangdong | 1,606,729 | 42 | | Jiangsu | 1,066,735 | 29 | | Anhui | 559,273 | 15 | | Guizhou | 234,152 | 6 | | Zhejiang | 154,694 | 4 | | Henan | 132,350 | 3 | | Sichuan | 26,504 | 1 | | Shanghai | 14,785 | 0 | | **Total** | **3,795,222** | **100%** | [FINANCIAL REVIEW](index=10&type=section&id=FINANCIAL%20REVIEW) For the six months ended June 30, 2025, the Group's total revenue was approximately RMB1,631 million, a year-on-year decrease of approximately 70%, resulting in a gross loss of RMB450 million and a net loss of RMB666 million, facing liquidity pressure with senior notes in default, while the net gearing ratio increased to 49% and the total cash to short-term debt ratio decreased to 0.2 times 2025 First Half Key Financial Performance | Indicator | 2025 First Half (RMB million) | 2024 First Half (RMB million) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Total Revenue | 1,631 | 5,367 | -70% | | Cost of Sales | 2,081 | 5,077 | -59% | | Gross Loss/(Profit) | (450) | 290 | Turned to loss | | Gross Loss Rate/(Profit Rate) | -28% | 5% | Decreased | | Net Loss | (666) | (154) | Loss widened | | Loss Attributable to Owners of the Company | (330) | (76) | Loss widened | | Basic and Diluted Loss Per Share | (0.20) RMB/share | (0.05) RMB/share | Loss widened | - The decrease in revenue was primarily attributable to a reduction in contract sales and recognition of properties sold[32](index=32&type=chunk)[37](index=37&type=chunk) - The decline in gross profit margin was mainly due to unfavorable market conditions and an increase in impairment provisions recognized for properties under development compared to the same period last year[35](index=35&type=chunk)[39](index=39&type=chunk) [Overall performance](index=10&type=section&id=Overall%20performance) For the six months ended June 30, 2025, the Group reported total revenue of approximately RMB1,631 million, a gross loss of RMB450 million, a net loss of RMB666 million, and a loss attributable to owners of the company of RMB330 million 2025 First Half Overall Financial Performance | Indicator | Amount (RMB million) | | :--- | :--- | | Total Revenue | 1,631 | | Gross Loss | 450 | | Net Loss | 666 | | Loss Attributable to Owners of the Company | 330 | [Revenue](index=10&type=section&id=Revenue) For the six months ended June 30, 2025, the Group's total revenue was approximately RMB1,631 million, a decrease of approximately 70% compared to the same period last year, primarily due to reduced contract sales and recognition of properties sold Revenue Comparison | Period | Amount (RMB million) | Year-on-Year Change | | :--- | :--- | :--- | | 2025 First Half | 1,631 | -70% | | 2024 First Half | 5,367 | - | - The decrease in revenue was primarily attributable to a reduction in contract sales and recognition of properties sold[32](index=32&type=chunk)[37](index=37&type=chunk) [Cost of sales](index=10&type=section&id=Cost%20of%20sales) For the six months ended June 30, 2025, the Group's cost of sales was approximately RMB2,081 million, a decrease from RMB5,077 million in the same period last year, but the net impairment provision for properties under development and completed properties held for sale increased to RMB392 million (2024 same period: RMB121 million) Cost of Sales Comparison | Period | Amount (RMB million) | | :--- | :--- | | 2025 First Half | 2,081 | | 2024 First Half | 5,077 | Net Impairment Provision Comparison | Period | Amount (RMB million) | | :--- | :--- | | 2025 First Half | 392 | | 2024 First Half | 121 | [Gross (loss)/profit](index=10&type=section&id=Gross%20%28loss%29%2Fprofit) For the six months ended June 30, 2025, the Group recorded a gross loss of approximately RMB450 million, with a gross loss margin of approximately 28%, compared to a gross profit of RMB290 million and a gross profit margin of approximately 5% in the same period last year, primarily due to unfavorable market conditions and increased impairment of properties under development Gross Profit/Loss and Margin Comparison | Period | Gross Profit/Loss (RMB million) | Gross Profit/Loss Margin | | :--- | :--- | :--- | | 2025 First Half | (450) (Gross Loss) | -28% | | 2024 First Half | 290 (Gross Profit) | 5% | - The decline in gross profit margin was mainly due to unfavorable market conditions and an increase in impairment provisions recognized for properties under development compared to the same period last year[35](index=35&type=chunk)[39](index=39&type=chunk) [Other income/(expenses) and other gains/(losses), net](index=11&type=section&id=Other%20income%2F%28expenses%29%20and%20other%20gains%2F%28losses%29%2C%20net) For the six months ended June 30, 2025, the Group recorded other income of approximately RMB7 million, compared to other expenses of approximately RMB1 million in the same period last year, primarily comprising rental, management, and consulting service income of approximately RMB11 million, offset by deferred tax expenses of approximately RMB4 million Other Income/(Expenses) and Other Gains/(Losses), Net Comparison | Period | Amount (RMB million) | | :--- | :--- | | 2025 First Half | 7 (Income) | | 2024 First Half | (1) (Expenses) | - Primarily composed of rental, management, and consulting service income (approximately **RMB11 million**) and deferred tax expenses (approximately **RMB4 million**)[41](index=41&type=chunk)[45](index=45&type=chunk) [Selling and marketing expenses](index=11&type=section&id=Selling%20and%20marketing%20expenses) For the six months ended June 30, 2025, the Group's selling and marketing expenses were approximately RMB64 million, a year-on-year decrease of approximately 28%, mainly due to reduced recognition of properties sold and sales commissions, marketing and advertising cost control measures, and lower staff costs Selling and Marketing Expenses Comparison | Period | Amount (RMB million) | Year-on-Year Change | | :--- | :--- | :--- | | 2025 First Half | 64 | -28% | | 2024 First Half | 89 | - | - The decrease was attributable to reduced recognition of properties sold and sales commissions, marketing and advertising cost control measures, and lower staff costs[42](index=42&type=chunk)[46](index=46&type=chunk) [General and administrative expenses](index=11&type=section&id=General%20and%20administrative%20expenses) For the six months ended June 30, 2025, the Group's general and administrative expenses were approximately RMB67 million, a year-on-year decrease of approximately 6%, primarily due to further streamlining of the organizational structure for cost reduction and efficiency improvement General and Administrative Expenses Comparison | Period | Amount (RMB million) | Year-on-Year Change | | :--- | :--- | :--- | | 2025 First Half | 67 | -6% | | 2024 First Half | 71 | - | - The decrease was primarily due to further streamlining of the organizational structure for cost reduction and efficiency improvement[43](index=43&type=chunk)[47](index=47&type=chunk) [Finance costs – net](index=11&type=section&id=Finance%20costs%20%E2%80%93%20net) For the six months ended June 30, 2025, the Group's net finance costs were approximately RMB29 million, a year-on-year decrease of approximately 29%, primarily due to a reduction in the average principal balance of interest-bearing borrowings Net Finance Costs Comparison | Period | Amount (RMB million) | Year-on-Year Change | | :--- | :--- | :--- | | 2025 First Half | 29 | -29% | | 2024 First Half | 41 | - | - The decrease was attributable to a reduction in the average principal balance of interest-bearing borrowings[44](index=44&type=chunk)[48](index=48&type=chunk) [Share of results of joint ventures and associates](index=12&type=section&id=Share%20of%20results%20of%20joint%20ventures%20and%20associates) For the six months ended June 30, 2025, the share of results of joint ventures and associates was a loss of approximately RMB6 million, compared to a loss of approximately RMB8 million in the same period last year, consistent with the decline in property sales revenue Share of Results of Joint Ventures and Associates Comparison | Period | Amount (RMB million) | | :--- | :--- | | 2025 First Half | (6) (Loss) | | 2024 First Half | (8) (Loss) | - The loss was consistent with the decline in property sales revenue from joint ventures and associates[50](index=50&type=chunk)[55](index=55&type=chunk) [Income tax expenses](index=12&type=section&id=Income%20tax%20expenses) For the six months ended June 30, 2025, income tax expenses were approximately RMB57 million, compared to RMB236 million in the same period last year Income Tax Expenses Comparison | Period | Amount (RMB million) | | :--- | :--- | | 2025 First Half | 57 | | 2024 First Half | 236 | [Loss and total comprehensive loss for the period](index=12&type=section&id=Loss%20and%20total%20comprehensive%20loss%20for%20the%20period) For the six months ended June 30, 2025, the Group's loss and total comprehensive loss for the period was approximately RMB666 million (2024 same period: RMB154 million), with loss attributable to owners of the company of approximately RMB330 million (2024 same period: RMB76 million), and basic and diluted loss per share of RMB0.20 (2024 same period: RMB0.05) Loss and Total Comprehensive Loss for the Period Comparison | Indicator | 2025 First Half (RMB million) | 2024 First Half (RMB million) | | :--- | :--- | :--- | | Loss and Total Comprehensive Loss for the Period | 666 | 154 | | Loss Attributable to Owners of the Company | 330 | 76 | | Basic and Diluted Loss Per Share | 0.20 RMB/share | 0.05 RMB/share | [Liquidity and financial resources](index=12&type=section&id=Liquidity%20and%20financial%20resources) As of June 30, 2025, the Group's total cash was approximately RMB670 million, a decrease from RMB839 million at the end of 2024, while total bank and other borrowings were approximately RMB4,290 million, a decrease of approximately 6% from the end of 2024, with approximately RMB3,375 million due within one year - The Group primarily funds its working capital, capital expenditures, and other capital requirements through cash generated from operations, including proceeds from property pre-sales and sales[59](index=59&type=chunk)[63](index=63&type=chunk) Cash and Borrowings Situation | Indicator | June 30, 2025 (RMB million) | December 31, 2024 (RMB million) | Change | | :--- | :--- | :--- | :--- | | Total Cash | 670 | 839 | Decreased | | Total Bank and Other Borrowings | 4,290 | 4,552 | Decreased 6% | | Borrowings Due Within One Year | 3,375 | 2,921 | Increased | | Borrowings Due After One Year | 915 | 1,631 | Decreased | - For the six months ended June 30, 2025, total borrowings repaid were approximately **RMB274 million**[61](index=61&type=chunk)[63](index=63&type=chunk) [Senior notes](index=14&type=section&id=Senior%20notes) On November 18, 2024, all 2024 senior notes were redeemed, and new notes with a principal amount of USD180,551,641 (2025 November Notes) were issued at a fixed annual interest rate of 9.5%; however, due to liquidity pressure, the company failed to pay interest due on May 18, 2025, constituting an event of default, and major noteholders have declared the principal and accrued unpaid interest immediately due and payable, with the company currently communicating with noteholders to seek a resolution - On November 18, 2024, all 2024 senior notes were redeemed, and new notes with a principal amount of **USD180,551,641** (2025 November Notes) were issued at a fixed annual interest rate of **9.5%**, with interest payable semi-annually[65](index=65&type=chunk)[69](index=69&type=chunk) - On May 18, 2025, interest of **USD8,576,203** related to the 2025 November Notes became due, which the company failed to pay due to liquidity pressure, constituting an event of default on June 17, 2025[66](index=66&type=chunk)[69](index=69&type=chunk) - On June 19, 2025, major beneficial noteholders (beneficially owning approximately **USD161.9 million** in principal) issued a notice declaring the principal, premium, and accrued unpaid interest of the 2025 November Notes immediately due and payable[67](index=67&type=chunk)[70](index=70&type=chunk) - As of the date of this interim report, the company is still communicating with the relevant noteholders to seek an overall solution for the debt[67](index=67&type=chunk)[70](index=70&type=chunk) [Key financial ratios](index=14&type=section&id=Key%20financial%20ratios) As of June 30, 2025, the Group's net gearing ratio was 49% (end of 2024: 46%), the asset-liability ratio excluding contract liabilities was approximately 60% (end of 2024: 61%), and the total cash to short-term debt ratio was 0.2 times (end of 2024: 0.3 times), with the current ratio decreasing from 1.62 times to 1.57 times but remaining stable Key Financial Ratios Comparison | Indicator | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Net Gearing Ratio | 49% | 46% | | Asset-Liability Ratio Excluding Contract Liabilities | 60% | 61% | | Total Cash to Short-Term Debt Ratio | 0.2 times | 0.3 times | | Current Ratio | 1.57 times | 1.62 times | - The Group will continue to effectively manage working capital through working capital management policies, utilizing available financial resources (proceeds from sales and pre-sales, bank financing, and other borrowings), and negotiating optimized payment arrangements with contractors[68](index=68&type=chunk)[71](index=71&type=chunk) [Foreign exchange risk](index=15&type=section&id=Foreign%20exchange%20risk) The Group primarily operates in China and, apart from USD-denominated offshore senior notes, did not have other significant direct foreign exchange fluctuation risks for the six months ended June 30, 2025; the directors expect RMB exchange rate fluctuations not to have a material adverse impact on operations, and the Group has not entered into any hedging transactions - The Group primarily operates in China and, apart from USD-denominated offshore senior notes, has no other significant direct foreign exchange fluctuation risks[73](index=73&type=chunk)[78](index=78&type=chunk) - The directors expect RMB exchange rate fluctuations not to have a material adverse impact on the Group's operations[73](index=73&type=chunk)[78](index=78&type=chunk) - As of June 30, 2025, the Group has not entered into any hedging transactions and will manage foreign exchange risk by closely monitoring exchange rate movements[74](index=74&type=chunk)[78](index=78&type=chunk) [Interest rate risk](index=15&type=section&id=Interest%20rate%20risk) The Group's interest rate risk primarily arises from borrowings, most of which are denominated in RMB and influenced by the People's Bank of China's benchmark interest rates; the Group manages interest rate risk by monitoring interest rate fluctuation trends and their impact, and by adjusting its debt portfolio - The Group's interest rate risk arises from borrowings, with most borrowings denominated in RMB and primarily influenced by benchmark interest rates set by the People's Bank of China, except for fixed-rate offshore senior notes[75](index=75&type=chunk)[79](index=79&type=chunk) - The Group manages interest rate risk by closely monitoring interest rate fluctuation trends and their impact on interest rate risk, as well as by monitoring its debt portfolio[75](index=75&type=chunk)[79](index=79&type=chunk) [Pledge of assets](index=15&type=section&id=Pledge%20of%20assets) As of June 30, 2025, certain bank and other borrowings of the Group were secured by pledged time deposits, equity interests in Group companies, properties under development, completed properties held for sale, and investment properties with a total carrying value of approximately RMB13,027 million (end of 2024: RMB13,060 million) Asset Pledge Situation | Indicator | June 30, 2025 (RMB million) | December 31, 2024 (RMB million) | | :--- | :--- | :--- | | Total Carrying Value of Pledged Assets | 13,027 | 13,060 | - Pledged assets include pledged time deposits, equity interests in Group companies, properties under development, completed properties held for sale, and investment properties[76](index=76&type=chunk)[80](index=80&type=chunk) [Financial guarantees and contingent liabilities](index=16&type=section&id=Financial%20guarantees%20and%20contingent%20liabilities) As of June 30, 2025, the Group's total financial guarantees amounted to approximately RMB4,782 million, primarily comprising guarantees for purchasers' mortgage financing and guarantees for joint venture borrowings; the directors believe the likelihood of default by purchasers and joint ventures is remote, thus financial guarantees measured at fair value are insignificant, and no liabilities have been recognized Total Financial Guarantees Comparison | Indicator | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Guarantees for Mortgage Financing of Certain Purchasers | 4,548,156 | 6,042,682 | | Guarantees for Joint Venture Borrowings | 234,170 | 234,170 | | **Total** | **4,782,326** | **6,276,852** | - Guarantees for purchasers' mortgage financing terminate from the date the mortgage loan is granted until the purchaser obtains the property ownership certificate or repays the mortgage loan, whichever is earlier[82](index=82&type=chunk)[85](index=85&type=chunk) - The directors believe the likelihood of purchasers and joint ventures and associates defaulting on their payment obligations is remote, thus financial guarantees measured at fair value are insignificant, and no liabilities have been recognized[82](index=82&type=chunk)[83](index=83&type=chunk)[85](index=85&type=chunk) - As of June 30, 2025, the Group had no other significant contingent liabilities[84](index=84&type=chunk)[86](index=86&type=chunk) [Material acquisitions and disposals of subsidiaries, associates and joint ventures](index=17&type=section&id=Material%20acquisitions%20and%20disposals%20of%20subsidiaries%2C%20associates%20and%20joint%20ventures) For the six months ended June 30, 2025, the Group did not undertake any material acquisitions or disposals of subsidiaries, associates, or joint ventures - For the six months ended June 30, 2025, the Group did not undertake any material acquisitions or disposals of subsidiaries, associates, or joint ventures[87](index=87&type=chunk)[92](index=92&type=chunk) [Future plans for material investments](index=17&type=section&id=Future%20plans%20for%20material%20investments) The Group will continue to invest in its property development projects and acquire suitable land parcels as appropriate, with such investments to be funded by internal resources and external borrowings; other than this, the Group has no future plans for material investments as of the date of this report - The Group will continue to invest in its property development projects and acquire suitable land parcels as appropriate, with funding from internal resources and external borrowings[88](index=88&type=chunk)[93](index=93&type=chunk) - As of the date of this report, other than those disclosed above, the Group has no future plans for any material investments[88](index=88&type=chunk)[93](index=93&type=chunk) [Significant subsequent events](index=17&type=section&id=Significant%20subsequent%20events) Except as disclosed in this report, no other significant events have occurred after June 30, 2025, and up to the date of this report - Except as disclosed in this report, no other significant events have occurred after June 30, 2025, and up to the date of this report[89](index=89&type=chunk)[94](index=94&type=chunk) [Human resources](index=17&type=section&id=Human%20resources) As of June 30, 2025, the Group had 275 employees, a decrease from 299 at the end of 2024, with total staff salaries and benefits expenses for the first half of the year amounting to approximately RMB40 million, down from RMB63 million in the same period last year; the Group adopts a performance-based remuneration system, offering competitive compensation packages and social security, along with continuous systematic training Human Resources Overview | Indicator | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total Employees | 275 | 299 | | Total Salary and Benefits Expenses (2025 First Half) | Approximately RMB40 million | | Total Salary and Benefits Expenses (2024 First Half) | Approximately RMB63 million | - The Group adopts a performance-based remuneration system to determine employee compensation, offering competitive remuneration packages (including basic salary, performance bonuses, and year-end bonuses) and social security insurance[90](index=90&type=chunk)[95](index=95&type=chunk) - The Group provides continuous and systematic training based on employees' positions and expertise to enhance their professional knowledge in real estate and other related fields[90](index=90&type=chunk)[95](index=95&type=chunk) [Summary of property development](index=17&type=section&id=Summary%20of%20property%20development) This chapter details the Group's land reserve situation as of June 30, 2025, including the total gross floor area of completed properties, properties under development, and properties held for future development, segmented by geographical location and project type (subsidiaries, joint ventures, associates) - The Group's land reserves include the total gross floor area available for sale or lease of completed properties, the total planned gross floor area of properties under development, and the estimated total gross floor area of properties held for future development[91](index=91&type=chunk)[96](index=96&type=chunk) Total Land Reserves by Geographical Location as of June 30, 2025 | Province/City | Number of Projects | Completed GFA (square meters) | GFA Under Development (square meters) | Planned GFA for Future Development (square meters) | Total Group Land Reserves (square meters) | Percentage of Total Group Land Reserves (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Anhui | 4 | 441,055 | 118,418 | – | 509,273 | 15 | | Guangdong | 3 | 7,373 | 319,702 | 1,279,654 | 1,602,343 | 40 | | Guizhou | 1 | – | – | 234,152 | 267,212 | 6 | | Henan | 1 | 13,988 | 118,362 | – | 132,350 | 3 | | Jiangsu | 20 | 158,330 | 655,487 | – | 808,497 | 21 | | Shanghai | 1 | 14,785 | – | – | 14,785 | 0 | | Sichuan | 1 | 26,504 | – | – | 26,504 | 1 | | Zhejiang | 5 | 24,491 | – | 130,203 | 154,694 | 4 | | **Total** | **36** | **686,526** | **1,211,969** | **1,644,009** | **3,515,658** | **90%** | - Projects developed by subsidiaries, joint ventures, or associates are accounted for based on their entire total gross floor area[114](index=114&type=chunk) [Land bank breakdown by geographical location](index=18&type=section&id=Land%20bank%20breakdown%20by%20geographical%20location) As of June 30, 2025, the Group's total land reserves amounted to 3,795,222 square meters, with Guangdong Province accounting for 42%, Jiangsu Province for 29%, and Anhui Province for 15% Total Land Reserves by Province/City as of June 30, 2025 | Province/City | Total Land Reserves (square meters) | Percentage of Total Land Reserves (%) | | :--- | :--- | :--- | | Guangdong | 1,606,729 | 42 | | Jiangsu | 1,066,735 | 29 | | Anhui | 559,273 | 15 | | Guizhou | 234,152 | 6 | | Zhejiang | 154,694 | 4 | | Henan | 132,350 | 3 | | Sichuan | 26,504 | 1 | | Shanghai | 14,785 | 0 | | **Total** | **3,795,222** | **100%** | [Property projects developed by the Group's subsidiaries](index=20&type=section&id=Property%20projects%20developed%20by%20the%20Group%27s%20subsidiaries) This chapter details 41 property projects developed by the Group's subsidiaries in Anhui, Guangdong, Guizhou, Henan, Jiangsu, Shanghai, Sichuan, and Zhejiang, including project name, location, status, Group's attributable interest, site area, estimated completion date, and total land reserves - Subsidiaries developed a total of **41 projects** across provinces and cities including Anhui, Guangdong, Guizhou, Henan, Jiangsu, Shanghai, Sichuan, and Zhejiang[98](index=98&type=chunk) - Among these, the Guangzhou Zengcheng Shitan project (under development) has the largest land reserve of **814,685 square meters**, with the Group's attributable interest at **60%**[102](index=102&type=chunk) - The Fuyang Ganglong Meide Yunzhu project (under development) has a land reserve of **352,381 square meters**, with the Group's attributable interest at **57%**[101](index=101&type=chunk) [Property projects held by the joint ventures of the Group](index=29&type=section&id=Property%20projects%20held%20by%20the%20joint%20ventures%20of%20the%20Group) This chapter lists 9 property projects held by the Group's joint ventures in Jiangsu and Zhejiang, including project name, location, status, Group's attributable interest, site area, estimated completion date, and total land reserves - Joint ventures hold a total of **9 projects** located in Jiangsu and Zhejiang provinces[99](index=99&type=chunk) - The Nanjing Lanwan Jiuzhu project (under development) has a land reserve of **141,221 square meters**, with the Group's attributable interest at **25%**[110](index=110&type=chunk) - The Nantong Shiguang Yinghuayuan project (under development) has a land reserve of **142,097 square meters**, with the Group's attributable interest at **25%**[111](index=111&type=chunk) [Property projects held by the associates of the Group](index=31&type=section&id=Property%20projects%20held%20by%20the%20associates%20of%20the%20Group) This chapter lists 4 property projects held by the Group's associates in Jiangsu and Guangdong, including project name, location, status, Group's attributable interest, site area, estimated completion date, and total land reserves - Associates hold a total of **4 projects** located in Jiangsu and Guangdong provinces[99](index=99&type=chunk) - The Guangzhou Huangpu project (held for future development) has the largest land reserve of **648,340 square meters**, with the Group's attributable interest at **20%**[113](index=113&type=chunk) Supplementary Information This section covers corporate governance practices, updates on auditor's opinion resolution, securities transaction policies, interim financial review, and detailed disclosures on directors' and substantial shareholders' interests [Interim Dividend](index=33&type=section&id=Interim%20Dividend) The directors do not recommend the payment of any interim dividend for the six months ended June 30, 2025 - The directors do not recommend the payment of any interim dividend for the six months ended June 30, 2025 (2024 same period: nil)[115](index=115&type=chunk)[120](index=120&type=chunk) [Corporate Governance](index=33&type=section&id=Corporate%20Governance) The company has adopted the Corporate Governance Code set out in Appendix C1 of the Listing Rules, and for the six months ended June 30, 2025, the company has complied with the code, except for the chairman of the Board and the chief executive being the same person, an arrangement the Board believes facilitates quick decision-making and ensures power balance through the diverse backgrounds of independent directors - The company has adopted the Corporate Governance Code set out in Appendix C1 of the Listing Rules as its corporate governance practices[116](index=116&type=chunk)[121](index=121&type=chunk) - For the six months ended June 30, 2025, the company has complied with the Corporate Governance Code, except that Mr. Lu Ming, the chairman of the Board, is also the chief executive[117](index=117&type=chunk)[118](index=118&type=chunk)[121](index=121&type=chunk) - The Board believes that the current structure facilitates quick and effective formulation and implementation of business decisions, and the diverse backgrounds of non-executive and independent non-executive directors ensure a balance of power[118](index=118&type=chunk)[121](index=121&type=chunk) [Updates on the Company's Action in Resolving Disclaimer of Opinion](index=34&type=section&id=Updates%20on%20the%20Company%27s%20Action%20in%20Resolving%20Disclaimer%20of%20Opinion) In response to the auditor's disclaimer of opinion on the 2024 consolidated financial statements, the company has taken multiple measures to improve liquidity and financial position, including communicating with senior noteholders, negotiating extensions with onshore debt holders, seeking alternative financing, accelerating property sales, controlling costs, negotiating repayment with contractors, and seeking to dispose of project equity - The company's auditor issued a disclaimer of opinion on the Group's consolidated financial statements for the year ended December 31, 2024, due to uncertainties regarding going concern[123](index=123&type=chunk)[124](index=124&type=chunk) - The company has taken multiple measures, including: communicating with major senior noteholders to seek debt resolution solutions; negotiating extensions or deferrals with existing onshore debt holders; seeking other alternative financing; accelerating property sales (2025 full-year contract sales target of **RMB4,800 million**, with **RMB2,699.8 million** achieved in the first half); accelerating collection of unrecovered sales proceeds and controlling costs (targeting a **10% reduction** in total employees); negotiating repayment schedules with contractors; and seeking to dispose of equity in project development companies[124](index=124&type=chunk)[125](index=125&type=chunk) - As of June 30, 2025, the Group's total number of employees was **275** (December 31, 2024: **299**)[125](index=125&type=chunk) [Model Code for Securities Transactions](index=36&type=section&id=Model%20Code%20for%20Securities%20Transactions) The company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers set out in Appendix C3 of the Listing Rules, and all directors have confirmed compliance with the code for the six months ended June 30, 2025 - The company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers set out in Appendix C3 of the Listing Rules[126](index=126&type=chunk)[131](index=131&type=chunk) - All directors have confirmed compliance with the required standards set out in the Model Code for the six months ended June 30, 2025[127](index=127&type=chunk)[131](index=131&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=36&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company%27s%20Listed%20Securities) For the six months ended June 30, 2025, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's shares or other listed securities - For the six months ended June 30, 2025, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's shares or other listed securities[128](index=128&type=chunk)[132](index=132&type=chunk) [Review of Interim Financial Information](index=36&type=section&id=Review%20of%20Interim%20Financial%20Information) The company's audit committee has reviewed the unaudited interim financial information for the six months ended June 30, 2025, and confirmed compliance with all applicable accounting principles, standards, and requirements - The company's audit committee has reviewed the Group's unaudited interim financial information for the six months ended June 30, 2025[129](index=129&type=chunk)[133](index=133&type=chunk) - The audit committee confirmed its compliance with all applicable accounting principles, standards, and requirements[129](index=129&type=chunk)[133](index=133&type=chunk) [Changes in the Board and the Directors' Information](index=36&type=section&id=Changes%20in%20the%20Board%20and%20the%20Directors%27%20Information) Since the date of the company's 2024 annual report (March 28, 2025), there have been no changes in the Board and directors' information required to be disclosed under Rule 13.51B(1) of the Listing Rules - Since the date of the company's 2024 annual report (March 28, 2025), there have been no changes in the Board and directors' information required to be disclosed under Rule 13.51B(1) of the Listing Rules[130](index=130&type=chunk)[134](index=134&type=chunk) [Directors' and Chief Executives' Interests and Short Positions in Shares, Underlying Shares and Debentures of the Company or Its Associated Corporations](index=37&type=section&id=Directors%27%20and%20Chief%20Executives%27%20Interests%20and%20Short%20Positions%20in%20Shares%2C%20Underlying%20Shares%20and%20Debentures%20of%20the%20Company%20or%20Its%20Associated%20Corporations) As of June 30, 2025, several directors and chief executives held company shares through controlled corporations, with Mr. Lu Ming holding 22.99%, Mr. Lu Zhicong and Mr. Lu Yongnan each holding 19.31%, and Mr. Lu Jinliang and Mr. Lu Yongmao each holding 13.42% Directors' and Chief Executives' Interests in Company Shares as of June 30, 2025 | Director/Chief Executive | Capacity/Nature of Interest | Number of Shares (shares) | Approximate Percentage of Shareholding (%) | | :--- | :--- | :--- | :--- | | Mr. Lu Ming | Interest in controlled corporation | 372,867,000 (L) | 22.99 | | Mr. Lu Zhicong | Interest in controlled corporation | 313,125,000 (L) | 19.31 | | Mr. Lu Yongnan | Interest in controlled corporation | 313,125,000 (L) | 19.31 | | Mr. Lu Yongnan | Beneficial owner | 2,613,000 | 0.16 | | Mr. Lu Jinliang | Interest in controlled corporation | 217,643,000 (L) | 13.42 | | Mr. Lu Yongmao | Interest in controlled corporation | 217,643,000 (L) | 13.42 | - As of June 30, 2025, the company had **1,621,799,000 shares** in issue[141](index=141&type=chunk) - Save as disclosed above, no other directors and chief executives had any interests or short positions in the shares, underlying shares, and debentures of the company or its associated corporations required to be recorded in the register[139](index=139&type=chunk)[140](index=140&type=chunk) [Substantial Shareholders' and Other Persons' Interests and Short Positions in the Shares and Underlying Shares of the Company](index=39&type=section&id=Substantial%20Shareholders'%20and%20Other%20Persons'%20Interests%20and%20Short%20Positions%20in%20the%20Shares%20and%20Underlying%20Shares%20of%20the%20Company) As of June 30, 2025, the company's substantial shareholders included Huaxing Development Co., Ltd. (22.99%), Hualian Development Co., Ltd. (19.31%), and Hualong Development Co., Ltd. (13.42%), as well as Ms. Chen Meiqin (22.99%), Ms. Huang Xiuxue (19.47%), and Ms. Huang Guihua (13.42%) through spouse interests Substantial Shareholders' and Other Persons' Interests in Company Shares as of June 30, 2025 | Shareholder Name | Nature of Interest | Number of Shares (shares) | Approximate Percentage of Shareholding (%) | | :--- | :--- | :--- | :--- | | Ms. Chen Meiqin | Spouse's interest | 372,867,000 (L) | 22.99 | | Ms. Huang Xiuxue | Spouse's interest | 315,738,000 (L) | 19.47 | | Ms. Huang Guihua | Spouse's interest | 217,643,000 (L) | 13.42 | | Huaxing | Beneficial owner | 372,867,000 (L) | 22.99 | | Hualian | Beneficial owner | 313,125,000 (L) | 19.31 | | Hualong | Beneficial owner | 217,643,000 (L) | 13.42 | - Ms. Chen Meiqin is the spouse of Mr. Lu Ming, Ms. Huang Xiuxue is the spouse of Mr. Lu Yongnan, and Ms. Huang Guihua is the spouse of Mr. Lu Yongmao, and are therefore deemed to have an interest in the shares held by their respective spouses[148](index=148&type=chunk) - Save as disclosed above, the company has not been notified of any other persons having interests or short positions in the shares or underlying shares of the company required to be recorded in the register[146](index=146&type=chunk)[147](index=147&type=chunk) [Share Option Scheme](index=41&type=section&id=Share%20Option%20Scheme) The company conditionally adopted a share option scheme on June 20, 2020, to provide selected participants with an opportunity to acquire an interest in the company and incentivize them to enhance company value; the scheme is valid for ten years from July 15, 2020, and as of the end of the reporting period, no share options had been granted, exercised, cancelled, or lapsed, with 160,000,000 share options available for grant - The company conditionally adopted a share option scheme on June 20, 2020, to provide selected participants with an opportunity to acquire an ownership interest in the company and encourage them to enhance the value of the company and its shares[149](index=149&type=chunk)[152](index=152&type=chunk) - The share option scheme is valid and effective for ten years from July 15, 2020, and will expire on July 14, 2030[153](index=153&type=chunk)[157](index=157&type=chunk) - Under the scheme, the total number of shares that may be allotted and issued shall not exceed **10%** of the issued shares on the date trading commenced on the Stock Exchange, which is **160,000,000 shares**[150](index=150&type=chunk)[152](index=152&type=chunk) - During the reporting period, no share options were granted, exercised, cancelled, or lapsed under the share option scheme, and there were no outstanding share options under the scheme from the listing date up to June 30, 2025[156](index=156&type=chunk)[158](index=158&type=chunk) - As of January 1, 2025, and June 30, 2025, the number of options authorized for grant under the share option scheme was **160,000,000**[156](index=156&type=chunk)[158](index=158&type=chunk) Interim Condensed Consolidated Statement of Comprehensive Income For the six months ended June 30, 2025, the Group reported total revenue of RMB1,631,319 thousand, a gross loss of RMB450,002 thousand, an operating loss of RMB573,677 thousand, and a total comprehensive loss for the period of RMB666,073 thousand, with loss attributable to owners of the company at RMB329,717 thousand and basic and diluted loss per share of RMB0.20 Summary of Interim Condensed Consolidated Statement of Comprehensive Income | Indicator | 2025 First Half (RMB thousand) | 2024 First Half (RMB thousand) | | :--- | :--- | :--- | | Revenue from Contracts with Customers | 1,631,319 | 5,367,139 | | Cost of Sales | (2,081,321) | (5,076,777) | | Gross (Loss)/Profit | (450,002) | 290,362 | | Other Income/(Expenses) and Other Gains/(Losses), Net | 7,198 | (625) | | Selling and Marketing Expenses | (64,101) | (89,085) | | General and Administrative Expenses | (66,772) | (70,620) | | Operating (Loss)/Profit | (573,677) | 130,032 | | Finance Costs – Net | (29,358) | (40,709) | | Share of Results of Joint Ventures and Associates | (6,368) | (7,551) | | (Loss)/Profit Before Income Tax | (609,403) | 81,772 | | Income Tax Expenses | (56,670) | (235,714) | | Loss and Total Comprehensive Loss for the Period | (666,073) | (153,942) | | Loss Attributable to Owners of the Company | (329,717) | (76,419) | | Non-Controlling Interests | (336,356) | (77,523) | | Basic and Diluted Loss Per Share (RMB) | (0.20) | (0.05) | Interim Condensed Consolidated Statement of Financial Position As of June 30, 2025, the Group's total assets were RMB20,664,183 thousand, total liabilities were RMB13,252,115 thousand, and total equity was RMB7,412,068 thousand, with total current assets at RMB18,999,943 thousand and total current liabilities at RMB12,094,874 thousand Summary of Interim Condensed Consolidated Statement of Financial Position | Indicator | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | **Assets** | | | | Total Non-Current Assets | 1,664,240 | 1,690,070 | | Total Current Assets | 18,999,943 | 21,623,914 | | **Total Assets** | **20,664,183** | **23,313,984** | | **Equity** | | | | Capital and Reserves Attributable to Owners of the Company | 3,105,723 | 3,435,440 | | Non-Controlling Interests | 4,306,345 | 4,642,701 | | **Total Equity** | **7,412,068** | **8,078,141** | | **Liabilities** | | | | Total Non-Current Liabilities | 1,157,241 | 1,884,578 | | Total Current Liabilities | 12,094,874 | 13,351,265 | | **Total Liabilities** | **13,252,115** | **15,235,843** | | **Total Equity and Liabilities** | **20,664,183** | **23,313,984** | Interim Condensed Consolidated Statement of Changes in Equity As of June 30, 2025, total equity attributable to owners of the company was RMB3,105,723 thousand, non-controlling interests were RMB4,306,345 thousand, and total equity was RMB7,412,068 thousand, with loss attributable to owners of the company for the period at RMB329,717 thousand Summary of Interim Condensed Consolidated Statement of Changes in Equity | Indicator | June 30, 2025 (RMB thousand) | January 1, 2024 (RMB thousand) | | :--- | :--- | :--- | | **Attributable to Owners of the Company** | | | | Share Capital | 14,838 | 14,838 | | Share Premium | 1,448,564 | 1,448,564 | | Statutory Reserve | 477,072 | 379,417 | | Other Reserves | 284,235 | 284,235 | | Retained Earnings | 881,014 | 1,966,630 | | **Subtotal** | **3,105,723** | **4,093,684** | | Non-Controlling Interests | 4,306,345 | 7,254,502 | | **Total** | **7,412,068** | **11,348,186** | | Loss and Total Comprehensive Loss for the Period (Attributable to Owners of the Company) | (329,717) | (76,419) | | Loss and Total Comprehensive Loss for the Period (Non-Controlling Interests) | (336,356) | (77,523) | Interim Condensed Consolidated Statement of Cash Flows For the six months ended June 30, 2025, the Group reported net cash used in operating activities of RMB204,626 thousand, net cash from investing activities of RMB14,938 thousand, and net cash from financing activities of RMB267,727 thousand, with cash and cash equivalents at period-end totaling RMB343,816 thousand Summary of Interim Condensed Consolidated Statement of Cash Flows | Indicator | 2025 First Half (RMB thousand) | 2024 First Half (RMB thousand) | | :--- | :--- | :--- | | Net Cash (Used in)/From Operating Activities | (204,626) | 220,327 | | Net Cash From/(Used in) Investing Activities | 14,938 | (16,575) | | Net Cash From/(Used in) Financing Activities | 267,727 | (387,500) | | Net Increase/(Decrease) in Cash and Cash Equivalents | 78,039 | (183,748) | | Cash and Cash Equivalents at Beginning of Period | 265,777 | 570,167 | | Cash and Cash Equivalents at End of Period | 343,816 | 386,419 | Notes to the Interim Condensed Consolidated Financial Information This section provides detailed notes to the interim condensed consolidated financial information, covering general company data, accounting policies, financial risk management, revenue recognition, expense breakdowns, and specific financial statement items [General Information](index=51&type=section&id=General%20Information) The company was incorporated in the Cayman Islands as an exempted company with limited liability on October 8, 2018, primarily engaged in property development projects in China, with its shares listed on the Hong Kong Stock Exchange on July 15, 2020; this interim condensed consolidated financial information is presented in RMB and was approved for issue by the Board of Directors on August 29, 2025, and has not been audited - The company was incorporated in the Cayman Islands on October 8, 2018, primarily engaged in property development projects in China[175](index=175&type=chunk)[176](index=176&type=chunk)[180](index=180&type=chunk) - The company's shares were listed on the Hong Kong Stock Exchange on July 15, 2020[176](index=176&type=chunk)[181](index=181&type=chunk) - This interim condensed consolidated financial information is presented in RMB, was approved for issue by the Board of Directors on August 29, 2025, and has not been audited[177](index=177&type=chunk)[182](index=182&type=chunk) [Basis of Preparation](index=51&type=section&id=Basis%20of%20Preparation) This interim condensed consolidated financial information has been prepared in accordance with Hong Kong Accounting Standard 34 "Interim Financial Reporting" and should be read in conjunction with the annual report for the year ended December 31, 2024, and any announcements issued by the company during the interim reporting period - This interim condensed consolidated 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[178](index=178&type=chunk)[183](index=183&type=chunk) - This report should be read in conjunction with the annual report for the year ended December 31, 2024, and any announcements issued by the company during the interim reporting period[179](index=179&type=chunk)[183](index=183&type=chunk) [Accounting Policies](index=52&type=section&id=Accounting%20Policies) The accounting policies adopted by the Group are consistent with the previous financial year, with the adoption of certain revised standards; Hong Kong Financial Reporting Standard 18, mandatory from January 1, 2027, is expected to have widespread impacts on presentation and disclosure, and while significant uncertainty exists regarding the company's going concern ability, the Board has formulated various plans and measures to improve liquidity and financial position - Except for income tax estimates and the adoption of revised standards, the accounting policies adopted are consistent with those of the previous financial year and the corresponding interim reporting period[184](index=184&type=chunk)[188](index=188&type=chunk) - Hong Kong Financial Reporting Standard 18 will replace Hong Kong Accounting Standard 1 and is expected to be mandatory from January 1, 2027, with widespread impacts on presentation and disclosure[185](index=185&type=chunk)[186](index=186&type=chunk)[188](index=188&type=chunk) [Going concern](index=53&type=section&id=Going%20concern) As of June 30, 2025, the Group recorded a net loss of RMB666,073 thousand, along with substantial short-term borrowings, overdue borrowings, and a default event on senior note interest, indicating significant uncertainty regarding going concern; however, the Board has formulated various plans and measures, including communicating with creditors, seeking financing, accelerating sales, controlling costs, resolving disputes, and disposing of equity, to ensure sufficient working capital within the next twelve months - As of June 30, 2025, the Group recorded a net loss of **RMB666,073 thousand**[190](index=190&type=chunk)[191](index=191&type=chunk) - The Group's total interest-bearing bank and other borrowings and senior notes amounted to **RMB4,290,411 thousand**, of which **RMB3,375,502 thousand** are due within the next twelve months, while total cash was **RMB670,109 thousand**[190](index=190&type=chunk)[191](index=191&type=chunk) - Interest-bearing bank and other borrowings with a principal amount of **RMB373,611 thousand** were overdue and unpaid, resulting in **RMB832,500 thousand** of borrowings becoming repayable on demand[190](index=190&type=chunk)[191](index=191&type=chunk) - Interest of **USD8,576,203** related to the 2025 November Notes was not paid, constituting an event of default, and major noteholders have declared the principal and accrued unpaid interest immediately due and payable[190](index=190&type=chunk)[191](index=191&type=chunk) - The Board has taken multiple plans and measures, including communicating with noteholders, negotiating extensions with onshore debt holders, seeking alternative financing, accelerating property sales, controlling costs, resolving disputes, and disposing of equity, to ensure going concern[191](index=191&type=chunk)[192](index=192&type=chunk)[197](index=197&type=chunk)[198](index=198&type=chunk)[204](index=204&type=chunk) [Critical Accounting Estimates and Judgements](index=55&type=section&id=Critical%20Accounting%20Estimates%20and%20Judgements) The preparation of interim condensed consolidated financial information requires management to make judgments, estimates, and assumptions, and the critical accounting estimates and judgments applied are consistent with those described in the annual consolidated financial statements for the year ended December 31, 2024 - The preparation of interim condensed consolidated financial information requires management to make judgments, estimates, and assumptions, and actual results may differ from these estimates[201](index=201&type=chunk)[203](index=203&type=chunk) - The critical accounting estimates and judgments applied are consistent with those described in the annual consolidated financial statements for the year ended December 31, 2024[201](index=201&type=chunk)[203](index=203&type=chunk) [Financial Risk Management](index=56&type=section&id=Financial%20Risk%20Management) The Group faces market risks (foreign exchange risk and interest rate risk), credit risk, and liquidity risk; management aims to maintain sufficient cash and available financing, and mitigates potential impacts through various alternative plans such as reducing land acquisitions, adjusting project timelines, cost control, promotional sales, and seeking joint venture partners; the Group's capital management objective is to safeguard its ability to continue as a going concern and maintain an optimal capital structure - The Group's business activities are exposed to various financial risks: market risk (including foreign exchange risk and interest rate risk), credit risk, and liquidity risk[205](index=205&type=chunk)[209](index=209&type=chunk) - The Group's management aims to maintain sufficient cash and cash equivalents or obtain available funds through proceeds from property pre-sales and adequate available financing (including short-term and long-term borrowings and additional funds from shareholders)[207](index=207&type=chunk)[211](index=211&type=chunk) - The Group has various alternative plans to mitigate the potential impact of significant adverse changes in economic conditions on forecasted cash flows, including reducing land acquisitions, adjusting project development timelines, implementing cost control measures, promoting sales of completed properties, accelerating sales, and identifying joint venture partners[208](index=208&type=chunk)[211](index=211&type=chunk) - The Group's capital management objective is to safeguard its ability to continue as a going concern, thereby providing returns and benefits to owners and other stakeholders, while maintaining an optimal capital structure to reduce the cost of capital[218](index=218&type=chunk)[220](index=220&type=chunk) [Liquidity risk](index=56&type=section&id=Liquidity%20risk) As of June 30, 2025, the Group's total contractual undiscounted financial liabilities amounted to approximately RMB10,904,132 thousand, with approximately RMB5,946,497 thousand due within one year; the Group also provides guarantees for purchasers' mortgage financing and joint venture borrowings Financial Liabilities by Maturity as of June 30, 2025 (Unaudited) | Maturity | Amount (RMB thousand) | | :--- | :--- | | On Demand | 3,787,831 | | Within 1 Year | 5,946,497 | | 1 to 2 Years | 1,054,379 | | 2 to 5 Years | 115,425 | | Over 5 Years | – | | **Total** | **10,904,132** | Financial Liabilities by Maturity as of December 31, 2024 (Audited) | Maturity | Amount (RMB thousand) | | :--- | :--- | | On Demand | 3,752,041 | | Within 1 Year | 6,427,826 | | 1 to 2 Years | 1,171,500 | | 2 to 5 Years | 683,751 | | Over 5 Years | – | | **Total** | **12,035,118** | - The Group also provides guarantees as collateral for the repayment obligations of certain buyers of property units and the principal of borrowings from joint ventures and associates, which generate contractual cash flows only in the event of default[216](index=216&type=chunk)[217](index=217&type=chunk) [Capital risk management](index=59&type=section&id=Capital%20risk%20management) The Group's capital management objective is to safeguard its ability to continue as a going concern and maintain an optimal capital structure; as of June 30, 2025, the Group's gearing ratio was 51.2% (end of 2024: 50.0%) - The Group's capital management objective is to safeguard its ability to continue as a going concern, thereby providing returns and benefits to owners and other stakeholders, while maintaining an optimal capital structure to reduce the cost of capital[218](index=218&type=chunk)[220](index=220&type=chunk) Capital Risk Management Overview | Indicator | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Total Borrowings | 8,121,938 | 8,352,181 | | Less: Cash and Cash Equivalents | (343,816) | (265,777) | | Net Borrowings | 7,778,122 | 8,086,404 | | Total Equity | 7,412,068 | 8,078,141 | | Total Capital | 15,190,190 | 16,164,545 | | Gearing Ratio | 51.2% | 50.0% | [Fair value estimation](index=60&type=section&id=Fair%20value%20estimation) The Group's financial assets, such as financial assets measured at fair value through profit or loss, and investment properties are measured at fair value; financial assets are primarily classified under Level 1 fair value measurement, while investment properties are classified under Level 3 and valued using the income capitalization approach; the Group's finance department regularly reviews valuation reports from independent valuers - The Group's financial assets measured at fair value include financial assets measured at fair value through profit or loss, primarily classified under **Level 1** fair value measurement[222](index=222&type=chunk)[224](index=224&type=chunk)[226](index=226&type=chunk) - The Group's investment properties are measured at fair value, classified under **Level 3** fair value measurement, and valued using the income capitalization approach[227](index=227&type=chunk)[230](index=230&type=chunk)[231](index=231&type=chunk)[233](index=233&type=chunk) - The Group's finance department has a team that reviews valuations from independent valuers and regularly discusses valuation procedures and results with executive directors and valuers[237](index=237&type=chunk)[238](index=238&type=chunk)[239](index=239&type=chunk)[240](index=240&type=chunk)[241](index=241&type=chunk) [Revenue from Contracts with Customers and Segment Information](index=63&type=section&id=Revenue%20from%20Contracts%20with%20Customers%20and%20Segment%20Information) For the six months ended June 30, 2025, the Group's revenue from contracts with customers primarily consisted of property sales, totaling RMB1,631,319 thousand, all recognized at a point in time; the Group has only one operating segment, property development, with contract liabilities of approximately RMB2,033,392 thousand and expected revenue from unsatisfied contracts of RMB1,982,852 thousand to be recognized within one year - The executive directors are identified as the chief operating decision-makers, and the Group has only one operating segment, property development[242](index=242&type=chunk)[243](index=243&type=chunk)[245](index=245&type=chunk) Revenue from Contracts with Customers Comparison | Period | Property Sales (RMB thousand) | | :--- | :--- | | 2025 First Half | 1,631,319 | | 2024 First Half | 5,367,139 | - Revenue from contracts with customers recognized for the six months ended June 30, 2025, and 2024, was entirely from property sales located in China, and all recognized at a point in time[248](index=248&type=chunk) [Details of contract liabilities](index=64&type=section&id=Details%20of%20contract%20liabilities) As of June 30, 2025, contract liabilities related to property sales amounted to RMB2,033,392 thousand, a decrease from RMB2,746,401 thousand at the end of 2024 Contract Liabilities Comparison | Date | Amount (RMB thousand) | | :--- | :--- | | June 30, 2025 | 2,033,392 | | December 31, 2024 | 2,746,401 | - Contract liabilities represent prepayments received from customers for properties not yet transferred to them[250](index=250&type=chunk) [Revenue recognised in relation to contract liabilities](index=64&type=section&id=Revenue%20recognised%20in%20relation%20to%20contract%20liabilities) For the six months ended June 30, 2025, recognized property sales revenue included in the opening balance of contract liabilities was RMB1,521,000 thousand, a significant decrease from RMB5,004,494 thousand in the same period last year Revenue Recognized in Relation to Contract Liabilities Comparison | Period | Property Sales (RMB thousand) | | :--- | :--- | | 2025 First Half | 1,521,000 | | 2024 First Half | 5,004,494 | [Unsatisfied contracts related to sales of properties](index=65&type=section&id=Unsatisfied%20contracts%20related%20to%20sales%20of%20properties) As of June 30, 2025, total unsatisfied contracts related to property sales amounted to RMB2,116,079 thousand, with RMB1,982,852 thousand expected to be recognized within one year and RMB133,227 thousand after one year Unsatisfied Contracts Related to Property Sales | Recognition Time | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Within One Year | 1,982,852 | 2,281,206 | | After One Year | 133,227 | 508,062 | | **Total** | **2,116,079** | **2,789,268** | [Other (Expenses)/Income and Other (Losses)/Gains, Net](

智通财经APP讯，港龙中国地产(06968)发布公告，本公司及其附属公司(本集团)，连同其合营公司和联 营公司由2025年1月至8月共实现合同销售金额约人民币36.02亿元，同比减少0.16%。 ...

格隆汇9月15日丨港龙中国地产(06968.HK)发布公告，集团连同其合营公司和联营公司由2025年1月至8 月共实现合同销售金额约人民币36.016亿元。 ...

港龙中国地产(06968)发布公告，本公司及其附属公司(本集团)，连同其合营公司和联营公司由2025年1 月至8月共实现合同销售金额约人民币36.02亿元，同比减少0.16%。 ...

Ganglong China Property Group Limited 香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不 負 責，對 其 準 確 性 或 完 整 性 亦 不 發 表 任 何 聲 明，並 明 確 表 示，概 不 對 因 本 公 告 全部或任何部份內容而產生或因倚賴該等內容而引致的任何損失承擔任何責 任。 承董事會命 港龍中國地產集團有限公司 執 行 董 事兼董事會主席 呂 明 港龍中國地產集團有限公司 （於 開 曼 群 島 註 冊 成 立 之 有 限 公 司） （股 份 代 號：6968） 2025年8月份之未經審核營運數據 港 龍中國地產集團有限公 司（「本 公 司」）董 事 會（「董 事 會」）公 佈，本公司及其附 屬 公 司（「本 集 團」），連 同 其 合 營公司和聯營公司 由2025年1月 至8月 共 實現合同 銷 售 金額約人民 幣3,601.6百 萬 元。 上 述已披露初步數據取自本集團及其合營公司和聯營公司之管理層資 料，或 會 變更並可能與本集團按年度或半年度刊發的經審核或未經審核綜合財務報 表 所呈現的數字存在差 異。這些資料不應被視為本集團現時或將來的 ...

股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 截至月份: 2025年8月31日 狀態: 新提交 致：香港交易及結算所有限公司 公司名稱: 港龍中國地產集團有限公司 呈交日期: 2025年9月3日 I. 法定/註冊股本變動 | 1. 股份分類 | 普通股 | 股份類別 | 不適用 | | | 於香港聯交所上市 (註1) | | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 06968 | 說明 | | | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | | 法定/註冊股本 | | | 上月底結存 | | | 10,000,000,000 | HKD | | 0.01 | HKD | | 100,000,000 | | 增加 / 減少 (-) | | | | | | | HKD | | | | 本月底結存 | | | 10,000,000,000 | HKD | | 0.01 | HKD | | 100,000,000 | 本月底法 ...

Core Viewpoint - The announcement from Longfor China Properties indicates a significant decline in revenue and an increase in net loss for the six months ending June 30, 2025, compared to the same period in 2024 [1] Financial Performance - Revenue for the six months ending June 30, 2025, is approximately RMB 1,631 million, representing a year-on-year decrease of about 70% [1] - The net loss for the same period is approximately RMB 666 million, compared to a net loss of RMB 154 million for the six months ending June 30, 2024 [1] Debt Position - As of June 30, 2025, the company's bank and other borrowings amount to approximately RMB 4,290 million, which is a decrease of about 6% compared to December 31, 2024 [1]

Core Viewpoint - The company reported a significant decline in revenue and an increase in net loss for the six months ending June 30, 2025, indicating financial distress and operational challenges [1] Financial Performance - The company achieved revenue of 1.631 billion RMB, representing a 70% decrease year-on-year [1] - The net loss expanded to 666 million RMB, a year-on-year increase of 332.47% [1] - The basic loss per share was reported at 0.2 RMB [1]

[Financial Summary](index=1&type=section&id=Financial%20Summary) The company experienced a **70% revenue decline** and a significant increase in net loss in the first half of 2025, alongside a 6% reduction in total borrowings Financial Highlights | Indicator | H1 2025 (RMB million) | H1 2024 (RMB million) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 1,631 | 5,367 | -70% | | Net Loss | 666 | 154 | +332% | | Sales & Marketing and G&A Expenses (Total) | 131 | 159.7 (89+70.62) | -18% | | Bank & Other Borrowings (Period-end) | 4,290 | 4,552 (Dec 31, 2024) | -6% (vs. end of 2024) | [Interim Condensed Consolidated Financial Statements](index=2&type=section&id=Interim%20Condensed%20Consolidated%20Financial%20Statements) [Interim Condensed Consolidated Statement of Comprehensive Income](index=2&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Comprehensive%20Income) For H1 2025, revenue declined **70% to RMB 1,631 million**, resulting in a **RMB 450 million gross loss** and an expanded net loss of **RMB 666 million** Interim Condensed Consolidated Statement of Comprehensive Income | Indicator | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Revenue | 1,631,319 | 5,367,139 | | Cost of Sales | (2,081,321) | (5,076,777) | | Gross (Loss) / Profit | (450,002) | 290,362 | | Operating (Loss) / Profit | (573,677) | 130,032 | | Net Finance Costs | (29,358) | (40,709) | | (Loss) / Profit Before Income Tax | (609,403) | 81,772 | | Income Tax Expense | (56,670) | (235,714) | | Loss and Total Comprehensive Loss for the Period | (666,073) | (153,942) | | Loss Attributable to Owners of the Company | (329,717) | (76,419) | | Basic and Diluted Loss Per Share (RMB) | (0.20) | (0.05) | [Interim Condensed Consolidated Statement of Financial Position](index=3&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, total assets and liabilities decreased, with a shift from non-current to current borrowings and a decline in total equity Interim Condensed Consolidated Statement of Financial Position | Indicator | June 30, 2025 (RMB thousand) | Dec 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | **Assets** | | | | Total Non-current Assets | 1,664,240 | 1,690,070 | | Total Current Assets | 18,999,943 | 21,623,914 | | **Total Assets** | **20,664,183** | **23,313,984** | | **Equity** | | | | Total Equity | 7,412,068 | 8,078,141 | | **Liabilities** | | | | Total Non-current Liabilities | 1,157,241 | 1,884,578 | | Of which: Borrowings | 914,909 | 1,630,522 | | Total Current Liabilities | 12,094,874 | 13,351,265 | | Of which: Borrowings | 3,375,502 | 2,921,418 | | **Total Liabilities** | **13,252,115** | **15,235,843** | | **Total Equity and Liabilities** | **20,664,183** | **23,313,984** | [Notes to the Interim Condensed Consolidated Financial Information](index=5&type=section&id=Notes%20to%20the%20Interim%20Condensed%20Consolidated%20Financial%20Information) [1. General Information](index=5&type=section&id=1.%20General%20Information) The company, incorporated in the Cayman Islands, develops real estate in China, listed on HKEX in 2020, and its RMB-denominated interim financials were approved on August 29, 2025 - The company was incorporated in the Cayman Islands on **October 8, 2018**, primarily engaging in real estate project development in China[7](index=7&type=chunk) - The company's shares were listed on The Stock Exchange of Hong Kong Limited on **July 15, 2020**[7](index=7&type=chunk) - This interim condensed consolidated financial information is presented in **RMB** and was approved for issue by the Board of Directors on **August 29, 2025**[7](index=7&type=chunk) [2. Basis of Preparation](index=5&type=section&id=2.%20Basis%20of%20Preparation) The interim condensed consolidated financial information is prepared in accordance with HKAS 34 "Interim Financial Reporting," is unaudited, and should be read in conjunction with the company's annual financial report - The interim condensed consolidated financial information is prepared in accordance with **HKAS 34 "Interim Financial Reporting"**[9](index=9&type=chunk) - This interim condensed consolidated financial information for the six months ended June 30, 2025, has **not been audited**[8](index=8&type=chunk) - This interim condensed consolidated financial information should be read in conjunction with the annual report for the year ended December 31, 2024, and any announcements published by the company during the interim reporting period[9](index=9&type=chunk) [3. Accounting Policies](index=5&type=section&id=3.%20Accounting%20Policies) Accounting policies are consistent with the prior fiscal year, except for income tax estimates and adopted revised standards, with HKFRS 18 expected to significantly impact financial statement presentation and disclosure from January 1, 2027 [3(a) Revised Standards Adopted by the Group](index=5&type=section&id=3(a)%20Revised%20Standards%20Adopted%20by%20the%20Group) - Certain revised standards are applicable to this reporting period, and the Group was not required to change its accounting policies or make retrospective adjustments upon their adoption[10](index=10&type=chunk) [3(b) New and Revised Standards and Interpretations Not Yet Adopted by the Group](index=5&type=section&id=3(b)%20New%20and%20Revised%20Standards%20and%20Interpretations%20Not%20Yet%20Adopted%20by%20the%20Group) - **HKFRS 18** will replace **HKAS 1**, expected to have a broad impact on presentation and disclosure, particularly concerning the statement of comprehensive income and management-defined performance measures[11](index=11&type=chunk) - The Group expects to apply the new standard from its mandatory effective date of **January 1, 2027**, at which point comparative information for the fiscal year ended December 31, 2026, will be restated[12](index=12&type=chunk) [3(c) Going Concern](index=6&type=section&id=3(c)%20Going%20Concern) - The Group recorded a net loss of **RMB 666,073,000** for the six months ended June 30, 2025, with significant uncertainties raising substantial doubt about its ability to continue as a going concern[13](index=13&type=chunk) - As of June 30, 2025, the Group's total interest-bearing bank and other borrowings amounted to **RMB 4,290,411,000**, of which **RMB 3,375,502,000** are due within the next twelve months[13](index=13&type=chunk) - Interest-bearing bank and other borrowings totaling **RMB 373,611,000** were not repaid on time, causing certain borrowings of **RMB 832,500,000** to become repayable on demand[13](index=13&type=chunk) - Unpaid interest of **USD 8,576,203** related to the November 2025 notes led to approximately **USD 161.9 million** in principal, premium, and accrued interest being declared immediately due and payable by major noteholders[13](index=13&type=chunk) - The directors have adopted several plans and measures to improve liquidity and financial position, including communicating with noteholders for a holistic solution, negotiating rollovers or extensions with onshore debt holders, seeking alternative financing, accelerating property sales, controlling costs and expenses, resolving claim disputes, and disposing of project equity[14](index=14&type=chunk) - Despite the directors' belief in the Group's ability to continue as a going concern, significant uncertainty remains regarding management's successful implementation of these plans and measures[15](index=15&type=chunk)[16](index=16&type=chunk) [4. Revenue and Segment Information](index=8&type=section&id=4.%20Revenue%20and%20Segment%20Information) The Executive Directors are identified as the chief operating decision makers, assessing performance based on profit before tax, with property development as the sole operating segment, and all revenue from property sales in China recognized at a point in time - Property development is identified as the **sole operating segment**, with no geographical segment analysis presented[17](index=17&type=chunk) - For the six months ended June 30, 2025, and 2024, no single external customer accounted for **10% or more** of the Group's revenue[17](index=17&type=chunk) - Contract revenue with customers primarily consists of property sales in China, all of which are recognized at a point in time[17](index=17&type=chunk) Property Sales Revenue | Revenue Source | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Property Sales | 1,631,319 | 5,367,139 | [5. Net Finance Costs](index=9&type=section&id=5.%20Net%20Finance%20Costs) For H1 2025, net finance costs decreased to **RMB 29,358 thousand** from **RMB 40,709 thousand** in the prior period, primarily due to reduced bank deposit interest income and increased capitalized interest Net Finance Costs | Indicator | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Finance Income (Interest income from bank deposits) | (816) | (2,917) | | Finance Costs (Bank and other borrowings) | 190,800 | 203,188 | | Finance Costs (Lease liabilities) | 1,554 | 2,034 | | Less: Interest capitalized | (162,180) | (161,596) | | Net Finance Costs | 29,358 | 40,709 | [6. Income Tax Expense](index=9&type=section&id=6.%20Income%20Tax%20Expense) For H1 2025, income tax expense significantly decreased to **RMB 56,670 thousand**, primarily due to lower PRC corporate income tax and land appreciation tax, with varying tax rates across jurisdictions Income Tax Expense | Indicator | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Current income tax: | | | | - PRC corporate income tax | 46,504 | 188,613 | | - PRC Land Appreciation Tax | 7,362 | 32,890 | | Deferred income tax | 2,804 | 14,211 | | **Total Income Tax Expense** | **56,670** | **235,714** | - The applicable corporate income tax rate for PRC mainland group entities is **25%**[23](index=23&type=chunk) - PRC Land Appreciation Tax is levied at progressive rates ranging from **30% to 60%** on the appreciation of land value[24](index=24&type=chunk) - Hong Kong profits tax rate is **16.5%**, but no provision was made for the current period due to the absence of assessable profits[27](index=27&type=chunk) [7. Loss Per Share](index=11&type=section&id=7.%20Loss%20Per%20Share) For H1 2025, basic loss per share significantly increased to **RMB 0.20**, up from **RMB 0.05** in the prior period, with diluted loss per share being identical due to no outstanding dilutive shares Loss Per Share | Indicator | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Loss attributable to owners of the company (RMB thousand) | (329,717) | (76,419) | | Weighted average number of ordinary shares in issue (thousand shares) | 1,621,799 | 1,621,799 | | Basic loss per share (RMB) | (0.20) | (0.05) | - For the six months ended June 30, 2025, and 2024, the company had no potentially dilutive shares outstanding, thus diluted loss per share was the same as basic loss per share[31](index=31&type=chunk) [8. Trade and Other Receivables and Prepayments](index=11&type=section&id=8.%20Trade%20and%20Other%20Receivables%20and%20Prepayments) As of June 30, 2025, total trade and other receivables and prepayments slightly increased to **RMB 2,596,757 thousand**, with trade receivables primarily from property sales, all within 30 days, and a near-zero expected credit loss rate Trade and Other Receivables and Prepayments | Indicator | June 30, 2025 (RMB thousand) | Dec 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Trade receivables (from third parties) | 180,805 | 131,309 | | Other receivables | 833,019 | 796,287 | | Prepayments | 1,582,933 | 1,525,286 | | **Total** | **2,596,757** | **2,452,882** | - Trade receivables primarily arise from property sales, and generally, no credit period is granted to property purchasers[33](index=33&type=chunk) - The aging of trade receivables is entirely within **0-30 days**, with an expected credit loss rate close to zero[34](index=34&type=chunk) [9. Trade Payables, Bills Payable and Other Payables](index=12&type=section&id=9.%20Trade%20Payables%2C%20Bills%20Payable%20and%20Other%20Payables) As of June 30, 2025, total trade payables, bills payable, and other payables decreased to **RMB 2,630,044 thousand**, with the largest portion of trade payables, **RMB 1,692,939 thousand**, being over 90 days old Trade Payables, Bills Payable and Other Payables | Indicator | June 30, 2025 (RMB thousand) | Dec 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Trade payables | 2,508,064 | 3,210,536 | | Bills payable | 2,645 | 3,021 | | Other payables | 119,335 | 256,267 | | **Total** | **2,630,044** | **3,469,824** | Aging Analysis of Trade Payables | Aging of Trade Payables | June 30, 2025 (RMB thousand) | Dec 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | 0–30 days | 304,482 | 677,840 | | 31–60 days | 301,003 | 500,004 | | 61–90 days | 209,640 | 500,678 | | Over 90 days | 1,692,939 | 1,532,014 | | **Total** | **2,508,064** | **3,210,536** | [10. Share Capital](index=13&type=section&id=10.%20Share%20Capital) As of June 30, 2025, the company's authorized share capital was **10,000,000,000 shares**, with **1,621,799,000 shares** issued, totaling **RMB 14,838 thousand**, consistent with January 1, 2025 Share Capital | Indicator | Number of Shares | Share Capital (HKD/RMB thousand) | | :--- | :--- | :--- | | Authorized Share Capital (as at Jan 1, 2025 and June 30, 2025) | 10,000,000,000 | 100,000,000 (HKD) | | Issued Share Capital (as at Jan 1, 2025 and June 30, 2025) | 1,621,799,000 | 14,838 (RMB thousand) | [11. Share Option Scheme](index=13&type=section&id=11.%20Share%20Option%20Scheme) The company's share option scheme became effective on July 15, 2020, and no options have been granted, exercised, cancelled, or lapsed under the scheme since its listing date through the announcement date - The company's share option scheme became effective on **July 15, 2020** (the Listing Date)[37](index=37&type=chunk) - For the year ended December 31, 2024, and from the Listing Date up to the date of this announcement, no share options have been granted, exercised, cancelled, or lapsed under the share option scheme[37](index=37&type=chunk) [12. Dividends](index=13&type=section&id=12.%20Dividends) The Board does not recommend an interim dividend for the six months ended June 30, 2025, consistent with the prior corresponding period - The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2025 (six months ended June 30, 2024: nil)[38](index=38&type=chunk) [Management Discussion and Analysis](index=14&type=section&id=Management%20Discussion%20and%20Analysis) [H1 2025 Review and H2 2025 Outlook](index=14&type=section&id=H1%202025%20Review%20and%20H2%202025%20Outlook) In H1 2025, the real estate sector faced downward pressure, with the company delivering approximately **RMB 1,631 million** in value, focusing on marketing, cost reduction, cash collection, and quality delivery, while anticipating continued market adjustments in H2 - In H1 2025, the real estate industry faced overall downward pressure, with the Group's cumulative delivery value of approximately **RMB 1,631 million** and an area of approximately **177,042 square meters**[39](index=39&type=chunk) - The Group's strategies include strengthening marketing, balancing volume and price, reducing expenses for financial stability, focusing on core business and cash collection, and ensuring quality delivery[40](index=40&type=chunk) - The national real estate market is expected to continue facing adjustment pressure in H2 2025, and the company will remain focused on product development, customer service, strict cost control, optimizing financing structure, talent assessment, and fulfilling social responsibilities[41](index=41&type=chunk)[42](index=42&type=chunk) [Business Review](index=15&type=section&id=Business%20Review) The company's H1 revenue was approximately **RMB 1,631 million** from property sales, with total land reserves of **3,795,222 square meters** across 54 projects, predominantly in the Yangtze River Delta region [Contracted Sales](index=15&type=section&id=Contracted%20Sales) - For the six months ended June 30, 2025, the Group (including joint ventures and associates) recorded unaudited contracted sales of approximately **RMB 2,700 million**, with a contracted sales GFA of approximately **221,613 square meters**[44](index=44&type=chunk) - The average selling price for contracted sales was approximately **RMB 12,183 per square meter**[44](index=44&type=chunk) - As of June 30, 2025, the Group's contract liabilities were approximately **RMB 2,033 million**, a decrease from approximately **RMB 2,746 million** as of December 31, 2024[44](index=44&type=chunk) [Property Sales](index=16&type=section&id=Property%20Sales) - For the six months ended June 30, 2025, the Group recognized property sales revenue of approximately **RMB 1,631 million**, with a total GFA of approximately **177,042 square meters**[45](index=45&type=chunk) - The average selling price for recognized property sales was approximately **RMB 9,214 per square meter**[45](index=45&type=chunk) Recognized Property Sales by City | City | Recognized GFA (square meters) | Average Selling Price (RMB/square meter) | Recognized Revenue (RMB thousand) | | :--- | :--- | :--- | :--- | | Fuyang | 56,543 | 7,984 | 451,443 | | Taizhou | 22,428 | 14,782 | 331,536 | | Wuhu | 17,745 | 9,285 | 164,763 | | Hefei | 11,469 | 11,087 | 127,155 | | Yancheng | 21,833 | 5,774 | 126,056 | | Yangzhou | 10,454 | 7,478 | 78,175 | | Suzhou | 4,633 | 12,851 | 59,539 | | Huangshan | 5,690 | 9,895 | 56,300 | | Huaian | 3,950 | 10,569 | 41,749 | | Guangzhou | 5,081 | 7,825 | 39,758 | | Luoyang | 7,921 | 4,526 | 35,853 | | Haian | 2,916 | 11,656 | 33,990 | | Nanjing | 2,693 | 10,063 | 27,099 | | Foshan | 1,242 | 12,969 | 16,107 | | Guizhou | 1,504 | 8,588 | 12,917 | | Changzhou | 940 | 10,844 | 10,193 | | Parking spaces/facilities and other remaining units | 18,686 | - | - | | **Total** | **177,042** | **9,214** | **1,631,319** | [Land Bank](index=16&type=section&id=Land%20Bank) - As of June 30, 2025, the Group (together with its joint ventures and associates) owned **54 projects**, with a total land bank GFA of **3,795,222 square meters**[46](index=46&type=chunk) - Of these, **47 projects** are located in the Yangtze River Delta region[46](index=46&type=chunk) Land Bank by Province/City | Province/City | Total Land Bank (square meters) | Percentage of Total Land Bank (%) | | :--- | :--- | :--- | | Guangdong | 1,606,729 | 42 | | Jiangsu | 1,066,735 | 29 | | Anhui | 559,273 | 15 | | Guizhou | 234,152 | 6 | | Zhejiang | 154,694 | 4 | | Henan | 132,350 | 3 | | Sichuan | 26,504 | 1 | | Shanghai | 14,785 | 0 | | **Total** | **3,795,222** | **100%** | [Financial Review](index=18&type=section&id=Financial%20Review) The company's H1 total revenue was approximately **RMB 1,631 million**, a **70% year-on-year decrease**, resulting in a **RMB 450 million gross loss** and an expanded total comprehensive loss of **RMB 666 million**, driven by reduced property sales and increased impairment [Overall Performance](index=18&type=section&id=Overall%20Performance) - For the six months ended June 30, 2025, the Group's total revenue was approximately **RMB 1,631 million**, gross loss approximately **RMB 450 million**, net loss approximately **RMB 666 million**, and loss attributable to owners of the company approximately **RMB 330 million**[48](index=48&type=chunk) [Revenue](index=18&type=section&id=Revenue) - For the six months ended June 30, 2025, the Group's total revenue was approximately **RMB 1,631 million**, representing a year-on-year decrease of approximately **70%**[49](index=49&type=chunk) - This decrease was primarily attributable to the reduction in contracted sales and recognition of properties sold[49](index=49&type=chunk) [Cost of Sales](index=18&type=section&id=Cost%20of%20Sales) - For the six months ended June 30, 2025, the Group's cost of sales was approximately **RMB 2,081 million**, compared to approximately **RMB 5,077 million** in the prior period[50](index=50&type=chunk) - Cost of sales included a net impairment provision of approximately **RMB 392 million** (prior period: RMB 121 million) for properties under development and completed properties held for sale[50](index=50&type=chunk) [Gross (Loss) / Profit](index=18&type=section&id=Gross%20(Loss)%20%2F%20Profit) - For the six months ended June 30, 2025, the Group recorded a gross loss of approximately **RMB 450 million**, compared to a gross profit of approximately **RMB 290 million** in the prior period[51](index=51&type=chunk) - The gross loss margin was approximately **28%**, compared to a gross profit margin of approximately **5%** in the corresponding period of 2024[51](index=51&type=chunk) - The decline in gross margin was primarily due to unfavorable market conditions and increased impairment provisions for properties under development compared to the prior period[51](index=51&type=chunk) [Other Income / (Expenses) and Other Gains / (Losses) – Net](index=19&type=section&id=Other%20Income%20%2F%20(Expenses)%20and%20Other%20Gains%20%2F%20(Losses)%20%E2%80%93%20Net) - For the six months ended June 30, 2025, the Group's other income was approximately **RMB 7 million**, compared to other expenses of approximately **RMB 1 million** in the prior period[52](index=52&type=chunk) - This primarily included rental, management, and consulting service income of approximately **RMB 11 million**, offset by expenses for tax deferrals of approximately **RMB 4 million**[52](index=52&type=chunk) [Selling and Marketing Expenses](index=19&type=section&id=Selling%20and%20Marketing%20Expenses) - Selling and marketing expenses decreased by approximately **28%** during the period, from approximately **RMB 89 million** in the prior period to approximately **RMB 64 million**[53](index=53&type=chunk) - This reduction was attributable to decreased recognition of properties sold and sales commissions, effective control measures for marketing and advertising costs, and reduced staff costs[53](index=53&type=chunk) [General and Administrative Expenses](index=19&type=section&id=General%20and%20Administrative%20Expenses) - General and administrative expenses decreased by approximately **6%** during the period, from approximately **RMB 71 million** in the prior period to approximately **RMB 67 million**[54](index=54&type=chunk) - The decrease was primarily due to further streamlining of the organizational structure to reduce costs and improve efficiency[54](index=54&type=chunk) [Net Finance Costs_FinancialReview](index=19&type=section&id=Net%20Finance%20Costs_FinancialReview) - Net finance costs decreased by approximately **29%** during the period, from approximately **RMB 41 million** in the prior period to approximately **RMB 29 million**[55](index=55&type=chunk) - This decrease was attributable to a reduction in the average principal balance of interest-bearing liabilities[55](index=55&type=chunk) [Share of Results of Joint Ventures and Associates](index=19&type=section&id=Share%20of%20Results%20of%20Joint%20Ventures%20and%20Associates) - The share of results of joint ventures and associates recorded losses of approximately **RMB 6 million** and **RMB 8 million** for the six months ended June 30, 2025, and 2024, respectively[56](index=56&type=chunk) - This loss is consistent with the decline in property sales revenue from joint ventures and associates[56](index=56&type=chunk) [Income Tax Expense_FinancialReview](index=20&type=section&id=Income%20Tax%20Expense_FinancialReview) - Income tax expense recorded approximately **RMB 57 million** and **RMB 236 million** for the six months ended June 30, 2025, and 2024, respectively[57](index=57&type=chunk) [Loss and Total Comprehensive Loss for the Period](index=20&type=section&id=Loss%20and%20Total%20Comprehensive%20Loss%20for%20the%20Period) - For the six months ended June 30, 2025, the Group's loss and total comprehensive loss for the period was approximately **RMB 666 million** (prior period: RMB 154 million)[58](index=58&type=chunk) - Loss attributable to owners of the company was approximately **RMB 330 million** (prior period: RMB 76 million)[58](index=58&type=chunk) - Basic and diluted loss per share was **RMB 0.20** per share (prior period: RMB 0.05 per share)[58](index=58&type=chunk) [Liquidity and Financial Resources](index=20&type=section&id=Liquidity%20and%20Financial%20Resources) The company maintains prudent treasury management, funding operations and capital expenditures primarily through operating cash, with total cash of approximately **RMB 670 million** and total borrowings of **RMB 4,290 million** as of June 30, 2025, a **6% decrease** from year-end 2024, with **RMB 3,375 million** due within one year - The Group primarily funds its working capital, capital expenditures, and other capital requirements through cash generated from operations, including proceeds from property pre-sales and sales[59](index=59&type=chunk) - Total borrowings decreased by approximately **6%** compared to December 31, 2024[60](index=60&type=chunk) Liquidity and Financial Resources Summary | Indicator | June 30, 2025 (RMB million) | Dec 31, 2024 (RMB million) | | :--- | :--- | :--- | | Total Cash | 670 | 839 | | Total Bank and Other Borrowings | 4,290 | 4,552 | | Of which: Repayable within one year | 3,375 | 2,921 | | Of which: Repayable after one year | 915 | 1,631 | [Senior Notes](index=21&type=section&id=Senior%20Notes) The company previously redeemed senior notes via payment-in-kind, but the failure to pay **USD 8,576,203** interest on the November 2025 notes resulted in a default event on June 17, 2025, with major noteholders declaring approximately **USD 161.9 million** immediately due and payable, prompting the company to seek a holistic solution - On **November 6, 2023**, senior notes with a principal amount of approximately **USD 145 million** were fully redeemed, and new notes (2024 Senior Notes) with a total principal amount of **USD 164,411,875** were issued via payment-in-kind[61](index=61&type=chunk) - On **November 18, 2024**, the 2024 Senior Notes were fully redeemed, and new notes (November 2025 Notes) with a total principal amount of **USD 180,551,641** were issued via payment-in-kind[61](index=61&type=chunk) - Interest of **USD 8,576,203** related to the November 2025 Notes was due on **May 18, 2025**, and the company's failure to pay due to liquidity pressure constituted an event of default on **June 17, 2025**[62](index=62&type=chunk) - Major noteholders have declared the principal, premium, and accrued and unpaid interest of the November 2025 Notes, totaling approximately **USD 161.9 million**, immediately due and payable[62](index=62&type=chunk) - The company is continuing to communicate with relevant noteholders to seek a holistic solution for the related debt[62](index=62&type=chunk) [Key Financial Ratios](index=21&type=section&id=Key%20Financial%20Ratios) As of June 30, 2025, the company's net gearing ratio increased to **49%**, total cash to short-term debt ratio decreased to **0.2 times**, and current ratio slightly declined to **1.57 times**, indicating increased liquidity pressure, which the company plans to manage through working capital policies and existing financial resources Key Financial Ratios | Financial Ratio | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Net Gearing Ratio | 49% | 46% | | Gearing Ratio (excluding contract liabilities) | 60% | 61% | | Total Cash to Short-term Debt Ratio | 0.2 times | 0.3 times | | Current Ratio | 1.57 times | 1.62 times | - The company will continue to effectively manage its working capital through working capital management policies and utilize proceeds from property project sales and pre-sales, bank financing and other borrowings, and negotiated payment arrangements to manage financial resources[63](index=63&type=chunk) [Foreign Exchange Risk](index=22&type=section&id=Foreign%20Exchange%20Risk) The company primarily operates in China and faces no other significant direct foreign exchange fluctuation risks apart from USD-denominated offshore senior notes, with directors expecting no material adverse impact from RMB exchange rate fluctuations and no hedging transactions currently in place - The Group primarily operates in China and has no other significant direct foreign exchange fluctuation risks apart from its **USD-denominated offshore senior notes**[65](index=65&type=chunk) - The directors expect that fluctuations in the **RMB exchange rate** will not have a material adverse impact on the Group's operations[65](index=65&type=chunk) - As of June 30, 2025, the Group had **not entered into any hedging transactions**[65](index=65&type=chunk) [Interest Rate Risk](index=22&type=section&id=Interest%20Rate%20Risk) The company's interest rate risk primarily stems from RMB-denominated borrowings influenced by PBOC benchmark rates, while offshore senior notes are fixed-rate, with risk managed through close monitoring of rate trends and debt portfolio - The Group's interest rate risk arises from borrowings, with most denominated in **RMB** and interest rates primarily influenced by the benchmark rates set by the People's Bank of China[66](index=66&type=chunk) - Except for the fixed-rate offshore senior notes, most of the Group's borrowings are denominated in **RMB**[66](index=66&type=chunk) - The Group manages its interest rate risk by closely monitoring interest rate fluctuation trends and their impact on the Group's interest rate risk, as well as by monitoring the Group's debt portfolio[66](index=66&type=chunk) [Pledge of Assets](index=22&type=section&id=Pledge%20of%20Assets) As of June 30, 2025, certain bank and other borrowings were secured by assets with a total carrying value of approximately **RMB 13,027 million**, including pledged fixed deposits, equity interests in group companies, properties under development, completed properties held for sale, and investment properties - As of June 30, 2025, certain bank and other borrowings of the Group were secured by assets with a total carrying value of approximately **RMB 13,027 million** (December 31, 2024: RMB 13,060 million)[67](index=67&type=chunk) - The pledged assets include pledged fixed deposits, equity interests in group companies, properties under development, completed properties held for sale, and investment properties[67](index=67&type=chunk) [Financial Guarantees and Contingent Liabilities](index=22&type=section&id=Financial%20Guarantees%20and%20Contingent%20Liabilities) As of June 30, 2025, total financial guarantees amounted to **RMB 4,782,326 thousand**, primarily for purchasers' mortgage financing and joint venture borrowings, with directors deeming the likelihood of default remote, thus no significant liabilities were recognized, and no other material contingent liabilities existed Financial Guarantees | Type of Financial Guarantee | June 30, 2025 (RMB thousand) | Dec 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Guarantees for mortgage financing of certain property purchasers | 4,548,156 | 6,042,682 | | Guarantees for borrowings of joint ventures | 234,170 | 234,170 | | **Total** | **4,782,326** | **6,276,852** | - The guarantee period for purchasers extends from the mortgage loan grant date until the purchaser obtains the property ownership certificate or repays the mortgage loan, whichever is earlier[69](index=69&type=chunk) - The directors consider the likelihood of purchasers and joint ventures defaulting on their payment obligations to be remote, thus the financial guarantees measured at fair value are insignificant, and no liabilities have been recognized[69](index=69&type=chunk)[70](index=70&type=chunk) - As of June 30, 2025, the Group had no other material contingent liabilities[71](index=71&type=chunk) [Material Acquisitions and Disposals of Subsidiaries, Associates and Joint Ventures](index=23&type=section&id=Material%20Acquisitions%20and%20Disposals%20of%20Subsidiaries%2C%20Associates%20and%20Joint%20Ventures) For the six months ended June 30, 2025, the company made no material acquisitions or disposals of subsidiaries, associates, or joint ventures - For the six months ended June 30, 2025, the Group made **no material acquisitions or disposals** of subsidiaries, associates, or joint ventures[72](index=72&type=chunk) [Future Plans for Material Investments](index=23&type=section&id=Future%20Plans%20for%20Material%20Investments) The company will continue to invest in property development and acquire suitable land plots as appropriate, funded by internal resources and external borrowings, with no other material investment plans disclosed as of the announcement date - The Group will continue to invest in its property development projects and acquire suitable land plots as appropriate, with such investments funded by internal resources and external borrowings[73](index=73&type=chunk) - Save as disclosed above, as of the date of this announcement, the Group has **no other future plans for material investments**[73](index=73&type=chunk) [Human Resources](index=23&type=section&id=Human%20Resources) As of June 30, 2025, the company had **275 employees**, a decrease from 299 at year-end 2024, with total employee salary and benefits expenses of approximately **RMB 40 million**, and a performance-based compensation system with continuous training - As of June 30, 2025, the Group had **275 employees** (December 31, 2024: 299 employees)[74](index=74&type=chunk) - For the six months ended June 30, 2025, the Group's total employee salary and benefits expenses were approximately **RMB 40 million** (prior period: RMB 63 million)[74](index=74&type=chunk) - The Group adopts a performance-based compensation system for employees and provides competitive remuneration packages along with continuous and systematic training[74](index=74&type=chunk) [Other Information](index=24&type=section&id=Other%20Information) [Purchase, Redemption or Sale of the Company's Listed Securities](index=24&type=section&id=Purchase%2C%20Redemption%20or%20Sale%20of%20the%20Company%27s%20Listed%20Securities) Neither the company nor its subsidiaries purchased, sold, or redeemed any of the company's shares or other listed securities during the period - Neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's shares or other listed securities during the period[75](index=75&type=chunk) [Interim Dividend](index=24&type=section&id=Interim%20Dividend) The directors do not recommend any interim dividend for the six months ended June 30, 2025, consistent with the prior corresponding period - The directors do not recommend the payment of any interim dividend for the six months ended June 30, 2025 (six months ended June 30, 2024: nil)[76](index=76&type=chunk) [Corporate Governance](index=24&type=section&id=Corporate%20Governance) The company adopted and generally complied with the Corporate Governance Code, though the combined roles of Chairman and CEO represent a deviation, which the Board believes facilitates efficient decision-making while diverse non-executive and independent non-executive directors provide balance - The company has adopted the **Corporate Governance Code** as set out in Appendix C1 to the Listing Rules[77](index=77&type=chunk) - For the six months ended June 30, 2025, the company has complied with the Corporate Governance Code to the extent applicable and practicable, except for the deviation where the roles of Chairman of the Board and Chief Executive Officer are held by the same person[77](index=77&type=chunk) - The Board believes that the current structure facilitates efficient and effective business decision-making and implementation, with the diverse backgrounds of non-executive and independent non-executive directors providing a balance of power[78](index=78&type=chunk) [Standard Code for Securities Transactions](index=24&type=section&id=Standard%20Code%20for%20Securities%20Transactions) The company adopted the Standard Code for Securities Transactions by Directors of Listed Issuers, and all directors confirmed compliance for the six months ended June 30, 2025 - The company has adopted the **Standard Code for Securities Transactions by Directors of Listed Issuers** as set out in Appendix C3 to the Listing Rules[80](index=80&type=chunk) - All directors have confirmed that they have complied with the required standards set out in the Standard Code for the six months ended June 30, 2025[81](index=81&type=chunk) [Material Subsequent Events](index=25&type=section&id=Material%20Subsequent%20Events) No other material subsequent events occurred after June 30, 2025, up to the date of this announcement, except as otherwise disclosed herein - Save as otherwise disclosed in this announcement, no other material subsequent events occurred after June 30, 2025, and up to the date of this announcement[82](index=82&type=chunk) [Review of Unaudited Interim Financial Information](index=25&type=section&id=Review%20of%20Unaudited%20Interim%20Financial%20Information) The company's Audit Committee discussed and reviewed the unaudited interim financial information and interim results announcement for the six months ended June 30, 2025, confirming compliance with all applicable accounting principles, standards, and requirements - The company's Audit Committee has discussed with management and the Board, and reviewed the Group's unaudited interim financial information and this interim results announcement for the six months ended June 30, 2025[83](index=83&type=chunk) - The Audit Committee confirmed compliance with all applicable accounting principles, standards, and requirements[83](index=83&type=chunk) [Publication of Unaudited Interim Results Announcement and Interim Report](index=25&type=section&id=Publication%20of%20Unaudited%20Interim%20Results%20Announcement%20and%20Interim%20Report) This interim results announcement is published on the HKEX and company websites, and the interim report for the six months ended June 30, 2025, will be dispatched to shareholders and published on these websites in due course - This interim results announcement is published on the HKEX website (www.hkexnews.hk) and the company's website (www.glchina.group)[84](index=84&type=chunk) - The company's interim report for the six months ended June 30, 2025, will be dispatched to shareholders (upon request) and published on the aforementioned websites in due course[84](index=84&type=chunk)

Core Viewpoint - The company, Longfor Properties (港龙中国地产), anticipates a significant increase in losses for the six months ending June 30, 2025, compared to the same period in 2024, primarily due to reduced contract sales and adverse market conditions [1] Financial Performance - The company expects a loss attributable to shareholders of no more than RMB 330 million for the six months ending June 30, 2025, compared to a loss of approximately RMB 76 million for the same period in 2024 [1] - The total loss and comprehensive loss for the period is projected to be no more than RMB 670 million, while the total loss and comprehensive loss for the six months ending June 30, 2024, was approximately RMB 154 million [1] Contributing Factors - The increase in losses is mainly attributed to (1) a decrease in revenue from customer contracts due to reduced contract sales of properties already sold, and (2) an increase in impairment losses on properties under development due to unfavorable market conditions, leading to an overall decline in the group's gross profit margin [1]