Core Viewpoint - Under the macro backdrop of industry adjustment, the company demonstrates strong resilience through its "residential + commercial" dual-drive strategy, maintaining positive profitability and steady operational development [1] Financial Performance - The company reported a revenue of 22.1 billion, with a net profit attributable to shareholders of 0.895 billion and a net profit excluding non-recurring items of 0.947 billion, achieving a gross margin of 26.85%, an increase of 5.25 percentage points year-on-year [3] - The company achieved a contract sales amount of 10.33 billion and a contract sales area of 1.335 million square meters, with a cash collection amount of 11.884 billion, resulting in a cash collection rate of 115.05% [3] - As of the reporting period, the company had a cash balance of 9.183 billion and a net debt ratio of 53.40%, maintaining a low level of debt [3] Debt Management - The company actively adjusted its debt structure, reducing the financing balance to 52.276 billion, a decrease of 1.374 billion from the beginning of the year, and reducing joint venture interest-bearing liabilities to 2.582 billion, down 0.691 billion [4] - The company has maintained a good credit system, being one of the few private real estate companies in the industry to adhere to a "zero default" policy [7] Commercial Operations - The company achieved a total commercial operating revenue of 6.944 billion, a year-on-year increase of 11.8%, with property leasing and management gross profit contributing 4.573 billion, increasing its share of total gross profit from 57.21% to 77.06% [4] - The company has established a strong competitive moat in the commercial sector, with a total of 205 integrated projects across 141 cities and a stable occupancy rate of 97.81% [5] Strategic Initiatives - The company has expanded its commercial scale and is focusing on refined operations, implementing a "five-sided management philosophy" to enhance operational efficiency [5] - The company has also ventured into construction management, signing new contracts for over 3.05 million square meters in the first half of 2025, positioning itself among the top 10 in brand value for construction management in China [8]

Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company has experienced a double-digit growth in commercial management revenue, while the turnover scale continues to decline, and gross profit margins remain under pressure [6] - The company maintains its profit forecast, expecting net profits attributable to the parent company to be 1.05 billion, 1.50 billion, and 1.75 billion yuan for 2025-2027, with corresponding EPS of 0.46, 0.67, and 0.78 yuan [6] - The current stock price corresponds to P/E ratios of 32.0, 22.3, and 19.1 for the years 2025, 2026, and 2027 respectively [6] Financial Performance Summary - In the first half of 2025, the company achieved operating revenue of 22.1 billion yuan, a year-on-year decrease of 34.8% [7] - The net profit attributable to the parent company was 895 million yuan, down 32.1% year-on-year [7] - The company reported a cash flow from operating activities of 286 million yuan, a significant decline of 86.3% year-on-year [7] - The gross profit margins for real estate development and property leasing and management were 7.96% and 71.20%, respectively, showing declines of 2.97 percentage points and 1.01 percentage points year-on-year [7] Sales and Rental Performance - The company recorded a contract sales area of 1.335 million square meters, a year-on-year decrease of 59.1%, with a contract sales amount of 10.33 billion yuan, down 56.2% [8] - The total cash inflow was 11.88 billion yuan, with a cash recovery rate of 115% [8] - The company has a total of 1,179.2 million square meters of unsold area and cash on hand of 9.183 billion yuan [8] Property Leasing Growth - The company’s rental properties performed well, achieving commercial operating income of 6.944 billion yuan, a year-on-year increase of 11.78% [9] - As of the end of the first half of 2025, the company operated 205 Wuyue Plazas, with 174 currently in operation and a total operating area of 16.08 million square meters, achieving a rental rate of 97.81% [9] - The total foot traffic for Wuyue Plaza reached 950 million, an increase of 16% year-on-year, with total sales of 51.5 billion yuan, up 16.5% [9]

Core Viewpoint - The company experienced a significant decline in revenue and profit in the first half of 2025, primarily due to a drop in residential development revenue, while its property leasing and management business remained stable [1][2]. Group 1: Financial Performance - In the first half of 2025, the company achieved operating revenue of 22.1 billion yuan, a year-on-year decrease of 34.82%, and a net profit attributable to shareholders of 0.895 billion yuan, down 32.11% [1]. - Residential development revenue was 15.2 billion yuan, a decline of 45% year-on-year, while property leasing and management revenue was 6.4 billion yuan, an increase of 10.66% [1]. - The gross profit margins for residential development and property leasing and management were 7.96% (down 2.97 percentage points) and 71.2% (down 1.01 percentage points), respectively [1]. Group 2: Sales and Contracts - The company reported a contract sales amount of approximately 10.33 billion yuan in the first half of 2025, a decrease of about 56.15% year-on-year, with a contract sales area of approximately 1.335 million square meters, down about 59.08% [1]. - As of June 30, 2025, the company had unsold area of 11.79 million square meters [1]. Group 3: Commercial Operations - The total revenue from commercial operations in the first half of 2025 was approximately 6.944 billion yuan, reflecting a year-on-year growth of 11.78%, with total sales (excluding vehicle sales) exceeding 51.5 billion yuan, up 16.5% [2]. - The company operates 205 Wuyue Plazas across 141 cities, with 174 currently open and a total area of 16.08 million square meters, achieving an occupancy rate of 97.81% [2]. Group 4: Debt and Cash Flow - As of June 30, 2025, the company had interest-bearing liabilities of 52.276 billion yuan, with an average financing cost of 5.55% and a net debt ratio of 53.4% [2]. - The company successfully repaid 1.067 billion yuan of domestic and international bonds in the first half of 2025 and secured approximately 4.479 billion yuan in new financing [2]. - The debt structure has been optimized, with a principal coverage ratio greater than 2 times based on Wuyue Plaza assets and an interest coverage ratio greater than 4 times based on total commercial operating revenue [2]. Group 5: Investment Outlook - The company has completed its nationwide layout of Wuyue Plazas and has demonstrated strong operational capabilities in lower-tier markets, ensuring stable growth in its commercial management business [3]. - With adjustments in residential development, the company is expected to achieve a "residential + commercial" dual-drive model in the future [3]. - EPS estimates for 2025-2027 are projected at 0.25, 0.32, and 0.36 yuan, respectively, with a target price of 19 yuan for 2025, corresponding to 0.7 times PB, maintaining a "recommended" rating [3].

Summary of the Conference Call Industry Overview - **Industry**: Property Market in Mainland China and Hong Kong SAR - **Key Insights**: The property market is experiencing mixed signals with leading indicators in Mainland China showing declines while Hong Kong sees strong tourist arrivals. Mainland China Property Market - **Leading Indicators**: - Centaline tier-1 cities' secondary asking price index decreased from 19.4 to 18.5, marking the lowest since May 2024 [4] - Centaline manager confidence index fell from 45 to 44, reaching a new low since October 2024 [4] - **Sales Performance**: - 60-city primary sales increased by 1% year-over-year, recovering from a previous decline of 8% [4] - Sales registrations in Beijing improved by 17% year-over-year following policy easing on August 7, but asking prices remained stable [4] - 12-city secondary sales year-over-year growth improved from 4% to 6% [4] - **Market Dynamics**: - The sector's share price rose by 3% last week, with Vanke outperforming at +9% [4] - Notable underperformers included Shimao (-14%) and A-Living (-7%) [4] - **Investment Recommendations**: - Top picks include CR Land, CR Mixc, and Jinmao, with potential upside in laggards like COLI, COPH, and Longfor [4] Hong Kong Property Market - **Tourism Impact**: - Tourist arrivals increased by 1% week-over-week to 1.24 million, the highest year-to-date, with a year-over-year growth of 19% [4] - **Residential Sales**: - Residential sell-through rates have slowed, with Blue Coast II achieving a 56% sell-through rate, lower than expected [4] - Home price index fell by 0.5% week-over-week [4] - **Market Indicators**: - Centa Valuation Index rose to 65.2, indicating banks are revising up valuations, which supports price stabilization [4] - Secondary transactions in top 35 estates increased by 52% week-over-week to 82 units [4] - **Investment Recommendations**: - Among landlords, top picks include Swire Prop, Hang Lung, Wharf REIC, and Link REIT; among developers, Henderson and Sino are favored [4] Additional Insights - **Market Sentiment**: - The overall sentiment in the property market remains cautious, with leading indicators suggesting potential challenges ahead [4] - **Credit Views**: - Vanke reported a quarterly net loss of RMB 6 billion, with net gearing rising to 90% in Q2 2025, but is not expected to default due to support from Shenzhen Metro [9] - **Share Price Movements**: - The property sector in Mainland China and Hong Kong showed varied performance, with some companies experiencing significant fluctuations in share prices [4][55] This summary encapsulates the key points from the conference call regarding the property markets in Mainland China and Hong Kong, highlighting both challenges and opportunities for investors.

Core Viewpoint - The company demonstrates strong resilience and positive performance through its "residential + commercial" dual-driven strategy amidst industry uncertainties, maintaining profitability and enhancing operational contributions [4]. Financial Performance - In the first half of the year, the company achieved revenue of 22.1 billion yuan and a net profit attributable to shareholders of 895 million yuan, with a gross margin of 26.85%, an increase of 5.25 percentage points year-on-year [1]. - The company reported a cash balance of 9.183 billion yuan and a net debt ratio of 53.40%, indicating a solid financial foundation [1]. - The company’s contract sales amounted to 10.33 billion yuan, with a collection rate of 115.05%, reinforcing its cash flow stability [1][2]. Debt Management - The company actively adjusted its debt structure, reducing its financing balance to 52.276 billion yuan, down by 1.374 billion yuan from the beginning of the year [2]. - The company’s interest-bearing liabilities related to joint ventures decreased to 2.582 billion yuan, reflecting a proactive approach to leverage reduction and cash flow management [2]. Commercial Operations - The commercial sector contributed significantly to the company’s performance, with total commercial operating revenue reaching 6.944 billion yuan, a year-on-year increase of 11.8% [3]. - The gross profit from property leasing and management reached 4.573 billion yuan, accounting for 77.06% of the company’s total gross profit, up from 57.21% in the previous year [3][5]. Strategic Developments - The company has expanded its commercial footprint, operating 205 integrated projects across 141 cities, with a stable occupancy rate of 97.81% [5]. - The company’s new management business has signed over 3.05 million square meters in new contracts, positioning it among the top 10 in brand value for construction management in China [8]. Financing Strategy - The company successfully issued $300 million in senior unsecured bonds and 1 billion yuan in medium-term notes, maintaining a low financing cost [7]. - The company’s diversified financing approach and strong cash reserves have established it as one of the few private real estate firms with a "zero default" record [7].

Investment Rating - The report maintains a "Recommended" rating for the company [1][7]. Core Views - The company reported a revenue of 22.1 billion yuan for the first half of 2025, a year-on-year decrease of 34.8%, with a net profit of 0.89 billion yuan, down 32.1% year-on-year [3][6]. - The company's commercial operations remain stable, with a total of 205 Wuyue Plazas opened or under construction, achieving a rental rate of 97.81% [6][7]. - The financing cost has decreased, with an average financing cost of 5.55% at the end of the period, down 0.37 percentage points from the end of 2024 [6][7]. Financial Performance Summary - Revenue projections for 2025-2027 are 61.943 billion yuan, 44.103 billion yuan, and 32.813 billion yuan, respectively, with year-on-year declines of 30.4%, 28.8%, and 25.6% [5][9]. - Net profit for the same period is projected to be 760 million yuan, 779 million yuan, and 894 million yuan, with year-on-year growth rates of 1.1%, 2.5%, and 14.8% [5][9]. - The gross margin is expected to improve from 19.9% in 2025 to 21.2% in 2027, while the net margin is projected to increase from 1.2% to 2.7% over the same period [5][9]. Operational Highlights - The company has successfully issued 1 billion yuan in medium-term notes at a historical low interest rate of 2.68% [6][7]. - The total sales volume for Wuyue Plaza reached over 51.5 billion yuan, with a year-on-year increase of 16.5% [6][7]. - The company has maintained positive operating cash flow for eight consecutive years, optimizing its financing structure and ensuring full repayment of due debts [6][7].

Core Viewpoint - Under the macro backdrop of industry adjustment, the company demonstrates strong resilience through its "residential + commercial" dual-drive strategy, maintaining positive profitability and steady operational development [1] Financial Performance - In the first half of 2025, the company achieved revenue of 22.1 billion, with a net profit attributable to shareholders of 0.895 billion and a non-deducted net profit of 0.947 billion, reflecting a gross margin of 26.85%, an increase of 5.25 percentage points year-on-year [2] - The company reported a contract sales amount of 10.33 billion and a sales area of 1.335 million square meters, with a cash collection amount of 11.884 billion, resulting in a cash collection rate of 115.05% [2] - As of the reporting period, the company had a cash balance of 9.183 billion and a net debt ratio of 53.40%, indicating a solid financial foundation [2] Debt Management - The company actively adjusted its debt structure, reducing the financing balance to 52.276 billion, down by 1.374 billion from the beginning of the year, and reducing joint venture interest-bearing liabilities to 2.582 billion [3] - The company emphasizes "delivery assurance" as a core responsibility, completing over 16,000 residential deliveries in the first half of the year [3] Commercial Operations - The company achieved commercial operating revenue of 6.944 billion, a year-on-year increase of 11.8%, with property leasing and management gross profit contributing 77.06% to total gross profit [4] - The company has expanded its commercial footprint, with 205 integrated projects across 141 cities and a stable occupancy rate of 97.81% [4] Strategic Initiatives - The company adheres to a "five-sided management philosophy" focusing on quality, customer satisfaction, professional craftsmanship, green intelligence, and mutual engagement, enhancing its competitive edge in offline commerce [5] - The company has successfully integrated sports and commercial activities, exemplified by the "I Love You · May" campaign and collaborations with top sports IPs [5] Financing Strategy - The company successfully issued a $300 million senior unsecured bond and a 1 billion medium-term note, maintaining a low financing cost [7] - The company has diversified its financing channels, with approximately 4.479 billion in new financing secured against operational properties [7] Construction Management Business - The company's construction management business has seen significant growth, with over 3.05 million square meters of new signed area in the first half of 2025, contributing to a sustainable income model [8]

Core Viewpoint - Under the macro backdrop of industry adjustment, the company demonstrates strong resilience through its "residential + commercial" dual-drive strategy, maintaining positive profitability and steady operational development [1][2]. Financial Performance - The company achieved a revenue of 22.1 billion and a net profit attributable to shareholders of 0.895 billion, with a gross margin of 26.85%, an increase of 5.25 percentage points year-on-year [2]. - The company reported a contract sales amount of 10.33 billion and a collection amount of 11.88 billion, with a collection rate of 115.05% [2]. - As of the reporting period, the company had a cash balance of 9.183 billion and a net debt ratio of 53.40%, indicating a solid financial foundation [2][3]. Debt Management - The company actively adjusted its debt structure, reducing its financing balance to 52.276 billion, a decrease of 1.374 billion from the beginning of the year [3]. - The company’s interest-bearing liabilities from joint ventures decreased to 2.582 billion, down 0.691 billion from the beginning of the year [3]. Commercial Operations - The company’s commercial operations generated a total revenue of 6.944 billion, a year-on-year increase of 11.8%, with a gross margin of 71.20% [4]. - The company has established a presence in 141 cities with 205 integrated projects, with a total opening area of 16.0814 million square meters and a stable occupancy rate of 97.81% [4]. Strategic Initiatives - The company emphasizes a "five-sided management philosophy" focusing on quality, customer satisfaction, professional craftsmanship, green intelligence, and mutual engagement [5]. - The company has successfully integrated sports and commercial activities, enhancing consumer engagement and driving business momentum [5][6]. Financing Strategy - The company successfully issued a $300 million senior unsecured bond and a 1 billion medium-term note, maintaining a low financing cost [7]. - The company has diversified its financing channels, with approximately 4.479 billion in new financing secured against its commercial properties [7]. Construction Management Business - The company’s construction management segment achieved a breakthrough with over 3.05 million square meters of new signed area in the first half of 2025, managing a total of 1.9 million square meters [8]. - This segment is contributing to a sustainable management fee income system, becoming a new profit driver for the company [8].

Core Insights - New City Holdings reported a revenue of 22.1 billion yuan and a net profit of 0.895 billion yuan for the first half of 2025, with a gross margin of 26.85%, reflecting a year-on-year increase of 5.25 percentage points [1] - The company achieved a contract sales amount of 10.33 billion yuan and a collection rate of 115.05%, indicating strong cash flow management [1][2] - New City Holdings has expanded its commercial operations, achieving a total commercial revenue of 6.944 billion yuan, a year-on-year growth of 11.8%, with a gross margin of 71.20% [2][3] Financial Performance - The company maintained a cash balance of 9.183 billion yuan and a net debt ratio of 53.40%, indicating a solid financial position [1] - The financing balance was reduced to 52.276 billion yuan, down by 1.374 billion yuan from the beginning of the year, reflecting ongoing debt structure optimization [2] - Operating cash flow remained positive at 0.286 billion yuan, further strengthening the company's financial fundamentals [1] Business Operations - New City Holdings completed the delivery of over 16,000 residential units in the first half of the year, emphasizing its commitment to "guaranteeing delivery" [2] - The company has established a presence in 141 cities with 205 comprehensive projects, with a stable rental rate of 97.81% for its Wuyue Plaza [3] - The construction management business has seen significant growth, with over 3.05 million square meters signed in the first half of 2025, contributing to a sustainable income model [3]

Core Insights - New City Holdings reported a stable performance in the first half of 2025, with operating revenue of 22.1 billion yuan and a net profit attributable to shareholders of 0.895 billion yuan, reflecting a solid foundation for future performance [1][2] Financial Performance - The company achieved a gross profit margin of 26.85%, an increase of 5.25 percentage points year-on-year [1] - The cash balance at the end of the reporting period was 9.183 billion yuan, indicating ample liquidity [1] - The net debt ratio stood at 53.40%, maintaining a low level [1] Sales and Revenue - Contract sales amounted to 10.33 billion yuan, with a sales area of 1.335 million square meters [1] - The collection amount reached 11.884 billion yuan, with a collection rate of 115.05% [1] - Commercial operation revenue for the first half of 2025 was 6.944 billion yuan, a year-on-year increase of 11.8% [2] Debt Management - The financing balance at the end of June 2025 was 52.276 billion yuan, reduced by 1.374 billion yuan since the beginning of the year [2] - Interest-bearing liabilities for joint ventures decreased to 2.582 billion yuan, down by 0.691 billion yuan from the beginning of the year [2] Delivery and Project Management - The company completed the delivery of over 16,000 residential units in the first half of 2025 [2] - New City Holdings has expanded its management projects to 115, with a total managed area exceeding 19 million square meters [3] Commercial Expansion - The company has established a presence in 141 cities with 205 comprehensive projects, with a total opening area of 16.0814 million square meters and a stable rental rate of 97.81% [3] - The construction management business has signed over 3.05 million square meters in new contracts in the first half of 2025, contributing to a sustainable income system [3]