Summary of Conference Call Notes on CR Land and CR Mixc Company Overview - **Companies Involved**: CR Land (1109.HK) and CR Mixc (1209.HK) - **Industry**: Real Estate and Property Management in China Key Points Business Development and Strategy - CR Land has a significant presence in Northern China, with 19% of its contract sales and 23% of its land bank located in this region as of 1H25 [1][3] - CR Mixc's managed malls in Northern China account for 21% of its operations, 31% of registered members, and 18% of non-commercial property management projects [1][3] Property Development (DP) - The DP business has been scaled down to focus on profitability, targeting higher-end residential markets with average project net margins of 9%-15%, compared to a group-level net margin of 6% for 2024 [3][8] - New projects like Hohhot Rui Fu and Taiyuan Rui Fu have achieved strong performance, with Taiyuan Rui Fu reporting a 93% sell-through rate and an anticipated cash net margin of 11%-13% [9][10] Mall Operations (IP) - CR Land and CR Mixc have successfully replicated their coastal success in less developed regions, with rental yields in these areas surpassing low-teens percentages [3][27] - The companies have introduced localized designs and a brand incubation model to enhance mall appeal and consumer engagement [3][30] Property Management (PM) - CR Mixc focuses on non-residential PM, leveraging SOE partnerships and expertise to win tenders for business parks, hospitals, and schools [4][40] - The Beijing region reported a 27% CAGR in managed GFA from 2021-24, indicating robust growth in property management [40] Financial Performance and Valuation - CR Land maintains a Buy rating with a 12-month NAV-based price target of HK$38, while CR Mixc also holds a Buy rating with a price target of HK$40 [4][48] - Key risks include revenue booking and rental profitability falling below expectations, as well as potential delays in mall openings due to macroeconomic pressures [5][49] Market Position and Future Outlook - CR Land is positioned to strengthen its leadership in property development and shopping mall operations during the industry downturn, with expectations of maintaining a top-5 ranking in sales [47] - CR Mixc is recognized for its strong margin sustainability and is expected to accelerate market share gains in the residential segment [48] Additional Insights - The companies are focusing on high-end luxury projects and densely populated urban districts to capitalize on housing upgrade demand [10][30] - Management emphasized the importance of a unified membership program to enhance customer loyalty and drive marketing precision, with ambitious profit growth targets for 2025 [31][30] Conclusion The conference call highlighted CR Land and CR Mixc's strategic focus on profitability, market expansion, and innovative approaches in property development, mall operations, and property management. Both companies are well-positioned to navigate the current market challenges while aiming for sustainable growth and enhanced shareholder value.

Core Insights - The article highlights the significant role of China Resources Land in the development and operation of sports venues during the 15th National Games, showcasing its capabilities as a "city investment and development operator" [2][3][8] - The company employs a unique "3+1" integrated business model, which includes three main business segments and an ecosystem element, demonstrating its comprehensive approach to urban development [3][4] - China Resources Land has been deeply involved in residential development in Shenzhen, having completed over 30 projects that provide housing for nearly 50,000 families, reflecting its commitment to high-quality living environments [6][7] Group 1: Event and Operational Strength - The 15th National Games served as a test of both the hard and soft strengths of urban construction and operational services, with China Resources Land delivering impressive results across eight major venues in Shenzhen [3] - The company's involvement in the Shenzhen Universiade Center project exemplifies its innovative approach, completing a comprehensive renovation in just 19 months, which has set a benchmark for venue operations nationwide [4] Group 2: Business Model and Urban Development - The "3+1" model of China Resources Land integrates development, operational real estate, and light asset management, along with ecosystem elements, to maximize project value and achieve resource synergy [3][4] - The company has transformed the Houhai area into a vibrant urban center over nearly 20 years, blending high-end commercial, cultural, and recreational elements [3][4] Group 3: Residential Development and Quality Living - China Resources Land has consistently focused on enhancing residential quality, with projects like "Happiness Residence" and "Yuefu" setting high standards in luxury living [6][7] - The upcoming Shenzhen Bay project is positioned as a pinnacle of high-end living, emphasizing human-centered design and luxury [6][7] Group 4: Future Outlook - The company is committed to continuing its role as a key player in urban development, leveraging its experience and capabilities to contribute to the evolution of Shenzhen into a better city [8]

Core Insights - The conference marked the launch of China Resources Land's innovative "Ruin Partner Marketing Co-Creation Plan" aimed at collaborative development and resource integration [1] - The event gathered over 250 partners from various sectors, emphasizing the importance of cooperation in enhancing marketing efforts [1] - The plan focuses on three pillars: secure cooperation guarantees, efficient transaction tools, and shared value rights, providing a comprehensive solution for industry partners [1][2] Group 1 - The conference was centered around the theme of "co-construction and win-win" and aimed to build a national resource pool and long-term communication mechanism with partners [1] - The initiative integrates internal and external resources to enhance customer reach and collaboration capabilities [1] - The launch of the new unified customer platform "Xiao Run+" will allow for full visibility of customer processes [2] Group 2 - The plan includes the introduction of a training empowerment system for partners, addressing their specific needs [2] - The overall strategy aims to transform cooperative relationships from simple business collaborations into a shared destiny community [1] - The initiative is designed to maximize the empowerment of partners across various fields, achieving a synergistic effect [2]

Company Dynamics - The company participated in a capital market open event hosted by China Resources Land and Vanke Life on November 18-19, conducting research on its Northeast and North China operations, visiting commercial and residential projects in Hohhot and Taiyuan, and engaging in discussions with company and local management [1] Market Position and Product Strategy - The company effectively captures structural opportunities in the development market, maintaining a leading position in low-bottom market areas. For the period from January to September 2025, the company's market share in Shenyang and Dalian reached approximately 10%, ranking second in the market [1] - The company leverages government-enterprise relationships and brand reputation to acquire core land parcels in high population density areas with scenic resources. It focuses on high-end products to meet the needs of improvement-oriented customers, enhancing its bargaining power [1] - The company’s "City No. 1 Project" strategy includes innovative designs, such as the first fourth-generation residential project in Shenyang, which features practical living solutions for the Northeast climate, achieving a maximum usable area ratio of 126% [1] Pricing and Sales Performance - The company’s three main projects in the Northeast region show stable pricing since 2024, with a premium of 20-30% over surrounding second-hand housing. The expected sales rate and profit margin are both positive [1] Operational Strength and Rental Growth - The company’s operational strength is highlighted by the continuous iteration of flagship projects, such as the Shenyang MixC, which has undergone three upgrades since its opening in 2011, with further enhancements planned for 2024 [2] - Growth is also anticipated from the integration of emerging projects, with four luxury brands expected to open in Changchun MixC over the next two years. Additionally, there are two and four major projects in Northeast and North China, respectively, awaiting opening [2] - The company’s held properties contributed 34% and 50% to core net profit in 2024 and the first half of 2025, respectively, indicating that this segment is expected to stabilize profits [2] Profit Forecast and Valuation - The company maintains its profit forecast and continues to rate outperforming the industry with a target price of HKD 44.63, corresponding to 0.9 times the 2026 target P/B and a potential upside of 52% [2] - The company is currently trading at 0.7 and 0.6 times the 2025 and 2026 P/B, with dividend yields of 4.7% and 5.0% for 2025 and 2026, respectively [2]

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Core Insights - The concept of "good housing" has been officially recognized in government reports, emphasizing safety, comfort, sustainability, and intelligence as core standards for residential needs in the new era [1][2] - China’s housing development is shifting focus from mere availability to quality, aiming to enhance residents' living standards and happiness through tailored solutions for diverse demographics [2][4] Group 1: Good Housing Framework - The "good housing" framework is built on respect and care for individuals, transitioning from "having housing" to "having good housing" [2] - The "good housing" system by China Resources Land includes "good products, good communities, and good services," supported by a "ten energy system" to ensure comprehensive living experiences [1][4] Group 2: Full-Cycle Renewal Technology - The "full-cycle renewal technology" allows flexible adjustments in living spaces using modular, industrialized, and column-free designs, enabling homes to adapt to changing family needs [4] - A comprehensive home renovation service system is established to cater to families with children and the elderly, ensuring homes remain aligned with evolving needs [4] Group 3: Affordable Rental Housing - The "Nest" brand under China Resources Land offers a multi-tier rental supply system, including compact units designed for young urban residents, maximizing functionality in limited space [6] - The rental model encourages tenant participation in community space improvements, fostering a sense of belonging [6] Group 4: Complete Community Development - The concept of a "complete community" is defined by a 15-minute living circle, integrating essential services like healthcare, childcare, and shopping within close proximity [8][9] - China Resources Land's diverse business operations, including commercial properties and asset management, support the development of these complete communities [9][10] Group 5: Operational Excellence - The operational strategy, termed "good maintenance," integrates housing management, community governance, and urban operations, enhancing overall service delivery [15][16] - Advanced technologies such as AI and IoT are employed to create smart community management systems, improving efficiency and safety for residents [17] Group 6: Urban Operations Model - The "Nanshan Model" exemplifies successful urban operations, focusing on integrated city services and community engagement, which can be adapted to various urban contexts across China [19] - The holistic approach to housing and community development positions "good housing" as a vital link between individual lives, community warmth, and urban growth [19]

香港交易及結算所有限公司及香港聯合交易所有限公司（「香港聯交所」）對本公告之內 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，概不就因本公 告全部或任何部份內容而產生或因倚賴該等內容而引致之任何損失承擔任何責任。 本公告僅供參考之用，並不構成收購、購買或認購證券的邀請或要約，或訂立任 何協議以作出任何該等事宜的邀請，亦不被視作收購、購買或認購任何證券的要 約邀請。 本公告並不構成亦不屬在或向美國或在任何其他司法管轄權區購買或認購證券的 任何要約或招攬其中一部分。本公告所指的證券概無及將不會根據經修訂的一九 三三年美國證券法（「證券法」）或美國任何州或其他司法管轄權區的證券法登記， 除根據證券法及適用州或地方證券法獲豁免或屬不受該等登記規定所規限的交易 外，概不可在美國境內發售或出售。本公告及其中所載資料不得直接或間接在或 向 美國 或在 任何 其他 司 法管 轄權 區派 發。 證券 將 僅依 賴證 券法 S規例 在美 國 境外 發售。概不會在或向美國或向香港公眾或在有關發售受限制或被禁止的任何其他 司法管轄權區作出證券公開發售。 在香港聯合交易所有限公司之上市通知 聯席全球協調人、聯席賬簿管理人 ...

Core Insights - China Resources Land has made significant strides in the Shanghai real estate market since its return in 2023, competing with established state-owned enterprises like Jinmao [1] - The company ranked third in sales in Shanghai for the period from January to October 2025, with a sales amount of 34.17 billion yuan, trailing only Poly Developments and China Merchants Shekou [1] - Despite a strong start, sales in October showed signs of slowing down, raising concerns about the company's ability to navigate challenges in the high-end market [1] Sales Performance - In the first seven months of 2025, sales in Shanghai accounted for approximately 20% of the company's total sales [1] - The company is expected to maintain or slightly increase its sales proportion in Shanghai due to the launch of high-end projects in the second half of the year [1] - The Feiyun Yuefu project achieved a high sales rate of 91.73%, with 677 out of 738 units sold, indicating successful marketing efforts [2] Market Challenges - High-end projects are facing pressure on sales, with newer projects showing lower absorption rates compared to earlier launches [2][4] - The Huaihai Riverside project has seen a significantly lower absorption rate, with only 74.79% and 17.8% of units sold in its two phases, respectively [5] - The competitive landscape in Shanghai's high-end market is intensifying, with other developers also vying for high-net-worth clients [4][9] Strategic Moves - The company has made strategic acquisitions, including a 24.47 billion yuan purchase of land in the Shanghai Bund area [2] - Upcoming projects like Luanqi Binjiang are expected to enter the market with a price of 136,700 yuan per square meter, contributing to the company's sales [8] - The company is also focusing on enhancing product quality and design to attract high-net-worth individuals, despite facing challenges in construction and market positioning [9][10] Financial Position - China Resources Land has successfully issued 4.3 billion yuan and 300 million USD in dual-currency green bonds, which may help reduce financing costs and support its high-end market strategy [10] - The company has been actively expanding its land reserves in Shanghai, ranking first in land acquisition in 2023 with 21.76 billion yuan [11] - However, the integration of commercial and residential developments has not met expectations, impacting overall profitability [11][12]

Core Viewpoint - China Resources Land has launched five high-end residential projects in four major cities, showcasing its ability to understand land, culture, and customer needs, thus transforming from a "space builder" to a "definer of luxury living" in the high-end residential market [4][23]. Group 1: High-End Residential Projects - The projects include Shilin Runyuan in Shanghai, Runyuan in Beijing, Luanxi in Shenzhen, and Changjiang Tianji in Wuhan, reflecting a comprehensive layout in the high-end residential market [4]. - The company emphasizes a deep understanding of land value that goes beyond traditional location-based assessments, focusing on urban context and natural resources [5][11]. Group 2: Cultural Integration and Historical Respect - In Shilin Runyuan, the development preserves 53 original site components and innovatively reuses century-old bricks, reflecting a commitment to historical continuity [7]. - The project maintains the historical street patterns of the old city and integrates historical water systems into modern ecological designs, balancing historical texture with contemporary needs [9]. Group 3: Customer Understanding and Customization - The company conducted over 300 in-depth interviews with potential customers to capture nuanced needs, emphasizing identity, cultural belonging, and family heritage in their luxury offerings [11][12]. - Customization is elevated to a comprehensive service, allowing for personalized elements that reflect family culture and lifestyle preferences [12][14]. Group 4: Urban Integration and Lifestyle Reconstruction - The company positions itself as a "co-builder" of urban areas, integrating high-end residential projects with commercial and cultural spaces to create a cohesive urban ecosystem [15][17]. - Projects like Luanqi Binjiang in Shanghai and Luanxi in Shenzhen exemplify this approach, creating vibrant living environments that connect residents to the city's cultural and social fabric [15][17]. Group 5: High-End Service and Brand Evolution - The introduction of "Li Shi Service" enhances the value of high-end properties by focusing on lifestyle content and community culture, moving beyond traditional property management [18][20]. - The company has evolved from a developer to a city operator, demonstrating a strong capability in integrating various urban functions, thus providing a high-quality living experience [20][23]. Group 6: Continuous Innovation and Market Adaptation - The company has established a responsive product development system that adapts to changing market demands, ensuring continuous evolution of its luxury offerings [21]. - The "Li Shi Service" includes 769 rigorous standards across various service scenarios, addressing the needs of high-end clientele comprehensively [22]. Group 7: Long-Term Vision and Market Leadership - The company aims to lead the high-end residential market in China through continuous innovation and a commitment to creating a sustainable lifestyle for its clients [25]. - This strategic vision positions China Resources Land as a pioneer in the luxury residential sector, moving beyond individual projects to a holistic approach to urban living [25].

Core Viewpoint - China Resources Land has initiated significant capital operations, including the resumption of offshore bond issuance and the sale of shares in its subsidiary, China Resources Vientiane Life, to raise approximately HKD 20.6 billion, aiming to supplement nearly RMB 30 billion in total funding [1][2]. Group 1: Financing Activities - The company has restarted its offshore bond issuance after a six-year hiatus, with a plan to issue up to USD 3.9 billion in medium-term notes on the Hong Kong Stock Exchange, supported by major international financial institutions [1][2]. - The share placement of 49.5 million shares at HKD 41.70 each is expected to generate net proceeds of approximately HKD 20.61 billion, reducing the company's stake in China Resources Vientiane Life from 72.29% to 70.12% [2][3]. - The total funding from both financing activities is estimated to be around RMB 295.7 billion, which will be used to optimize debt structure and support land acquisition, project development costs, and general operational funds [2][3]. Group 2: Financial Health and Market Position - Despite a healthy cash position of RMB 120.24 billion, which covers short-term debt obligations, the company's total interest-bearing debt has increased to RMB 281.3 billion, indicating a growing debt burden [3]. - The company's contract sales have decreased by 16.6% year-on-year in the first ten months of 2025, with a significant drop of 51% in October alone, highlighting challenges in sales performance and cash flow [3][4]. - The company remains committed to land acquisition, with a total of RMB 53.8 billion spent on land purchases from January to October 2025, positioning it fifth in the industry despite a general trend of contraction among peers [4]. Group 3: Industry Context and Trends - The financing actions of China Resources Land reflect a broader trend of financing differentiation within the real estate sector, where access to offshore capital markets has reopened but with varying costs and conditions [6][7]. - The reliance on domestic financing channels has increased, with overseas bond financing accounting for only 2% of total bond financing in the first ten months of the year, while domestic credit bonds and ABS dominate the market [7]. - The competitive landscape is intensifying, with state-owned enterprises benefiting from lower financing costs and larger funding amounts, further exacerbating the industry’s "Matthew Effect" [7].