Core Viewpoint - Country Garden achieved a contract sales amount of approximately RMB 3.08 billion in April 2025, indicating a significant performance in the real estate market [1] Group 1: Sales Performance - The company and its subsidiaries, along with joint ventures and associates, reported a contract sales amount attributable to shareholders of approximately RMB 3.08 billion for April 2025 [1] - The total contract sales area attributable to shareholders was approximately 380,000 square meters [1]

Core Viewpoint - Country Garden Services has implemented multiple risk control measures in response to its financial arrangements and support for property delivery commitments [1][2]. Financial Arrangements - Country Garden Services announced a loan agreement with two companies, providing a total of 1 billion RMB in revolving loans, aimed at supporting property delivery efforts [2]. - The loan will be funded from internal resources and is secured by shares held by the major shareholder, Yang Huiyan [2][3]. - The loan has a term of 5 years with an annual interest rate of 5%, which is higher than typical bank interest rates, potentially benefiting the company's cash reserves [4]. Shareholder Protection Measures - The two companies involved in the loan hold significant shares in Country Garden Services, with a combined total of approximately 16.26% of the company's shares pledged as collateral for the loan [3]. - In case of default, dividends from the pledged shares can be used to pay interest, and the company has the option to buy back the pledged shares at a price below net asset value [3]. Business Impact - As the construction and delivery of properties under Country Garden accelerate, the management area for Country Garden Services is expected to increase, leading to higher revenue from property management services [4]. - For the fiscal year 2024, Country Garden Services reported total revenue of 43.99 billion RMB, a year-on-year increase of 3.2%, while gross profit decreased by 3.8% [4]. Market Reaction - Following the announcement, Country Garden Services' stock price fell by 5.41%, trading at 6.65 HKD [5].

Urbanization and Social Responsibility - Country Garden Holdings reported a significant contribution to China's urbanization, having provided modern urban landscapes to over 1,400 towns and housing for more than 5 million homeowners[9] - The company has engaged in charitable donations exceeding 10 billion yuan, aiding 490,000 individuals in poverty alleviation efforts across 16 provinces and 57 counties[10] - Country Garden's mission is to create a better society through its existence, focusing on social responsibility and community welfare[24] Business Strategy and Development - In 2024, Country Garden aims to enhance its real estate business by integrating community-related services and creating a comprehensive resource platform throughout the property lifecycle[21] - Future strategies include actively exploring light asset management and construction services to leverage the group's extensive expertise in design, development, and customer resources[8] - The company aims to adapt to the evolving market demands and enhance its competitive edge through a dual business model of development and management[39] - The company is focused on maintaining operational stability and unity within its core management team to navigate the challenges in the real estate industry[38] - The company is committed to ensuring cash flow safety and is actively considering various debt management measures to alleviate liquidity pressure[96] Financial Performance - The company achieved a revenue of approximately RMB 252.8 billion for the year ending December 31, 2024, with over 380,000 housing units delivered, covering an area of about 46.08 million square meters across 242 cities[36] - The company reported a contract sales amount attributable to shareholders of approximately RMB 47.2 billion, corresponding to a contract sales area of about 4.92 million square meters[38] - The company's revenue for 2024 is approximately RMB 252,756 million, a decrease of about 37.0% from RMB 401,015 million in 2023[71] - Revenue from real estate development in 2024 is approximately RMB 245,719 million, down 37.2% from RMB 391,251 million in 2023[72] - The loss attributable to the company's shareholders for the fiscal year 2024 was approximately RMB 32,835 million, a decrease of 81.6% compared to RMB 178,400 million in 2023[77] Construction and Technological Innovation - The establishment of the Bozhilin Robotics Company focuses on developing construction robots to improve construction intelligence and efficiency[8] - The company is committed to technological innovation, forming a technology construction group that incorporates building robots, new assembly methods, and BIM digitalization[8] - The company is enhancing its construction capabilities through the integration of construction robots, new assembly methods, and BIM digitalization to improve cost control[39] Market Expansion and Diversification - The company has expanded its operations to all provinces and municipalities in mainland China, strategically selecting high-growth economic areas for property development[21] - 79% of the contract sales were from regions outside Guangdong Province, indicating the company's efforts in regional diversification[41] - As of December 31, 2024, the group had a total land reserve of approximately 112.5 million square meters, with 78% located outside Guangdong Province[54] Governance and Management - The company emphasizes maintaining high standards of corporate governance, focusing on achieving and maintaining a quality board and effective risk management[136] - The board consists of 5 executive directors, 1 non-executive director, and 3 independent non-executive directors, ensuring a diverse governance structure[141] - The company has adopted a board diversity policy, considering various factors such as gender, age, and professional experience[147] Employee and Talent Management - As of December 31, 2024, the company employed approximately 22,794 full-time employees, with a focus on talent development and training programs[95] - The company has implemented stock option and share incentive plans to enhance employee motivation and retention[95] - The age distribution shows that 24.21% of employees are 30 years or younger (5,519), while 55.15% are aged 31-40 (12,570)[156] Risk Management - The risk management framework is based on the COSO internal control framework, comprising eight interdependent components[197] - The executive management team is responsible for managing group-level risks[200] - The company emphasizes compliance with applicable laws and regulations as part of its risk management objectives[196]

Core Viewpoint - Country Garden has sold its 11.063% stake in Blue Arrow Aerospace for a total consideration of 1.305 billion yuan, marking a strategic move to alleviate liquidity pressure and focus on operational funding [2]. Group 1: Company Actions - Country Garden has reached an agreement to sell its entire stake in Blue Arrow Aerospace, which it had held since 2019 through several rounds of capital increases [2]. - The proceeds from the sale will be primarily used for general operational funding, particularly for project construction related to ensuring housing delivery [2]. - The company is actively addressing its debt restructuring, with a proposed restructuring plan covering approximately 14.074 billion USD in outstanding principal and accrued unpaid interest [4]. Group 2: Financial Performance - As of the end of 2024, Country Garden reported a total revenue of approximately 252.8 billion yuan, with a net loss attributable to shareholders of about 32.8 billion yuan, reflecting a year-on-year reduction of over 80% in losses [5]. - The company has disposed of non-salable assets and mobilized stagnant funds, recovering over 60 billion yuan since 2022, and has delivered around 1.7 million housing units in the past three years [5]. - Country Garden's total assets stand at approximately 1,035.8 billion yuan, with total liabilities around 984.6 billion yuan, resulting in a net asset value of about 51.3 billion yuan, maintaining a positive net asset position [5]. Group 3: Industry Developments - Blue Arrow Aerospace, established in 2015, is the first private launch vehicle company in China to achieve successful orbit insertion using self-developed liquid engines [2]. - The company made significant advancements in commercial spaceflight, successfully launching the world's first liquid oxygen-methane rocket, "Zhuque-2," in July 2023, and followed up with another successful launch in December 2023 [3]. - The commercial space sector in China has seen rapid growth, with the market size increasing from 0.8 trillion yuan in 2019 to 1.9 trillion yuan in 2023, reflecting a compound annual growth rate of 23.3% [3].

Core Viewpoint - Country Garden is selling approximately 11.063% of its shares in Blue Arrow Aerospace through a series of share transfer agreements, indicating a strategic move to divest part of its investment in the aerospace sector [1] Summary by Relevant Sections Share Transfer Agreement - On April 25, 2025, Country Garden entered into a share transfer agreement to sell a total of 15,798,112 shares of Blue Arrow Aerospace, representing about 6.527% of the company, at a price of RMB 48.74 per share, totaling approximately RMB 769,999,978.88 [1] - Prior to this, on April 7, 2025, Country Garden had also agreed to sell an additional 10,977,780 shares, equivalent to about 4.536% of Blue Arrow Aerospace, at the same price per share, amounting to approximately RMB 535,056,997.20 [1]

Group 1 - The core point of the article is that Country Garden Services Holdings Company Limited has applied for a patent for a multi-task execution method, system, device, and medium, which aims to simplify task management and enhance user experience, particularly for older users [1] Group 2 - Country Garden Services Holdings Company Limited was established in 2004 and is located in Foshan, primarily engaged in the real estate industry [2] - The company has a registered capital of 36 million RMB and has invested in 189 enterprises, participated in 2,310 bidding projects, and holds 291 trademark records and 38 patent records [2]

金十数据4月8日讯，碧桂园（02007.HK）发布未经审核运营数据，3月单月公司实现权益的合同销售金 额约32.1亿元，权益合同销售建筑面积约40万平方米。今年1至3月，碧桂园实现权益合同销售金额77.7 亿元，同比下降42.49%；权益合同销售建筑面积约98万平方米。对于当前的形势，在4月7日召开的内 部管理会上，碧桂园内部分析称，政策利好支持下，房地产市场"止跌回稳"取得一定成效，自去年四季 度以来，重点城市新房销售量已连续两个季度保持修复态势，但行业整体仍然承压。同时，碧桂园还提 出，当前各城市销售表现明显分化，因此要实施分类销售管理及策略，做好有效销售以及有效的资金回 笼，为保交房任务提供财务支持。 碧桂园：今年前3个月销售额77.7亿元，做好有效销售为保交房提供财务支持 ...

Summary of Country Garden Services (CGS) Conference Call Company Overview - **Company**: Country Garden Services (6098.HK) - **Industry**: Property Management Services Key Results Highlights - **Core Profit**: FY24 core profit decreased by 23% year-over-year (yoy) to Rmb3.0 billion, slightly above expectations, with inline topline performance and moderate gross profit margin (GPM) deterioration, which was better than feared [1] - **Cash Profile**: Operating cash flow (OCF) to core profit ratio improved to 1.3X, with gross cash balance increasing by 40% to Rmb18 billion due to enhanced fee collection and reduced accounts receivable (AR) from related developer Country Garden Holding (CGH) [1] - **Shareholder Returns**: Declared a dividend per share (DPS) of Rmb0.296 for FY24, implying a 55% payout against net income and a 33% payout against core profit, with a 5% yield [1] Management Guidance for FY25 - Management believes the worst is over, expecting core profit to bottom out from FY25 onwards, with potential high single-digit to teen-level percentage growth in core business topline [2] - Ongoing restructuring of non-core segments is anticipated to stabilize by FY26, with solid OCF expected to remain above 1X of net profit [2] Challenges and Risks - **Business Recovery**: Recovery remains challenging due to lower visibility on contracted project handovers from CGH and CGS's weak market positioning compared to leading players [3] - **Quality Scale Expansion**: Concerns about CGS's ability to achieve quality scale expansion amid intensified competition and terminations of low-margin contracts [5] - **Impairment Risks**: Potential for further impairment losses from receivables and goodwill, with Rmb15.4 billion in net goodwill as of FY24 [5] Financial Performance - **Revenue**: FY24 revenue increased by 3% yoy to Rmb43.993 billion, with managed gross floor area (GFA) expanding by 8% to over 1 billion sqm [9] - **Segment Performance**: - Community value-added services (2C VAS) grew by 12% yoy, while Three Supplies & Property Management (TSPM) segment saw a 25% increase [10] - City services and commercial operational services (COS) segments faced declines in topline and margins [8] Financial Metrics - **Gross Margin**: FY24 gross margin was 19%, down 1 percentage point (ppt) yoy [9] - **SG&A Expenses**: SG&A as a percentage of revenue increased by 1 ppt yoy to 11% [9] - **Net Profit**: Reported net profit of Rmb1.808 billion, a significant increase of 519% yoy, but core net profit decreased by 23% [9] Investment Thesis - CGS is rated as a "Sell" due to expected slower recovery compared to peers, challenges in project handovers, and potential business contraction across multiple segments [12] - The target price is set at HK$5.2, reflecting a downside of 19.5% from the current price [11] Conclusion - CGS is navigating a challenging environment with a focus on restructuring and improving cash flow, but faces significant risks related to market positioning, project execution, and potential impairments. The outlook remains cautious with a recommendation to sell based on current performance and future expectations.

Financial Performance - For the year ending December 31, 2024, the company achieved a total revenue of approximately RMB 252.8 billion, a year-on-year decrease of about 37.0%[3] - The company reported a net loss of approximately RMB 35.1 billion, with losses attributable to shareholders amounting to approximately RMB 32.8 billion[3] - The company recorded contract sales amounting to approximately RMB 47.2 billion, corresponding to a contract sales area of about 4.92 million square meters[7] - The company reported a revenue of RMB 252,756 million for the year ended December 31, 2024, a decrease of 37% compared to RMB 401,015 million in 2023[17] - The gross loss for the year was RMB 1,687 million, compared to a gross loss of RMB 93,609 million in the previous year, indicating an improvement[17] - The company incurred a net loss of RMB 35,145 million for the year, a significant reduction from the net loss of RMB 200,962 million in 2023[18] - Revenue for the year 2024 was RMB 252,756 million, a decrease of 37% from RMB 401,015 million in 2023[27] - Property sales contributed RMB 245,719 million to revenue, down from RMB 391,251 million in the previous year[27] - Revenue from contracts with customers for real estate development was RMB 245,719 million, a decrease of 37.2% from RMB 391,251 million in 2023[30] - Total segment revenue for 2024 was RMB 263,761 million, down from RMB 443,751 million in 2023, representing a decline of 40.5%[30] Operational Highlights - The company completed the delivery of over 380,000 housing units, covering a total area of approximately 46.08 million square meters across 242 cities in 31 provinces[6] - The company is enhancing its operational efficiency by optimizing its organizational structure, leading to a 27.4% year-on-year decrease in administrative expenses[7] - The company is developing a smart construction system incorporating building robots and new assembly methods to improve cost control and meet higher quality living demands[8] - The group plans to actively adjust sales activities to respond to market changes and aims to achieve budgeted sales and collections[21] - The group will continue to monitor the construction progress of real estate development projects closely and maintain communication with contractors[21] Debt and Restructuring - The company aims to reduce its debt by up to USD 11.6 billion and extend the maturity period to a maximum of 11.5 years as part of its debt restructuring proposal[10] - The company has been actively communicating with creditors regarding a debt restructuring plan, opposing the liquidation petition filed against it[12] - The company’s shares were suspended from trading on April 2, 2024, due to ongoing debt restructuring efforts and were restored on January 21, 2025[14] - Total current liabilities reached RMB 226,795 million, while total debt amounted to RMB 253,488 million, with RMB 188,193 million in default or cross-default[19] - The group has a significant liquidity concern, with a cash and cash equivalents balance of RMB 6,362 million against current liabilities[19] - The company has adopted incentive schemes for senior management and employees based on the profitability of real estate development projects, with cash rewards linked to net profits and return on equity[86] Financial Position - Total assets decreased to RMB 1,008,638 million in 2024 from RMB 1,156,187 million in 2023, reflecting a decline of approximately 12.8%[15][16] - Current liabilities were reduced to RMB 942,750 million in 2024 from RMB 1,126,245 million in 2023, a decrease of about 16.3%[16] - The company’s total equity decreased to RMB 51,254 million in 2024 from RMB 88,609 million in 2023, reflecting a decline of approximately 42.2%[16] - The company’s cash and cash equivalents decreased to RMB 6,362 million in 2024 from RMB 7,130 million in 2023, a decline of approximately 10.8%[15] - The total cash balance as of December 31, 2024, was approximately RMB 29,897 million, a decrease from RMB 63,816 million in 2023[56] Governance and Compliance - The independent auditor, Zhonghui Anda CPA, was unable to express an opinion on the consolidated financial statements due to insufficient audit evidence[76] - The audit committee has reviewed the annual performance and is responsible for independent oversight of the financial reporting process and risk management[80][81] - The company complied with the corporate governance code, except for one provision due to the dynamic nature of the ongoing overseas debt restructuring[83] - No violations of the standard code for securities trading by directors were reported during the year ending December 31, 2024[85] Shareholder Information - The board did not recommend or declare any dividends for the years ended December 31, 2024, and 2023[44] - The total number of shares granted under the share incentive plan as of December 31, 2024, is 165,434,000 shares, net of exercised and lapsed options[87] - The total number of share options available for grant under the 2017 share option plan is 2,048,830,798 shares as of January 1, 2024, and remains the same as of December 31, 2024[88] - The board does not recommend a final dividend for the year ending December 31, 2024, consistent with no dividend declared for 2023[93]

Financial Performance - For the six months ended June 30, 2024, the company achieved revenue of approximately RMB 102.1 billion, with over 150,000 housing units delivered, covering a total area of about 18.22 million square meters across 178 cities in 29 provinces[17]. - In the first half of 2024, the company's revenue was approximately RMB 102,102 million, a decrease of about 54.9% compared to RMB 226,309 million in the same period of 2023[57]. - Revenue from real estate development dropped by 55.2% to approximately RMB 98,829 million, primarily due to a decrease in property delivery volume[58]. - The pre-tax loss for the first half of 2024 was approximately RMB 10,831 million, significantly improved from a pre-tax loss of RMB 46,148 million in the same period of 2023[64]. - The loss attributable to shareholders for the first half of 2024 was approximately RMB 12,842 million, compared to RMB 48,932 million in the same period of 2023[65]. - The company recorded a loss attributable to equity holders of approximately RMB 12.8 billion for the six months ended June 30, 2024[105]. - The net loss attributable to shareholders for the six months ended June 30, 2024, was RMB 12,842 million, compared to RMB 48,932 million in 2023, reflecting a reduction of 73.7%[170]. - Basic and diluted loss per share for the period was RMB 0.46, an improvement from RMB 1.79 in the previous year[167]. - The total comprehensive loss for the period was RMB 14,930 million, down from RMB 51,854 million in the previous year, marking a 71.2% improvement[170]. Operational Efficiency - Management expenses decreased by 25.3% compared to the same period last year, indicating improved operational efficiency[20]. - The company implemented strict control over non-core operating expenses, reducing marketing and administrative costs by 50.8% to approximately RMB 4,851 million in the first half of 2024[61]. - The company has adopted all new and revised Hong Kong Financial Reporting Standards effective from January 1, 2024, with no significant changes to accounting policies or reported amounts[197]. Debt Management and Financial Stability - The company is focusing on debt risk mitigation and restructuring, including extending debt maturities and reducing financing costs[20]. - The company aims for a sustainable capital structure by promoting more projects to enter the whitelist for stable operations[20]. - The net gearing ratio increased from approximately 209.7% as of December 31, 2023, to approximately 277.3% as of June 30, 2024[69]. - The company has a total of 4,081,405 square meters in Lanzhou, with 3,559,396 square meters completed and 3,545,950 square meters sold and delivered[49]. - The group is actively seeking measures for overseas debt management due to liquidity pressures, aiming to reduce debt by up to USD 11.6 billion and extend maturity to a maximum of 11.5 years[89]. - The group is negotiating with financial institutions regarding domestic loans totaling approximately RMB 28.7 billion that have experienced cross-defaults[156]. - The company is subject to significant uncertainty regarding its ability to implement proposed offshore debt restructuring plans and maintain ongoing operations[196]. Project Development and Delivery - The company has delivered over 5 million households in its communities, contributing to China's urbanization and modernization[6]. - The company has 3,090 projects at various development stages, with 3,059 located in mainland China[34]. - The company is actively pursuing new projects, with a presale area of 450,456 square meters in Huizhou's innovation town project[39]. - The company plans to closely monitor the construction progress of real estate development projects according to sales plans to ensure timely completion and delivery of pre-sold properties[194]. - The company aims to revitalize underperforming assets, including hotels and commercial properties, and may consider divesting real estate investments to generate more cash inflow[194]. Community and Social Responsibility - The company has participated in social charity donations exceeding RMB 10 billion, aiding 490,000 people in poverty alleviation efforts[7]. - The company is committed to fulfilling its social responsibilities and ensuring the delivery of properties amidst the industry's challenges[98]. Employee and Talent Management - As of June 30, 2024, the company employed approximately 29,261 full-time employees, emphasizing the importance of talent as a valuable resource[94]. - The company has implemented a comprehensive training program, including leadership development and on-the-job training, to enhance employee competitiveness in the real estate industry[96]. - The company has adopted several stock option and share incentive plans to motivate employees[96]. Market Expansion and Diversification - The company has expanded its operations beyond Guangdong Province to various high-growth economic regions across China[10]. - 80% of the contract sales in the first half of 2024 came from regions outside Guangdong Province, reflecting the company's efforts in regional diversification[26]. - The company is actively exploring new businesses in construction technology and property management, aiming to enhance cost control and adapt to market changes[22]. Financial Risks and Challenges - The company has faced unprecedented challenges in the real estate sector, with overall sales declining and significant pressure on liquidity due to tightened financing conditions[97]. - The company is actively seeking to extend the maturity of certain domestic bonds due within 12 months after June 30, 2024, due to liquidity pressures[190]. - The company faced significant challenges in pre-sale performance, with a notable decline since April 2023, and no signs of recovery as of the report date[188].