Core Viewpoint - Longfor Group reported a growth in turnover scale for the first half of 2025, with a stable performance in operational and service businesses, despite pressure on gross profit margins from turnover [1] Group 1: Financial Performance - The company achieved a revenue of 587.5 billion RMB in the first half of 2025, representing a year-on-year increase of 25.4% [1] - Real estate development revenue was 454.8 billion RMB, up 34.7% year-on-year, while operational and service revenue was 132.7 billion RMB, a slight increase of 1.3% [1] - The net profit attributable to shareholders was 32.2 billion RMB, down 45.2% year-on-year, with a core net profit of approximately 13.8 billion RMB [1] - The gross profit margin was 12.6%, a decrease of 7.9 percentage points year-on-year, with development, operational, and service business margins at approximately 0.2%, 77.7%, and 30.0% respectively [1] Group 2: Debt and Financing - As of the end of the first half, the company had interest-bearing liabilities of 169.8 billion RMB, reduced by 6.5 billion RMB since the beginning of the year [1] - The pre-debt ratio was 56.1%, and the net debt ratio was 51.2%, with a cash-to-short-term debt ratio of 1.74 times [1] - The average financing cost decreased to 3.58%, down 42 basis points year-on-year, with cash reserves of 44.67 billion RMB [1] Group 3: Sales and Land Reserves - The company reported a sales amount of 35.01 billion RMB in the first half of 2025, a decrease of 31.5% year-on-year, with a sales area of 2.615 million square meters, down 28.5% [2] - As of the end of the first half, the company had unsold turnover amounting to 105.9 billion RMB, covering an area of approximately 854,000 square meters [2] - The total land reserve was 28.4 million square meters, with an equity ratio of 74.4% [2] Group 4: Operational and Service Business - Operational revenue for the first half was 7.01 billion RMB, a year-on-year increase of 2.5%, with shopping mall revenue accounting for 78.5% [2] - The gross profit margin for operational business was 77.7%, an increase of 2.3 percentage points year-on-year, with a rental income increase of 4.9% and an overall occupancy rate of 96.8% [2] - Service revenue was 6.26 billion RMB, with a gross profit margin of 30.0%, and the company actively expanded its construction agency business, adding 8.52 million square meters in the first half [2]

Core Viewpoint - The real estate market is facing significant challenges in the third quarter of 2023, but there remains a strong demand for quality properties in prime locations, particularly in first- and second-tier cities [1] Financial Performance - For the first half of 2023, the company reported a revenue of 58.75 billion yuan, representing a year-on-year increase of 25.4% [1] - The attributable profit to shareholders was 3.22 billion yuan, with a core profit of 1.38 billion yuan after excluding fair value changes of investment properties and other financial instruments [1] - The real estate development segment generated a revenue of 45.48 billion yuan, up 34.7% year-on-year [1] - The operational and service segments achieved a record revenue of 13.27 billion yuan, accounting for 22.6% of total revenue [2] Debt Management - As of June 30, 2023, the total borrowing was 169.8 billion yuan, a decrease of approximately 6.53 billion yuan from the end of 2024 [3] - The company had cash reserves of 44.67 billion yuan and a net debt ratio of 51.2% [3] - The average financing cost dropped to 3.58%, with the average loan term extended to 10.95 years [3] - The company plans to reduce interest-bearing debt by approximately 10 billion yuan annually from 2026 to 2028 [3]

Core Viewpoint - Longfor Group has significantly reduced its debt pressure after the peak in 2025, allowing for potential new land acquisitions while ensuring financial safety [1][3]. Financial Performance - In the first half of the year, Longfor Group achieved operating revenue of 58.75 billion yuan, with operational and service income reaching a historical high of 13.27 billion yuan, accounting for 22.6% of total revenue [1]. - The real estate development business recorded a contract sales amount of 35.01 billion yuan, with approximately 90% of sales coming from first- and second-tier cities [1]. Debt Management - As of June 30, the company had interest-bearing liabilities of 169.8 billion yuan, reduced by 6.53 billion yuan compared to the end of 2024, with bank financing making up 87% of this amount [1]. - The cash-to-short-term debt coverage ratio stands at 1.74 times, with an average financing cost at a historical low of 3.58% and an average loan term of 10.95 years [1]. - Longfor has fully repaid 10.1 billion yuan of domestic credit bonds and 3.5 billion yuan of medium-term notes, with no further credit bonds due for repayment this year [1]. Future Debt Obligations - By the end of 2025, the company's domestic credit bond balance is expected to be around 4.4 billion yuan, with 3.6 billion yuan maturing in 2026 and 800 million yuan in 2027 [2]. - The company anticipates a significant reduction in annual debt repayments post-2025, with approximately 60 billion yuan due in 2025, and around 20 billion yuan in 2026 and 2027 [2]. Strategic Focus - Longfor's chairman and CEO stated that the company has reduced its interest-bearing liabilities by 40 billion yuan over the past three years, with a target to further decrease by 20 billion yuan by the end of this year [3]. - The company emphasizes financial safety and the importance of debt repayment over new investments, while still acquiring quality land in key cities [3][4]. - Longfor plans to maintain strict investment discipline and will selectively acquire new land while focusing on high-potential cities [4].

Investment Rating - The investment rating for Longfor Group is maintained as "Buy" [6] Core Views - Longfor Group reported an increase in turnover scale for the first half of 2025, with a stable growth in operational and service businesses despite pressure on gross profit margins [6] - The company is expected to see a recovery in profitability, with projected net profits for 2025-2027 being 6.87 billion, 7.26 billion, and 7.64 billion RMB respectively, corresponding to EPS of 0.98, 1.04, and 1.09 RMB [6] Financial Performance - For the first half of 2025, the company achieved a revenue of 58.75 billion RMB, a year-on-year increase of 25.4%, with real estate development revenue at 45.48 billion RMB, up 34.7% [7] - The net profit attributable to shareholders was 3.22 billion RMB, down 45.2%, with a core net profit of approximately 1.38 billion RMB [7] - The gross profit margin was 12.6%, a decrease of 7.9 percentage points year-on-year [7] Debt and Cash Management - As of the end of the first half of 2025, the company had interest-bearing debt of 169.8 billion RMB, reduced by 6.5 billion RMB since the beginning of the year [7] - The cash-to-short-term debt ratio was 1.74 times, with cash on hand amounting to 44.67 billion RMB [7] Sales and Land Reserves - The sales amount for the first half of 2025 was 35.01 billion RMB, a decrease of 31.5% year-on-year, with a sales area of 2.615 million square meters, down 28.5% [8] - The total land reserve as of the end of the first half was 28.4 million square meters, with an equity ratio of 74.4% [8] Operational Business - The operational revenue for the first half of 2025 was 7.01 billion RMB, a year-on-year increase of 2.5%, with a gross profit margin of 77.7% [9] - The company opened 12.7 thousand rental units under its brand "Guan Yu," achieving a rental rate of 95.6% [9]

Group 1 - The chairman and CEO of Longfor Group, Chen Xuping, stated that the recent relaxation of purchase restrictions in Beijing and Shanghai is necessary [1] - The real estate market has undergone four years of adjustment, with many cities experiencing a price drop of 30% from their peak [1] - The short-term stabilization of the real estate market relies on policy stimulus, while the long-term outlook remains optimistic about the resilience of the Chinese real estate market [1]

报告期内，龙湖集团运营及服务业务合计实现收入132.7亿元，创历史新高，核心净利润约40亿元，营 收、利润均实现同比增长。期内，运营及服务业务在龙湖集团营业收入中占比达到22.6%，成为收入、 利润及现金流的稳定贡献来源。 2025年上半年，由商业投资、资产管理组成的运营业务不含税租金收入为70.1元，同比增长2.5%。以物 业管理、智慧营造为主的服务业务板块不含税收入为62.6亿元，同比微增。 龙湖集团经营性业务下的四个航道，在细分领域均保持领先身位，延续稳定增长的态势，这使得龙湖可 以依靠内生动力、通过业务"造血"自循环来驱动公司发展，以低杠杆、强运营、正现金流，持续践行高 质量发展路径。 来源：智通财经网 2025年8月29日，龙湖集团控股有限公司（「龙湖集团」或「集团」，港交所股份代号：00960）公布其 截至2025年6月30日的半年业绩。2025年上半年，龙湖集团运营及服务业务实现稳定增长，可持续的盈 利能力与现金流反哺能力不断增强。 ...

Core Insights - The company reported a revenue of RMB 587.5 billion for the first half of 2025, representing a year-on-year growth of 25.4% [1] - The real estate development segment generated revenue of RMB 454.8 billion, up 34.7% year-on-year, while the operational business revenue was RMB 70.1 billion, growing by 2.5% [1] - The profit attributable to shareholders was RMB 32.2 billion, with a core profit of RMB 13.8 billion after excluding fair value changes, primarily driven by growth in operational and service businesses [1] - The company declared an interim dividend of RMB 0.07 per share [1] Financial Performance - As of June 30, 2025, total borrowings amounted to RMB 1,698.0 billion, a decrease of RMB 65.3 billion from the end of the previous year [1] - Cash on hand was reported at RMB 446.7 billion [1] - Contract sales for the first half of 2025 reached RMB 350.1 billion, with a total sold area of 2.614 million square meters and an average selling price of RMB 13,393 per square meter [1] Market Position - The highest sales contribution came from the Western region (28.1%) and the Yangtze River Delta (26.5%) [1] - The company has unrecognized contract sales of RMB 1,059 billion, covering an area of approximately 8.54 million square meters [1] - As of June 30, 2025, total land reserves were 28.4 million square meters, with an equity area of 21.13 million square meters and an average cost of RMB 4,207 per square meter [1] Strategic Focus - In the second half of the year, the company will continue to focus on core city investments, adjust the pace of project launches flexibly, and enhance product quality [2] - The company aims to adhere to a high-quality development strategy, maintain prudent financial management, systematically reduce debt, adjust inventory structure, and promote growth in operational and service businesses to achieve sustainable development through positive operating cash flow [2]

期内，实现营业收入为人民币587.5亿元，同比增长25.4%。其中，地产开发业务收入为人民币454.8亿 元，同比增长34.7%；运营业务收入为人民币70.1亿元，同比增长2.5%；服务业务收入为人民币62.6亿 元，同比微增。运营及服务业务收入合计为人民币132.7亿元，同比增长1.3%，占总营业收入22.6%。 截至上半年末，综合借贷总额为人民币1698.0亿元，较上年末下降人民币65.3亿元；在手现金为人民币 446.7亿元，公司股东应占权益为人民币1650.7亿元，净负债率（负债净额除以权益总额）为51.2%。平 均融资成本为年利率3.58%，平均合同借贷年期为10.95年。 公司拥有人应占溢利为人民币32.2亿元，剔除投资物业及其他衍生金融工具公平值变动影响后公司拥有 人应占核心溢利为人民币13.8亿元。其中，运营业务及服务业务核心溢利保持增长，为集团核心溢利的 主要贡献来源。 公司拥有人应占每股基本盈利人民币0.48元，剔除投资物业及其他衍生金融工具公平值变动影响后公司 拥有人应占每股核心基本盈利为人民币0.21元。董事会决议宣布派发中期股息每股人民币0.07元。 8月29日，龙湖集团发布2025 ...

Group 1 - The company reported a revenue of 58.75 billion RMB for the first half of 2025, representing a year-on-year growth of 25.4% [1] - The attributable profit to shareholders was 3.22 billion RMB, with a core profit of 1.38 billion RMB after excluding fair value changes of investment properties and other derivative financial instruments [1] - The basic earnings per share were 0.477 RMB, and an interim dividend of 0.07 RMB per share was proposed [1] Group 2 - The real estate development business generated a revenue of 45.48 billion RMB, up 34.7% year-on-year, while the operational business revenue was 7.01 billion RMB, growing by 2.5% [1] - The company delivered over 100 projects and nearly 40,000 quality housing units across 36 cities, fulfilling its delivery commitments [1] - As of June 30, 2025, the company's total land reserves amounted to 28.4 million square meters, with an average cost of 4,207 RMB per square meter [1] Group 3 - The company's operational and service businesses showed stable contributions, enhancing sustainable profitability and cash flow [2] - The industry is transitioning from high-speed growth to high-quality development under the policy guidance of "accelerating the construction of a new model for real estate development" [2] - The company reduced interest-bearing debt by 6.5 billion RMB compared to the end of the previous year, achieving a record low average financing cost of 3.58% [2]

Core Insights - Longfor Group reported a revenue of RMB 58.75 billion for the first half of 2025, representing a year-on-year increase of 25.4% [1] - The company's attributable profit to shareholders was RMB 3.22 billion, with a core profit of RMB 1.38 billion after excluding fair value changes of investment properties and other financial instruments [1] Revenue Breakdown - Real estate development revenue reached RMB 45.48 billion, up 34.7% year-on-year [1] - Operating business revenue was RMB 7.01 billion, showing a growth of 2.5% [1] - Service business revenue slightly increased to RMB 6.26 billion [1] - Combined revenue from operating and service businesses was RMB 13.27 billion, a 1.3% increase, accounting for 22.6% of total revenue [1] Profitability Metrics - Basic earnings per share attributable to shareholders were RMB 0.48, while core basic earnings per share were RMB 0.21 after adjustments [1] - The board declared an interim dividend of RMB 0.07 per share [1] Financial Position - As of June 30, 2025, total borrowings amounted to RMB 169.8 billion, a decrease of RMB 6.53 billion from the end of the previous year [2] - Cash on hand was RMB 44.67 billion, with total equity attributable to shareholders at RMB 165.07 billion [2] - The net debt-to-equity ratio stood at 51.2%, with an average financing cost of 3.58% and an average loan term of 10.95 years [2] Sales Performance - Contract sales for the first half of 2025 totaled RMB 35.01 billion, with a total saleable area of 2.614 million square meters and an average selling price of RMB 13,393 per square meter [2] - Sales in various regions included RMB 9.83 billion in the West, RMB 9.29 billion in the Yangtze River Delta, RMB 8.22 billion in the Bohai Rim, RMB 4.21 billion in South China, and RMB 3.46 billion in Central China, representing 28.1%, 26.5%, 23.5%, 12.0%, and 9.9% of total contract sales respectively [2] Land Reserves - As of June 30, 2025, total land reserves were 28.4 million square meters, with an equity area of 21.13 million square meters and an average cost of RMB 4,207 per square meter [3] - Land reserves by region included 36.3% in the Bohai Rim, 28.0% in the West, 17.1% in Central China, 11.3% in the Yangtze River Delta, and 7.3% in South China [3] Strategic Outlook - The company plans to maintain its investment focus in core cities while adapting the pace of project launches based on market conditions [3] - The strategy emphasizes inventory reduction, customer-centric product enhancement, and a commitment to high-quality development and prudent financial management [3]