光明地产(600708) - 2025 Q2 - 季度财报

Important Notice Risk Statement for Forward-Looking Statements Forward-looking descriptions in this report do not constitute a substantial commitment to investors, who are advised to note investment risks - Forward-looking descriptions do not constitute substantial commitments; investors are advised to note investment risks[3] Absence of Non-Operating Fund Occupation by Controlling Shareholder and Related Parties During the reporting period, there was no non-operating occupation of funds by the controlling shareholder or other related parties - No non-operating occupation of funds by controlling shareholder or other related parties[3] Absence of External Guarantees Violating Decision-Making Procedures During the reporting period, the company did not provide external guarantees in violation of decision-making procedures - No external guarantees provided in violation of decision-making procedures[3] Absence of Directors Unable to Guarantee Truthfulness, Accuracy, and Completeness of Semi-Annual Report During the reporting period, there was no situation where more than half of the directors could not guarantee the truthfulness, accuracy, and completeness of the semi-annual report - No situation where more than half of directors could not guarantee truthfulness, accuracy, and completeness of semi-annual report[3] Major Risk Warning The company has detailed potential risks in this report; please refer to "Risks Faced" in Section III "Management Discussion and Analysis" - Company has detailed potential risks; refer to Section III "Management Discussion and Analysis" for "Risks Faced"[4] Board of Directors and Senior Management Statement The Board and senior management guarantee the semi-annual report's truthfulness, accuracy, and completeness, assuming legal responsibility - Board and senior management guarantee truthfulness, accuracy, completeness of semi-annual report, assuming legal responsibility[5] Unaudited Report Statement This semi-annual report has not been audited - This semi-annual report is unaudited[5] Section I Definitions Definitions of Common Terms This section defines the reporting period (January 1 to June 30, 2025) and common terms like CSRC, SSE, Guangming Group, and Guangming Real Estate - Reporting period is January 1 to June 30, 2025[9] - Company, this company, listed company, Guangming Real Estate all refer to Guangming Real Estate Group Co., Ltd[9] Section II Company Profile and Key Financial Indicators I. Company Information This section provides the company's basic registration information, including its Chinese name, abbreviation, foreign name, legal representative, and stock overview - Company Chinese name: Guangming Real Estate Group Co., Ltd., abbreviation: Guangming Real Estate[11] - Legal Representative: Lu Jimin[11] - Stock Code: 600708, Listing Exchange: Shanghai Stock Exchange[15] II. Contact Persons and Information This section discloses the names, contact addresses, telephone numbers, fax numbers, and email addresses of the company's Board Secretary and Securities Affairs Representative - Board Secretary: Su Pengcheng, Securities Affairs Representative: Zheng Chao[12] - Contact Phone: 021-32211128[12] III. Brief Introduction to Changes in Basic Information This section introduces the company's registered address and office address, as well as its website and email address - Company Registered Address: Room A-75, 2nd Floor, Building 9, 1628 Lizheng Road, Lingang New Area, China (Shanghai) Pilot Free Trade Zone[13] - Company Office Address: 199 North Xizang Road, Jing'an District, Shanghai[13] IV. Brief Introduction to Changes in Information Disclosure and Document Custody Locations This section states the designated newspapers for information disclosure, the website address for semi-annual reports, and the company's semi-annual report custody location - Designated newspapers for information disclosure: "Shanghai Securities News", "Securities Times"[14] - Website for semi-annual reports: **www.sse.com.cn**[14](index=14&type=chunk) V. Company Stock Overview This section provides information on the company's stock type, listing exchange, stock abbreviation, stock code, and previous stock abbreviations Company Stock Overview | Stock Type | Listing Exchange | Stock Abbreviation | Stock Code | Previous Stock Abbreviation | | :--- | :--- | :--- | :--- | :--- | | A-share | Shanghai Stock Exchange | Guangming Real Estate | 600708 | Haibo Shares, Donghai Shares | VII. Key Accounting Data and Financial Indicators This section discloses key accounting data and financial indicators for H1 2025, showing revenue decline, profit turning to loss, and significant increase in net operating cash flow 2025 H1 Key Accounting Data | Indicator | Current Period (Jan-Jun) (Yuan) | Prior Year Period (Yuan) | Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 2,808,412,656.41 | 3,056,724,846.06 | -8.12 | | Total Profit | -371,479,081.06 | 77,258,112.57 | -580.83 | | Net Profit Attributable to Shareholders of Listed Company | -397,796,091.34 | 8,241,132.05 | -4,926.96 | | Net Cash Flow from Operating Activities | 223,631,424.92 | -2,182,618,083.84 | 110.25 | | Net Assets Attributable to Shareholders of Listed Company (Period-end) | 9,435,270,148.18 | 9,833,066,239.52 | -4.05 | | Total Assets (Period-end) | 57,744,705,709.82 | 59,561,264,946.27 | -3.05 | 2025 H1 Key Financial Indicators | Indicator | Current Period (Jan-Jun) | Prior Year Period | Change (%) | | :--- | :--- | :--- | :--- | | Basic Earnings Per Share (Yuan/share) | -0.1785 | 0.0037 | -4,924.32 | | Diluted Earnings Per Share (Yuan/share) | -0.1785 | 0.0037 | -4,924.32 | | Basic EPS after Non-recurring Gains and Losses (Yuan/share) | -0.1813 | -0.0573 | -216.40 | | Weighted Average Return on Net Assets (%) | -4.13 | 0.08 | Decrease of 4.21 percentage points | | Weighted Average Return on Net Assets after Non-recurring Gains and Losses (%) | -4.19 | -1.18 | Decrease of 3.01 percentage points | - Total non-recurring gains and losses amounted to 6.32 million Yuan[21] Section III Management Discussion and Analysis I. Description of Industry and Main Business During the Reporting Period This section explains the company's main business as a state-owned real estate developer and outlines H1 2025 real estate policy and market performance (I) Company's Main Business and Operating Model Guangming Real Estate, a state-owned developer, focuses on comprehensive real estate development, commercial operations, property services, and construction, with a "deep cultivation in Shanghai" strategy - Company's main business is comprehensive real estate development and operation, as a large state-owned integrated group company encompassing property development, commercial operations, property services, and construction[24] - Company adheres to a strategy of deep cultivation in Shanghai, aiming to become an integrated urban construction and operation service provider with Guangming Food industry genes[24] - Real estate business focuses on "optimizing layout, adjusting structure, destocking, and controlling risks," accelerating inventory clearance and reasonably expanding key projects in Shanghai[25] (II) Industry Overview H1 2025 real estate policies focused on market stability, risk prevention, and transformation; sales declined in Q2, with national new commercial housing sales down 3.5% and investment down 11.2% - In H1 2025, real estate policies precisely focused on "stabilizing the market, preventing risks, and promoting transformation"[26] - From January to June 2025, new commercial housing sales area decreased by 3.5% year-on-year, with residential sales area down 3.7%[26] - From January to June 2025, national real estate development investment decreased by 11.2% year-on-year, with residential investment down 10.4%[28] - New housing starts decreased by 20.0% year-on-year, and completed housing area decreased by 14.8%[30] II. Discussion and Analysis of Operations Facing industry adjustments, the company reported H1 revenue of 2.81 billion Yuan, total profit of -371 million Yuan, and net profit attributable to parent of -398 million Yuan, while actively pursuing destocking and transformation - From January to June 2025, the company achieved operating revenue of 2.81 billion Yuan, total profit of -371 million Yuan, and net profit attributable to shareholders of the listed company of -398 million Yuan[30] - Company fully implemented a "one project, one policy" differentiated marketing strategy, actively promoting phased rapid destocking of projects in Shanghai Lingang, Jinshan, Jiangsu Yixing, Changzhou, Zhejiang Hangzhou, Yunnan Kunming, Shandong Heze, and Hubei Wuhan[31] - From January to June 2025, the company's contracted sales area was 227,400 square meters, a year-on-year decrease of 3.63%; contracted sales amount was 2.41 billion Yuan, a year-on-year increase of 4.52%[31] - Company focused on "three major projects" construction, advancing the delivery of Lingang Guangming Star City project, implementing "housing voucher purchase" policy for Jinshan urban village project, planning adjustments for Fengxian urban village project, and accelerating construction of Pudong Chuansha and Huinan affordable housing projects[32] - Company integrated strategic investment and industrial development research functions into the Investment Development Department, merged operations, cost, and quality into the Operations Management Department, and integrated property management and commercial operations into Huadu Group through institutional reform[33] - From January to June 2025, the company's completed area was 417,800 square meters, a year-on-year increase of 43.75%[33] - Company optimized financing structure and reduced financing costs by utilizing various financing products such as corporate bonds, medium-term notes, and ultra-short-term financing bonds[34] - Company's Board of Directors held 5 meetings, reviewed 38 proposals, and revised the "Articles of Association" and supporting systems, replacing the Supervisory Board with the Board Audit Committee[35] III. Analysis of Core Competencies During the Reporting Period This section outlines the company's core strengths in brand influence, corporate governance, high-quality development, capital operations, industrial platforms, and management structure (I) Strong Brand Influence As a key member of Guangming Food Group, the company holds a national first-class real estate development qualification and has received numerous industry awards - Company's controlling shareholder is Guangming Food (Group) Co., Ltd., and the company is one of its important member enterprises[39] - Company's wholly-owned subsidiary, Nonggongshang Real Estate (Group) Co., Ltd., holds a national first-class qualification for real estate development enterprises[39] - Company's developed real estate projects have received top awards including the Zhan Tianyou Civil Engineering Award, Luban Prize, and Magnolia Award[39] (II) Sound Corporate Governance Structure The company strictly adheres to laws and regulations to improve its corporate governance structure, with an efficient Board and committees ensuring standardized and healthy development - Company continuously improves its corporate governance structure in accordance with the "Company Law," "Securities Law," "Guidelines for Governance of Listed Companies," and relevant requirements of the Shanghai Stock Exchange[41] - Company's shareholders' meeting, Board of Directors, and management have clear responsibilities, with directors and senior management diligently performing their duties[41] (III) Adherence to High-Quality Development The Board actively assesses macroeconomic changes, focusing on improving management and efficiency through strategic leadership, governance, organizational optimization, destocking, cost control, risk prevention, talent development, and Party building - Company focuses on improving enterprise management and optimizing internal management efficiency, continuously advancing management deepening and efficiency improvement guided by high-quality development[42] - Accelerating the strategic advancement of returning to Shanghai, returning to main business, and returning to profitability, striving to become an important vehicle for Guangming Headquarters' entity and integrated urban service functions[42] (IV) Cost Reduction and Innovation in Capital Operations Amid economic downturn and real estate market confidence shocks, the company deepened financial innovation, expanding financing channels and optimizing debt structure through medium-term notes, ultra-short-term financing bonds, and corporate bonds - Company actively deepens financial innovation, committed to reducing financing costs[43] - Further adjusts and optimizes the company's debt structure and reduces financial expenses through businesses such as medium-term notes, ultra-short-term financing bonds, and corporate bonds[43] (V) Innovative and Collaborative Industrial Platform The company focuses on industry, collaboratively advancing transformation platforms, actively participating in urban renewal, and moving towards becoming an integrated urban industrial construction and operation service provider - Company focuses on industry, collaboratively advancing transformation platforms, focusing on the demand for a better life, and actively participating in the process of urban renewal[44] - Promotes the company's continuous advancement towards becoming an integrated urban industrial construction and operation service provider, accelerating the conversion of layout into business, models into benefits, and resources into assets[44] (VI) Lean and Efficient Management Structure The company's management team possesses extensive industry experience, professional capabilities, strong cohesion, and high execution, dedicated to building dreams, benefiting society, strengthening the enterprise, and achieving employee success - Company's management team has many years of industry experience, excellent professional capabilities, and keen market awareness[45] - Company adheres to an enterprise culture of "employees first, advocating struggle, love and respect," forming highly efficient execution[45] IV. Key Operating Performance During the Reporting Period This section details the company's financial statement item changes, business type and profit composition shifts, asset and liability status, and major controlled/invested companies during the reporting period (I) Main Business Analysis During the reporting period, both operating revenue and costs decreased, sales and administrative expenses reduced, while financial expenses increased. Net cash flow from operating activities significantly grew, but net cash flow from investing and financing activities sharply declined. Real estate development revenue increased, but gross margin decreased; property and leasing revenue and costs both declined 1. Analysis Table of Changes in Financial Statement Items This period saw year-on-year decreases in operating revenue, operating costs, sales expenses, administrative expenses, total profit, and net profit attributable to parent, while financial expenses increased. Net cash flow from operating activities significantly increased, but net cash flow from investing and financing activities sharply decreased 2025 H1 Changes in Financial Statement Items | Item | Current Period Amount (Yuan) | Prior Year Period Amount (Yuan) | Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 2,808,412,656.41 | 3,056,724,846.06 | -8.12 | | Operating Cost | 2,601,253,727.80 | 2,664,133,788.51 | -2.36 | | Sales Expenses | 54,955,902.95 | 80,602,922.10 | -31.82 | | Administrative Expenses | 167,814,735.18 | 198,107,142.46 | -15.29 | | Financial Expenses | 330,486,723.01 | 315,011,396.66 | 4.91 | | Net Cash Flow from Operating Activities | 223,631,424.92 | -2,182,618,083.84 | 110.25 | | Net Cash Flow from Investing Activities | 3,808,392.53 | 171,350,139.15 | -97.78 | | Net Cash Flow from Financing Activities | -436,456,156.12 | 913,587,038.71 | -147.77 | | Total Profit | -371,479,081.06 | 77,258,112.57 | -580.83 | | Net Profit Attributable to Parent Company Shareholders | -397,796,091.34 | 8,241,132.05 | -4,926.96 | - Change in operating revenue primarily due to a year-on-year decrease in non-real estate segment revenue recognized this period[47] - Change in net cash flow from operating activities primarily due to a larger decrease in operating outflows than operating inflows this period, leading to a year-on-year increase[47] - Change in net cash flow from financing activities primarily due to a larger decrease in financing inflows than outflows this period, leading to a year-on-year decrease[48] 2. Detailed Explanation of Significant Changes in Company's Business Type, Profit Composition, or Sources of Profit This Period In the main business, real estate development and related services revenue increased by 7.64% year-on-year, but gross margin fell to 7.93%; property and leasing revenue decreased by 33.61% year-on-year, with a gross margin of 6.05%. East China remains the primary revenue source, but Central China revenue significantly declined 2025 H1 Main Business by Industry | Industry Segment | Operating Revenue (Yuan) | Operating Cost (Yuan) | Gross Margin (%) | Change in Operating Revenue YoY (%) | Change in Operating Cost YoY (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | Real Estate Development and Related Services | 2,562,427,467.88 | 2,359,206,051.53 | 7.93 | 7.64 | 15.46 | | Property and Leasing | 195,560,557.19 | 183,737,485.35 | 6.05 | -33.61 | -31.21 | | Other | 746,010.87 | 210,815.51 | 71.74 | -99.76 | -99.92 | 2025 H1 Main Business by Region | Region | Operating Revenue (Yuan) | Operating Cost (Yuan) | Gross Margin (%) | Change in Operating Revenue YoY (%) | Change in Operating Cost YoY (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | East China | 2,611,286,694.26 | 2,406,367,021.52 | 7.85 | 8.08 | 15.54 | | Central China | 29,806,844.95 | 25,995,299.62 | 12.79 | -93.61 | -94.30 | | Southwest China | 117,640,496.73 | 110,792,031.25 | 5.82 | 17.28 | 116.31 | (III) Analysis of Assets and Liabilities At the end of the reporting period, both total assets and net assets attributable to the parent company decreased. Inventory remains the largest asset, accounting for over 70%, but also decreased. Long-term borrowings increased, while contract liabilities decreased 1. Asset and Liability Status Period-end cash and cash equivalents, inventories, contract assets, long-term equity investments, contract liabilities, notes receivable, and employee compensation all decreased year-on-year, while short-term and long-term borrowings increased 2025 H1 Changes in Asset and Liability Status | Item Name | Current Period End Amount (Yuan) | Current Period End % of Total Assets | Prior Year End Amount (Yuan) | Prior Year End % of Total Assets | Change from Prior Year End (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | Cash and Cash Equivalents | 4,995,359,386.61 | 8.65 | 5,162,755,523.68 | 8.67 | -3.24 | | Inventories | 41,527,812,468.56 | 71.92 | 43,140,329,001.73 | 72.43 | -3.74 | | Contract Assets | 1,348,434.28 | 0.00 | 3,973,772.20 | 0.01 | -66.07 | | Long-term Equity Investments | 1,794,454,552.54 | 3.11 | 1,849,045,346.86 | 3.10 | -2.95 | | Short-term Borrowings | 324,000,000.00 | 0.56 | 278,250,297.23 | 0.47 | 16.44 | | Contract Liabilities | 2,961,154,336.82 | 5.13 | 3,957,595,682.16 | 6.64 | -25.18 | | Long-term Borrowings | 23,330,661,473.77 | 40.40 | 21,974,175,953.77 | 36.89 | 6.17 | | Notes Receivable | 0.00 | 0.00 | 108,870,000.00 | 0.18 | -100.00 | | Employee Compensation Payable | 21,222,709.24 | 0.04 | 53,837,991.66 | 0.09 | -60.58 | - Decrease in inventories primarily due to the recognition of sales costs for real estate projects this period[55] - Decrease in contract liabilities primarily due to the recognition of pre-received housing payments by subsidiaries this period[55] - Increase in long-term borrowings primarily due to increased long-term borrowings by subsidiaries this period[55] 3. Major Asset Restrictions as of the End of the Reporting Period As of the end of the reporting period, the book value of restricted assets was 21.26 billion Yuan, primarily used for loan collateral - As of the end of the reporting period, the book value of restricted assets was 21.26 billion Yuan[56] (VI) Analysis of Major Controlled and Invested Companies This section discloses that major subsidiaries Nonggongshang Real Estate (Group) Co., Ltd., Shanghai Shenhong Cold Storage and Transportation Co., Ltd., and Guangming Real Estate Group Shanghai Huizhao Real Estate Co., Ltd. had an impact exceeding 10% on the company's net profit - Subsidiaries with an impact exceeding 10% on the company's net profit this reporting period include Nonggongshang Real Estate (Group) Co., Ltd., Shanghai Shenhong Cold Storage and Transportation Co., Ltd., and Guangming Real Estate Group Shanghai Huizhao Real Estate Co., Ltd[59] - Nonggongshang Real Estate (Group) Co., Ltd. reported a net profit of -307.00 million Yuan[58] - Guangming Real Estate Group Shanghai Huizhao Real Estate Co., Ltd. reported a net profit of 52.27 million Yuan[58] V. Other Disclosure Matters This section discloses potential policy, market, financial, and operational risks, and details the progress and effectiveness of the H1 2025 valuation enhancement and quality improvement action plan (I) Potential Risks Faced The company faces policy risks (new real estate development model, financial risks), market risks (fierce competition, demand decline, inventory impairment), financial risks (high capital demand, interest rate marketization, mortgage policy impact), and operational risks (supply-demand changes, long development cycles, high regulatory requirements) - Company faces policy risks, including new real estate development models, city-specific policies, and real estate financial risks[60] - Company faces market risks, such as fierce industry competition, declining demand, oversupply, and inventory impairment[61] - Company faces financial risks, including high capital demand, interest rate marketization, and changes in individual housing loan policies[62] - Company faces operational risks, such as changes in supply-demand relationships, long development cycles, high regulatory requirements, and slowing destocking rates[63] (II) Other Disclosure Matters The company formulated a 2025 valuation enhancement and quality improvement action plan, making progress in destocking, rational investment, management innovation, operational control, and investor communication in H1, but reported a loss in 2024 and proposed no cash dividend - Company formulated the 2025 Valuation Enhancement Plan and Quality Improvement and High-Return Action Plan, practicing the development philosophy of "investor-centric"[64] - In H1, the company's contracted sales area decreased by 3.63% year-on-year, while contracted sales amount increased by 4.52% year-on-year[65] - Company completed partial institutional reforms and integration, enhancing operational control, with completed area increasing by 43.75% year-on-year[66] - Company incurred a loss in 2024, and proposed a profit distribution plan of no cash dividend for 2024[67] - Company compliantly disclosed its 2024 annual report, 2025 first-quarter report, and 33 interim announcements, and engaged in various forms of communication with investors[68] Section IV Corporate Governance, Environment, and Society II. Profit Distribution or Capital Reserve Conversion Plan The company plans no profit distribution or capital reserve conversion for H1 2025 - Company plans no distribution or conversion for H1 2025, with 0 bonus shares, cash dividends, or conversion shares per 10 shares[71] V. Specific Progress in Consolidating Poverty Alleviation Achievements and Rural Revitalization The company continued its targeted poverty alleviation efforts, allocating 500,000 Yuan to Fengdeng Village, Xiangtu Township, Jianchuan County, Yunnan, for landscape improvement and infrastructure construction - In 2025, Guangming Real Estate continued its targeted poverty alleviation efforts with Fengdeng Village, Xiangtu Township, Jianchuan County, Yunnan[72] - Allocated 500,000 Yuan in assistance funds, primarily for landscape improvement and infrastructure upgrade projects[72] Section V Significant Matters I. Fulfillment of Commitments Controlling shareholder Guangming Food Group continues to fulfill its commitment to avoid horizontal competition, having completed the deregistration or business scope change of some companies, with others progressing as planned - Controlling shareholder Guangming Food Group honors its commitments and actively fulfills its pledge to avoid horizontal competition[76] - Shanghai Shenfu Real Estate Management Company completed enterprise deregistration on January 15, 2019[76] - Shanghai Pinlei Real Estate Co., Ltd. completed enterprise deregistration on October 31, 2018[76] - Chaohu Jintaiyang Real Estate Co., Ltd. completed business scope and company name changes on October 17, 2017, now primarily engaged in food and grain business[78] - Shanghai Pudong Xinghuo Development Zone United Development Co., Ltd. completed its conversion to a wholly-owned limited liability company on December 18, 2015, with Guangming Food Group no longer holding equity in it[79] VII. Major Litigation and Arbitration Matters The company and its subsidiaries are involved in multiple significant construction contract and loan contract disputes, with large amounts at stake, some in enforcement or second-instance review - Shanghai Nonggongshang Construction Development Co., Ltd. is involved in multiple construction project contract disputes, with amounts ranging from tens of millions to hundreds of millions of Yuan, some cases have been judged and entered the enforcement stage[82][83][85] - Hangzhou Qiandaohu Liyuan Real Estate Co., Ltd. is involved in a loan contract dispute, with a principal amount of 163 million Yuan plus interest[84] - Yunnan Fengle Construction Engineering Co., Ltd. filed a creditor's subrogation claim against Guangming Real Estate and Guangming Zibo Real Estate Co., Ltd., involving 72.10 million Yuan plus interest[86] X. Major Related Party Transactions This section discloses the company's ordinary course related party transactions, related party receivables/payables, and financial business with related financial companies (I) Related Party Transactions Related to Ordinary Operations The company expects ordinary related party transactions to amount to approximately 451.13 million Yuan in 2025, approved by the Board and shareholders' meeting - Company expects ordinary related party transactions to amount to approximately 451.13 million Yuan in 2025[90] (IV) Related Party Receivables and Payables Controlling shareholder Guangming Food Group and its related parties plan to provide loans totaling no more than 16.3 billion Yuan to the company and its subsidiaries in 2025, to support development, ensure working capital, and reduce financial expenses - Controlling shareholder Guangming Food (Group) Co., Ltd. and its related parties plan to provide loans totaling no more than 16.3 billion Yuan to the company and its subsidiaries in 2025[92] - Related party receivables and payables aim to support company development, ensure normal working capital operations, further enhance company competitiveness, and effectively reduce some financial expenses[92] (V) Financial Business Between the Company and Related Financial Companies, and Between Company-Controlled Financial Companies and Related Parties The company has deposit business with Guangming Food Group Finance Co., Ltd., with a period-end balance of 1.69 billion Yuan, and loan business with a period-end balance of 510 million Yuan - Company's period-end deposit balance at Guangming Food Group Finance Co., Ltd. was 1.69 billion Yuan[97] - Company's period-end loan balance at Guangming Food Group Finance Co., Ltd. was 510 million Yuan[96] XI. Major Contracts and Their Fulfillment This section discloses significant guarantees executed and outstanding during the reporting period, including mortgage-plus-guarantee for joint ventures and guarantees for subsidiaries (II) Significant Guarantees Executed and Outstanding During the Reporting Period The company provided mortgage-plus-guarantee for joint venture Nonggongshang Real Estate (Group) Guangxi Mingtong Real Estate Co., Ltd., with a total guarantee balance of 152.73 million Yuan. Guarantees for subsidiaries totaled 9.66 billion Yuan. Total guarantees accounted for 99.09% of the company's net assets - Company provided mortgage-plus-guarantee for joint venture Nonggongshang Real Estate (Group) Guangxi Mingtong Real Estate Co., Ltd., with a total guarantee balance of 152.73 million Yuan[100] - At the end of the reporting period, guarantees for subsidiaries totaled 2.11 billion Yuan in new occurrences and 9.66 billion Yuan in outstanding balance[100] - Total guarantees (A+B) amounted to 9.81 billion Yuan, accounting for 99.09% of the company's net assets[100] Section VI Share Changes and Shareholder Information I. Share Capital Changes No changes occurred in the company's total share capital or share structure during the reporting period - No changes occurred in the company's total share capital or share structure during the reporting period[104] II. Shareholder Information This section discloses the shareholding of the top ten shareholders and top ten circulating shareholders as of the end of the reporting period, with controlling shareholder Guangming Food (Group) Co., Ltd. holding 35.22% (II) Shareholding of Top Ten Shareholders and Top Ten Circulating Shareholders (or Unrestricted Shareholders) as of the End of the Reporting Period As of the end of the reporting period, Guangming Food (Group) Co., Ltd. was the largest shareholder with a 35.22% stake. Among the top ten shareholders, several are state-owned legal entities, and there are parties acting in concert Shareholding of Top Ten Shareholders as of the End of the Reporting Period | Shareholder Name | Shares Held at Period End (shares) | Percentage (%) | Shareholder Nature | | :--- | :--- | :--- | :--- | | Guangming Food (Group) Co., Ltd. | 784,975,129 | 35.22 | State-owned Legal Person | | Shanghai Metropolitan Asset Management Co., Ltd. | 358,249,294 | 16.07 | State-owned Legal Person | | Shanghai Dongxing Investment Holding Development Co., Ltd. | 38,245,438 | 1.72 | State-owned Legal Person | | Guangxi Railway Development Investment Fund (Limited Partnership) | 37,999,000 | 1.71 | State-owned Legal Person | | Chen Kechun | 19,515,500 | 0.88 | Domestic Natural Person | - Guangming Food (Group) Co., Ltd. has an associated relationship with Shanghai Metropolitan Asset Management Co., Ltd., Shanghai Yimin Food Factory (Group) Co., Ltd., and Shanghai Nonggongshang Greening Co., Ltd., and are parties acting in concert[108] Shareholding and Restrictions of Top Ten Restricted Shareholders As of the end of the reporting period, the company had 8 restricted shareholders, holding a total of 3,358,972 shares, with all restrictions related to unpaid consideration from share reform Shareholding of Top Ten Restricted Shareholders | No. | Name of Restricted Shareholder | Number of Restricted Shares Held (shares) | Restriction Condition | | :--- | :--- | :--- | :--- | | 1 | Shanghai Zhuanqiao Asset Investment Management Co., Ltd. | 696,010 | Unpaid consideration from share reform, advanced by major shareholder to circulating shareholders | | 2 | Shanghai Olympic Hotel | 696,010 | Unpaid consideration from share reform, advanced by major shareholder to circulating shareholders | | 3 | Holder not specified by issuer | 696,010 | Unpaid consideration from share reform, advanced by major shareholder to circulating shareholders | | 4 | Agricultural Bank of China Shanghai Branch Staff Union Committee | 696,009 | Unpaid consideration from share reform, advanced by major shareholder to circulating shareholders | | 5 | Songjiang Food | 348,005 | Unpaid consideration from share reform, advanced by major shareholder to circulating shareholders | Section VII Bond-Related Information I. Corporate Bonds (Including Enterprise Bonds) and Non-Financial Enterprise Debt Financing Instruments This section discloses the basic information, debt structure, and key accounting and financial indicators of the company's corporate bonds and non-financial enterprise debt financing instruments (I) Corporate Bonds (Including Enterprise Bonds) The company issued multiple corporate bonds, including 23 Ming Bond 01, 24 Ming Bond 01, and 24 Ming Bond 03, with a total outstanding balance of 1.5 billion Yuan, interest rates between 3.20% and 4.30%, all traded on the Shanghai Stock Exchange without delisting risk Basic Information of Corporate Bonds | Bond Name | Abbreviation | Code | Bond Balance (Yuan) | Interest Rate (%) | Trading Venue | | :--- | :--- | :--- | :--- | :--- | :--- | | 2023 Publicly Issued Corporate Bonds to Professional Investors (Tranche 1) | 23 Ming Bond 01 | 240336 | 500,000,000.00 | 4.3 | Shanghai Stock Exchange | | 2024 Publicly Issued Corporate Bonds to Professional Investors (Tranche 1) | 24 Ming Bond 01 | 240586 | 600,000,000.00 | 3.20 | Shanghai Stock Exchange | | 2024 Publicly Issued Corporate Bonds to Professional Investors (Tranche 2) (Type 2) | 24 Ming Bond 03 | 240781 | 400,000,000.00 | 3.60 | Shanghai Stock Exchange | (IV) Significant Matters Related to Corporate Bonds During the Reporting Period This section discloses the company's non-operating receivables and fund borrowings, as well as the interest-bearing debt structure at both company and consolidated levels 1. Non-Operating Receivables and Fund Borrowings At the beginning and end of the reporting period, the company's consolidated non-operating receivables and fund borrowings balance was 0.00 billion Yuan, with no violations of prospectus agreements or commitments - At the beginning and end of the reporting period, the company's consolidated non-operating receivables and fund borrowings balance was 0.00 billion Yuan[115] 2. Debt Situation At the end of the reporting period, the company's (non-consolidated) interest-bearing debt balance was 22.85 billion Yuan, a year-on-year change of 0.11%; the consolidated interest-bearing debt balance was 33.13 billion Yuan, a year-on-year change of 1.25% - At the end of the reporting period, the company's (non-consolidated scope) interest-bearing debt balance was 22.85 billion Yuan, a year-on-year change of 0.11%[116] Company Debt Structure (Non-Consolidated) | Interest-Bearing Debt Category | Total Amount (billion Yuan) | % of Total Interest-Bearing Debt | | :--- | :--- | :--- | | Corporate Credit Bonds | 8.08 | 35.05 | | Non-Bank Financial Institution Loans | 5.35 | 23.42 | | Other Interest-Bearing Debt | 9.49 | 41.53 | | Total | 22.85 | 100.00 | - At the end of the reporting period, the company's consolidated interest-bearing debt balance was 33.13 billion Yuan, a year-on-year change of 1.25%[118] Company Consolidated Interest-Bearing Debt Structure | Interest-Bearing Debt Category | Total Amount (billion Yuan) | % of Total Interest-Bearing Debt | | :--- | :--- | :--- | | Corporate Credit Bonds | 8.08 | 24.17 | | Bank Loans | 9.57 | 28.88 | | Non-Bank Financial Institution Loans | 5.86 | 17.70 | | Other Interest-Bearing Debt | 9.69 | 29.25 | | Total | 33.13 | 100.00 | (V) Non-Financial Enterprise Debt Financing Instruments in the Interbank Bond Market The company issued multiple medium-term notes, including 22 Guangming Real Estate MTN002, and 24 Guangming Real Estate MTN001 to MTN008, with a total outstanding balance of 6.3 billion Yuan, interest rates between 2.53% and 5.50%, all traded on the national interbank bond market without delisting risk Basic Information of Non-Financial Enterprise Debt Financing Instruments | Bond Name | Abbreviation | Code | Bond Balance (Yuan) | Interest Rate (%) | Trading Venue | | :--- | :--- | :--- | :--- | :--- | :--- | | Guangming Real Estate Group Co., Ltd. 2022 Second Tranche Medium-Term Note | 22 Guangming Real Estate MTN002 | 102282499 | 800,000,000.00 | 5.50 | National Interbank Bond Market | | Guangming Real Estate Group Co., Ltd. 2024 First Tranche Medium-Term Note | 24 Guangming Real Estate MTN001 | 102480519 | 600,000,000.00 | 3.00 | National Interbank Bond Market | | Guangming Real Estate Group Co., Ltd. 2024 Second Tranche Medium-Term Note | 24 Guangming Real Estate MTN002 | 102480779 | 500,000,000.00 | 3.60 | National Interbank Bond Market | | Guangming Real Estate Group Co., Ltd. 2024 Third Tranche Medium-Term Note | 24 Guangming Real Estate MTN003 | 102481332 | 800,000,000.00 | 3.57 | National Interbank Bond Market | | Guangming Real Estate Group Co., Ltd. 2024 Fourth Tranche Medium-Term Note | 24 Guangming Real Estate MTN004 | 102482930 | 700,000,000.00 | 2.53 | National Interbank Bond Market | | Guangming Real Estate Group Co., Ltd. 2024 Fifth Tranche Medium-Term Note | 24 Guangming Real Estate MTN005 | 102483376 | 600,000,000.00 | 2.55 | National Interbank Bond Market | | Guangming Real Estate Group Co., Ltd. 2024 Sixth Tranche Medium-Term Note | 24 Guangming Real Estate MTN006 | 102484066 | 500,000,000.00 | 2.86 | National Interbank Bond Market | | Guangming Real Estate Group Co., Ltd. 2024 Seventh Tranche Medium-Term Note | 24 Guangming Real Estate MTN007 | 102484394 | 800,000,000.00 | 3.80 | National Interbank Bond Market | | Guangming Real Estate Group Co., Ltd. 2024 Eighth Tranche Medium-Term Note | 24 Guangming Real Estate MTN008 | 102484717 | 600,000,000.00 | 3.84 | National Interbank Bond Market | (VII) Key Accounting Data and Financial Indicators This section discloses the company's period-end current ratio, quick ratio, asset-liability ratio, as well as period net profit after non-recurring items, EBITDA to total debt ratio, and interest coverage ratio, showing decreased profitability but significantly improved cash interest coverage 2025 H1 Key Accounting Data and Financial Indicators | Key Indicator | Current Period End / Current Period (Jan-Jun) | Prior Year End / Prior Year Period | Change (%) | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Current Ratio | 3.07 | 2.75 | 11.64 | | | Quick Ratio | 0.60 | 0.53 | 13.21 | | | Asset-Liability Ratio (%) | 82.86 | 82.64 | 0.22 | | | Net Profit after Non-recurring Gains and Losses | -404,114,646.32 | -127,787,305.61 | -216.24 | Primarily due to a year-on-year decrease in real estate main business profit this period | | EBITDA to Total Debt Ratio | -0.00007 | 0.02000 | -100.35 | Primarily due to a year-on-year decrease in real estate main business profit this period | | Interest Coverage Ratio | -0.04 | 0.73 | -105.48 | Primarily due to a year-on-year decrease in real estate main business profit this period | | Cash Interest Coverage Ratio | 1.60 | -1.71 | 193.57 | Primarily due to an increase in operating cash flow this period | | EBITDA Interest Coverage Ratio | -0.00358 | 0.80000 | -100.45 | Primarily due to a year-on-year decrease in real estate main business profit this period | | Loan Repayment Rate (%) | 100.00 | 100.00 | | | | Interest Payment Rate (%) | 100.00 | 100.00 | | | Section VIII Financial Report II. Financial Statements This section provides the company's consolidated and parent company balance sheets, income statements, cash flow statements, and statements of changes in owners' equity for H1 2025 Consolidated Balance Sheet As of June 30, 2025, the company's total assets were 57.75 billion Yuan, total liabilities 47.85 billion Yuan, and total owners' equity attributable to the parent company 9.44 billion Yuan - Total Assets: 57.74 billion Yuan[47] - Total Liabilities: 47.85 billion Yuan[47] - Total Owners' Equity Attributable to Parent Company: 9.44 billion Yuan[47] Consolidated Income Statement In H1 2025, the company's total operating revenue was 2.81 billion Yuan, total operating cost 3.18 billion Yuan, net profit -409 million Yuan, and net profit attributable to parent company shareholders -398 million Yuan - Total Operating Revenue: 2.81 billion Yuan[136] - Total Operating Cost: 3.18 billion Yuan[136] - Net Profit: -409 million Yuan[137] - Net Profit Attributable to Parent Company Shareholders: -398 million Yuan[137] Consolidated Cash Flow Statement In H1 2025, net cash flow from operating activities was 224 million Yuan, from investing activities 3.81 million Yuan, and from financing activities -436 million Yuan - Net Cash Flow from Operating Activities: 223.63 million Yuan[141] - Net Cash Flow from Investing Activities: 3.81 million Yuan[142] - Net Cash Flow from Financing Activities: -436.46 million Yuan[142] III. Company Basic Information This section introduces the company's history and share capital changes; as of June 30, 2025, the total share capital was 2,228,636,743 shares - Company's total share capital is 2,228,636,743 shares, including 3,358,972 restricted shares and 2,225,277,771 unrestricted shares[156] VII. Notes to Consolidated Financial Statement Items This section provides detailed notes for each item in the consolidated financial statements, including cash and cash equivalents, accounts receivable, inventories, long-term equity investments, restricted assets, contract liabilities, and bonds payable 1. Cash and Cash Equivalents Period-end cash and cash equivalents balance was 4.995 billion Yuan, with 7.36 million Yuan held overseas and 339 million Yuan restricted - Period-end cash and cash equivalents balance: 4.995 billion Yuan[287] - Of which: Total amount of funds deposited overseas: 7.36 million Yuan[287] - Restricted cash and cash equivalents are detailed in Note "VII, 31, Assets Whose Ownership or Use Rights Are Restricted"[287] 5. Accounts Receivable Period-end accounts receivable book balance was 2.25 billion Yuan, with bad debt provision of 126 million Yuan, and book value of 2.13 billion Yuan. Combination one (within consolidation scope, related parties, government departments) had no bad debt provision, while combination two had a provision rate of 25.86% - Period-end accounts receivable book balance: 2.25 billion Yuan[298] - Bad debt provision: 125.73 million Yuan[298] - Book value: 2.13 billion Yuan[298] - Bad debt provision for combination one (accounts receivable within consolidation scope, from related parties, and from government departments) was 0[301] - Bad debt provision rate for combination two was 25.86%[301] 10. Inventories Period-end inventory book value was 41.53 billion Yuan, primarily comprising development costs of 22.24 billion Yuan and developed products of 15.60 billion Yuan. Total inventory impairment provision and contract performance cost impairment provision amounted to 2.27 billion Yuan - Period-end inventory book value: 41.53 billion Yuan[329] - Development costs book value: 22.24 billion Yuan[329] - Developed products book value: 15.60 billion Yuan[329] - Total inventory impairment provision and contract performance cost impairment provision: 2.27 billion Yuan[335] - Period-end inventory balance includes 3.62 billion Yuan of capitalized borrowing costs, with a capitalization rate of 4.05% for borrowing interest expenses this period[336] 17. Long-term Equity Investments Period-end long-term equity investments book value was 1.79 billion Yuan, including 103 million Yuan in joint ventures and 1.69 billion Yuan in associates. Investment income recognized under equity method this period was 1.51 million Yuan - Period-end long-term equity investments book value: 1.79 billion Yuan[344] - Joint venture investments book value: 102.54 million Yuan[343] - Associate investments book value: 1.69 billion Yuan[344] - Investment income recognized under equity method this period: 1.51 million Yuan[344] 31. Assets Whose Ownership or Use Rights Are Restricted As of the end of the reporting period, the book value of restricted assets was 21.26 billion Yuan, primarily inventory pledged for loans - Period-end book value of restricted assets: 21.26 billion Yuan[382] - Of which, inventory pledged for loans had a restricted book value of 20.84 billion Yuan[382] - Restricted cash and cash equivalents amounted to 339.15 million Yuan, used for sales proceeds supervision, mortgage loan guarantees, and freezes[381] 38. Contract Liabilities Period-end contract liabilities were 2.96 billion Yuan, mainly comprising pre-received housing payments of 2.53 billion Yuan and pre-received construction payments of 373 million Yuan - Period-end contract liabilities: 2.96 billion Yuan[392] - Pre-received housing payments: 2.53 billion Yuan[392] - Pre-received construction payments: 373 million Yuan[392] - Transaction price allocated to unfulfilled performance obligations is estimated at 6.12 billion Yuan, expected to be recognized as revenue within the next 1-3 years[438] 41. Other Payables Period-end other payables were 4.13 billion Yuan, primarily inter-company payables of 3.33 billion Yuan - Period-end other payables: 4.13 billion Yuan[400] - Inter-company payables: 3.33 billion Yuan[406] - Dividends payable: 40.20 million Yuan, with some dividends payable outstanding for over 1 year[402][404] 43. Non-Current Liabilities Due Within One Year Period-end non-current liabilities due within one year were 2.90 billion Yuan, mainly including long-term borrowings of 1.51 billion Yuan and bonds payable of 1.37 billion Yuan due within one year - Period-end non-current liabilities due within one year: 2.90 billion Yuan[407] - Long-term borrowings due within one year: 1.51 billion Yuan[407] - Bonds payable due within one year: 1.37 billion Yuan[407] 45. Long-term Borrowings Period-end long-term borrowings were 23.33 billion Yuan, mainly comprising guaranteed borrowings of 6.84 billion Yuan, mortgage-plus-guaranteed borrowings of 6.81 billion Yuan, and entrusted-plus-credit borrowings of 9.69 billion Yuan - Period-end long-term borrowings: 23.33 billion Yuan[408] - Guaranteed borrowings: 6.84 billion Yuan[408] - Mortgage-plus-guaranteed borrowings: 6.81 billion Yuan[408] - Entrusted-plus-credit borrowings: 9.69 billion Yuan[408] 46. Bonds Payable Period-end bonds payable were 6.60 billion Yuan, including multiple corporate bonds and medium-term notes - Period-end bonds payable: 6.60 billion Yuan[410] - Includes corporate bonds such as 23 Ming Bond 01, 24 Ming Bond 01, 24 Ming Bond 03, and medium-term notes such as 22 Guangming Real Estate MTN001, MTN002, 24 Guangming Real Estate MTN001 to MTN008[410][411][412][413][414] 61. Operating Revenue and Operating Cost This period's operating revenue was 2.81 billion Yuan, operating cost 2.60 billion Yuan. Main business revenue was 2.76 billion Yuan, other business revenue 49.68 million Yuan. East China contributed the vast majority of revenue - This period's operating revenue: 2.81 billion Yuan, operating cost: 2.60 billion Yuan[434] - Main business revenue: 2.76 billion Yuan, other business revenue: 49.68 million Yuan[434] - East China operating revenue: 2.66 billion Yuan, accounting for 94.58% of total revenue[437] 66. Financial Expenses This period's financial expenses were 330 million Yuan, including interest expense of 344 million Yuan and interest income of 19.82 million Yuan - This period's financial expenses: 330.49 million Yuan[443] - Interest expense: 344.23 million Yuan[443] - Interest income: 19.82 million Yuan[443] 79. Supplementary Information to Cash Flow Statement This period's net cash flow from operating activities was 224 million Yuan, and net increase in cash and cash equivalents was -209 million Yuan - This period's net cash flow from operating activities: 223.63 million Yuan[473] - Net increase in cash and cash equivalents: -209.02 million Yuan[473] IX. Changes in Consolidation Scope This section discloses changes in the company's consolidation scope, primarily the liquidation of subsidiary Nonggongshang Real Estate (Group) Hangzhou Fuyang Huixin Real Estate Co., Ltd. this period 5. Changes in Consolidation Scope Due to Other Reasons Subsidiary Nonggongshang Real Estate (Group) Hangzhou Fuyang Huixin Real Estate Co., Ltd. was liquidated this period, with its net profit from the beginning of the period to liquidation date being 216,941.59 Yuan - Subsidiary Nonggongshang Real Estate (Group) Hangzhou Fuyang Huixin Real Estate Co., Ltd. was liquidated this period[487] - The subsidiary's net profit from the beginning of this period to the liquidation date was 216,941.59 Yuan[489] X. Interests in Other Entities This section discloses the company's interests in subsidiaries, joint ventures, and associates 1. Interests in Subsidiaries This section lists over 100 subsidiaries, including names, registered capital, business nature, and shareholding ratios, explaining discrepancies between shareholding and v