龙湖集团(00960) - 2025 - 中期业绩

Financial Highlights The company's financial performance in the first half of 2025 shows significant revenue growth in property development, stable operating and service income, but a decline in profit attributable to owners, alongside a reduction in total borrowings and a low net gearing ratio | Indicator | H1 2025 (RMB billion) | YoY Growth (%) | | :--- | :--- | :--- | | Operating Revenue | 58.75 | 25.4 | | Property Development Revenue | 45.48 | 34.7 | | Operation Business Revenue | 7.01 | 2.5 | | Service Business Revenue | 6.26 | Slight increase | | Total Operation and Service Business Revenue | 13.27 | 1.3 | | Profit Attributable to Owners of the Company | 3.22 | - | | Core Profit Attributable to Owners (excluding fair value changes) | 1.38 | - | | Basic Earnings Per Share | 0.48 | - | | Core Basic Earnings Per Share (excluding fair value changes) | 0.21 | - | | Interim Dividend (per share) | 0.07 | - | | Indicator | As of June 30, 2025 (RMB billion) | Change from end of previous year (RMB billion) | | :--- | :--- | :--- | | Total Consolidated Borrowings | 169.80 | Decrease of 6.53 | | Cash on Hand | 44.67 | - | | Equity Attributable to Owners of the Company | 165.07 | - | | Net Gearing Ratio | 51.2% | - | | Average Financing Cost | 3.58% | - | | Average Contractual Borrowing Tenor | 10.95 years | - | Interim Results The interim results for the first half of 2025 detail the company's financial performance, including income, balance sheet, and notes to the financial statements, reflecting revenue growth but declining profitability Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income In H1 2025, Longfor Group's revenue increased by 25.4% to RMB 58.75 billion, but gross profit and period profit both decreased, with profit attributable to owners significantly lower | Indicator | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 58,750,323 | 46,855,050 | 25.4% | | Cost of Sales | (51,327,981) | (37,214,687) | 37.9% | | Gross Profit | 7,422,342 | 9,640,363 | -23.0% | | Other Income | 236,882 | 684,070 | -65.3% | | Other Gains and Losses | (200,132) | 834,589 | From gain to loss | | Fair Value Changes of Investment Properties | 2,819,775 | 1,499,648 | 88.0% | | Selling and Marketing Expenses | (1,526,402) | (1,913,687) | -20.2% | | Administrative Expenses | (1,710,438) | (2,281,433) | -25.0% | | Finance Costs | (84,088) | (77,179) | 9.0% | | Share of Results of Associates | (136,855) | 412,943 | From gain to loss | | Share of Results of Joint Ventures | (127,902) | 343,946 | From gain to loss | | Profit Before Tax | 6,386,675 | 9,130,542 | -30.0% | | Income Tax Expense | (2,438,429) | (2,155,553) | 13.1% | | Profit for the Period | 3,948,246 | 6,974,989 | -43.4% | | Profit Attributable to Owners of the Company | 3,215,852 | 5,865,716 | -45.2% | | Basic Earnings Per Share (RMB cents) | 47.7 | 89.9 | -46.9% | Condensed Consolidated Statement of Financial Position As of June 30, 2025, total assets slightly increased, driven by investment properties, while current assets and liabilities decreased, and total equity remained stable | Indicator | As of June 30, 2025 (RMB thousand) | As of Dec 31, 2024 (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Non-current Assets | | | | | Investment Properties | 215,975,822 | 210,924,077 | 2.4% | | Interests in Associates | 14,010,039 | 14,459,115 | -3.0% | | Interests in Joint Ventures | 18,147,964 | 18,313,904 | -0.9% | | Total Non-current Assets | 273,782,678 | 270,635,040 | 1.2% | | Current Assets | | | | | Properties Under Development and for Sale | 196,233,707 | 220,995,189 | -11.3% | | Trade and Other Receivables | 21,247,607 | 23,924,771 | -11.3% | | Bank Balances and Cash | 42,632,220 | 47,951,575 | -11.1% | | Total Current Assets | 357,820,423 | 395,006,745 | -9.4% | | Current Liabilities | | | | | Trade and Other Payables | 54,407,280 | 59,902,852 | -9.2% | | Contract Liabilities | 75,363,487 | 91,847,431 | -17.9% | | Bank and Other Borrowings - Due within one year | 25,611,455 | 30,244,198 | -15.3% | | Total Current Liabilities | 208,859,016 | 240,877,400 | -13.3% | | Total Equity | | | | | Equity Attributable to Owners of the Company | 165,070,676 | 161,431,062 | 2.3% | | Non-controlling Interests | 79,372,045 | 84,045,749 | -5.6% | | Total Equity | 244,442,721 | 245,476,811 | -0.4% | | Non-current Liabilities | | | | | Bank and Other Borrowings - Due after one year | 134,708,895 | 136,561,264 | -1.4% | | Deferred Tax Liabilities | 22,065,164 | 20,566,150 | 7.3% | | Total Non-current Liabilities | 178,301,364 | 179,287,574 | -0.5% | Notes to the Condensed Consolidated Financial Statements This section provides detailed explanations of the basis of preparation, significant accounting policies, segment information, and specific financial account compositions and changes 1. Basis of Preparation The condensed consolidated financial statements are prepared in accordance with IAS 34 and applicable disclosure requirements of the HKEX Listing Rules - Financial statements are prepared in accordance with International Accounting Standard 34 and the applicable disclosure requirements of the Hong Kong Stock Exchange Listing Rules[9] 2. Principal Accounting Policies The financial statements are prepared primarily under the historical cost convention, with certain properties and financial instruments measured at revalued or fair value - Financial statements are primarily prepared under the historical cost convention, with certain assets measured at revalued or fair value[10] - Revisions to IFRS accounting standards adopted in the current period (e.g., IAS 21 amendment "Lack of Exchangeability") have no material impact on the Group's financial position and performance[11] 3. Segment Information The Group's operating segments include development, operation, and services, with development revenue significantly increasing but segment profit turning to loss in H1 2025 - The Group's operating segments are primarily divided into development business (development and sale of office buildings, commercial and residential properties), operation business (leasing investment properties, including shopping malls and rental housing), and service business (property management and construction agency services)[15] | Segment | H1 2025 Revenue from External Customers (RMB thousand) | H1 2024 Revenue from External Customers (RMB thousand) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Development Business | 45,478,268 | 33,757,912 | 34.7% | | Operation Business | 7,008,234 | 6,834,540 | 2.5% | | Service Business | 6,263,821 | 6,262,598 | 0.02% | | Total | 58,750,323 | 46,855,050 | 25.4% | | Segment | H1 2025 Segment (Loss) Profit (RMB thousand) | H1 2024 Segment Profit (RMB thousand) | YoY Change | | :--- | :--- | :--- | :--- | | Development Business | (1,182,231) | 530,818 | From profit to loss | | Operation Business | 4,126,116 | 4,094,621 | 0.8% | | Service Business | 2,556,138 | 2,719,603 | -6.0% | | Total | 5,500,023 | 7,345,042 | -25.2% | | Segment | As of June 30, 2025 Total Segment Assets (RMB thousand) | As of Dec 31, 2024 Total Segment Assets (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Development Business | 205,357,489 | 233,383,707 | -12.0% | | Operation Business | 173,611,849 | 172,298,236 | 0.8% | | Service Business | 12,248,703 | 11,630,110 | 5.3% | | Total Segment Assets | 391,218,041 | 417,312,053 | -6.3% | | Segment | As of June 30, 2025 Total Segment Liabilities (RMB thousand) | As of Dec 31, 2024 Total Segment Liabilities (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Development Business | 101,487,212 | 118,332,866 | -14.2% | | Operation Business | 22,649,461 | 23,910,772 | -5.3% | | Service Business | 4,037,912 | 4,299,332 | -6.1% | | Total Segment Liabilities | 128,174,585 | 146,542,970 | -12.6% | 4. Other Income In H1 2025, the Group's other income significantly decreased by 65.3% to RMB 237 million, primarily due to reductions in interest, government grants, and consulting income | Item | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Interest Income | 120,631 | 338,358 | -64.4% | | Government Grants | 29,952 | 60,381 | -50.4% | | Default Income | 8,151 | 77,557 | -89.5% | | Consulting Income | 64,458 | 157,248 | -59.0% | | Miscellaneous Income | 13,690 | 50,526 | -72.9% | | Total | 236,882 | 684,070 | -65.3% | 5. Other Gains and Losses In H1 2025, the Group's other gains and losses shifted from a gain to a loss of RMB 200 million, influenced by foreign exchange gains but losses from subsidiary disposals | Item | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | YoY Change | | :--- | :--- | :--- | :--- | | Gains on disposal and write-off of property, plant and equipment | 40,253 | 2,318 | 1636.5% | | Net foreign exchange gains (losses) | 133,224 | (807,480) | From loss to gain | | Fair value gains (losses) on hedging instruments reclassified from hedging reserve | (133,210) | 807,397 | From gain to loss | | Gains (losses) on disposal of subsidiaries | (70,416) | 53,509 | From gain to loss | | Gains on repurchase of senior notes and bonds | – | 854,587 | Gain disappeared | | Others | (169,983) | (75,742) | 124.4% | | Total | (200,132) | 834,589 | From gain to loss | 6. Finance Costs Net finance costs for H1 2025 slightly increased to RMB 84.1 million, as a decrease in total interest expense was offset by a corresponding reduction in capitalized amounts | Item | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Interest on bank and other borrowings | (2,800,390) | (3,831,201) | -26.9% | | Interest expense on senior notes | (196,903) | (235,009) | -16.2% | | Total Interest Expense | (2,997,293) | (4,066,210) | -26.3% | | Less: Amount capitalized | 2,913,205 | 3,989,031 | -27.0% | | Net Finance Costs | (84,088) | (77,179) | 9.0% | - Capitalized borrowing costs are calculated at an annual interest rate of 3.58%, lower than 4.16% in the prior year[26] 7. Income Tax Expense Total income tax expense for H1 2025 increased by 13.1% to RMB 2.438 billion, driven by a significant rise in deferred tax expense despite lower current tax | Item | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | YoY Change (%) | | :--- | :--- | :--- | :--- | | PRC corporate income tax | (527,844) | (984,489) | -46.4% | | Hong Kong profits tax | (9,811) | (13,738) | -28.6% | | Withholding tax on distributed profits | (21,375) | (85,000) | -74.8% | | Land appreciation tax | (767,705) | (921,174) | -16.6% | | Total Current Tax | (1,326,735) | (2,004,401) | -33.8% | | Over-provision in prior periods (corporate income tax) | – | 24,707 | From provision to none | | Over-provision in prior periods (land appreciation tax) | 175,410 | 901,300 | -80.5% | | Deferred Tax | (1,287,104) | (1,077,159) | 19.5% | | Total Income Tax Expense | (2,438,429) | (2,155,553) | 13.1% | - Over-provision of land appreciation tax in prior periods decreased, mainly due to the determination of actual appreciation amounts for certain property projects and revisions to development plans[27] 8. Profit for the Period Profit for the period in H1 2025 was RMB 3.948 billion, a 43.4% decrease from the prior year, after deducting depreciation and amortization expenses | Item | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Depreciation of property, plant and equipment | 56,528 | 97,644 | -42.1% | | Depreciation of right-of-use assets | 15,383 | 17,337 | -11.3% | | Amortization of intangible assets | 102,867 | 102,487 | 0.4% | 9. Dividends The Board declared an interim dividend of RMB 0.07 per share for H1 2025, a significant decrease from the previous year, with the 2024 final dividend paid partly in cash and partly in shares | Dividend Type | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Final dividend recognized for 2024 (RMB 0.10 per share) | 698,718 | - | - | | Final dividend recognized for 2023 (RMB 0.23 per share) | - | 1,559,579 | - | | Interim dividend declared (RMB 0.07 per share) | 489,103 | - | - | | Interim dividend declared (RMB 0.22 per share) | - | 1,488,848 | - | - The H1 2024 interim dividend of RMB 526 million was paid in cash, with the remaining portion paid in new fully paid shares on April 8, 2025[31] 10. Earnings Per Share Basic earnings per share attributable to owners for H1 2025 significantly decreased to RMB 0.477 from RMB 0.899, despite an increase in the weighted average number of ordinary shares | Indicator | H1 2025 | H1 2024 | YoY Change (%) | | :--- | :--- | :--- | :--- | | Profit attributable to owners of the Company for the purpose of basic and diluted earnings per share (RMB thousand) | 3,215,852 | 5,865,716 | -45.2% | | Weighted average number of ordinary shares for the purpose of basic earnings per share (thousand shares) | 6,744,356 | 6,527,212 | 3.3% | | Weighted average number of ordinary shares for the purpose of diluted earnings per share (thousand shares) | 6,762,401 | 6,541,262 | 3.4% | - Basic earnings per share decreased from RMB 0.899 to RMB 0.477[6] 11. Trade and Other Receivables, Deposits and Prepayments As of June 30, 2025, total trade and other receivables, deposits, and prepayments decreased by 11.3% to RMB 21.248 billion, with a rise in trade receivables but a decline in other categories | Item | As of June 30, 2025 (RMB thousand) | As of Dec 31, 2024 (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Trade receivables - customer contracts | 5,527,151 | 4,704,800 | 17.5% | | Trade receivables - rental | 104,175 | 94,330 | 10.4% | | Other receivables, net of allowance for doubtful debts | 4,755,415 | 6,380,180 | -25.5% | | Advances to contractors | 1,429,484 | 2,154,044 | -33.7% | | Prepayments for VAT and other taxes | 9,416,146 | 10,572,425 | -10.9% | | Total | 21,247,607 | 23,924,771 | -11.3% | | Ageing of Trade Receivables | As of June 30, 2025 (RMB thousand) | As of Dec 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Within 60 days | 3,987,074 | 3,346,340 | | 61 to 180 days | 997,267 | 882,905 | | 181 to 365 days | 402,181 | 359,562 | | 1 to 2 years | 194,548 | 168,043 | | 2 to 3 years | 36,461 | 30,960 | | Over 3 years | 13,795 | 11,320 | | Total | 5,631,326 | 4,799,130 | 12. Trade and Other Payables and Accrued Expenses As of June 30, 2025, total trade and other payables and accrued expenses decreased by 9.2% to RMB 54.407 billion, reflecting reductions across trade payables, dividends payable, and VAT payable | Item | As of June 30, 2025 (RMB thousand) | As of Dec 31, 2024 (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Trade payables and accrued construction costs | 39,396,134 | 40,560,546 | -2.9% | | Dividends payable | 778,710 | 1,514,840 | -48.6% | | Other payables and accrued expenses | 11,721,359 | 13,337,202 | -12.1% | | VAT payable | 2,395,060 | 4,372,087 | -45.2% | | Amounts due within one year shown under current liabilities | 54,407,280 | 59,902,852 | -9.2% | | Ageing of Trade Payables | As of June 30, 2025 (RMB thousand) | As of Dec 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Within 60 days | 9,550,862 | 7,400,145 | | 61 to 180 days | 6,343,079 | 6,273,556 | | 181 to 365 days | 3,688,430 | 5,469,068 | | 1 to 2 years | 3,651,693 | 4,559,787 | | 2 to 3 years | 696,868 | 989,784 | | Over 3 years | 433,022 | 528,918 | | Total | 24,363,954 | 25,221,258 | Chairman's Report The Chairman's Report highlights the company's resilience in a restructuring property market, focusing on debt structure adjustment, asset optimization, and high-quality development, supported by stable operating cash flow - China's economy demonstrates resilience under coordinated policies, with the property sector accelerating restructuring, and Longfor Group upholding delivery and payment commitments, adjusting debt structure, optimizing asset portfolio, and forging a new path for high-quality development[39] | Indicator | H1 2025 (RMB billion) | YoY Growth (%) | | :--- | :--- | :--- | | Operating Revenue | 58.8 | 25 | | Operating Business Revenue | 13.3 | 1.3 | - In the first half, the Group's interest-bearing debt decreased by RMB 6.5 billion from the end of last year, with the average financing cost falling to a record low of 3.58% and the average contractual borrowing tenor extending to a record high of 10.95 years[39] - Operating cash flow, including capital expenditures, achieved a net inflow of over RMB 2 billion, providing solid support for navigating the cycle[39] - The development business strategy focuses on balancing profit and cash flow from existing projects, vigorously promoting sales and cash collection, and maintaining prudent investment in new land acquisition[40] - Operation and service businesses contribute stably, with continuously enhanced profitability and cash flow feedback capabilities[40] - The 89 operational shopping malls maintained a high occupancy rate of 97% in the first half, with overall sales increasing by approximately 17% and average daily foot traffic increasing by approximately 11%[41] - The asset management segment (long-term rental apartments, industrial offices, and six other formats) achieved revenue exceeding RMB 1.5 billion in the first half, with dual improvements in asset quality and profitability[41] - The property management segment manages approximately 2,200 projects with a total managed area of approximately 400 million square meters, achieving revenue of RMB 5.5 billion in the first half[41] - Longfor Smart Manufacturing achieved agency construction sales of RMB 8.4 billion and delivered 1.22 million square meters in the first half, maintaining rapid growth[42] - The "Longfor" APP was launched, upgrading the full ecological scenarios for new home purchases, rental housing, shopping malls, and services, creating a closed-loop service connecting all business segments and multiple functions[42] Management Discussion and Analysis This section provides an in-depth analysis of the Group's operational and financial performance across its development, operation, and service segments, along with insights into cost control, profitability, land reserves, and financial position Development Business In H1 2025, development business revenue grew by 34.7% to RMB 45.48 billion, with 3.527 million square meters delivered, but contract sales declined by 31.5% to RMB 35.01 billion | Indicator | H1 2025 | H1 2024 | YoY Change (%) | | :--- | :--- | :--- | :--- | | Revenue (RMB million) | 45,478 | 33,758 | 34.7% | | Total GFA Delivered (million sq.m.) | 3.527 | 3.029 | 16.4% | | Revenue per sq.m. (RMB/sq.m.) | 12,894 | 11,145 | 15.7% | | Region (Revenue) | H1 2025 (RMB million) | H1 2024 (RMB million) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Yangtze River Delta Region | 19,082 | 5,949 | 220.8% | | Western Region | 9,074 | 13,221 | -31.4% | | Bohai Rim Region | 8,880 | 8,582 | 3.5% | | Southern China Region | 6,094 | 4,371 | 39.4% | | Central China Region | 2,348 | 1,635 | 43.6% | | Indicator | H1 2025 | H1 2024 | YoY Change (%) | | :--- | :--- | :--- | :--- | | Contract Sales (RMB million) | 35,010 | 51,120 | -31.5% | | Total GFA Sold (million sq.m.) | 2.614 | 3.655 | -28.5% | | Average Selling Price (RMB/sq.m.) | 13,393 | 13,985 | -4.3% | | Region (Contract Sales) | H1 2025 (RMB million) | Proportion (%) | | :--- | :--- | :--- | | Western Region | 9,825 | 28.1% | | Yangtze River Delta Region | 9,293 | 26.5% | | Bohai Rim Region | 8,228 | 23.5% | | Southern China Region | 4,206 | 12.0% | | Central China Region | 3,458 | 9.9% | - As of June 30, 2025, contract sales already sold but not yet recognized amounted to RMB 105.9 billion, covering an area of approximately 8.54 million square meters[47] Operation Business In H1 2025, operation business generated RMB 7.01 billion in tax-exclusive rental income, a 2.5% increase, achieving a 77.7% operating gross margin and significant investment property revaluation gains - Operation business primarily includes commercial investment (urban shopping centers "Tianjie" and community shopping centers "Xingyuehui") and asset management (long-term rental apartments "Guanyu", vibrant neighborhoods "Huan Si", serviced apartments "Champs-Elysees Residence", industrial offices "Blue Ocean Engine", women's and children's hospitals "Youyou Baby", and health and elderly care "Chunshan Wanshu")[48] | Indicator | H1 2025 | | :--- | :--- | | Tax-exclusive Rental Income | RMB 7.01 billion (YoY growth of 2.5%) | | Commercial Income Proportion | 78.5% | | Asset Management Income Proportion | 21.5% | | Operating Gross Margin | 77.7% (YoY growth of 2.3%) | | GFA of Opened Shopping Malls | 9.43 million square meters | | Shopping Mall Rental Income | RMB 5.50 billion (YoY growth of 4.9%) | | Overall Occupancy Rate of Shopping Malls | 96.8% | | Guanyu Opened Units | 127,000 units | | Guanyu Overall Occupancy Rate | 95.6% | | Guanyu Projects Opened for over six months Occupancy Rate | 97.2% | | Investment Property Revaluation Gain | RMB 2.82 billion | Service Business In H1 2025, service business revenue slightly increased to RMB 6.26 billion, maintaining a gross margin of approximately 30.0%, with property management covering 400 million square meters - Service business primarily includes property management (providing thirteen major formats such as residential management and commercial enterprise services) and construction agency business (Longfor Smart Manufacturing providing full-format, full-cycle, digital one-stop solutions)[51] | Indicator | H1 2025 | | :--- | :--- | | Tax-exclusive Revenue | RMB 6.26 billion (YoY growth of 0.02%) | | Gross Margin | Approximately 30.0% | | Property Managed Area | Approximately 400 million square meters | - Longfor Smart Manufacturing's agency construction business has expanded to core first and second-tier cities including Beijing, Shanghai, Chengdu, Chongqing, Xi'an, and Hangzhou, continuously focusing on deep cultivation and achieving high-quality rapid development through a key client strategy[51] Cost Control In H1 2025, administrative expenses were 3.5% and selling expenses were 3.2% of development contract sales and operating service revenue, reflecting efficiency efforts | Expense Type | Proportion of Development Contract Sales and Operating Service Revenue | | :--- | :--- | | Administrative Expenses | 3.5% | | Selling Expenses | 3.2% | Income Tax Expense Total income tax expense for H1 2025 was RMB 2.44 billion, comprising RMB 1.85 billion in corporate income tax and RMB 0.59 billion in land appreciation tax | Tax Type | H1 2025 (RMB billion) | | :--- | :--- | | Corporate Income Tax Expense | 1.85 | | Land Appreciation Tax | 0.59 | | Total Income Tax | 2.44 | Profitability In H1 2025, the Group's core after-tax profit margin was 3.0%, and core after-equity profit margin was 2.4% | Indicator | H1 2025 | | :--- | :--- | | Core After-tax Profit Margin | 3.0% | | Core After-equity Profit Margin | 2.4% | Land Reserve Replenishment As of June 30, 2025, total land reserves were 28.4 million square meters, with an average cost of RMB 4,207 per square meter, and new acquisitions focused on the Yangtze River Delta and Western regions | Indicator | As of June 30, 2025 | | :--- | :--- | | Total Land Reserve GFA | 28.4 million square meters | | Attributable GFA | 21.13 million square meters | | Average Cost | RMB 4,207/square meter | | Newly Acquired Land Reserve GFA (H1) | 0.249 million square meters | | Newly Acquired Attributable GFA (H1) | 0.184 million square meters | | Newly Acquired Average Attributable Cost (H1) | RMB 7,907/square meter | | Land Reserve Region Distribution | Proportion of Total GFA (%) | Proportion of Attributable GFA (%) | | :--- | :--- | :--- | | Bohai Rim Region | 36.3% | 43.5% | | Western Region | 28.0% | 27.4% | | Central China Region | 17.1% | 12.4% | | Yangtze River Delta Region | 11.3% | 10.3% | | Southern China Region | 7.3% | 6.4% | - Newly acquired land reserves in the first half were primarily distributed in the Yangtze River Delta Region (52.2%) and the Western Region (47.8%)[55] - After the reporting period, a new project, Chengdu Jinxiu Avenue, was acquired in the Western Region, with a total GFA of 0.025 million square meters and an attributable GFA of 0.011 million square meters[55] Financial Position As of June 30, 2025, total consolidated borrowings were RMB 169.80 billion, with cash on hand of RMB 44.67 billion, a net gearing ratio of 51.2%, and an average financing cost of 3.58% | Indicator | As of June 30, 2025 | | :--- | :--- | | Total Consolidated Borrowings | RMB 169.80 billion | | Cash on Hand | RMB 44.67 billion (including RMB 13.41 billion in pre-sale regulatory funds) | | Net Gearing Ratio | 51.2% | | Asset-Liability Ratio Excluding Prepayments | 56.1% | | Average Financing Cost | 3.58% per annum | | Average Contractual Borrowing Tenor | 10.95 years | | Non-mortgaged Debt as Proportion of Total Debt | 31.6% | | Debt Due within One Year | RMB 25.61 billion | | Debt Due within One Year as Proportion of Total Debt | 15.1% | | Cash-to-Short-Term Debt Ratio (excluding pre-sale regulatory funds and restricted funds) | 1.14 times | - The Group's credit ratings are BB (S&P), Ba3 (Moody's), BB- (Fitch), and AAA (China Chengxin International Credit Rating)[60] - Approximately 86.0% of total borrowings are denominated in RMB, and 14.0% in foreign currencies, with foreign currency borrowings fully hedged with currency swaps to control exchange rate risk[61] - Approximately 16% of borrowings bear interest at fixed annual rates of 3.0% to 4.8%, with the remainder bearing floating interest rates[61] Employees and Remuneration Policy The Group's remuneration policy is based on employee performance, experience, and market wages, including basic salary, cash bonuses, and share-based compensation - Remuneration policy is based on employee performance, work experience, and market wage levels, including basic salary, cash bonuses, and share-based compensation[62] - Cash bonuses are comprehensively assessed based on the achievement of Group performance targets and subsidiary balanced scorecard scores[62] Review and Outlook The review highlights the property market's recovery and the Group's commitment to high-quality development across its five business segments, with a forward-looking strategy focused on debt reduction and sustainable growth - In the first half, the real estate market continued its recovery, with national commercial housing sales decreasing by 5.5% year-on-year to RMB 4.4 trillion, as policies continued to stabilize expectations, stimulate demand, optimize supply, and mitigate risks[63] - The Group adheres to a high-quality development model, focusing on three major business segments: development, operation, and services, and synergistically developing five business channels: property development, commercial investment, asset management, property management, and smart construction[63] - Development business achieved contract sales of RMB 35.01 billion in the first half, with sales in first and second-tier cities accounting for approximately 90%, and a consolidated cash collection rate exceeding 100%; in the second half, the focus will remain on investment layout in core cities and inventory destocking[63] - Commercial investment added 1 heavy-asset shopping mall in the first half, accumulating 89 operational shopping malls, with an occupancy rate of 97% at period-end and rental income increasing by 4.9% year-on-year to RMB 5.50 billion; 10 new shopping malls are planned to open in the second half[64] - Asset management brand "Longfor Smart Asset Management" achieved revenue of RMB 1.51 billion in the first half, of which long-term rental apartment brand "Guanyu" contributed RMB 1.24 billion in rental income, with 127,000 opened units and an occupancy rate of approximately 96% at period-end[64] - Property management brand "Longfor Smart Living" achieved revenue of RMB 5.53 billion in the first half, managing approximately 400 million square meters, building a smart space management platform based on digital technology[65] - Smart construction brand "Longfor Smart Manufacturing" achieved revenue of RMB 0.70 billion in the first half, achieving high-quality rapid development through its full-format development experience and digital technology capabilities[65] - Looking ahead, the Group will adhere to its core strategy of high-quality development, maintain prudent financial management, orderly reduce debt, adjust inventory structure, and promote steady growth in its operation and service businesses, driven by positive operating cash flow for sustainable development[65] Declaration of Interim Dividend The Board declared an interim dividend of RMB 0.07 per share for H1 2025, payable in HKD on April 30, 2026, with shareholders having the option to receive it in cash or shares - The Board declared an interim dividend of RMB 0.07 per share for the six months ended June 30, 2025[66] - The interim dividend will be declared in RMB and paid in HKD, converted at the average middle exchange rate of RMB to HKD published by the People's Bank of China from March 12 to March 13, 2026[66] - The interim dividend will be paid on April 30, 2026, to shareholders whose names appear on the register of members on March 20, 2026[66] - Eligible shareholders have the option to receive the dividend in cash, new shares, or a combination of cash and new shares (scrip dividend scheme)[66] Closure of Register of Members The company's share transfer registration will be suspended from March 18 to March 20, 2026, to determine eligibility for the interim dividend - The Company's share transfer registration will be suspended from March 18, 2026, to March 20, 2026 (both dates inclusive)[68] - To be eligible for the interim dividend, all share transfer documents accompanied by the relevant share certificates must be lodged with the Hong Kong Share Registrar Branch by 4:30 p.m. on March 17, 2026[68] Purchase, Sale or Redemption of the Company's Listed Securities Neither the company nor its subsidiaries purchased, sold, or redeemed any listed securities during H1 2025, and no shares were held in treasury as of June 30, 2025 - For the six months ended June 30, 2025, neither the Company nor its subsidiaries purchased, sold, or redeemed any listed securities[69] - As of June 30, 2025, the Company held no treasury shares[69] Corporate Governance This section outlines the company's corporate governance practices, including the role of the Audit Committee and adherence to the Standard Code for Securities Transactions by Directors Audit Committee The Audit Committee, composed of three independent non-executive directors chaired by Mr. Chan Chi An, has reviewed the Group's unaudited interim results for H1 2025 - The Audit Committee comprises three independent non-executive directors, with Mr. Chan Chi An serving as Chairman[71] - The Committee has reviewed the Group's unaudited condensed consolidated interim results for the six months ended June 30, 2025[71] Standard Code for Securities Transactions by Directors The company has adopted a standard code for directors' securities transactions, which all directors confirmed adherence to during the reporting period - The Company has adopted a standard code for directors' dealings in the Company's securities, which is no less exacting than that set out in Appendix C3 of the Listing Rules[72] - All Directors confirmed compliance with the required standards set out in the Standard Code for the six months ended June 30, 2025[72] Publication of Results Announcement and Interim Report This announcement is published on the company's and HKEX websites, with the 2025 interim report to be dispatched to shareholders and published online in due course - This announcement has been published on the Company's website (www.longfor.com) and the HKEXnews website (www.hkexnews.hk)[73](index=73&type=chunk) - The Company's 2025 Interim Report will be dispatched to shareholders and published on the aforementioned websites in due course[73]