Nan Fang Du Shi Bao·2025-03-27 00:55Core Viewpoint - China Resources Land reported a revenue increase but a significant decline in net profit, highlighting the challenges faced by leading companies in the real estate sector during a period of deep adjustment [2][3]. Financial Performance - In 2024, the company's total revenue reached 278.8 billion yuan, a year-on-year increase of 11%, marking a five-year high [2]. - However, net profit attributable to shareholders decreased by 18.45% to 25.6 billion yuan, the lowest level in five years [2]. Profitability and Margin Analysis - The overall gross margin has dropped from 30.9% in 2020 to 21.6% in 2024, with a significant decline in the gross margin of development sales from 29.1% to 16.8% over the same period [3]. - Despite strong performance in operational real estate, with a gross margin of 70%, the scale of this segment is insufficient to offset the profit gap from development sales [3]. Sales Strategy and Market Response - The decline in development sales margins is attributed to a "price for volume" strategy, with price reductions implemented across various projects to stimulate sales [3]. - For instance, the average transaction price for a project in Beijing was reduced by 5,000 yuan per square meter, resulting in a direct loss of 219 million yuan [3]. Operational Real Estate Performance - The operational real estate segment showed strong results, with retail sales reaching 195.3 billion yuan and an operating profit margin of 61% [4]. - The rental rate for office buildings remained at 75%, maintaining a leading position in the industry [4]. Strategic Focus and Future Outlook - The company emphasizes a focus on first- and second-tier cities, with 94% of investments concentrated in these areas, and 72% in core cities like Beijing, Shanghai, and Hangzhou [5]. - Looking ahead to 2025, the company aims to optimize its development sales and operational real estate strategies while enhancing asset value and solidifying its position in the market [5].