LJZ(SH:600663) Zhong Guo Jing Ying Bao·2025-05-23 19:36Core Viewpoint - Shanghai Lujiazui Financial Trade Zone Development Co., Ltd. has successfully reversed its revenue decline in 2024, achieving significant growth in both revenue and net profit after four consecutive years of decline [3][4]. Revenue Growth - In 2024, the company reported a revenue of 14.651 billion yuan, a year-on-year increase of 33.12%, and a net profit attributable to shareholders of 1.508 billion yuan, up 5.31% [4]. - The company’s revenue growth had been negative from 2020 to 2023, with declines of -2.02%, -4.16%, -15.21%, and -9.25% respectively [3]. Business Performance - The real estate sector remains the core of Lujiazui's revenue, contributing 13.312 billion yuan in 2024, while financial services generated only 1.339 billion yuan [5]. - The increase in revenue is attributed to the combination of residential and office sales, as well as the activation of existing assets [5]. Cash Flow Challenges - Despite improved revenue, the company's operating cash flow faced challenges, with a net cash flow from operating activities of 1.316 billion yuan in 2024, a decrease of 88.44% year-on-year [5]. - The decline in cash flow is primarily due to reduced inflows from residential sales compared to the previous year [5]. Market Dynamics - The overall sales performance in the real estate market is under pressure, with Lujiazui's residential property contract sales area dropping by 52% and sales amount decreasing by 49% in 2024 [7]. - The company achieved a total cash inflow of 9.551 billion yuan from property sales, with significant contributions from several key projects [7]. Office Leasing Performance - The office leasing segment experienced a decline, with cash inflow from office business at 3.153 billion yuan, down approximately 10% from the previous year [8]. - The demand for premium office spaces in core areas remains resilient, while non-core areas face higher leasing pressures [9]. Development Strategy - Lujiazui has extended its development focus beyond the Lujiazui Financial City to include areas like Qiantan International Business District and Zhangjiang Science City [10]. - The company aims to optimize its commercial real estate leasing business and enhance resource allocation and management services [10].