CREC(SZ:000736) Bei Jing Shang Bao·2025-07-29 06:18Core Viewpoint - China Communications Real Estate is facing significant financial challenges, with a projected net loss of 1.19 billion yuan for the first half of 2025, an increase of 219 million yuan compared to the same period last year. The company is undergoing structural adjustments and a strategic shift towards light asset operations, primarily property services, in an attempt to reverse its losses [1][3][5]. Financial Performance - The company anticipates a net loss of 1.19 billion yuan for the first half of 2025, which is a deterioration of 219 million yuan from the previous year [3]. - Cumulative losses for 2023 and 2024 have reached 6.8 billion yuan, with 2024 alone accounting for a net loss of 5.179 billion yuan [5]. - The total revenue for 2024 was 18.302 billion yuan, a decline of 44.59% year-on-year, with real estate sales revenue dropping by 46.69% [7]. Business Strategy and Adjustments - The new chairman, Guo Zhulong, has initiated a restructuring of the company, reducing the number of city companies from 16 to 9 and streamlining management layers to improve operational efficiency [6][7]. - The company plans to divest its real estate development business, transferring related assets and liabilities to its controlling shareholder for a nominal price of 1 yuan, aiming to reduce its debt ratio significantly [8][9]. - In November 2024, the company announced plans to acquire 100% of China Communications Property Service Group for nearly 700 million yuan, laying the groundwork for its transition to property services [10]. Market Position and Challenges - As of 2024, property management revenue accounted for only 3.98% of total revenue, highlighting the company's limited presence in this sector compared to competitors like New City Holdings and Vanke [11]. - The company faces the critical challenge of increasing revenue and reducing net losses in the second half of 2025, as it transitions to a light asset model [11].