CK ASSET(HK:01113) Hua Xia Shi Bao·2025-07-31 08:41Core Viewpoint - The recent launch of the "Greater Bay Area Dual Residence Life" property plan by Changjiang Industrial Group has garnered significant market attention, with nearly 400 residential units being offered at an entry price of approximately 400,000 RMB per unit, reflecting a strategic move to optimize operations amid a challenging real estate market [1][2]. Group 1: Property Launch and Market Response - The properties included in the plan are primarily long-held assets acquired at lower prices, with significant price reductions observed, such as the Dongguan Haiyi Haoting project, which has seen prices drop from nearly 30,000 RMB per square meter to 15,000 RMB [1][2]. - The project lineup spans various types, from high-rise units to villas, with prices ranging from 400,000 RMB to nearly 10 million RMB, indicating a broad market targeting strategy [2]. - Despite the attractive pricing, the market response has been tepid, with some projects like the Guangzhou Yicui Garden and Zhongshan Longpu Garden nearing completion but showing limited new sales activity [3][4]. Group 2: Sales Performance and Inventory Challenges - The Dongguan Haiyi Haoting project, despite its luxury positioning, faces high inventory issues, with around 160 units remaining unsold since their launch in 2014, indicating a significant backlog [4][5]. - The recent sales push for the Dongguan project resulted in 84 units sold on the first day, generating 600 million RMB, but the overall inventory pressure remains high with over 462,260 square feet of commercial and residential land still undeveloped [5][10]. - The Huizhou Longpu Garden project has struggled with sales, with nearly 60% of sold units purchased by Hong Kong buyers, reflecting a shift in buyer demographics but insufficient ongoing sales momentum [8][9]. Group 3: Financial Performance and Strategic Implications - Changjiang Industrial Group's financial results indicate a decline in revenue, with a reported 455.29 billion HKD in revenue for 2024, down 3.63% year-on-year, and a significant drop in net profit by 21.24% [12][13]. - The company's strategy of aggressive price reductions to stimulate sales has led to a sharp decrease in profit margins, particularly in mainland property sales, which saw a 24.26% decline in revenue [13][14]. - The group holds substantial land reserves, with approximately 7.4 million square feet available for future development, primarily in the Greater Bay Area, which may support sales over the next 3 to 5 years [16][17].