Ge Long Hui·2025-08-29 04:25Core Insights - Longfor Group reported a revenue of RMB 58.75 billion for the first half of 2025, representing a year-on-year increase of 25.4% [1] - The company's attributable profit to shareholders was RMB 3.22 billion, with a core profit of RMB 1.38 billion after excluding fair value changes of investment properties and other financial instruments [1] Revenue Breakdown - Real estate development revenue reached RMB 45.48 billion, up 34.7% year-on-year [1] - Operating business revenue was RMB 7.01 billion, showing a growth of 2.5% [1] - Service business revenue slightly increased to RMB 6.26 billion [1] - Combined revenue from operating and service businesses was RMB 13.27 billion, a 1.3% increase, accounting for 22.6% of total revenue [1] Profitability Metrics - Basic earnings per share attributable to shareholders were RMB 0.48, while core basic earnings per share were RMB 0.21 after adjustments [1] - The board declared an interim dividend of RMB 0.07 per share [1] Financial Position - As of June 30, 2025, total borrowings amounted to RMB 169.8 billion, a decrease of RMB 6.53 billion from the end of the previous year [2] - Cash on hand was RMB 44.67 billion, with total equity attributable to shareholders at RMB 165.07 billion [2] - The net debt-to-equity ratio stood at 51.2%, with an average financing cost of 3.58% and an average loan term of 10.95 years [2] Sales Performance - Contract sales for the first half of 2025 totaled RMB 35.01 billion, with a total saleable area of 2.614 million square meters and an average selling price of RMB 13,393 per square meter [2] - Sales in various regions included RMB 9.83 billion in the West, RMB 9.29 billion in the Yangtze River Delta, RMB 8.22 billion in the Bohai Rim, RMB 4.21 billion in South China, and RMB 3.46 billion in Central China, representing 28.1%, 26.5%, 23.5%, 12.0%, and 9.9% of total contract sales respectively [2] Land Reserves - As of June 30, 2025, total land reserves were 28.4 million square meters, with an equity area of 21.13 million square meters and an average cost of RMB 4,207 per square meter [3] - Land reserves by region included 36.3% in the Bohai Rim, 28.0% in the West, 17.1% in Central China, 11.3% in the Yangtze River Delta, and 7.3% in South China [3] Strategic Outlook - The company plans to maintain its investment focus in core cities while adapting the pace of project launches based on market conditions [3] - The strategy emphasizes inventory reduction, customer-centric product enhancement, and a commitment to high-quality development and prudent financial management [3]