SHUI ON LAND(HK:00272) Xin Jing Bao·2025-08-29 07:55Core Viewpoint - The real estate industry is still undergoing adjustments, with many uncertainties remaining in the market. Despite these challenges, the company managed to maintain profitability in the first half of the year, which is commendable [2] Financial Performance - In the first half of 2025, the company reported revenue of 2.074 billion yuan, unchanged year-on-year, and a profit of 81 million yuan, down 56% year-on-year. Shareholders' profit was 51 million yuan. Excluding the impact of fair value impairment of investment properties, core profit increased by 144% to 263 million yuan. Contracted property sales amounted to 3.473 billion yuan, a year-on-year increase of 457% [2][3][7] Market Strategy - The company remains optimistic about the Shanghai real estate market and plans to continue focusing on first-tier cities, particularly Shanghai, while adhering to a cautious investment approach to maintain financial stability [2][3] - The company has identified a total sales amount of 17.521 billion yuan that is pending delivery and will be recognized in the second half of 2025 and beyond [3] Asset Expansion - As of the end of the first half of the year, the company had a total land reserve of 7.8 million square meters, including 5.7 million square meters available for lease and sale, and 2.1 million square meters for other facilities [4] - The company is pursuing a "light asset expansion" strategy, seeking external capital and strategic partners to expand its business scale and land reserves while ensuring sustainable development [5][6] Project Development - The company has added three new light asset projects in the first half of the year, including a partnership with Tianan Group for a residential and commercial land acquisition project [5] - The company is also collaborating with the Shanghai Fengxian District government on a project that includes approximately 326,000 square meters of residential and 95,000 square meters of commercial space, holding a 5% stake in the project [6] Market Outlook - The company acknowledges that profitability is challenging, with a significant decrease in profit primarily due to fair value impairment and losses from joint ventures. The management anticipates that the real estate market is in a bottoming process, which will take time to restore market confidence [7] - The management views recent regulatory policies as precise adjustments that could stimulate potential demand, particularly benefiting sales of residential properties outside the outer ring of Shanghai [7]