LONGFOR GROUP(HK:00960) 3 6 Ke·2025-08-30 02:15Core Viewpoint - Longfor Group has successfully transitioned from a traditional developer to a high-quality development model, focusing on stable cash flow and operational efficiency, which enhances its resilience against market fluctuations [3][4]. Financial Performance - In the first half of 2025, Longfor Group reported a revenue of 58.75 billion yuan, a year-on-year increase of 25%, with development business revenue at 45.48 billion yuan and operational business revenue at 13.27 billion yuan, up 1.3% [1]. - The core net profit after rights was approximately 1.38 billion yuan, with operational business gross margin at 77.7% and service business gross margin around 30% [1][3]. Business Model Transition - Longfor's operational and service businesses have become significant contributors to revenue, with operational income accounting for 22.6% of total revenue in the first half of 2025, up from less than 10% in 2022 [3]. - The company has invested over 100 billion yuan in cultivating its commercial investment and operational businesses, leading to a balanced business structure [3][4]. Debt Management - Longfor has reduced its interest-bearing debt by 6.53 billion yuan in the first half of 2025, bringing the total to 169.8 billion yuan, with a target to further reduce debt by approximately 20 billion yuan by the end of the year [7]. - The average financing cost is 3.58% with an average loan term of 10.95 years, both at historical lows [7]. Land Acquisition Strategy - In the first half of 2025, Longfor achieved a contract sales amount of 35.01 billion yuan, with 90% of sales concentrated in first- and second-tier cities [8][9]. - The company remains cautious in land acquisition, prioritizing financial safety and maintaining a land reserve of 28.4 million square meters, with unsold value exceeding 200 billion yuan [10]. Future Outlook - Longfor plans to open approximately 10 new shopping malls in 2026 and 2027, continuing to expand its operational footprint [5]. - The management expresses optimism about the long-term development of the real estate market, particularly in core urban areas where demand for quality housing remains strong [10].