Mei Ri Jing Ji Xin Wen·2025-08-30 04:09Core Viewpoint - The company remains optimistic about the resilience of the Chinese real estate market in the medium to long term, particularly in core locations of first and second-tier cities where there is a strong demand for quality housing [1][6]. Debt Management - The company plans to reduce interest-bearing debt by over 30 billion yuan by 2025, with a net reduction of no more than 10 billion yuan annually thereafter, focusing on optimizing debt structure and avoiding extensions or defaults [1][2]. - As of now, the company has repaid approximately 14.5 billion yuan in bond principal and interest this year, with all bonds maturing in 2025 already settled [2]. - The company aims to stabilize its total interest-bearing debt around 100 billion yuan in the future, with significant reductions planned for the coming years [2]. Investment Strategy - The company prioritizes financial safety over new investments, having acquired four quality land parcels in key cities this year, adding over 5 billion yuan in new value [3]. - The company maintains a substantial land reserve of 28.4 million square meters, with over 70% located in first and second-tier cities [3]. Revenue Sources - Operating and service business revenue reached 13.27 billion yuan in the first half of the year, accounting for 22.6% of total revenue, marking a historical high [3]. - The company's core profit has been impacted by declining profits in real estate development due to market adjustments, leading to pressure on gross margins [3][4]. Market Outlook - The company anticipates a gradual decrease in settlement and development volumes over the next 1-2 years, with profits expected to stabilize as inventory is reduced and new project margins improve [4]. - The company acknowledges recent challenges in the real estate market, particularly since April, due to a reduction in policy stimulus and slower-than-expected recovery efforts [5][6].