Ge Long Hui·2025-09-02 12:17Core Viewpoint - The company reported a decline in revenue and net profit for the first half of 2025, indicating pressure on profitability despite stable revenue performance [1][2]. Revenue and Profitability - In H1 2025, the company achieved revenue of 832.2 billion, a year-over-year decrease of 4.5% [1] - The net profit attributable to shareholders was 86.0 billion, down 16.6% year-over-year, while the core profit attributable to shareholders was 87.8 billion, a decline of 17.5% [1] - The decrease in net profit was attributed to a 4.7 percentage point drop in gross margin to 17.4%, primarily due to reduced project profits from the previous industry cycle [1] Sales Performance - The company recorded sales of 1201.1 billion in development business, a year-over-year decrease of 19.0%, maintaining the second position in the market [2] - Sales in first-tier cities and Hong Kong accounted for 53.7% of total sales, with Beijing contributing 304.5 billion [2] - The company acquired 17 projects in H1 2025, with a land cost of 401.1 billion and a land area of 2.57 million square meters, maintaining a high land acquisition intensity of 33.6% [2] Commercial Operations - Commercial revenue remained stable at 35.4 billion, with office buildings, shopping centers, long-term rentals, and hotels contributing 17 billion, 11.7 billion, 1.6 billion, and 5.1 billion respectively [2] - The leasing rate for mature shopping centers reached 96.2%, with sales and foot traffic increasing by 6.7% and 11.0% year-over-year [2] Financial Health - The company reported a debt-to-asset ratio of 53.7% and a net debt ratio of 28.4%, with interest-bearing loans reduced by 141.2 billion since the beginning of the year [3] - Cash on hand was 1089.6 billion, representing 12.1% of total assets, and the average financing cost decreased by 20 basis points to 2.9% [3] Future Outlook - The company is expected to achieve revenue of 1893.4 billion, 1927.7 billion, and 1983.4 billion from 2025 to 2027, with net profits of 154.3 billion, 160.7 billion, and 170.9 billion respectively [3] - The company is focusing on first and second-tier cities, with a strong financial structure and quality land reserves, indicating potential for continued growth [3]