Huafa Properties(SH:600325) Xin Lang Cai Jing·2025-12-31 05:25Core Viewpoint - Shanghai Xinpudongan Real Estate Co., Ltd. successfully acquired a land parcel in Pudong New District, marking a significant step for Huafa in the Shanghai real estate market, especially after a year of limited participation in land auctions [1][8]. Group 1: Land Acquisition Details - The land parcel acquired is located in Zhoupu Town, covering an area of 3.86 hectares with a plot ratio of 2.0 [2][9]. - The shareholders of Shanghai Xinpudongan include Huafa (45%), Lujiazui (40%), and Zhoupu Urban Construction (15%) [1][8]. - This acquisition is part of a "village-in-the-city" redevelopment project, which includes requirements for public service facilities and residential management [2][9]. Group 2: Market Participation and Strategy - Huafa's participation in Shanghai's land auction market has decreased significantly, with only two appearances in 2024 and one in 2025, compared to 25 land parcels in 2023 [10][11]. - The shift in auction rules to a "high price wins" format has disadvantaged Huafa compared to larger state-owned enterprises [11]. - The company has faced challenges with project sales velocity, with only 45.5% of units sold in its independently developed project in Qingpu [12][11]. Group 3: Sales Performance - Huafa's project in Qingpu, launched in June 2024, has sold 277 out of 609 units, reflecting a sales rate of 45.5% as of December 30, 2025 [12]. - Another project, located in Songjiang, has performed better, with 808 out of 956 units sold, achieving a sales rate of 84.5% [14][15]. - The overall market conditions remain challenging, with increasing pressure on inventory turnover for Huafa [15][16]. Group 4: Strategic Implications - The agreement-based land acquisition strategy allows Huafa to secure land at lower prices while collaborating with local state-owned enterprises, enhancing operational efficiency [17]. - This dual approach of land acquisition and inventory management is seen as a prudent strategy for Huafa to navigate the current market landscape [17].