Xin Lang Cai Jing·2026-03-06 12:31Core Viewpoint - Longfor Group Holdings Limited has issued a profit warning, projecting a significant decline in net profit for the fiscal year ending December 31, 2025, compared to the previous year [1] Financial Performance - The company anticipates net profit attributable to shareholders of approximately RMB 1.0 billion for the year ending December 31, 2025, down from RMB 10.4 billion for the year ending December 31, 2024 [1] - Core profit, excluding the impact of fair value changes of investment properties and other derivative financial instruments, is expected to show a loss between RMB 1.5 billion and RMB 2.0 billion for the year ending December 31, 2025, compared to a core profit of RMB 6.97 billion for the year ending December 31, 2024 [1] Market Conditions - The decline in profit is primarily attributed to ongoing adjustments in the real estate market, leading to pressure on both volume and price, which has resulted in decreased settlement revenue and further reduction in gross profit margins [1] Debt Management - Over the past three years, the company has steadily reduced its debt and optimized its debt structure, with manageable debt maturities expected in the future [1] - The company has achieved positive operating cash flow, including capital expenditures, for three consecutive years [1] Business Strategy - Longfor Group aims to prioritize safety, maintain positive operating cash flow, and continue to reduce debt in an orderly manner [2] - The company is focused on transforming its business model from a traditional developer to an operational service provider, leveraging its operational and service businesses for growth [2]