2 1 Shi Ji Jing Ji Bao Dao·2026-03-27 12:17Core Viewpoint - Longfor Group reported a significant decline in revenue and profit for the year 2025, reflecting the ongoing challenges in the real estate market, including a drop in new home sales and increased inventory pressure [2][3]. Financial Performance - Longfor Group achieved an operating revenue of 97.31 billion yuan, a year-on-year decline of over 20% [2]. - The revenue from real estate development was 70.54 billion yuan, while the revenue from operations and services was 26.77 billion yuan, accounting for 27.5% of total revenue [2]. - The net profit attributable to shareholders was 1.02 billion yuan, but after excluding fair value changes, the company recorded a loss of 1.7 billion yuan, marking the first loss under this accounting measure [2]. Sales and Market Conditions - The total contracted sales amount for Longfor was approximately 63.16 billion yuan, a year-on-year decrease of 37.54% [2]. - The company faced pressure on profit margins due to inventory challenges and price adjustments in the market [2]. Debt Management - Longfor has successfully reduced its total debt to 152.81 billion yuan, a decrease of 23.51 billion yuan from the previous year, with cash reserves of 29.2 billion yuan [2]. - The net debt ratio stood at 52.2%, with an average financing cost of 3.51% and an average loan term of 12.12 years [2]. Strategic Direction - The Chairman and CEO emphasized the need for a transition to a new development model while maintaining a strong foundation in traditional development business [3]. - Longfor has integrated business and debt adjustments, reducing interest-bearing debt by 60 billion yuan over the past three and a half years [3]. - The company aims to shift its revenue model, with operational and service income expected to surpass development income by 2028 [3][4].