SINOLINK SECURITIES·2024-08-31 13:03Investment Rating - The report maintains a "Neutral" rating for the company due to pressures from inventory reduction, impairment, and asset disposal [3]. Core Views - The company reported a significant decline in both revenue and net profit for the first half of 2024, with revenue of 142.78 billion RMB, down 28.9% year-on-year, and a net loss attributable to shareholders of 9.85 billion RMB, a decrease of 199.8% [2]. - The decline in performance is attributed to several factors, including a significant drop in the scale and gross margin of property development projects, impairment provisions, losses from non-core financial investments, and asset disposal losses [2]. - The company remains a leader in the industry in terms of development scale, completing the delivery of 74,000 units and achieving sales of 127.33 billion RMB, despite a 37% year-on-year decline in sales [2]. - The company is actively pursuing large asset and equity transactions to improve cash flow, with a signed amount of 20.4 billion RMB in bulk transactions from January to July 2024 [2]. - The company has successfully utilized financial support policies to transform its financing model, with a total of 61.2 billion RMB in new financing and refinancing in the first half of 2024 [2]. Summary by Sections Financial Performance - In the first half of 2024, the company achieved operating revenue of 142.78 billion RMB, a decrease of 28.9% year-on-year, and a net loss of 9.85 billion RMB, compared to a profit in the previous year [2][3]. - The gross margin for development business fell to 6.8%, down 13.5 percentage points year-on-year [2]. - The company has revised its profit forecasts for 2024-2026, expecting net profits of -7.92 billion RMB, 440 million RMB, and 2.4 billion RMB respectively [3]. Asset Management - The company completed resource revitalization and optimization worth 45.5 billion RMB, achieving cash inflows of 8.1 billion RMB from revitalization and receivables [2]. - The company has made progress in innovative asset trading tools, including the issuance of 3.26 billion RMB in commercial infrastructure REITs [2]. Financing Activities - The company secured a total of 61.2 billion RMB in new financing and refinancing in the first half of 2024, with a comprehensive financing cost of 3.66% [2]. - The company has also completed the repayment of 7.3 billion RMB in domestic public bonds and approximately 10.4 billion RMB in overseas public bonds [2].