
Core Viewpoint - The company has shown strong sales performance, acquired significant land in Beijing, maintained financial stability, but experienced a decline in core profitability [2][3][4]. Sales Performance - In 2024, the company achieved a total property sales amount of approximately 310.69 billion, a slight increase of 0.28% year-on-year. It ranked second among top real estate companies, trailing Poly Developments by over 12 billion [3][6]. - The sales area decreased by 14% to approximately 11.487 million square meters, while the average sales price increased by 17% to 27,047 per square meter [3][6]. - The company recorded contract sales of 1,640.4 billion in major cities, accounting for 53% of total sales, with Shanghai contributing 704.5 billion [3][6]. Land Acquisition - The company added 22 land parcels in 2024, with a total land reserve area of 4.16 million square meters, a decrease of 46% year-on-year. The total land acquisition cost was 80.6 billion, down 40% [3][8]. - The equity land price in Beijing reached 34.2 billion, representing 46% of the total equity land price across cities [9][12]. Financial Performance - The company's operating revenue for 2024 was 185.2 billion, a decline of 9% year-on-year. Gross profit decreased by 20% to 32.8 billion, with a gross margin of 17.7%, down 2.6 percentage points [4][13]. - Net profit fell by 34% to 17.8 billion, with a net margin of 9.61%, a decrease of 3.7 percentage points [4][15]. - The company’s share of profits from joint ventures dropped by 60% to 649 million due to significant provisions for inventory impairment by its main joint venture [16]. Cash Flow and Debt Management - The company reported a net operating cash inflow of 46.45 billion, with a cash-to-short-term debt ratio of 3.47 and a long-term to short-term debt ratio of 7.45 [5][20]. - The net debt ratio improved to 29.22%, a decrease of 9 percentage points year-on-year, and the average financing cost was 3.1%, among the lowest in the industry [5][22]. Diversification and Commercial Operations - The company expanded its commercial property operations, achieving an operating income of 7.13 billion, a 12% increase year-on-year, with nine new commercial properties added [25][26]. - The commercial property income included 3.57 billion from office rentals and 2.26 billion from shopping centers [25].