Founder Securities(SH:601901) 券商中国·2025-06-15 23:30Core Viewpoint - The article highlights the challenges faced by second and third-tier commercial real estate, using the case of Fangzheng Securities' response to the Shanghai Stock Exchange's inquiry as a key example [1][2]. Group 1: Financial Performance and Asset Valuation - Fangzheng Securities reported a total of 1136.64 billion yuan in various financial investments, marking a 14.54% year-on-year increase. However, the net investment income and fair value changes decreased by 13.91% to 13.49 billion yuan [3][4]. - The company experienced significant losses in its trading financial assets, with a fair value loss of 6.49 billion yuan and derivative financial instruments losses totaling 14.75 billion yuan [4][5]. - The fair value of Fangzheng's investment properties dropped from 17.63 billion yuan in 2023 to 11.88 billion yuan in 2024, with a recognized fair value change loss of 5.9 billion yuan [7][8]. Group 2: Specific Asset Challenges - The Zhengzhou Yuda International Trade Building, initially valued at 12.49 billion yuan, saw its assessed value decline to 8.75 billion yuan in 2024, with a final transaction price of 7.3 billion yuan, reflecting the broader issues in Zhengzhou's commercial real estate market [2][6][12]. - The average rental price for office buildings in Zhengzhou decreased from 1.491 yuan per square meter in 2022 to 1.387 yuan per square meter in 2024, indicating a downward trend in rental income [8][9]. - The average rental price for commercial shops in Zhengzhou also fell significantly, from 3.75 yuan per square meter in 2022 to 2.53 yuan per square meter in 2024, with a notable decline of 23.27% in 2024 [10][11]. Group 3: Strategic Decisions and Market Conditions - Fangzheng Securities plans to sell the Zhengzhou Yuda International Trade Building to enhance cash flow and improve capital efficiency, indicating a strategic shift to focus on core business operations [13]. - The overall vacancy rate for quality office buildings in Zhengzhou increased from 19.7% in June 2022 to 25.3% in June 2024, reflecting the deteriorating market conditions [8].