Core Viewpoint - The company is experiencing short-term pressure on performance due to a decline in the real estate market, leading to decreased revenue and profit margins [1][2]. Group 1: Financial Performance - In H1 2025, the company achieved operating revenue of 14.5 billion yuan, a year-on-year decrease of 33% [1]. - The net profit attributable to shareholders was 280 million yuan, down 68% year-on-year, with a net profit margin of 2.0%, a decline of 2.1 percentage points [1]. - The gross margin decreased by 0.4 percentage points to 9.3%, while the sales expense ratio increased by 1.2 percentage points to 3.9% [1]. - The proportion of net profit attributable to shareholders was 74%, a decrease of 28 percentage points year-on-year [1]. Group 2: Sales and Market Activity - The company recorded a contracted sales figure of 16.6 billion yuan in H1 2025, a year-on-year decline of 13% [2]. - The equity sales amounted to 14.2 billion yuan, down 9% year-on-year, with equity sales accounting for 86% of total sales [2]. - The company continued to focus on lower-tier markets, ranking in the top 3 in sales in 19 cities, which accounted for 58% of its presence in 33 cities [2]. - New land reserves added in H1 2025 totaled 1.33 million square meters, exceeding the total for the entire year of 2024 [2]. Group 3: Financial Health and Cost Management - The company achieved sales collection of 16.9 billion yuan in H1 2025, with a collection rate of 102% [3]. - The net cash flow from operating activities was 1.2 billion yuan, remaining positive [3]. - As of the end of H1 2025, the company's net assets were 38.4 billion yuan, an increase of 1% year-on-year [3]. - The weighted average financing cost decreased to 3.5%, down 0.6 percentage points from the end of 2024 [3].