Core Viewpoint - Longfor Group reported strong financial performance for 2024, with total revenue of RMB 127.47 billion and net profit of RMB 10.4 billion, highlighting the resilience of its operational and service segments amid a challenging real estate market [1][3] Financial Performance - Longfor's operational and service business generated revenue of RMB 26.71 billion, a year-on-year increase of 7.4%, contributing 21% to total revenue [1] - The company achieved a net debt ratio of 51.7% by the end of 2024, with cash on hand amounting to RMB 49.42 billion and a cash-to-short-term debt ratio of 1.63 [1] - The board proposed a final dividend of RMB 0.1 per share, with a total dividend payout of RMB 0.32 per share for the year, representing a payout ratio of approximately 30% [2] Sales and Market Position - Longfor maintained a stable sales figure exceeding RMB 100 billion, ranking among the top tier in the industry, with a total contract sales of RMB 101.12 billion for 2024 [3] - The company reported a sales return rate exceeding 100%, with significant sales in 19 cities across the country [3] Strategic Focus - Longfor aims to balance its revenue structure between development and operational services by 2028, prioritizing debt safety over new investments [3] - The company plans to launch over RMB 160 billion in saleable inventory, with more than 80% located in first- and second-tier cities [4] Operational Insights - Longfor's operational business, excluding tax rental income, reached RMB 13.52 billion, a 4.5% increase year-on-year, with a gross profit margin of 75% [7] - The commercial segment generated rental income of RMB 10.98 billion, with a 7% increase and a significant rise in both sales and foot traffic [9][11] Land Acquisition and Development - In 2024, Longfor acquired land reserves totaling 830,000 square meters, with an average acquisition cost of RMB 13,285 per square meter [5] - The company maintained a cautious investment approach despite a recovering land market, focusing on strategic locations and avoiding aggressive bidding [6] Debt Management - Longfor's financial discipline has led to a reduction in total borrowings to RMB 176.32 billion, down over RMB 30 billion from peak levels, with a significant shift towards operational property loans [22][23] - The average financing cost decreased to an annual rate of 4%, with a loan maturity of 10.27 years, indicating a stable debt structure [22]

Core Viewpoint - Longfor Group emphasizes prioritizing debt safety over incremental investment in its 2024 annual performance report, reflecting a cautious approach amid industry challenges [2][4][10]. Financial Performance - In 2024, Longfor Group achieved a revenue of 127.47 billion yuan and a net profit attributable to shareholders of 10.4 billion yuan, with a core net profit of 6.97 billion yuan after excluding fair value changes, resulting in a gross margin of 16% [2][4]. - The operational and service segment generated 26.71 billion yuan in revenue, accounting for approximately 21% of total revenue, up from 9% two years ago, contributing around 8 billion yuan to core net profit [4]. Debt Management - As of the end of 2024, Longfor Group's total borrowings amounted to 176.32 billion yuan, a decrease of approximately 16.3 billion yuan from the beginning of the year, with cash on hand at 49.42 billion yuan and a net debt ratio of 51.7% [10][12]. - The company aims to reduce overall debt to around 140 billion yuan by the end of 2025, with a focus on optimizing the financing structure and extending debt maturity [12]. Land Acquisition and Development Strategy - In 2024, Longfor Group acquired nine plots of land in major cities, adding a total construction area of 830,000 square meters, with an equity area of 390,000 square meters, bringing total land reserves to 33.12 million square meters [5]. - The company plans to maintain a steady investment strategy while ensuring debt repayment safety, with expectations of significant sales opportunities in 2025 [5][12]. Future Growth Expectations - Longfor Group's commercial segment is projected to achieve over 10% growth in 2025, driven by ongoing adjustments and upgrades to existing projects and the opening of a new shopping mall [5].