Core Viewpoint - The Cheung Kong Group, led by the Li Ka-shing family, is facing scrutiny due to its strategy of aggressively discounting properties for sale, which, while boosting sales volume, has negatively impacted the company's financial performance [2][4]. Financial Performance - For the first half of the year, Cheung Kong Group reported revenues of approximately HKD 25.386 billion, a year-on-year increase of 15.3% [2]. - The net profit attributable to shareholders was HKD 6.302 billion, representing a significant decline of nearly 27%, primarily due to substantial reductions in the valuation of investment properties [2]. Property Sales - The confirmed property sales revenue for the first half reached HKD 7.366 billion, marking a substantial year-on-year increase of nearly 59% [4]. - Sales from mainland properties accounted for about 52% of total sales, generating HKD 3.83 billion, which is a year-on-year growth of approximately 117% [4]. - However, the sales revenue from the business segment showed a decline in profit, with a revenue of HKD 1.768 billion, down about 3% [4]. Discounting Strategy - Since 2024, Cheung Kong Group has frequently discounted various projects in Hong Kong, with the Blue Coast project selling at HKD 21,900 per square foot, which is a 30% discount compared to surrounding second-hand property prices [4]. - Other projects, such as the LYOS project and the Tuen Mun project, have also seen varying degrees of price reductions [4]. Future Outlook - The company’s management indicated that the current low-interest environment in Hong Kong has led to a rebound in transaction volumes, particularly for small to medium-sized units, but overall property prices remain under pressure due to high supply [5]. - The strategy of discounting properties is expected to continue affecting the company's performance, with future profitability from property development anticipated to be limited [5]. - As of June, the company's land reserves are at a relatively low level, with approximately 67 million square feet of developable land, including 6 million square feet in Hong Kong, 58 million square feet in mainland China, and 3 million square feet overseas [5].