Core Viewpoint - The article highlights the performance of China Resources Land (华润置地) during the mid-year financial reporting season, showcasing its resilience and strategic transformation amidst a challenging real estate market [1][2][3]. Industry Background - The real estate sector is undergoing significant adjustments, with a reported 10.6% year-on-year decline in national real estate development investment and a 17.1% drop in new commodity housing sales in 2024 [1]. - The traditional model of relying on land dividends and large-scale development is losing its advantages, prompting companies to explore new growth paths [1]. Company Performance - China Resources Land reported a revenue of 94.92 billion RMB for the first half of the year, a 19.9% increase year-on-year, and a net profit attributable to shareholders of 11.88 billion RMB, up 16.2% [1]. - The company's recurring business revenue reached 20.56 billion RMB, growing by 2.5%, contributing 21.7% to total revenue, with core net profit contribution rising to 60.2%, an increase of 9.6% [1]. Business Model and Strategy - The company operates under a "3+1" business model, focusing on operational real estate and asset management, which has shown strong performance and significant cash flow stability [2][3]. - China Resources Land is recognized for successfully transitioning from a residential growth curve to a commercial growth curve, reflecting its leadership in operational real estate and asset management [5]. Operational Highlights - The operational real estate segment generated 12.1 billion RMB in revenue, a 5.5% increase, maintaining steady growth [6]. - The shopping centers, a core part of the operational real estate business, achieved retail sales of 110.15 billion RMB, a 20.2% increase, significantly outpacing national retail sales growth [7]. Asset Management - The asset management business reached a scale of 462.1 billion RMB by the end of 2024, with an 8.1% year-on-year growth, showcasing industry-leading asset management capabilities [20]. - The company has established a comprehensive asset management platform, including public REITs, enhancing asset liquidity and operational efficiency [24]. Capital Management - China Resources Land has developed a complete asset management ecosystem, facilitating a virtuous cycle of capital through its "investment, financing, construction, management, and exit" model [26]. - The company emphasizes investor relations management, enhancing trust and reducing financing costs through transparent communication and innovative capital market tools [27]. Future Outlook - The company's dual focus on stable operational real estate and growing capital management positions it well for future value growth, providing a platform for investors to benefit from China's consumption upgrade and asset value enhancement [29]. - The transformation of China Resources Land serves as a benchmark for the industry, offering valuable insights for other companies to accelerate their own transformation and sustainable development [29].