Core Viewpoint - The real estate industry is undergoing significant challenges, yet Longfor remains one of the few companies that can be described as "safe" amidst the turmoil, having successfully managed its debt repayment and maintained its core assets [1][2]. Debt Management - Longfor has proactively repaid all its debts due by 2025, totaling 22 billion yuan, which is a rare move in the current environment of debt restructuring in the real estate sector [1]. - The company has reduced its interest-bearing debt by nearly 60 billion yuan over the past three and a half years, with a current interest-bearing debt of 152.81 billion yuan and a net debt ratio of 52.2% [5][6]. - Longfor's management has emphasized the importance of recognizing risks, which led to early actions in debt reduction and restructuring [4][5]. Business Operations - In 2025, Longfor achieved total revenue of 97.31 billion yuan, with its operational and service business contributing a record high of 26.77 billion yuan [1]. - The company has maintained a strong focus on its core assets, avoiding the sale or dilution of its operational and service business during the debt reduction process [9][10]. - Longfor's operational and service business is expected to continue growing, with projections indicating that by 2028, this segment will surpass development revenue [2][12]. Financial Performance - Longfor's operational and service business has a core profit of 7.92 billion yuan, with a gross margin exceeding 50% and a net margin of 30% [11]. - The company has successfully maintained a positive cash flow from its operations, with operating cash flow reaching 5.8 billion yuan in 2025 [6][9]. Future Outlook - Longfor aims to complete its transition to a new business model by 2028, with a projected reduction of total interest-bearing debt to around 120 billion yuan, 90% of which will be operational property loans [13]. - The company is focused on enhancing its competitive edge across various business segments, including development and asset management, while ensuring financial stability [14][15].