Core Viewpoint - The real estate industry is undergoing a deep adjustment period, shifting focus from "scale" to "operation," with an emphasis on quality as a competitive advantage. Companies must adapt to this transformation to thrive in the market [1]. Financial Performance - New City Holdings reported a revenue of 22.1 billion yuan and a net profit of 0.895 billion yuan for the first half of 2025, with total contract sales reaching 10.33 billion yuan and a total cash recovery of 11.884 billion yuan, achieving a cash recovery rate of 115.05% [1]. - The company maintained positive operating cash flow for eight consecutive years, with a cash balance of 9.183 billion yuan and a net debt ratio of 53.40% as of the reporting period [5][6]. Commercial Operations - The commercial operations segment generated a total revenue of 6.944 billion yuan, reflecting a year-on-year growth of 11.78%, highlighting the resilience of the company's nationwide commercial operations [2]. - The total foot traffic at Wu Yue Plaza reached 950 million, with total sales exceeding 51.5 billion yuan, marking a year-on-year increase of 16.0% and 16.5%, respectively [2]. Strategic Initiatives - The company adopted a "five-sided" operational philosophy focusing on quality space, customer satisfaction, craftsmanship, green intelligence, and mutual engagement to enhance customer experience and asset returns [3]. - New City Holdings successfully issued a $300 million senior unsecured bond and a 1 billion yuan medium-term note, demonstrating its ability to access diverse financing channels [6][7]. Social Responsibility - The company has delivered over 16,000 properties across 36 projects, with a total completion area of 2.7765 million square meters, while actively participating in various public welfare activities [9]. - New City Holdings has planted 205,000 trees and contributed to greening efforts over 2.05 million square meters, aligning with its commitment to sustainable development and ESG principles [10]. Market Position - As of the reporting period, the company operated 205 Wu Yue Plaza complexes, with an occupancy rate of 97.81%, solidifying its position as a leader in the commercial real estate sector [4]. - New City Holdings received multiple accolades, including rankings in the top 10 for comprehensive strength and financing capability among China's real estate companies [10].

Core Viewpoint - New City Holdings demonstrates strong resilience amid the ongoing adjustment cycle in the real estate market, leveraging a dual-driven business model of "commercial operations + real estate development" and adhering to a "1+3" strategic layout [1][2] Financial Performance - In the first half of the year, New City Holdings achieved operating revenue of 22.1 billion yuan and a net profit attributable to shareholders of 0.895 billion yuan, with a gross margin of 26.85%, an increase of 5.25 percentage points year-on-year [2] - The company reported a contract sales amount of 10.33 billion yuan and a contract sales area of 1.335 million square meters, with a collection amount of 11.884 billion yuan and a collection rate of 115.05% [2] Commercial Operations - The "Wuyue" brand, launched in 2012, has expanded to 205 urban comprehensive projects, with 174 operational Wuyue plazas across 141 major cities in China [3] - In the first half of the year, Wuyue plazas attracted 950 million visitors, generating total sales exceeding 51.5 billion yuan, a year-on-year increase of 16.5% [3] Debt Management - As of June 30, 2025, the company's financing balance was 52.276 billion yuan, reduced by 1.374 billion yuan since the beginning of the year, indicating ongoing optimization of the debt structure [4] - The company has maintained a low net debt ratio of 53.40% and a positive operating cash flow of 286 million yuan [3][4] Market Position and Strategy - The company has successfully issued 1 billion yuan in medium-term notes at a historical low interest rate of 2.68%, extending the debt maturity to five years, which supports stable operations and reduces financing costs [5] - New City Holdings is actively pursuing multi-level REITs products and has completed the application for holding-type real estate ABS in the first half of 2025 [5] Creditworthiness and ESG Commitment - New City Holdings is one of the few private real estate companies maintaining a "zero default" record, having repaid 1.067 billion yuan in domestic and foreign bonds in the first half of 2025 [6] - The company integrates sustainable development into its operations, achieving a green building coverage rate of 100% for new and ongoing projects, and has received 71 domestic and international green certifications [6]

Investment Rating - The report maintains a "Recommended" rating for the company [1][7]. Core Views - The company reported a revenue of 22.1 billion yuan for the first half of 2025, a year-on-year decrease of 34.8%, with a net profit of 0.89 billion yuan, down 32.1% year-on-year [3][6]. - The company's commercial operations remain stable, with a total of 205 Wuyue Plazas opened or under construction, achieving a rental rate of 97.81% [6][7]. - The financing cost has decreased, with an average financing cost of 5.55% at the end of the period, down 0.37 percentage points from the end of 2024 [6][7]. Financial Performance Summary - Revenue projections for 2025-2027 are 61.943 billion yuan, 44.103 billion yuan, and 32.813 billion yuan, respectively, with year-on-year declines of 30.4%, 28.8%, and 25.6% [5][9]. - Net profit for the same period is projected to be 760 million yuan, 779 million yuan, and 894 million yuan, with year-on-year growth rates of 1.1%, 2.5%, and 14.8% [5][9]. - The gross margin is expected to improve from 19.9% in 2025 to 21.2% in 2027, while the net margin is projected to increase from 1.2% to 2.7% over the same period [5][9]. Operational Highlights - The company has successfully issued 1 billion yuan in medium-term notes at a historical low interest rate of 2.68% [6][7]. - The total sales volume for Wuyue Plaza reached over 51.5 billion yuan, with a year-on-year increase of 16.5% [6][7]. - The company has maintained positive operating cash flow for eight consecutive years, optimizing its financing structure and ensuring full repayment of due debts [6][7].