9 December 2025 | 7:07AM CST Equity Research CHINA PROPERTY WEEKLY WRAP Week 49 Wrap - Market activities moderated, while price cuts decelerated Key highlights for the week: On the policy front, the State council maintained a supportive policy stance, emphasizing 1) advancement of urban renewal initiatives, which shall be integrated with property market stabilization efforts, while high-quality housing ("好房子") construction and high-quality development of the real estate sector shall be prompted; 2) addressi ...

Summary of Kansai Electric Power Company Investor Day Company Overview - **Company**: Kansai Electric Power Company (KEPCO) - **Date**: December 08, 2025 - **Focus**: Discussion on subsidiaries Optage and Kanden Realty and Development, including financial performance, future outlook, and competitive positioning Key Points Financial Performance - **Free Cash Flow**: - Optage's free cash flow was positive until last year, with expected investments increasing from JPY 40 billion, which may lead to negative cash flow in the short term but positive in 5-10 years [6][10] - **Return on Assets (ROA)**: - Optage achieved a significant ROA of 15%, which may be challenging to maintain in the future due to new growth investments [4][7] - Kanden Realty and Development's ROA is expected to reach 5% by 2025, with current figures lower than that [11][14] Competitive Positioning - **Industry Comparison**: - Optage's ROA is reportedly higher than peers such as NTT East, NTT West, and J:COM, although specific competitor comparisons were not disclosed [9][10] - Kanden Realty and Development's ROA is compared to other real estate firms, with figures like Mitsui Fudosan at 4.2% and Mitsubishi Estate at 4% [13] Strategic Initiatives - **Investment Plans**: - KEPCO plans to invest JPY 1.1 trillion over five years, with JPY 900 billion allocated for capital recycling [30][31] - **Real Estate Development**: - Focus on long-term capital gain through residential housing, with plans to develop properties in the Tokyo Metropolitan Area and Yumeshima [22][33] - Collaboration with local companies for large-scale developments, including a new subway station in Nakanoshima [24] Nuclear Power Insights - **Capacity Utilization**: - Current capacity utilization is around 90%, with aspirations to match U.S. standards, but regulatory and community acceptance remain challenges [25][26] - **Future Developments**: - Plans for new nuclear plants are cautious, with a focus on thorough community engagement and safety assessments [41][43] Data Center Demand - **Market Trends**: - High demand for data centers, particularly for GPU-related services, although uncertainty exists regarding the sustainability of this demand in Japan [18][20] - **Business Model**: - Optage's data center strategy includes connectivity services, targeting telecom carriers and cloud service providers [48][54] Miscellaneous - **Real Estate Strategy**: - Kanden Realty and Development aims to increase capital gain from 50% to 60% of revenue, with a focus on residential housing due to rising architecture costs [47][55] - **M&A Considerations**: - No immediate plans for M&A in the real estate sector, but partnerships with strong local firms are being considered [39][40] Conclusion Kansai Electric Power Company is strategically positioning itself for future growth through significant investments in its subsidiaries, focusing on maintaining competitive ROA, and navigating the complexities of nuclear power and real estate development. The company is also adapting to market demands in the data center space while ensuring community engagement and regulatory compliance in its nuclear initiatives.

12月8日，龙湖摘得深圳市光明区A627-0268宗地，进一步拓展在粤港澳大湾区版图。 南方+记者 周中雨 该地块位于光明核心区域公明中心区，距离6号线红花山站约300米，距离13号线新庄站约900米。其所属板块整体居住氛围较好，地块周边教育资源丰富， 涵盖公明中学、公明中英文学校、光明高级中学、光明区第二中学、深圳理工大学明珠校区等各级学校。地块周边还有红花山体育中心、光明区少年儿童图 书馆、公明广场、红花山公园、楼村湿地公园等众多市政休闲配套。大仟里购物中心、光明人民医院西院区等商业、医疗配套亦离地块较近。 据了解，自2014年正式进入粤港澳大湾区以来，龙湖在大湾区已经成功开发包括深圳御湖境、广州天奕、佛山江与城、珠海天澜等36个项目。 据悉，龙湖此次摘得的地块总用地面积20523.78㎡，建筑面积63623㎡，容积率3.1。 ...

Kanden Investor Day ー OPTAGE Inc. December 8, 2025 Today's Agenda 1 1. Business Overview ・・・・ P. 2 2. Initiatives in Growth Areas ・・・・ P. 10 • Overview of OPTAGE • ICT Market Structure and Our Strategic Focus Areas • Overview by Segment • Performance, KPIs, and CAPEX • IT Infrastructure Landscape in Japan • Initiatives in Growth Areas • Synergies with the Kansai Electric Power Group • Where We Are Heading Toward 2035 Overview of OPTAGE ○ We provide fiber-optic internet, mobile services, and connectivity sol ...

Core Viewpoint - The recent land auction in Shenzhen demonstrates intense competition for residential land, with significant price increases and high premium rates, indicating strong confidence from leading real estate companies in core urban assets despite market adjustments [1][4]. Group 1: Land Auction Details - On December 8, two residential plots were successfully auctioned in Shenzhen, with a total revenue of 39.52 billion yuan, including a competitive bid of 31.86 billion yuan for the Shenzhen Bay Super Headquarters Base plot [1][2]. - The Shenzhen Bay Super Headquarters Base T207-0068 plot saw a total of 101 rounds of bidding, resulting in a floor price of approximately 77,360 yuan/m² and a premium rate of 42.49%, setting a new high for premium rates in the area [1][3]. - The total area of the T207-0068 plot is about 11,833.61 m², with a total construction area of approximately 41,184 m², including residential and commercial spaces [2]. Group 2: Market Trends and Company Strategies - China Overseas Land & Investment has acquired three residential plots in Shenzhen this year, totaling 8.62 billion yuan, with an average premium rate of 51.87%, reinforcing its leading position in the high-end market [4][6]. - The competitive bidding for the Shenzhen Bay plot reflects the resilience of the luxury housing market, as top-tier assets continue to attract strong interest from major developers [4][8]. - The overall land supply in Shenzhen has been optimized, with 11 residential plots successfully auctioned this year, generating over 28 billion yuan in total revenue [6][8].

Core Insights - Knowledge Economic City (KEC) has formed a strategic joint venture with Archipelago International to create a hospitality management company in Madinah, Saudi Arabia, with both parties holding equal shares [1][2] - The new company will focus on developing a Saudi hotel brand and managing the construction of a hotel with approximately 2,500 keys, marking a significant development in the Saudi hospitality sector [1][2] Company Overview - Archipelago International is the largest privately owned hotel management group in Southeast Asia, managing over 45,000 rooms across more than 200 hotels in various regions including Southeast Asia, Latin America, the Middle East, the Caribbean, and Oceania [4] - KEC is regulated by the Economic Cities and Special Zones Authority and aims to drive urban and economic changes in Madinah through strategic partnerships [4] Industry Impact - The partnership aims to enhance the hospitality industry in Saudi Arabia, contributing to the diversification of the sector and increasing employment opportunities for national talent [3] - Future plans include franchise and management models to support broader growth across the kingdom [3]

地块周边还有红花山体育中心、光明区少年儿童图书馆、公明广场、红花山公园、楼村湿地公园等众多 市政休闲配套。大仟里购物中心、光明人民医院西院区等商业区、医疗配套亦离地块较近。 据了解，自2014年正式进入粤港澳大湾区以来，龙湖在大湾区已经开发包括深圳御湖境、广州天奕、佛 山江与城、珠海天澜等36个项目。 龙湖方面表示，深圳作为粤港澳大湾区重要城市，拥有深厚的发展潜力。龙湖始终聚焦深耕一、二线高 能级城市，将以更好的产品和更优质的服务，满足人民群众对美好居住生活的新期待。 采写：南都·湾财社记者王艳玲 龙湖持续深耕深圳市场，进一步拓展在大湾区的开发版图。 12月8日，龙湖以7.66亿元摘得深圳市光明区A627-0268宗地。该宗地块总用地面积为20523.78㎡，建筑 面积为63623㎡，容积率为3.1。 根据规划，未来需配置600㎡的社区儿童游戏场地和800㎡的社区体育活动场地，并配建不少于1030㎡的 24小时公共开放空间。 地块位于光明核心区域公明中心区，距离6号线红花山站约300米，距离13号线新庄站约900米。其所属 板块整体居住氛围较好，地块周边教育资源丰富，涵盖公明中学、公明中英文学校、光明高级中学 ...

Summary of Key Points from the Conference Call Industry Overview - The focus is on the **China Real Estate** sector, particularly high-end property demand and market dynamics. Core Insights and Arguments 1. **High-End Demand Validation**: The launch of Shenzhen One Bay Park by CRL and COLI achieved RMB13 billion in sales, indicating a sell-through rate of approximately 70%, which supports the anticipated strong demand for high-end properties [2][8] 2. **Sales Decline in Luxury Projects**: Despite the positive launch, developers experienced an average sales decline of 39% year-on-year in November, highlighting ongoing market challenges [2][9] 3. **Upcoming High-End Projects**: Several high-end projects are set to launch in December, which are crucial for shaping market expectations for sales and earnings in the upcoming year [2][10] 4. **C-REITs Development**: The CSRC's plans to establish commercial REITs and include more property types in C-REITs signal a potential growth area for the China property market, particularly benefiting developers like Seazen [3][8] 5. **Land Market Weakness**: The value of land for sale in tier-1 and key tier-2 cities is down 42% and 61% year-on-year, respectively, indicating a lack of prime land availability and weak market sentiment [4][11][12] Investment Recommendations 1. **Stock Picks**: The preferred stocks include CRL, C&D, and Seazen, all rated as Buy. These companies are expected to benefit from proactive land replenishment and a clear margin recovery trend [5][8] 2. **Risk Appetite**: Distressed names may attract investors with a higher risk tolerance, while the overall sentiment remains cautious due to market conditions [5][8] Additional Important Insights - **Policy Expectations**: There are renewed expectations for innovative policies such as mortgage subsidies and tax rebates, which could positively impact market sentiment [2][8] - **Sales Performance Data**: Detailed sales performance data for various developers in November shows significant declines, with some companies like CR Land showing a 51% month-on-month increase but still a decline of 11% year-on-year [9][10] - **Valuation Metrics**: The report includes valuation metrics for various property developers, indicating a significant discount to NAV for many, reflecting market challenges [20][22] This summary encapsulates the key points discussed in the conference call, providing insights into the current state and future outlook of the China real estate market.

Summary of Key Points from the Conference Call Industry Overview: China Property Market - **Sales Performance**: The contract sales of the top 100 developers in China declined by 37% year-over-year (YoY) in November 2025, an improvement from a 41% decline in October 2025. The decline is attributed to a lower base effect from the policy impact in September 2024 [2][24][26]. - **Sequential Decline**: On a month-over-month (MoM) basis, contract sales fell by 12%, which is worse than the historical average decline of 4% MoM from 2020 to 2024 [2][7]. - **Two-Year Comparison**: Compared to November 2023, the sales dropped by 43%, worsening from a 38% decline in October 2025 [2][24]. - **Factors Influencing Sales**: The weak sales in November are attributed to: 1. Accelerated decline in secondary property prices in tier-1 cities over the past 2-3 months. 2. A significant reduction in new project launches, down 60% YoY across 12 cities [2][3]. Market Dynamics - **Secondary Listings**: Secondary listings across 50 cities increased by 10.1% YoY as of the end of November, up from 9.3% at the end of October. In tier-1 cities, the growth remained stable at 2.1% YoY [3][10]. - **Homeowner Behavior**: The rise in secondary listings is driven by: 1. Increased mortgage and operating loan default risks prompting banks to sell properties. 2. Homeowners selling properties ahead of loan maturities [3][10]. - **Real-Time Transactions**: Recent data indicates that secondary transaction units remain lower than levels seen in 2024 and 2023, reflecting subdued market sentiment [3][14]. Developer Performance - **Market Share**: The market share of state-owned enterprises (SOE) and private-owned enterprises (POE) developers stands at 53% and 32%, respectively [4][27]. - **Sales Performance by Developer Type**: Semi-SOE developers experienced a 40% YoY decline in contract sales, underperforming both SOE and POE developers, which saw declines of 36% YoY [4][27]. - **Top Performers**: Among SOE developers, Poly Property reported a 12% growth in contract sales, while C&D International and Yuexiu saw declines of 52% and 48% YoY, respectively [4][27]. Financial Metrics - **Top 100 Developers' Sales**: The combined gross contract sales value for the top 100 developers dropped by 37% YoY in November, compared to a 41% decline in October [6][24]. - **Individual Developer Performance**: Notable sales figures for November 2025 include: - CR Land: RMB 23.0 billion, -11% YoY - COLI: RMB 22.2 billion, -26% YoY - Poly Developments: RMB 18.1 billion, -25% YoY - Vanke: RMB 9.4 billion, -55% YoY [6][24]. Inventory Levels - **High Inventory**: As of October 2025, inventory levels in tier-1 cities remain high at 22 months, with the average inventory in 80 major cities reaching a historical high of 31.2 months [17][20]. Price Trends - **Secondary Housing Prices**: The average selling price (ASP) of secondary housing in six major cities has declined by 34% from its peak [21][22]. Risks and Opportunities - **Downside Risks**: Key risks include government policies restricting demand and mortgage lending, tight financing for developers, and lower-than-expected residential growth [35]. - **Upside Opportunities**: Potential for policy loosening that could boost residential property sales and investments, as well as large-scale asset disposals by developers to ease liquidity pressures [35].

本期关注 地重点文旅综合体项目，位于德化县观音岐隧道南侧，总规划用地面积约2500亩。远洋建管将依托其在文旅大盘领域的专业经验，系统提炼项目文化价值与旅居内涵，提升 平方米。两项目区位优越，交通便利，配套完善，均定位为高品质民生社区标杆项目。 项目拥有区域第一梯队学区、双地铁、大型商业会员店、大型休闲娱乐配套，为区域顶级资源配置。项目计容建筑面积92361㎡。 旺镇HD00-0302-0175、6008地块F3其他类多功能用地、B23研发设计用地项目合同额约6.41亿元；集团土木部中标的京秦高速公路（机场二高速至六环路）施工第5标段项 企业 金建管与西安经开金控签署战略协议 北京城建集团与中国二冶集团签约 项目 远洋建管签约省重点项目泉州观音岐文旅城 光大安石持续携手金融机构签约浙江代建业务 金地华中地区公司成功中标武汉市东西湖区两山学府高端住宅项目 新城建管代建南阳高新吾悦广场开幕 企业动态 资源、技术、市场、运营管理等方面的优势，建立长期稳定的战略合作关系，拓展经开区内产业项目开发、西安市内特殊资产处置等多领域开展全方位、多层次的深入合 协同等方式实现多维度深度联动，释放协同优势。 项目获取 区合作框架下 ...