Summary of Conference Call on China Property Market Industry Overview - The conference call focused on the **China Property** market, specifically the performance of major developers in February 2025, as tracked by **CRIC** [1][2]. Key Points Sales Performance - **Contracted sales** of 30 major developers dropped **16% year-on-year (y-y)** in February 2025, following a low base [1]. - The **top 50 and top 100 developers** saw attributable sales growth of **3% and 2% y-y**, respectively, compared to declines of **-4% and -1% in January** [2]. - Year-to-date (YTD) sales decline for the top developers narrowed to **-1% and 0% y-y** in the first two months of 2025, contrasting with **+5% and +2% in Q4 2024** [2]. Divergence in Performance - **State-Owned Enterprises (SOEs)** outperformed others, with notable growth from **Yuexiu (+63%)**, **COLI (+55%)**, **CR Land (+47%)**, and **C&D (+36%)** y-y [3]. - Conversely, some developers like **Zhongliang**, **Zhongnan**, and **Seazen** experienced declines exceeding **50% y-y** [3]. - Semi-SOE developers such as **Gemdale** and **Vanke** also reported weak performance, with declines of **-45% and -27% y-y**, respectively [3]. Future Outlook - Sales for major developers are expected to weaken y-y in the coming months due to reduced saleable resources and a higher base [4]. - The housing policy response is anticipated to remain reactive, with limited demand-side stimulus until housing prices stabilize [4]. - There is a need for faster policy implementation, particularly regarding funding and inventory buybacks, to bolster homebuyer confidence [4]. Investment Recommendations - The industry performance may hinge on sustained sales and home price recovery, with mixed signals observed in the physical market [5]. - The recommendation is to focus on **defensive SOE players** with substantial saleable resources in tier 1 cities, such as **CR Land (1109.HK)**, **Greentown (3900.HK)**, and **Yuexiu (0123.HK)** [5]. Additional Insights - The **fragility of residential sentiment** is highlighted, as reflected in declining secondary listing prices [5]. - The **aggregate sales** for the top developers showed a **-1% y-y** change, with a **-5% month-on-month (m-m)** decline in February 2025 [9]. Conclusion - The China Property market is facing challenges with declining sales and a reactive policy environment. However, SOEs are showing resilience, and strategic investments in top-tier developers may present opportunities amidst the volatility.

Financial Data and Key Metrics Changes - The company recorded a revenue of RMB9.75 billion and a net profit of RMB1.4 billion for 2023, with profit attributable to shareholders amounting to RMB810 million [10][21] - Total rental and related income increased to RMB3.24 billion, representing a growth of 16% year on year [11][47] - The net gearing ratio increased slightly to 52%, while cash and bank deposits totaled RMB8.9 billion [11][27] Business Line Data and Key Metrics Changes - Property sales amounted to RMB5.9 billion, primarily from the Panlong Qiandi project, with total contract sales of RMB11.4 billion [21][33] - Rental income increased by 16% year on year to RMB2.4 billion, driven by successful openings of commercial projects [21][47] - The company maintained a stable management area of 9 million square meters in property management [48] Market Data and Key Metrics Changes - The residential market showed a slow recovery, with a significant drop in residential sales area and record high national housing inventory [14] - In Shanghai, prime retail property vacancy rates and rents remained stable, with a slight 0.2% drop in rental rates year on year [15] - The office market faced challenges with a 27% drop in grade A office rents in Shanghai, leading to higher vacancy rates [16] Company Strategy and Development Direction - The company will continue to adopt a prudent capital management strategy and maintain an asset-light approach, focusing on Tier one cities in the Yangtze River Delta and Greater Bay Area [6][17] - Emphasis on urban regeneration and mixed-use developments to capture unique market opportunities [18][44] - The company aims to strengthen its brand and enhance product quality in high-quality mixed-use communities [45] Management's Comments on Operating Environment and Future Outlook - The management highlighted ongoing economic challenges, including geopolitical tensions, high interest rates, and sluggish market recovery [5][7] - Future market recovery is expected to be slow, with continued consolidation in the property sector [7][14] - The company remains optimistic about the Shanghai market, citing stable demand and opportunities for growth [7][43] Other Important Information - The company successfully issued the largest private green mortgage-backed onshore CMBS in April 2023 [12] - The Board recommended a final dividend of $0.58 per share, with a total full-year dividend of $0.90 per share [13][21] - Significant progress in sustainability efforts, with improved ESG ratings and over 96% of existing assets certified as green or healthy buildings [19] Q&A Session Summary Question: What are the company's views on the current market conditions? - The company noted that the property sector is experiencing a downturn, with divergent performance among cities and regions, but top-tier cities are showing resilience [43][44] Question: How does the company plan to navigate the challenges in the office market? - The company aims to maintain high occupancy rates and focus on acquiring large tenants while enhancing service offerings [52][56] Question: What are the future plans for property development? - The company plans to launch several premium residential projects in Shanghai and continue to explore urban renewal opportunities [36][40][45]

Financial Data and Key Metrics Changes - The Group revenue increased by 46% to RMB 6.4 billion in the first half of 2023 compared to the same period in 2022 [7] - Profit for the period rose by 17% year on year to RMB 913 million, while profit attributable to shareholders increased by 37% year on year to RMB 618 million [7][24] - The net gearing ratio increased slightly to 50% as of June 30, 2023, compared to 45% at the end of 2022 [9][25] Business Line Data and Key Metrics Changes - Property sales in the first half increased by 90% to RMB 4.6 billion, primarily driven by the Panlong Tiendi project in Shanghai [8][19] - Total rental and related income was RMB 1.5 billion, representing a growth of 3% year on year [8] - The recognized property sales for the first half amounted to RMB 34.7 billion when including joint ventures and associates [12][20] Market Data and Key Metrics Changes - The retail portfolio occupancy averaged 91% as of June 30, with rental reversions remaining positive [13] - The office portfolio maintained an average occupancy rate of 88%, with Shanghai achieving an average occupancy of 92% [13][45] - The K-shaped market trend was noted, with solid demand in top-tier cities and quality products remaining high in demand [11][32] Company Strategy and Development Direction - The company aims to maintain prudent but proactive capital management to ensure strong liquidity and explore additional onshore financing channels [15] - Long-term expansion plans focus on Shanghai and other first-tier cities, emphasizing urban regeneration projects [15][39] - The company is well-positioned to capitalize on urban renewal opportunities, particularly in Shanghai, supported by recent government policies [39][40] Management's Comments on Operating Environment and Future Outlook - The management highlighted challenges such as geopolitical tensions, high inflation, and a poor economic outlook affecting consumer spending [4][5] - Despite these challenges, the company has seen an increase in profit and stable occupancy rates, indicating resilience [6][11] - The management expressed cautious optimism regarding urban regeneration policies that could provide new opportunities [5][39] Other Important Information - The company successfully issued the largest private green mortgage-backed onshore CMBS in April, valued at RMB 4.4 billion [9][29] - The interim dividend for 2023 was recommended at $0.32 per share, reflecting the group's financial performance [10] Q&A Session Summary Question: What are the company's strategies in the current market? - The company will continue to adopt flexible leasing strategies and enhance service quality to improve occupancy rates [50] - There is a focus on strengthening competitive advantages in community products and urban retreat offerings [50] Question: How is the company addressing the challenges in the property market? - The company is leveraging its strong brand and track record in urban regeneration to navigate the current market correction [39] - The management noted the importance of maintaining a balanced portfolio and proactive asset management [45]