Core Viewpoint - Anhui Construction's stock price has increased by 5.63% on October 24, reaching 5.07 CNY per share, with a trading volume of 188 million CNY and a turnover rate of 2.20%, resulting in a total market capitalization of 8.703 billion CNY. The stock has risen for four consecutive days, with a cumulative increase of 3.23% during this period [1]. Group 1 - Anhui Construction Group Co., Ltd. is located at 459 Huangshan Road, Shushan District, Hefei City, Anhui Province, established on June 15, 1998, and listed on April 15, 2003. The company's main business includes housing construction, infrastructure construction and investment, and real estate development and operation [1]. - The revenue composition of Anhui Construction is as follows: housing construction and installation 41.25%, infrastructure construction and investment 36.53%, other 10.38%, commercial housing sales 8.57%, and other (supplementary) 3.28% [1]. Group 2 - Tianhong Fund has a fund that ranks among the top ten circulating shareholders of Anhui Construction. The Tianhong CSI Dividend Low Volatility 100 ETF Linked A (008114) entered the top ten circulating shareholders in the second quarter, holding 11.9852 million shares, accounting for 0.7% of the circulating shares. The estimated floating profit today is approximately 3.236 million CNY, with a floating profit of 1.7978 million CNY during the four-day increase [2]. - The Tianhong CSI Dividend Low Volatility 100 ETF Linked A (008114) was established on December 10, 2019, with a latest scale of 1.206 billion CNY. Year-to-date return is 5.48%, ranking 3993 out of 4218 in its category; the one-year return is 9.58%, ranking 3163 out of 3875; and since inception, the return is 80.63% [2]. - The fund manager of Tianhong CSI Dividend Low Volatility 100 ETF Linked A (008114) is Liu Xiaoming, who has a cumulative tenure of 7 years and 30 days. The current total asset scale of the fund is 15.782 billion CNY, with the best fund return during his tenure being 65.27% and the worst being -46.54% [2].

Core Viewpoint - China State Construction Engineering Corporation (CSCEC) is strategically investing in real estate despite market challenges, indicating a strong belief in the long-term potential of the sector [1][3]. Group 1: Investment and Land Acquisition - CSCEC's subsidiary, China State Construction Second Engineering Bureau, has invested 7.491 billion yuan in a real estate development project in Beijing's urban sub-center [1][3]. - The project covers approximately 112,800 square meters with a total planned construction area of about 261,900 square meters, including residential and office spaces [3]. - The company aims to enhance its influence and brand recognition in the Beijing real estate market through this investment [3]. Group 2: Financial Performance and Business Segments - Real estate development is CSCEC's third-largest business, generating approximately 300 billion yuan in annual revenue with a gross profit margin of around 17% [1][4]. - From 2021 to 2024, the company's real estate revenue showed fluctuations, with 2023 sales reaching 451.4 billion yuan, a 12.4% increase year-on-year, making it the industry leader [4]. - In 2024, the real estate segment's revenue is projected to account for about 14% of total income, contributing 25.4% to gross profit [1][4]. Group 3: Market Strategy and Future Outlook - CSCEC plans to deepen its investment in core cities and regions, focusing on precise investment strategies and enhancing sales efforts [5][8]. - The company has acquired 75 new land parcels, increasing its land reserves to 77.18 million square meters, with all new acquisitions located in first-tier and strong second-tier cities [5][8]. - The real estate business aims to transition into a leading international property development and operation group, emphasizing residential development and quality commercial projects [8]. Group 4: Risk and Resilience - Despite facing challenges from market adjustments, CSCEC's real estate business has demonstrated resilience, with annual profits consistently exceeding 40 billion yuan from 2020 to 2024 [1][9]. - The company reported a 14.88% decline in net profit for 2024, primarily due to increased credit impairment losses, which reached 13.634 billion yuan [9].

Core Viewpoint - The company received an inquiry letter from the Shanghai Stock Exchange regarding its 2024 annual report, focusing on performance commitments and related party transactions, and has provided detailed responses to the inquiries raised [1][2]. Group 1: Performance Commitments - The company acquired 100% of the shares of Xiangyuan Construction for 195 million yuan, with performance commitments of net profits of 40.68 million yuan, 34.48 million yuan, and 60.53 million yuan, achieving a cumulative completion rate of 113% [1]. - The controlling shareholder, Xiangyuan Holdings, pledged to compensate for any impairment losses incurred during the disposal of 82 properties used to offset construction payments totaling 132 million yuan [1][2]. Group 2: Related Party Revenue - Revenue from related parties during the performance commitment period (2021-2023) showed a decreasing trend, with related sales revenue of 86.81 million yuan in 2021, 66.97 million yuan in 2022, and 46.82 million yuan in 2023, representing 95.07%, 82.57%, and 50.23% of total revenue respectively [2][3]. - The company has actively expanded its external business, resulting in a significant reduction in revenue from related parties [2][3]. Group 3: Accounts Receivable and Bad Debt Provisions - The accounts receivable from related parties at the end of 2023 amounted to 7.08 billion yuan, with a bad debt provision rate of 1.27%, significantly lower than the 6.83% for non-related parties [10][12]. - The company reported that the accounts receivable from the top ten related parties showed normal repayment status, with no significant under-provisioning of bad debts during the performance commitment period [6][9]. Group 4: Asset Disposal and Impairment - As of now, the company has completed the disposal of assets totaling 107.38 million yuan, accounting for 81.31% of the total 132.05 million yuan of assets used for debt offset [6][7]. - There were no impairment losses reported for the properties held for debt offset as of the reporting period [6][8]. Group 5: 2024 Performance and Future Outlook - The company expects to achieve operating revenue of 69.14 million yuan and net profit of 14.57 million yuan in 2024, with a notable decrease in related sales revenue to 21.23 million yuan [7][8]. - The company has successfully reduced the proportion of related transactions in its construction business to 30.71% by actively pursuing external business opportunities [7][8].