Summary of Conference Call Notes on CR Land and CR Mixc Company Overview - **Companies Involved**: CR Land (1109.HK) and CR Mixc (1209.HK) - **Industry**: Real Estate and Property Management in China Key Points Business Development and Strategy - CR Land has a significant presence in Northern China, with 19% of its contract sales and 23% of its land bank located in this region as of 1H25 [1][3] - CR Mixc's managed malls in Northern China account for 21% of its operations, 31% of registered members, and 18% of non-commercial property management projects [1][3] Property Development (DP) - The DP business has been scaled down to focus on profitability, targeting higher-end residential markets with average project net margins of 9%-15%, compared to a group-level net margin of 6% for 2024 [3][8] - New projects like Hohhot Rui Fu and Taiyuan Rui Fu have achieved strong performance, with Taiyuan Rui Fu reporting a 93% sell-through rate and an anticipated cash net margin of 11%-13% [9][10] Mall Operations (IP) - CR Land and CR Mixc have successfully replicated their coastal success in less developed regions, with rental yields in these areas surpassing low-teens percentages [3][27] - The companies have introduced localized designs and a brand incubation model to enhance mall appeal and consumer engagement [3][30] Property Management (PM) - CR Mixc focuses on non-residential PM, leveraging SOE partnerships and expertise to win tenders for business parks, hospitals, and schools [4][40] - The Beijing region reported a 27% CAGR in managed GFA from 2021-24, indicating robust growth in property management [40] Financial Performance and Valuation - CR Land maintains a Buy rating with a 12-month NAV-based price target of HK$38, while CR Mixc also holds a Buy rating with a price target of HK$40 [4][48] - Key risks include revenue booking and rental profitability falling below expectations, as well as potential delays in mall openings due to macroeconomic pressures [5][49] Market Position and Future Outlook - CR Land is positioned to strengthen its leadership in property development and shopping mall operations during the industry downturn, with expectations of maintaining a top-5 ranking in sales [47] - CR Mixc is recognized for its strong margin sustainability and is expected to accelerate market share gains in the residential segment [48] Additional Insights - The companies are focusing on high-end luxury projects and densely populated urban districts to capitalize on housing upgrade demand [10][30] - Management emphasized the importance of a unified membership program to enhance customer loyalty and drive marketing precision, with ambitious profit growth targets for 2025 [31][30] Conclusion The conference call highlighted CR Land and CR Mixc's strategic focus on profitability, market expansion, and innovative approaches in property development, mall operations, and property management. Both companies are well-positioned to navigate the current market challenges while aiming for sustainable growth and enhanced shareholder value.

Core Insights - Bill Ackman described his investment in General Growth Properties (GGP) as "the best investment" of his career, highlighting the potential of investing in companies facing bankruptcy [1][2] Investment Strategy - Ackman purchased a 25% stake in GGP in late 2008 when its stock price fell from $63 to 34 cents per share, emphasizing that buying stock in a bankrupt company can be a contrarian investment strategy [2] - GGP was the second-largest mall operator in the U.S. with $27 billion in debt, of which $15 billion was due within 18 months, yet Ackman believed in the strength of its underlying assets [2] Financial Performance - Ackman noted that GGP's occupancy rates, rents, and net operating income were all increasing, indicating solid fundamentals for the company [3] - The investment of approximately $60 million by Pershing Square Holdings Ltd. was significant, and Ackman took a board position to assist in the restructuring process [3] Success Stories - A New York City cab driver turned a $50,000 investment in GGP into a $3 million retirement fund, showcasing the transformative potential of Ackman's investment advice [4] Acquisition and Market Impact - The successful turnaround of GGP culminated in its acquisition by Brookfield Property Partners for $9 billion in 2018, marking a key milestone in Ackman's career [5] - Despite a recent decline of 1.58% in Brookfield Property Partners' stock, it has shown favorable price trends over various time frames [5]