Core Viewpoint - The recent aggressive price cuts by China Overseas Land & Investment (COLI) in Nanjing have sparked significant market attention and controversy, particularly among existing homeowners who feel financially harmed by the drastic reductions in property values [1][9]. Group 1: Price Cuts and Sales Performance - COLI has implemented a "60% off" pricing strategy for several projects, with prices dropping by approximately 40% from their initial launch prices [1]. - For example, the average selling price for the Jiangyue project has decreased from 36,000 CNY/m² to 23,000 CNY/m², leading to a rapid sales increase, with over 100 units sold in just one week [1][9]. - The overall sales revenue for COLI is projected to decline by 8.58% in 2024, with a reported sales drop of 18.8% in the first four months of the year [9]. Group 2: Impact on Existing Homeowners - Existing homeowners are protesting against the price cuts, feeling that their property values have plummeted, with some reporting losses equivalent to a down payment [3][7]. - The drastic price reductions have led to a "price defense" movement among existing owners, who are actively trying to prevent new buyers from viewing properties [3][7]. Group 3: Market Dynamics and Brand Impact - The aggressive pricing strategy has raised concerns about COLI's brand reputation, as it has led to regulatory scrutiny and potential suspension of property registrations [11]. - The price cuts have also pressured surrounding second-hand property prices, creating a cycle where new homes undercut existing listings [13]. - The overall market in Nanjing is experiencing a prolonged de-stocking period of approximately 20 months, which is longer than in other cities in the Yangtze River Delta [13].

Core Viewpoint - China Overseas Land & Investment (COLI) has significantly reduced prices in multiple projects in Nanjing, leading to widespread dissatisfaction among homeowners and impacting the local real estate market [1][4][5]. Group 1: Price Reductions - The project "Guanjiangyue" in Nanjing saw a price drop from 34,620 yuan per square meter to 23,000 yuan per square meter, a decrease of 33.6% [1]. - "Guanwenlan," another project, dropped from nearly 37,000 yuan per square meter to 24,000 yuan per square meter, with lower floor units even reaching 22,000 yuan per square meter [4]. - The "Heshan" project in Jiangning district reduced its price from approximately 30,000 yuan per square meter to 17,000 yuan per square meter, nearly 60% off the original price [4]. Group 2: Financial Implications - The cost breakdown for "Guanjiangyue" indicates that selling each unit results in a loss of 400,000 to 600,000 yuan, as the total cost exceeds 27,000 yuan per square meter [1]. - The overall financial performance of COLI has deteriorated, with a net profit of 15.63 billion yuan in 2024, significantly lower than its competitors [19]. - The profit margin for COLI has dropped to 17.7%, marking a ten-year low, while the average profit margin for the industry has also declined [19][21]. Group 3: Market Dynamics - The aggressive price cuts by COLI have led to a perception of the company as a "price butcher," negatively affecting the sales of surrounding second-hand properties [5][4]. - The real estate market is experiencing a significant slowdown, with new residential construction area down 22.3% year-on-year in the first four months of the year [22]. - The overall sales of new residential properties in April 2025 were approximately 623.7 billion yuan, reflecting a 40.8% decline from March [22].