Core Viewpoint - The company, Cheung Kong Holdings, reported an increase in revenue but a decrease in profit for the first half of 2025, attributed to significant markdowns and promotional discounts in a weak market environment [2][4]. Financial Performance - The company recorded a revenue of approximately HKD 25.386 billion, a year-on-year increase of 15.3% [2]. - Shareholder net profit was approximately HKD 6.302 billion, a decrease of 26.2% compared to the previous year [3]. - Before property revaluation, net profit was approximately HKD 6.805 billion, reflecting a slight increase of 1.6% [3]. Property Sales - Property sales revenue reached approximately HKD 7.366 billion, a significant increase of 58.92% from HKD 4.635 billion in the same period last year [3]. - However, overall property sales revenue decreased by 2.91% to approximately HKD 1.768 billion, with Hong Kong property sales dropping by 92.91% to about HKD 74 million [4]. - The mainland market showed strong growth, with property sales revenue of approximately HKD 1.469 billion, a year-on-year increase of 106.9% [4]. Discount Strategies - The company implemented various discount promotions to stimulate sales in a sluggish market, leading to lower revenue per sale [4]. - A notable promotional campaign in the Greater Bay Area was launched, highlighting that property prices are significantly lower than in Hong Kong [5]. Land Reserves - The company's land reserves have been decreasing, with approximately 67 million square feet available for development, including 6 million square feet in Hong Kong and 58 million square feet in mainland China [6]. - The company plans to continue a cautious strategy in land acquisition, focusing on quality land for future development [7]. Future Outlook - The management indicated that several projects, including those in Singapore and Beijing, are expected to contribute profits in the second half of the year, while some projects may incur losses [7].

Group 1: Company Performance - Longfor Group (01113) reported a revenue of HKD 25.386 billion for the first half of 2025, representing a year-on-year increase of 15.3% [1] - Shareholders' profit attributable to the company was HKD 6.302 billion, a decline of 26.7% compared to the previous year [1] - Basic earnings per share were HKD 1.80, with an interim dividend proposed at HKD 0.39 per share [1] Group 2: Property Sales and Rental Income - The group experienced an increase in property sales revenue in the first half of 2025, although related profits decreased [1] - The revenue from leasing operations for the group's properties showed a slight decline compared to the same period in 2024 [1] - The newly completed Changjiang Group Center Phase II, located in the core business district of Central, is actively being promoted for leasing [1] Group 3: Market Conditions and Strategies - The retail and commercial property leasing sector in Hong Kong remained weak during the first half of 2025 [1] - The group's hotel and serviced apartment business saw moderate revenue growth, but related profits slightly decreased due to ongoing cost pressures in the industry [2] - The group plans to optimize its hotel and serviced apartment business mix to enhance revenue from both hotel guests and long-term residents [2]

Core Viewpoint - Li Ka-shing is accelerating the liquidation of real estate assets in mainland China, signaling a significant shift in strategy within the property market [1][3][13] Group 1: Sales Strategy - Li Ka-shing's recent sales include a 50% discount on 400 units across four projects in the Greater Bay Area, indicating a drastic reduction in pricing to attract buyers [1][3] - The projects involved are well-known, including Huizhou Longpo Garden and Dongguan Haiyi Haoting, with significant price cuts from their original listing prices [3][11] - The Huizhou project offers units starting at 400,000 yuan for 51 square meters, translating to a price of less than 8,000 yuan per square meter, a substantial discount from the original price range of 10,400 to 14,000 yuan per square meter [3][11] Group 2: Market Conditions - The Huizhou real estate market is experiencing high inventory pressure, with the Longpo Garden project, which launched in August 2020, still unsold [5][7] - The majority of previous buyers for these properties have been from Hong Kong, indicating a trend of Hong Kong residents purchasing properties in mainland cities due to local market pressures [5][7] - The Dongguan project has faced significant delays, with development taking nearly 28 years, highlighting challenges in the mainland property market [8][11] Group 3: Historical Context - Li Ka-shing's strategy of selling off mainland properties is not new; it began around 2013, with total cashing out exceeding 117 billion HKD [16][17] - The number of real estate projects held by Li Ka-shing in mainland China has drastically decreased from over 50 in 2021 to just 18 currently [17][18] - As of March 2025, the estimated value of Li Ka-shing's assets in mainland China is around 300 billion HKD, representing only 25% of his total global assets [18][19]