Core Viewpoint - The real estate industry is undergoing a significant transformation, with many companies facing increased profit pressure, while a few, like Longfor and China Resources, are successfully navigating this shift by focusing on operational business models and achieving positive profitability [2][9]. Industry Trends - The market is transitioning from a phase of large-scale expansion to one focused on improving existing assets, as indicated by recent government meetings [2]. - Companies are exploring new operational models to adapt to this systemic change, emphasizing the need for a shift from incremental to stock market strategies [2][8]. Company Strategies - Real estate firms are concentrating on three main transformation paths: enhancing stable income through property holdings, developing light asset businesses, and expanding into new business areas beyond traditional real estate development [2]. - Longfor's operational business revenue reached a historical high of 13.27 billion yuan, while China Resources achieved a core net profit of 6.02 billion yuan, contributing over 60% of its profits [5][6]. Operational Models - Longfor's operational business includes commercial investment, asset management, property management, and smart construction, with a focus on maintaining high occupancy rates and rental income growth [5]. - China Resources is adopting a large asset management model as a core strategy during the industry's transition, achieving regular income of 20.56 billion yuan [6]. Market Adaptation - The industry is encouraged to shift from investment-driven growth to service-driven revenue, focusing on operational and service enhancements [8]. - Companies like Poly Developments and China Merchants Shekou are actively pursuing new growth lines in commercial and property management [8]. Financial Stability - Moody's report highlights that increasing regular income enhances developers' profitability stability and financial resilience, with Longfor and China Resources showing higher operational income and profitability compared to peers [9].