Core Viewpoint - Shenzhen Holdings Limited reported a significant increase in sales amid a challenging real estate market, but its profitability continues to decline, leading to a paradoxical situation [1][2]. Sales Performance - Total contract sales for the first three quarters reached 9.838 billion yuan, a year-on-year increase of 24% [1]. - The sales volume for the third quarter alone was 3.025 billion yuan, with a sales area of 128,700 square meters [1]. - During the "Golden Week" holiday, several projects achieved top sales in their respective areas, with the Shanghai Jiading project achieving an 80% sales rate on the first day of opening [1]. Pricing and Profitability - Despite a 36.3% year-on-year increase in sales area to 428,200 square meters, the average selling price dropped from 25,300 yuan per square meter to 23,000 yuan, a decline of 9% [1]. - The gross profit margin for the real estate development business in the first half of 2025 was 13.8%, down 18 percentage points from the previous year, significantly exceeding the industry average decline [1]. Financial Overview - Total revenue for the first three quarters was 24.445 billion yuan, with an operating profit of 161 million yuan and a net loss of 848 million yuan [2]. - The company reported a 175% year-on-year increase in revenue for the first half of 2025, amounting to 10.35 billion HKD, but faced a gross profit margin decline of approximately 12 percentage points [2]. Asset Management and Inventory - The company has seen positive changes in its asset management, with several key projects successfully delivered, leading to a reduction in inventory by approximately 15.1 billion yuan to 81.904 billion yuan [3]. - Contract liabilities also decreased by about 11.5 billion yuan, indicating improved asset turnover efficiency [3]. Debt Management - As of the end of the third quarter of 2025, the total liabilities of the parent company were 143.987 billion yuan, a year-on-year decrease of 6.26%, with current liabilities down by 24% [3]. Financing and Business Expansion - Recently, the company secured a three-year loan of 4 billion HKD [4]. - The company is expanding its urban comprehensive operation business, taking on projects such as the Shenzhen Library North Pavilion and several hospitals in Anhui and Henan [4]. Commercial Real Estate Development - The community commercial project "Shen Ye Shi Ji" has been initiated, with an expected opening in 2026, and the TOD complex at Chegongmiao is in substantial development [4]. - The company is also focusing on technology industry investments, with a 25% year-on-year increase in electronic shipments and a 160% increase in agricultural product sales driven by the pig supply chain [4]. Strategic Shift - Shenzhen Holdings is moving towards a strategic focus on real estate asset management and comprehensive operation services, as evidenced by the planned sale of 70% of its stake in Jinghua Electronics [4]. - However, market reactions have been negative, as seen by the significant drop in stock price following the announcement of the acquisition [4]. Challenges Ahead - The company faces challenges in the commercial real estate sector, where its revenue contribution remains relatively small compared to real estate development [5]. - The overall path for Shenzhen Holdings is expected to be difficult during the industry's deep adjustment period, with a focus on restoring profitability and managing debt risks being crucial for navigating through the cycle [5].

Group 1: Real Estate Development - In Q3 2025, the company reported an unaudited contract sales amount of approximately 3.025 billion RMB, with a contract sales area of about 128,700 square meters [1] - For the first three quarters of 2025, the total unaudited contract sales reached approximately 9.838 billion RMB, representing a 24.0% increase year-on-year, with a total sales area of about 428,200 square meters, up 36.3% year-on-year [1] - The average selling price per square meter was approximately 22,973 RMB, with key projects successfully delivered in Q3, including Shenzhen Shenye Yunhai Bay and Chengdu Shenye Dongyuefu [1] Group 2: Property Upgrade and Innovation - The company is enhancing its commercial competitiveness and asset attractiveness through continuous property upgrades and business model innovation [2] - A cinema area asset upgrade is underway at Shenye Shangcheng Commercial, with plans to launch a new concept garden "The Gardens" that integrates global cuisine and high-end cinema functions by early next year [2] Group 3: Urban Comprehensive Operation - The company received multiple accolades for its operational strength, including recognition as a leading brand in property service quality in China for 2025 [3] - Shenye Shangcheng has successfully attracted 13 Fortune 500 companies after its office upgrade and has been designated as a "Foreign Business Service Point" [3] - The company is expanding its operational projects, including the successful bid for the Huafu Village project, which will be the first project under the "Shenye Shiji" community commercial product line [3] Group 4: Technology Industry Investment Services - The company's subsidiary, Jinghua, has made significant progress in expanding its client base and advancing cooperation projects, with a notable improvement in agricultural operating efficiency [4] - The sales of agricultural products have increased by over 160% year-on-year, and the Dapeng Four Seasons Coastal Garden has received 60,000 visitors, being recognized as a "Child-Friendly Practice Site" in Shenzhen [4] - The company aims to accelerate the construction of a new development model, focusing on urban asset management, comprehensive operations, and technology industry investment services to ensure high-quality development [4]

Sales Performance - In Q3 2025, the company reported an unaudited contract sales amount of approximately 3.025 billion RMB, with a contract sales area of about 128,700 square meters [1] - For the first three quarters of 2025, the total unaudited contract sales reached approximately 9.838 billion RMB, representing a 24.0% increase year-on-year, with a total sales area of about 428,200 square meters, up 36.3% year-on-year [1] - The average selling price per square meter was approximately 22,973 RMB [1] Property Upgrade and Innovation - The company is enhancing its commercial competitiveness and asset attractiveness through continuous property upgrades and business model innovation [2] - A cinema area asset upgrade is underway at Deep Industry Shangcheng Commercial, with plans to launch a new concept garden "The Gardens" that integrates global cuisine and high-end cinema functions by early next year [2] Urban Comprehensive Operation - The company received recognition for its operational strength, being awarded multiple honors including "2025 Leading Brand in Property Service Quality" and "2025 Excellent Brand in Industrial Property Service" [3] - Deep Industry Shangcheng has successfully attracted 13 Fortune 500 companies after upgrading its office space and has been designated as a "Foreign Business Service Point" [3] - The company is expanding its operational projects, with the first community commercial product line project "Deep Industry Shiji" set to launch in Huafu Village [3] Technology Industry Investment Services - The subsidiary Jinghua Company has made significant progress in expanding its client base and advancing cooperation projects, with a notable improvement in production management levels [4] - The agricultural business has seen a substantial increase in sales, with agricultural product sales growing over 160% year-on-year [4] - The company is accelerating the construction of a new development model, focusing on urban asset management, comprehensive operations, and technology industry investment services to ensure high-quality development [4]

Core Insights - Shenzhen Holdings (00604.HK) reported an unaudited contract sales amount of approximately 3.025 billion RMB for Q3 2025, with a contract sales area of about 128,700 square meters [1] - The company maintained strong sales during the "Eleven" holiday period, with projects like Shenzhen Shenye Yunzhu, Shanshui Dongcheng, and Huizhou Banshan Mingyuan achieving regional sales champions [1] - For the first three quarters of 2025, the company's unaudited total contract sales reached approximately 9.838 billion RMB, representing a 24.0% increase year-on-year, with a total contract sales area of about 428,200 square meters, up 36.3% year-on-year, and an average selling price of approximately 22,973 RMB per square meter [1] - Key projects such as Shenzhen Shenye Yunhai Bay, Shenye Yiyuefu, and Chengdu Shenye Dongyuefu were successfully delivered in Q3 [1]

Group 1: Shenzhen Holdings Business Progress - Shenzhen Holdings announced the completion of the demolition phase for the second phase of the Chegongmiao First Renewal Unit project, with the land contract signed in June 2025, entering the substantive development stage [1] - The project covers an area of 28,000 square meters with a total construction area of 488,000 square meters, and a planned gross floor area of 360,000 square meters, aiming to create a TOD urban complex that integrates office, industry, and commerce [1] - In Q2 2025, the company reported an unaudited contract sales amount of approximately 3.68 billion RMB, a 17.5% increase from Q1, with a contract sales area of about 192,200 square meters [1] Group 2: Sales Performance - For the first half of 2025, the company reported an unaudited total contract sales amount of approximately 6.814 billion RMB, a 10.3% increase year-on-year, with a total contract sales area of about 299,500 square meters, up 25.5% from the previous year [1] - The average selling price per square meter was approximately 22,751 RMB [1] Group 3: Deep Industry Developments - Deep Industry's second quarter foot traffic increased by 15% year-on-year, with over 320,000 visitors on the first day of the Qingming Festival, setting a new single-day foot traffic record for commercial entities in the Futian District [2] - The company received accolades such as the "Top 50 Shopping Centers with Outstanding Comprehensive Strength" from Guandian Network and the "Gold Award for Most Popular Mall in the Greater Bay Area" from Hong Kong travel website Gotrip [2] - The introduction of the first duty-free shop in Shenzhen to Deep Industry is set to open in Q3, enhancing the diversity of the commercial ecosystem [2]