Core Viewpoint - The credit rating of Shenzhen Zhenye (Group) Co., Ltd. is maintained at AA with a stable outlook, while the specific bond "23 Zhenye 02" is rated AAA, reflecting the company's solid financial support and external backing from the Shenzhen Municipal Government [3][29]. Financial Overview - As of 2025, the total assets of the company are reported at 263.99 billion, with total liabilities at 179.30 billion, resulting in a net asset value of 84.69 billion [8]. - The company has experienced significant losses, with a net profit of -17.51 billion in 2024, following a loss of -9.02 billion in 2023 [21]. - The net debt ratio has improved to 50.04% as of 2022, down from 61.97% in 2023, indicating a reduction in leverage [10][21]. Operational Performance - The company has not acquired new projects since 2024, leading to a high proportion of existing projects in lower-tier cities, which face significant sales challenges [15][16]. - The total land reserve area is reported at 2,129.58 million square meters, with a focus on projects in Huizhou, Heyuan, and Nanning, which are experiencing low market demand [16][25]. Industry Context - The real estate industry is facing downward pressure, with sales and investment expected to remain low in 2024, although supportive policies are anticipated to improve the market environment [14]. - The company benefits from its status as a key real estate development platform under the Shenzhen State-owned Assets Supervision and Administration Commission, which provides it with certain external support [25][26]. Debt and Financing - The bond "23 Zhenye 02" has a total issuance of 7.5 billion, fully backed by Shenzhen High-tech Investment Guarantee Co., Ltd., ensuring strong repayment support [26][28]. - The company maintains a favorable financing environment, with a comprehensive financing cost reduced to 3.76% as of March 2025, and has successfully rolled over mid-term notes at lower interest rates [16][27]. Risk Factors - The company faces challenges due to the real estate market's supply-demand imbalance, particularly in projects located in low-demand areas, which may impact future sales performance [4][7]. - The profitability has deteriorated, with significant impairment provisions recorded for inventory, indicating potential future risks related to asset values [20][21].