Core Viewpoint - The credit rating agency maintains the credit rating of China Merchants Shekou Industrial Zone Holdings Co., Ltd. at AAA with a stable outlook, reflecting the company's strong support from its parent company and its robust position in the real estate industry [4][24]. Financial Overview - Total assets for the company were reported at 886.47 billion yuan in 2022, projected to increase to 908.51 billion yuan in 2023, and decrease to 860.31 billion yuan in 2024 [6]. - The company's total liabilities were 602.03 billion yuan in 2022, increasing to 611.82 billion yuan in 2023, and projected to decrease to 573.56 billion yuan in 2024 [6]. - Net profit for 2022 was 9.10 billion yuan, with a slight increase to 9.11 billion yuan in 2023, but a significant drop to 4.19 billion yuan in 2024 [6]. - EBITDA was reported at 21.35 billion yuan in 2022, decreasing to 20.04 billion yuan in 2023, and further down to 14.05 billion yuan in 2024 [6]. Business Performance - The company is recognized as one of the leading national real estate enterprises, with extensive development experience and sufficient land reserves, which provide a solid foundation for future growth [4][9]. - The company’s development business remains the largest revenue contributor, although sales volume is expected to decline by 25.31% in 2024 [11][21]. - The company has a strong brand competitive advantage and a well-established management team, which enhances its operational efficiency [11][9]. Risk Factors - The real estate industry is facing significant challenges due to changes in supply and demand dynamics, leading to increased operational challenges for the company [5][9]. - The company has experienced a decline in gross profit margin and has recognized impairment losses, which have weakened its profitability [4][14]. External Support - The company benefits from strong backing by its parent company, China Merchants Group, which provides substantial support in project acquisition and funding arrangements [8][23]. - The parent company holds 58.47% of the shares, ensuring continued support and stability for the company [10][23]. Market Outlook - The overall economic environment in China is expected to improve, with structural highlights in supply and demand, although external shocks may pose risks [8][9]. - The real estate market is anticipated to face downward pressure in sales and investment in 2025, but supportive policies may help stabilize the industry [9][21].