Core Insights - The demand structure in Shanghai's rental market is undergoing significant changes, with an increasing preference for larger apartment types, particularly two and three-bedroom units, indicating a rise in family-oriented rental needs [1][3][5] - Shanghai leads the national rental market, with a diverse demand landscape driven by policy guidance and market needs, resulting in a substantial scale of approximately 410,000 units in centralized apartments by July 2025 [2][12] - The rental market is transitioning from a phase of scale expansion to structural optimization, reflecting a more mature market with stable demand from families and high-end service apartments [12] Demand Trends - The market share of two-bedroom and larger units in centralized apartments reached 44.6% by June 2025, a 7.1 percentage point increase from the previous year [3] - The proportion of two-bedroom units specifically increased by 5.1 percentage points year-on-year, highlighting a shift towards larger living spaces [3][4] - Over 55% of new centralized apartment projects opened in 2024 featured two and three-bedroom configurations, with a significant portion focusing on two-bedroom units as the primary offering [5] Rental Preferences - The trend of "renting instead of buying" is becoming more common among families, as larger, well-equipped units better meet their needs in a market where real estate is viewed primarily for living rather than investment [8] - Younger renters are shifting their priorities from cost-effectiveness to comfort, preferring whole-unit rentals over shared accommodations, indicating a change in living standards [8] Rental Pricing Dynamics - Overall rental prices in Shanghai are under pressure, with the average rent per square meter for personal housing at 101.83 CNY, reflecting a 1.77% month-on-month decline and the largest year-on-year drop among 55 cities [9] - Despite the overall decline, high-end service apartments are experiencing stable demand and rising rental prices, particularly from high-net-worth individuals seeking premium living conditions [9] - The demand for high-end features, such as smart home technology and concierge services, is increasing among affluent renters, who also expect high-quality surrounding amenities [9]

Financial Data and Key Metrics Changes - The core rental business saw a decline of 3%, which was anticipated at the beginning of the year, with hopes for improvement in the second half [7][8] - Overall revenue contribution from property sales and hotel business accounted for 33% of total revenue, down 6% [8] - The Mainland China rental revenue decreased by 1% in renminbi terms, but due to RMB depreciation, it was down by 2% in Hong Kong dollars [9][10] - Hong Kong rental revenue decreased by 4%, with the core rental business representing 94% of total operations [10][11] - Net gearing stood at 33.5%, with a slight increase of 0.1% compared to December [35] Business Line Data and Key Metrics Changes - Rental revenue in Mainland China improved from a decline of 4% in 2024 to a decline of 1% in 2025 [11] - Retail business remained flat compared to a decline of 3% in 2024, with seven out of ten projects showing positive growth [12] - The hotel business was reclassified under property, contributing to the overall revenue decline [10] - New letting increased by 36%, indicating strong demand despite market challenges [17] - The occupancy rate improved from 83% to 88% in certain properties, reflecting effective management strategies [19] Market Data and Key Metrics Changes - The retail landscape in Mainland China has evolved, with athleisure brands performing better than luxury brands [16] - The company is focusing on enhancing customer experience through events and tenant management to adapt to changing consumer behavior [16] - The luxury retail segment saw a decline of 12%, while other segments showed resilience [90] Company Strategy and Development Direction - The company aims to leverage its strengths and adapt to market changes, focusing on customer-centric strategies and enhancing tenant offerings [16][18] - Plans to launch a national program to improve operational efficiency and attract foot traffic in second-tier cities [16] - The company is exploring hybrid models for expansion, particularly in cities where it already has a presence [61] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about the stability and potential uplift in the market, with expectations for mild growth in the second half of the year [6][62] - The sentiment in the property sector has stabilized, contributing to improved occupancy and traffic [66] - Management acknowledged the challenges posed by competition and the need for differentiation in the retail space [76] Other Important Information - The company is committed to sustainability, with 80% of projects in Mainland China powered by renewable energy [39] - The company is focusing on maintaining a strong balance sheet and managing finance costs effectively [36][38] Q&A Session Summary Question: Future expansion using high room property models - Management indicated that expansion will only occur when there is demand and synergy with existing projects [60] Question: Tenant sales trend in the next twelve months - Management anticipates a potential improvement from negative sales to mild growth in the second half of the year [62] Question: Reasons for improvement in the second quarter - Factors included improved occupancy, traffic, and external market conditions stabilizing [66] Question: Dividend guidance for the full year - Management intends to maintain a flat dividend, with discussions ongoing regarding future cash dividends [83][84] Question: Potential issuance of convertible bonds - Management is cautious about dilutive instruments and is monitoring the market but does not plan to issue convertible bonds at this time [72][73] Question: Transition progress in specific projects - Management reported improvements in occupancy and traffic, with a focus on enhancing the tenant mix and customer experience [74][75]

Financial Data and Key Metrics Changes - The core rental business revenue decreased by 3%, which was anticipated at the beginning of the year, with hopes for improvement in the second half [8][10] - Overall revenue contribution from property sales and hotel business accounted for 33% of total revenue, down by 6% [9][10] - The net gearing of Hang Lung Properties stood at 33.5%, reflecting a slight increase of 0.1% compared to December [35] Business Line Data and Key Metrics Changes - Rental revenue in Mainland China decreased by 1% in the first half of 2025, an improvement from a 4% decline in 2024 [12][10] - Retail business remained flat compared to a 3% decline in 2024, with seven out of ten projects showing positive revenue growth [13][14] - The office segment continued to face challenges, with a decline of 4% in rental revenue [28][30] Market Data and Key Metrics Changes - Hong Kong's rental revenue saw a decline of 4%, but residential and service apartment rentals improved by 11% [32][30] - The overall sales in Hong Kong decreased by 2%, which is better than the market average decline of 4% [33][32] - The luxury retail segment reported a decline of 12%, while non-luxury sales increased by 8% [97] Company Strategy and Development Direction - The company is focusing on enhancing its retail offerings and tenant management to adapt to the evolving retail landscape [17][19] - A national program is being launched to improve operational efficiency and attract customers in second-tier cities [17] - The company is exploring hybrid models for expansion, particularly in cities where it already has a presence [65] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about the stability and potential uplift in the market, particularly in the second half of the year [6][10] - The sentiment in the property sector has stabilized, which may lead to mild growth in tenant sales [66][71] - The company is committed to maintaining its dividend policy, with intentions to return to a cash dividend structure after the Westlake 66 Mall opens [88][89] Other Important Information - The company has increased its focus on renewable energy, with 80% of its projects in Mainland China now powered by renewable sources [41] - The company is actively working on several projects, including the Westlake 66 Mall, which is expected to enhance its market position [44][49] Q&A Session Summary Question: Future expansion using asset-light models - Management indicated that future expansions will depend on demand and synergy with existing projects, emphasizing a holistic approach [64][65] Question: Tenant sales trends in the next twelve months - Management anticipates a potential improvement in tenant sales, moving from a negative trend to mild growth in the second half of the year [66][71] Question: Reasons for improvement in the second quarter - The improvement was attributed to increased occupancy and traffic, along with external factors such as stock market stabilization [70][71] Question: Dividend policy for the full year - Management intends to maintain the current dividend structure, with a focus on not cutting dividends unless absolutely necessary [76][88] Question: Thoughts on issuing convertible bonds - The CFO expressed caution regarding dilutive instruments, noting that the company is not considering issuing convertible bonds at this time [78][79] Question: Progress on transitioning properties - Management reported improvements in occupancy rates and is focused on enhancing the tenant mix to attract customers [79][82]

2025 Interim Results Presentation July 2025 Contents 47 Appendix Please scan or click on the QR codes to view 2025 Interim Results Announcement 2025 Interim Results Investor Presentation 2Hang Lung Properties Limited 3 2025 Interim Results Highlights 20 Development Highlights 27 ESG Highlights 38 Mainland China Portfolio 42 Hong Kong Portfolio 48 HLP – Financial Highlights and Position 51 HLG – Financial Highlights and Position 2025 Interim Results Highlights Hang Lung Properties (101.HK) | | | | Operating ...

Core Viewpoint - Minsheng International (00938) reported a revenue of HKD 138 million for the fiscal year ending March 31, 2024, reflecting a year-on-year growth of 8.95%, while the net loss attributable to shareholders increased to HKD 592 million from HKD 552 million in the previous year [2] Financial Performance - The company achieved a revenue of HKD 138 million, marking an 8.95% increase year-on-year [2] - The net loss attributable to shareholders was HKD 592 million, compared to a loss of HKD 552 million in the previous year [2] - The net cash flow from operating activities was -HKD 5.85 million, an improvement from -HKD 45.88 million in the previous year [2] - Basic earnings per share were -HKD 0.92 [2] Valuation Metrics - As of July 29, the price-to-book ratio (TTM) was approximately -0.25 times, and the price-to-sales ratio (TTM) was about 2.72 times [2] Business Segments - The company operates through four main segments: 1. Chongqing Property Division, focusing on residential apartments, serviced apartments, and shopping malls [10] 2. Property Management Services Division, offering property management, housekeeping, and landscaping services [10] 3. Renovation and Decoration Division, involved in the decoration of hotels, malls, offices, schools, and hospitals [10] 4. Japanese Hotel Operations Division, managing resort hotels in Hokkaido, Japan [10] Cash Flow Analysis - The net cash flow from financing activities was HKD 147.23 million, a decrease of HKD 296.01 million year-on-year [21] - The net cash flow from investing activities was -HKD 4.067 million, compared to -HKD 3.364 million in the previous year [21] Asset and Liability Changes - Investment properties decreased by 12.49% compared to the previous period, with a 1.42 percentage point drop in total asset proportion [30] - Contract assets increased by 113.56%, contributing to a 0.47 percentage point rise in total asset proportion [30] - Accounts payable and notes payable surged by 663.04%, increasing their proportion of total assets by 48.5 percentage points [33] - Short-term borrowings rose by 7.5%, with a 12.11 percentage point increase in total asset proportion [33] Liquidity Ratios - The current ratio was 0.13, and the quick ratio was 0.03 [36]

Core Insights - The trend of youth population gathering in first-tier cities is intensifying, leading to increased demand for rental housing, which poses challenges for urban governance and services [1][12] - The rental market in major cities like Shanghai is evolving, with a significant shift towards long-term rentals and a growing preference for quality living conditions among young renters [2][3][4] Youth Rental Market Overview - The rental population in first-tier cities is approaching 40 million, accounting for nearly 50% of the total resident population, with youth driving this trend [1] - By the end of 2024, the rental population of youth in Shanghai is projected to reach 76,000, marking a 68.89% increase from 2022 [2] Rental Preferences and Trends - Youth in Shanghai show a clear preference for long-term rentals, with nearly 90% opting for this choice, reflecting a balance between stability and flexibility [3] - Over 70% of young renters prefer shared accommodations, although the demand for whole rentals is gradually increasing [3] Rental Pricing Dynamics - Average monthly rent for whole rentals in Shanghai decreased to 5,000-5,500 RMB in 2024, while shared rental prices remained stable at 2,000-2,500 RMB [2] - Youth exhibit high sensitivity to rental prices, leading to a "price gradient effect" where lower-cost areas attract budget-conscious renters [6] Impact of Online Platforms - Online platforms are becoming the primary channel for youth renting, with 63.05% using professional housing rental platforms and 30.29% utilizing lifestyle service platforms [4] - The shift towards online platforms indicates a change in consumer habits, merging social interaction with transactional activities [4] Regional Rental Preferences - Youth rental choices are influenced by employment opportunities, transportation convenience, and living costs, with specific areas like Zhangjiang and Minhang being particularly popular [5][8][11] - The top five preferred rental areas for recent graduates include Pudong New District, Minhang District, Jing'an District, Qingpu District, and Yangpu District, driven by job availability and transportation access [8][10] Graduate Rental Behavior - The proportion of graduates choosing to rent in the city where they studied is increasing, with over 78% of graduates in major cities opting to stay [7] - Shared accommodations are the primary choice for 82.60% of recent graduates, highlighting a focus on cost-sharing and social interaction [7] Conclusion - The evolving rental trends among youth reflect a deeper interaction between urban development and the needs of young residents, emphasizing the importance of policy optimization and market innovation to meet these demands [12]

Core Insights - The report highlights the growth in the scale of China's housing rental enterprises, with the top 30 companies reaching a total of 1.332 million opened units by May 2025, an increase of approximately 4,000 units from April 2025 [5][6] - The management scale of these enterprises also saw an increase, reaching 1.923 million units, up by 26,000 units from the previous month [7][8] Group 1: Opening Scale Rankings - The top three companies by opened units are Vanke Boyu with 196,600 units, Longfor Guan Yu with 123,000 units, and Magic Cube Living Service Group with 84,154 units [1][2] - The total opened units for the top 30 companies is 1.332 million, with a breakdown showing 11 housing rental enterprises, 9 local state-owned enterprises, 5 entrepreneurial companies, 3 hotel companies, 1 intermediary, and 1 financial company [5][6] Group 2: Management Scale Rankings - Vanke Boyu leads in management scale with 275,400 units, followed by Longfor Guan Yu with 164,000 units and Meiyu with 133,060 units [3][4] - The total management scale for the top 30 companies is 1.923 million units, with 11 housing rental enterprises, 9 local state-owned enterprises, 6 entrepreneurial companies, 3 hotel companies, and 1 intermediary [7][8] Group 3: Business Dynamics - In May, various projects for guaranteed rental housing and talent apartments were launched, with local state-owned enterprises being the main suppliers [9][10] - Notable projects include the talent apartment in Hainan Wenchang International Aerospace City and the West Group's rental housing project in Shanghai [9][10] Group 4: Business Expansion - Companies are actively acquiring projects to expand their business footprint, such as New Huangpu's acquisition of an office project in Beijing for 215 million yuan to be used for guaranteed housing [11][13] - Hangzhou Anju Group and Hefei Anju Group completed their first acquisitions of existing residential properties for guaranteed rental housing [11][13] Group 5: Financing Trends - The listing of Huatai Suzhou Hengtai Rental Housing REIT on the Shanghai Stock Exchange was well-received, with a significant increase in share price on the first day [14][17] - The establishment of a domestic mother fund by CapitaLand Investment aims to enhance its asset management scale in China, focusing on stable cash flow and long-term value assets [14][17] Group 6: Policy Developments - The State Administration for Market Regulation released a model rental contract to clarify key terms for urban housing rentals [18][19] - Local governments are enhancing housing rental management regulations, with Guangdong and Tianjin proposing policies to support the acquisition of existing properties for guaranteed housing [19][20]

Financial Data and Key Metrics Changes - Rental income decreased by approximately 6% and operating profit fell by 9% due to a decline in variable rent, despite fixed rents increasing by nearly 6% [12][13][14] - The company reported a revenue from property sales of $150 million, which was impacted by provisions made for inventory markdowns [15][36] - The net gearing ratio stood at around 33.4%, with expectations for it to remain similar in 2025 if no new projects are undertaken [40][41] Business Line Data and Key Metrics Changes - The luxury sector performed well, with subluxury malls outperforming the market, while overall retail sales dropped by 14% [24][28] - Fixed rents increased, indicating a successful strategy to convert sales trends into fixed income [61] - The hotel segment was reported separately for the first time, reflecting the company's growing portfolio [16] Market Data and Key Metrics Changes - Mainland rental revenue dropped by 4% in RMB terms and 5% in HKD terms, primarily due to RMB depreciation [18][20] - The company noted a significant drop in luxury spending, with a 30% decrease in sales in Hainan, while the average ticket size dropped by 14% to 16% [66][69] - The overall sentiment in the market remains cautious, with expectations for a mild increase in 2025 [69][87] Company Strategy and Development Direction - The company aims to consolidate brands and increase occupancy rates across its malls, focusing on enhancing customer experience [27][76] - Strategic initiatives include the use of low carbon emissions fuel for new projects and a commitment to renewable energy for properties [42][43] - The company is actively managing its financials through prudent provisions and adjustments to dividends to maintain flexibility [45][84] Management's Comments on Operating Environment and Future Outlook - Management acknowledged a challenging year but highlighted strong occupancy rates and the resilience of the subluxury sector [4][7] - There is a cautious outlook for 2025, with management emphasizing the need for strategic adjustments in response to market conditions [9][69] - The management expressed confidence in the company's ability to navigate the current environment while seeking growth opportunities [45][80] Other Important Information - The company has signed a RMB10 billion syndicated loan with 13 banks, reflecting strong support from financial institutions [39] - A strategic reset of dividends was implemented, with a 33% cut announced, aimed at improving financial stability [17][84] - The company is focusing on enhancing its tenant mix and customer experience to drive traffic and sales [92][95] Q&A Session Summary Question: What is the rental reversion trend in the second half of last year and expectations for 2025? - Management indicated that fixed rents in Mainland increased by 6%, but overall sales trends still impacted revenue negatively [61][62] Question: How is January performing in terms of traffic and tenant sales? - January showed improvements in both foot traffic and sales compared to the previous year, but management remains cautious about drawing conclusions [64][65] Question: What strategies are in place to cope with new supply in Shanghai? - The company plans to consolidate tenant quality and enhance customer experience to remain competitive against new developments [75] Question: Can you elaborate on the dividend reset and its underlying assumptions? - The reset is seen as a strategic move to provide financial flexibility, with the intention to adjust based on market conditions [77][84] Question: What are the expectations for financing costs in 2025? - Financing costs are expected to be slightly lower than the previous year, based on current market conditions and forecasts [82]