Core Viewpoint - Longfor Group is nearing the end of its debt repayment peak after over three years of debt reduction efforts, with a focus on improving cash flow and restructuring its debt profile [1][4]. Financial Performance - In the first half of 2025, Longfor Group reported revenue of 58.75 billion yuan, a year-on-year increase of 25.4%, with a profit attributable to shareholders of 3.22 billion yuan and a core after-tax profit margin of 3% [1]. - Real estate development revenue reached 45.48 billion yuan, up 34.7% year-on-year, while operational and service business revenues totaled 13.2 billion yuan, accounting for 22.6% of total revenue [1][2]. Debt Reduction Strategy - The company has reduced over 40 billion yuan in interest-bearing debt over the past three years and aims to cut an additional 20 billion yuan by the end of this year, totaling over 60 billion yuan in debt reduction [1][5]. - Longfor's net debt ratio stands at 51.2%, with short-term debts of 25.61 billion yuan and cash on hand of 44.67 billion yuan [4]. Market Outlook - Longfor's CEO emphasized the importance of stabilizing the real estate market, noting that demand for quality housing in core urban areas remains strong despite recent market adjustments [2]. - The company has acquired four new land parcels in major cities, increasing its land reserves to 28.4 million square meters, with a 75% equity stake [2]. Operational Business Growth - The operational business, including long-term rental apartments and commercial assets, generated 7 billion yuan in rental income, reflecting a 2.5% year-on-year growth, with a gross margin of 77.7% [3]. - The property service segment reported revenues of 6.26 billion yuan, with a gross margin of 30%, managing approximately 400 million square meters of property [3].

Group 1 - The core viewpoint of the news is that Longfor Group Holdings Limited reported a stable performance in its operational business for the first half of 2025, with a focus on commercial investment and asset management [1][2] - For the first half of 2025, the company's rental income from operational business reached 7.01 billion yuan, representing a year-on-year growth of 2.5% [1] - The commercial investment segment saw a rental income increase of 4.9% to 5.5 billion yuan, with a high occupancy rate of 97% [1] Group 2 - Longfor Group's commercial operations achieved a 17% year-on-year growth in overall revenue and an 11% increase in daily foot traffic [1] - The company opened its first Tianjie in Nanning ahead of schedule, achieving an occupancy rate of over 95% and an opening rate of 92% [1] - As of June 30, 2025, Longfor has 89 operational shopping malls across 24 cities, with a total operational area of 9.43 million square meters [1] Group 3 - The asset management segment, which includes long-term rental apartments, industrial offices, serviced apartments, vibrant blocks, maternal and child hospitals, and health care, generated revenue of 1.51 billion yuan in the first half of 2025 [2] - The long-term rental apartment brand, Guan Yu, has opened 127,000 units with an overall occupancy rate of 95.6% and rental income of 1.24 billion yuan, showcasing industry-leading profitability [2] - The company plans to open approximately 10 new shopping malls in the second half of 2025 and will continue to enhance commercial spaces and collaborate with merchants for mutual benefits [2]