Core Viewpoint - The commercial project Binjiang Baolong City in Hangzhou is up for sale, with a total price exceeding 4 billion RMB, while Baolong Real Estate faces significant operational pressures [1] Financial Performance - Baolong Real Estate reported a contract sales amount of approximately 3.723 billion RMB for the first half of 2025, only half of last year's figure [1] - Total revenue for Baolong Real Estate was about 13.251 billion RMB, a decrease of approximately 15.3% compared to the same period in 2024 [1] - The company recorded a loss attributable to shareholders of approximately 2.652 billion RMB [1] Profitability and Operations - The gross profit for Baolong Real Estate slightly increased to about 2.025 billion RMB, up by approximately 0.4% year-on-year [2] - The gross profit margin improved to 15.3%, an increase of 2.4 percentage points from the previous year [2] - The company currently holds approximately 8.5727 million square meters of investment properties, a 3.1% increase from the end of 2024 [2] Asset Management and Development - Baolong Real Estate manages a total of 63 shopping centers and 9 light-asset shopping centers [3] - The company is also looking to sell the Binjiang Baolong City, which includes 151,100 square meters of commercial complex and 78,000 square meters of office space [3] - The company has completed the opening of a new shopping center, Wuyishan Baolong Plaza, which is part of its expansion in Fujian [2] Land Reserves - As of June 30, 2025, Baolong Real Estate has a total land reserve of approximately 13.87 million square meters, with 11.63 million square meters under development [5] - 57% of the land reserves are located in the Yangtze River Delta region, with 65.4% of the land value also concentrated in this area [5] Debt Situation - Baolong Real Estate's total liabilities reached approximately 142.618 billion RMB by the end of 2024, with 26.18 billion RMB due within one year [6] - The company is preparing for a second round of offshore debt restructuring, having appointed China International Capital Corporation as its exclusive financial advisor [6] - As of June 30, 2025, Baolong Real Estate's total borrowings amounted to approximately 56.111 billion RMB, with about 27.598 billion RMB classified as current liabilities [7]

Group 1 - The news reports that Binhai Baolong City is actively seeking buyers for its commercial complex and office building assets, with the commercial complex covering 151,100 m² and priced between 2.8 billion to 3.5 billion yuan, while the office building spans 78,000 m² and is priced at 1.39 billion yuan [3][5] - Binhai Baolong City has been performing well since its opening in late 2016, maintaining nearly full occupancy and generating annual profits exceeding 200 million yuan, which justifies its high asking price [5][3] - The office building's average rental rate is currently 2.4 yuan/m²/day, with a 60% occupancy rate, indicating a significant decline from nearly 3 yuan/m²/day two years ago [5][7] Group 2 - The parent company, Baolong Real Estate, reported a projected sales revenue of 12.8 billion yuan for 2024, reflecting a 53% year-on-year decline, alongside an increased loss exceeding 5 billion yuan [7] - Baolong Real Estate has been selling assets across various locations in recent years, including a previous attempt to auction an office building in Hangzhou, indicating a trend of divestment [7] - Despite ongoing efforts to find buyers, the high valuation of the assets has led to prolonged transaction cycles, with no official sale plans for Binhai Baolong City announced yet [7]