Group 1 - The core point of the article is that Hualian Co., Ltd. announced the results of its 14th board meeting, which included discussions on the risk assessment report related to associated loans and deposits at Hualian Financial Co., Ltd. [1] - For the first half of 2025, Hualian Co., Ltd.'s revenue composition was as follows: 70.18% from leasing and property management, 10.73% from joint venture counter sharing, 8.08% from movie screenings and merchandise sales, 6.35% from other businesses, and 4.66% from product sales [1]

Core Insights - Hualian Co., Ltd. reported a revenue of 1.398 billion yuan for 2024, reflecting a year-on-year growth of 2.39%, but net profit attributable to shareholders decreased by 26.28% to 20.33 million yuan [1] - The company's net profit after deducting non-recurring gains and losses turned negative at -46.18 million yuan, marking a significant decline of 260.51% compared to the previous year [1] Business Performance - Hualian's main business segments include community commercial operation management and cinema operation management, with community commercial operations being the core focus [2] - As of December 31, 2024, Hualian operated 27 shopping centers with a total area of nearly 1.9 million square meters, including 15 in Beijing [2] - The rental and property management segment generated 950 million yuan in revenue, a year-on-year increase of 6.38%, accounting for 68.07% of total revenue [2] Profitability Challenges - The merchandise sales segment saw a significant revenue increase of 76.92% to 81.67 million yuan, but the low gross margin of 8.75% limited its contribution to overall profits [3] - Other segments, including joint venture counters, film screenings, and property services, experienced revenue declines, posing challenges to the company's operations [3] - Operating cash inflow decreased by 1.91% to 1.932 billion yuan, and net cash flow from operating activities fell by 13.26% to 712 million yuan, indicating pressure on the company's core business profitability [3] Strategic Moves - Hualian is actively investing in its DT business to enhance its competitive edge in community commerce, including a 192 million yuan acquisition of a 100% stake in Beijing Hualian Meihua Life Department Store [4] - The DT51 shopping mall differentiates itself from traditional models by utilizing a buying team for international procurement and product development, employing a self-operated, joint venture, and leasing management approach [5] - Despite challenges, the DT business shows potential for growth, with DT51 reporting a 22% year-on-year sales increase in Q1 2024, laying a solid foundation for annual growth [5]