Core Viewpoint - Tibet City Investment (西藏城投) has announced an increase in the sales agency fee from 0.5% to 1.5% for a real estate project managed by its major shareholder's subsidiary, aiming to boost sales amid a challenging real estate market [1][4][11]. Financial Performance - In 2024, Tibet City Investment reported a net loss of 309 million yuan, with real estate sales dropping to 900 million yuan [1][8]. - For Q1 2025, the company achieved a revenue of 535 million yuan but incurred a net loss of 34.39 million yuan [1][8]. - The company's net profit has significantly declined from 117 million yuan in 2022 to 13 million yuan in 2024, marking a 596.55% decrease in net profit [5][8]. Real Estate Market Context - The increase in agency fees is a response to the ongoing downturn in the real estate market, characterized by rising sales pressure and competition [4][11]. - The project "Hongnan Mountain 240 Block" is positioned as a high-end residential community, with a total investment of approximately 11.5 billion yuan and an average price of 125,000 yuan per square meter [4][5]. Lithium Industry Transition - Tibet City Investment holds significant lithium resources, with verified reserves of 3.9 million tons of lithium carbonate [12][16]. - Recent developments include obtaining mining permits and initiating construction of a lithium hydroxide production line, with plans to achieve a production capacity of 130,000 tons over the next 4-5 years [16][12]. - Despite these advancements, the company faces challenges in converting lithium resources into substantial revenue due to the cyclical downturn in the lithium industry [16][12].