Core Viewpoint - Longfor Group (00960) is navigating the real estate downturn by adopting a differentiated "long-termism" approach, focusing on high-quality development and steady growth across multiple business channels [1] Group 1: Business Performance - In the first half of 2025, Longfor Group's operating revenue was approximately 14.15 billion yuan (including tax), with operational business revenue around 7.5 billion yuan and service business revenue about 6.65 billion yuan, all showing varying levels of growth [1] - Longfor Group achieved a net profit of 10.401 billion yuan for shareholders in 2024, distinguishing itself as one of the few companies to report profitability amid significant losses in the industry [1] - The contribution of operational business to total revenue increased to 21% in 2024, becoming a major source of income and profit for Longfor [1] Group 2: Operational Strategy - Longfor's operational and service business segments are seen as the core of future growth, with management aiming to establish absolute competitive advantages in four key areas [3] - The commercial segment of Longfor's operational business has introduced a new tiered product system, showcasing differentiated project advantages through "city-level, regional-level, and community-level" classifications [3] Group 3: Marketing and Consumer Engagement - Longfor Commercial has successfully launched several high-traffic commercial cases, such as the Nanning Qingxiu Tianjie, which opened in May 2025 and attracted over 680,000 visitors in its first three days, generating 27.9 million yuan in revenue [5] - The "Tianjie Huansheng Festival" event during the Dragon Boat Festival saw cumulative revenue of 1.96 billion yuan over four days, with daily revenue and foot traffic increasing by 49.7% and 24.9% year-on-year, respectively [5] Group 4: Future Expansion Plans - Longfor plans to open around 10 new projects in major first- and second-tier cities such as Hangzhou, Shanghai, and Wuhan in the second half of 2025, while also continuing upgrades to existing projects [6] - As of the first half of 2025, Longfor Commercial maintained a high occupancy rate of 96.6%, with revenue and daily foot traffic both increasing by over 20% and 9% year-on-year, respectively [8] Group 5: Financial Health - Longfor Group has successfully repaid over 9 billion yuan in debts this year, demonstrating a commitment to maintaining healthy finances to support its business operations [8] - The company has achieved a balanced structure across its three main business segments—development, operation, and service—contributing to its resilience and stable profit margins [8]

Core Insights - In 2025, Guangxi's commercial market is set to experience significant growth with the simultaneous opening of two major projects: Longhu Nanning Qingxiu Tianjie and Nanning Wuxiang Hangyang City Shopping Center on May 30, 2025 [1][6] - A total of eight commercial projects are planned to open in Guangxi in 2025, expected to bring a commercial increment of 709,000 square meters, nearly double the 2024 increment of 357,500 square meters [1][10] Project Summaries - **Longhu Nanning Qingxiu Tianjie**: Scheduled to open on May 30, 2025, with a commercial area of 120,000 square meters, featuring 8 South China first stores and 20 Nanning first stores [17][18] - **Nanning Wuxiang Hangyang City Shopping Center**: Also opening on May 30, 2025, with a commercial area of 100,000 square meters, it will be the largest shopping center in Nanning Wuxiang New District [21][22] - **Nanning NFS**: Planned to open on December 19, 2025, with a commercial area of 110,000 square meters, it aims to be Nanning's first light luxury cultural tourism complex [24][25] - **Nanning Poly Wuyouli Cultural Street**: Set to open on June 21, 2025, with a commercial area of 12,000 square meters, it will focus on cultural healing themes [27][28] - **Wuzhou Qiloucheng**: Scheduled to open on October 1, 2025, with a commercial area of 140,000 square meters, it will be a historical cultural street integrating various cultural experiences [29][31] Market Trends - The commercial increment in Guangxi is expected to surpass the historical low seen in 2024, with 2025's scale projected to be 1.83 times that of 2023, reaching 709,000 square meters [8][10] - Nanning continues to play a crucial role in Guangxi's commercial landscape, contributing significantly to the overall commercial increment, with five of the eight projects located in the city [12][15] - The focus on cultural tourism is a key trend, with several projects emphasizing cultural and experiential elements to attract visitors [7][28]