Core Insights - Jin Yi Group Holdings (00565.HK) has signed a ten-year lease agreement for the Longhu property with China Orient Asset Management Co., Ltd. Anhui Branch, totaling RMB 185 million [1] - The Longhu property, located in Zhengzhou, Henan Province, is a shopping center with over 120 tenants and approximately 96.9% of its leasable area occupied by retail stores, restaurants, and entertainment venues [1] Group 1 - The Longhu property will be used for commercial leasing, operation, and management by the lessee [1] - The property offers a wide range of services and products, including KTV, supermarkets, convenience stores, jewelry, beauty, electronics, international fashion brands, fitness, and dining options [1] Group 2 - The original owner of the Longhu property has outstanding debts and has defaulted on repayments, leading to the landlord obtaining ownership through court judgment [2] - A temporary arrangement has been established for the lessee to manage the property from May 10, 2025, to June 30, 2025, with specific rental rates for different floors [2] - The group has successfully developed a high-quality, experienced property management team, leveraging existing management personnel to save on recruitment and training costs [2]

董事获悉，龙湖物业的原业主结欠出租人债务并存在还款违约情况。出租人已通过法院判决获得龙湖物 业的业权及所有权。 锦艺集团控股(00565)发布公告，承租人(本公司的间接非全资附属公司)就租借龙湖物业与出租人中国东 方资产管理订立租赁协议，为期十年。 ...

Core Viewpoint - The company remains optimistic about the resilience of the Chinese real estate market in the medium to long term, particularly in core locations of first and second-tier cities where there is a strong demand for quality housing [1][6]. Debt Management - The company plans to reduce interest-bearing debt by over 30 billion yuan by 2025, with a net reduction of no more than 10 billion yuan annually thereafter, focusing on optimizing debt structure and avoiding extensions or defaults [1][2]. - As of now, the company has repaid approximately 14.5 billion yuan in bond principal and interest this year, with all bonds maturing in 2025 already settled [2]. - The company aims to stabilize its total interest-bearing debt around 100 billion yuan in the future, with significant reductions planned for the coming years [2]. Investment Strategy - The company prioritizes financial safety over new investments, having acquired four quality land parcels in key cities this year, adding over 5 billion yuan in new value [3]. - The company maintains a substantial land reserve of 28.4 million square meters, with over 70% located in first and second-tier cities [3]. Revenue Sources - Operating and service business revenue reached 13.27 billion yuan in the first half of the year, accounting for 22.6% of total revenue, marking a historical high [3]. - The company's core profit has been impacted by declining profits in real estate development due to market adjustments, leading to pressure on gross margins [3][4]. Market Outlook - The company anticipates a gradual decrease in settlement and development volumes over the next 1-2 years, with profits expected to stabilize as inventory is reduced and new project margins improve [4]. - The company acknowledges recent challenges in the real estate market, particularly since April, due to a reduction in policy stimulus and slower-than-expected recovery efforts [5][6].

Core Viewpoint - The company remains optimistic about the resilience of the Chinese real estate market in the medium to long term, particularly in core locations of first and second-tier cities where there is a strong demand for quality housing [1][6]. Debt Management - The company plans to reduce interest-bearing debt by over 30 billion yuan in 2025, with a net reduction of no more than 10 billion yuan annually thereafter, aiming to stabilize total interest-bearing debt around 100 billion yuan [2][4]. - The company has already repaid approximately 14.5 billion yuan in bond principal and interest this year, with all bonds maturing in 2025 fully repaid [2][3]. - The company anticipates repaying 60 billion yuan in debt in 2025, with subsequent repayments of 20 billion yuan in 2026 and 2027, and a gradual decrease thereafter [2][4]. Financial Performance - The company achieved its lowest financing costs and longest average loan terms in history as of June 30, 2025, with bank financing comprising 87% of interest-bearing debt and foreign currency debt reduced to 14% [3]. - Operating and service business revenue reached 13.27 billion yuan in the first half of the year, accounting for 22.6% of total revenue, marking a historical high [4][5]. Market Conditions - The company has observed a gradual increase in the proportion of operating business income over the past two years, although profits from real estate development have declined due to market adjustments [4][5]. - The real estate market has faced downward pressure since April 2023, with the effectiveness of stimulus policies being tested in the third quarter [6]. Strategic Focus - The company emphasizes financial safety and prioritizes debt security and project delivery over new investments, while still seeking quality land acquisitions in key cities [3][5]. - The company plans to focus on 50-60 key cities and maintain a strategy that ensures quality and sustainable growth by exiting low-margin projects [5].