Core Viewpoint - The real estate industry is transitioning from an era focused on scale, land reserves, and leverage to one that prioritizes operating cash flow, future profitability, and the growth potential of new businesses [2][3]. Group 1: Industry Trends - The trend of significant losses continues in the real estate sector, indicating a challenging bottoming process [3]. - The performance of Longfor Group's mid-year report showcases a different model, achieving positive profitability and over 2 billion yuan in net operating cash flow [3][4]. - The shift from traditional developers to service-oriented firms is highlighted, emphasizing the importance of technology and efficiency in enhancing property value [3][8]. Group 2: Longfor's Business Model - Longfor's transformation to a capability-driven model integrates over 30 years of development experience and digital technology, positioning itself as a light-asset service brand [4][8]. - The new business model, Longfor Longzhizao, offers a comprehensive "one-stop urban construction solution" covering the entire lifecycle of projects [4][6]. - The revenue from Longfor Longzhizao reached 700 million yuan in the first half of 2025, with a year-on-year growth rate of 65% [6]. Group 3: Client and Project Success - Longfor Longzhizao secured 62 new construction projects in the first half of 2025, maintaining its position in the industry's top tier [6]. - The client base has shifted, with 63.3% of new projects coming from central state-owned enterprises and government entities, reflecting trust in Longfor's brand and delivery capabilities [6][9]. - Successful case studies, such as the Chengdu Xijingtai project, demonstrate Longfor's ability to resolve complex issues and deliver value to stakeholders [7][9]. Group 4: Technological Empowerment - The integration of AI and digital technologies is central to Longfor Longzhizao's operations, enhancing efficiency and precision in project execution [8][9]. - Technologies like BIM and VR have significantly reduced design time and improved project outcomes, showcasing the potential for value reconstruction in the real estate sector [8][9]. - Longfor's approach illustrates that real estate companies can extend their capabilities beyond traditional development boundaries into broader urban service areas [9][11]. Group 5: Future Outlook - Longfor's mid-year report indicates that as inventory decreases, the impact of real estate development on the group will lessen, while operational and service businesses will drive profit growth [11]. - The transition to a new era in real estate emphasizes the need for product strength, service capability, technological advancement, and comprehensive operational skills [11].