Financial Data and Key Metrics Changes - Shui On Land reported a profit attributable to shareholders of RMB 180 million for the year, with total revenue of RMB 8.1 billion and net profit of RMB 810 million [4][20] - The company experienced a decline in revenue and profit primarily due to lower levels of residential completion and handover in 2024 compared to 2023 [21] - The gross profit margin improved to 64%, higher than in 2023, mainly due to a revenue composition more driven by rental income [22] Business Line Data and Key Metrics Changes - Contract sales for 2024 increased by 32%, reaching RMB 55 billion, with residential property sales of RMB 14.55 billion and commercial property sales of RMB 5.2 billion [35] - Total rental income, including joint ventures and associates, increased by 9% year on year, amounting to RMB 3.54 billion [20][22] - The commercial portfolio yielded solid rental growth, with a total rental and related income of RMB 3.5 billion, supported by new projects opened in 2023 [12][53] Market Data and Key Metrics Changes - The high-end residential market in Shanghai continued to perform well, with high-end transactions increasing by 150% year on year [16] - The overall residential market in China is undergoing a structural correction, but signs of recovery are emerging in top-tier cities [40] - The second-hand market in Shanghai saw monthly sales exceeding 20,000 units from October to December 2024, indicating a resurgence in demand [41] Company Strategy and Development Direction - The company will continue to prioritize an asset-light strategy and focus on top-tier cities, particularly Shanghai, to capture the best opportunities [8][42] - The strategy includes leveraging the Lakeview brand and expanding urban retreat communities through partnerships and innovative business models [50] - The company aims to maintain prudent capital management while expanding its portfolio without putting pressure on its financial balance sheet [18][33] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenging operating environment due to economic transitions and geopolitical uncertainties but expressed confidence in maintaining profitability [4][8] - The company noted that supportive measures from the central government are beginning to shore up market confidence, particularly in the high-end residential sector [15][40] - Management remains optimistic about the future, citing strong demand in the luxury market and the successful sales launch of Lakeview 6 as positive indicators [10][16] Other Important Information - The company has fully repaid RMB 45.2 billion in foreign loans and maintained a stable net debt ratio of 52% [13][25] - Sustainability efforts have led to a 51.3% reduction in carbon emissions intensity and recognition in the Climate Leadership Award from CDP [14] - The company is focusing on urban regeneration projects and partnerships to enhance its asset-light strategy [50] Q&A Session Summary Question: What are the company's plans for future residential projects? - The company plans to launch the next phase of Lakeview 6 in late 2025, featuring low-density heritage-inspired villas and townhouses, with construction completion expected in Q2 2027 [46] Question: How is the company addressing the challenges in the office market? - The company is focusing on a refined office leasing strategy and has successfully signed over 230,000 square meters of new leases, targeting high-quality tenants [56]

Financial Data and Key Metrics Changes - The company recorded a profit of RMB 183 million in the first half of 2024, with profit attributable to shareholders at RMB 72 million, reflecting a significant year-on-year decline primarily due to a lack of residential property completions [7][18] - Total revenue was RMB 2 billion, down 68% year-on-year, largely due to lower property sales, which totaled RMB 143 million [14][16] - Rental income increased by 11% year-on-year to RMB 1.75 billion, supported by new property openings [15][18] Business Line Data and Key Metrics Changes - The company did not launch any major new residential projects in the first half, resulting in recognized property sales of RMB 1.69 billion [32] - The commercial portfolio saw a rental income increase of 16% year-on-year, reaching RMB 1.76 billion, driven by strong performance from new projects [44] Market Data and Key Metrics Changes - The Shanghai residential market showed resilience, with primary sales of housing units priced above RMB 10 million increasing by 57% in the first half of 2024 compared to the same period in 2023 [36][39] - Despite challenges in the office market, the occupancy rate for mature office properties remained stable at 91% [46] Company Strategy and Development Direction - The company aims to leverage strengths in urban regeneration and implement a best-in-class product strategy to reinforce its leadership position in Shanghai [37] - A focus on sustainability and innovative solutions is emphasized to attract reputable tenants and maintain occupancy rates [49] Management Comments on Operating Environment and Future Outlook - Management expressed a cautious outlook on the China real estate market, anticipating a slow recovery due to ongoing economic uncertainties and challenges within the sector [11][12] - The company plans to preserve cash and adopt appropriate debt management strategies to ensure sustainability [12][27] Other Important Information - The company has repaid over RMB 40 billion of offshore debt since 2021, reducing reliance on offshore financing from approximately 80% to about 47% [26][29] - No interim dividend was declared for the first half of 2024 [18] Q&A Session Summary Question: What are the company's plans for new residential projects? - The company plans to launch more residential projects in the second half, including Riverview and Lakeview Phase 6, with approximately 240,000 square meters available for sale [33][40] Question: How is the company addressing the challenges in the office market? - The company is focusing on maintaining occupancy rates and attracting large, reputable tenants through innovative service offerings [51][52]