Core Viewpoint - Jiangsu Jinggong Steel Building Group Co., Ltd. (referred to as "Jinggong Steel") has made a significant move into the real estate sector by acquiring land in Shanghai, indicating its commitment to this strategic transition [2][3]. Group 1: Land Acquisition Details - Jinggong Steel successfully acquired the MHC10402 unit 24A-06A land in Minhang District, Shanghai, for a total price of 546 million yuan, with a floor price of 36,649 yuan per square meter and a premium rate of 11.19% [3]. - The land is designated for residential development, with a minimum decoration standard of 3,000 yuan per square meter and a requirement for at least 200 square meters of elderly care facilities [3][4]. - The company’s land expenditure exceeds its projected net profit for 2024, showcasing its determination to enter the real estate market [2][4]. Group 2: Financial Performance - In 2024, Jinggong Steel reported a revenue of 18.492 billion yuan, a year-on-year increase of 12.03%, while its net profit decreased by 6.69% to 512 million yuan [4]. - For the first half of 2025, the company achieved a revenue of 9.911 billion yuan, reflecting a year-on-year growth of 29.48%, and a net profit of 350 million yuan, up 28.06% [4]. Group 3: Strategic Intent and Market Position - The company aims to leverage the recent relaxation of housing market restrictions in Shanghai to mitigate risks and seize market opportunities, focusing on first-tier cities [2][6]. - Jinggong Steel plans to use the acquired land to promote its PEC prefabricated housing system, which combines steel and concrete for efficient construction [7][8]. - The company has established a core team with extensive real estate development experience to support its new ventures in the property market [6][8]. Group 4: Industry Context and Future Outlook - The real estate market in Shanghai is currently one of the most promising in China, with recent policy changes further stimulating demand [6]. - Jinggong Steel's entry into the residential construction sector is seen as a strategic move to extend its business model and capitalize on the growing demand for high-quality housing [7][8]. - The company’s focus on developing prefabricated housing aligns with national goals for sustainable and efficient construction practices, positioning it favorably in the evolving market landscape [7][8].

Core Viewpoint - The recent land auction in Shanghai saw Jiangsu Jinggong Steel Structure Co., Ltd. (referred to as "Jinggong Steel") successfully acquire a plot in Minhang District, marking its first entry into the Shanghai real estate market, with a total expenditure of 5.46 billion yuan, exceeding its projected net profit for 2024, indicating a strategic shift towards real estate development [1][2][3]. Group 1: Land Acquisition Details - Jinggong Steel won the Minhang Zhuangqiao plot with a total price of 5.46 billion yuan, resulting in a floor price of 36,649 yuan per square meter and a premium rate of 11.19% [2]. - The acquired land is designated for residential development with specific requirements, including a minimum decoration standard of 3,000 yuan per square meter and a 30% proportion of small-sized units [2][3]. - The company aims to develop low-density housing products on this plot, leveraging its expertise in steel structure construction [2][3]. Group 2: Strategic Shift and Market Position - Jinggong Steel's move into real estate is a significant cross-industry attempt, as the company has primarily focused on steel structure engineering and construction since its establishment in 1999 [2][3]. - The company has previously engaged in the construction of affordable housing projects in Shanghai, indicating its experience in the real estate sector [3][4]. - The decision to enter the real estate market aligns with recent policy changes in Shanghai that have relaxed restrictions, enhancing the attractiveness of the local housing market [4][5]. Group 3: Financial Performance and Future Outlook - For 2024, Jinggong Steel reported an expected revenue of 18.49 billion yuan, a year-on-year increase of 12.03%, with a net profit of 5.12 billion yuan, reflecting a decline of 6.69% [3][4]. - In the first half of 2025, the company experienced a revenue increase of 29.48% year-on-year, with a net profit of 3.5 billion yuan, up 28.06% [3][4]. - The company has a healthy cash flow, with year-end cash reserves of 5.201 billion yuan for 2024, positioning it well for its new real estate ventures [4][5]. Group 4: Promotion of PEC Prefabricated Housing System - Jinggong Steel aims to showcase its PEC prefabricated housing system through this project, which combines steel and concrete materials to enhance construction efficiency and quality [5][6]. - The company views the current housing market as a significant opportunity for growth, especially in the context of the government's emphasis on high-quality housing [5][7]. - The project is intended to serve as a demonstration of the company's competitive advantages in green integrated building technology within the residential sector [5][7].