$LONGFOR GROUP(00960.HK)$ As far as housing enterprises are concerned, “if you have food in your hands, you can not panic.” “Food” refers to both capital and land. In terms of land reserves, in the first half of this year, Longhu Group won 20 high-quality plots in first-tier and second-tier cities such as Shenzhen, Shanghai, Guangzhou, Chengdu, Hangzhou, and Suzhou, with a total construction area of 2.57 million square meters and an equity construction area of 1.84 million square meters. By the end of June 2023, Longhu Group's total land reserves reached 54.89 million square meters, with an equity area of 38.16 million square meters. 87% of the value of goods was concentrated in high-energy cities and value regions, which also provided sufficient preparations for future development.
As can be seen, in the first half of 2023, on the premise of maintaining the steady development of the main real estate development business, Longhu's operation and service businesses also fully blossomed. The three major businesses developed collaboratively, not only contributing to stable revenue and profit for the Longhu Group, but also achieving a high-quality development model with low leverage, low cost, strong operation, and positive cash flow to ensure the steady operation of the enterprise.
Continued optimization of the debt structure
Most housing enterprises exploded. The first thing that occurred was a breakdown in the capital chain and default on debt. However, the financial situation of the Longhu Group has remained stable.
According to statistics from the China Index Research Institute, in the third quarter of 2023, the maturing scale of credit bonds of housing enterprises was about 176.8 billion yuan, and the maturing scale of overseas bonds was about 78 billion yuan, for a total of 254.8 billion yuan; in the fourth quarter, the maturing scale of credit bonds of housing enterprises was 112.2 billion yuan, and the maturing scale of overseas bonds was 69 billion yuan, for a total of 181.2 billion yuan...

$LONGFOR GROUP(00960.HK)$ According to incomplete statistics from China Real Estate News, as of August 18, nearly 80 A-share and Hong Kong housing enterprises have disclosed their performance forecasts for the first half of 2023. Of these, more than 60% of housing enterprises expect losses. The total losses range from 1 billion yuan to 55 billion yuan, and the cumulative total loss amount exceeds 100 billion yuan. However, amid the downturn in the industry, Longhu Group (00960.HK) handed over a report card boosting industry confidence in the first half of this year. Net profit was 8.06 billion yuan, and the core profit attributable to shareholders after excluding changes in fair value was 6.59 billion yuan, an increase of 0.6% over the previous year.
Judging from the changes in the real estate industry in recent years, the previous development model with high leverage and high turnover has not adapted to the development of the times. The industry has returned to rationality, and housing enterprises have begun to explore and adapt to new development models. How does Longhu Group survive in a complex and severe environment and maintain steady financial performance?
The three major businesses developed collaboratively, and net profit grew steadily
Recently, Longhu Group announced its mid-2023 results. In the first half of the year, Longhu Group achieved a turnover of 62.04 billion yuan and net profit of 8.06 billion yuan. Excluding changes in fair value, the core profit attributable to shareholders reached 6.59 billion yuan, an increase of 0.6% over the previous year. With about 60% of listed real estate companies in the industry expecting losses, it is not easy for Longhu Group to maintain a positive increase in net profit.
Looking at the split business, we can see the underlying factors behind Longhu Group's steady growth in performance. At...

$LONGFOR GROUP(00960.HK)$ At the end of August, listed housing companies handed over their first half report cards one after another, and the summary highlighted the word “difficult.” In the past, the development-based business model was challenged, and the shortcomings of the “high debt, high leverage, and high turnover” three-way model were completely revealed. Apart from private housing enterprises that lost money in bulk, even some state-owned state-owned enterprises and mixed ownership housing enterprises were not spared.
Under a weak market, housing enterprises are generally shrouded in haze due to poor performance, but there are also a few private housing enterprises that have bucked the trend, such as Longhu. According to the Longhu Mid-Year Report, net profit attributable to shareholders was 8.06 billion yuan from January to June this year, an increase of 7.7% over the same period last year, and the core net profit attributable to shareholders increased to 6.59 billion yuan over the same period last year. In the current market environment, Longhu Group can achieve positive growth in core net profit. How can it be achieved?
“Low leverage” operation, no significant pressure to repay debts during the year
When most housing enterprises choose a fast and easy way to make money, Longhu is one of the few housing enterprises in the industry that maintain sobriety and restraint. On the path of exploring new development models, the advantage of “low leverage” operation is highlighted, and a steady financial market has also become a prerequisite for Longhu to have strategic initiative.
In terms of solvency, there was no significant pressure to repay debts during the year, and it is a green-class enterprise. In the first half of 2023, Longhu had 72.43 billion yuan in cash and total interest-bearing debt of 207.09 billion yuan. In the first half of the year, Longhu's cash short-term debt ratio was 1.96 times. After excluding pre-sale supervision funds and restricted funds, the cash short-term debt ratio was 1.27 times; long...

$LONGFOR GROUP(00960.HK)$ On September 11, Longhu Group (00960.HK) released unaudited operating data. In August alone, the company achieved a total contract sales amount of RMB 13.0 billion and a contract sales area of 682,000 square meters. Among them, the contract sales amount vested in the Company's shareholders' rights was 8.52 billion yuan, and the contracted sales area vested in the Company's shareholders' rights was 476,000 square meters.
Among them, the western region achieved sales of 4.36 billion yuan, the Bohai Rim region 2.97 billion yuan, the Yangtze River Delta region 3.42 billion yuan, the Central China region 950 million yuan, and the South China region 1.3 billion yuan.
In the first eight months of this year, Longhu Group achieved a total contract sales amount of RMB 123.12 billion and a contract sales area of 7.276,000 square meters.
In terms of land reserves, two new land reserves were added in August, with a total construction area of 253,300 square meters, an equity construction area of 180,200 square meters, and a land equity price of 1,944 billion yuan.
The first is the Xi'an Gaoxin GX3-42-72-2 plot, which was sold on August 17. Longhu Group accounts for 65% of the equity, and the land equity price is 1,178 billion yuan. The plot is located west of Planning 2nd Road, Jinglong Street, east of Jing34 Road, north of Jingping 41 Road, and south of Wei36 Road, with a net land area of 70,900 square meters and a construction area of 172,200 square meters.
The other is Group 2 residential land in Sangensong Village, Xinglong Street, Tianfu New District, Chengdu that was sold on August 24. The land area is 3319...

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$Gree Electric Appliances,Inc.of Zhuhai(000651.SZ)$ The Ministry of Industry and Information Technology and the China Federation of Industrial Economics jointly announced the “List of the sixth batch of individual manufacturing champions and the third batch of individual manufacturing champions (products) that passed the review”. Lithium titanate developed and produced by Gree Titanium New EnergybatteryWith excellent characteristics such as high safety, fast charging and discharging, high magnification, wide temperature resistance, and long life, it was selected as the “National Manufacturing Single Champion Product”.