On August 28, China Resources Land announced its 2024 interim results. In the first half of the year, in the face of continuous and profound changes in the industry, China Resources Land responded calmly, overcame difficulties, always grasped strategic initiative, accelerated the pace of transformation and upgrading, and promoted the steady achievement of performance. As of June 30, 2024, the company achieved a turnover of RMB 79.13 billion, up 8.4% year on year, and core net profit of RMB 10.74 billion; the interim dividend was RMB 0.2 per share, up 1.0% year on year. The stock price remained the first in domestic housing stocks, and the overall performance outperformed the general trend.

In terms of operational real estate business, the shopping center's rental revenue reached RMB 9.48 billion, an increase of 9.7% over the previous year. Its 82 active shopping malls achieved retail sales of RMB 91.62 billion, an increase of 21.9% over the previous year. The retail sales of 69 shopping malls ranked in the top three in the region; 6 shopping malls opened with high quality as scheduled, with a comprehensive occupancy rate of 97.8%; and acquired two new shopping center plots in Beijing and Dalian, continuing to practice deep commercial cultivation in core cities. In an environment where the market is declining, the overall occupancy rate of its office buildings is 75.0%. The tenants mainly come from the financial insurance, business services, Internet software and information technology industries, and serve 120 of the world's top 500 customers.

In the first half of 2024, China Resources Land will strengthen capital operations and improve the “big asset management” business. China Resources Commercial REIT was successfully listed on the Shenzhen Stock Exchange on March 14. In the first half of the year, it achieved net operating income of RMB 0.196 billion and a budget completion rate of 107.4%. It was the first batch of consumer REITs to achieve quarterly dividends. At present, China Resources Land has built a commercial and Youchao dual REITs platform. The real estate “investment, finance, construction and management withdrawal” capital cycle is smoother, and the pace of transformation of the large asset management business continues to accelerate.

In terms of asset-light management business, its subsidiary China Resources Vientiane Life has firmly implemented the strategy of an urban space operation service provider and continued to consolidate its leading position in the industry. In the first half of 2024, it achieved operating revenue of RMB 7.96 billion, an increase of 17.1% over the previous year, and core net profit of RMB 1.77 billion, an increase of 24.2% over the previous year. The commercial management channel maintained the highest overall strength in the industry. During the period, 108 shopping malls were in operation, including 13 luxury shopping centers. The market-based expansion scale and quality of the property management channel continued to improve. During the period, the management area was 0.398 billion square meters and the contract area was 0.446 billion square meters. China Resources Vientiane Life actively transformed into an urban space operation service provider. Urban space expansion projects accounted for 89.7% of the area during the period. The implementation of a beautiful urban operation ecosystem showed results, and the advantages of the integrated operation and service model were consolidated. The membership system progressed steadily, and the membership scale continued to expand. The total number of Vientiane Star members during the period exceeded 52.2 million, an increase of 13% over the end of last year.

In terms of ecosystem element business, the quality of business development and brand influence have been steadily improving. The smart city construction and operation service project in the central area of Shenzhen has initially established a large-scale integrated operation model that coordinates internal and external urban operation elements, forming a segmented circuit for smart operation, cultural activities, business district coordination, and urban space services. The pace of transformation of city operators continues to accelerate. The urban construction business achieved a turnover of RMB 0.39 billion, and 358 projects were under management at the end of the period. In the first half of the year, the additional government contract area ranked second in the industry, making positive contributions to urban public services and municipal infrastructure planning and construction. The rental housing business achieved a turnover of RMB 0.38 billion, with a total of 62 projects under management, ranking eighth in the management scale industry. China Resources Youchao REIT's performance increased steadily. According to the total data disclosed in the first and second quarter reports, the fund's turnover was RMB 39.31 million, an increase of 1.5% over the previous year; the fund's EBITDA was RMB 24.6 million, an increase of 4.3% over the previous year, and is actively promoting expansion. The cultural and sports venue operation business achieved a turnover of RMB 0.3 billion, with 17 projects under management at the end of the period, ranking first in the management scale industry. In the first half of the year, Shenzhen and Xiamen obtained the right to operate 3 new high-quality stadiums, and the ability to operate all elements of the event was continuously enhanced.

In terms of developing sales businesses, we achieved a contract amount of RMB 124.7 billion, maintaining the fourth largest market share in the industry and the top five in the market share of 20 cities; adhering to the strategy to lead investment, measuring income and output, sticking to the bottom line, focusing on core locations in core cities, and obtaining multiple strategic projects; strengthening lean management of production and operation, improving inventory, mitigating risks, strengthening cost control, and accelerating development efficiency; continuously improving product capabilities with optimal systemic costs and comprehensively building full-dimensional reality demonstration zones. High-quality projects such as Hangzhou Wangyun Jingchen House and Sanya Haitang Yuefu have been widely used in the industry. Good reviews.

In terms of environmental social and governance (ESG), China Resources Land fully integrates ESG into the company's development strategy and production operations around the six major areas of “corporate governance, employee development, product service, win-win partnership, environmental benefits, and community contribution”. In terms of environmental protection, it has responded positively to the national dual-carbon strategy, accelerated green development and transformation, and vigorously carried out research and development of low-carbon technology. 12 projects received WELL health and safety evaluations. In terms of fulfilling social responsibilities, we helped revitalize the countryside and participated in the construction of Huarun Hope Town in Yimeng, Shandong and Arshan, Inner Mongolia. A total of 14 Hope Towns were built and built, and 4 more are being planned. In the first half of the year, 16.19 million square meters of affordable housing were constructed, and 0.056 million rental housing units were managed. In terms of ESG ratings, it was ranked 10th on CCTV's “ESG Pioneer 100 of China's Listed Companies” list. The MSCI-ESG rating remains A, ranking as a component of the Hang Seng Sustainable Development Enterprise Benchmark Index and ESG50 Index.

In terms of financial management, China Resources Land uses cash flow safety as the lifeline of development, firmly controls both ends of income and expenditure, and carries out special monthly cash flow scheduling. The company's comprehensive financing costs in the first half of the year were 3.24%, down 32BP from the beginning of the year, a record low. All three red lines remain green, maintaining the highest international credit rating in the industry.

Facing the future, China Resources Land will continue to uphold the fine tradition of the company's “long-term principle” and the firm belief of “always defining itself through struggle”, better coordinate “development and safety”, make every effort to ensure steady growth in performance, plan a transformation and development path ahead of time, respond to the uncertainty of situation changes with certainty with its own capabilities, accelerate the construction of leading urban investment and development operators with comprehensive strength in the industry, create world-class enterprises, and grow together with partners to provide customers with good products and services to enhance return on investment for shareholders.