Longfor Group (960) H1 2025 earnings summary

Executive summary

• Revenue for 1H2025 reached RMB58.8 billion, up 25.4% year-over-year, with property development up 34.7% and investment property operation up 2.5%.

• Over 100 projects delivered across 36 cities, providing nearly 40,000 housing units.

• Interest-bearing debt reduced by RMB6.5 billion, average finance cost at 3.58%, and average contract borrowing period extended to 10.95 years.

• Net operating cash flow exceeded RMB2.0 billion, supporting stability through the cycle.

• Focus on debt reduction, positive cash flow, and high-quality development amid sector restructuring.

Financial highlights

• Total revenue: RMB58.75 billion (1H25), up from RMB46.86 billion (1H24).

• Gross profit: RMB7.42 billion (1H25), down from RMB9.64 billion (1H24).

• Profit attributable to owners: RMB3.22 billion (1H25), down from RMB5.87 billion (1H24); core net profit attributable: RMB1.38 billion.

• Basic EPS: RMB0.477 (1H25) vs. RMB0.899 (1H24); core basic EPS: RMB0.21.

• Interim dividend declared: RMB0.07 per share, with scrip option available.

Outlook and guidance

• Focus remains on high-quality development, prudent financial management, and debt reduction.

• Second half plans include continued investment in core cities, flexible sales strategies, and launching 10 new malls.

• Emphasis on sustainable growth, operational efficiency, and customer-centric product upgrades.