Amid the persistent real estate downturn, Longfor Group (00960) has charted a distinctive path of long-termism through balanced offense and defense strategies. The property sector continued its bottoming-out trajectory in 2025, with National Bureau of Statistics data revealing declining trends across key indicators during January-June: commercial property sales volume and area both contracted, while development investment, new construction starts, and completed areas registered high single-digit to double-digit drops. As developers explore new operational paradigms beyond traditional models, Longfor's diversified business structure demonstrates resilience, with operational segments increasingly driving sustainable performance.

The group's commitment to high-quality development yielded tangible results despite sector headwinds. In 2024, when most developers recorded substantial losses, Longfor emerged among the rare profitable players, delivering shareholder net profit of RMB10.401 billion. During H1 2025, operational income reached approximately RMB14.15 billion (tax-inclusive), comprising RMB7.5 billion from operations and RMB6.65 billion from services—both segments sustaining growth momentum. Operational business contributed 21% to total revenue in 2024, cementing its position as both critical income source and primary profit driver.

Longfor Commercial, the operational segment's cornerstone, implemented its "one store, one policy" strategy with remarkable efficacy. The May-launched Nanning Qingxiu Tianjie exemplifies this approach: positioned as a regional hub, it established Qingxiu East's premier dining destination and retail matrix. Featuring 7 city flagship stores and 20 Nanning debut outlets, the mall attracted over 680,000 visitors within three days, generating RMB27.9 million turnover while propelling 35 brands to top Guangxi sales rankings.

Innovative themed IP campaigns further amplified commercial success. Events like "Tianjie Temple Fair," "Tianjie Awakening Spring," and the Dragon Boat Festival-aligned "Tianjie Shopping Festival" created symbiotic brand ecosystems. The four-day shopping festival alone drove RMB1.96 billion turnover (ex-automotive) with 49.7% YoY daily sales growth and 24.9% traffic increase, peaking at 6 million visits. Holiday-period metrics shattered records with 142.4% daily sales surge and 48.4% traffic growth.

Operational excellence translated into robust metrics: 96.6% H1 occupancy rate, over 20% turnover growth, and 9% daily traffic increase. Future expansion includes approximately 10 new projects in Hangzhou, Shanghai, Wuhan, Chongqing, and Jinan, alongside ongoing renovations like Chongqing Beicheng Tianjie's Constellation Plaza refurbishment.

This operational prowess complements disciplined financial management. The group repaid over RMB9 billion in debts this year, reinforcing its stability. After three decades of strategic development, Longfor has established equilibrium across development, operations, and service segments. With commercial operations spearheading growth, the company is constructing a formidable cash flow moat while calibrating its rhythm to market cycles. As the property sector approaches its trough, Longfor's diversified model positions it for substantial recovery benefits.