Longfor Group: Will repay all domestic debts and medium-term notes in January next year, and operating and service revenue will exceed real estate development in 2028.

On March 27th, Longfor Group held a performance release conference for the year 2025, with Chairman and CEO Chen Xuping, Executive Director and CFO Zhao Yi, Executive Director and General Manager of Real Estate Channel Zhang Xuzhong in attendance. The management of Longfor Group stated that the key issue for real estate companies to transition to a new model is whether business adjustments can be deeply integrated with debt structure adjustments. Private developers must proactively transform and seek a way out by rebuilding their debt foundation and restructuring their development models. By 2025, Longfor Group's operating and service business revenue ratio will increase to 27.5%, contributing to nearly 8 billion yuan in profits. The management disclosed that they expect the scale of operating and service business revenue to exceed real estate development by 2028. However, due to pressure on the gross profit margin of development business, the core profit after excluding fair value changes is expected to incur losses for the first time. The management expects a recovery in growth starting from 2027, and revealed that all domestic debts and medium-term notes will be repaid in January next year.