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On August 28, China Resources Land announced its interim performance report for the year 2024. In the first half of the year, facing the continuous and profound changes in the industry, China Resources Land responded calmly, overcame difficulties, and forged ahead, always maintaining strategic initiative, accelerating the pace of transformation and upgrading, and promoting steady performance. As of June 30, 2024, the company achieved a turnover of 79.13 billion yuan, a year-on-year increase of 8.4%, with a core net profit of 10.74 billion yuan; the interim dividend per share was 0.2 yuan, a year-on-year increase of 1.0%, and the stock price remained the first among domestic real estate stocks, with overall performance outperforming the general trend.

In terms of commercial real estate operations, the rental income from shopping centers reached 9.48 billion yuan, a year-on-year increase of 9.7%. The 82 operating shopping centers under its management achieved a retail sales amount of 91.62 billion yuan, a year-on-year increase of 21.9%, with 69 shopping centers ranking in the top three in local retail sales; 6 shopping centers were opened on schedule with high quality, with a comprehensive occupancy rate of 97.8%; two new shopping center plots were obtained in Beijing and Dalian, continuing to deepen the commercial development in core cities. Under the overall market downturn, the overall occupancy rate of its office buildings was 75.0%, with tenants mainly from the financial insurance, business services, and internet software information technology industries, serving 120 Fortune Global 500 customers.

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In the first half of 2024, China Resources Land strengthened its capital operations and optimized the "large asset management" business. China Resources Commercial REIT was successfully listed on the Shenzhen Stock Exchange on March 14, achieving an operating net profit of 196 million yuan in the first half of the year, with a budget completion rate of 107.4%, and was the first among the first batch of consumer REITs to achieve quarterly dividends. Currently, China Resources Land has built a dual REITs platform for commercial and residential properties, making the capital cycle of "investment, financing, construction, and management" of real estate more smooth, and the pace of transformation of large asset management business is continuously accelerating.

In terms of light asset management business, China Resources Mixc Life, a subsidiary, firmly implemented the strategy of urban space operation service provider, continuously consolidating its leading position in the industry. In the first half of 2024, it achieved a business income of 7.96 billion yuan, a year-on-year increase of 17.1%, with a core net profit of 1.77 billion yuan, a year-on-year increase of 24.2%. The commercial management channel maintained the first place in the industry's comprehensive strength, with 108 operating shopping centers managed during the period, including 13 luxury shopping centers. The scale and quality of market expansion in the property management channel continued to improve, with a managed area of 398 million square meters and a contracted area of 446 million square meters. China Resources Mixc Life actively transformed into an urban space operation service provider, with 89.7% of the urban space project area expanded during the period, and the effect of the beautiful city operation ecosystem was effectively realized, and the advantages of the integrated operation service model were consolidated. The large membership system was steadily promoted, and the membership scale continued to expand, with the total number of Mixc Star members exceeding 52.2 million, a 13% increase from the end of last year.

In terms of ecological element-based businesses, the quality of business development and brand influence have steadily improved. The Shenzhen Houhai Central District Smart City construction and operation service project has preliminarily built a large-scale area comprehensive operation model that coordinates internal and external urban operation elements, forming sub-tracks such as smart operation, cultural activities, business district coordination, and urban space services, and the pace of transformation into an urban operator is continuously accelerating. The urban construction business achieved a turnover of 390 million yuan, with 358 projects under management at the end of the period, and the newly signed government construction area in the first half of the year ranked second in the industry, making a positive contribution to urban public services and the planning and construction of municipal infrastructure. The rental housing business achieved a turnover of 380 million yuan, with a total of 62 projects under management, ranking eighth in the industry's management scale. China Resources Youchao REIT's performance has increased steadily, with a total of 39.31 million yuan in fund turnover and 24.6 million yuan in fund EBITDA according to the disclosed data of the first and second quarter reports, a year-on-year increase of 1.5% and 4.3%, respectively, and is actively promoting expansion. The sports venue operation business achieved a turnover of 300 million yuan, with 17 projects under management at the end of the period, ranking first in the industry's management scale, and newly obtained the operation rights of 3 high-quality venues in Shenzhen and Xiamen in the first half of the year, with the ability to provide full-element operation services for events continuously strengthening.

In terms of development and sales business, a contract amount of 124.7 billion yuan was achieved, maintaining the fourth place in the industry, with a market share ranking in the top five in 20 cities; adhering to strategic investment guidance, balancing income and expenditure, and sticking to the bottom line, focusing on core cities and core areas, obtaining multiple strategic projects; strengthening the lean management of production and operations, optimizing the existing stock, resolving risks, strengthening cost control, and accelerating development efficiency; continuously improving the product strength with the optimal system cost, fully creating a comprehensive real scene demonstration area, and high-quality projects such as Hangzhou Wangyun Jingchen Mansion and Sanya Haitang Yuefu have been widely praised by the industry.

In terms of environmental, social, and governance (ESG), China Resources Land has fully integrated ESG into the company's development strategy and production operations around six major areas: "corporate governance, employee development, product services, partner win-win, environmental benefits, and community contributions." In terms of environmental protection, it actively responded to the national dual-carbon strategy, accelerated the transformation of green development, vigorously carried out low-carbon technology research and development, and 12 projects obtained the WELL health and safety evaluation. In terms of fulfilling social responsibilities, it helped rural revitalization, participated in the construction of Shandong Yimeng and Inner Mongolia Aershan China Resources Hope Towns, with a total of 14 hope towns built and under construction, and 4 more are being planned; in the first half of the year, the construction area of affordable housing was 16.19 million square meters, and 56,000 rental housing units were managed. In terms of ESG ratings, it ranked 10th on the "China Listed Company ESG Pioneer 100" list by China Central Television, maintained an A-level MSCI-ESG rating, and was included in the Hang Seng Sustainable Enterprises Index and the ESG50 Index constituent stocks.

In terms of financial management, China Resources Land takes cash flow safety as the lifeline of development, strictly controls it from both the income and expenditure ends, and carries out special scheduling of cash flow every month. In the first half of the year, the company's comprehensive financing cost was 3.24%, which was 32BP lower than at the beginning of the year, setting a new historical low. All three red lines were maintained in the green zone, and the industry's highest international credit rating was maintained.

Looking forward, China Resources Land will continue to adhere to the company's excellent tradition of "long-termism" and the firm belief of "always defining itself with struggle", better coordinate "development and safety", go all out to ensure stable growth in performance, plan and layout the transformation and development path in advance, respond to the uncertainty of the situation changes with the certainty of its own capabilities, accelerate the construction of the industry's leading comprehensive strength urban investment and development operators, create a world-class enterprise, grow together with partners, provide good products and services for customers, and enhance investment returns for shareholders.