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on august 28, china resources land held a 2024 interim results conference. li xin, executive director and chairman of the board of directors of china resources land, answered questions from securities times reporters at the conference and said that the real estate industry has fully entered the inventory era. next, the company will continue to enhance the organizational capabilities of the entire value chain around the core task of inventory removal. at the same time, continue to transform to the "big asset management" business and create a second growth curve. in addition, focusing on the ecosystem element business, it will focus on three sub-tracks, including urban construction, venue operation, and rental housing, to fully promote the implementation of the strategic positioning of urban operators. he also revealed that in the next 2-3 years, china resources vanke life will achieve revenue and profit growth of about 20%.

under the influence of a series of new policies issued by the central government on may 17, positive changes occurred in the real estate market in june and july. the decline in indicators such as commercial housing sales continued to narrow, but most indicators are still declining. the overall market is still adjusting. in the face of the current market situation, what adjustments will china resources land make to its overall development strategy?

in this regard, li xin told a securities times reporter that china's real estate industry has continued to undergo in-depth adjustments over the past three years. during this process, china resources land has always grasped the strategic initiative, adhered to the strategic positioning of an urban investment, development and operation operator and the "3+1" integrated business model, accelerated transformation and innovation, and the company's recurring business revenue continued to increase its share.

li xin believes that the real estate industry has fully entered the era of inventory. in terms of development and sales business, china resources land has gotten rid of the inertial thinking of relying solely on incremental growth to achieve performance, and has shifted its focus to inventory clearance and improved the organizational capabilities of the entire value chain. "in terms of inventory clearance, china resources land took action relatively early and has laid a good foundation. the team has formed a unified idea of ​​inventory clearance in the era of inventory clearance from top to bottom, and has also trained the organizational capabilities of the entire value chain of inventory clearance." he said that in the future, in the era of inventory clearance, the core task will be to fully clear inventory, and continue to improve the organizational capabilities of the entire value chain to achieve the goal of inventory clearance.

"the second measure is the continued promotion of the public reits policy. china resources land's operating real estate + asset management business has begun to take shape, and the transformation to the 'big asset management' business has become a potential energy." li xin said that so far, china resources land's total asset management scale is about 450 billion yuan, and the operating real estate revenue accounts for more than 25%, and the profit share may be even higher, indicating that china resources land's transformation business is booming. in the future, it will continue to make efforts in the transformation of operating real estate + asset management business to "big asset management" business to create china resources land's second growth curve.

li xin also said that although the current growth rate of the consumer market has slowed down, its scale is still expanding. the positioning of cr land is to continue to consolidate its leading position in the industry. in the next 2-3 years, it is necessary to achieve revenue and profit growth of around 20%.

in addition, li xin also pointed out that since the reform and opening up, a large number of demands for the revitalization of social assets and the operation of urban space have been formed. china resources land focuses on the "3+1" integrated business model, that is, around an ecosystem element business, and will focus on three sub-tracks such as urban construction, venue operation, and rental housing, to establish the capabilities and brand influence of each element business, and comprehensively promote the implementation of china resources land's strategic positioning as an urban operator.

according to china resources land's 2024 interim performance report, in the first half of the year, the company achieved a turnover of 79.13 billion yuan, a year-on-year increase of 8.4%, and a core net profit of 10.74 billion yuan. among them, the turnover of development and sales business was 59.13 billion yuan, a year-on-year increase of 8.3%. the turnover of operating real estate business was 11.47 billion yuan, a year-on-year increase of 7%; the turnover of light asset management business was 5.89 billion yuan, a year-on-year increase of 17.6%; the turnover of ecosystem element business was 2.64 billion yuan, a year-on-year increase of 0.8%. recurring income totaled 20 billion yuan, a year-on-year increase of 9%, accounting for 25.3% of turnover.

specifically, in terms of development and sales business, china resources land achieved a contract value of 124.7 billion yuan in the first half of the year, maintaining the fourth place in the industry, and the market share in 20 cities ranked in the top five. in terms of operating real estate business, shopping mall rental income reached 9.48 billion yuan, a year-on-year increase of 9.7%. in terms of light asset management business, its subsidiary china resources vanke achieved operating income of 7.96 billion yuan in the first half of the year, a year-on-year increase of 17.1%, and core net profit of 1.77 billion yuan, a year-on-year increase of 24.2%.