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"affected by the downturn in the entire real estate industry, the residential sales market is highly competitive, especially for residential products outside the outer ring of shanghai, which generally have long-term sales and extended sales cycles."

on september 2, at the 2024 semi-annual performance conference held at lujiazui (sh600663, stock price 7.74 yuan, market value 38.972 billion yuan), the company's general manager deng jiayue said.

the interim report shows that in the first half of this year, lujiazui achieved operating income of approximately 4.598 billion yuan, a year-on-year increase of 15.47%; net profit attributable to shareholders of listed companies was 556 million yuan, a year-on-year decrease of 21.24%; net cash flow from operating activities was 2.404 billion yuan, a year-on-year decrease of 50.21%; basic earnings per share was 0.1155 yuan/share.

thanks to projects on sale such as shanghai century qiantan·tianyu, century qiantan·tianhui and chuansha jinxiu yunlan, lujiazui recorded a total cash inflow from real estate sales of 4.308 billion yuan, and the cumulative contract sales area of ​​residential properties (including parking spaces) was 20,900 square meters, achieving a year-on-year growth; the contract sales amount was 2.257 billion yuan, a year-on-year increase of 104%; the overall sales rate of projects on sale was 84%.

however, judging from the residential sales situation, the sales rate of the new batch of houses in the two lujiazui projects is far lower than that of the previous batch. in chuansha jinxiu yunlan, the third batch of houses entered the market in april this year, and by the end of the reporting period, only 19% of them were sold, while the previous two batches of houses had sold 89% and 54% respectively.

at the performance release conference, deng jiayue frankly admitted the problem of the extended sales cycle of projects outside the shanghai outer ring road when answering questions from the reporter of the daily economic news. she said that the chuansha jinxiu yunlan project (the first batch) and the century qiantan project are now in the final stages of sales.

in the first half of the year, lujiazui's net profit showed a significant decline, while operating costs increased from 1.345 billion yuan in the same period last year to 1.949 billion yuan, a year-on-year increase of 44.9%.

according to deng jiayue, the company's operating income and net profit attributable to the parent company in the regional development sector showed an upward trend compared with the same period last year, and operating costs increased accordingly. the net profit fell significantly, mainly because the financial services sector was affected by macroeconomic policies, economic cycles and market interest rate declines.

the reporter noted that under the business coordination of the controlling shareholder, lujiazui has become an important regional development platform for the group. in addition to deepening its layout in the lujiazui area of ​​pudong, shanghai, it has also successively developed residential, office and hotel complex projects in zhangjiang, qiantan and chuansha areas of shanghai. the interim report shows that in the first half of the year, real estate sales accounted for 27% of lujiazui's main business income, while real estate leasing and property management accounted for 36% and 23% respectively.

the suzhou green bank project, which has attracted much attention from the market, is one of the few areas outside of shanghai that lujiazui has expanded. because 14 plots of land under suzhou green bank were polluted, and the area and degree of pollution far exceeded the pollution conditions disclosed when the plots were listed for sale, lujiazui filed a claim for compensation of about 10.044 billion yuan against multiple defendants.

according to the interim report, lujiazui holdings' subsidiary green shore has suspended related development, construction and sales work. as of the date of the report disclosure, with the active promotion of all parties, the on-site soil treatment work of the relevant plots of the green shore project has been completed, and the relevant follow-up work is being carried out in an orderly manner.

regarding the progress of the litigation for this project, deng jiayue said that the company has received a written acceptance notice and the trial has not yet begun.

lujiazui said that in the second half of the year, it plans to push forward the completion and delivery of the weifang community 497-02 project in november, and ensure that the "century zhendi" project obtains a residential occupancy permit by the end of the year; promote the liquidation of the century tianhui project, and the opening sales of century zhendi, the xinminyang "lujiazui swire source" in cooperation with swire, and the equity-invested project qiantan mansion, and ensure the progress of the additional launch and continued sales of chuansha jinxiu yunlan and the group's commissioned project hangtou jinxiu lanwan.

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