Longfor Group: All domestic bonds and medium-term notes will be repaid by January next year. Operating and service revenue in 2028 will surpass real estate development.

On March 27, Longfor Group held its 2025 annual performance conference, attended by Chairman and CEO Chen Xuping, Executive Director and CFO Zhao Yi, Executive Director and General Manager of Real Estate Navigation Zhang Xuzhong, and others. The management of Longfor Group stated that whether real estate companies can transition to a new model hinges on the core issue of whether business adjustments can be deeply integrated with debt structure adjustments. Private developers must actively transform to seek a way out, rebuild their debt foundation, and reconstruct their development model. By 2025, the proportion of revenue from Longfor Group’s operations and services business is expected to rise to 27.5%, contributing nearly 8 billion yuan in profit. The management revealed that by 2028, the company’s revenue from operations and services is expected to surpass that from real estate development; at the same time, due to pressure on the gross profit margin of development business, core profits after excluding the impact of fair value changes will suffer a loss, but management anticipates growth will resume starting in 2027 and disclosed that all domestic debts and medium-term notes will be repaid by January next year. (The Paper)