The current property market downturn has now lasted a full four years. Although there are signs of improvement recently, they are not particularly pronounced.

Recently, listed property developers have successively released their mid-year 2025 results. While many still report year-over-year declines or losses, some have managed to break through the difficulties.

For instance, leading developer China Resources Land achieved total revenue of 94.92 billion yuan in the first half of this year, a year-over-year increase of 19.9%; shareholders' attributable profit reached 11.88 billion yuan, up 16.2% year-over-year; however, core net profit was 10 billion yuan, down 6.6% year-over-year, breaking an 18-year consecutive growth record.

This should be considered a quite decent interim report for a property company. Through the specific changes in performance composition, we can glimpse the direction and capability of property developers in exploring ways to navigate through cycles.

In the first half of the year, China Resources Land's recurring business total income increased 2.5% year-over-year to 20.56 billion yuan, accounting for only 21.7% of total revenue, yet contributed 6.02 billion yuan in core net profit.

Development and sales business revenue increased 25.8% year-over-year to 74.36 billion yuan, accounting for nearly 80% of total revenue, but only contributed less than 4 billion yuan in core net profit, which also declined 23.8% year-over-year.

This indicates that while first-tier property companies can achieve large development scales, capital chain risks increase, leading to revenue growth without profit growth and dragging down fundamentals. Meanwhile, operational businesses such as property management services and commercial operations have become profit highlights and will carry the banner.

Compared to first-tier state-owned property enterprises, private property developers generally face tougher times currently, with survival remaining the top priority. However, typical companies like SUNAC, despite still facing many problems, are courageously charging forward with confidence and determination for a turnaround.

According to SUNAC's disclosure, revenue in the first half of this year was nearly 20 billion yuan, down 41.7% year-over-year; the company's shareholders' attributable loss was approximately 12.8 billion yuan, with losses narrowing 14.4% year-over-year. SUNAC's loss reduction is a positive signal.

Of course, the biggest task facing SUNAC's helmsman Sun Hongbin this year is debt resolution and reduction. At the beginning of this year, SUNAC's approved 15.4 billion yuan domestic debt restructuring accelerated implementation, including four options: cash payment, stock economic benefit rights payment, debt-to-asset conversion, and debt extension.

In April this year, SUNAC launched a comprehensive debt-to-equity conversion plan for 9.55 billion USD in offshore debt, which has received support from creditors holding over 75% of outstanding principal, awaiting Hong Kong High Court approval next month.

Sun Hongbin stated that domestic debt restructuring has completed cash and stock economic benefit rights payment options, with other options expected to be executed by year-end, striving to complete all court procedures for offshore debt restructuring by year-end.

As of the end of June this year, SUNAC's interest-bearing debt was 254.82 billion yuan, down 22.61 billion yuan year-over-year and approximately 4.85 billion yuan from year-end. According to Sun's plan, completing domestic debt restructuring this year and potentially completing nearly 10 billion USD offshore debt conversion in the first half of next year would significantly reduce total borrowing pressure.

Compared to debt risk mitigation, SUNAC's future success depends on sustainable operational capability. From this year's interim report, three key cards - substantial quality development land reserves, SUNAC Services, and culture & tourism - provide the foundation for breakthrough and revival.

As of the end of June this year, SUNAC China had net assets of 44.88 billion yuan, total land reserves of approximately 124 million square meters, and unsold land reserve value of approximately 1.14 trillion yuan, with first and second-tier cities accounting for about 70%.

In the first half of this year, SUNAC's contract sales reached 23.55 billion yuan, firmly maintaining its position in the TOP20, ranking third among private developers. Led by "One Mansion" TOP series products, it continues to lead the national high-end market, with Shanghai One Mansion achieving four successful launches and claiming the national single-project sales championship with 22 billion yuan in sales.

SUNAC's ability to maintain its sales foundation mainly lies in focusing on core locations in first and second-tier cities while perfecting products to create benchmark luxury residential works.

In August, the fifth batch and final high-rise building of Shanghai One Mansion sold out upon opening, followed by the upcoming launch of Shanghai One Mansion and Shanghai Bund One Mansion heritage villas. Tianjin's only new property for sale in old Meijiang - Meijiang One Mansion Phase II low-density houses and the new Peach Blossom Series products - Wuhan Peach Blossom Courtyard houses and townhouses will also debut this year.

As "hard cards" for SUNAC's operational income, SUNAC Services and SUNAC Culture & Tourism generated combined revenue exceeding 5.6 billion yuan in the first half of this year, with their share of SUNAC's total revenue rising to 28.3%. Among these, SUNAC Services achieved revenue of 3.55 billion yuan in the first half, with attributable net profit of 120 million yuan, turning profitable, available funds of 3.04 billion yuan, and managing 290 million square meters.

SUNAC Culture & Tourism includes four major formats: theme parks, commercial, ice & snow, and hotels. By creating new content and scenarios, it has sparked waves of phenomenal culture & tourism trends through product iteration and experience renewal.

Among these, the upgraded theme park performances "Dream Back to West Tower," "Dream Back to Lingnan," and debuts of "Dream Back to Hongzhou" and "Dream Back to Taihu" were staged at four major culture & tourism cities in Jinan, Guangzhou, Nanchang, and Wuxi respectively, with over 200 summer performances, establishing new local entertainment benchmarks.

To integrate the four formats and leverage "Culture & Tourism City" brand advantages synergistically, SUNAC's 12 culture & tourism cities have connected a 365-day, 24-hour one-stop vacation scenario featuring "daytime amusement rides, sea world pet interactions, four-season snow slope skiing, shopping at commercial IP flagship stores, nighttime immersive large-scale performances, gourmet dining, and quality hotel stays."

Under current multiple supportive policies, the market expects Sun Hongbin and his team to seize opportunities and methodically fight a successful "comeback battle" this year and next.