Huafa Group's Transformative Leap

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The recent national meeting on urban housing and construction unveiled a comprehensive strategy aimed at guiding China's real estate sector through 2025. This strategy emphasizes a holistic approach to urban development, underscoring the importance of "Good Houses, Good Communities, Good Neighborhoods, and Good Urban Areas," collectively termed the "Four Goods." In light of the stable real estate market and the acceleration towards a new development model for real estate, a robust promotion of urban renewal initiatives is also on the agendaSuch measures are intended to ensure that the objectives outlined in the 14th Five-Year Plan are effectively met.

Among the forerunners in this changing landscape is Huafa Group, a prominent player in the residential sectorSince 2024, the company has aligned closely with the national "Good Housing" policy, committing itself to building high-quality residential spaces characterized by safety, comfort, greenness, and intelligence

With a wide range of offerings and an excellent reputation, Huafa has been recognized widely in the market for its contributions to the "Four Goods" initiativeFurthermore, through diversifying its business model, Huafa has transitioned from being a regional real estate enterprise to a comprehensive national player, showcasing its formidable market competitiveness and strategic foresight.

The real estate market has shown signs of recovery, bolstered by a series of favorable policiesHuafa’s operational revenue has consistently ranked high, securing its position within the top tier of the industryAccording to statistics from CRIC, Huafa's operational revenue reached an impressive 103.69 billion yuan from January to December 2024, landing the company in the top nine of the industryMarking the eighth consecutive occurrence in which Huafa has achieved a top-ten status, this milestone highlights the company's consistent performance and solid strength amid market fluctuations.

Insight from CITIC Securities suggests that 2025 could prove to be a pivotal year for real estate as the sector adapts to stabilize and thrive

There's anticipation that the market will experience various positive transformations, notably highlighting quality properties and well-managed enterprises within major urban areas, particularly in a low-interest-rate environment, which could further drive market appeal.

In the context of the "Four Goods" initiative, the concept of a "Good House" has evolved beyond a mere shelter from the elements; it has become a crucial element reflecting people's aspirations for a better lifeAs housing needs diversify, the residential sector faces an urgent need to adapt, aiming to provide consumers with enhanced quality and more intelligent living solutions.

Huafa has deftly recognized the opportunities presented by Zhuhai's new residential system focused on "digitization, intelligence, greenness, and industrialization." The company is actively exploring new demands and concepts that are reshaping real estate development

By centering its efforts on user needs, Huafa is dedicated to creating livable environments characterized by excellent products, quality materials, and innovative solutions that emphasize safety and sustainabilityEmploying digital techniques, standardized designs, and comprehensive lifecycle management, Huafa commits itself to providing residents with a health-conscious and convenient living experience while establishing its unique core value system.

Since the beginning of 2024, Huafa has fully embraced the "Good House" policy, launching the "Huafa Technology + Good House Product System Technical Standards." This system, rooted in four technical foundations, marks a significant transition from merely providing basic housing to ensuring it meets high-quality standardsThis initiative actively promotes the construction of safe, comfortable, green, and smart living spaces, solidifying Huafa's role in the "Four Goods" development and earning the respect of the market and consumers alike.

In practice, Huafa has integrated cutting-edge technologies—such as the HarmonyOS and drone delivery services—into its product offerings, striving to upgrade housing functionalities and user experiences comprehensively

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By merging smart home technologies, digital intelligent communities, and drone logistics, the "Technology + Good House" system substantiates the deep integration of technology with housing products, creating implementable standards for the industryHuafa's initiatives not only serve as a model for the "Four Goods" development in Zhuhai but also make significant contributions to the high-quality progression of the real estate sector at large.

In the current climate of transformation within the real estate industry, proactive adaptation, resilience in growth, and the pursuit of diverse pathways for expansion have become vital for public real estate companies aiming to enhance their competitive edgeHuafa has responded positively to national industrial policies, accelerating its transformation and gradually establishing a "1+3" development framework centered on boutique residential development, backed by commercial operations and property management alongside upstream and downstream supply chain capabilities

This newly crafted model injects renewed growth momentum into the company, facilitating a leap from a regional to a national integrated real estate enterprise.

In commercial operations, Huafa Business has gained recognition for its outstanding performance, earning a spot among the "Top 30 Comprehensive Strength in Real Estate Management in China for 2024," making it the first enterprise from Zhuhai to achieve this recognitionIn November 2024, the Hengqin Huafa Commerce Hub will officially commence trial operations, attracting over 20 flagship stores in its opening phase.

The Hengqin Huafa Commerce Hub stands out with its innovative design and diverse business offerings, covering self-indulgent retail, unique entertainment experiences, daytime cafes, evening bars, and even pet camping areasThe hub aims to create a "preferred lifestyle environment" for customers, while also encouraging the evolution of the proprietor's economy, first-store economy, and community-driven initiatives

Notably, over 60% of the shops are run or invested by partners with backgrounds in Australian capital, underscoring the regional integration in the Zhuhai-Macao area.

Strengthening foundational businesses and expanding nationally are core ambitions for HuafaThe company not only seeks to establish a model for "Good Housing" and commercial operations in Zhuhai but also aims to fortify its core real estate business while leveraging Zhuhai as its operational base for nationwide growth.

Being the key platform for Huafa Group's real estate development arm, Huafa has been in operation for more than 40 years, paralleling the establishment of the Zhuhai Special Economic ZoneOver the years, Huafa has maintained a principle of stable management, focusing on enhancing the scientific governance of the companyIt actively integrates into national strategic layouts and local development plans, consistently creating value in support of regional economic advancement and citizens' quality of life, thus fostering a symbiotic relationship between enterprise and society.

Focusing on Zhuhai as its core market, Huafa is deeply exploring opportunities in the Guangdong-Hong Kong-Macao Greater Bay Area, while also extending its outreach to the Yangtze River Delta, the Beijing-Tianjin-Hebei region, and the Yangtze River Economic Belt

This strategic endeavor has culminated in a "3+1" national framework, structured around the Zhuhai, East China, South China, and Northern regionsPresently, first-tier and key second-tier cities like Beijing, Shanghai, Guangzhou, Shenzhen, Hangzhou, Chengdu, Suzhou, Xi'an, Nanjing, and Changsha are tagged as priority growth areas for the company.

By the end of 2024, Huafa successfully established a presence in nearly 50 significant inland cities, developing over 200 boutique residential projects and serving more than a million ownersThis marked an impressive transformation from "Zhuhai Huafa" to "China Huafa."

In product development, Huafa staunchly upholds the brand philosophy of "Quality China, Craftsmanship in Home Building," embodying a long-term perspectiveUtilizing its extensive experience and high-quality standards, the company has produced over 200 boutique living solutions

Regardless of the aspect—design, construction, or service—Huafa is committed to delivering an elevated living experience that meets the diverse needs of customers.

On the sales strategy front, Huafa has consistently pursued innovationAt the beginning of 2024, the company introduced a "Trade-in 1.0" model, directly acquiring second-hand properties to facilitate customers' housing transitionsThis approach evolved into the "Trade-in 3.0" model, incorporating services such as direct purchases, consignment sales, and subsidies, and highlighted six core benefits including "zero-pressure housing exchanges," seamless transitions, and care-free service, with no commission charges for assistance in buying new homesBy the end of October 2024, this initiative had reached over 460,000 individuals, evaluated more than 850 properties, and completed over 300 transactions—indications of its strong market approval.

In commercial operations, Huafa has experienced a significant evolution over the past decade, successfully establishing a presence in 28 cities, including Beijing, Shanghai, Guangzhou, Shenzhen, and Wuhan, managing over 100 commercial office projects with approximating 4 million square meters of business operational space

Flagship projects such as "Huafa Commerce Hub" and "Huafa New World" have garnered industry acclaimAccording to company reports, from January to September 2024, Huafa’s rental income reached 538 million yuan, reflecting a 39.38% year-on-year increase and demonstrating strong commercial operational capabilities.

In the competitive landscape of Zhuhai’s real estate market, Huafa has consistently excelledIn 2023, the company reported a total sales figure of 125.99 billion yuan, with equity sales reaching 87.27 billion yuan, maintaining its position among the elite trillion-yuan enterprises for four consecutive yearsWith a robust growth rate placing it second among the top twenty developers, Huafa remains in the green zone of the “three red lines” regulatory frameworkFor 2024, Huafa recorded an all-inclusive sales amount of 105.44 billion yuan, ranking 10th in the CRIC sales leaderboard, thereby continuing its trend as a leading player in the industry.

As faced with the challenges of industry transformation and upgrading, Huafa Group has responded through a deep understanding of market demands, leveraging its unique strengths, and unveiling impactful product systems that provide clear strategies for adaptation

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