On January 5th, LONGFOR GROUP (00960) successfully completed the principal repayment and interest payment for the "21 Longhu 02" bond as scheduled, involving a total amount of approximately 1.038 billion yuan. Public information shows that the "21 Longhu 02" bond was issued with a total value of 1 billion yuan, carrying a coupon rate of 4.4%, and had a put option exercise and fund repayment date of January 7, 2026; this repayment included 994 million yuan in principal upon exercise maturity and 44 million yuan in interest.
According to earlier reports, LONFOR GROUP had already fully settled a Hong Kong dollar syndicated loan in advance at the beginning of December. This syndicated loan had a total size of HK$9.227 billion (approximately 8.5 billion yuan), with a value date of December 21, 2020, and a five-year term. Based on public information, starting from the third quarter, LONGFOR GROUP had been progressively advancing the repayment of the remaining amount and completed the early settlement at the beginning of December.
This signifies that LONGFOR GROUP has now cleared all its public market debt maturing in 2025, navigating through the peak debt period smoothly with its robust financial strategy and orderly arrangements. Following the repayment of the "21 Longhu 02" bond, LONGFOR GROUP's outstanding domestic credit bonds amount to only about 3.4 billion yuan, comprising 147 million yuan maturing in March 2026, 1.5 billion yuan in May 2026, 1 billion yuan in August 2026, and 800 million yuan maturing in January 2027, representing a small maturity scale with dispersed repayment dates.
Fitch Ratings indicated that after 2025, the pressure from LONGFOR's debt maturities, including bonds and syndicated loans, will ease significantly. In practice, since 2023, LONGFOR has consistently utilized positive operating cash flow to drive business growth, establishing a foundation for sustainable development through a secure and stable debt structure.
As of the first half of 2025, LONGFOR GROUP had achieved positive operating cash flow, including capital expenditures, for consecutive periods. Since mid-2022, the company has cumulatively reduced its interest-bearing debt by over 40 billion yuan across three years, leading to continuous optimization of its financial metrics. According to its plan, LONGFOR GROUP's interest-bearing debt is projected to see a net annual reduction of approximately 10 billion yuan starting from 2026, stabilizing the debt scale and eliminating repayment pressure.
Industry observers believe that LONGFOR's successful navigation through the debt cycle holds positive implications for the sector, demonstrating that traditional real estate enterprises burdened with historical issues possess the capability to internally resolve these challenges. By relying on steady, orderly planning and a long-term strategic vision, they can actively participate in exploring and practicing new models for the real estate industry.
Beyond proactively moving away from reliance on leverage and scale, LONGFOR GROUP is also strengthening its growth foundation through the sustained development of its operations and service businesses. This strategy is designed to meet the transformation demands of the inventory era and guide the entire group towards a new path of high-quality development.
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