Greentown China reported first-half profit attributable to owners of RMB81.72 million, down 61.07% year-on-year, as recognized revenue declined, gross margin fell to 11.11% and legacy land inventory continued to weigh on profitability. CICC cut its target price 16% to HK$11.8 while maintaining an Outperform rating, and HSBC Research lowered its target to HK$8.7 while retaining Hold. Revenue was approximately RMB39.5 billion, with property development revenue of RMB36.2 billion, while consolidated sales fell 25% to RMB60.2 billion. The company destocked RMB9.8 billion of long-aging inventory, or 54% of its full-year target. Financial pressure was partly offset by lower debt and funding costs: interest-bearing debt stood at approximately RMB130.8 billion, blended financing costs fell to 3.2% and net gearing was about 63.9%. Greentown also invested RMB18.6 billion in land on an attributable basis, adding RMB45.9 billion of saleable resources, 94% of which was in first- and second-tier cities. Analysts remain focused on the pace of legacy-inventory disposal, the strength of the high-end project pipeline and whether second-half sales improve from a lower comparison base.