Company Information [Company Information Overview](index=3&type=section&id=%E5%85%AC%E5%8F%B8%E8%B5%84%E6%96%99%E6%A6%82%E8%A7%88) This chapter provides detailed company information for China Overseas Property Holdings Limited as of August 25, 2025 (interim report date), including board members, committee compositions, authorized representatives, company secretary, independent auditor, registered and principal office addresses, principal share registrar, legal counsel, principal bankers, investor relations contact, stock code, and the 2025 financial calendar - The Board of Directors comprises executive directors (including Chairman, CEO, Vice President, CFO), non-executive directors, and independent non-executive directors[6](index=6&type=chunk) - The Company has established an Audit Committee, Nomination Committee, Remuneration Committee, and Sustainability Steering Committee to ensure effective corporate governance[6](index=6&type=chunk) Company Information Overview Data | Metric | Date | | :--- | :--- | | Interim Results Announcement | August 25 | | Ex-dividend Date for Interim and Special Dividends | September 19 | | Closure of Register of Members | September 23 to September 25 | | Record Date for Interim and Special Dividends | September 25 | | Payment Date for Interim and Special Dividends | October 10 | Chairman's Report [Financial Performance Overview](index=5&type=section&id=%E8%B4%A2%E5%8A%A1%E4%B8%9A%E7%BB%A9%E6%A6%82%E8%A7%88) In the first half of 2025, China Overseas Property Holdings Limited's revenue increased by **3.7%** to **RMB 7,089.5 million**, and operating profit grew by **3.4%** to **RMB 1,029.7 million**; profit attributable to ordinary equity holders increased by **4.3%** to **RMB 769.1 million**, with basic and diluted earnings per share at **RMB 23.42 cents**; the Board announced an interim dividend of **HKD 9.0 cents per share** (a **5.9% YoY increase**) and a special dividend of **HKD 1.0 cent per share** to celebrate the 10th anniversary of listing Financial Performance Overview Data | Metric | first half of 2025 (RMB million) | first half of 2024 (RMB million) | YoY Change | | :--- | :--- | :--- | :--- | | Revenue | **7,089.5** | **6,838.4** | **+3.7%** | | Operating Profit | **1,029.7** | **995.4** | **+3.4%** | | Profit Attributable to Ordinary Equity Holders | **769.1** | **737.5** | **+4.3%** | | Basic and Diluted Earnings Per Share | **RMB 23.42 cents** | **RMB 22.45 cents** | **+4.3%** | | Interim Dividend | **HKD 9.0 cents per share** | **HKD 8.5 cents per share** | **+5.9%** | | Special Dividend | **HKD 1.0 cent per share** | - | - | - Average Return on Equity decreased from **33.8%** in 2024 to **28.8%** in 2025[11](index=11&type=chunk) [Macroeconomic and Industry Outlook](index=5&type=section&id=%E5%AE%8F%E8%A7%82%E7%BB%8F%E6%B5%8E%E4%B8%8E%E8%A1%8C%E4%B8%9A%E5%B1%95%E6%9C%9B) Despite insufficient global economic growth momentum and frequent geopolitical conflicts, China's economy maintained stable growth and high-quality development; the real estate market is in an adjustment period, and the property management industry faces intensified competition, but policy support for urban renewal, smart property management, the silver economy, and green and low-carbon initiatives provides new growth opportunities for quality property management companies - Insufficient global economic growth momentum, protectionism, and unilateralism are impacting the international economic order, compounded by frequent geopolitical conflicts[12](index=12&type=chunk) - China's economy has a solid foundation, numerous advantages, strong resilience, and great potential; the momentum of stable economic growth remains unchanged, and high-quality development is steadily advancing[12](index=12&type=chunk) - The real estate market is still in an adjustment process, the property management industry is under overall pressure, market competition is intensifying, and the industry is shifting from incremental growth to existing stock, returning to its service essence[12](index=12&type=chunk) - Policies such as diversified services, smart property management, the silver economy, and green and low-carbon initiatives provide new opportunities for property management companies to expand into new businesses and create new growth points[12](index=12&type=chunk) - The government encourages property management companies to participate in urban renewal and long-term operational management after the renovation of old residential areas, providing strong support for property management companies to undertake urban operation services[14](index=14&type=chunk) [Strategic Planning and Brand Building](index=6&type=section&id=%E6%88%98%E7%95%A5%E8%A7%84%E5%88%92%E4%B8%8E%E5%93%81%E7%89%8C%E5%BB%BA%E8%AE%BE) 2025 marks the final year of the Group's '14th Five-Year Plan' strategic blueprint, with China Overseas Property aiming for 'China Overseas-style Property Management Modernization' as its mid-to-long-term strategic goal, pursuing a synergistic balance of 'service-oriented, efficiency-first, and scale-based'; the Company positions itself as an explorer of urban operation services, a promoter of full-产业链 development, a guardian of a better life, and a builder of co-construction, co-governance, and shared benefits, proposing the brand proposition of 'Good Times, Good Property, Good Community' ('Three Goods') to enhance service quality and customer experience - 2025 marks the final year of the Group's '14th Five-Year Plan' strategic blueprint, with China Overseas Property, as a leading property management company, further solidifying its leading position[15](index=15&type=chunk) - Adopting 'China Overseas-style Property Management Modernization' as its mid-to-long-term strategic goal, solidifying the foundation of high-quality development and market-oriented approach[15](index=15&type=chunk) - Forming four core role definitions centered on serving a better life: explorer of urban operation services, promoter of full-产业链 development, guardian of a better life, and builder of co-construction, co-governance, and shared benefits[15](index=15&type=chunk) - Proposing the brand proposition of 'Good Times, Good Property, Good Community' ('Three Goods'), reflecting the ability to manage properties, serve people, and foster a sense of ownership[16](index=16&type=chunk) [Business Development and Innovation](index=7&type=section&id=%E4%B8%9A%E5%8A%A1%E6%8B%93%E5%B1%95%E4%B8%8E%E5%88%9B%E6%96%B0) China Overseas Property continues to deeply cultivate residential, non-residential, and urban service sectors, focusing on community space operations, real estate value-added services, and community living services as three major operating models, providing diversified urban convenience services around the full life cycle needs of community families; the Company also seizes the main theme of high-quality development, focusing on four major business segments: real estate services, smart operation and maintenance, energy management, and material procurement, and successfully expanded into overseas markets by signing an execution agreement for the urban operation project in the Central Business District of Egypt's New Administrative Capital - Based on property management service contracts, continuously deepening the quality and efficiency of basic services in residential, non-residential, and urban service sectors, and continuously improving project execution quality[17](index=17&type=chunk) - Focusing on community space operations, real estate value-added services, and community living services as three major operating models, providing diversified urban convenience services around the full life cycle needs of community families[17](index=17&type=chunk) - Seizing the main theme of high-quality development, focusing on strategic emerging industries as development engines, and concentrating on four major business segments: real estate services, smart operation and maintenance, energy management, and material procurement[17](index=17&type=chunk) - Breakthrough progress in overseas market expansion, with the signing of an execution agreement for the urban operation project in the Central Business District of Egypt's New Administrative Capital[19](index=19&type=chunk) - Building a unique 'one trunk, multiple branches, multi-industry synergy' business logic for China Overseas Property, achieving value preservation and appreciation of buildings in managed projects[19](index=19&type=chunk) [Market Position and Benchmark Projects](index=9&type=section&id=%E5%B8%82%E5%9C%BA%E5%9C%B0%E4%BD%8D%E4%B8%8E%E6%A0%87%E6%9D%86%E9%A1%B9%E7%9B%AE) The Group has entered **163** cities, has **37,902** employees, manages **2,301** property projects, and serves an area exceeding **436 million square meters**; the Company focuses on non-residential and urban services, successfully winning bids for multiple key universities, top-tier hospitals, and transportation hub projects; in Hong Kong and Macau, China Overseas Property firmly holds the leading position as the largest property management service provider and the largest Chinese-funded property service enterprise, achieving **100%** coverage of fresh food wholesale markets under the Hong Kong Agriculture, Fisheries and Conservation Department; the Company continues to build a 'Three Highs, Three Sustainables' benchmark project service system to enhance service levels - The Group has entered **163** cities, has **37,902** employees, manages **2,301** property projects, and serves an area exceeding **436 million square meters**[21](index=21&type=chunk) - Expanding high-quality incremental projects, focusing on non-residential and urban services, successfully winning bids for multiple key universities and top-tier hospitals, and implementing several urban service projects[21](index=21&type=chunk) - Firmly holds the leading position as Hong Kong's largest property management service provider and the largest Chinese-funded property service enterprise in Hong Kong and Macau, ranking first in Hong Kong's property management market share[23](index=23&type=chunk) - Achieved **100%** coverage of fresh food wholesale markets under the Hong Kong Agriculture, Fisheries and Conservation Department, and cumulatively served **19** public hospitals in Hong Kong[21](index=21&type=chunk) - Continuously building the China Overseas benchmark project service system, having cumulatively evaluated and certified **66** projects in **48** cities nationwide, featuring 'Three Highs' (high-quality operational capability, high industry and customer recognition, high proportion of new technology application) and 'Three Sustainables' (replicable experience, upgradable technology and equipment, green and renewable environmental protection)[23](index=23&type=chunk) [Corporate Responsibility and Future Outlook](index=11&type=section&id=%E4%BC%81%E4%B8%9A%E8%B4%A3%E4%BB%BB%E4%B8%8E%E6%9C%AA%E6%9D%A5%E5%B1%95%E6%9C%9B) China Overseas Property serves over **100** Fortune Global 500 enterprise clients, has received numerous industry accolades and strong recognition from the capital market, and actively practices sustainable development, integrating ESG into its operations; looking ahead, the Company will celebrate its 10th anniversary of listing, planning to accelerate expansion into urban service sectors, promote digital transformation and smart property management construction, driving the transformation of traditional property management towards modern services through technological innovation and cross-industry collaboration, and comprehensively enhancing its core competitiveness - Serving over **100** Fortune Global 500 enterprise clients, received numerous industry accolades such as '2025 China Property Management Listed Company Leading Enterprise — High-Quality Development' and '2025 China Property Service Capability Top 100 Enterprise TOP 1'[24](index=24&type=chunk) - Ranked among the constituent stocks of the MSCI China All Shares Small Cap Index, continuously included in the Shanghai-Hong Kong Stock Connect and Shenzhen-Hong Kong Stock Connect lists, and the Hang Seng Property Management & Services Index, receiving strong recognition from the capital market[24](index=24&type=chunk) - Adhering to and practicing sustainable development philosophy, promoting ESG integration throughout all aspects of operations through continuous project renovation, and received honors such as '2025 China Property ESG Sustainable Development Leading Enterprise'[24](index=24&type=chunk) - In the future, it will accelerate expansion into urban service sectors, continuously improve project operation and management capabilities, expedite digital transformation and smart property management construction, and strengthen risk prevention and mitigation capabilities[27](index=27&type=chunk) - Achieving 'China Overseas-style Property Management Modernization' through 'technological innovation and cross-industry collaboration', comprehensively promoting the modernization of ecosystem collaboration, service systems, technology application, brand building, talent teams, and fundamental management[28](index=28&type=chunk) Management Discussion and Analysis [Business Review](index=14&type=section&id=%E4%B8%9A%E5%8A%A1%E5%9B%9E%E9%A1%BEM) In the first half of 2025, the Group's GFA under management modestly increased by **5.0 million square meters** to **436.1 million square meters**, with **84.0%** of new orders from independent third parties; overall revenue increased YoY by **3.7%** to **RMB 7,089.5 million**, primarily driven by property management services, but residential and non-residential value-added services declined due to weak consumption; through strict cost control, gross profit margin improved to **17.0%**, operating profit increased by **3.4%** to **RMB 1,029.7 million**, but net impairment losses on financial and contract assets increased Business Review Data | Metric | first half of 2025 (RMB million) | first half of 2024 (RMB million) | YoY Change | | :--- | :--- | :--- | :--- | | New Contracted Area | **31.8 million square meters** | - | - | | Of which from Independent Third Parties | **84.0%** | - | - | | Total New Contracts Value | RMB **2,257.8 million** | - | - | | Area Withdrawn | **26.8 million square meters** | - | - | | Net Increase in GFA Under Management | **5.0 million square meters** | - | - | | GFA Under Management at Period End | **436.1 million square meters** | - | - | Business Review Data | Revenue Type | first half of 2025 (RMB thousand) | first half of 2024 (RMB thousand) | YoY Change | | :--- | :--- | :--- | :--- | | Overall Revenue | **7,089,474** | **6,838,434** | **+3.7%** | | Property Management Services | **5,596,379** | **5,165,905** | **+8.3%** | | Non-Residential Value-Added Services | **857,815** | **911,541** | **-5.9%** | | Residential Value-Added Services | **607,989** | **687,441** | **-11.6%** | | Parking Space Sales Business | **27,291** | **73,547** | **-62.9%** | Business Review Data | Metric | first half of 2025 (RMB thousand) | first half of 2024 (RMB thousand) | YoY Change | | :--- | :--- | :--- | :--- | | Direct Operating Costs | **5,887,056** | **5,690,146** | **+3.5%** | | Gross Profit | **1,202,418** | **1,148,288** | **+4.7%** | | Gross Profit Margin | **17.0%** | **16.8%** | **+0.2%** | | Operating Profit | **1,029,749** | **995,442** | **+3.4%** | | Profit Attributable to Ordinary Equity Holders of the Company | **769,147** | **737,524** | **+4.3%** | - Selling and administrative expenses reduced by **18.6%**, primarily through headcount control and effective reduction of other administrative expenses under a lean management structure[40](index=40&type=chunk) - Net impairment losses on financial and contract assets increased compared to the same period last year, primarily due to a more prudent impairment rate of **8.5%** adopted for trade receivables based on aging (2024: **6.7%**)[40](index=40&type=chunk) [Segment Information](index=18&type=section&id=%E5%88%86%E9%83%A8%E8%B5%84%E6%96%99) The Group's business is divided into four segments: property management services, non-residential value-added services, residential value-added services, and parking space sales business; both revenue and gross profit from property management services achieved growth, with gross profit margin slightly improving; revenue from non-residential value-added services decreased, and gross profit margin slightly narrowed; revenue from residential value-added services decreased, but due to increased business volume in high-margin community asset management services, gross profit margin increased; both revenue and profit from parking space sales business significantly decreased [Property Management Services](index=18&type=section&id=%E7%89%A9%E4%B8%9A%E7%AE%A1%E7%90%86%E6%9C%8D%E5%8A%A1) In the first half of 2025, revenue from property management services increased by **8.3%** to **RMB 5,596.4 million**, accounting for **78.9%** of total revenue; GFA under management increased to **436.1 million square meters**, with independent third-party and non-residential projects accounting for **39.1%** and **27.4%**, respectively; through strict cost control, lump sum basis gross profit margin slightly increased to **13.6%**, commission basis gross profit margin remained at **100.0%**, overall gross profit margin was **15.5%**, and segment gross profit increased by **8.6%** to **RMB 866.5 million** Property Management Services Data | Metric | June 30, 2025 (million square meters) | Proportion | December 31, 2024 (million square meters) | Proportion | | :--- | :--- | :--- | :--- | :--- | | Total GFA Under Management | **436.1** | **100.0%** | **431.1** | **100.0%** | | From Independent Third Parties | **170.6** | **39.1%** | **169.8** | **39.4%** | | Non-Residential Projects | **119.3** | **27.4%** | **123.6** | **28.7%** | | Residential Projects | **316.8** | **72.6%** | **307.5** | **71.3%** | Property Management Services Data | Revenue Type | first half of 2025 (RMB thousand) | Proportion | first half of 2024 (RMB thousand) | Proportion | YoY Change | | :--- | :--- | :--- | :--- | :--- | :--- | | Property Management Services Revenue | **5,596,379** | **78.9%** | **5,165,905** | **75.5%** | **+8.3%** | | Lump Sum Basis Revenue | **5,473,133** | **97.8%** | **5,049,756** | **97.8%** | **+8.4%** | | Commission Basis Revenue | **123,246** | **2.2%** | **116,149** | **2.2%** | **+6.1%** | Property Management Services Data | Contract Type | June 30, 2025 (million square meters) | Proportion | December 31, 2024 (million square meters) | Proportion | | :--- | :--- | :--- | :--- | :--- | | Lump Sum Basis | **361.6** | **82.9%** | **357.1** | **82.8%** | | Commission Basis | **74.5** | **17.1%** | **74.0** | **17.2%** | Property Management Services Data | Metric | first half of 2025 (RMB thousand) | Gross Profit Margin | first half of 2024 (RMB thousand) | Gross Profit Margin | YoY Change | | :--- | :--- | :--- | :--- | :--- | :--- | | Property Management Services Gross Profit | **866,507** | **15.5%** | **797,917** | **15.4%** | **+8.6%** | | Lump Sum Basis Gross Profit | **743,261** | **13.6%** | **681,768** | **13.5%** | **+9.0%** | | Commission Basis Gross Profit | **123,246** | **100.0%** | **116,149** | **100.0%** | **+6.1%** | - Profit from property management services segment increased by **4.4%** to **RMB 751.5 million**[53](index=53&type=chunk) [Non-Residential Value-Added Services](index=23&type=section&id=%E9%9D%9E%E4%BD%8F%E6%88%B7%E5%A2%9E%E5%80%BC%E6%9C%8D%E5%8A%A1) Revenue from non-residential value-added services decreased by **5.9%** to **RMB 857.8 million**, accounting for **12.1%** of total revenue; the downturn in the mainland real estate industry led to reduced demand for pre-delivery services, sales inspection services, and consultancy services, but increased maintenance and engineering services for large government projects in Hong Kong and Macau mitigated the decline; gross profit margin slightly decreased to **13.4%**, and segment gross profit decreased by **10.2%** to **RMB 115.1 million** Non-Residential Value-Added Services Data | Service Type | first half of 2025 (RMB thousand) | first half of 2024 (RMB thousand) | YoY Change | | :--- | :--- | :--- | :--- | | Total Revenue | **857,815** | **911,541** | **-5.9%** | | Engineering Services | **560,645** | **491,667** | **+14.0%** | | Pre-delivery Services | **242,354** | **299,133** | **-19.0%** | | Sales Inspection Services | **46,811** | **87,139** | **-46.3%** | | Consultancy Services | **8,005** | **33,602** | **-76.2%** | - Gross profit margin was **13.4%** (2024: **14.1%**), primarily reflecting the impact of lower gross profit margins from engineering projects in Hong Kong and Macau due to changes in business mix[57](index=57&type=chunk) - Segment gross profit decreased by **10.2%** to **RMB 115.1 million**, and segment profit decreased by **5.4%** to **RMB 84.2 million**[57](index=57&type=chunk) [Residential Value-Added Services](index=24&type=section&id=%E4%BD%8F%E6%88%B7%E5%A2%9E%E5%80%BC%E6%9C%8D%E5%8A%A1) Revenue from residential value-added services decreased by **11.6%** to **RMB 608.0 million**, accounting for **8.6%** of total revenue, primarily affected by weak domestic consumption; despite the decrease in revenue, but due to increased business volume in high-margin community asset management services, gross profit margin increased to **35.2%** (2024: **30.2%**), driving an increase in segment gross profit by **2.9%** to **RMB 213.8 million** Residential Value-Added Services Data | Service Type | first half of 2025 (RMB thousand) | first half of 2024 (RMB thousand) | YoY Change | | :--- | :--- | :--- | :--- | | Total Revenue | **607,989** | **687,441** | **-11.6%** | | Community Asset Management Services | **330,390** | **310,710** | **+6.3%** | | Home Living Services and Commercial Services Operations | **277,599** | **376,731** | **-26.3%** | - Gross profit margin increased to **35.2%** (2024: **30.2%**), primarily attributable to increased business volume in high-margin community asset management services[59](index=59&type=chunk) - Segment gross profit increased by **2.9%** to **RMB 213.8 million**, and segment profit increased by **2.2%** to **RMB 202.7 million**[59](index=59&type=chunk)[60](index=60&type=chunk) [Parking Space Sales Business](index=26&type=section&id=%E5%81%9C%E8%BD%A6%E4%BD%8D%E4%B9%B0%E5%8D%96%E4%B8%9A%E5%8A%A1) Revenue from parking space sales business significantly decreased by **62.9%** to **RMB 27.3 million**, primarily due to a decrease in the number of parking spaces sold from **1,254** units in 2024 to **365** units in 2025; segment profit also decreased accordingly to **RMB 7.0 million** Parking Space Sales Business Data | Metric | first half of 2025 | first half of 2024 | YoY Change | | :--- | :--- | :--- | :--- | | Number of Parking Spaces Sold | **365** units | **1,254** units | **-70.9%** | | Segment Revenue | RMB **27.3 million** | RMB **73.5 million** | **-62.9%** | | Segment Profit | RMB **7.0 million** | RMB **13.9 million** | **-49.6%** | [Liquidity, Financial Resources, and Debt Structure](index=26&type=section&id=%E6%B5%81%E5%8A%A8%E8%B5%84%E9%87%91%E3%80%81%E8%B4%A2%E6%94%BF%E8%B5%84%E6%BA%90%E5%8F%8A%E5%80%BA%E5%8A%A1%E7%BB%93%E6%9E%84) The Group adopts a prudent financial management policy; as of June 30, 2025, net current assets increased to **RMB 4,922.5 million**; bank balances and cash slightly decreased by **2.4%** to **RMB 5,666.1 million**, of which RMB accounted for **89.6%**; short-term unsecured bank borrowings remained at **RMB 50.0 million**, with a weighted average annual interest rate of **2.7%** Liquidity, Financial Resources, and Debt Structure Data | Metric | June 30, 2025 (RMB million) | December 31, 2024 (RMB million) | Change | | :--- | :--- | :--- | :--- | | Net Current Assets | **4,922.5** | **4,476.4** | **+10.0%** | | Bank Balances and Cash | **5,666.1** | **5,803.5** | **-2.4%** | | Short-term Unsecured Bank Borrowings | **50.0** | **50.0** | **0%** | | Weighted Average Annual Interest Rate on Borrowings | **2.7%** | - | - | - Of the bank balances and cash, RMB accounted for **89.6%**, while HKD/MOP accounted for **10.4%**[63](index=63&type=chunk) [Exchange Rate Fluctuation Risk](index=27&type=section&id=%E6%B1%87%E7%8E%87%E6%B3%A2%E5%8A%A8%E9%A3%8E%E9%99%A9) The Group's primary property management business in China uses RMB for settlement, forming a natural hedging mechanism; although currency translation for Hong Kong and Macau operations may affect net assets and financial performance expressed in RMB, the Group currently does not enter into or trade financial instruments for hedging purposes; the Company will closely monitor exchange rate fluctuations and consider hedging policies when appropriate - The Group's primary property management business in China uses RMB as the settlement currency for revenue, receivables, payables, and expenses, thus having a natural hedging mechanism[64](index=64&type=chunk) - Exchange rate fluctuations may still affect net assets and financial performance expressed in RMB due to currency translation for Hong Kong and Macau operations after consolidation[64](index=64&type=chunk) - Currently, the Group does not enter into or trade financial instruments, including derivative financial instruments, for hedging or speculative purposes[64](index=64&type=chunk) - The Group will closely monitor exchange rate fluctuations and consider appropriate currency hedging policies to mitigate significant exchange rate risks[64](index=64&type=chunk) [Capital Expenditure, Commitments, and Contingent Liabilities](index=27&type=section&id=%E8%B5%84%E6%9C%AC%E5%BC%80%E6%94%AF%E3%80%81%E6%89%BF%E6%93%94%E5%8F%8A%E6%88%96%E7%84%B6%E8%B4%9F%E5%80%BA) In the first half of 2025, the Group's capital expenditure was **RMB 78.1 million**, primarily for additions to renovations, vehicles, machinery and equipment, furniture, fixtures, office equipment, right-of-use assets under lease, and software systems; as of June 30, 2025, capital commitments were **RMB 8.2 million**, primarily related to capital investment in joint ventures and acquisition of software systems; contingent liabilities include counter-indemnities for performance guarantees provided to fellow subsidiaries and banks of approximately **RMB 366.5 million**, and corporate guarantees provided to fellow subsidiaries of **RMB 100.0 million** Capital Expenditure, Commitments, and Contingent Liabilities Data | Item | first half of 2025 (RMB thousand) | first half of 2024 (RMB thousand) | | :--- | :--- | :--- | | Total Capital Expenditure | **78,147** | **103,557** | | Additions to Property, Plant and Equipment | **25,141** | **18,042** | | Additions to Intangible Assets | **25,878** | **47,748** | | Right-of-Use Assets under Lease | **27,128** | **37,767** | Capital Expenditure, Commitments, and Contingent Liabilities Data | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Total Capital Commitments | **8,199** | **8,869** | | Capital Investment in Joint Ventures | **2,550** | **2,550** | | Intangible Asset Additions

Group 1 - The core viewpoint of the article is that Morgan Stanley reports initial signs of stability in the performance of mainland property management stocks in the first half of the year, with expectations for rapid growth in the second half [1] - The firm forecasts profit growth for the industry to be 4%, 9%, and 11% year-on-year for the years 2025 to 2027, respectively [1] - It is believed that issues related to property developers will gradually dissipate after this year and will no longer be a major obstacle for the industry [1] Group 2 - Future growth drivers for the industry are expected to come from third-party projects and value-added services unrelated to property developers [1] - With the normalization of growth, shareholder returns will become the basis for valuation [1] - The rating for Wanwu Cloud (02602) has been upgraded from "in line with the market" to "overweight," with a target price increase from HKD 22.51 to HKD 29.21, reflecting the company's turnaround from loss to profit and attractive dividend yield [1] Group 3 - Some individual stocks have moderate profit outlooks and lack catalysts for revaluation, leading to adjustments in ratings for China Overseas Property (02669), Country Garden Services (06098), and China National Trade (600007.SH) to "in line with the market" [1] - The rating for Sunac Services (01516) has been downgraded to "underweight," with a target price reduction from HKD 1.72 to HKD 1.01, due to weak profit and dividend outlook [1]

Group 1 - The core viewpoint of the article indicates that the performance of mainland property management stocks showed initial signs of stability in the first half of the year, with expectations for rapid industry growth in the second half [1] - The projected annual profit growth for the industry from 2025 to 2027 is estimated at 4%, 9%, and 11% respectively [1] - Future growth drivers for the industry are expected to come from third-party projects and value-added services from non-developers, with shareholder returns becoming the basis for valuation as growth normalizes [1] Group 2 - Morgan Stanley upgraded the rating of Wanwu Cloud from "in line with the market" to "overweight," raising the target price from HKD 22.51 to HKD 29.21, reflecting the company's turnaround from loss to profit and attractive dividend yield [1] - Some individual stocks have moderate profit outlooks and lack catalysts for revaluation, leading to adjustments in ratings for China Overseas Property, Country Garden Services, and China National Chemical Corporation to "in line with the market" [1] - The rating for Sunac Services was downgraded to "underweight," with the target price reduced from HKD 1.72 to HKD 1.01, due to weak profit and dividend outlook [1]

Investment Rating - The report maintains a "Positive" rating for the real estate and property management sectors [4][5]. Core Insights - The report highlights that the broad housing demand in China has bottomed out, but the price and volume have not entered a positive cycle as expected. The real estate industry faces challenges from weakened household balance sheets and policy constraints requiring high-quality development without overall leverage [4][5][6]. - The "Good House" policy is seen as a potential breakthrough strategy that could lead to a fivefold positive resonance in core cities, gradually achieving a recovery driven by structural improvements [4][5][6]. Summary by Sections 1. Industry Status: Challenges in Real Estate Fundamentals and Policy Constraints - Broad housing demand is estimated to have bottomed out, with total transactions stabilizing around 1.4 billion square meters [15][22]. - New home sales have decreased from 1.57 billion square meters in 2021 to an estimated 0.81 billion square meters in 2024, a cumulative decline of 48%, while second-hand home sales have increased by 64% during the same period [15][22]. - The key issue in the real estate sector is not demand but purchasing power, with a trend of consumption downgrade evident in the market [22][31]. 2. Breakthrough Strategy: "Good House" Policy Leading to Fivefold Positive Resonance - The "Good House" policy aims to create new products and markets, enhancing the price system under conditions of supply scarcity and relatively abundant demand [4][6]. - The report identifies five positive resonances: policy strength of "Good House," urban renewal, housing consumption upgrade, wealth reallocation under capital controls, and stock market strength [4][6]. - Potential benefits include expected further reductions in mortgage rates and loosening of purchase restrictions, which could drive improvements in core cities [4][6]. 3. Core Cities: Hong Kong Has Reversed, Shanghai and Other Core Cities Nearing Bottom - Hong Kong's real estate market has experienced a turnaround due to four positive factors, including talent policies and stock market gains [4][6]. - Other core cities like Shanghai, Beijing, and Shenzhen are also showing signs of improvement, with Shanghai expected to be the next city to see a bottoming out [4][6]. 4. Investment Analysis Opinion: "Good House" as a Breakthrough Strategy - The report emphasizes that the "Good House" policy could lead to a structural recovery in the real estate market, benefiting quality real estate companies positioned in core cities [4][5][6]. - Recommended companies include those with strong product capabilities and undervalued recovery potential, as well as second-hand housing intermediaries and property management firms [4][5].

Investment Rating - The report maintains an "Overweight" rating for the real estate industry [4][6]. Core Insights - Shenzhen has followed Beijing and Shanghai in relaxing purchase restrictions, with a more significant impact expected compared to the latter cities [11]. - The overall performance of the real estate sector has lagged behind the broader market, with the Shenwan Real Estate Index down 1.5% this week, ranking 24th among 31 sectors [12]. - New home sales in 30 cities totaled 1.488 million square meters this week, reflecting a 17.9% decrease month-on-month and an 11.2% decrease year-on-year [23]. - The report emphasizes the importance of policy-driven changes in the real estate market, suggesting that the current policy environment is more robust than in previous cycles [4]. Summary by Sections Real Estate Development - Shenzhen's new policy has narrowed the scope of purchase restrictions, with only specific areas remaining under strict limits [11]. - The report anticipates that the marginal effects of Shenzhen's new policy will be more pronounced than those in Beijing and Shanghai [11]. Market Review - The Shenwan Real Estate Index has decreased by 1.5%, underperforming the CSI 300 Index by 0.67 percentage points [12]. - A total of 49 stocks in the real estate sector increased in value this week, while 62 stocks declined [12]. New Home and Second-Hand Home Transactions - New home sales in first-tier cities increased by 4.4% month-on-month, while second-tier cities saw a 23.3% decrease [23]. - Second-hand home transactions in 14 sample cities totaled 1.719 million square meters, with a year-on-year increase of 13.0% [34]. Credit Bonds - Eight credit bonds were issued by real estate companies this week, totaling 8.69 billion yuan, with a net financing amount of -1.24 billion yuan [42]. - The majority of bonds issued were rated AAA, indicating a strong credit quality among issuers [42]. Investment Recommendations - The report suggests focusing on real estate stocks due to the expected policy-driven recovery and the early-cycle nature of the real estate market [4]. - Recommended companies include major players in both A-shares and H-shares, as well as local state-owned enterprises and property management firms [4].

Core Viewpoint - Goldman Sachs reports that China Overseas Property (02669) outperforms its peers due to a more stable business outlook and strong support from its state-owned parent company, China Overseas Development (00688), but its underperformance relative to the market is attributed to ongoing headwinds in the real estate market, which continue to drag down the property management industry's business outlook and valuations, as well as slowing profit and profit growth for China Overseas Property, coupled with low visibility on shareholder returns [1] Group 1 - The average forecast for net profit from 2025 to 2027 has been lowered by 11% to reflect an average revenue forecast reduction of 13% [1] - Revenue is expected to grow at a compound annual growth rate (CAGR) of 5% from 2025 to 2027 [1] - The forecasts for free cash flow and operating cash flow for 2025 to 2027 have been reduced by an average of 16% and 13%, respectively [1] Group 2 - The target price for China Overseas Property has been adjusted down from HKD 6.1 to HKD 5 [1] - The rating for the company has been downgraded from "Buy" to "Sell" [1]

Group 1 - The core viewpoint of the report is that China Overseas Property (02669) is performing better than its peers due to a more stable business outlook and strong support from its state-owned parent company, China Overseas Development (00688) [1] - The underperformance relative to the market is attributed to ongoing headwinds in the real estate market, which continue to drag down the business outlook and valuation of the property management industry [1] - The company's own profit and profit growth are slowing, and there is low visibility on shareholder return growth, leading to an average downward revision of 11% in net profit forecasts for 2025 to 2027 [1] Group 2 - Revenue forecasts have been reduced by an average of 13%, with an expected compound annual growth rate of 5% in revenue from 2025 to 2027 [1] - Free cash flow and operating cash flow forecasts for 2025 to 2027 have been lowered by an average of 16% and 13%, respectively [1] - The target price has been adjusted down from HKD 6.1 to HKD 5, and the rating has been downgraded from "Buy" to "Sell" [1]

Group 1 - Goldman Sachs reports that China Overseas Property has a more stable business outlook and solid support from its state-owned parent company, outperforming peers [1] - The underperformance of China Overseas Property relative to the market is attributed to ongoing headwinds in the real estate market, which continue to drag down the property management sector's business outlook and valuations [1] - The company's own profit and profit growth are slowing, coupled with low visibility on shareholder return growth [1] Group 2 - Goldman Sachs has lowered its average net profit forecast for China Overseas Property for 2025-2027 by 11%, reflecting an average revenue forecast reduction of 13% [1] - The expected compound annual growth rate for revenue from 2025 to 2027 is projected at 5% [1] - The forecasts for free cash flow and operating cash flow for 2025-2027 have been reduced by an average of 16% and 13%, respectively [1] Group 3 - The target price for China Overseas Property has been downgraded from HKD 6.1 to HKD 5 [1] - The rating has been changed from "Buy" to "Sell" [1]

股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 截至月份: 2025年8月31日 狀態: 新提交 公司名稱: 中海物業集團有限公司 呈交日期: 2025年9月1日 I. 法定/註冊股本變動 | 1. 股份分類 | 普通股 | 股份類別 | 不適用 | | 於香港聯交所上市 (註1) | | 是 | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 02669 | 說明 | | | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | | 法定/註冊股本 | | | 上月底結存 | | | 30,000,000,000 | HKD | | 0.001 | HKD | | 30,000,000 | | 增加 / 減少 (-) | | | | | | | HKD | | | | 本月底結存 | | | 30,000,000,000 | HKD | | 0.001 | HKD | | 30,000,000 | 本月底法定/註冊股本總額： HKD 30, ...

Core Viewpoint - The company's 1H25 performance slightly underperformed market expectations, with revenue and net profit both growing by 4% year-on-year, reaching 7.09 billion yuan and 770 million yuan respectively, primarily due to a decline in other income and an increase in impairment provisions [1][2] Financial Performance - Revenue for 1H25 increased by 4% to 7.09 billion yuan, while net profit also rose by 4% to 770 million yuan, slightly below market expectations [1] - The interim dividend per share is set at 0.1 HKD, with a payout ratio of 40%, compared to 36% in 2024 and 35% in 1H24 [1] Business Development - The company maintained stable external expansion, with a total annual contract value of approximately 980 million yuan for 1H25, with over 60% from urban operations, remaining roughly flat year-on-year [1] - The average annual contract value for projects worth over 10 million yuan increased by 17%, indicating a steady improvement in the quality of external expansion [1] Value-Added Services - Overall, value-added services faced pressure, with both residential and non-residential service revenues declining; residential services saw a 12% drop to 610 million yuan, while community asset operation services grew by 6% [2] - Engineering services, however, maintained double-digit growth, indicating resilience in this segment [2] Collection and Management - The overall collection rate showed slight improvement, with the current collection rate increasing year-on-year, while the previous period's collection rate saw a minor decline [2] Future Outlook - The company anticipates a stable or slightly improved operational trend in the second half of the year, as the scale of inefficient projects has returned to reasonable levels, reducing future pressure [2] - Increased efforts in asset operation services and certain home life services are expected to support business progress in the latter half of the year [2] Profit Forecast and Valuation - The profit forecasts for 2025 and 2026 have been revised down by 5% and 6% to 1.6 billion yuan and 1.71 billion yuan respectively, with expected year-on-year growth of 6% and 7% [2] - The company maintains an outperform rating and a target price of 6.5 HKD, implying a 22% upside based on a 12x 2025 P/E ratio, while currently trading at a 10x 2025 P/E ratio [2]