Investment Rating - The investment rating for the real estate industry is "Positive" (maintained) [1] Core Insights - The property management industry is experiencing a slowdown in growth, with a focus on improving project quality as companies exit low-margin projects and enhance service quality [5][8] - The REITs market is expected to continue expanding, driven by policy support and the attractiveness of high-dividend assets in a declining interest rate environment [7][8] Summary by Sections Property Management Industry Overview - As of the end of 2024, the property management industry in China managed a total area of 314.1 billion square meters, reflecting a year-on-year growth of 4% [5][16] - The average growth rate of managed area for the top 100 property management companies has decreased to 2%, indicating a trend of slowing expansion [16][21] Performance and Financials - Revenue growth for the top property management companies remains steady but has declined to single digits, with profitability under pressure due to increased competition and declining real estate sales [44][46] - The average cash on hand for sample companies remains robust, with a stable dividend payout ratio, indicating financial resilience [58][60] Development Opportunities in 2025 - The industry is expected to benefit from three main directions: enhancing service quality under the "Good House, Good Service" concept, leveraging AI for operational efficiency, and capitalizing on urban renewal opportunities driven by housing pension policies [6][8][89] REITs Market Trends - The REITs market has shown significant structural differentiation, with anti-cyclical sectors performing well while cyclical sectors face challenges. Future growth is anticipated in areas supported by policy, such as elderly care and new infrastructure [7][8][20]

Financial Performance - Revenue for the year 2024 reached RMB 3,594,714,000, representing an increase of 28.0% compared to 2023[14] - Gross profit for 2024 was RMB 835,368,000, with a growth rate of 20.0% from the previous year[14] - Net profit for the year 2024 amounted to RMB 553,502,000, reflecting a 10.0% increase from 2023[14] - The gross profit margin for 2024 decreased to 23.2%, down from 24.8% in 2023[14] - The net profit margin for 2024 was 15.4%, a decline from 17.9% in 2023[14] - Basic and diluted earnings per share for 2024 were RMB 1.98, an increase of 11.0% compared to 2023[14] - Profit attributable to equity shareholders for 2024 was RMB 546,529,000, marking a 11.0% increase from 2023[14] - The company reported a profit increase of 20.1% in 2023 compared to 2022[14] Assets and Liabilities - Cash and cash equivalents decreased to RMB 1,455,384,000 in 2023 from RMB 1,949,891,000 in 2022, representing a decline of approximately 25.4%[18] - Total assets increased to RMB 4,054,902,000 in 2023, up from RMB 2,993,992,000 in 2022, marking a growth of about 35.4%[18] - Current liabilities rose to RMB 2,491,664,000 in 2023, compared to RMB 1,680,801,000 in 2022, reflecting an increase of approximately 48.2%[18] - Total equity attributable to equity shareholders increased to RMB 1,488,447,000 in 2023, up from RMB 1,246,254,000 in 2022, indicating a growth of around 19.4%[18] - Current assets as of December 31, 2024, were RMB3,082.0 million, an 18.3% increase from RMB2,605.2 million as of December 31, 2023[137] - Cash and cash equivalents decreased by 38.8% to RMB890.7 million from RMB1,455.4 million in 2023, mainly due to dividend payments and increased bank deposits[139] - Trade and other payables increased by 19.1% to RMB1,009.0 million from RMB847.2 million in 2023, also due to business expansion[158] Market Expansion and Strategy - The company plans to continue expanding its market presence and investing in new technologies to drive future growth[12] - The Group aims to enhance its value-added services system with a focus on high-quality and high-value services for homeowners[35] - The Group aims to expand its market share in the Yangtze River Delta region, leveraging its existing service management systems and standards[88] - The Group's expansion strategy focuses on cultivating the Yangtze River Delta and radiating to the whole country, enhancing both scale and reputation[30] - The Group is actively expanding into various urban service sectors to enhance its comprehensive service capabilities[89] Service Quality and Customer Engagement - The Group achieved a customer satisfaction ranking at the top for 13 consecutive years in Hangzhou, according to the China Index Academy[24] - The new customer service intelligent system launched in 2024 enhances communication with owners and ensures timely responses to their concerns[26] - The Group's service quality has been recognized, ranking 12th among the top 100 property management service brands, and winning multiple awards for excellence in property services[66] Employee Management and Development - The Group employed a total of 14,022 employees, an increase from 11,647 employees as of December 31, 2023[167] - The staff cost of the Group during the Reporting Period was RMB 1,199.4 million, compared to RMB 1,013.7 million in 2023, reflecting an increase of approximately 18.3%[167] - The Group's remuneration packages are based on duties, qualifications, individual performance, and current market standards, with discretionary bonuses awarded for individual contributions[190] - Systematic and extensive training plans and promotion programs were provided to employees during the reporting period[190] Corporate Governance and Social Responsibility - The Group emphasizes green, healthy, and sustainable development, integrating these principles into corporate governance and operations[59] - The Group has been recognized as a Corporate Social Responsibility Benchmarking Enterprise in Zhejiang Province for 2023[55] - The Group's focus on employee training and development is highlighted in the Environmental, Social and Governance Report[190] Financial Management and Operational Efficiency - The Group's organizational reforms aimed to improve operational efficiency and ensure high standards in owner service experience[45] - The Group emphasized the importance of intelligent management systems to enhance financial management and reduce procurement costs[46] - The Group is committed to enhancing its internal management system and smart management platform to improve operational efficiency and service quality[98]

Investment Rating - The report maintains a "BUY" rating for Binjiang Service with a target price of HK$32.86, reflecting a potential upside of 29.9% from the current price of HK$25.30 [1][3]. Core Insights - Binjiang Service's FY24 revenue increased by 28% year-over-year to RMB 3.6 billion, driven by managed GFA expansion and a strong renovation business. Net profit rose 11% year-over-year to RMB 550 million, slightly below expectations due to a decline in gross margin and an additional withholding tax [1][7]. - The company plans to focus on expanding its operations outside Zhejiang, where it currently has a significant concentration of third-party GFA, to mitigate risks associated with regional concentration [1][7]. - The basic payout ratio was raised by 10 percentage points to 70%, indicating a dividend yield of 5.9% for FY24 and 7.0% for FY25E, showcasing attractive shareholder returns [1][7]. Financial Summary - FY24 revenue is projected at RMB 3,595 million, with a year-over-year growth of 28% [2][13]. - Net profit for FY24 is expected to be RMB 547 million, reflecting an 11% increase compared to FY23 [2][13]. - The company anticipates continued growth in managed GFA, with a target of 67.9 million square meters for FY24, representing a 24% increase [2][8]. Earnings Projections - Revenue is expected to grow to RMB 4,145 million in FY25E, with a year-over-year growth rate of 15.3% [2][9]. - Net profit is projected to reach RMB 643 million in FY25E, indicating a growth of 17.6% [2][9]. - The P/E ratio is forecasted to decrease from 12.0x in FY24 to 10.2x in FY25E, suggesting a more attractive valuation over time [2][9]. Shareholder Structure - The major shareholders include Great Dragon Ventures with a 45.9% stake and Haoyu Ventures Ltd with a 12.9% stake, indicating a concentrated ownership structure [4]. Market Performance - The stock has shown strong performance, with a 1-month increase of 16.3% and a 3-month increase of 24.6% [5].

Core Viewpoint - 2025 is expected to be a pivotal year for property services in Hangzhou and other major cities in China, as price controls are lifted and property prices rise, leading to increased consumer expectations for property services [1] Financial Performance - For the fiscal year ending December 31, 2024, the company reported a revenue of 3.595 billion RMB, representing a year-on-year growth of 28.0% [2] - Property management service revenue reached 1.932 billion RMB, accounting for 53.8% of total revenue, with a year-on-year increase of 24.7% [2][3] - Gross profit was 835 million RMB, up 20.0% year-on-year, with a gross margin of 23.2%, slightly down from 24.8% in 2023 [2][3] - Operating profit increased by 22.1% to 705 million RMB, while net profit attributable to equity shareholders rose by 11.0% to 547 million RMB [2] Service Segmentation - The "5S value-added services" revenue grew by 61.7%, increasing its revenue share from 24.2% in 2023 to 30.5% in 2024 [3] - Non-owner value-added services saw a slight decline of 2.7%, with a revenue share of 15.7%, down 5 percentage points from the previous year [3] Market Expansion and Strategy - As of December 31, 2024, the managed area reached 67.945 million square meters, a year-on-year increase of 23.9%, with contracted area growing by 13% to 92.866 million square meters [4] - The company is focusing on expanding into high-capacity cities, particularly in Hangzhou, while gradually exiting projects in lower-capacity areas that do not meet profitability standards [5][6] - The company aims to enhance service quality and customer satisfaction, which is expected to positively impact second-hand property prices [3][6] Organizational Optimization - In 2024, the company implemented organizational optimizations, including reducing management layers and establishing a centralized engineering center to improve service efficiency and reduce costs [5][6] - The management emphasized the importance of maintaining high-quality service projects to ensure healthy financial metrics [6]

Summary of Conference Call on Property Management and Commercial Management Industry Industry Overview - The property management and commercial management sectors are experiencing a trend of increasing dividend payouts among major listed companies, with firms like China Resources Vientiane and Wanwu Cloud achieving a 100% dividend payout ratio in 2024 [2][3] - The property management industry is characterized by stable cash flows, high customer retention in residential properties, and effective cost control, with most companies operating with no debt and high dividend yields [2][6] Key Financial Performance - **China Resources Vientiane**: Expected to see a 15% revenue growth and a 20% increase in core net profit, reaching 3.5 billion RMB in 2025. The commercial segment is projected to grow by 20% in revenue and 24% in gross profit [12] - **Binhai Service**: Anticipated a 28% revenue growth and an 11% increase in net profit for 2024, with a focus on high-quality service in Hangzhou [22][23] - **Wanwu Cloud**: Projected to become the second property company to achieve a 100% dividend payout ratio in 2025, despite a 5% decline in core net profit in 2024 due to challenges from related party transactions [27][28] - **Sunac Services**: Maintained a 55% dividend payout ratio in 2024, with a current dividend yield of 9.2%. The company faced a slight revenue decline but showed growth in non-related party business [31][32] - **Greentown Services**: Reported a 6.5% revenue increase and a 30% rise in net profit for 2024, demonstrating strong independent cash generation capabilities [33] Dividend Trends - High dividend payouts are becoming a trend in the industry, with companies like Binhai Service maintaining a 70% payout ratio since its listing, indicating a commitment to shareholder returns [21] - The shift towards higher dividends is attributed to a realization among property management companies that high dividends maximize group interests, moving away from previous reliance on mergers and acquisitions [4][5] Market Dynamics - The commercial management sector benefits from long contract durations (10-20 years), providing stability and a competitive edge in urban shopping centers [8][9] - Despite pressures on high growth, companies are expected to achieve rational growth through effective management and operational capabilities [10][20] Future Outlook - The property management industry is expected to see further improvements in its operating environment, driven by enhanced consumer activity and reduced inflation expectations [5] - Opportunities for business integration and technological empowerment may arise, although the focus remains on maintaining stable cash flows [7] Investment Considerations - China Resources Vientiane is highlighted as a strong investment opportunity due to its attractive dividend yield and potential for growth, especially if macroeconomic conditions improve [16][17] - Wanwu Cloud's strong cash generation and commitment to dividends position it favorably despite recent performance challenges [28][30] - Overall, property management companies like Wanwu Cloud, Sunac Services, and Greentown Services are viewed positively for their sustainable profitability and generous dividend policies, making them attractive to investors [34]

Core Viewpoint - Binhai Service reported a revenue of approximately 3.594 billion yuan for 2024, representing a year-on-year increase of 28% [3] Financial Performance - Total revenue for 2024 was approximately 3.594 billion yuan, with property management service revenue at about 1.932 billion yuan, up 24.7%, accounting for 53.8% of total revenue [3] - Gross profit reached approximately 835 million yuan, a 20% increase year-on-year, with a gross margin of 23.2% [3] - Operating profit was approximately 705 million yuan, reflecting a 22.1% increase year-on-year [3] - Net profit attributable to equity shareholders was approximately 546 million yuan, an 11% increase year-on-year, with a net profit margin of 15.4% [3] Revenue Breakdown - Revenue from property management services provided to Binhai Group or its joint ventures was 947 million yuan, accounting for 49% of property management service revenue [3] - Revenue from independent property developers was 978 million yuan, a 26.1% increase from 2023 [3] - Revenue from property services outside Hangzhou was 570 million yuan, a 27.3% increase from 2023 [3] - Non-owner value-added services decreased by 2.7% to approximately 565 million yuan, while 5S value-added services increased by 61.7% to approximately 1.097 billion yuan [3] Operational Metrics - Average property management fee was approximately 4.1 yuan per square meter per month [4] - Managed area reached approximately 67.945 million square meters, a 23.9% increase year-on-year, with contracted area at approximately 92.866 million square meters, a 13% increase [5] - The management area in Hangzhou exceeded 43 million square meters, accounting for about 63.7% of total managed area [4] Strategic Focus - The company aims to expand primarily in the Yangtze River Delta region, leveraging its experience in high-end markets to increase market share [5] - Management emphasized the importance of quality in project selection and the need to respond to owner demands for service quality in relation to property fees [6] - Future expansion may focus on major cities such as Beijing, Shanghai, Hangzhou, Guangzhou, Chengdu, and Shenzhen [6]

Financial Performance - Total revenue for the year ended December 31, 2024, reached RMB 3,594,714, representing a 28.0% increase compared to RMB 2,809,206 in 2023[5] - The gross profit for the year was RMB 835,368, with a gross margin of 23.2%, down from 24.8% in 2023[5] - Operating profit increased by 22.1% to RMB 705,087, compared to RMB 577,305 in 2023[7] - Net profit attributable to equity shareholders was RMB 546,529, an 11.0% increase from RMB 492,545 in the prior year[5] - The company's basic and diluted earnings per share for 2024 were RMB 546,529,000, compared to RMB 492,545,000 in 2023, indicating an increase of 10.9%[40] - The company's income tax expense for 2024 was RMB 232,886,000, a significant increase from RMB 149,508,000 in 2023, representing a growth of 55.7%[35] - Net profit for the year increased by 10.0% to RMB 553.5 million in 2024, compared to RMB 503.0 million in 2023, with a net profit margin of 15.4%, down 2.5 percentage points from 17.9%[113] Revenue Breakdown - Property management services revenue was RMB 1,932,289, up 24.7% from RMB 1,549,890 in the previous year[5] - The 5S value-added services segment saw revenue increase to RMB 1,097,007 thousand, a significant rise of 62% compared to RMB 678,483 thousand in 2023[25] - Revenue from residential property management was RMB 1,476.9 million, with a managed area of 56,939 thousand square meters across 314 projects, compared to RMB 1,131.6 million and 45,040 thousand square meters across 252 projects in 2023[83] - Property management services generated revenue of RMB 1,932.3 million, accounting for 53.8% of total revenue, with a year-on-year growth of 24.7%[94] - 5S value-added services revenue reached RMB 1,097.0 million, representing 30.5% of total revenue, with a significant increase of 61.7% compared to the previous year[98] - Non-owner value-added services revenue was RMB 565.4 million, accounting for 15.7% of total revenue, showing a decline of 2.7% year-on-year[98] Operational Metrics - The number of managed area increased by 23.9% to 67,945 thousand square meters, compared to 54,847 thousand square meters in 2023[5] - The total contracted area as of December 31, 2024, was 92.9 million square meters, an increase from 82.2 million square meters in 2023, while the managed area grew to 67.9 million square meters from 54.8 million square meters[81] - The average property management fee for 2024 was approximately RMB 4.10 per square meter per month, down from RMB 4.21 in 2023, with 15 projects increasing their management fees[75] - The total managed area in Hangzhou exceeded 4.3 million square meters, representing approximately 63.7% of the total managed area, with the top five cities accounting for about 88.5% of the total[59] Cost and Expenses - Employee costs rose to RMB 1,199,366,000 in 2024, up from RMB 1,013,680,000 in 2023, reflecting a growth of 18.3%[30] - Total sales cost increased by 30.6% from RMB 2,113.3 million in 2023 to RMB 2,759.3 million in 2024, primarily due to business scale growth[104] - The depreciation expense for owned properties, plants, and equipment rose to RMB 15,204,000 in 2024 from RMB 11,577,000 in 2023, an increase of 31.2%[33] Dividends and Shareholder Returns - The company declared a mid-year dividend of HKD 0.630 per share, with a payout ratio of approximately 60%[5] - The board proposed a final dividend of HKD 0.876 per share for 2024, with a total proposed dividend of approximately HKD 242.1 million, representing a payout ratio of about 70%[132] Market and Strategic Initiatives - The company continues to focus on expanding its property management and value-added services in the Chinese market[24] - The company aims to enhance its service quality through a three-tier quality control system and has implemented a customer service intelligence system to improve client satisfaction[58] - The company has successfully expanded its market presence through strategic partnerships and joint ventures, with new projects in Hangzhou, Shanghai, Zhoushan, and Hainan[59] - The company aims to expand its market share in the Yangtze River Delta region, targeting cities like Shanghai and Ningbo for future growth[88] Governance and Compliance - The company has complied with the corporate governance code, with a commitment to maintaining high standards of governance and accountability[135] - The audit committee, composed of three independent non-executive directors, reviewed the annual performance and financial statements for the year ending December 31, 2024[137] Employee and Talent Development - The company emphasized the importance of talent development, enhancing internal training and expanding the talent reserve pool[68] - Total employees increased to 14,022 as of December 31, 2024, up from 11,647 in 2023, with employee costs rising to RMB 1,199.4 million from RMB 1,013.7 million[128]

Financial Performance - Revenue for the six months ended June 30, 2024, was RMB 1,650,407,000, representing a 38.7% increase compared to RMB 1,190,076,000 for the same period in 2023[9]. - Gross profit for the reporting period was RMB 421,745,000, an increase of 32.6% from RMB 318,032,000 in the corresponding period of 2023[9]. - Profit for the reporting period was RMB 272,347,000, reflecting a 14.7% increase from RMB 237,470,000 in the previous year[9]. - Basic earnings per share increased to RMB 0.96 from RMB 0.84, marking a growth of 14.9%[9]. - The Group's profit for the period increased by 14.7% to RMB 272.3 million, with a net profit margin of 16.5%, down 3.5 percentage points from the previous year[93]. - The Group's profit before taxation rose by 24.5% to RMB 391.7 million, mainly due to increased gross profit from operations[91]. - Total revenue for the six months ended June 30, 2024, reached RMB 1,650,407,000, a 38.7% increase from RMB 1,190,076,000 in the same period of 2023[199]. Assets and Liabilities - Total assets as of June 30, 2024, were RMB 4,184,894,000, up from RMB 4,054,902,000 at the end of 2023[12]. - Current assets increased to RMB 2,737,038,000 from RMB 2,605,190,000, while cash and cash equivalents decreased to RMB 867,138,000 from RMB 1,455,384,000[12]. - Total liabilities rose to RMB 2,725,297,000 from RMB 2,513,329,000, indicating an increase in financial obligations[12]. - Current liabilities increased to RMB 2,710,267 from RMB 2,491,664 at the end of 2023, indicating a rise of 8.8%[167]. - The total equity of the Group decreased by 5.3% to RMB 1,459.6 million from RMB 1,541.6 million as of December 31, 2023[96]. Operational Metrics - As of June 30, 2024, the Group's gross floor area (GFA) under management was approximately 63.1 million sq.m., representing a 29.6% increase compared to the same period in 2023[14]. - The contracted GFA was approximately 90.0 million sq.m., reflecting a growth of 21.3% year-over-year[14]. - The number of projects managed increased to 398 in 2024 from 328 in 2023, marking a rise of about 21.3%[55]. - The average monthly property management fee was approximately RMB 4.17 per sq.m., down from RMB 4.27 per sq.m. in the same period of 2023[42]. Value-Added Services - Revenue from property management services amounted to RMB 905.3 million, while value-added services to non-property owners generated RMB 250.7 million[42]. - Revenue from 5S value-added services increased significantly to RMB 494,324,000, up from RMB 191,234,000, representing a growth of 158.5% year-over-year[199]. - The Group's value-added service system centered on 5S aims to provide one-stop quality services for homeowners[21]. Cost and Expenses - Cost of sales increased by 40.9% from RMB 872.0 million to RMB 1,228.7 million, consistent with business scale growth[84]. - Selling and marketing expenses rose by 41.5% to RMB 10.7 million, primarily due to increased market expansion expenses[85]. - Administrative expenses increased by 50.5% to RMB 49.9 million, mainly due to enhanced management and talent development[86]. Cash Flow and Dividends - The net cash generated from operating activities was RMB 171,070,000, a decrease of 73.8% compared to RMB 653,670,000 for the same period in 2023[173]. - The company paid dividends totaling RMB 345,743,000, compared to no dividends paid in the same period last year, indicating a new strategy in shareholder returns[175]. - The interim dividend declared is HK$0.630 per share, totaling approximately HK$174.1 million, with a payout ratio of about 60% of net profit attributable to equity shareholders[116]. Corporate Governance - The Company has complied with all applicable code provisions under the Corporate Governance Code during the six months ended June 30, 2024, except for the separation of the roles of chairman and chief executive officer[120]. - The Audit Committee, consisting of three independent non-executive Directors, has reviewed the interim results and financial statements for the six months ended June 30, 2024[124]. - The Company has maintained high standards of corporate governance to safeguard shareholder interests and enhance corporate value[120]. Market Expansion and Strategy - The Group's strategy focuses on expanding market share through high-quality brand development and deep regional cultivation[19]. - The Group aims to enhance operational capabilities through informatization and intelligence improvements[46]. - The Group plans to fully utilise the remaining unutilised net proceeds by 31 December 2025, based on the best estimation of future development and market conditions[135].

Investment Rating - The report maintains a BUY rating for Binjiang Services with a target price (TP) trimmed by 4% to HK$32.94, representing a 15x 2024E P/E [2][4]. Core Insights - Binjiang Services reported solid 1H24 results with revenue and net profit (NP) growing 39% and 15% year-over-year (YoY) respectively. The gross profit margin (GPM) narrowed by 1.2 percentage points due to a higher proportion of lower-margin furnishing services in revenue [2][5]. - The company has balanced sources of growth, with managed gross floor area (GFA) expanding by 30% YoY in 1H24, driven by both parent company and third-party contributions [2][5]. - The sustainability of growth in furnishing services is supported by RMB 1.27 billion in contract liabilities, although this may continue to exert pressure on margins [2][5]. Financial Performance Summary - Revenue for 1H24 reached RMB 1.65 billion, with property management services growing by 26% YoY and the Owner Value-Added Services (VAS) segment increasing by 159% YoY [2][5]. - The net profit margin contracted by 3.3 percentage points to 16.1% due to a 6 percentage point increase in the tax rate, resulting in a 15% YoY increase in NP [2][5]. - Total receivables increased by 44% YoY, slightly outpacing revenue growth, which is considered normal given the seasonal nature of property management fee collections [2][5]. Growth Projections - The company expects to deliver 20-30% growth in managed GFA for 2024E, indicating a positive outlook despite a challenging environment [2][5]. - Forecasts for net profit have been lowered by 7-13% for 2024-25E to reflect the challenging environment and intensifying competition [2][6]. Valuation Metrics - The report provides a valuation of 15x 2024E P/E, with a target price of HK$32.94, indicating a significant upside potential from the current price of HK$17.00 [4][6]. - The earnings summary shows a consistent growth trajectory with revenue projected to reach RMB 3.485 billion in FY24E, reflecting a 24.1% YoY growth [3][8].

Investment Rating - The investment rating for the company is "Buy" (maintained) [2][9]. Core Views - The company has reported a dual increase in revenue and profit, with a steady growth in managed area and a robust project reserve, indicating promising future resource delivery [2]. - The expansion into hard decoration services has led to a significant increase in 5S value-added service revenue, which is expected to become a new profit growth point [2]. - The company maintains its profit forecast, expecting net profits of 583 million, 702 million, and 829 million yuan for 2024-2026, with corresponding EPS of 2.11, 2.54, and 3.00 yuan [2]. Financial Performance - For the first half of 2024, the company achieved revenue of 1.65 billion yuan, a year-on-year increase of 38.7%, and a net profit of 265 million yuan, up 14.9% year-on-year [2]. - The gross margin and net margin were 25.6% and 16.5%, respectively, reflecting a decrease of 1.1 percentage points and 3.5 percentage points [2]. - The interim dividend declared is 0.63 HKD per share, with a payout ratio of 60% [2]. Property Management Revenue - Property management revenue reached 905 million yuan, a year-on-year increase of 25.9%, accounting for 54.9% of total revenue, with a gross margin of 19.7% [2]. - The managed area increased to 63 million square meters, a year-on-year growth of 29.6%, with residential properties making up 81.7% [2]. - The company has raised property management fees 64 times since 2015, with an average fee of 4.17 yuan per square meter per month [2]. Value-Added Services - Non-owner value-added service revenue decreased by 10.3% year-on-year to 251 million yuan, primarily due to a reduction in pre-delivery service revenue [2]. - The 5S value-added service revenue surged by 158.5% year-on-year to 494 million yuan, with significant contributions from parking and storage services [2]. - The gross margin for value-added services decreased to 27.4%, down 7.4 percentage points year-on-year, due to the dilution effect from hard decoration services [2].