Core Insights - Country Garden Services reported a revenue of RMB 23.1855 billion for the six months ending June 30, 2025, representing a year-on-year growth of 10.2% [1] - The company's profit attributable to shareholders was RMB 999 million, a decline of 30.8% compared to the previous year, with basic earnings per share at 29.82 cents [1] Revenue Breakdown - Property management service revenue was approximately RMB 13.6058 billion, showing a year-on-year increase of about 6.7%, accounting for approximately 58.7% of total revenue [1] - Community value-added service revenue reached approximately RMB 2.1039 billion, reflecting a year-on-year growth of about 5.3%, making up about 9.1% of total revenue [2] Operational Scale - The total managed area, excluding the "Three Supplies and One Industry" business, was approximately 1.0633 billion square meters as of June 30, 2025 [1] - The company managed a total of 8,108 properties across 31 provinces, municipalities, autonomous regions, and Hong Kong, with about 40.2% of the managed area located in first- and second-tier cities [1] Community and Charging Services - The company focused on enhancing its core capabilities in the liquor business and adopted a "Property + Professional" community partner model, achieving a cumulative customer base of nearly 4,200 with a repurchase rate of about 65% [2] - The company expanded its self-operated brand "Smart Charging Below" to provide safe and convenient charging services, operating approximately 600,000 charging sockets across over 5,000 communities nationwide [2] Technological Advancements - The property service industry is undergoing transformative changes with the large-scale commercialization of artificial intelligence technology [3] - The company is committed to digital transformation, enhancing customer experience, service quality, and operational efficiency through technology [3] - The company aims to become a leader in smart community services by embracing AI applications in customer service, facility management, security monitoring, and energy consumption optimization [3]

Core Viewpoint - Country Garden Services reported a solid performance in the first half of 2025, with a revenue of 23.19 billion yuan, reflecting a year-on-year growth of 10.2%, and a core net profit attributable to shareholders of approximately 1.57 billion yuan, indicating a robust business foundation and steady growth in core business revenue [1] Group 1: Financial Performance - The company achieved a revenue of 23.19 billion yuan in the first half of 2025, marking a 10.2% increase compared to the previous year [1] - The core net profit attributable to shareholders was approximately 1.57 billion yuan [1] Group 2: Business Operations - The total number of managed property projects reached 8,108, with a managed area of 1.06 billion square meters, including 90 million square meters of residential area under "three supplies and one industry" [1] - Approximately 40.2% of the managed area is located in first- and second-tier cities [1] Group 3: Customer Satisfaction and Service Improvement - The company invested about 259 million yuan in community recreational facilities and upgrades to enhance customer experience [1] - A focus on customer satisfaction is emphasized as a key foundation for the company's sustainable development [1] Group 4: Market Expansion - Significant progress was made in market expansion, particularly in the Integrated Facility Management (IFM) sector, with successful projects acquired from China Coal Group, The Chinese University of Hong Kong (Shenzhen), and China Mobile in Guangdong and Shaanxi provinces [2] - The establishment of a dedicated IFM business group marks a strategic move towards enhancing service capabilities and building a comprehensive service moat [2]

Group 1 - The core viewpoint of the article highlights that Country Garden Services (06098.HK) reported a total revenue increase of approximately 10.2% year-on-year, reaching about RMB 23.186 billion for the six months ending June 30, 2025 [1] - The company's profit attributable to shareholders was approximately RMB 999 million, reflecting a year-on-year decline of about 30.8% [1] - Basic earnings per share were reported at RMB 0.2982 [1] Group 2 - The revenue growth was primarily driven by increases in property management services, community value-added services, and "Three Supplies and One Industry" business, which collectively saw a revenue increase of 14.9% compared to the same period in 2024 [1] - The decline in non-owner value-added service revenue was attributed to the company's proactive reduction of credit risk associated with "risk customers," leading to a decrease in business scale [1] - Additionally, there was a reduction in revenue from urban services and commercial operation services, which contributed to the overall financial performance [1]

[Performance Highlights](index=1&type=section&id=Performance%20Highlights) The company's interim results for the six months ended June 30, 2025, show a decline in net profit and EPS, alongside a revised dividend policy Unaudited Interim Results Highlights for the Six Months Ended June 30, 2025 | Indicator | 2025 (RMB million) | 2024 (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 23,185.5 | 21,046.2 | 10.2% | | Gross Profit | 4,299.1 | 4,453.4 | -3.5% | | Net Profit | 1,002.6 | 1,545.6 | -35.1% | | Profit attributable to equity holders of the Company | 996.6 | 1,440.4 | -30.8% | | Core net profit attributable to equity holders of the Company* | 1,567.7 | 1,840.0 | -14.8% | | Basic earnings per share (RMB cents) | 29.82 | 43.09 | -30.8% | | Diluted earnings per share (RMB cents) | 29.73 | 43.09 | -31.0% | | Charged GFA (excluding "Three Supplies and One Industry" business) (billion sq.m.) | 1.06 | 1.04 | 1.9% | | Charged GFA ("Three Supplies and One Industry" business) (billion sq.m.) | 0.09 | 0.09 | 0.0% | | Bank and structured deposits (RMB million) | 16,472.8 | 18,178.6 | -9.3% | - The Board recommends not declaring an interim dividend for the six months ended June 30, 2025, and sets the 2025 annual dividend target at **60% of core net profit attributable to equity holders of the Company** for cash dividends to enhance comprehensive shareholder returns[4](index=4&type=chunk) [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=3&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) This statement presents the company's financial performance, including revenue, costs, and profit for the six months ended June 30, 2025 Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (For the six months ended June 30) | Indicator | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Revenue | 23,185,484 | 21,046,154 | | Cost of services provided | (17,890,291) | (15,745,590) | | Cost of goods sold | (996,092) | (847,166) | | Gross Profit | 4,299,101 | 4,453,398 | | Selling and marketing expenses | (121,480) | (185,148) | | Administrative expenses | (2,205,369) | (1,793,880) | | Net impairment losses on financial and contract assets | (589,981) | (404,265) | | Other income | 82,903 | 117,503 | | Other losses – net | (137,949) | (119,692) | | Operating profit | 1,327,225 | 2,067,916 | | Finance income – net | 62,070 | 3,492 | | Share of results of investments accounted for using the equity method | (54,573) | (37,651) | | Profit before income tax | 1,334,722 | 2,033,757 | | Income tax expense | (332,076) | (488,176) | | Profit for the period | 1,002,646 | 1,545,581 | | Profit attributable to equity holders of the Company | 996,555 | 1,440,367 | | Profit attributable to non-controlling interests | 6,091 | 105,214 | | Total comprehensive income for the period | 950,208 | 1,562,423 | [Condensed Consolidated Statement of Financial Position](index=5&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) This statement provides a snapshot of the company's assets, liabilities, and equity as of June 30, 2025, reflecting its financial health Condensed Consolidated Statement of Financial Position (As of June 30, 2025) | Indicator | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | **ASSETS** | | | | Total non-current assets | 30,363,895 | 29,026,079 | | Total current assets | 40,796,800 | 42,228,452 | | **TOTAL ASSETS** | **71,160,695** | **71,254,531** | | **EQUITY** | | | | Equity attributable to equity holders of the Company | 36,619,810 | 36,617,030 | | Non-controlling interests | 2,423,055 | 2,461,692 | | **TOTAL EQUITY** | **39,042,865** | **39,078,722** | | **LIABILITIES** | | | | Total non-current liabilities | 3,365,948 | 3,843,346 | | Total current liabilities | 28,751,882 | 28,332,463 | | **TOTAL LIABILITIES** | **32,117,830** | **32,175,809** | | **TOTAL EQUITY AND LIABILITIES** | **71,160,695** | **71,254,531** | [Notes to the Condensed Consolidated Financial Statements](index=7&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed explanations and disclosures supporting the condensed consolidated financial statements [1. Basis of Preparation](index=7&type=section&id=1.%20Basis%20of%20Preparation) The condensed consolidated financial statements are prepared in accordance with HKAS 34 and applicable Listing Rules disclosure requirements - The condensed consolidated financial statements are prepared in accordance with HKAS 34 and the Listing Rules[11](index=11&type=chunk) [2. Accounting Policies](index=7&type=section&id=2.%20Accounting%20Policies) These condensed consolidated financial statements are prepared on a historical cost basis, with no significant impact from new accounting standard amendments - The financial statements are primarily prepared on a historical cost basis, except for certain financial instruments[12](index=12&type=chunk) - Amendments to HKFRS accounting standards were first applied this period, with no significant impact on financial position or performance[13](index=13&type=chunk) [3. Revenue and Segment Information](index=7&type=section&id=3.%20Revenue%20and%20Segment%20Information) The Group's total revenue for the period was RMB23,185.5 million, primarily from property management and related services in mainland China - The Group primarily engages in property management, community value-added, non-owner value-added, 'Three Supplies and One Industry', city, and commercial operation services in mainland China[14](index=14&type=chunk) - Reportable segments include property management and related services (excluding 'Three Supplies and One Industry' business), 'Three Supplies and One Industry' business, city services, and commercial operation services[15](index=15&type=chunk) Revenue Analysis by Category (For the six months ended June 30) | Revenue Category | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Revenue from property management and related services (excluding "Three Supplies and One Industry" business) | 16,038,512 | 15,199,915 | | Revenue from "Three Supplies and One Industry" business | 5,071,685 | 3,344,605 | | Revenue from city services business | 1,778,520 | 2,169,987 | | Revenue from commercial operation services business | 296,767 | 331,647 | | **Total Revenue** | **23,185,484** | **21,046,154** | [4. Other Income](index=10&type=section&id=4.%20Other%20Income) Other income for the period decreased by 29.4% to RMB82.9 million, mainly due to lower dividend income and government grants Composition of Other Income (For the six months ended June 30) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Dividend income from financial assets at fair value through other comprehensive income | 29,110 | 54,711 | | Government grants | 35,832 | 41,401 | | Late payment fees | 17,961 | 21,391 | | **Total** | **82,903** | **117,503** | - Other income decreased by **29.4%** year-on-year, primarily due to reduced government grants and dividend income from financial assets[24](index=24&type=chunk) [5. Other Losses – Net](index=11&type=section&id=5.%20Other%20Losses%20%E2%80%93%20Net) Net other losses expanded to RMB137.9 million for the period, primarily driven by increased losses from the disposal of subsidiaries Composition of Other Losses – Net (For the six months ended June 30) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Loss on disposal of subsidiaries | (108,825) | (38,844) | | Gain on modification of sublease contracts | 1,987 | 84,393 | | Gain/(loss) on early termination of lease contracts | 36,803 | (4,856) | | Net foreign exchange losses | (40,214) | (24,281) | | Realized and unrealized gains/(losses) on financial assets at fair value through profit or loss | 21,830 | (30,741) | | Loss on disposal of property, plant and equipment and investment properties | (976) | (10,280) | | Others | (48,554) | (95,083) | | **Total** | **(137,949)** | **(119,692)** | - Net other losses expanded, mainly attributable to increased losses from the disposal of subsidiaries[25](index=25&type=chunk)[99](index=99&type=chunk) [6. Income Tax Expense](index=11&type=section&id=6.%20Income%20Tax%20Expense) Income tax expense decreased by 32.0% to RMB332.1 million for the period, primarily due to a lower total profit for the period Composition of Income Tax Expense (For the six months ended June 30) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Provision for current income tax | 683,203 | 784,087 | | Deferred income tax (Enterprise Income Tax) | (351,127) | (251,846) | | Deferred income tax (withholding income tax on profits to be distributed in the future) | – | (44,065) | | **Total** | **332,076** | **488,176** | - Income tax expense decreased by **32.0%** year-on-year, mainly due to a reduction in the total profit for the period[26](index=26&type=chunk)[100](index=100&type=chunk) [7. Earnings Per Share](index=12&type=section&id=7.%20Earnings%20Per%20Share) Basic and diluted earnings per share attributable to equity holders of the Company both decreased for the six months ended June 30, 2025 Earnings Per Share (For the six months ended June 30) | Indicator | 2025 (RMB cents/share) | 2024 (RMB cents/share) | | :--- | :--- | :--- | | Basic earnings per share | 29.82 | 43.09 | | Diluted earnings per share | 29.73 | 43.09 | - Profit attributable to equity holders of the Company used for calculating basic and diluted earnings per share was **RMB996,555 thousand** (2024: RMB1,440,367 thousand)[28](index=28&type=chunk) [8. Dividends](index=12&type=section&id=8.%20Dividends) The Board resolved not to declare an interim dividend for the period, while the 2024 final and special dividends will be paid around August 29, 2025 - The Board resolved not to declare an interim dividend for the six months ended June 30, 2025[29](index=29&type=chunk) - The 2024 final and special dividends, totaling approximately **RMB988.9 million**, were approved on May 23, 2025, and will be paid on or about August 29, 2025[29](index=29&type=chunk) [9. Intangible Assets](index=13&type=section&id=9.%20Intangible%20Assets) The net book value of intangible assets decreased by RMB497.1 million to RMB21,665.2 million, primarily due to amortization during the period Net Book Value of Intangible Assets (As of June 30, 2025) | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Software | 482,969 | 479,037 | | Contracts and customer relationships | 3,980,060 | 4,366,674 | | Insurance brokerage licenses | 16,084 | 17,322 | | Brands | 1,131,234 | 1,297,592 | | Franchise rights | 638,298 | 578,882 | | Total other intangible assets | 6,248,645 | 6,739,507 | | Goodwill | 15,416,583 | 15,422,806 | | **Total** | **21,665,228** | **22,162,313** | - The decrease in intangible assets is mainly due to amortization of approximately **RMB623.8 million** during the period[30](index=30&type=chunk)[105](index=105&type=chunk) - Goodwill has been reallocated, integrating Sichuan Hemeng into the Living Services cash-generating unit to enhance operational efficiency[32](index=32&type=chunk) [10. Financial Assets at Fair Value Through Other Comprehensive Income](index=14&type=section&id=10.%20Financial%20Assets%20at%20Fair%20Value%20Through%20Other%20Comprehensive%20Income) Total financial assets at fair value through other comprehensive income amounted to RMB480.9 million, mainly comprising listed and unlisted equity securities Financial Assets at Fair Value Through Other Comprehensive Income (As of June 30, 2025) | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Listed equity securities | 13,839 | 14,053 | | Unlisted equity investments | 467,049 | 542,687 | | **Total** | **480,888** | **556,740** | - Investments primarily refer to equity investments in certain property management companies[33](index=33&type=chunk) [11. Trade and Other Receivables](index=15&type=section&id=11.%20Trade%20and%20Other%20Receivables) Total trade and other receivables increased to RMB24,730.4 million, mainly due to slower collection progress and increased 'Three Supplies and One Industry' business revenue Trade and Other Receivables (As of June 30, 2025) | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Net trade receivables | 19,894,198 | 17,689,372 | | Net other receivables | 3,556,322 | 3,380,432 | | Prepayments to suppliers | 900,079 | 1,205,564 | | Other prepaid taxes | 379,837 | 404,960 | | **Total Current Assets** | **24,730,436** | **22,680,328** | | Non-current assets: Finance lease receivables | 292,444 | 282,769 | - Net trade receivables increased by approximately **RMB2,204.8 million**, primarily attributable to slower collection progress across various businesses, extended customer payment cycles, and increased revenue from the 'Three Supplies and One Industry' business[106](index=106&type=chunk) - Trade receivables from Country Garden Holdings and its subsidiaries decreased by approximately **RMB119.9 million**, with a reversal of expected credit loss provisions of approximately **RMB94.8 million**[107](index=107&type=chunk) Aging Analysis of Trade Receivables (As of June 30, 2025) | Aging | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Within 1 year | 12,613,558 | 11,374,034 | | 1 to 2 years | 5,053,063 | 5,099,542 | | 2 to 3 years | 4,228,289 | 3,695,107 | | Over 3 years | 1,568,139 | 975,449 | | **Total** | **23,463,049** | **21,144,132** | [12. Financial Assets at Fair Value Through Profit or Loss](index=17&type=section&id=12.%20Financial%20Assets%20at%20Fair%20Value%20Through%20Profit%20or%20Loss) Financial assets at fair value through profit or loss include structured products, wealth management products, and forward currency contracts - Financial assets include approximately **RMB1,461.4 million** in structured products (1-6 month maturity, expected yield 0.8%-2.8%)[40](index=40&type=chunk) - Wealth management products amount to approximately **RMB583.9 million** (5-year maturity, average expected yield 3.4%)[40](index=40&type=chunk)[41](index=41&type=chunk) - The Group holds forward currency contracts with a total notional amount of **HKD2,229,568,000**, maturing on or before February 27, 2026, collateralized by **RMB1,906,441,000** in time deposits[41](index=41&type=chunk) [13. Share Capital and Share Premium](index=18&type=section&id=13.%20Share%20Capital%20and%20Share%20Premium) Total share capital and share premium amounted to RMB26,477.9 million, reflecting share repurchases for cancellation and issuance of consideration shares Changes in Share Capital and Share Premium (As of June 30, 2025) | Item | June 30, 2025 (RMB thousand) | January 1, 2025 (RMB thousand) | | :--- | :--- | :--- | | Total share capital and share premium | 26,477,904 | 26,521,871 | | Repurchase of shares | (56,275) | – | | Issue of consideration shares | 12,308 | – | - During the period, the Company repurchased **7,552,000 shares** for cancellation at a total consideration of **RMB45,171,000**[42](index=42&type=chunk) - On March 26, 2025, the Company issued **326,551 consideration shares** for projects in transit to the former shareholders of Zhongliang Boyue Zhijia Services Co Ltd[42](index=42&type=chunk) [14. Trade and Other Payables](index=19&type=section&id=14.%20Trade%20and%20Other%20Payables) Total trade and other payables increased to RMB19,657.8 million, primarily due to higher operating costs and increased dividends payable Trade and Other Payables (As of June 30, 2025) | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Trade payables | 9,497,966 | 8,634,177 | | Other payables | 7,134,212 | 6,021,280 | | Contingent consideration for business combinations | 107,678 | 118,235 | | Accrued staff costs | 2,149,351 | 3,292,507 | | Other taxes payable | 768,605 | 757,589 | | **Total** | **19,657,812** | **18,823,788** | - Trade payables increased by approximately **RMB863.8 million**, primarily due to higher operating costs leading to increased procurement costs and expenses[110](index=110&type=chunk) - Other payables increased primarily due to higher dividends payable[111](index=111&type=chunk) Aging Analysis of Trade Payables (As of June 30, 2025) | Aging | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Within 1 year | 8,213,643 | 7,397,618 | | 1 to 2 years | 758,602 | 802,199 | | 2 to 3 years | 284,620 | 364,184 | | Over 3 years | 241,101 | 70,176 | | **Total** | **9,497,966** | **8,634,177** | [15. Bank and Other Borrowings](index=20&type=section&id=15.%20Bank%20and%20Other%20Borrowings) Total bank and other borrowings amounted to RMB858.2 million, slightly lower than year-end 2024, primarily secured by transportation equipment and city service project receivables Bank and Other Borrowings (As of June 30, 2025) | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Secured bank loans | 601,595 | 593,349 | | Secured other borrowings | 229,651 | 262,007 | | Unsecured bank loans | 26,919 | 14,900 | | **Total** | **858,165** | **870,256** | - Secured borrowings are primarily pledged against transportation equipment and receivables from certain city service projects[45](index=45&type=chunk) - The weighted average effective annual interest rate for the period ended June 30, 2025, was **4.21%** (December 31, 2024: 4.25%)[46](index=46&type=chunk) [16. Financial Guarantee Contracts](index=21&type=section&id=16.%20Financial%20Guarantee%20Contracts) A subsidiary's bank accounts were frozen due to a financial guarantee for Caixin Group's trust financing, with a total guaranteed amount of RMB1,181.8 million - Caizhi Xin Services' bank accounts were judicially frozen due to a joint and several guarantee for Caixin Group's trust financing arrangements prior to the acquisition date[49](index=49&type=chunk) - As of June 30, 2025, the principal amount of the related debt was approximately **RMB689.5 million**, with a total guaranteed amount of approximately **RMB1,181.8 million** including accrued interest and penalties[50](index=50&type=chunk) - The Group has made a provision for expected credit losses on financial guarantees of **RMB121.7 million** (December 31, 2024: RMB46.6 million)[51](index=51&type=chunk) [Management Discussion and Analysis](index=22&type=section&id=Management%20Discussion%20and%20Analysis) This section provides an overview of the Group's business operations, financial performance, future plans, and key risks for the period [Business Review](index=22&type=section&id=Business%20Review) The Group is a leading integrated service operator in China, offering diverse services across various property types and achieving industry recognition - The Group is a leading integrated service operator in China, covering various property types including residential, commercial, office buildings, industrial parks, government buildings, hospitals, schools, and other public facilities[52](index=52&type=chunk) - Key business lines include property management services, community value-added services, non-owner value-added services, 'Three Supplies and One Industry' business, city services, and commercial operation services[53](index=53&type=chunk) [Property Management Services](index=22&type=section&id=Property%20Management%20Services) Property management services revenue grew by 6.7% to RMB13,605.8 million, with managed GFA reaching 1,063.3 million sq.m. (excluding 'Three Supplies and One Industry' business) - Property management services revenue was approximately **RMB13,605.8 million**, a year-on-year increase of **6.7%**, accounting for **58.7%** of total revenue[54](index=54&type=chunk) - As of June 30, 2025, charged GFA (excluding 'Three Supplies and One Industry' business) was approximately **1,063.3 million sq.m.**; charged GFA for 'Three Supplies and One Industry' property services was approximately **90.1 million sq.m.**[55](index=55&type=chunk) - The Company actively invests in digital R&D innovation, AI, and IoT, promoting data platform construction and governance, and applying 'Assistant Zero' and 'Resident Zero' cleaning robots to enhance efficiency[57](index=57&type=chunk) [Community Value-Added Services](index=24&type=section&id=Community%20Value-Added%20Services) Community value-added services revenue increased by 5.3% to RMB2,103.9 million, with significant growth in new energy business operations - Community value-added services revenue was approximately **RMB2,103.9 million**, a year-on-year increase of **5.3%**, accounting for **9.1%** of total revenue[61](index=61&type=chunk) - Community value-added services comprise five segments: home services, community media, local lifestyle services (including home decoration intermediary services), real estate brokerage, and industrial park space services[60](index=60&type=chunk) - The new energy business 'Smart Charging Downstairs' operates approximately **600,000 charging sockets** in over **5,000 communities** nationwide, with over **5.5 million registered users** and over **2 million monthly active users**[61](index=61&type=chunk)[62](index=62&type=chunk) [Non-Owner Value-Added Services](index=25&type=section&id=Non-Owner%20Value-Added%20Services) Non-owner value-added services revenue decreased by 17.8% to RMB292.3 million, further reducing its proportion of total revenue - Non-owner value-added services revenue was approximately **RMB292.3 million**, a year-on-year decrease of **17.8%**, accounting for **1.3%** of total revenue[63](index=63&type=chunk) - Service content includes pre-sale business management consulting for property developers, pre-delivery cleaning, landscaping and maintenance, agency sales and leasing of parking spaces and unsold properties, and elevator product installation[63](index=63&type=chunk) ['Three Supplies and One Industry' Business](index=25&type=section&id=%27Three%20Supplies%20and%20One%20Industry%27%20Business) The 'Three Supplies and One Industry' business saw property management revenue of RMB4,156.0 million and heating revenue of RMB915.7 million, with significant new contract signings - Charged GFA for 'Three Supplies and One Industry' property services was approximately **90.1 million sq.m.**[64](index=64&type=chunk) - During the period, property management business revenue was approximately **RMB4,156.0 million**; heating business revenue was approximately **RMB915.7 million**[64](index=64&type=chunk) - The Company signed **315 new contract projects**, with a total contract value of **RMB1.787 billion**[65](index=65&type=chunk) [City Services](index=26&type=section&id=City%20Services) City services revenue decreased by 18.0% to RMB1,778.5 million, with a focus on smart operation and maintenance of urban environmental and solid waste management - City services revenue was approximately **RMB1,778.5 million**, a year-on-year decrease of **18.0%**, accounting for **7.7%** of total revenue[66](index=66&type=chunk) - The business focuses on core areas such as smart operation and maintenance of urban (ecological) environment, solid waste disposal and resource utilization, and environmental governance[66](index=66&type=chunk) [Commercial Operation Services](index=26&type=section&id=Commercial%20Operation%20Services) Commercial operation management business generated total revenue of RMB296.8 million, with a diverse product line matrix and continuous third-party expansion - Total revenue from commercial operation management business was approximately **RMB296.8 million**[68](index=68&type=chunk) - The Company possesses a rich product line matrix including 'Biyue City', 'Biyue Hui', and 'Biyue Time'[68](index=68&type=chunk) - Continuous third-party expansion has added benchmark projects such as Binzhou Boxing Biyue City in Shandong, Handan Cixian Biyue Hui in Hebei, and Langfang Sanhe Biyue Hui in Hebei[68](index=68&type=chunk) [Outlook and Future Plans](index=26&type=section&id=Outlook%20and%20Future%20Plans) The Group plans to deepen service grading, build a digitalized lean operating system, and drive market-oriented development of community value-added services [Deepen Property Management Service Grading and Build a Digitalized Lean and Efficient Operating System](index=26&type=section&id=Deepen%20Property%20Management%20Service%20Grading%20and%20Build%20a%20Digitalized%20Lean%20and%20Efficient%20Operating%20System) The company will optimize service grading, integrate digital operations, and build a full-process online closed-loop management system for owner demands - The Company will continuously optimize its service grading mechanism, deeply integrate digital operating models, and build a 'full-process online closed-loop management system' for owner demands[69](index=69&type=chunk)[70](index=70&type=chunk) - Through lean operations combined with diversified employment models, the Company aims to break efficiency boundaries and formulate layered and categorized operating strategies to stimulate development momentum for each project[71](index=71&type=chunk) [Focus on Core Owner Needs, Build Core Business Capabilities to Drive Market-Oriented Development of Community Value-Added Services](index=27&type=section&id=Focus%20on%20Core%20Owner%20Needs,%20Build%20Core%20Business%20Capabilities%20to%20Drive%20Market-Oriented%20Development%20of%20Community%20Value-Added%20Services) Country Garden Services aims to be a 'full-cycle community life service integrated operator,' developing market-oriented businesses around core owner needs - Committed to becoming a 'full-cycle community life service integrated operator,' providing full-scenario, full-chain, and full-lifecycle community living services[72](index=72&type=chunk) - The Company has strategically developed market-oriented businesses such as integrated marketing, liquor, home decoration intermediary, and new energy, while actively incubating near-field retail, home services, community insurance, and real estate brokerage[72](index=72&type=chunk) - The Company aims to shift its business structure from resource-based to market-oriented, driving scale growth and quality improvement in overall community value-added services[73](index=73&type=chunk) [Empower Property Services with Technology to Enhance Service Warmth and Operational Refinement](index=27&type=section&id=Empower%20Property%20Services%20with%20Technology%20to%20Enhance%20Service%20Warmth%20and%20Operational%20Refinement) The company will continue digital transformation, strengthen its data foundation, and apply AI in property scenarios, with 'Resident Zero' cleaning robots planned for large-scale deployment - Continuously strengthening the data foundation and promoting data governance to drive intelligent decision-making in operations management through real-time, comprehensive data[74](index=74&type=chunk)[75](index=75&type=chunk) - Actively embracing the deep application of artificial intelligence in property scenarios such as customer service, facility management, security monitoring, and energy optimization[75](index=75&type=chunk) - Plans to scale up the deployment of 'Resident Zero' cleaning robots in South China in the second half of 2025, further enhancing operational standardization and efficiency[75](index=75&type=chunk) [Financial Review](index=28&type=section&id=Financial%20Review) This section reviews the Group's financial performance for the six months ended June 30, 2025, covering revenue, costs, profit, and balance sheet changes [Revenue](index=28&type=section&id=Revenue) Total revenue increased by 10.2% to RMB23,185.5 million, with growth in property management and 'Three Supplies and One Industry' businesses, offset by declines in others - Total revenue increased by **10.2%** year-on-year to **RMB23,185.5 million**[76](index=76&type=chunk) Revenue Changes by Business Segment (For the six months ended June 30) | Business Category | 2025 (RMB million) | 2024 (RMB million) | Change (%) | Share of Total Revenue (2025) | | :--- | :--- | :--- | :--- | :--- | | Property Management Services | 13,605.8 | 12,751.9 | 6.7% | 58.7% | | Community Value-Added Services | 2,103.9 | 1,997.8 | 5.3% | 9.1% | | Non-Owner Value-Added Services | 292.3 | 355.5 | -17.8% | 1.3% | | "Three Supplies and One Industry" Property Management and Related Services | 4,156.0 | 2,467.2 | 68.5% | 17.9% | | "Three Supplies and One Industry" Heating Services | 915.7 | 877.4 | 4.4% | 3.9% | | City Services | 1,778.5 | 2,170.0 | -18.0% | 7.7% | | Commercial Operation Services | 296.8 | 331.6 | -10.5% | 1.3% | - The decrease in non-owner value-added services revenue was primarily due to the continuous proactive reduction in the scale of related party transactions[80](index=80&type=chunk) - The increase in 'Three Supplies and One Industry' business revenue was mainly due to certain joint ventures becoming controlled subsidiaries through further acquisition of remaining equity by certain subsidiaries, leading to an increase in revenue scale[82](index=82&type=chunk) [Costs](index=31&type=section&id=Costs) Total costs increased by 13.8% to RMB18,886.4 million, driven by growth in property management, community value-added, and 'Three Supplies and One Industry' businesses - Total costs were approximately **RMB18,886.4 million**, a year-on-year increase of **13.8%**[85](index=85&type=chunk) - The increase in costs was primarily due to the growth in property management services, community value-added services, and 'Three Supplies and One Industry' businesses[85](index=85&type=chunk) [Gross Profit and Gross Profit Margin](index=31&type=section&id=Gross%20Profit%20and%20Gross%20Profit%20Margin) Overall gross profit decreased by 3.5% to RMB4,299.1 million, with the gross profit margin declining by 2.7 percentage points to 18.5% due to increased quality investments and business adjustments - Overall gross profit decreased by **3.5%** year-on-year to **RMB4,299.1 million**[86](index=86&type=chunk) - The overall gross profit margin decreased by **2.7 percentage points** from 21.2% to **18.5%**[86](index=86&type=chunk) Gross Profit Margin Changes by Business Segment (For the six months ended June 30) | Business Category | 2025 Gross Profit Margin | 2024 Gross Profit Margin | Change (percentage points) | | :--- | :--- | :--- | :--- | | Property Management Services | 21.8% | 22.9% | -1.1 | | Community Value-Added Services | 30.4% | 39.0% | -8.6 | | Non-Owner Value-Added Services | 0.1% | -6.5% | +6.6 | | "Three Supplies and One Industry" Property Management and Related Services | 7.9% | 9.7% | -1.8 | | "Three Supplies and One Industry" Heating Services | 6.6% | 6.7% | -0.1 | | City Services | 12.6% | 16.0% | -3.4 | | Commercial Operation Services | 25.9% | 31.0% | -5.1 | [Administrative Expenses](index=33&type=section&id=Administrative%20Expenses) Administrative expenses increased by 22.9% to RMB2,205.4 million, primarily due to an increase in managed projects and the expansion of 'Three Supplies and One Industry' business - Administrative expenses were approximately **RMB2,205.4 million**, a year-on-year increase of **22.9%**[96](index=96&type=chunk) - The increase in administrative expenses was mainly due to the increase in the number of managed projects and the expansion of the 'Three Supplies and One Industry' business[96](index=96&type=chunk) - The administrative expense ratio increased by **1.0 percentage point** from 8.5% to **9.5%**[96](index=96&type=chunk) [Other Income](index=33&type=section&id=Other%20Income) Other income decreased by 29.4% to RMB82.9 million, mainly due to reduced government grants and dividend income from equity investments - Other income was approximately **RMB82.9 million**, a year-on-year decrease of **29.4%**[97](index=97&type=chunk) - The decrease was primarily due to lower government grants and dividend income from equity investments in certain entities compared to the same period last year[97](index=97&type=chunk) [Other Losses — Net](index=33&type=section&id=Other%20Losses%20%E2%80%94%20Net) Net other losses expanded to RMB137.9 million, an increase of RMB18.2 million year-on-year, mainly due to losses from subsidiary disposals - Net other losses were approximately **RMB137.9 million**, an increase of approximately **RMB18.2 million** compared to the same period last year[98](index=98&type=chunk) - The increase was primarily due to losses from the disposal of subsidiaries during the period[99](index=99&type=chunk) [Income Tax Expense](index=34&type=section&id=Income%20Tax%20Expense) Income tax expense decreased by 32.0% to RMB332.1 million, primarily due to a lower total profit for the Group during the period - Income tax expense was approximately **RMB332.1 million**, a year-on-year decrease of **32.0%**[100](index=100&type=chunk) - The decrease was primarily due to a lower total profit for the Group compared to the same period last year[100](index=100&type=chunk) [Profit for the Period](index=34&type=section&id=Profit%20for%20the%20Period) Net profit for the Group decreased by 35.1% to RMB1,002.6 million, with core net profit attributable to equity holders of the Company declining by 14.8% Profit for the Period Metrics (For the six months ended June 30) | Indicator | 2025 (RMB million) | 2024 (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | | Net Profit | 1,002.6 | 1,545.6 | -35.1% | | Profit attributable to equity holders of the Company | 996.6 | 1,440.4 | -30.8% | | Profit attributable to non-controlling interests | 6.1 | 105.2 | -94.2% | | Core net profit attributable to equity holders of the Company* | 1,567.7 | 1,840.0 | -14.8% | [Net Cash Flow from Operating Activities for the Period](index=34&type=section&id=Net%20Cash%20Flow%20from%20Operating%20Activities%20for%20the%20Period) The Group recorded a net cash outflow from operating activities of RMB875.2 million, primarily due to lower property management prepayments, initial investments for 'Three Supplies and One Industry' expansion, and decreased net profit - The Group recorded a net cash outflow from operating activities of approximately **RMB875.2 million** (compared to a net cash inflow of approximately RMB270.3 million in the same period of 2024)[102](index=102&type=chunk) - Key reasons include a decrease in property management prepayments, initial investments required for the expansion of the 'Three Supplies and One Industry' business, and a year-on-year decrease in net profit for the period[102](index=102&type=chunk) [Equity Attributable to Equity Holders of the Company](index=35&type=section&id=Equity%20Attributable%20to%20Equity%20Holders%20of%20the%20Company) Equity attributable to equity holders of the Company increased to RMB36,619.8 million, influenced by comprehensive income, declared dividends, and share purchases for the share award scheme - Equity attributable to equity holders of the Company increased by approximately **RMB2.8 million** to **RMB36,619.8 million**[104](index=104&type=chunk) - This was primarily influenced by the comprehensive income attributable to equity holders of the Company of **RMB944.1 million**, declared 2024 annual dividends of approximately **RMB988.9 million**, and share purchases for the share award scheme of approximately **RMB11.1 million**[104](index=104&type=chunk) [Intangible Assets](index=35&type=section&id=Intangible%20Assets) Intangible assets decreased by RMB497.1 million to RMB21,665.2 million, primarily due to amortization of RMB623.8 million during the period - Intangible assets were approximately **RMB21,665.2 million**, a decrease of approximately **RMB497.1 million** from year-end 2024[105](index=105&type=chunk) - The decrease was primarily due to amortization of intangible assets amounting to approximately **RMB623.8 million** during the period[105](index=105&type=chunk) [Trade and Other Receivables](index=35&type=section&id=Trade%20and%20Other%20Receivables) Net trade receivables increased by RMB2,204.8 million due to slower collection and 'Three Supplies and One Industry' business growth, while other receivables increased by RMB185.6 million - Net trade receivables increased by approximately **RMB2,204.8 million**, primarily attributable to slower collection progress across various businesses, extended customer payment cycles, and increased revenue from the 'Three Supplies and One Industry' business[106](index=106&type=chunk) - Trade receivables from Country Garden Holdings and its subsidiaries decreased by approximately **RMB119.9 million**[107](index=107&type=chunk) - Net other receivables increased by approximately **RMB185.6 million**, mainly due to increased payments made on behalf of owners[108](index=108&type=chunk) [Contract Liabilities](index=36&type=section&id=Contract%20Liabilities) Contract liabilities decreased by RMB476.8 million to RMB7,768.5 million, as new contract liabilities were less than amounts recognized as revenue - Contract liabilities decreased by approximately **RMB476.8 million** to **RMB7,768.5 million**[109](index=109&type=chunk) - The decrease was primarily due to the amount of new contract liabilities recognized during the period being less than the amount transferred to revenue[109](index=109&type=chunk) [Trade and Other Payables](index=36&type=section&id=Trade%20and%20Other%20Payables) Trade payables increased by RMB863.8 million due to higher operating costs, and other payables increased by RMB1,112.9 million due to higher dividends payable - Trade payables increased by approximately **RMB863.8 million** to **RMB9,498.0 million**, primarily due to higher operating costs[110](index=110&type=chunk) - Other payables increased by approximately **RMB1,112.9 million** to **RMB7,134.2 million**, primarily due to higher dividends payable[111](index=111&type=chunk) [Capital Management](index=37&type=section&id=Capital%20Management) The Group's capital management aims to ensure continuous operation, provide shareholder returns, and maintain an optimal capital structure, with all borrowings repaid on time - The purpose of capital management is to safeguard the ability to continue as a going concern, provide returns to shareholders, and maintain an optimal capital structure[112](index=112&type=chunk) - As of June 30, 2025, bank and other borrowings amounted to approximately **RMB858.2 million**, with all maturing borrowings repaid on time[112](index=112&type=chunk) - The Group's capital gearing ratio remains in a net cash position[113](index=113&type=chunk) [Liquidity, Financial and Capital Resources](index=37&type=section&id=Liquidity,%20Financial%20and%20Capital%20Resources) Bank and structured deposits decreased to RMB16,472.8 million, with net current assets of RMB12,044.9 million and a current ratio of approximately 1.4 times - Bank deposits (including time deposits and restricted bank deposits) and structured deposits amounted to approximately **RMB16,472.8 million**, a decrease of approximately **RMB1,705.8 million** from year-end 2024[114](index=114&type=chunk) Currency Denomination of Bank and Structured Deposits (As of June 30, 2025) | Currency | June 30, 2025 (RMB thousand) | Share (%) | December 31, 2024 (RMB thousand) | Share (%) | | :--- | :--- | :--- | :--- | :--- | | RMB | 12,157,766 | 73.8 | 13,833,239 | 76.1 | | HKD | 2,124,173 | 12.9 | 172,271 | 0.9 | | Other currencies | 2,190,871 | 13.3 | 4,173,092 | 23.0 | | **Total** | **16,472,810** | **100.0** | **18,178,602** | **100.0** | - Net current assets were approximately **RMB12,044.9 million**, with a current ratio of approximately **1.4 times**[115](index=115&type=chunk) [Principal Risks and Uncertainties](index=38&type=section&id=Principal%20Risks%20and%20Uncertainties) The Group faces industry risks from economic and policy changes, business risks related to operations and receivables, and foreign exchange risks from foreign currency-denominated assets - Industry risks: affected by overall economic and market conditions and property management industry policies and regulations, particularly changes in the Chinese real estate market which may impact growth in charged GFA and revenue[117](index=117&type=chunk) - Business risks: including control over operating costs (especially labor costs), securing new property management service contracts, impairment losses on receivables, and the impact of a large number of contract terminations or non-renewals[118](index=118&type=chunk) - Foreign exchange risks: primarily concentrated in China, with no other significant direct exchange rate fluctuation risks apart from foreign currency-denominated bank deposits and accounts receivable; management will monitor and formulate hedging strategies[119](index=119&type=chunk) [Employees and Remuneration Policy](index=39&type=section&id=Employees%20and%20Remuneration%20Policy) As of June 30, 2025, the Group had 217,692 employees, with total staff costs of RMB8,557.5 million, and remuneration determined by performance, profitability, and market conditions - As of June 30, 2025, the Group had **217,692 employees** (December 31, 2024: 214,346 employees)[120](index=120&type=chunk) - Total staff costs for the period were approximately **RMB8,557.5 million**[120](index=120&type=chunk) - Remuneration is determined based on employee performance, Group profitability, industry benchmarks, and market conditions, with participation in local government social insurance contribution schemes[120](index=120&type=chunk) [Share Schemes](index=39&type=section&id=Share%20Schemes) The Company adopted a 2024 share option scheme and a share award scheme, with 111,652,033 share options available and 109,000,000 shares purchased under the award scheme - The Company's shareholders approved and adopted the 2024 Share Option Scheme, offering a total of **225,350,000 share options** to 60 employees[121](index=121&type=chunk) - As of June 30, 2025, the number of share options available for grant under the 2024 Share Option Scheme was **111,652,033**[121](index=121&type=chunk) - Under the Share Award Scheme, a total of **109,000,000 shares** were purchased in the market at a total consideration of approximately **RMB557 million**, reaching the scheme's cap[122](index=122&type=chunk) [Pledge of Assets](index=40&type=section&id=Pledge%20of%20Assets) The Group's borrowings and sale-and-leaseback financing are primarily secured by city service project receivables and equipment, with time deposits pledged for forward foreign exchange contracts - Subsidiaries' borrowings and sale-and-leaseback financing loans are primarily pledged against receivables from city service projects and certain equipment[125](index=125&type=chunk) - Time deposits of **RMB1,906,441,000** have been pledged for forward foreign exchange contracts to manage exchange rate fluctuations and lock in returns[125](index=125&type=chunk) [Contingent Liabilities](index=40&type=section&id=Contingent%20Liabilities) As of June 30, 2025, the Group had no contingent liabilities other than contingent consideration arising from business combinations - As of June 30, 2025, the Group had no contingent liabilities other than contingent consideration arising from business combinations[126](index=126&type=chunk) [External Guarantees](index=41&type=section&id=External%20Guarantees) As of June 30, 2025, the Group had no external guarantees other than those disclosed in Note 16 to the interim financial information - As of June 30, 2025, the Group had no external guarantees other than those disclosed in Note 16 to the interim financial information[127](index=127&type=chunk) [Material Acquisitions, Disposals and Significant Investments](index=41&type=section&id=Material%20Acquisitions,%20Disposals%20and%20Significant%20Investments) During the period, the Group had no material acquisitions, disposals, or any individual significant investments - During the period, the Group had no material acquisitions or disposals, nor any individual significant investments[128](index=128&type=chunk) [Interim Dividends](index=41&type=section&id=Interim%20Dividends) The Board resolved not to declare an interim dividend for the period, while the 2024 final and special dividends will be paid around August 29, 2025 - The Board resolved not to declare an interim dividend for the six months ended June 30, 2025[129](index=129&type=chunk) - The 2024 final and special dividends, totaling approximately **RMB988.9 million**, were approved on May 23, 2025, and will be paid on or about August 29, 2025[129](index=129&type=chunk) [Significant Events During the Period](index=41&type=section&id=Significant%20Events%20During%20the%20Period) Several significant events occurred, including plans for share repurchases, a connected transaction for financial assistance, a public reprimand related to Country Garden Holdings, and amendments to the Nomination Committee's terms of reference [Intention to Repurchase and/or Purchase Shares in the Open Market](index=41&type=section&id=Intention%20to%20Repurchase%20and/or%20Purchase%20Shares%20in%20the%20Open%20Market) The Company plans to use at least RMB500 million to repurchase and/or purchase shares in the open market within the next year, with 9,089,000 shares already repurchased - The Company plans to use no less than **RMB500 million** of its existing available cash reserves to repurchase and/or purchase shares in the open market within the next year[130](index=130&type=chunk) - As of the announcement date, a total of **9,089,000 shares** have been repurchased at a total consideration of **HKD59,189,830**[130](index=130&type=chunk) [Connected Transaction on Provision of Financial Assistance](index=41&type=section&id=Connected%20Transaction%20on%20Provision%20of%20Financial%20Assistance) The Company entered into loan agreements to provide a revolving loan facility of RMB1 billion, secured by 543,695,233 shares of the Company beneficially owned by the borrowers - The Company agreed to provide a revolving loan facility with a principal amount totaling **RMB1 billion** to Best Victory Limited and Fortune Warrior Global Limited[131](index=131&type=chunk) - The loan is secured by a total of **543,695,233 shares** of the Company beneficially owned by the borrowers[132](index=132&type=chunk) [Announcement Pursuant to Rules 13.51B(2) and 13.51(2) of the Listing Rules](index=42&type=section&id=Announcement%20Pursuant%20to%20Rules%2013.51B(2)%20and%2013.51(2)%20of%20the%20Listing%20Rules) Ms. Yang Huiyan was publicly reprimanded by SSE and SZSE for Country Garden Holdings' delayed interim report disclosure, but the Board deems her suitable to continue her role - Ms. Yang Huiyan was publicly reprimanded by the Shanghai Stock Exchange and Shenzhen Stock Exchange due to Country Garden Holdings' failure to disclose its 2024 interim report on time[133](index=133&type=chunk) - The Board believes the relevant non-compliance is unrelated to the Group and has not and will not have any material adverse impact on the Group's business and/or operations[134](index=134&type=chunk) - The Board considers Ms. Yang suitable to continue serving as a Non-executive Director and Chairperson of the Company[134](index=134&type=chunk) [Amendments to the Terms of Reference of the Nomination Committee](index=42&type=section&id=Amendments%20to%20the%20Terms%20of%20Reference%20of%20the%20Nomination%20Committee) The Nomination Committee's terms of reference were revised to align with HKEX corporate governance enhancements, including requirements for gender diversity and performance evaluations - The terms of reference of the Nomination Committee were revised to comply with the corporate governance enhancement measures published by the HKEX in December 2024[135](index=135&type=chunk) - Revisions include requiring at least one member of a different gender, assisting the Board in preparing a board skills matrix, annually evaluating directors' performance, and evaluating the Board's performance at least every two years[135](index=135&type=chunk)[136](index=136&type=chunk) [Events After the Reporting Period](index=43&type=section&id=Events%20After%20the%20Reporting%20Period) No significant events affecting the Group occurred after June 30, 2025, up to the announcement date - No significant events affecting the Group occurred after the reporting period and up to the date of this announcement[137](index=137&type=chunk) [Audit Committee](index=43&type=section&id=Audit%20Committee) The Audit Committee, comprising four independent non-executive directors, reviews financial reporting, internal controls, and risk management, and has reviewed the interim results and accounting policies - The Audit Committee comprises four independent non-executive directors, with Mr. Rui Meng serving as Chairman[138](index=138&type=chunk) - Its primary responsibilities include assisting the Board in independent review of financial reporting processes, internal control, and risk management systems, and overseeing the audit process[138](index=138&type=chunk) - The Committee has reviewed the unaudited interim results for the period and the significant accounting policies and standards adopted by the Group[139](index=139&type=chunk) [Corporate Governance Code](index=43&type=section&id=Corporate%20Governance%20Code) The Group is committed to high corporate governance standards and has complied with all applicable code provisions of the Listing Rules' Corporate Governance Code for the period - The Group has adopted the Corporate Governance Code set out in Appendix C1 to the Listing Rules[140](index=140&type=chunk) - For the six months ended June 30, 2025, the Company has complied with all applicable code provisions of the Corporate Governance Code[140](index=140&type=chunk) [Standard Code for Securities Transactions by Directors](index=44&type=section&id=Standard%20Code%20for%20Securities%20Transactions%20by%20Directors) The Company adopted the Standard Code for Securities Transactions by Directors, and all directors confirmed compliance during the period with no breaches found - The Company has adopted the Standard Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix C3 to the Listing Rules[141](index=141&type=chunk) - All Directors confirmed compliance with the Standard Code and the Securities Dealing Code for the six months ended June 30, 2025[141](index=141&type=chunk) - No breaches were identified during the period[141](index=141&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=44&type=section&id=Purchase,%20Sale%20or%20Redemption%20of%20the%20Company%27s%20Listed%20Securities) The Company repurchased 7,552,000 shares for HKD49,143,390 to enhance shareholder returns, and the trustee purchased 2,120,000 shares under the share award scheme - During the period, the Company repurchased a total of **7,552,000 shares** on the Stock Exchange for a total consideration of **HKD49,143,390**, which will subsequently be cancelled[142](index=142&type=chunk) - The share repurchases aim to enhance shareholder returns and reflect the Company's confidence in its business prospects[142](index=142&type=chunk) - Under the Share Award Scheme, the trustee purchased **2,120,000 shares** at a total consideration of approximately **RMB11.1 million**[143](index=143&type=chunk) [Publication of Interim Results Announcement and Interim Report](index=45&type=section&id=Publication%20of%20Interim%20Results%20Announcement%20and%20Interim%20Report) This results announcement is published on the Stock Exchange and the Company's website, with the 2025 interim report to be dispatched to shareholders by September 30, 2025 - This results announcement has been published on the Stock Exchange and the Company's website[144](index=144&type=chunk) - The Company's 2025 interim report will be dispatched to shareholders and posted on the website on or before September 30, 2025[144](index=144&type=chunk) [Acknowledgement](index=45&type=section&id=Acknowledgement) The Company expresses gratitude to its Board, management, employees, shareholders, customers, government, suppliers, partners, and advisors for their support and contributions - The Company expresses its sincere gratitude to the Board, management, and all employees for their diligent work, loyal service, and contributions[145](index=145&type=chunk) - Sincere thanks to shareholders, a vast number of owners and customers, government, suppliers, business partners, and professional advisors for their continuous support to the Group[145](index=145&type=chunk)

Core Viewpoint - The property service industry is facing significant challenges due to a deep adjustment in the real estate market, with a notable decline in IPO activity and increasing financial asset impairment issues affecting profitability [1][3]. Group 1: Market Trends - In 2025, the overall revenue growth rate of the property service industry is expected to decline, with significant performance differentiation among companies [3]. - The first half of 2025 has seen a drastic drop in IPO activity within the property sector, with only Aolian Services submitting a prospectus to the Hong Kong Stock Exchange [3]. - The ongoing economic downturn and declining housing asset values have led to a "discounted property fee for vacant houses" trend, with multiple cities announcing reductions in property fees for unoccupied homes [3]. Group 2: Financial Performance - As of June 30, 2025, the Hang Seng Property Services and Management Index has increased by 11%, while the Hang Seng Index has risen by 20%, indicating that property management stocks are underperforming compared to the broader market [4]. - The average stock price increase for 40 tracked Hong Kong property companies was 7.71% in the first half of 2025, with a significant recovery in valuation, as the price-to-earnings ratio (TTM) rose from 5.09 to 10.62 [4]. - Notable stock price increases were observed in companies such as Zhong An Smart Life (+108.38%), Deshan Property Investment Services (+39.29%), and China Resources Mixc Life (+35.96%) [4]. Group 3: Market Capitalization and M&A Activity - As of June 30, 2025, there are 38 Hong Kong property companies with a market capitalization of less than 1 billion HKD, representing 63% of the listed property companies [5]. - The number of companies engaging in share buybacks has decreased from 10 to 8, with a total buyback amount of 234 million HKD, down 35.24% year-on-year [5]. - The property sector has seen a decline in merger and acquisition activity, with only 18 public M&A cases reported in the first half of 2025, primarily aimed at expanding business scale and consolidating regional advantages [5].

Market Overview - Hong Kong stocks experienced volatility, with the Hang Seng Index closing down 0.21% at 25,122.9 points and a total turnover of 278.2 billion HKD [1] - The Hang Seng China Enterprises Index fell 0.3% to 9,006.23 points, while the Hang Seng Tech Index decreased by 0.67% to 5,542.03 points [1] Blue Chip Performance - China Resources Beer saw a significant increase of 6.24%, closing at 28.28 HKD, contributing 4.24 points to the Hang Seng Index [2] - The company reported a revenue of 23.942 billion RMB, a year-on-year increase of 0.83%, and a net profit attributable to shareholders of 5.789 billion RMB, up 23.04% [2] - Other notable blue chips included Zhongsheng Holdings, which rose 8.29%, and Hansoh Pharmaceutical, which increased by 4.75% [2] Sector Performance - Large tech stocks showed mixed results, with Tencent up 0.94% and Alibaba down 0.25% [3] - AI application stocks performed well, with Zhihu-W rising 23% and Fenbi increasing by nearly 14% [3] - The property management sector was active, with Wanwu Cloud rising 7.19% and Sunac Services increasing by 5.18% [4][5] Earnings Reports - Wanwu Cloud reported a revenue of 18.14 billion RMB, a 3.1% year-on-year increase, and a core net profit of 1.32 billion RMB, up 10.8% [5] - Kancheng Pharmaceutical reported a revenue of 1.569 billion RMB, a 23.7% increase, and a net profit of 498 million RMB, up 24.6% [8] - Li Auto announced a revenue of 24.25 billion RMB, a 174% increase, with a gross margin of 14.1% [9] Notable Stock Movements - Dongfang Zhenxuan experienced a significant drop of 20.89%, closing at 34.32 HKD, following rumors regarding its CEO [12] - Gilead Sciences saw a decline of 15.01% after announcing a share placement and a new share subscription at a discount [13]

Group 1 - Midea Real Estate (03990) expects a profit increase to 350 million yuan for the first half of the year, driven by new business segments from asset distribution and development services [1] - Tongcheng Travel (00780) reported a 6.3% rise post-earnings, with adjusted net profit of 770 million yuan, exceeding expectations by 33% [1] - Country Garden (02007) shares rose over 4% following strong support for its offshore debt restructuring, with the coordination committee holding 49% of the total loan principal [1] - Kelun-Botai Biopharmaceutical (06990) saw a 4% increase in shares after reporting mid-year revenue of 950 million yuan, with efficient cash collection from receivables [1] Group 2 - Dongfang Zhenxuan (01797) shares surged nearly 12%, with a 300% increase since early July, despite a 30% year-on-year revenue decline in Q4 FY25 [2] - Zhihu-W (02390) shares rose over 16% ahead of its earnings announcement, with long-term funds increasing their holdings [2] - Jinyang New Energy (01121) shares increased nearly 1% as profitability for BC products is expected to improve with the ongoing recovery in the photovoltaic industry [2] - China Rare Earth Holdings (03788) shares jumped over 11% after announcing plans to spin off its gold business for a Hong Kong listing [2] Group 3 - Weimob Group (02013) shares rose over 7.5% ahead of its mid-term earnings report, with expectations of business recovery by 2025 due to improved consumer sentiment [3] Group 4 - iQIYI (IQ.US) shares surged 17.09% following the release of a new drama series, achieving significant viewership [4] - NIO (NIO.US) shares increased by 1.25% ahead of the launch of the new ES8 model and expansion into new markets [5] - Weibo (WB.US) shares rose 3.3% after exceeding earnings expectations, with revenue growth of 1.6% year-on-year [5] - Kingsoft Cloud (KC.US) shares increased by 5.38% as it prepares to release its earnings report, with expectations of revenue growth [5]

Group 1 - The core viewpoint of the article highlights the positive market performance of Country Garden Services, with a stock price increase of 5.12% to 7.59 HKD per share and a trading volume of 1.3 billion HKD [1] - Country Garden Services Holdings Limited specializes in providing professional services for residential, commercial properties, office buildings, industrial parks, government buildings, hospitals, schools, and other public facilities [1] - To enhance service effectiveness and meet customer needs, the company actively explores new services, develops new technologies, and builds a diversified value service brand [1] Group 2 - As of the 2024 annual report, Country Garden Services reported a total operating revenue of 43.993 billion RMB and a net profit of 1.808 billion RMB [2]

碧桂园系早盘走高，截至发稿，碧桂园(02007)涨3.16%，报0.49港元；碧桂园服务(06098)涨3.46%，报 7.47港元。 消息面上，碧桂园公告，已经与协调委员会协定重组建议主要条款，协调委员会占现有银团贷款本金总 额的49%。协调委员会的成员已加入重组支持协议，或正在进行内部程序以取得加入该重组支持协议的 相关批准。公司宣布，占第2类债务本金总额逾77%的持有人已加入重组支持协议。 ...

本文源自：金融界 作者：行情君 碧桂园服务控股有限公司的主营业务是为住宅、商业物业、写字楼、产业园、政府大楼医院、学校及其 他公共设施等提供专业服务。为提高服务效果和满足客户需求，公司积极开拓新服务，发展新科技，打 造新生态，构建多元价值的服务品牌。 截至2024年年报，碧桂园服务营业总收入439.93亿元、净利润18.08亿元。 8月18日，碧桂园服务(06098)盘中上涨5.06%，截至10:21，报7.27元/股，成交1.18亿元。 ...