Core Viewpoint - Company achieved revenue of 1.37 billion yuan in the first half of 2025, a year-on-year decrease of 17.7%, primarily due to intensified competition in the construction agency industry and the lagging effects of the overall downturn in the real estate market [1] - The net profit attributable to shareholders was 260 million yuan, down 48.9% year-on-year, with the decline in profit exceeding that of revenue mainly due to increased industry competition and declining fee rates leading to a decrease in gross margin [1] Revenue and Profit Performance - In the first half of 2025, the company reported operating revenue of 1.37 billion yuan, a decrease of 17.7% year-on-year [1] - The net profit attributable to shareholders was 260 million yuan, reflecting a year-on-year decline of 48.9% [1] - The overall gross margin for the first half was 40.0%, down 11.5 percentage points from the same period last year [1] New Orders and Market Position - The company saw a robust growth in new orders, with a total new construction area of 19.89 million square meters in the first half, representing a year-on-year increase of 13.9% [2] - The new construction project fees amounted to approximately 5 billion yuan, up 19.1% year-on-year, with private enterprises driving the growth [2] - The company maintained its leading position in the industry for new construction area [2] Financial Health and Dividend Policy - The company reported operating net cash flow of 110 million yuan, an increase of 45% year-on-year [2] - As of the end of the first half, the company had cash on hand of 1.64 billion yuan, an 8% increase from the end of the previous year [2] - The company announced its first interim dividend since listing, with a payout ratio of 59% and an annualized dividend yield of approximately 5.7% [2] Earnings Forecast Adjustment - Due to intensified industry competition and the overall downturn in the real estate market, the company has adjusted its earnings forecast, predicting EPS of 0.28, 0.29, and 0.31 yuan for 2025-2027 [3] - Despite the downward adjustment, the company’s leading position in the construction agency sector and steady growth in new orders support a maintained buy rating [3]