Core Viewpoint - Shimao Services emphasizes a long-term strategic approach focused on quality service and brand value enhancement, despite facing industry adjustments and intensified market competition [1][10]. Financial Performance - For the first half of 2025, Shimao Services reported revenue of RMB 3.62 billion, gross profit of RMB 709 million, and core net profit of RMB 282 million, indicating a temporary fluctuation in core net profit due to proactive business transformation [1][3]. - The company’s basic property service revenue reached RMB 2.81 billion, accounting for 77.7% of total revenue, reflecting stability in its operational foundation [3]. Market Expansion - Shimao Services achieved a significant increase in contracted area, with 40.1 million square meters added, representing a year-on-year growth of 126.6%, and a new annual revenue potential of RMB 1 billion, up 66.7% [4]. - 74% of new projects are located in key urban clusters such as Beijing-Tianjin-Hebei, Yangtze River Delta, and Greater Bay Area, with 73% in first and second-tier cities [4]. Business Diversification - The company has seen substantial growth in various service segments, including community value-added services (up 8.5%), rental and sales services (up 32.6%), and new retail value-added services (up 188.9%) [3][5]. - Shimao Services maintains a leading position in property management for universities and healthcare logistics, enhancing its reputation in high-barrier sectors [5]. Service Quality and Innovation - The company is implementing a "Heart Gravity Live+" quality renewal plan, focusing on standardization and digitalization to enhance service quality and operational efficiency [6]. - In non-residential sectors, Shimao Services has introduced an AIS smart energy management platform to improve operational efficiency and service response times [7]. Talent Development and Operational Efficiency - Management expenses were reduced to RMB 340 million, with a 35.2% increase in revenue per employee, showcasing improved management efficiency [8][9]. - The company is investing in talent development through a structured training program, ensuring a high-quality service workforce [9]. Long-term Strategy - Shimao Services plans to continue its long-term strategy centered on "service first, quality priority," focusing on creating a friendly and integrated community covering all age groups [10].