Core Viewpoint - Greentown Management Holdings demonstrated strong operational resilience and industry leadership by achieving growth in key metrics despite challenges in the real estate sector and intensified competition in the construction agency market [1][5]. Financial Performance - The company reported revenue of approximately RMB 1.374 billion with a gross margin of about 40% and a net profit of approximately RMB 256 million, resulting in a net profit margin of around 19% [1][6]. - Greentown Management implemented an interim dividend for the first time, distributing RMB 0.076 per share to enhance shareholder returns [1]. Business Development - The share of commercial construction agency services increased to 82%, reflecting a strategic focus on higher-margin segments [3]. - New construction agency fees reached RMB 5 billion, a year-on-year increase of 19%, with a new contracted area of 19.89 million square meters, up 14% year-on-year [3]. - The company achieved a 15 percentage point increase in bid success rates and a 4 percentage point rise in repeat commission rates compared to the end of the previous year [3]. Operational Efficiency - Greentown Management improved operational efficiency through organizational reforms, process optimization, and digitalization, achieving a key milestone on-time completion rate of 92% and reducing marketing expenses from 3.23% to 2.20% [3][4]. - The company’s operating cash flow is gradually recovering, with reduced pressure from contract assets and receivables [4]. Strategic Focus - The company is actively exploring overseas business opportunities while maintaining a strong financial performance and strategic positioning in the domestic market [5][6]. - Greentown Management aims to enhance project quality, management efficiency, and capital recovery through a three-pronged strategy focusing on front-end expansion, mid-end efficiency improvement, and back-end revenue assurance [6]. Market Position - The company has maintained a market share exceeding 20% for nine consecutive years, with a target of 22.1% by the end of 2024 [7]. - As of the first half of 2025, Greentown Management has an order backlog of 126.5 million square meters, with 77% located in core urban areas, indicating strong revenue certainty [7].

Core Viewpoint - The financial report of Greentown Management reflects the latest changes in the construction agency industry, indicating a decline in revenue and profit margins while showing growth in new project areas and fees [2][4]. Financial Performance - Greentown Management reported a revenue of approximately 1.374 billion yuan for the first half of the year, a year-on-year decrease of 17.7% [2] - The net profit attributable to shareholders was 256 million yuan, down 48.9% compared to the previous year [2] - The gross profit margin was around 40%, a decline of 11.5 percentage points from the same period last year [2] - The company achieved a net cash inflow from operating activities of 112 million yuan, an increase of 45% year-on-year [3] - The bank balance and cash amounted to 1.644 billion yuan, an increase of 8% from the end of 2024 [3] - The board declared an interim dividend of 0.076 yuan per share, marking the first interim dividend since the IPO [3] Market Dynamics - The construction agency industry is facing challenges due to a weakened urban investment dividend and a lack of willingness to start projects among some clients [4] - The land acquisition volume of major urban investment clients has sharply decreased, with only 2.2 million square meters acquired in the first half of the year, a 5% decline year-on-year [5] - The industry is experiencing a shift from rapid growth to a phase of adjustment, impacting Greentown Management's performance [5] Strategic Outlook - Greentown Management plans to focus on three areas to improve profit margins: enhancing project quality by selecting high-margin and high-certainty projects, improving operational efficiency, and ensuring timely collection of receivables [7][8] - The company aims to leverage policy and market opportunities to stabilize and optimize profit margins [6][7] - The market concentration is increasing, with top-tier construction agencies expanding their market share while smaller firms are gradually exiting the market [10] Future Opportunities - Greentown Management is exploring overseas construction opportunities in collaboration with China Communications Construction Group, aiming to tap into new markets amid increasing domestic competition [9] - As of June 30, the company had a total order backlog of 12.65 million square meters, with 77% located in major urban clusters [11]

Core Viewpoint - Greentown Management is transitioning from being a leader in China's light-asset real estate development model to a comprehensive service provider throughout the real estate lifecycle, aiming to enhance its leadership in the industry [3] Group 1: Strategic Initiatives - The company is celebrating its 20th anniversary in the entrusted construction business and the 5th anniversary of its listing, indicating a significant milestone in its growth [3] - The newly appointed co-chairman, Geng Zhongqiang, emphasized the importance of leveraging internal resources and management capabilities within the Greentown system to create synergistic effects across various aspects such as resources, capabilities, and talent [3] - Greentown Management plans to introduce more external resources, particularly by connecting with the China Communications Construction Company (CCCC) system, having announced seven cooperation projects with CCCC since 2024 [3] Group 2: Future Outlook - The company aims to explore the potential of an "overseas entrusted construction" model by leveraging CCCC's advantages in infrastructure construction, government coordination, and overseas project expansion [3] - Greentown Management's light-asset business is considered the "main battlefield" and a fundamental aspect of Greentown China's strategic space, with a commitment to maintaining its leading position in scale, brand, and market value [3] - The company will continue to extend its real estate lifecycle service chain, fostering a new pattern of mutual growth between its main business and innovative ventures [3]