Core Insights - The company reported a slight increase in revenue and net profit for the first half of 2025, with revenue reaching 1.858 billion and net profit at 180 million, reflecting year-on-year growth of 0.02% and 2.29% respectively [1] Industry Analysis - The elevator industry is experiencing a mixed situation characterized by a decline in the incremental market due to slowing demand in the real estate sector, while the stock market is seeing growth in niche areas such as tourism, villa, and home elevators [1] - The industry has entered a large-scale renovation and upgrade cycle, leading to a stabilization of the overall market size [1] - Differentiated strategies and the exploration of the stock market are crucial for company growth in this evolving landscape [1] Company Strategy - The company is focusing on enhancing channel development and market penetration, aiming to improve coverage in county markets and project participation [1] - Efforts include optimizing agent incentive policies, upgrading sales strategies, and enhancing customer service systems to improve opportunity acquisition and conversion efficiency [1] - The company has seen an increase in the conversion rate of signed agent orders year-on-year, providing solid support for stable revenue [1] Service Strategy - The company is implementing a service strategy aimed at the entire elevator brand market, focusing on increasing revenue from maintenance and repair services, and positioning the after-service market as a second growth curve [2] - This strategy aligns with recent regulatory guidance aimed at improving the safety and management of aging residential elevators, which is expected to release policy dividends for the elevator service and renovation market [2] - The company is poised to accelerate the expansion of its after-service business, leveraging favorable policies to further open up growth opportunities [2]

Core Viewpoint - The Chinese elevator industry is facing significant transformation pressures as the market reaches a turning point, with a shift from new installations to a focus on service, highlighting the need for policy and innovation to unlock the potential of the 300 billion market in the post-service era [1][2][4]. Market Trends - China's elevator production is projected to increase from 1.17 million units in 2019 to nearly 1.5 million units by 2024, accounting for over 70% of global output [2]. - The new installation market has seen a decline of over 10% in 2023, with some cities experiencing near-zero growth [2][4]. - By June 2025, the production of elevators, escalators, and lifts is expected to drop by 6.2% year-on-year, with a cumulative production of 654,000 units in the first half of 2025, down 6.4% year-on-year [2]. Service Market Potential - The post-service market includes the installation and upgrading of elevators in old residential areas and a substantial maintenance market [4]. - The current elevator stock in China is 11.6 million units, with an estimated 400,000 to 500,000 units requiring upgrades in the next 1 to 5 years [6]. - The post-service market is projected to be worth approximately 300 billion to 320 billion yuan over three years, with an annual scale of about 100 billion yuan [6]. Industry Transformation Challenges - The industry must navigate three key challenges to transition from a production powerhouse to a comprehensive service provider [7]. - The first challenge involves moving from price competition to forming ecological alliances among leading companies in the elevator service sector [8]. - The second challenge is adapting to diverse application scenarios, as the market shifts from a focus on residential elevators to a broader range of applications [11]. - The third challenge is ensuring safety and maintenance throughout the entire lifecycle of elevators, addressing the current imbalance between installation and maintenance [12]. Strategic Recommendations - The industry requires a collaborative effort among government, enterprises, and communities to support a deep transformation towards a comprehensive service model [13]. - Strengthening safety regulations and promoting comprehensive insurance for elevators can enhance service capabilities and public trust [14]. - Building an ecological service network and integrating various stakeholders will be crucial for sustainable growth [15]. - Expanding into global markets and establishing overseas industrial chains can facilitate the transition from a production-focused to a service-oriented industry [16].