Summary of Jinmao Service Conference Call Industry and Company Overview - **Company**: Jinmao Service - **Industry**: Property Management and Real Estate Services Key Points and Arguments Business Expansion and Performance - Jinmao Service has expanded its external area by approximately 8 million square meters, with a total contract amount of 460 million yuan, aiming for a 20% growth compared to last year [2][3] - The company achieved total revenue of 1.78 billion yuan in the first half of 2025, representing a year-on-year growth of 20% [3] - The target for new contracts is set at 300 million yuan, with 85% to 90% of new contracts located in first and second-tier cities, focusing on mid-to-high-end residential properties [3] Delivery and Project Management - China Jinmao is expected to deliver approximately 4 million square meters in 2025, primarily from projects acquired in previous years [4] - The company is actively managing accounts receivable and has exited low-quality projects to improve cash flow and operational quality [8][9] Dividend Policy - Jinmao Service has a dividend payout ratio of 70%, with a dividend yield of approximately 5%, and plans to increase regular dividends to meet investor demand [6] New Business Acquisition - The acquisition of China Jinmao's energy operation and maintenance business is expected to contribute stable profits, with charges per square meter higher than property management fees [7] Quality Improvement Measures - The company is focusing on improving cash flow management and project quality, with a goal of enhancing operational quality and cash flow health [8][10] Financial Health and Cash Flow - The company plans to exit several projects with poor cash flow, which may impact short-term revenue but is expected to improve long-term financial health [10][11] - Jinmao Service's cash flow performance has improved significantly, reaching 530 million yuan, attributed to effective cash return strategies [25] Market Conditions and Challenges - The overall economic environment has negatively impacted the collection rates for property management companies, particularly in residential sectors [23] - Jinmao Service's current market collection rate is between 80% and 85%, with a target of 40% for overdue accounts [24] Community Value-Added Services - The growth of the community value-added service, particularly the Meiju business, is attributed to a low base in 2024 and improved operational capabilities [22] Industry Profitability Outlook - The decline in profit margins is slowing down, primarily due to the clearing of risks from troubled companies, but profitability remains under pressure for many property management firms [26] - A sustainable profit margin of around 15% is considered healthy for the industry [26] Strategic Collaborations - Jinmao Service benefits from support and collaboration with China Jinmao and Sinochem Group, which enhances its project acquisition capabilities [15][19] Cost Structure and Compliance - Approximately 70% of costs for property management companies are labor-related, with compliance to social security regulations being a significant factor [18] Additional Important Insights - The company is leveraging digital transformation to enhance operational efficiency, including the implementation of smart management systems [12] - Jinmao Service maintains a high property management fee level, reflecting its strong management capabilities and brand value [16][19]

Group 1 - The core viewpoint of the article highlights that Times Neighborhood Holdings Limited (09928) reported a mid-year performance for 2025, with revenue of RMB 1.216 billion, reflecting a year-on-year growth of 5.6% [1] - The profit attributable to the parent company reached RMB 63.838 million, marking a significant year-on-year increase of 56.7%, with basic earnings per share at 6 cents [1] - The property management services segment remains the largest source of revenue for the company, contributing approximately RMB 964.3 million, which accounts for about 79.3% of total revenue [1] Group 2 - The increase in property management service revenue is primarily due to the company's active expansion into the third-party market, with the area managed for third-party developers growing by 18.9% year-on-year, resulting in an increase of approximately RMB 54 million, or 5.9% [1] - The company also saw stable growth in community value-added services, with revenue from household services increasing by RMB 15.9 million, representing a year-on-year growth of 11.7% [1] - The profit growth during the period was influenced by the recognition of fair value gains on put options and an increase in net impairment losses on financial assets and contract assets compared to the previous year [1]

Core Insights - Country Garden Services reported a revenue of 23.19 billion yuan for the first half of 2025, representing a year-on-year growth of 10.2% [1] - The core net profit attributable to shareholders was approximately 1.57 billion yuan, with a strong cash position of about 16.47 billion yuan [1] - Community value-added services have become a key focus for property companies, with Country Garden Services generating approximately 2.1 billion yuan from this segment, a 5.3% increase year-on-year, accounting for about 9.1% of total revenue [1] Business Development - The company has implemented a "property + professional" community partner model in its liquor business, enhancing product competitiveness and customer engagement, achieving nearly 4,200 cumulative customers with a repurchase rate of approximately 65% [1] - In the new energy sector, the self-owned brand "Smart Charging Downstairs" provides safe and convenient charging services for two-wheelers, operating around 600,000 charging sockets across over 5,000 communities nationwide [2] - The registered user base exceeds 5.5 million, with over 100 million services provided, and monthly active users surpassing 2 million, indicating increasing user engagement [2] Future Outlook - Country Garden Services aims to continue developing community value-added services, exploring business models and directions to enhance core business capabilities and team building [2] - The company plans to shift its business structure from resource-based to market-oriented operations, driving growth and quality improvements in community value-added services [2]

Core Viewpoint - The company reported a resilient performance in the first half of 2025, with revenue of 8.39 billion and a year-on-year growth of 6.6%, while net profit attributable to shareholders reached 890 million, increasing by 5.3% [1][2] Group 1: Financial Performance - The company did not declare an interim dividend for the first half of 2025 [1] - As of the first half of 2025, the contracted area and managed area were 1 billion and 830 million square meters respectively, indicating a continued strengthening of scale advantages [1] - The revenue from third-party property management services grew by 19.9% year-on-year, with its proportion in basic property management income increasing by 2.5 percentage points [1] Group 2: Market Position and Strategy - The company maintained its leading position in the industry, with sales from related parties, particularly Poly Development, ranking first according to the CRIC list [1] - The company is actively enhancing project selection and density focus, with new third-party project contract amounts increasing by 17.2% year-on-year [1] - The company has optimized its business mix, with third-party projects and non-residential formats accounting for 65.9% and 61.5% of the managed area respectively [1] Group 3: Community Value-Added Services - The company is optimizing its community asset service layout and upgrading public service operations, with a focus on "asset operation services + community life services" [2] - The gross profit margin of community value-added services increased by 1.1 percentage points year-on-year [2] - The company is advancing its public service strategy with a focus on "city branding" and has entered the Shenzhen Xiyong International Coastal Tourism Scenic Area [2] Group 4: Investment Outlook - The financial operations of the company's related party, Poly Development, remain stable, providing reliable support for future operations [2] - The company is expected to maintain its industry-leading position due to ongoing reforms and optimizations in third-party expansion and community value-added services [2] - The company’s EPS forecasts for 2025-2027 are 2.84, 3.00, and 3.15 respectively, with corresponding PE ratios of 12.0, 11.4, and 10.8 times [2]

Core Viewpoint - The company acknowledges challenges faced in the past six months but remains committed to finding solutions and improving performance [2] Financial Performance - For the first half of 2025, the company reported a revenue of 3.46 billion yuan, a year-on-year increase of 2.7% [3] - The net profit attributable to shareholders was 210 million yuan, a year-on-year decrease of 19.4% [3] - The overall gross profit margin decreased by 2.7 percentage points to 18.6% [3] Business Strategy - The company is optimizing its business structure by reducing non-owner value-added services and focusing on a strategy of deepening its presence in 100 key cities [3][4] - The revenue contribution from basic property services was 77.1%, while community value-added services accounted for 11.4% and non-owner value-added services shrank to 7.8% [3] - The company has exited non-core cities to concentrate resources on major cities, with over 95% of its operations now in second-tier cities and above [4] Community Value-Added Services - The management is optimistic about community value-added services, expecting gross margins to return to over 30% [5][6] - The company plans to open over 250 new community express stations by 2025, expanding service coverage [6] - The focus will be on enhancing professional capabilities and brand service to increase customer loyalty [6] Shareholder Returns - The company has a dividend payout ratio of 70% for the first half of 2025, distributing approximately 150 million yuan in dividends [6] - It commits to maintaining a dividend payout ratio of no less than 50% over the next two years [6] Industry Outlook - The company believes in the increasing importance and value of property management in the future [7] - The overall property management industry is currently facing low valuations, but the company's confidence in community value-added services indicates a potential for growth [7]

Summary of Poly Property Conference Call Company Overview - **Company**: Poly Property - **Industry**: Property Management Key Points and Arguments Strategic Approach - Poly Property adopts a strategic follow-up approach, introducing mature technologies to optimize management systems and operations, such as digital command centers and seamless access, positively impacting the property management industry [2][4] Market Positioning - The company positions itself in the mid-to-high-end residential market, expanding into public facilities and state-owned commercial projects while focusing on quality residential projects [2][5] Financial Performance - Accounts receivable are well-controlled, with an expected balance of approximately 2.9 billion in 2024 and operating cash flow exceeding 2.3 billion, covering net profit by more than 1.5 times [2][6] - The company anticipates a 5% growth in revenue and net profit attributable to shareholders in 2025, driven primarily by basic property management [3][19] Non-Residential Services - Non-residential value-added services have declined due to the real estate cycle, but segments like labor services and commercial office management have seen improvements [2][7] - The company has achieved advantages in the non-residential sector by focusing on core cities, key sectors, and quality clients while enhancing collection management [2][8] Risk Management - Poly Property has actively cleared risky projects, achieving a collection rate exceeding 85% in 2024 [2][9] Community Value-Added Services - The company focuses on home services and asset management within community value-added services, identifying opportunities in home renovation and community convenience consumption [2][10] Cash Reserves and Acquisition Plans - The company holds 10 billion in cash, primarily intended for acquisitions, with a focus on residential and state-owned enterprises [2][12] Expansion and Project Quality - In the first half of 2025, the company expanded its projects mainly in public facilities and state-owned commercial sectors, with residential projects accounting for about 10% [3][13] Competitive Strategy - Poly Property leverages its advantages in the convenience consumption sector, focusing on nurturing suitable business opportunities rather than competing directly with strong players [11] Future Growth Expectations - The company expects revenue growth of 5% in 2025, with core property management as the main driver, while non-owner value-added services are expected to decline slightly [19][20] Urban Renewal Opportunities - The company sees urban renewal as a significant growth opportunity, actively exploring projects while ensuring profitability and manageable collection risks [21] Additional Important Insights - The company emphasizes the importance of technology in reducing costs and improving operational efficiency in property management [4] - Despite pressures in the real estate market, the company maintains a positive outlook on the demand for quality services, indicating that premium pricing remains viable [5] - The company is committed to providing sustainable returns to investors, with a potential increase in dividend payout ratios in the future [18]