Core Viewpoint - Yongsheng Services reported a revenue increase of approximately 2.7% year-on-year for the first half of the year, but net profit decreased by about 19.4%, indicating a situation of revenue growth without profit growth [1][4]. Revenue Performance - Yongsheng Services achieved a revenue of approximately 34.61 billion yuan in the first half of the year, with property management services contributing 26.69 billion yuan, accounting for 77.1% of total revenue, up from 73.1% in the same period last year [2]. - The company has successfully reduced its revenue dependency on Xuhui projects, with the proportion dropping from 29.1% to 23%, while third-party revenue increased from 70.9% to 77% [2]. Business Segmentation - The second-largest revenue source, community value-added services, saw a slight decline to approximately 3.96 billion yuan, down about 0.8% year-on-year, maintaining an 11.4% share of total revenue [3]. - Non-owner value-added services generated approximately 2.7 billion yuan, a significant decrease of about 24.4%, reflecting a drop in demand due to the weak real estate market [3]. - Urban services generated approximately 1.26 billion yuan, down about 15.8%, as the company reallocated resources and exited lower-margin businesses [3]. Cost and Profitability - The cost of Yongsheng Services increased by approximately 6.1% to 28.15 billion yuan, primarily due to business expansion, leading to a gross profit decline of about 10% to approximately 6.45 billion yuan [4]. - The gross margin fell from 21.3% in the previous year to 18.6%, a decrease of 2.7 percentage points [4]. - The gross margins for various business lines also declined, with property management services at 18.5%, community value-added services at 28.2%, and non-owner value-added services at 8.9% [5]. Management Insights - The management expressed concerns over the challenges of transformation, indicating that the process is more difficult than anticipated [5]. - The chairman emphasized the need for a profound transformation to adapt to industry changes and achieve success amid a competitive landscape [5].