Core Viewpoint - Xing Sheng Commercial (6668.HK) demonstrates resilience through steady operations, cost reduction, and refined management, showcasing its growth potential in the commercial property service sector in the Greater Bay Area [1][2]. Financial Highlights - The company reported revenue of approximately 284 million yuan, with 74.9% coming from the Greater Bay Area, indicating a strong market position [3]. - Management expense ratio decreased to 9.3%, down 0.8 percentage points year-on-year, reflecting effective cost management [3]. - Net profit attributable to shareholders reached 87 million yuan, supported by a cash balance of 1.368 billion yuan, enhancing the company's financial stability [3]. - The interim dividend declared is 0.05 HKD per share, with a total cash dividend of 586 million HKD over five years, highlighting a commitment to shareholder returns [3]. Operational Performance - As of June 30, 2025, the company serviced 52 commercial property projects across 21 cities in China, with a total contracted area of approximately 2.65 million square meters [5]. - Same-store sales grew by 11.4% and customer traffic increased by 4.4% in the first half of the year, with an average occupancy rate of 92.5% [5]. - The company has initiated new collaborations with key brands in Shenzhen, enhancing its operational capabilities [5]. Market Environment - The Greater Bay Area's consumer market is experiencing a structural recovery, with tourism and local consumption showing positive trends [6]. - Continued consumer promotion policies and infrastructure improvements are expected to enhance the shopping center and commercial complex growth potential [6]. Q&A Insights - The company aims to balance short-term shareholder returns with long-term growth, indicating a cautious approach to dividend increases [9]. - Existing projects are showing growth, while new projects in the Greater Bay Area are expected to yield results soon [10]. - The company is exploring new growth points through careful investment in its core business and is open to new project opportunities [11]. - Management efficiency is being enhanced through refined management practices and team building, focusing on innovation and employee engagement [12][13]. - Upcoming projects include several new openings in Shenzhen and Nanjing, expected to launch by the end of the year [14]. - The company is researching asset securitization opportunities to further enhance its financial strategies [15].

Core Insights - The real estate industry is undergoing a transformation, with a focus on creating living spaces that meet evolving human needs, as highlighted by the concept of "good houses" proposed for 2025 [2] - Xinghe Holdings, with 37 years of industry experience, is positioned as a leader in this transformation, emphasizing quality and innovative projects that enhance the relationship between architecture and human living [2] Group 1: Quality Control and Delivery - Xinghe Holdings has demonstrated strong delivery capabilities, completing 31 deliveries in the past year, providing over 18,000 quality housing units, with several projects delivered ahead of schedule [3] - The company has been recognized in the "2024 China Real Estate Super Delivery Power TOP24" list, reflecting its commitment to high-quality delivery and brand reputation [3] - Xinghe has established a comprehensive quality control system, including the "Xing Development" design system and "Xing Delivery" system, ensuring rigorous standards across various aspects of construction and delivery [4] Group 2: Community and Service Innovation - The delivery of homes is viewed as the beginning of a new chapter in quality living, with Xinghe focusing on enhancing community services and living experiences beyond mere physical structures [5][6] - Xinghe has developed a soft ecosystem that transforms cold architectural spaces into vibrant living environments, fostering a sense of belonging and community among residents [6] - The company has initiated various community-building activities, such as sports events and cultural exhibitions, to strengthen neighborly relationships and enhance overall life satisfaction [6][7] Group 3: Strategic Positioning and Differentiation - As the real estate sector faces challenges, Xinghe Holdings has adopted a multi-faceted development strategy, creating competitive barriers through product innovation and service upgrades [8] - The company has achieved significant recognition in commercial real estate, ranking among the top 10 in the sector, and operates a diverse range of commercial properties that enhance urban vitality [8] - Xinghe's industrial division has integrated urban development with capital empowerment, establishing itself as a key player in the industrial real estate market, particularly in the Greater Bay Area [9]