Core Viewpoint - The commercial property operation industry faces challenges such as uneven consumer recovery in the first half of 2025, but Xing Sheng Commercial (6668.HK) has demonstrated resilience and growth potential through refined management and regional focus, as evidenced by its robust mid-year financial report [1][5]. Financial Performance - In the first half of 2025, Xing Sheng Commercial achieved revenue of approximately 284 million yuan, with 74.9% of this revenue coming from the Greater Bay Area, highlighting its leading position in regional development [3]. - The company reported a gross profit of approximately 149 million yuan, with an overall gross margin of about 52.3%, an increase of approximately 0.7 percentage points year-on-year, maintaining a high level within the industry [3]. - Management expenses decreased to 9.3%, down 0.8 percentage points year-on-year, contributing to a net profit attributable to shareholders of 87 million yuan [3]. Operational Highlights - As of June 30, 2025, Xing Sheng Commercial provided services to 52 commercial property projects across 21 cities in China, with a total contracted building area of approximately 2.65 million square meters [3]. - The average occupancy rate for the first half of 2025 reached 92.5%, with a vacancy rate of only 7.5%, significantly lower than the typical urban average of 13.8% [4]. - Same-store sales increased by 11.4% year-on-year, and same-store foot traffic grew by 4.4%, indicating a positive cycle of stable occupancy and rising sales [4]. Strategic Initiatives - The company has made significant strides in operational management, including the introduction of influential brands such as Hema Fresh and Calvin Klein, and renovations of key stores to enhance project attractiveness [4]. - Xing Sheng Commercial's long-term stable dividend policy provides a safety net for investors, with an interim dividend of 5.0 Hong Kong cents per share and cumulative cash dividends of 586 million Hong Kong dollars over five years [7]. Market Outlook - The company is well-positioned to benefit from the ongoing economic recovery in the Greater Bay Area, with expectations of new project openings in the second half of 2025 that will inject new vitality into its performance [8]. - The integration of digital and AI capabilities is a focus area for the company, aimed at enhancing operational efficiency and user experience, which may uncover new growth opportunities [9].