A：In the management of Ocean Services, the attendees of this performance release conference included Mr. Yang Deyong, co-chairman and executive director of the Board of Directors of Ocean Services, Mr. Hou Min, executive director and CEO, Ms. Zhu Geying, executive director and CFO, and Mr. Chen Zhiwei, general manager of the Operations and Management Department. In the first half of 2025, Ocean Services achieved revenue of 1.39 billion yuan, a year-on-year decrease of 3.5%. This decrease was mainly due to the company's adjustment of non-owner value-added services with poor cash flow in order to enhance risk resistance, resulting in the proportion of revenue from basic property management services increasing to 74.4%. In addition, revenue from third parties reached 93.4%, and business independence continued to consolidate. At the same time, the company managed a total area of 93.5 million square meters, with the proportion of managed area in first and second-tier cities reaching as high as 82.6%, and the average property fee remaining at a high level in the industry, highlighting the company's leading advantage in the field of high-quality property management.

A：The expansion of overseas services has effectively been released. In the newly added contract area, the proportion of expansion area reached 96%, a month-on-month increase of 15 percentage points. In July, the company won bids for 31 projects with a total contract amount of 260 million yuan, including 9 projects with a contract amount exceeding 10 million yuan. At the same time, by reaching a national property service cooperation agreement with BYD, the company has verified the effectiveness of the large-customer-following strategy. Additionally, the company continues to build specialized service capabilities in various business formats, including a 7% proportion of commercial business formats, a 19% proportion of government, school, and hospital business formats, and has formulated targeted defense systems and zero interference protection mechanisms, as well as providing value-added services through property management to promote investment in industrial parks.

A：Overseas Services connects the business lines of project management, customer service, order and environment through the butler system, promotes the construction of service-oriented organizations, and tilts human resources towards frontline services. The company empowers frontline employees through service standard pocket books, skills competitions, and 100-day training, to enhance service capabilities. During this period, the company visited 150,000 households, updated customer profiles, organized 476 customer meeting days, face-to-face understanding of customer demands, improved service details, and conducted more than 1,500 community activities, covering more than 400,000 households, building a warm community. These efforts have resulted in a customer satisfaction score of 87, further consolidating the company's advantage in the commercial sector.

A：By 2025, the total construction area of contract buildings for oceanic service providers will reach 8.874 million square meters. Property management service revenue will be 170 million RMB, accounting for 16.2% of the total property management basic service revenue. The proportion of new third-party commercial contract areas has reached 55.4%, and breakthroughs have been made in value-added services, reshaping the development path of community value-added services through customer follow-ups for expansion and home verification. During this period, community value-added service revenue has increased by 200-250 million RMB year-on-year, achieving positive growth, and expanding business scale through optimizing the supply chain and improving paid maintenance services.

A：Non-owner value-added services, through market-oriented and professional development, generated approximately 110 million yuan in revenue, a year-on-year decrease of 24%, while cash flow increased by 4.6% compared to the same period last year. At the same time, property engineering services are focusing on expanding third-party services, strengthening systematic solutions capabilities and low-cost operational advantages, and adding several benchmark projects. In addition, in terms of ESG, Greentown Services practices green operations, listens attentively to customer needs, fulfills social responsibilities, promotes sustainable development, and has achieved certain results in terms of customer responsibilities and social responsibilities.

A：Due to the continuous contraction of non-owner value-added services, the revenue scale of Greentown Services during the reporting period was approximately RMB 1.39 billion, a decrease of 3.5% year-on-year. Among them, property management service revenue decreased by approximately 2% year-on-year, community value-added service revenue increased by 2% year-on-year, while non-owner value-added service revenue decreased by 24% year-on-year. Due to factors such as an increase in inventory impairment provisions and adjustments to the recognition principles of related party revenue, the gross profit margin fell to 11.7%.

A：The main reason for the decline in the company's profit performance in the first half of the year is the significant impairment provision on the books. For risk management considerations, the company increased the impairment provision ratio for accounts receivable, inventory, goodwill, and other assets, which had an impact on net profit of 470 million RMB, an increase of 238% compared to the same period last year. This directly led to a shift from positive to negative net profit in the first half of the year, with a net loss of 310 million RMB. In addition, in order to ensure service quality and brand reputation, the company continues to increase investment, which has also had a certain impact on the comprehensive gross profit margin in the short term due to these prior investments.

A：In the first half of the year, the company systematically restructured its external expansion decision-making mechanism, clarified the standards for project and city categories, and decentralized decision-making authority, effectively improving the response speed and execution efficiency of external expansion decisions. At the same time, the company deepened its binding with key customers, realized diversified business breakthroughs by leveraging the advantages of development end, and achieved a dual increase in the scale and quality of external expansion. In the first half of the year, the company won 31 new bid projects with a total contract amount of 260 million yuan, including nine projects worth over ten million yuan, achieving a qualitative breakthrough in the expansion ability of non-residential sectors. In the second half of the year, the company will continue to promote external expansion work in accordance with the above-mentioned strategy and standards.

A：In the second half of the year, the company will take a series of measures to achieve high-quality sustainable growth. First, we will smoothly transition from high-speed growth to high-quality sustainable growth, ensuring the expansion of our capabilities while strengthening the strategic direction of our strategic center. Second, by outputting standardized capabilities and leveraging the word-of-mouth effect of benchmark projects to reduce customer acquisition costs and enhance market competitiveness. Additionally, the company will implement a system of overall expansion to strengthen organizational support and incentive mechanisms, closely linking the performance of management personnel with expansion goals, improving incentive realization timeliness, and stimulating the vitality of frontline teams. At the same time, optimizing channel and resource integration, deepening synergy between real estate and property management, establishing a light-asset information coordination group, connecting customer resource pools, and expanding channels to acquire high-quality resources. Finally, plans to replicate successful experiences in key cities, utilize local supply chain advantages, and standardize proposal processes to shorten contract signing cycles and improve operational efficiency.

A：In the first half of this year, the company's total impairment amount was 700 million yuan, mainly concentrated in three aspects: inventory, goodwill, and accounts receivable. Against the backdrop of a weak macroeconomic recovery, insufficient consumer confidence has led to a decline in real estate market demand for home purchases, slowing down the pace of inventory turnover for parking spaces. Therefore, the impairment loss on inventory increased to 91.26 million yuan in this period. Additionally, impacted by the downturn in the real estate sector, the company made a prudent assessment of goodwill assets and provisioned 160 million yuan, while the bad debt provision ratio for accounts receivable increased, leading to a growth of impairment losses on financial assets to 220 million yuan. For the second half of the year, the company expects to further increase the level of accounts receivable impairment, but will actively negotiate for the recovery of related party accounts receivable; for non-related party accounts receivable, they will enhance service quality to boost customer willingness to pay, and continue to promote the turnover of parking space inventory. In terms of asset optimization, the company will adopt a refined operating strategy, dynamically classify and manage inventory, prioritize the disposal of low-efficiency and potentially risky assets, pilot asset replacement schemes with no cash outflow, establish a dedicated asset disposal team, and is expected to reduce the current inventory scale and improve asset structure within the next 1 to 2 years.

A：Facing industry challenges, the company launched a series of special initiatives in the first half of the year, such as the "Listening Action" requiring all levels of management to visit customers monthly to collect feedback, the "Peer Action" allowing middle and back-office staff to be stationed at projects regularly to solve frontline problems, and the "Direct Action" where the management directly communicates with project managers to establish feedback channels and evaluate management efficiency regularly. Through these initiatives, the company proactively visited over 150,000 customers, updated customer classifications and improved needs, completed 49 greening landscape enhancement projects, and held 4,476 homeowner meet-up events to address homeowner demands. In addition, in the mid-year performance sprint action launched in June, all staff members worked together with enthusiasm, achieving a 141% increase in on-time payment projects, accounting for 41% of the total, with both the Beijing and Southern regions achieving historic monthly on-time payment rates. Through the above measures, the company has not only improved service quality but also effectively increased on-time payment rates to cope with industry challenges.

A：In the first half of the year, we reshaped the development path of community value-added services, including: in terms of life services, we promoted scale growth through explosive product strategies and channel development, successfully achieving tens of millions in explosive product sales, and establishing 30 community water stations. We also cooperated with top industry companies to reduce procurement costs; in terms of spatial resources, we achieved comprehensive coverage of facilities such as express cabinets, drinking water machines, and motor vehicle charging piles, and plan to accelerate the business implementation of non-motorized vehicle charging piles; in terms of home services, we built a paid maintenance service system around existing houses, effectively transforming it into renovation services; in terms of house economy, we expanded storefront scale and enhanced transaction ability, added ten real estate brokerage stores, and created model stores to strengthen online self-media operations.

A：In the future, the company will shift its strategic focus from scale dependence to service-driven development, with services at the core, providing value-for-money basic property services, building a service ecosystem around the needs of homeowners, and enhancing the stickiness of high-frequency characteristic services. Strengthen professional service output, expand the market with benchmark project experience and advantages in green energy, equipment operation, and maintenance technology. At the same time, the company will strengthen service response through the hub of butlers, promote intelligent operation, study customer needs, build a user-centric community culture and service system, and increase income size through external expansion and community value-added services to optimize asset structure, accelerate asset turnover, and strictly adhere to the lifeline of operating cash flow. In terms of cash flow management, the company will achieve high-quality sustainable development through innovative collection mechanisms and supply chain cost control.