A：Today's meeting is divided into two sessions, the first is the performance description session, followed by the question and answer session.

A：Well, 2025 is a year for the property management industry to go through the cycle, and we have maintained some resilience and growth on different sides of the business data. The overall revenue reached 1.54 billion billion yuan, up 4.0 year-on-year; the proportion of third-party projects increased to 84%, and the gross profit was 0.46 billion billion yuan. Although the gross profit margin decreased by 10.7 percentage points compared with the same period last year, the scale net profit still increased by 4.7 percentage points and remained at the 14% percentile level. In the company's business structure, the proportion of property service income increased from 56.6 to 61.6, the proportion of living service income also increased, while the proportion of commercial operation income decreased by 2.8 percentage points. The proportion of non-owner value-added business fell to 6.8 per cent, and overall, property services contributed 50 per cent of profits, life services contributed nearly 30 per cent, commercial operations contributed 13.5 per cent, and non-owner value-added contributed less.

A：In terms of gross profit, property services contributed 50% of the profits, living services contributed nearly 30%, commercial operations contributed 13.5, while the proportion of non-owner value-added business profits decreased. The company has shown strong strength in many dimensions, such as 297 honors in more than 300 projects, and has been promoted by 4 in the industry professional certification, ranking 14th in the top 100 welfare companies, and has also been rated as a sample Benchmarking enterprises and leading enterprises in Chengdu.

A：The core lies in the company's continuous attention and recognition at the market end, with the contracted contract amount reaching 0.73 billion yuan, up 20% year-on-year. The deep-plowing strategy has been effective, with the proportion of contracts signed in deep-plowing cities as high as 95%. Among them, the contract amount based on strategic cooperation was 0.34 billion billion yuan, up 58.1 percent year-on-year, showing lower market costs and stronger sustainability.

A：In the process of market expansion, per capita management and per capita income have increased to varying degrees, but due to the decline in the scale of net profit, per capita profit has dropped by 2.5 percentage points. At the same time, under the company's concept of property owners, the single-item revenue is 40 yuan per square meter, which is much higher than the industry average of 30 yuan. The unilateral profit reached 6.2 yuan per square meter, which is better than the industry average of 1.5 yuan, reflecting the comprehensive benefits.

A：The company in the brand sound volume and new media communication performance leading, sound and other new media channels of the industry sound volume is far ahead, the full year 15 videos broke millions of views. In addition, the company's sound operation has brought about an increase in shareholder returns, with the dividend rate increasing from 35% in 2021 to 70% in 2025, with a cumulative dividend of RMB 0.56 billion and a dividend yield of 10.4.

A：In 2025, the company's operating net cash flow was about 0.212 billion yuan, up 31% year-on-year, thanks to the increase in advance receipts from continued receivables collection and customer praise. In the past three years, the company's revenue growth has stabilized at about 10%, and net profit has remained flat.

A：On the market side, the company achieved an all-time high contract size of $0.7 billion in 2025, up 20% from the same period last year. Among them, the proportion of high-margin business contracts increased significantly, especially in property services and commercial operations third-party expansion, accounting for 163 and 32% respectively. At the same time, the company adheres to the urban deep-cultivation strategy, 95% of the newly signed projects from deep-cultivated cities, especially in the southwest and East China region accounted for 82.7 percent of the revenue, further enhancing the concentration.

A：In the field of property services, mature property services in 2025 is the largest contributor to the company's revenue management level, with unpaid revenue increasing by 13.2, while the overall property services gross margin is stable at 24.3, thanks to scientific management, digital first to reduce costs and the choice of high-energy cities with high property fees and other advantages.

A：Despite pressure across the property sector, we set a new high in customer satisfaction at 92.6 percent in 2025. In order to ensure the quality of service, we announced six major commitments to customers, and through the sunshine supervision mechanism, each commitment will be refined online to a small program, subject to the supervision of the owner. At the same time, we use digital systems to conduct quality checks on detailed data to ensure that our commitments are truly fulfilled.

A：2025 is an important year for the advancement of high-end services. We have established our own high-end service system-Dlife. The system originated from the good products of D10, and combed out the standard of high-end good service. Among them, "super butler" is a major feature of us. We attach importance to butler training and asset management, ensure service quality through strict quality control and advanced intervention, and strive to achieve a 50-year mobilization plan so that owners can foresee the future in advance. In addition, we have also launched customized high-end service facilities, including housing centers, to cultivate good housekeepers, manage assets, and enhance the city's high-end service status. These initiatives have received positive feedback on customer satisfaction, with high-end services increasing by 6 points year-on-year in 2025, reaching a record high, and achieving significant growth in the average premium rate of property fee unit price in several cities.

A：In the case of the economic environment, our life service sector still maintained a triple jump in revenue, gross margin and gross profit ratio. This is due to our deep cultivation of each property service project and customer, and the re-purchase rate of C- end and B- end customers has increased significantly, driving the stability of community life services and the growth of online and offline retail and catering services. At present, the life service sector contributes about 30% of the company's profits, which is superimposed with property service profits, forming a good high-frequency effect.

A：Science and technology is an important support to improve business efficiency. Our digital system has entered a stable output phase, improving customer perception and service delivery efficiency through major inputs and the support of proprietary systems. In 2025, we implemented a human-machine collaboration strategy for unmanned operations in smart universities, and achieved application results at the level of cleaning, patrol, distribution and aerial work robots, improving problem resolution, response rate and work efficiency. At the same time, through the AI inspection technology, combined with camera photography and picture recognition, to achieve rapid dispatch processing, effectively reduce the cost and improve the management efficiency.

A：25 years of new signing 0.73 billion, of which the high gross margin business signed the 0.23 billion, the year-on-year growth nearly doubled. 95% of the contracts are concentrated in deep-cultivated cities, ensuring the efficiency of external expansion. 25-year current conversion income 84.52 million, with an average contract period of three years. Gross margins on outsized projects continued to rise, with an average outsized gross margin of 10.8 per cent over 25 years, up from 9.5 per cent over 24 years. For projects that do not meet expectations, the company will resolutely withdraw. The unilateral revenue and profit of the project outside the pipe have increased year by year, exceeding the industry average.

A：There are two main reasons for the decline in net profit in 25 years: first, changes in business structure, non-owner value-added services and commercial operations gross profit is high but has been withdrawn or reduced, resulting in a decline in the proportion of high gross margin business. Another important factor is the impact of non-recurring gains and losses, with exchange losses of more than 10 million due to the downward exchange rate of the United States dollar, as well as an increase in credit impairment losses and an increase in the size of accounts receivable leading to an increase in bad debt losses. The company attaches great importance to improving the level of profitability in order to maintain the high premium capacity of the service.

A：In terms of the absolute value of the absolute size net profit, Hundred 14 believes that the company still has a very good level of profitability. Management resilience is still in place. In the future, we will continue to adhere to cost-side control, such as deep ploughing strategy and replication of excellent service mode (ping efficiency strategy). At the same time, we will use science and technology to reduce management costs and improve cost management capability, so as to achieve quality and price matching, high quality and excellent service, and encourage owners to be willing to pay property management fees through high satisfaction and good cash. Therefore, we are confident in easing the downward pressure on net profit and achieving sustainable development.

A：In the past five years, the company has continued to maintain a good dividend ratio, with a total dividend amount of about 0.56 billion, mainly from operating cash flow. Operating cash flow in 2023 increased 31% from the previous year to 0.21 billion, covering a full dividend multiple of approximately 1.5 times for the year and a remaining unpaid dividend multiple of approximately 3.6 times. The company currently has a 0.96 billion of cash and cash equivalents, which is sufficient to cover business inputs, mergers and acquisitions and other expenses, proving that the company's dividend security cushion is thick.

A：In the first quarter, the company's market expansion results were brilliant, with a contract amount of 0.275 billion, and 40% of the target 0.7 billion for the whole year has been completed. The company insists on quality growth, access standards are higher than the market average, based on the "property + business + life services" one plus N integrated service solution differentiation strategy, there is a specific choice of customer preferences. The annual target is still set at 0.7 billion. It will focus on customers with high income potential, large-scale management and market influence. It will deeply cultivate Chengdu, Kunming in Southwest China, Suzhou, Wenzhou in East China and other cities, and tend to obtain medium and high-end residential projects. At the same time, it will strengthen the resource tilt of property plus comprehensive service projects and the attention of commercial operation and life service business.

A：While the industry is under pressure to improve profits from living services revenue, the company believes the ceiling is far from being touched. The company continues to optimize its life service capacity and proportion, and still achieves growth in a pressurized environment. The company takes advantage of the offline provision of just-needed services, will be fine business specialization, through the combination of offline and online, focusing on the property plus model, coverage and depth there is still a lot of room for development. In addition, the stable customer base, the stickiness brought about by high satisfaction, and the gradually increasing repurchase rate and customer unit price are all important factors driving the continued growth of life services. Therefore, we are optimistic about the further improvement of the company's life service revenue and profit.

A：The company attaches great importance to the development of non-residential industry, the current property services revenue non-residential industry contribution of nearly 45%. In recent years, the company through the acquisition of Mingyu business management, with the state-owned platform company to establish a joint venture company and market-oriented expansion and other ways to continue to expand the non-residential business, adhere to the "property + business + life services" one plus N differentiated service program, this program by the non-residential business customers of all ages.

A：The company did lay out AI application scenarios and made many application attempts in 2025. In terms of management costs, AI and software robots have helped solve many problems. Through AI quality inspection, smart training, and AI sparring and question answering on the internal management link, not only the professional capabilities of management and employees have been improved, but also the personnel organization The structure reduces management costs and realizes the efficient operation of the entire management link. At the same time, in the service scenario, the company has a number of projects using human-machine collaboration model, machines instead of labor, successfully reducing the cost of property costs and improving gross profit. Next, the company will continue to promote these technologies and models, which are expected to bring greater cost savings and business development opportunities.

A：Although the revenue and profit of the commercial business segment decreased in 2025, mainly due to the disposal of two assets held by New Hope, the company also signed contracts to 0.23 billion commercial third-party businesses, showing good market expansion momentum. In the future, the company remains optimistic about the development of the commercial sector, especially in the inventory of assets under pressure cycle, with high-quality operating capacity of the company can obtain rental income premium. The company will take the operating capabilities of office buildings, community commerce, and professional markets as its advantages, combined with the territorial resources of the city, and form differentiated competitiveness through the pattern of commercial properties, commercial life services, and commercial industry supporting facilities to obtain more commercial operations Service opportunities. Especially in high-energy cities, such as Chengdu, despite the pressure on the consumption environment, consumption vitality still exists. The company hopes to achieve higher unilateral returns and overall growth by strengthening its business service capabilities and expanding its business business to achieve a combination of high-efficiency business operation logic and comprehensive thinking of property services and life services.