On August 28, 2025, SINO-OCEAN SERV (Stock Code: 06677) announced its 2025 interim results. The results announcement was attended by Mr. Yang Deyong, Co-Chairman of the Board of Directors, Mr. Hou Min, Chief Executive Officer, Ms. Zhu Geying, Chief Financial Officer, Mr. Chen Zhiwei, General Manager of Operations Management Department, and Ms. Zhou Ying, General Manager of Capital Markets Department.
In the first half of 2025, SINO-OCEAN SERV achieved a contracted area of 122 million square meters and operating revenue of 1.39 billion yuan. Revenue from third parties accounted for 93.4% of total revenue, further consolidating business independence. The proportion of managed area in first and second-tier cities reached 82.6%, with an average property management fee of 3.2 yuan/㎡/month. The strategic focus on high-tier cities and mid-to-high-end projects drove basic property management income to account for 74.4% of total revenue, significantly enhancing resilience against cyclical fluctuations. Among new third-party contracted areas, 96% came from market-based expansion, further strengthening independence. The adjusted core net profit margin reached 8.3%.
**Enhancing Service Quality Through Customer Experience Focus**
Driven by operational effectiveness improvements focused on customer service, the company conducted proactive visits to 150,000 households and updated customer classifications to better understand user needs. Community facility inspection achieved 100% coverage, with 49 landscape upgrades completed. The company implemented 1,960 homecoming pathway improvement projects and organized 476 homeowner meeting events to directly address owner concerns, along with nearly 100 equipment room experience day activities.
Through deep community operations, over 1,500 activities covered more than 400,000 owners, strengthening customer loyalty and activating value-added service conversion potential. Customer satisfaction reached 87 points, supporting a 0.9 percentage point improvement in property management fee cash inflows and further expanding external development opportunities.
**Market Expansion Achievements**
As of July 2025, the company won 31 projects with a total contract value of 260 million yuan. The company achieved breakthroughs in million-yuan level projects, demonstrating competitive strength in premium projects, with 9 awarded projects having contract values exceeding 10 million yuan.
Deep cultivation of major clients yielded results. In July, the company reached a nationwide cooperation agreement with BYD, covering 4S stores across 42 cities in 12 provinces, expanding from single project cooperation to national coverage.
The company implemented an "integrated expansion and operation" mechanism, assembling multi-disciplinary teams to intervene early in project preparation, ensuring continuity of quality management and high-standard customer experience operations.
**Commercial and Diversified Business Layout Building Competitive Strength**
The commercial segment consolidated its competitive position, contributing 16% of total revenue. The company innovated energy management solutions, with all four managed office buildings in Beijing achieving 100% green electricity, and exported cross-format energy management solutions to extend service boundaries. Integration of fitness and retail resources improved tenant retention rates.
The company extended service management experience to non-residential formats, creating specialized service systems including "zero infection hospitals" and "zero disturbance education," building differentiated competitive capabilities. Government, school, and hospital format contracted areas accounted for 19% of total. Going forward, the company will continue to replicate benchmark practices to expand growth opportunities in non-residential formats.
**Community Value-Added Services Transformation Shows Results**
The company reshaped its community value-added services development path, with community value-added services revenue accounting for approximately 18%, growing 2.0% year-over-year with positive growth momentum. The company continues to cultivate C-end demand and enhance revenue contribution.
Focusing on owners' high-frequency needs, the company expanded retail product categories and supply chain depth; upgraded home services with scenario-based solutions; strengthened multi-channel operations for real estate brokerage; and promoted standardized service transformation for home improvement services.
**Future Outlook**
In the second half of the year, the company will continue to follow the business development approach of "strengthening revenue, increasing efficiency, expanding cash flow, improving quality, optimizing teams, and emphasizing compliance." The company will continue to optimize revenue structure, maintain strict project quality standards, and consolidate basic property management as the cornerstone business. The focus will be on strengthening external expansion and developing value-added services while continuously reducing reliance on related parties and enhancing sustainable operating capabilities.