Since the real estate industry entered a deep adjustment period, the property management sector has undoubtedly been experiencing profound transformation—shifting from the previous "scale expansion" model that relied on real estate growth to a new phase of "value reconstruction" that emphasizes quality and efficiency. How to transition from scale growth to value growth has become a common challenge that all property management companies need to explore.

On August 27, SINO-OCEAN SERV (06677) officially released its 2025 interim report. By focusing on enhancing market expansion capabilities and diversified service capabilities, the company delivered a "scorecard" of resilient growth. In the first half of the year, SINO-OCEAN SERV maintained high-quality management scale with contracted area reaching 122 million square meters. As third-party expansion capabilities continued to strengthen, revenue from third parties accounted for 93.4% of total revenue, significantly improving the company's business independence.

Meanwhile, due to continued focus on high-tier cities, the company maintained high-quality levels in managed area within tier-1 and tier-2 cities. During the period, tier-1 and tier-2 managed area accounted for 82.6%, with average property management fees of 3.2 yuan per square meter per month, positioning at the upper-middle level in the industry and significantly enhancing risk resistance capabilities.

Accompanied by significantly strengthened market expansion capabilities and ability to withstand industry cyclical fluctuations, SINO-OCEAN SERV demonstrated strong resilience in the first half: achieving revenue of 1.39 billion yuan, with adjusted core net profit margin of 8.3%.

The ability of SINO-OCEAN SERV to maintain resilient growth during the industry adjustment period was not coincidental, but rather the result of proactive strategic adjustments and precise execution in recent years.

**Targeting "Weak Cyclical" Sectors with Significantly Enhanced Expansion Capabilities**

According to market intelligence, while the current round of significant adjustments in the real estate industry has yet to end, SINO-OCEAN SERV did not expand blindly but keenly directed resources toward sectors with stable demand and strong payment capabilities, such as government office buildings, public institutions, municipal sanitation, and scenic area management. This move not only helped the company solidify its foundation but also significantly enhanced SINO-OCEAN SERV's expansion capabilities, driving more stable growth.

Specifically, the company strengthened efforts to secure state-owned enterprises, central enterprises, government office buildings, and public institutions (such as hospitals and schools) - high-quality assets with stable budgets, strong payment capabilities, and low bad debt risks. On the other hand, it continuously explored the new blue ocean of "urban services," such as municipal sanitation, scenic area management, and public facility maintenance - segments with large market space and sustained growth potential. Additionally, SINO-OCEAN SERV continued to cultivate "high-end commercial and office" and industrial park projects, which have strong payment willingness and high single-project value, effectively improving overall property management fee levels.

As the saying goes, "numbers are the best touchstone." Reflected in financial data, SINO-OCEAN SERV's enhanced expansion capabilities in the first half and significant increase in non-cyclical business proportion serve as strong evidence. In the first half, the company continued to promote market-oriented expansion. Based on residential and commercial-office core formats, it intensified expansion efforts in non-residential formats. New contracted building area reached 3.9 million square meters, with third-party new contracted building area increasing from 64% in the same period last year to 96%, covering various format types including commercial, office buildings, industrial parks, public buildings, and scenic areas. This indicates smooth progress in SINO-OCEAN SERV's non-cyclical business expansion and enhanced expansion capabilities.

As of July 2025, SINO-OCEAN SERV won 31 projects with total contract value of 260 million yuan. The company achieved breakthroughs in projects worth over 10 million yuan, demonstrating competitive strength in high-quality projects, with 9 awarded projects having contract values exceeding 10 million yuan. Cultivation of major clients also yielded results. In July, the company reached nationwide cooperation with BYD, covering 4S stores across 42 cities in 12 provinces, expanding from single-project cooperation to nationwide coverage.

As SINO-OCEAN SERV's expansion capabilities strengthened and non-cyclical business layout progressed smoothly, the company's basic property management income performed steadily in the first half, achieving revenue of 1.053 billion yuan, accounting for 74.4% of total revenue. Additionally, by extending service management experience to non-residential formats and building professional service capabilities across multiple formats, the company opened growth space for non-residential formats through major client benchmark cases. In the first half, SINO-OCEAN SERV's diversification layout generated positive feedback effects. During the reporting period, contracted area from government, schools, hospitals, and other formats accounted for 19%.

Meanwhile, the company's commercial and office segment contributed 16% of revenue during the period. Four Beijing-managed office buildings achieved 100% green electricity, and the company exported cross-format energy management solutions, significantly extending service boundaries.

From the above, it can be seen that as the property management industry's growth slowed due to real estate sales conditions, SINO-OCEAN SERV firmly stepped out of its "comfort zone," targeting "weak cyclical" sectors while focusing more on core business and diversified business expansion. From a growth perspective, this strategic adjustment undoubtedly brought strong positive effects to SINO-OCEAN SERV, not only facilitating the strengthening of its "blood-making" capabilities but also helping the company build development moats and advance steadily.

**Multi-dimensional Service Capability Enhancement, Entering High-Quality Development Path**

Of course, besides improving the company's "independent blood-making" capabilities, aligning with industry trends to enhance quality services is also key to SINO-OCEAN SERV's building of long-term competitive advantages. In 2024, Minister of Housing and Urban-Rural Development Ni Hong first mentioned "good houses, good services" at the Two Sessions people's livelihood themed press conference, which was written into the government work report in March 2025. Under central policy guidance, companies with superior service quality may see further market share increases.

Simply put, driven by the concept of good houses and good services, quality service will become a core competitive element for property management companies. Based on this industry trend, in the first half, SINO-OCEAN SERV continuously cultivated service quality and value-added services, creating value through quality services and driving "quality growth."

On one hand, SINO-OCEAN SERV enhanced service quality around customer perception. In the first half of 2025, SINO-OCEAN SERV focused on the essence of people's livelihood services, paid high attention to owner needs, improved service quality from details, ensured property service satisfaction remained at excellent levels, and won multiple authoritative industry awards including 12th place among China's Top 100 Property Brand Influence Companies 2025, China's Leading Property Service Quality Enterprise 2025, and China's Leading Property Low-Carbon Operation Enterprise 2025.

Benefiting from this, SINO-OCEAN SERV maintained customer satisfaction at 87 points in the first half, at the upper-middle level in the industry. For property management companies, customer satisfaction is an important factor in brand moats, so SINO-OCEAN SERV's improvement in customer satisfaction to strengthen brand barriers obviously brings positive effects to company performance growth.

On the other hand, SINO-OCEAN SERV reshaped the development path of community value-added services. During the reporting period, the company entered community consumption through high-demand, high-frequency products, understood owner needs, connected with owners through community operations, and consolidated the development foundation of community value-added business. Specifically, the company was user-demand oriented, increased customer stickiness through business innovation, resource integration, and digital operations to achieve revenue contribution purposes.

Through reshaping the community value-added service development path, SINO-OCEAN SERV's community value-added service revenue reached 249 million yuan in the first half, accounting for 18% of total revenue, with 2% year-on-year growth, achieving positive growth.

In the property management industry, good reputation and owner trust are the foundation of all value-added businesses. Therefore, during the reporting period, SINO-OCEAN SERV's alignment with industry trends and multi-dimensional improvement of service quality was obviously a forward-looking move, serving as important support for the company to respond to industry downturns while helping consolidate brand moats and add value weights.

**Summary**

SINO-OCEAN SERV's resilient growth in the first half was core to the company's success in reducing dependence on cyclical businesses strongly associated with real estate development by contracting non-owner value-added services, while precisely focusing on core business and building a diversified revenue structure based on market-oriented competitive capabilities.

In the "post-real estate" era, SINO-OCEAN SERV's strategic adjustment has significance far beyond bravely crossing industry valleys—it represents a profound self-revolution. Its value lies in: building independent market-oriented capabilities and healthy financial models, enabling the company to develop more healthily and steadily, continuing to release growth momentum in the next report, with promising long-term value prospects.