A：New Hope Services has achieved remarkable results in the high-end residential sector, providing high-end services in iconic projects in cities such as Chengdu, Chongqing, Wuhan, and Shenyang. For example, the New Hope Freedom Plate project had a fee rate exceeding 40% within ten days of its launch, demonstrating that its service capabilities can bring high value and good returns. Additionally, New Hope Services has collaborated with Be Good to obtain property service rights for high-end projects in Shanghai and Chengdu in the first-hand market. The property fee per unit for one of the projects will surpass the current Chengdu D10 project, becoming the highest-priced residential project. New Hope Services achieved a total contract amount of 560 million in the first half of this year, with property management revenue increasing by 15.2% compared to the same period last year. Through cooperation with Be Good, both parties have built a high-end property service brand and successfully acquired property service rights for two high-end projects in Shanghai and Chengdu. Furthermore, New Hope Services has tripled its external expansion efficiency and contract gross profit by continuously optimizing its external expansion strategy, leveraging higher growth with similar external expansion investments as last year. Additionally, New Hope Services has made breakthroughs in the commercial dimension, particularly obtaining commercial operation projects in Kunming and Chengdu, and deepening relationships with strategic partners such as cooperating with regional platform companies in the Wuhou district of Chengdu, resulting in cumulative contract amounts exceeding 3.1 billion.

A：New Hope Service continues to strengthen its capabilities in the property and commercial sectors, with third-party income accounting for 18.6% in the first half of this year, up from 7% last year. In particular, the third-party expansion in Kunming and Chengdu has made positive contributions for the future. Self-owned projects such as New Hope International and New Innovation have shown good rental levels and occupancy rates, while external projects such as Loyalty Step Joy Mansion and Time Club have also seen a counter-trend improvement. Additionally, New Hope Service has successfully obtained the commercial operation rights for the Wanda office building in Xishan, Kunming, as well as the mixed-use project in the Chengdu Central Business District.

A：In the overall environment where the retail industry or life service industry is under pressure, the life service business of New Hope Service continues to show a trend of continuous increase in absolute income value, income proportion, gross profit and gross profit margin. Especially in the community business field, despite facing challenges in terms of site leasing, through the breakthrough of professional capabilities, multiple million-selling explosive products have been created, such as the air conditioning million-special activity implemented in the middle of this year, which effectively increased the gross profit margin and sales. In addition, New Hope Service has seen an increase in sales and customer numbers in the B-end market, especially achieving significant growth in single product milk sales and custom gift box sales.

A：The team, through more specialized operations and meticulous analysis of customer service, successfully achieved continuous improvement in the life service business. Despite facing immense pressure in the catering business, through project adjustments and continuous increase in the proportion of third parties, especially in terms of supply chain advantages and food safety advantages, we successfully expanded our business to the canteen of the Sichuan Provincial Health Commission, which is one of the highest health standards required projects in the entire Sichuan Province. Additionally, we have also implemented the first community canteen project and look forward to using this as a starting point to gradually shift the catering business from being mainly B-end oriented to a B2C or C-end oriented model.

A：In the first half of this year, the company adhered to deep cultivation and continuously expanded its business scale. Although the initial goal was set at reaching seven hundred million, we are confident in completing the task, as we have currently achieved 560 million. We are committed to making D10 life the industry standard setter for high-end services, constantly improving our quality of life services, and building up our community's comprehensive operational capabilities. At the same time, in terms of digital operations, the company is closely following the pace of AI robot technology iterative innovation. Under the leadership of New Hope Industries, by investing in technology, robots, and AI companies, the company has strengthened the integration of its digital capabilities and business, promoting efficiency improvement, cost savings, and increased satisfaction.

A：Starting from internal management logic and project operation logic, we restructured all workflows, management flows, and business flows' SOPs, resulting in an increase in labor efficiency and a 20% expected increase in net profit and an 11% reduction in total costs. For example, in the Huangguanghu project in Chengdu, significant economic benefits and satisfaction were achieved through the introduction of robots and management reengineering. In addition, the company not only applied digital technology at the project level but also made improvements in architecture optimization, sharing reinforcement, and human-machine collaboration at the organizational management iterative level, resulting in a 55% increase in overall labor efficiency.

A：In the past three years, the company has maintained a steady state in terms of revenue, gross profit, gross profit margin, and net profit compared to the same period. Although the gross profit margin decreased by 1.2 percentage points compared to the same period last year, it has increased compared to the full-year data from last year. Net profit attributable to owners and net profit margin have also remained stable, thanks to the high-quality new projects and contributions from sectors such as life services. In terms of asset structure, the proportion of non-owner value-added parts related to related parties continues to decline, while New Hope Real Estate remains stable, with sales expected to remain stable. Income and profit contributions from life services and property services are increasing, while revenue and profit contributions from business operations are relatively decreasing. However, third-party asset management projects are gradually expanding and are expected to regain their core position in the future. Furthermore, various financial indicators of the company such as cash shareholders' equity, asset-liability ratio, accounts receivable days, and current ratio remain at a healthy level.

A：Digitalization is a must-answer question for the property management industry. It helps improve management efficiency, reduce the troubles caused by non-standardized services, and create more consensus and resonance between employees, companies, and customers. Through digital technology, resource allocation can be optimized, service quality and efficiency can be improved.

A：The company adheres to its digital strategy, continuously deepening its leading position in the industry in terms of digital capabilities. At the same time, it combines high-quality service strategies to pursue customer satisfaction and high-end property services, as well as enhance commercial property and lifestyle services through the integration of property and strategic solutions.

A：The company has always attached importance to shareholder returns, and has continuously increased the dividend payout ratio since its listing, reaching 70% this year, based on the company's sound operation and financial condition. In the future, while ensuring the high-quality development of the company, we will continue to reward shareholders' support, but high dividend payouts do not mean giving up capital expenditures such as mergers and acquisitions. The company will balance capital expenditures with shareholder returns.

A：Cash and cash equivalents decreased by approximately 180 million due to two main reasons: first, the company continued to increase cash dividends, paying out dividends of approximately 150 million for the year; second, to improve the efficiency of fund utilization, the company purchased nearly 50 million US dollars in bonds.

A：The company sees great potential for the development of lifestyle services in the future. Although the profit share of value-added services in the industry is not ideal, happiness has unique advantages in this field. The gross profit margin and growth rate of lifestyle services are both increasing, and the market has given positive feedback on the company's capabilities in lifestyle services. As for the slowing growth of the group meal business, further analysis of the specific reasons is needed and corresponding measures should be formulated.

A：In 2024, we achieved a total contract signing amount of six billion, among which the 5.6 billion of contract signing amount in 2022 reflects the validation of the New Hope Community Service Operation Comprehensive Solution in the market. Specifically, the composition includes: property services as the cornerstone, accounting for 71.6%, residential accounting for 48.9%, and non-residential accounting for 22.7%; commercial operations contributed 23.5% of the contract amount; group dining and lifestyle services accounted for nearly 5%. In addition, the average contract term for our expansion projects in 2025 is 3.35 years, with over 60% of the contract projects having long-term contracts of three years or more, which helps increase customer stickiness and establish stable cooperation relationships, ensuring future growth certainty. Although significant achievements have been made in the first half of the year, there is currently no clear upward adjustment of the full-year target, and the team has set higher requirements internally. If there are any surprises, they will be communicated promptly.

A：The specific reasons for the decline in the proportion of commercial business and the company's future plans for commercial business will be discussed in detail in subsequent discussions.

A：In the first half of the year, we did well in several aspects of our work, with improvements in property and living services. The decline in non-owner-added value is an irreversible trend. However, the main reasons for the decrease in the proportion of income and profit in the commercial sector are twofold: firstly, the disposal of assets by New Hope affiliates and support projects has led to a reduction in the number of operational management contracts, reducing the amount and contribution; secondly, some projects are facing pressure on rent and occupancy rates, leading to a decline in operating commissions.

A：We still believe that property management is an ability that our company has accumulated over the years, with diverse formats and a solid foundation in team operations. Despite the fact that our own projects have been sold off, the high sales prices reflect the value of our operations, so we will not give up on this capability. At the same time, we firmly believe that asset management in urban space services comes with huge market opportunities, and we will continue to work towards revitalizing assets and providing asset services. In addition, we have strengthened our external expansion, especially in deepening our presence in residential long-term rental apartments, affordable housing businesses, office park leasing operations, and community commercial content. We have achieved results in these areas, with 18.6% of our commercial revenue coming from external expansion this year. In the future, we will further increase this percentage and strengthen our efforts in expanding our commercial presence.

A：New Hope Services are recognized mainly based on our excellent service capabilities, which are characterized by fast response and warmth. In addition, this year we have put forward the brand proposition of "visible good service" and launched a special activity for all staff as brand ambassadors, telling the happy brand stories through new media short videos. Currently, the company's short video views on Douyin and WeChat video accounts continue to rank first in the industry, and have received positive feedback and recognition from many homeowners.

A：The company allocates US dollar assets in order to enhance the efficiency of fund utilization and optimize fund management capabilities while ensuring liquidity. In the future, the company will adhere to the principles of safety risk and liquidity, continuously strengthen the efficiency of fund utilization, dynamically manage deposits, and increase fund efficiency under strict risk control.

A：The universal sales of social security is a trend in the industry, Happiness has always complied with relevant laws and regulations and has implemented good compliance management, so the impact of this policy adjustment will not be particularly sudden or urgent. At the same time, the company focuses on social security to focus on costs, and digitization is an important solution to address cost increases. After going public, Happiness insists on delving into digitization, truly integrating digitization into the daily work of employees. Currently, through AI empowerment and platform-based operations, a model of human-machine collaborative efficiency enhancement has been basically established, which involves overall decision-making, deep empowerment, and high execution. In terms of cost management, digitization helps reduce information asymmetry and maintain high-quality gross profit margins; in terms of operational efficiency, AI and robots lighten the burden on employees and enhance the level of refined operations. In the future, the company not only actively uses and applies the dividends of technology, but also hopes to deepen the exploration of the application scenarios of technology and robots through its own efforts and cooperation with AI partners within the system, becoming users, promoters, and participants, and enjoying the dividends brought by technological development.