Understanding the Market | CHINA RES MIXC fell over 9% in the afternoon, with revenue growth in the first half dropping to single digits, while profit returns and gross margin improved

CHINA RES MIXC fell more than 9% in the afternoon, and as of the time of writing, it was down 8.84%, trading at HKD 37.94, with a transaction volume of HKD 341 million. In terms of news, CHINA RES MIXC's interim results showed that the group achieved revenue of RMB 8.524 billion, an increase of 6.54% year-on-year; the profit attributable to equity shareholders was RMB 2.03 billion, an increase of 7.44% year-on-year; earnings per share were 89 cents, with a proposed interim dividend of HKD 0.529 per share and a special dividend of HKD 0.352 per share. The company's Chief Financial Officer, Nie Zhizhang, stated that the company actively adjusted its business development model in the first half of the year, placing greater emphasis on profit contribution and profitability, and proactively exited some low-quality and inefficient projects. As a result, the revenue growth rate in the first half of the year was in single digits, but it also improved profit returns and gross margins. Additionally, the company's Vice President, Wang Haimin, responded to the recent wave of property fee reductions. He stated that the industry is currently facing increased calls for price reductions and a decline in payment willingness, which essentially reflects owners' demands for information symmetry, price-quality matching, demand response, and value creation. The property management industry has indeed entered an adjustment period, and in the long run, we believe that the core logic of property management companies' business models will still be value creation