Building resilience with the courage of "blade inward", KANGQIAO SER (02205) explores new paths through the cycle.

In 2025, the property industry is still in a deep adjustment stage, and property enterprises are facing multiple challenges such as slowing growth, shrinking profit margins, and restructuring of service standards. Against this backdrop, KANGQIAO SER (02205) released its performance announcement for 2025 on March 30, which visually reflects the company's operational achievements over the past year and clearly demonstrates its proactive reform and steady development strategy. First, the performance base is stable, with short-term fluctuations not changing the resilience. Looking at the core performance, KANGQIAO SER's report card for 2025 reveals a distinct theme of "short-term adjustment, stabilizing rebound." The announcement shows that the company's annual operating income is about 932 million yuan, a slight decrease year-on-year. Combined with the overall performance of the industry, the adjustment range is still within a controllable range, and it shows a trend of "pressure in the first half of the year, recovery in the second half of the year" - although the annual revenue fell by 3.0% year-on-year, compared to a 6.6% year-on-year decline in the first half of the year, it can be judged that the company's second-half revenue has achieved year-on-year growth, which also means that after a short-term strategic adjustment, the revenue end has returned to growth and the trend of stabilizing the performance bottom has been basically established. In terms of revenue structure, the core pillar role of property management services continues to be highlighted, becoming the "ballast stone" to resist industry fluctuations. In 2025, the company's revenue from this sector was about 730 million yuan, a year-on-year increase of 7.2%, accounting for 78.4% of total revenue, further increasing from the previous year. In the background of the continuous slowdown in industry growth, KANGQIAO SER chooses to replace "scale expansion" with "quality priority." In 2025, the company proactively terminated some loss-making projects, but with the continuous transformation of high-quality reserve projects, the managed area grew by 5.0% year-on-year to 485 million square meters, achieving continuous positive growth for five consecutive years since its listing. This adjustment and change are essentially the optimization and selection of project quality, by divesting inefficient and loss-making assets, concentrating resources on high-quality projects, improving overall operational efficiency and profit levels. More importantly, the company's highly market-oriented business layout provides solid support for its resilience against industry risks - by the end of 2025, third-party accounts for 78.8% of the managed area and third-party accounts for 81.6% of contract area, ranking among the top in the industry. During the process of strategic adjustment, short-term "growing pains" are inevitable, but through public information such as company announcements, it can be seen that the company's strategic adjustment was concentrated in 2025 and its operational situation gradually improved, with the adjustment effects gradually becoming evident. "After the bloodletting, recovery is far closer to vitality than primitive growth" - as business continues to improve, KANGQIAO SER's new growth cycle is gaining momentum, which is more sustainable than blind expansion and better aligned with the direction of high-quality development in the industry. Second, deep cultivation of key regions and technological empowerment to build growth potential. Facing the industry adjustment period, KANGQIAO SER's ability to hold the ground and achieve recovery is crucial, and it is driven by the proactive determination to promote strategic transformation. By driving growth through deep cultivation of key regions and technological empowerment, the company transforms short-term adjustments into long-term competitive advantages, exploring a feasible path for property enterprises to navigate through cycles. Where will the company's future growth come from? At present, it mainly comes from the following two aspects: First, abandoning blind expansion and deep cultivation of key regions. As early as 2023, KANGQIAO SER clearly stated its development strategy of "deep cultivation of key regions," concentrating resources on high-energy cities in regions such as Henan and the Yangtze River Delta, and building differentiation advantages through resource focus and meticulous work. Taking the Nanjing market as an example, the company has opened more than ten new projects in just two years, forming a synergy of diversified formats, from high-end office buildings such as Nanjing Cosmic Tower and Jiangsu Railway Operation Big Data R&D Center, to cultural and tourism attractions such as Niushoushan and Qixia Ancient Town, to school projects such as Nanjing Hexian School and Nanjing University of Science and Technology, a variety of formats interweave, empower each other, significantly enhancing customer stickiness and regional competitiveness. The "investment + operation + property management" model of Qingdao Metro Shenzhen New Industries Biomedical Engineering Park, by deeply integrating into the rail transit industry cluster, attracted high-quality enterprises such as Qingtie Nuo Li, Donghu Green Energy, and Windsun Science & Technology Co., Ltd., creating an industrial agglomeration effect; on the operational level, the park implements a light asset operation strategy, building a "space-for-fee" business model, quickly achieving cash flow turnaround, demonstrating strong professional capabilities. Second, technological empowerment services to accelerate the landing of smart applications. High labor costs, uneven service standards, and low operational efficiency are the core pain points that inhibit the high-quality development of the property industry, and digital technology is becoming the key to solving these problems. In 2025, the company continued to increase its investment in technological services, promoting deep integration of digital technology with property services in various scenarios, achieving more intelligent and refined management in operational management and cost control: introducing AI call centers and sweeping robots, reducing the cost of repetitive work; implementing a "man-machine collaboration" cleaning model to standardize and refine services; upgrading smart access systems, integrating face recognition and other contactless access methods to balance safety and efficiency in access control. It is worth noting that while the company is deepening its presence in the domestic market, it is also proactively laying out overseas technical resources, through the establishment of a North American subsidiary, signing memorandums of cooperation with American artificial intelligence home diagnostics companies, exploring the application of AI in leasing and operation cost reduction. This combination of "domestic cultivation + overseas expansion" in technology layout injects new momentum into its long-term growth. Overall, KANGQIAO SER's transformation path is clear and pragmatic: strengthening the foundation through regional deep cultivation, improving operational efficiency through technological empowerment, and enhancing operational resilience through market-oriented deployment. Against the backdrop of industry-wide pressure, the company does not blindly pursue scale, but chooses to dig deeper internally and break through externally, exchanging quality for space and efficiency for the future. This proactive disruption of "internal penetration" not only helps it navigate short-term fluctuations, but also lays a solid foundation for long-term high-quality development. KANGQIAO SER's 2025 report card of "losses and gains" not only records its painful transformation and determination to "cleanse the bone," but also reflects the inevitable trend of the industry's deep transformation from scale expansion to quality priority. Looking ahead to 2026 and the long-term future, as industry adjustments gradually take place and the company's strategic layout continues to land, KANGQIAO SER is expected to further unleash its growth potential. For the property industry, cyclical fluctuations are normal, and only by adhering to quality, actively innovating, and deepening value can one find the right position and navigate through cycles. KANGQIAO SER's practice proves that daring to tackle challenges internally is essential to restructuring; returning to the heart of service is crucial for stability and long-term success. In the era of high-quality development, this spirit of self-improvement and persistent adherence may provide a valuable example for property enterprises to navigate through cycles and reshape value.