[Interim Results Summary](index=1&type=section&id=Interim%20Results%20Summary) [Performance Overview](index=1&type=section&id=Performance%20Overview) The Group's revenue slightly decreased, but profit attributable to equity holders significantly increased, mainly due to reduced impairment provisions for receivables and effective cost control measures, while basic and diluted earnings per share decreased, and no interim dividend was recommended Key Financial Data for the Period | Indicator | Current Period (H1 2024) | Corresponding Period (H1 2023) | Change | | :--- | :--- | :--- | :--- | | Revenue | 167.7 Million HKD | 169.7 Million HKD | Decreased by approx. 1.2% | | Profit attributable to equity holders | 24.0 Million HKD | 18.2 Million HKD | Increased by approx. 31.9% | | Basic and diluted EPS | 0.08 HK cents | 0.10 HK cents | Decreased | - Profit growth was primarily driven by a net reduction of approximately **HKD 6.0 million** in impairment provisions for trade receivables and contract assets, along with effective cost control measures leading to reduced selling, general, and administrative expenses. No gain on disposal was recorded during the period[1](index=1&type=chunk) - The Board did not recommend the payment of any interim dividend for the period[2](index=2&type=chunk) [Condensed Consolidated Financial Statements](index=3&type=section&id=Condensed%20Consolidated%20Financial%20Statements) [Condensed Consolidated Statement of Profit or Loss](index=3&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss) For the six months ended June 30, 2024, the Group reported revenue of HKD 167.7 million, gross profit of HKD 47.2 million, and profit for the period of HKD 23.8 million, with HKD 24.0 million attributable to equity holders Condensed Consolidated Statement of Profit or Loss (Thousand HKD) | Indicator | H1 2024 | H1 2023 | | :--- | :--- | :--- | | Revenue | 167,741 | 169,698 | | Cost of sales and services | (120,555) | (122,459) | | Gross profit | 47,186 | 47,239 | | Other income | 3,563 | 2,398 | | Selling, general and administrative expenses | (22,835) | (34,262) | | Profit before tax | 21,442 | 18,495 | | Profit for the period | 23,832 | 20,636 | | Profit attributable to equity holders | 24,017 | 18,159 | | Basic and diluted EPS | 0.08 HK cents | 0.10 HK cents | [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=4&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) For the six months ended June 30, 2024, the Group's profit for the period was HKD 23.8 million, but due to exchange differences on translation of foreign operations and share of other comprehensive income of an associate, total comprehensive income for the period was HKD 9.6 million, with a comprehensive loss of HKD 10.3 million attributable to equity holders Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (Thousand HKD) | Indicator | H1 2024 | H1 2023 | | :--- | :--- | :--- | | Profit for the period | 23,832 | 20,636 | | Exchange differences on translation of foreign operations | (13,583) | (22,852) | | Exchange differences on translation of share of other comprehensive income of an associate | (647) | (1,192) | | Total comprehensive income (loss) for the period | 9,602 | (3,408) | | Attributable to equity holders | (10,256) | (5,207) | [Consolidated Statement of Financial Position](index=5&type=section&id=Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2024, the Group's total assets were HKD 789.6 million, total liabilities were HKD 182.4 million, and net assets were HKD 607.2 million, with non-current assets primarily comprising property, plant and equipment and investment properties, and current assets mainly cash and cash equivalents Consolidated Statement of Financial Position (Thousand HKD) | Indicator | June 30, 2024 | December 31, 2023 | | :--- | :--- | :--- | | **Non-current assets** | | | | Property, plant and equipment | 126,911 | 136,179 | | Investment properties | 67,355 | 74,783 | | Investment in an associate | 24,356 | 25,055 | | **Current assets** | | | | Trade receivables | 92,745 | 90,362 | | Contract assets | 59,825 | 41,826 | | Cash and cash equivalents | 230,108 | 201,373 | | **Current liabilities** | | | | Contract liabilities | 22,866 | 26,820 | | Trade payables | 32,211 | 30,071 | | **Non-current liabilities** | | | | Lease liabilities | 36,310 | 41,284 | | **Total equity** | 607,211 | 622,136 | [Notes to the Unaudited Condensed Consolidated Financial Statements](index=7&type=section&id=Notes%20to%20the%20Unaudited%20Condensed%20Financial%20Statements) [Accounting Standards](index=7&type=section&id=Accounting%20Standards) This section outlines the amendments to Hong Kong Accounting Standards and Hong Kong Financial Reporting Standards referenced in the preparation of the interim financial statements, covering liability classification, supplier finance arrangements, and lease liabilities in sale and leaseback transactions - The report mentions HKAS 1 (Amendments) regarding classification of liabilities, HK(IFRIC)-Int 5 (Amendments) regarding classification by the borrower of a term loan that contains a clause that gives the lender a right to demand immediate repayment, and HKFRS 7 (Amendments) regarding supplier finance arrangements[7](index=7&type=chunk) [1. General Information](index=7&type=section&id=1.%20General%20Information) The Company is an exempted company incorporated in the Cayman Islands with shares listed on the Stock Exchange, primarily engaged in property management, environmental sanitation, integrated development, and diversified tourism products and services - The Company is an exempted company incorporated in the Cayman Islands with its shares listed on The Stock Exchange of Hong Kong Limited[8](index=8&type=chunk) - The Group is principally engaged in property management and leasing services for residential and commercial properties, environmental sanitation, integrated development, and diversified tourism products and services[8](index=8&type=chunk) - The Group's immediate and ultimate holding company is Orient Victory Real Estate Group Holdings Limited, wholly owned by Mr. Shi Baodong[8](index=8&type=chunk) [2. Basis of Preparation](index=7&type=section&id=2.%20Basis%20of%20Preparation) The interim financial statements are prepared in accordance with Appendix D2 of the Listing Rules and HKAS 34, using a historical cost basis except for investment properties measured at fair value, with no significant impact from new/revised HKFRSs - The interim financial statements have been prepared in accordance with the applicable disclosure requirements of Appendix D2 to the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited and Hong Kong Accounting Standard 34 'Interim Financial Reporting' issued by the Hong Kong Institute of Certified Public Accountants[9](index=9&type=chunk) - The adoption of new/revised HKFRSs has no significant impact on the Group’s results and financial position for the current or prior periods[10](index=10&type=chunk) [3. Revenue and Segment Reporting](index=8&type=section&id=3.%20Revenue%20and%20Segment%20Reporting) The Group's total revenue of HKD 167.7 million is primarily derived from property management, environmental sanitation, and tourism-related income, with property management showing significant growth and environmental sanitation revenue decreasing due to contract expiry [Revenue Breakdown](index=8&type=section&id=3.%20(a)%20Revenue) The Group's total revenue for the period was HKD 167.7 million, comprising HKD 85.3 million from property management services, HKD 65.2 million from environmental sanitation services, and HKD 13.3 million from rental income Revenue by Category (Thousand HKD) | Revenue Category | H1 2024 | H1 2023 | | :--- | :--- | :--- | | Property management services | 85,260 | 72,007 | | Environmental sanitation services | 65,249 | 80,068 | | Tourism-related income | 3,928 | 4,775 | | Rental income | 13,304 | 12,848 | | **Total Revenue** | **167,741** | **169,698** | [Segment Reporting (by Business Segment)](index=9&type=section&id=3.%20(b)%20Segment%20Reporting) The Group operates four reportable segments: property management, environmental sanitation, integrated development, and diversified tourism products and services, with property management revenue growing significantly, environmental sanitation revenue declining, and integrated development recording a loss [Segment Results, Assets and Liabilities](index=9&type=section&id=3.%20(b)%20(i)%20Segment%20Results%2C%20Assets%20and%20Liabilities) Property management segment revenue grew by 16.1% to HKD 98.6 million, but segment results decreased; environmental sanitation segment revenue decreased by 18.5% to HKD 65.2 million, but segment results significantly increased; integrated development segment saw declines in both revenue and results Segment Revenue and Results (Thousand HKD) | Segment | H1 2024 Revenue | H1 2023 Revenue | Revenue Change | H1 2024 Segment Results | H1 2023 Segment Results | | :--- | :--- | :--- | :--- | :--- | :--- | | Property Management | 98,564 | 84,855 | +16.1% | 8,287 | 14,507 | | Environmental Sanitation | 65,249 | 80,068 | -18.5% | 15,925 | 7,588 | | Integrated Development | 3,928 | 4,775 | -17.7% | (905) | (6,016) | | Diversified Tourism Products and Services | – | – | N/A | (155) | 9,081 | Segment Assets and Liabilities (Thousand HKD) | Segment | June 30, 2024 Segment Assets | December 31, 2023 Segment Assets | June 30, 2024 Segment Liabilities | December 31, 2023 Segment Liabilities | | :--- | :--- | :--- | :--- | :--- | | Property Management | 165,905 | 158,415 | 120,609 | 114,406 | | Environmental Sanitation | 145,385 | 149,598 | 35,035 | 47,033 | | Integrated Development | 215,429 | 228,532 | 24,664 | 27,210 | | Diversified Tourism Products and Services | 1,218 | 4,005 | 564 | 936 | | **Total Assets** | **789,592** | **814,736** | **Total Liabilities** | **182,381** | **192,600** | - Segment results are assessed based on reportable segment profit (loss), which is adjusted profit (loss) before tax, excluding finance costs and head office and corporate income and expenses[13](index=13&type=chunk) [Geographical Information](index=12&type=section&id=3.%20(b)%20(ii)%20Geographical%20Information) All of the Group's external customer revenue is derived from Mainland China, where its non-current assets are also primarily located Geographical Distribution (Thousand HKD) | Region | H1 2024 External Customer Revenue | H1 2023 External Customer Revenue | June 30, 2024 Non-current Assets | December 31, 2023 Non-current Assets | | :--- | :--- | :--- | :--- | :--- | | Hong Kong | – | – | 1,252 | 1,460 | | Mainland China | 167,741 | 169,698 | 241,221 | 261,001 | | **Total** | **167,741** | **169,698** | **242,473** | **262,461** | - The geographical distribution of customers is based on the location where goods and services are sold or provided, while the geographical distribution of specified assets is based on the physical location of the assets or the location of operations[16](index=16&type=chunk) [Information on Major Customers](index=12&type=section&id=3.%20(b)%20(iii)%20Information%20on%20Major%20Customers) During the period, two major customers contributed 10% or more to total revenue, with Customer B's contribution significantly increasing Major Customer Revenue (Thousand HKD) | Customer | H1 2024 Revenue | H1 2023 Revenue | | :--- | :--- | :--- | | Customer A | 19,369 | 22,562 | | Customer B | 29,196 | – | - Customer A refers to revenue from associated companies controlled by Mr. Shi and Orient Victory Real Estate Development Group Co., Ltd. (95% owned by Mr. Shi) under the property management segment[18](index=18&type=chunk) [4. Finance Costs](index=13&type=section&id=4.%20Finance%20Costs) Total finance costs for the period amounted to HKD 848 thousand, a decrease from HKD 1,439 thousand in the prior period, primarily due to reduced interest on lease liabilities and other loans Finance Costs (Thousand HKD) | Finance Cost Category | H1 2024 | H1 2023 | | :--- | :--- | :--- | | Interest on lease liabilities | 848 | 1,312 | | Interest on other loans | – | 127 | | **Total** | **848** | **1,439** | [5. Profit Before Tax](index=13&type=section&id=5.%20Profit%20Before%20Tax) Profit before tax was HKD 21.4 million, influenced by factors such as staff costs, depreciation and amortization, direct operating expenses for investment properties, impairment provisions for trade receivables, and net exchange gains Items Affecting Profit Before Tax (Thousand HKD) | Item | H1 2024 | H1 2023 | | :--- | :--- | :--- | | Staff costs | 48,406 | 50,209 | | Depreciation of property, plant and equipment | 9,402 | 11,848 | | Depreciation of right-of-use assets | 961 | 970 | | Impairment provision for trade receivables | 4,568 | 9,581 | | Impairment provision (reversal) for contract assets | (1,032) | – | | Net exchange gain | (1,868) | (539) | [6. Income Tax](index=14&type=section&id=6.%20Income%20Tax) Income tax for the period was negative HKD 2.39 million, primarily due to the reversal of deferred tax losses and temporary differences, with China corporate income tax accrued at 5% or 25% and no provision for Hong Kong profits tax Income Tax (Thousand HKD) | Tax Category | H1 2024 | H1 2023 | | :--- | :--- | :--- | | Current tax – Corporate income tax | 2,206 | 1,419 | | Deferred tax – Reversal of tax losses and temporary differences | (4,596) | (3,560) | | **Total Income Tax** | **(2,390)** | **(2,141)** | - China corporate income tax is accrued at a rate of **5%** (for small and micro enterprises) or **25%** (for others)[20](index=20&type=chunk) - No provision for Hong Kong profits tax was made as the Group recorded tax losses in both periods[20](index=20&type=chunk) [7. Earnings Per Share](index=14&type=section&id=7.%20Earnings%20Per%20Share) Basic and diluted earnings per share for the period were 0.08 HK cents, a decrease from 0.10 HK cents in the prior period, with certain perpetual convertible securities and share awards not assumed converted due to their anti-dilutive effect Basis for Earnings Per Share Calculation (Thousand HKD) | Indicator | H1 2024 | H1 2023 | | :--- | :--- | :--- | | Profit attributable to equity holders | 24,017 | 18,159 | | Distributions paid to holders of perpetual convertible securities | (11,613) | – | | Accrued distributions to holders of perpetual convertible securities | (2,100) | (5,054) | | **Profit for basic EPS calculation** | **10,304** | **13,105** | Weighted Average Number of Ordinary Shares (Thousand Shares) | Indicator | H1 2024 | H1 2023 | | :--- | :--- | :--- | | Weighted average number of ordinary shares for basic EPS calculation | 12,922,075 | 12,922,075 | - Diluted earnings per share for the current and corresponding periods did not assume the conversion of certain perpetual convertible securities and the issuance of certain shares under the share award scheme, as their hypothetical conversion and issuance would have an anti-dilutive effect on the presented basic earnings per share amounts[23](index=23&type=chunk) [8. Property, Plant and Equipment](index=15&type=section&id=8.%20Property%2C%20Plant%20and%20Equipment) As of June 30, 2024, the carrying amount of machinery and equipment was HKD 3.872 million, primarily comprising assets held under leases Carrying Amount of Machinery and Equipment (Thousand HKD) | Item | June 30, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Carrying amount of machinery and equipment (held under leases) | 3,872 | 4,236 | [9. Trade Receivables](index=15&type=section&id=9.%20Trade%20Receivables) As of June 30, 2024, net trade receivables were HKD 92.7 million, a slight increase from the end of 2023, with impairment provisions of HKD 14.4 million; property management customers typically pay upon immediate invoicing, while other segments have credit terms of 1 to 90 days Trade Receivables Breakdown (Thousand HKD) | Source of Trade Receivables | June 30, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Third parties | 57,328 | 55,450 | | Related companies | 49,855 | 45,087 | | **Total** | **107,183** | **100,537** | | Impairment provision | (14,438) | (10,175) | | **Net Amount** | **92,745** | **90,362** | Trade Receivables Ageing Analysis (Thousand HKD) | Ageing | June 30, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Within 90 days | 28,111 | 38,492 | | 91 to 180 days | 34,880 | 23,077 | | 181 to 365 days | 24,369 | 23,237 | | Over 365 days | 5,385 | 5,556 | | **Total** | **92,745** | **90,362** | [10. Trade Payables](index=16&type=section&id=10.%20Trade%20Payables) As of June 30, 2024, total trade payables were HKD 32.2 million, a slight increase from the end of 2023, primarily from third parties, with all trade payables expected to be settled within one year Trade Payables Breakdown (Thousand HKD) | Source of Trade Payables | June 30, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Third parties | 29,352 | 29,892 | | Related parties | 2,859 | 179 | | **Total** | **32,211** | **30,071** | Trade Payables Ageing Analysis (Thousand HKD) | Ageing | June 30, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Within 90 days | 14,554 | 13,495 | | 91 to 180 days | 2,491 | 2,515 | | 181 to 365 days | 4,276 | 3,173 | | Over 365 days | 10,890 | 10,888 | | **Total** | **32,211** | **30,071** | [11. Share Capital](index=17&type=section&id=11.%20Share%20Capital) As of June 30, 2024, the Company's authorized share capital was HKD 100 million, with issued and fully paid share capital of HKD 64.61 million, and the number of shares remained unchanged Share Capital Structure (Thousand Shares/Thousand HKD) | Share Capital Category | June 30, 2024 (Thousand Shares) | June 30, 2024 (Thousand HKD) | December 31, 2023 (Thousand Shares) | December 31, 2023 (Thousand HKD) | | :--- | :--- | :--- | :--- | :--- | | Authorized share capital (ordinary shares of HKD 0.005 par value each) | 20,000,000 | 100,000 | 20,000,000 | 100,000 | | Issued and fully paid share capital (ordinary shares of HKD 0.005 par value each) | 12,922,075 | 64,610 | 12,922,075 | 64,610 | [12. Interim Dividend](index=17&type=section&id=12.%20Interim%20Dividend) The Board did not recommend the payment of any interim dividend for the period - The Board did not recommend the payment of any interim dividend for the period (corresponding period: nil)[29](index=29&type=chunk) [Management Discussion and Analysis](index=18&type=section&id=Management%20Discussion%20and%20Analysis) [Industry Overview and Business Review](index=18&type=section&id=Industry%20Overview%20and%20Business%20Review) The Group adheres to its core values of "people-oriented, sincere service" and a "prudent and sustainable" strategy, with main businesses including property management, environmental sanitation, integrated development, and diversified tourism products and services - The Group adheres to its corporate core values of "people-oriented, sincere service" and places great emphasis on a "prudent and sustainable" strategy to maintain sustainable profitability through cautious investment and development strategies[30](index=30&type=chunk) - The Group is principally engaged in property management and leasing services for residential and commercial properties, environmental sanitation, integrated development, and diversified tourism products and services[30](index=30&type=chunk) [Property Management Business](index=18&type=section&id=Property%20Management%20Business) Driven by national policies, the property management industry continues to grow; Gangyu Property Group achieved a 16.1% revenue increase to HKD 98.6 million by enhancing service quality, strengthening staff training, and securing five new projects, despite a reduction in total contracted gross floor area due to six contract expirations - National policies continue to promote the healthy development of the property management industry, emphasizing improved service quality and diversity[31](index=31&type=chunk) - Gangyu Property Group obtained ISO 9001, ISO 14001, and ISO 45001 certifications and received multiple industry awards[32](index=32&type=chunk) - Revenue from property management business for the period was approximately **HKD 98.6 million**, an increase of approximately **16.1%**[33](index=33&type=chunk) - Gangyu Property Group successfully secured five new projects, but the expiration of six service contracts led to a reduction of **4.4 million square meters** in total contracted gross floor area, with the total contracted gross floor area under management being approximately **7.4 million square meters** as of June 30, 2024[33](index=33&type=chunk) [Environmental Sanitation Business](index=21&type=section&id=Environmental%20Sanitation%20Business) The Chinese government's supportive policies and rising industry standards have led the Group to upgrade services with advanced technology and win new projects; despite revenue decline to HKD 65.2 million due to contract expiry and client deductions, cost control measures significantly improved gross margin, and government policies are expected to alleviate delayed payment challenges - The Chinese government has implemented various policies to support the environmental sanitation industry, including promoting investment and construction of urban and rural environmental protection infrastructure, strengthening government procurement service reforms in key areas such as urban and rural community public services and public health services, and accelerating the improvement of waste collection and treatment systems to promote the construction of smart waste classification facilities[34](index=34&type=chunk) - The Company invested in purchasing environmental vehicles in the second half of 2023 to meet stricter industry standards and higher environmental regulations[34](index=34&type=chunk) - Revenue from environmental sanitation services for the period was approximately **HKD 65.2 million**, a decrease from **HKD 80.1 million** in the corresponding period, primarily due to the expiry of one service project and client service fee deductions[35](index=35&type=chunk) - The Group significantly improved the gross margin of its environmental sanitation services business for the period by optimizing personnel, outsourcing some work to subcontractors, and implementing cost-saving measures to reduce fuel consumption and operating costs[35](index=35&type=chunk) - The Hebei Provincial Government held an urban management conference, requiring all local municipal, county, and district governments to prioritize and ensure timely payment for key environmental sanitation services, including waste collection, transfer, treatment, and sewage treatment, which is expected to accelerate the collection of long-overdue payments[36](index=36&type=chunk) [Integrated Development Business](index=23&type=section&id=Integrated%20Development%20Business) Integrated development business includes tourism scenic area operation, management, promotion, event planning, and consulting services; tourism-related income declined due to adverse weather, increased competition, and lack of unique products, while demand for promotion, event planning, and consulting services significantly dropped, with no revenue recognized in the period [Tourism-related Income](index=23&type=section&id=Tourism-related%20Income) Tumen Tourism's tourism-related income was approximately HKD 3.9 million, a decrease from the prior year, mainly affected by adverse weather, high shopping mall vacancy rates, and increased competition from nearby self-operated villagers Tourism-related Income (Thousand HKD) | Revenue Category | H1 2024 | H1 2023 | | :--- | :--- | :--- | | Tourism-related income | 3,928 | 4,775 | - The decrease in Tumen Tourism's revenue was due to adverse weather conditions, high shopping mall vacancy rates, increased competition from nearby self-operated villagers, and a lack of unique and competitive products from certain merchants[38](index=38&type=chunk) - Tumen Tourism has implemented an event planning strategy involving active participation of all staff in scenic area performances, which attracts customer traffic while reducing operating costs by eliminating the need to hire external performers[38](index=38&type=chunk) [Promotion, Event Planning and Consulting Services](index=24&type=section&id=Promotion%2C%20Event%20Planning%20and%20Consulting%20Services) Demand for promotion, event planning, and consulting services significantly decreased during the period, with no revenue recognized, primarily due to changes in the sales and marketing strategies of a major client - The Group did not recognize any revenue from providing promotion, event planning, and consulting services during the period, mainly due to changes in the sales and marketing strategies of Orient Victory Real Estate Development Group Co., Ltd. and its subsidiaries (the Group's major clients for promotion, event planning, and consulting services) since 2023[40](index=40&type=chunk) [Diversified Tourism Products and Services Business](index=24&type=section&id=Diversified%20Tourism%20Products%20and%20Services%20Business) The Group recorded no revenue in the diversified tourism products and services segment during the current and corresponding periods, primarily due to focusing on other businesses, and will re-evaluate the business environment to make appropriate arrangements - The Group recorded no revenue in this segment during the current and corresponding periods, mainly due to the Group's focus on other businesses (such as property management and environmental sanitation)[41](index=41&type=chunk) - Based on the recent resumption of outbound tourism, the Group will re-evaluate the surrounding business environment and make appropriate arrangements for this business segment to achieve the overall best interests of the Company and its shareholders[41](index=41&type=chunk) [Future Outlook](index=24&type=section&id=Future%20Outlook) The Group plans to expand its business through organic growth, new project bids, strategic acquisitions, and partnerships, prioritizing projects with minimal capital requirements to mitigate liquidity risks, and actively seeking acquisition opportunities in property management, tourism, and environmental services - The Group plans to expand its business through organic growth, securing new projects through bidding, strategic acquisitions, and partnerships[43](index=43&type=chunk) - This expansion strategy aligns with the Group's asset-light investment model, prioritizing projects with minimal capital and working capital requirements, which minimizes liquidity risk and provides greater flexibility in investment management[43](index=43&type=chunk) - The Group is actively seeking acquisition opportunities, particularly in the property management, tourism, and environmental services segments, and exploring potential collaboration opportunities with target clients[43](index=43&type=chunk) [Financial Analysis](index=25&type=section&id=Financial%20Analysis) During the period, the Group's total revenue slightly decreased, but gross margin improved; property management revenue increased but gross profit decreased, while environmental sanitation revenue decreased but gross profit significantly increased; profit for the period rose due to reduced impairment provisions and cost control [Operating Performance (by Nature of Revenue)](index=25&type=section&id=Operating%20Performance) The Group's total revenue for the period was approximately HKD 167.7 million, a year-on-year decrease of 1.2%, with property management revenue increasing, environmental sanitation revenue decreasing, and integrated development revenue declining Analysis by Nature of Revenue (Thousand HKD) | Revenue Nature | H1 2024 | Share (%) | H1 2023 | Share (%) | | :--- | :--- | :--- | :--- | :--- | | Property management and leasing related services | 98,564 | 58.8 | 84,855 | 50.0 | | Environmental sanitation services | 65,249 | 38.9 | 80,068 | 47.2 | | Tourism-related income | 3,928 | 2.3 | 4,775 | 2.8 | | **Total** | **167,741** | **100.0** | **169,698** | **100.0** | - The Group recorded revenue of approximately **HKD 167.7 million** for the period, a decrease of approximately **1.2%** compared to the corresponding period last year[44](index=44&type=chunk) - Property management business revenue increased, mainly due to increased revenue from planning, promotion, and operation management businesses since November 2023, and the full recognition of revenue from five new public facility construction projects undertaken by the Group in the second half of 2023[44](index=44&type=chunk) - Environmental sanitation business revenue decreased, primarily due to the expiry of one service project and client service fee deductions as the Group failed to meet the client's strict service satisfaction standards[44](index=44&type=chunk) [Gross Profit and Gross Margin](index=26&type=section&id=Gross%20Profit%20and%20Gross%20Margin) The Group's gross profit for the period was approximately HKD 47.2 million, with gross margin increasing from 27.8% to 28.1%; property management gross profit and margin decreased, environmental sanitation gross profit and margin significantly increased, and integrated development gross profit decreased but margin slightly increased Total Gross Profit and Gross Margin (Thousand HKD) | Indicator | H1 2024 | H1 2023 | Change | | :--- | :--- | :--- | :--- | | **Total Gross Profit** | **47,200** | **47,200** | **Stable** | | **Total Gross Margin** | **28.1%** | **27.8%** | **+0.3 percentage points** | Segment Gross Profit and Gross Margin (Thousand HKD) | Segment | H1 2024 Gross Profit | H1 2023 Gross Profit | Gross Profit Change | H1 2024 Gross Margin (%) | H1 2023 Gross Margin (%) | Gross Margin Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Property Management | 25,600 | 28,900 | -3.3 Million HKD | 26.0 | 34.1 | -8.1 percentage points | | Environmental Sanitation | 18,100 | 14,100 | +4.0 Million HKD | 27.7 | 17.6 | +10.1 percentage points | | Integrated Development | 3,500 | 4,200 | -0.7 Million HKD | 89.7 | 88.9 | +0.8 percentage points | - The decrease in gross profit and gross margin for the property management business was due to competitive bidding prices for new projects, primarily in public facility projects, and an increase in direct labor costs of approximately **HKD 2.8 million**[46](index=46&type=chunk) - The increase in gross profit and gross margin for the environmental sanitation business was mainly due to a reduction in staff costs of approximately **HKD 3.5 million**[46](index=46&type=chunk) [Profit for the Period](index=27&type=section&id=Profit%20for%20the%20Period) Profit for the period was approximately HKD 23.8 million, an increase from the prior period, primarily driven by a net reduction of approximately HKD 6.0 million in impairment provisions for trade receivables and contract assets, and effective cost control measures reducing selling, general, and administrative expenses Profit for the Period (Thousand HKD) | Indicator | H1 2024 | H1 2023 | Change | | :--- | :--- | :--- | :--- | | Profit for the period | 23,800 | 20,600 | +3.2 Million HKD | - The increase in profit for the period was due to (i) a net reduction of approximately **HKD 6.0 million** in impairment provisions for trade receivables and contract assets; and (ii) effective cost control measures leading to reduced selling, general, and administrative expenses[47](index=47&type=chunk) - Unlike 2023, the Group did not record any gain on disposal during the period[47](index=47&type=chunk) [Asset Structure](index=28&type=section&id=Asset%20Structure) The Group's assets primarily include property, plant and equipment, investment properties, investments in associates, inventories, trade receivables, contract assets, and cash equivalents; property, plant and equipment mainly relate to tourism and environmental sanitation businesses, while trade receivables and contract assets increased, and cash and cash equivalents slightly decreased - Property, plant and equipment and right-of-use assets totaled approximately **HKD 150.6 million**, mainly referring to properties and other equipment of tourism scenic areas and cultural attractions owned by Tumen Tourism, and vehicles and other equipment for the Group's environmental sanitation business[48](index=48&type=chunk) - Investment properties of approximately **HKD 67.4 million** represent the fair value of right-of-use assets for non-residential properties in Shijiazhuang City and Xingtai City, Hebei Province, China, leased by the Group from property owners to earn rental income[48](index=48&type=chunk) - Investment in an associate of approximately **HKD 24.4 million** refers to the Group's **40% equity interest** in Zhangjiakou Dakun Zhifang Real Estate Development Co., Ltd., whose development project was suspended due to economic uncertainties brought by the COVID-19 pandemic[49](index=49&type=chunk)[50](index=50&type=chunk) - Trade receivables of approximately **HKD 92.7 million** slightly increased, mainly due to delayed payments from specific clients in the environmental sanitation and property management segments facing cash flow difficulties[50](index=50&type=chunk) - Contract assets of approximately **HKD 59.8 million** represent trade receivables yet to be invoiced, particularly from the environmental sanitation business, as these clients are government departments with strict procedures for verifying the Group's completed works[51](index=51&type=chunk) - Time deposits with original maturity over three months and cash and cash equivalents totaled approximately **HKD 258.9 million**, with the slight decrease mainly due to (i) payments of approximately **HKD 3.9 million** for vehicle and equipment purchases during the period; and (ii) distributions of approximately **HKD 24.2 million** paid to holders of perpetual convertible securities during the period[52](index=52&type=chunk) [Liability Structure](index=31&type=section&id=Liability%20Structure) The Group's liabilities primarily include trade payables, contract liabilities, other payables, and lease liabilities; total trade payables and contract liabilities slightly decreased, mainly due to the scaled-down environmental sanitation and integrated development segments, while other payables and lease liabilities also slightly declined - Trade payables and contract liabilities totaled approximately **HKD 55.1 million**, with the decrease mainly attributable to the scaled-down environmental sanitation segment and promotion, event planning, and consulting services under the integrated development segment during the period[53](index=53&type=chunk) - Other payables of approximately **HKD 64.8 million** mainly include prepayments and deposits for property management and environmental sanitation businesses, accrued salaries and retirement contributions, and consideration payable for the acquisition of Tumen Tourism[54](index=54&type=chunk) - Lease liabilities of approximately **HKD 43.4 million** primarily include lease liabilities for right-of-use assets of non-residential properties leased by the Group from property owners to earn rental income, and finance lease obligations for machinery and equipment in the environmental sanitation segment[54](index=54&type=chunk) [Liquidity and Financial Resources](index=32&type=section&id=Liquidity%20and%20Financial%20Resources) The Group maintains a prudent financial policy, funding operations and investments with internal resources; the current ratio is approximately 3.8, and the gearing ratio is not applicable due to the absence of bank and other borrowings - The Group maintains a prudent financial policy, strictly controlling its cash and risk management, and funded its operations and investments with internal resources during the period[55](index=55&type=chunk) Liquidity Indicators | Indicator | June 30, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Current Ratio | 3.8 | 3.8 | | Gearing Ratio | Not Applicable | Not Applicable | [Foreign Exchange Risk](index=32&type=section&id=Foreign%20Exchange%20Risk) Most of the Group's transactions are denominated and settled in RMB, and exchange rate fluctuations impact net assets; no derivative financial instruments were used to hedge foreign exchange risk during the period - Most of the Group's subsidiaries operate in China, with the majority of transactions denominated and settled in Renminbi[56](index=56&type=chunk) - Exchange rate fluctuations will affect the Group's net assets due to currency translation required in preparing the Group's consolidated accounts. During the period, the Group did not use derivative financial instruments to hedge its foreign exchange risk[56](index=56&type=chunk) [Capital Commitments](index=32&type=section&id=Capital%20Commitments) As of June 30, 2024, the Group's capital commitments related to equity securities investments amounted to approximately HKD 16.0 million Capital Commitments (Thousand HKD) | Item | June 30, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Capital commitments for equity securities investments | 16,000 | 16,500 | [Significant Acquisitions, Investments and Disposals](index=32&type=section&id=Significant%20Acquisitions%2C%20Investments%20and%20Disposals) The Group had no significant investments, acquisitions, or disposals of subsidiaries and associates during the period - The Group had no significant investments, significant acquisitions, or disposals of subsidiaries and associates during the period[57](index=57&type=chunk) [Pledge of Assets](index=32&type=section&id=Pledge%20of%20Assets) As of June 30, 2024, and December 31, 2023, the Group had no assets pledged - As of June 30, 2024, and December 31, 2023, the Group had no assets pledged[58](index=58&type=chunk) [Significant Contingent Liabilities](index=32&type=section&id=Significant%20Contingent%20Liabilities) As of June 30, 2024, and December 31, 2023, the Group had no significant contingent liabilities - As of June 30, 2024, and December 31, 2023, the Group had no significant contingent liabilities[59](index=59&type=chunk) [Number of Employees and Remuneration](index=33&type=section&id=Number%20of%20Employees%20and%20Remuneration) As of June 30, 2024, the Group had approximately 2,100 employees, with staff costs of about HKD 48.4 million, providing benefits such as medical insurance, MPF schemes, and China retirement plans Number of Employees and Remuneration | Indicator | June 30, 2024 | June 30, 2023 | | :--- | :--- | :--- | | Total number of employees | 2,100 | 2,200 | | Staff costs (including directors' emoluments) | 48.4 Million HKD | 50.2 Million HKD | - In addition to salaries, the Group also provides other employee benefits to all employees, such as employee medical insurance and Mandatory Provident Fund schemes[60](index=60&type=chunk) [Interim Dividend (Management Discussion and Analysis)](index=33&type=section&id=Interim%20Dividend%20(Management%20Discussion%20and%20Analysis)) The Board did not recommend the payment of any interim dividend for the period - The Board did not recommend the payment of any interim dividend for the period (corresponding period: nil)[61](index=61&type=chunk) [Other Information](index=34&type=section&id=Other%20Information) [Events After Reporting Period](index=34&type=section&id=Events%20After%20Reporting%20Period) The Company completed its name change in the Cayman Islands and Hong Kong on July 10 and August 1, 2024, respectively, from "Orient Victory Smart Urban Services Holding Limited" to "Gangyu Smart Urban Services Holding Limited" - The Company issued its Certificate of Change of Name in the Cayman Islands on July 10, 2024, and the Registrar of Companies in Hong Kong issued the Certificate of Registration of Alteration of Name of Registered Non-Hong Kong Company on August 1, 2024, confirming the change of the Company's English name from 'Orient Victory Smart Urban Services Holding Limited' to 'Gangyu Smart Urban Services Holding Limited' and its Chinese name from '東勝智慧城市服務控股有限公司' to '港譽智慧城市服務控股有限公司', both effective from July 10, 2024[62](index=62&type=chunk) [Corporate Governance](index=34&type=section&id=Corporate%20Governance) The Company complied with the Corporate Governance Code in Appendix C1 of the Listing Rules during the period, except for a deviation from code provision C.2.1 (separation of roles of Chairman and Chief Executive), but the Board believes power is balanced and management is sound - The Company has complied with all applicable code provisions set out in the Corporate Governance Code in Appendix C1 of the Listing Rules during the period, save for a deviation from code provision C.2.1 of the Corporate Governance Code[63](index=63&type=chunk) - Although the responsibilities of the Company's former Chairman and former Chief Executive Officer were vested in Mr. Shi Baodong, all major decisions were made after consulting the Board. The Board believes that the power is adequately balanced, and the existing corporate arrangements maintain the Company's sound management status[63](index=63&type=chunk) [Model Code for Securities Transactions by Directors](index=34&type=section&id=Model%20Code%20for%20Securities%20Transactions%20by%20Directors) The Company adopted the Model Code in Appendix C3 of the Listing Rules for directors' securities transactions, and all directors confirmed compliance during the period - The Company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix C3 of the Listing Rules as its code of conduct for directors' dealings in the Company's securities[64](index=64&type=chunk) - Specific enquiries have been made to all Directors, who have confirmed their compliance with the required standards set out in the Model Code throughout the period. The Company has not identified any non-compliance with the Model Code by its employees[64](index=64&type=chunk)[65](index=65&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=35&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company%27s%20Listed%20Securities) Neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of its shares listed on the Stock Exchange during the period - During the period, the Company did not redeem any of its shares listed on the Stock Exchange, and neither the Company nor any of its subsidiaries purchased or sold any such shares[66](index=66&type=chunk) [Constitutional Documents](index=35&type=section&id=Constitutional%20Documents) The Company adopted new amended and restated Articles of Association by special resolution at the AGM on June 28, 2024, to comply with the latest regulatory requirements - The new amended and restated Memorandum and Articles of Association were adopted by special resolution at the Company's Annual General Meeting held on June 28, 2024[67](index=67&type=chunk) - The amendments aim to align the Memorandum and Articles of Association with the latest regulatory requirements concerning the expansion of the paperless listing mechanism and mandatory electronic dissemination of corporate communications by listed issuers[67](index=67&type=chunk) [Audit Committee and Review of Interim Results](index=35&type=section&id=Audit%20Committee%20and%20Review%20of%20Interim%20Results) The Audit Committee, comprising three independent non-executive directors, reviews and oversees financial reporting and internal controls; the interim results for the period were reviewed by the Committee, which found applicable accounting standards adopted and sufficient disclosures made - The Audit Committee currently comprises three independent non-executive Directors and is primarily responsible for reviewing and overseeing the Group's financial reporting process and internal controls[68](index=68&type=chunk) - The Group's interim results for the period are unaudited but have been reviewed by the Audit Committee. The Audit Committee is of the opinion that applicable accounting standards have been adopted and the applicable requirements of the Listing Rules have been complied with, and that adequate disclosures have been made in the preparation of the relevant results[68](index=68&type=chunk) [Publication of Interim Results and Interim Report](index=36&type=section&id=Publication%20of%20Interim%20Results%20and%20Interim%20Report) This interim results announcement is published on the Company's and Stock Exchange's websites, and the interim report will be dispatched to shareholders and published on the websites in due course - This interim results announcement is published on the Company's website (www.gycsfw.com.cn) and the Stock Exchange's website (www.hkexnews.hk)[69](index=69&type=chunk) - The Company's interim report for the period, containing all information required by the Listing Rules, will be dispatched to shareholders and published on the aforementioned websites in due course[69](index=69&type=chunk) [Acknowledgement](index=36&type=section&id=Acknowledgement) The Board extends its sincere gratitude to shareholders, business partners, and employees - The Board extends its sincere gratitude to shareholders and business partners for their continuous support, and to employees for their dedicated service, contributions, and efforts during the period[70](index=70&type=chunk)

Financial Performance - The group recorded an increase in revenue of approximately HKD 115.4 million and profit of about HKD 10.1 million for the fiscal year ending December 31, 2023[8]. - Total revenue for the company reached approximately HKD 342.4 million in 2023, reflecting a growth of about 50.8% from HKD 227.0 million in 2022[44]. - The company recorded revenue from property management services of approximately HKD 185.7 million, an increase of approximately 17.9% from HKD 157.5 million in the previous year[15]. - Revenue from environmental hygiene services increased significantly to approximately HKD 147.4 million, up approximately 261.3% from HKD 40.8 million in the previous year[19]. - The gross profit for the year was approximately HKD 7.3 million, an improvement from HKD 2.9 million in 2022, primarily due to effective cost control and resource utilization[23]. - The company reported a net profit from continuing operations of approximately HKD 38.0 million in 2023, an increase of about HKD 16.2 million compared to HKD 21.8 million in 2022[49]. Business Expansion and Strategy - The total contracted gross floor area of the property management group reached approximately 11.8 million square meters as of December 31, 2023, compared to 8.8 million square meters in 2022[11]. - The area under management increased to approximately 11.0 million square meters in 2023, up from 7.9 million square meters in 2022[11]. - The group successfully added 15 new public building property management projects during the year, contributing to an increase in property management revenue[11]. - The company has diversified its business focus to include property management and environmental hygiene services since 2021[8]. - The company aims to expand its business through strategic acquisitions in overseas markets, particularly in property management, tourism, and environmental services[32]. Operational Efficiency and Challenges - The company anticipates challenges due to extended collection periods for customer service fees, which may impact cash flow and operational efficiency[19]. - The company plans to enhance operational efficiency and optimize workflows to reduce administrative and operational costs in the future[19]. - The group anticipates ongoing challenges in the Chinese economy, including stagnant private investment and declining consumer confidence, which may affect future project developments[52]. - The group has paused its development projects due to economic uncertainties and is considering the potential returns and capital investment needs before proceeding[52]. Corporate Governance and Management - The company is committed to maintaining high standards of corporate governance and transparency, as evidenced by the roles of its independent directors[90][94]. - The board of directors consists of seven members, including the chairman and CEO, ensuring a balance of executive and independent non-executive directors[199]. - The company has established an audit committee responsible for reviewing and supervising the financial reporting process and internal controls[181]. - The company emphasizes good corporate governance principles, focusing on accountability and transparency to shareholders[196]. Shareholder and Stakeholder Value - The company is committed to creating greater value for shareholders and stakeholders by improving service quality and environmental hygiene[7]. - The company will not declare a final dividend for the year, consistent with the previous year[69]. - The total distributable reserves available to equity shareholders as of December 31, 2023, is approximately HKD 183,876,000, down from HKD 207,374,000 in 2022[142]. Environmental and Social Responsibility - The company is committed to sustainable development and has implemented various measures to reduce environmental impact, including energy-saving and waste management policies[102]. - The company has a comprehensive privacy protection program in place to safeguard customer data[109]. Employee Management - The total number of employees as of December 31, 2023, is 2,184, a decrease from approximately 2,312 in 2022[64]. - Employee costs, including director remuneration, amounted to approximately HKD 99.0 million in 2023, compared to approximately HKD 56.7 million in 2022[64]. - The company aims to attract and retain skilled talent aligned with its corporate culture through training and development programs[106]. Connected Transactions and Compliance - The company confirmed compliance with the disclosure requirements under Chapter 14A of the Listing Rules regarding continuing connected transactions[177]. - The framework agreement and new framework agreement transactions are subject to reporting, annual review, announcement, circular, and independent shareholder approval due to the annual cap exceeding 10 million HKD[175]. - The company’s independent non-executive directors reviewed the continuing connected transactions and confirmed they were conducted in the ordinary course of business and on normal commercial terms[177].

Financial Performance - The company reported a net profit of HKD 37,969,000 for the year ended December 31, 2023, compared to HKD 27,915,000 in 2022, representing a year-over-year increase of approximately 36.2%[4]. - The company’s basic and diluted earnings per share for continuing operations were HKD 0.17 in 2023, compared to HKD 0.03 in 2022, marking a significant increase of 466.7%[4]. - The profit attributable to equity holders from continuing operations was approximately HKD 33.5 million, up from HKD 23.7 million in the previous year, mainly due to a turnaround in the environmental hygiene business from a loss of HKD 4.0 million to a profit of HKD 8.4 million[56]. - The group reported a pre-tax profit of HKD 41.7 million, compared to HKD 25.0 million in the previous year, showcasing significant growth in profitability[58]. - The company reported total revenue of HKD 342,371,000 for 2023, compared to HKD 226,967,000 in 2022, marking an overall increase of 50.8%[38]. Revenue Growth - Revenue from property management services increased to HKD 158,461,000 in 2023, up from HKD 136,057,000 in 2022, reflecting a growth of about 16.5%[17]. - The environmental sanitation services segment generated revenue of HKD 147,357,000 in 2023, a significant increase from HKD 40,800,000 in 2022, indicating a growth of approximately 261.5%[17]. - The company recognized total revenue of HKD 342,371,000 for the year 2023, compared to HKD 226,967,000 in 2022, representing an increase of about 50.8%[17]. - Revenue from continuing operations for 2023 was HKD 342,371,000, an increase from HKD 226,967,000 in 2022, representing a growth of 50.8%[25]. - The environmental hygiene business generated revenue of approximately HKD 147.4 million, a significant increase of about 261.3% from HKD 40.8 million in the previous year[96]. Asset and Liability Management - Total assets less current liabilities amounted to HKD 674,836,000 in 2023, compared to HKD 666,813,000 in 2022, showing a slight increase of about 1.5%[1]. - The total liabilities decreased from HKD 145,007,000 in 2022 to HKD 139,900,000 in 2023, a reduction of approximately 3.8%[1]. - The company’s cash and cash equivalents were HKD 201,373,000 as of December 31, 2023, down from HKD 205,857,000 in 2022, a decrease of approximately 2.4%[1]. - The group’s net asset value increased to HKD 622.1 million from HKD 606.3 million year-on-year, reflecting a solid financial position[45]. - The company’s prepayments, deposits, and other receivables decreased to approximately HKD 131.1 million from HKD 229.4 million in the previous year, mainly due to the return of land and repayment of advances[199]. Operational Efficiency - The group achieved a gross profit of HKD 85.2 million, up from HKD 68.5 million in the previous year, reflecting improved operational efficiency[58]. - The gross profit margin decreased from approximately 30.2% for the year ended December 31, 2022, to about 24.9% for the current year, a decline of approximately 5.3 percentage points[187]. - The property management business recorded a gross profit decrease from approximately HKD 61.2 million to about HKD 58.0 million, with a gross profit margin reduction of 7.7 percentage points to approximately 31.2%[189]. - The environmental sanitation business saw a significant increase in gross profit from approximately HKD 2.5 million to about HKD 19.8 million, with a gross profit margin improvement from approximately 6.0% to 13.5%[146]. - The group plans to continue expanding its service scope and optimizing workflows to reduce administrative and operational costs in future years[116]. Strategic Initiatives - The company plans to continue expanding its environmental sanitation services and diversify its tourism-related offerings in the coming years[18]. - The group plans to expand its leasing-related services by acquiring 47 commercial units in the Zijing Yuhua Center, with an estimated total building area of approximately 2,563 square meters[115]. - The group aims to adopt a light asset investment model to reduce liquidity risks and enhance investment management flexibility[107]. - The group is actively seeking acquisition opportunities in overseas markets to diversify its business portfolio and enhance its investment returns[124]. - The group aims to leverage local rural resources and cultural heritage to accelerate the new rural tourism model as outlined in the Shijiazhuang "14th Five-Year" cultural and tourism development plan[118]. Challenges and Risks - The group faced challenges with extended collection periods for customer service fees, impacting cash flow and operational efficiency[98]. - The group anticipates further challenges due to ongoing economic conditions in China, which have not fully recovered this year[98]. - The group did not record any revenue from the diversified tourism products and services segment this year, consistent with the previous year[143]. - The group continues to operate its promotional, event planning, and consulting services, contributing approximately HKD 1.0 million in revenue, a decline from HKD 20.4 million in the previous year[187]. - The company recorded no profit from discontinued operations after selling its diversified tourism products and services business in Hong Kong on August 30, 2022[192].

Financial Performance - The company recorded a profit attributable to equity holders of approximately HKD 18.2 million for the six months ended June 30, 2023, compared to HKD 2.3 million for the same period in 2022, representing a significant increase [7]. - The overall revenue and profit of the company improved during the reporting period, reflecting stable growth in its main business operations [7]. - The group recorded a revenue of approximately HKD 169.7 million for the six months ended June 30, 2023, representing an increase of about 68% compared to HKD 100.9 million for the same period last year [28]. - The profit before tax increased significantly to HKD 18.5 million, compared to HKD 3.0 million in the previous year, marking a 509.5% increase [69]. - The net profit attributable to equity holders of the company from continuing operations was HKD 18.2 million, compared to HKD 2.3 million in the prior year, reflecting a substantial growth of 687.0% [69]. - The company reported a total comprehensive loss of HKD 3.4 million for the period, a significant improvement from a loss of HKD 21.5 million in the same period last year [72]. Revenue Breakdown - The property management business recorded revenue of approximately HKD 84.9 million, representing a 12% increase compared to HKD 75.8 million for the six months ending June 30, 2022 [16]. - The environmental sanitation business confirmed revenue of approximately HKD 80.1 million, a significant increase from HKD 11.7 million for the six months ending June 30, 2022, due to new projects fully operational during the period [19]. - The tourism-related business generated revenue of approximately HKD 4.8 million, down from HKD 5.7 million for the six months ending June 30, 2022, primarily due to increased outbound tourism affecting local tourism [20]. - The marketing, event planning, and consulting services segment recorded revenue of approximately HKD 7.6 million, but no revenue was recognized during the current period due to changes in the client’s sales and marketing strategy [22]. - Rental income for the period was HKD 12.8 million, an increase from HKD 10.8 million, reflecting a growth of 18.6% [93]. Assets and Liabilities - As of June 30, 2023, the group's property, plant, and equipment, along with right-of-use assets, totaled approximately HKD 166.7 million, a decrease from HKD 182.7 million as of December 31, 2022 [40]. - The group's receivables from Dakun Zhifang amounted to approximately HKD 132.6 million as of June 30, 2023, compared to HKD 141.9 million as of December 31, 2022 [39]. - As of June 30, 2023, the group's liabilities, including trade payables and contract liabilities, were approximately HKD 57.3 million, a decrease from HKD 70.8 million as of December 31, 2022 [41]. - The total assets of the company as of June 30, 2023, were HKD 807,594,000, slightly down from HKD 811,820,000 as of December 31, 2022 [102]. - The total liabilities decreased to HKD 198,491,000 as of June 30, 2023, from HKD 205,537,000 as of December 31, 2022 [102]. Employee and Management - The total number of employees in the group was approximately 2,200, an increase from about 1,120 on June 30, 2022 [51]. - Employee costs, including director remuneration, amounted to approximately HKD 50.2 million for the period, compared to HKD 25.2 million for the six months ending June 30, 2022 [51]. - Total remuneration for key management personnel increased to HKD 3,984,000 in the first half of 2023, compared to HKD 3,823,000 in the same period of 2022 [129]. - The performance of individual employees is typically reviewed annually, with salary adjustments aligned with market trends [51]. Corporate Governance - The company has established an audit committee to oversee financial reporting and internal controls, ensuring compliance with applicable accounting standards [66]. - The company has adopted the standard code for securities transactions by directors, confirming compliance by all directors during the period [63]. - The company continues to maintain a balanced governance structure, with the roles of chairman and CEO held by the same individual, Mr. Shi, while ensuring all major decisions are made with board consultation [65]. Future Outlook and Strategy - The group plans to focus on property management and environmental hygiene businesses, leveraging government support policies for long-term growth [26]. - The company continues to focus on expanding its property management and environmental hygiene services in China, targeting urban and rural areas [99]. - The company is committed to enhancing its service offerings and exploring new market opportunities in the tourism sector [99]. Shareholder Information - The board does not recommend the payment of any interim dividend for the current period, consistent with the previous period where no dividend was declared [52]. - The company has not repurchased any of its listed shares during the period [54]. - Outstanding Global Holdings and Chance Talent Management Limited held approximately 50.36% and 51.31% of the company's shares, respectively [58].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告之內容概不負 責，對其準確性或完整性亦不發表任何聲明，並明確表示，概不就因本公告全部 或任何部份內容而產生或因倚賴該等內容而引致之任何損失承擔任何責任。 ORIENT VICTORY SMART URBAN SERVICES HOLDING LIMITED 東勝智慧城市服務控股有限公司 （於開曼群島註冊成立的有限公司） （股份代號：265） 截至二零二三年六月三十日止六個月的中期業績公告 摘要： • 本集團於本期間錄得收入約169.7百萬港元（截至二零二二年六月三十日 止六個月：約100.9百萬港元（經重列）），較二零二二年同期增加約68%， 主要受本集團於二零二二年六月至二零二二年十二月期間獲得四個新的 環境衛生項目的全期間表現所驅動，於本期間為本集團貢獻收入約80.1 百萬港元。 • 本期間本公司權益擁有人應佔持續經營業務溢利約為18.2百萬港元（截至 二零二二年六月三十日止六個月：約2.3百萬港元（經重列））。有關改善歸 因於本期間出售金旅時代51%股權的收益約9.2百萬港元以及環境衛生業 務的分部業績較二零二二年同期改善約12.1百萬港元。 • ...

Financial Performance - The company recorded a profit attributable to equity holders of approximately HKD 23.7 million for the year, compared to a loss of HKD 14.6 million in the previous year[8]. - The company recorded revenue of approximately HKD 227 million for the year, an increase of about 77% compared to HKD 128.4 million in the previous year[40]. - Gross profit for the year was approximately HKD 68.5 million, up about 89% from HKD 36.2 million in the previous year, primarily due to increased revenue from the property management business[45]. - The gross profit margin improved from approximately 28% in the previous year to about 30% this year, driven by the higher proportion of revenue from the property management segment[45]. - The company reported a profit of approximately HKD 21.8 million from continuing operations, a significant improvement from a loss of HKD 23.9 million in the previous year[46]. - Revenue from property management services for the year was approximately HKD 157.5 million, compared to HKD 72.0 million in 2021, reflecting a growth of 118%[18]. - The property management and leasing services revenue reached approximately HKD 157.5 million, a 119% increase compared to HKD 72.0 million in the previous year[29]. - The environmental sanitation services generated revenue of approximately HKD 40.8 million, up from HKD 2.2 million in the previous year[31]. - The group confirmed revenue of approximately HKD 40.8 million from environmental sanitation services, a significant increase from HKD 2.2 million in 2021[19]. - The company has outlined a future outlook with a projected revenue growth of 10% for the next fiscal year[91]. Business Expansion and Acquisitions - The company completed the acquisition of Hebei Dongsheng Property Service Co., Ltd. and Kinyoun International Limited, marking a diversification of its business focus[8]. - The company has expanded its business into property management and environmental sanitation services, responding to unprecedented market changes due to the pandemic[8]. - The group entered into agreements to acquire 47 commercial units with an estimated total gross floor area of approximately 2,563 square meters, expected to be delivered by December 2023[17]. - The company completed the acquisition of Kinyoun International, further expanding its leasing-related business[28]. - The company completed the acquisition of 47 commercial units in Shijiazhuang, Hebei Province, for a total consideration of approximately HKD 26.47 million[58]. - The acquisition transaction was classified as a connected transaction under the listing rules due to the ownership structure involving the chairman and CEO of the company[135]. Corporate Governance and Management - The board consists of seven directors, including three independent non-executive directors, ensuring a balance of skills and experience[155]. - The board has decided not to declare a final dividend for the year, focusing on reinvestment into business growth[94]. - The company has established good corporate governance practices and procedures, regularly reviewing them to ensure compliance with regulatory requirements[154]. - The audit committee reviewed the financial reporting procedures and internal controls, affirming compliance with applicable accounting standards and listing rules[142]. - The company has confirmed the independence of its independent non-executive directors as of the report date[110]. - The company has adopted a board diversity policy, considering factors such as gender, age, cultural background, and professional experience to enhance strategic goals and sustainable development[157]. - The company encourages directors to participate in continuous professional development programs to enhance their understanding of business operations[158]. - The company has established communication channels between the internal audit team and the audit committee to address areas of concern[168]. Market and Industry Trends - The property management sector in China is experiencing favorable policy developments, which are expected to enhance service quality and market opportunities[12]. - The company is focusing on urban services related to domestic demand and public services, indicating a strategic shift in its business model[8]. - The reopening of China in early 2023 is expected to gradually revive the outbound tourism industry, which the group will monitor closely[24]. - The company has been expanding its presence in the tourism and environmental sectors, with a focus on sustainable development[78]. Employee and Workforce Information - The total number of employees as of December 31, 2022, was 2,312, significantly up from 680 in 2021[63]. - Employee costs, including director remuneration, were approximately HKD 56.7 million for the year, compared to HKD 22.6 million in 2021[63]. - The group has a workforce of 2,312 employees as of December 31, 2022, with a gender ratio of 58.7% male (1,356) and 41.3% female (956) employees[175]. Financial Position and Assets - As of December 31, 2022, the total value of properties, plants, equipment, and right-of-use assets amounted to approximately HKD 182.7 million, an increase from HKD 137.9 million in 2021[51]. - The company’s assets primarily include properties, factories, equipment, and cash equivalents, with a total loan amount of approximately HKD 522.7 million secured against certain assets[50]. - The current ratio was approximately 3.4 as of December 31, 2022, compared to 3.7 in 2021, indicating a stable liquidity position[54]. - The company has made significant investments in its environmental hygiene business, with vehicle and equipment net book value reaching approximately HKD 63.9 million as of December 31, 2022, compared to HKD 3.9 million in 2021[51]. Compliance and Regulatory Matters - The company has maintained compliance with relevant laws and regulations, ensuring operational stability[90]. - The company will ensure timely disclosure of inside information to the public in accordance with the guidelines issued by the Hong Kong Securities and Futures Commission[170]. - The company has complied with the reporting and announcement requirements for all connected transactions as per the listing rules[135]. Future Outlook and Strategic Plans - The company aims to enhance its corporate image and clarify its positioning by changing its name to Dongsheng Smart City Service Holdings Limited, effective July 11, 2022[9]. - Future guidance indicates a strategic emphasis on mergers and acquisitions to bolster market position[78]. - The company is actively pursuing partnerships to expand its service offerings and geographic reach[78]. - Research and development efforts are focused on innovative technology solutions, with an investment of $2 million planned for the upcoming year[91].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告之內容概不負 責，對其準確性或完整性亦不發表任何聲明，並明確表示，概不就因本公告全部 或任何部份內容而產生或因倚賴該等內容而引致之任何損失承擔任何責任。 ORIENT VICTORY SMART URBAN SERVICES HOLDING LIMITED 東勝智慧城市服務控股有限公司 （於開曼群島註冊成立的有限公司） （股份代號：265） 截至二零二二年十二月三十一日止年度的 全年業績公告 摘要： • 本集團於本年度錄得收入約227.0百萬港元（二零二一年：約128.4百萬港 元（經重列）），較二零二一年同期增加約77%，主要受本集團自二零二一 年五月起開展物業管理業務所驅動。物業管理業務於本年度的全年度表 現為本集團貢獻收入約157.5百萬港元（二零二一年：約72.0百萬港元），較 二零二一年同期增加約119%。 • 本年度本公司權益擁有人應佔持續經營業務溢利約為23.7百萬港元（二零 二一年：本公司權益擁有人應佔持續經營業務年內虧損約14.6百萬港元（經 重列））。扭虧為盈主要歸因於物業管理業務於本年度的分部業績較二零 二一年同期增加約35.8百萬 ...

Financial Performance - The company recorded a profit attributable to equity holders of approximately HKD 3.2 million for the six months ended June 30, 2022, compared to a loss of approximately HKD 8.2 million for the same period in 2021[8]. - Revenue for the six months ended June 30, 2022, was HKD 124,794,000, a significant increase from HKD 47,740,000 in the same period of 2021, representing a growth of 161.5%[100]. - Gross profit for the same period was HKD 32,570,000, compared to HKD 6,488,000 in 2021, indicating a substantial increase of 400.5%[100]. - The company reported a profit from continuing operations of HKD 2,977,000 for the six months ended June 30, 2022, recovering from a loss of HKD 11,234,000 in the prior year[100]. - The total comprehensive loss for the period was HKD 21,479,000, compared to a loss of HKD 21,000 in the same period of 2021[103]. - The company reported a net loss of HKD 6,178,000 for the first half of 2022, compared to a loss of HKD 3,371,000 in 2021[135]. - The basic and diluted loss per share from continuing operations was HKD 0.06, compared to a loss of HKD 0.10 in the previous year[100]. Revenue Breakdown - Revenue from property management services amounted to approximately HKD 75.8 million for the period, compared to HKD 10.4 million for the six months ended June 30, 2021[16]. - The group confirmed revenue of approximately HKD 11.7 million from environmental sanitation services during the period, a significant increase from zero for the six months ended June 30, 2021[19]. - The group generated approximately HKD 24.6 million in revenue from property management services provided to Dongsheng Real Estate and its subsidiaries during the period, compared to HKD 1.2 million for the six months ended June 30, 2021[15]. - Revenue from promotional, event planning, and consulting services was approximately HKD 7.6 million during the period, down from HKD 16.9 million for the six months ended June 30, 2021[20]. - Revenue from the tourism segment contributed approximately HKD 5.7 million during the period, down from HKD 15.7 million in the previous period due to changes in the operating model[30]. - The diversified travel products and services segment recorded revenue of approximately HKD 23.9 million, up from HKD 4.7 million, representing a growth of 404%[37]. Business Developments - The company completed the acquisition of Shijiazhuang Dongsheng Property Services Co., Ltd. and Kinyoun International Limited in May and August 2021, respectively, marking a successful diversification of its business focus[8]. - The company plans to change its name from "Orient Victory Travel Group Limited" to "Orient Victory Smart Urban Services Holding Limited," effective July 11, 2022, to better reflect its diversified business development[9]. - The acquisition of 47 commercial units with an estimated total building area of approximately 2,563 square meters is expected to be completed by December 2023[14]. - The group plans to reallocate resources to more profitable businesses, such as property management and leasing services, following the sale of its 65% stake in Four Seas Travel, which is expected to yield a net gain of no less than approximately HKD 5.0 million[22]. - The group continues to expand its operational scale by winning multiple property management service projects in Shijiazhuang, Hebei Province, covering hospitals, colleges, commercial buildings, and government buildings[13]. Assets and Liabilities - As of June 30, 2022, total assets amounted to HKD 578,904 thousand, a decrease of 6.4% from HKD 618,265 thousand as of December 31, 2021[106]. - Total liabilities decreased to HKD 172,087 thousand, down from HKD 169,020 thousand as of December 31, 2021, indicating a slight reduction in financial obligations[109]. - The equity attributable to owners of the company decreased to HKD 595,694 thousand from HKD 623,374 thousand, reflecting a decline of approximately 4.4%[109]. - Trade receivables increased to approximately HKD 59.4 million as of June 30, 2022, from HKD 30.6 million as of December 31, 2021, primarily due to the collection of trade receivables and recognition of related income[50]. - Cash and cash equivalents increased to approximately HKD 295.9 million as of June 30, 2022, from HKD 256.6 million as of December 31, 2021, mainly due to the recovery of loans and collection of receivables[52]. Employee and Management - The total number of employees as of June 30, 2022, was approximately 1,120, significantly up from 220 as of June 30, 2021[66]. - Employee costs, including director remuneration, were approximately HKD 25.2 million for the period, compared to HKD 12.3 million for the same period last year[66]. - The total remuneration for key management personnel for the six months ended June 30, 2022, was approximately HKD 3,823,000, an increase from HKD 2,386,000 for the same period in 2021[163]. Corporate Governance - The company has established an audit committee to oversee financial reporting and internal controls, ensuring compliance with applicable accounting standards[96]. - The company has maintained compliance with the corporate governance code, with all significant decisions made after consulting the board[92]. - The company has adopted a new share option scheme approved by shareholders on June 5, 2012, although no options have been granted under this scheme since its adoption[91]. Strategic Initiatives - The company entered into a share sale agreement to sell its 65% stake in Four Seas Travel Limited for a nominal value of HKD 1[169]. - The sale is part of the company's strategic initiatives to optimize its portfolio[169]. - The company is focused on enhancing shareholder value through strategic divestitures[169]. - The management is committed to transparency regarding the sale process and its implications[169].

Revenue and Financial Performance - The group's revenue from diverse travel products and services decreased from approximately HKD 918 million in 2020 to about HKD 145 million in the current year due to outbound travel restrictions[9]. - The integrated development segment reported revenue of approximately HKD 27.1 million, down from HKD 29.8 million in the previous year, reflecting ongoing operational challenges[10]. - Revenue from promotional, event planning, and consulting services was approximately HKD 26.5 million, a decrease from HKD 40.8 million in the prior year, primarily due to fewer real estate project promotions[10]. - The group's revenue for the year was approximately HKD 142.3 million, a decrease of about 12% compared to HKD 162.4 million in the previous year[38]. - Revenue from diversified travel products and services dropped significantly from approximately HKD 91.8 million to about HKD 14.5 million due to the impact of the pandemic[34]. - The gross profit for the year was approximately HKD 38.8 million, an increase of about 55% from HKD 25.0 million in the previous year, primarily due to the commencement of property management services[41]. - The gross profit margin improved from 15% in the previous year to 27% this year, attributed to the higher margin of property management services[41]. - The loss from continuing operations for the year was approximately HKD 26.9 million, a reduction from HKD 59.4 million in the previous year[42]. - The group recorded a profit of approximately HKD 7.9 million from the property management segment, which was zero in the previous year[42]. Acquisitions and Investments - The group completed the acquisition of all shares in Dongsheng Property Services in May 2021, marking the start of its property management business[39]. - The group further expanded its leasing-related business by acquiring Kinyoun International in August 2021[39]. - The acquisition of Dongsheng Property Services contributed approximately HKD 64.6 million in property management and leasing revenue since its completion on May 18, 2021[13]. - The acquisition of Kinyoun International Limited generated approximately HKD 7.4 million in leasing-related revenue since its completion on August 9, 2021[13]. - The company plans to explore potential profitable investments and acquisitions in the environmental sanitation and healthcare sectors to enhance overall shareholder value[19]. Cash Flow and Financial Position - Cash and cash equivalents increased from approximately HKD 179.3 million on December 31, 2020, to approximately HKD 255.2 million on December 31, 2021[17]. - The total amount of loans secured by Dakun Zhifang's land and other assets was approximately RMB 556.6 million (equivalent to about HKD 680.8 million)[31]. - As of December 31, 2021, prepayments, deposits, and other receivables amounted to approximately HKD 314.6 million, significantly up from HKD 109.7 million in 2020[51]. - Restricted bank deposits and cash and cash equivalents increased to approximately HKD 256.6 million from HKD 181.5 million in 2020, primarily due to proceeds from the sale of land in New Zealand[53]. - The current ratio as of December 31, 2021, was approximately 3.7, down from 4.4 in 2020, indicating a decrease in liquidity[56]. Corporate Governance and Compliance - The company has established an audit committee consisting of two independent non-executive directors and one non-executive director[161]. - The audit committee is responsible for reviewing the effectiveness of the company's internal control systems, including financial, operational, and compliance controls[188]. - The company ensures compliance with the Securities and Futures Ordinance and listing rules, with a commitment to timely disclosure of inside information[188]. - The company has adhered to all applicable corporate governance codes, except for the separation of the roles of chairman and CEO, which are held by the same individual[182]. - The independent auditor for the group's financial statements is KPMG, which will be eligible for reappointment at the upcoming annual general meeting[169]. Employee and Management Information - The total number of employees increased to approximately 680 as of December 31, 2021, compared to 190 in 2020, while employee costs were approximately HKD 22.6 million, down from HKD 30.0 million in 2020[65]. - The company has a strong leadership team with extensive experience in various sectors, including tourism and real estate[78]. - The company encourages senior management to participate in external seminars and internal training to enhance their professional knowledge[196]. Strategic Focus and Future Outlook - The company aims to develop its property management and leasing services through improved management, organic growth, and strategic acquisitions[19]. - The company is exploring new revenue sources in China, focusing on property management, urban sanitation, and healthcare services to adapt to market changes caused by the pandemic[12]. - The company aims to expand its market presence in tourism services and scenic area management in China[72]. - The company has been focusing on urban renewal as a core business strategy[72]. - The company is committed to maintaining a strong governance structure with experienced board members overseeing its operations[80].

Revenue Performance - The company's revenue from diversified travel products and services decreased from approximately HKD 77.9 million in the six months ended June 30, 2020, to about HKD 4.7 million in the current period due to travel restrictions[9]. - Revenue from the integrated development segment increased from approximately HKD 10.6 million to about HKD 15.7 million, benefiting from effective government measures and the ongoing improvement of the pandemic situation in mainland China[10]. - The company generated approximately HKD 16.9 million from promotion, event planning, and consulting services in the current period, compared to HKD 11.2 million in the previous period[10]. - The group reported revenue contribution from Hebei Tumen Tourism Development Co., Ltd. of approximately HKD 15.7 million during the period, an increase from approximately HKD 10.6 million in the same period last year[23]. - Revenue for the six months ended June 30, 2021, was HKD 47,740,000, a decrease from HKD 112,648,000 in the same period of 2020, representing a decline of approximately 57.6%[81]. - The diversified travel products and services segment reported a loss of 3,932 thousand for the period, while the property management segment reported a loss of 6,325 thousand[115]. Financial Position - Cash and cash equivalents increased from approximately HKD 179.3 million on December 31, 2020, to approximately HKD 328.9 million on June 30, 2021, mainly due to the sale of land in New Zealand and the collection of refundable investment deposits totaling approximately HKD 81.5 million[13]. - The group's current ratio was approximately 3.6 as of June 30, 2021, down from 4.4 as of December 31, 2020[45]. - Total assets as of June 30, 2021, were 902,660 thousand, an increase from 850,387 thousand as of December 31, 2020[117]. - Total liabilities increased to 200,045 thousand as of June 30, 2021, compared to 147,834 thousand as of December 31, 2020[117]. - The company's total equity attributable to owners was HKD 627,514,000, slightly up from HKD 624,820,000 at the end of 2020, showing a marginal increase of about 0.1%[90]. Operational Developments - The company completed the acquisition of Shijiazhuang Dongsheng Property Service Co., Ltd., contributing approximately HKD 10.4 million in property management and leasing-related revenue during the current period[12]. - The group completed the acquisition of all shares in Dongsheng Property Services, marking the start of its property management business[32]. - The group has been exploring property management opportunities in China since July 2020, with a conditional agreement to acquire all shares of Dongsheng Property Services for RMB 7.5 million (approximately HKD 9.14 million)[20]. - The company plans to focus on expanding its property management services and diversifying its travel products in the future[114]. Cost Management - The group reduced wages, salaries, and other benefits by 33% compared to the same period last year[13]. - Employee costs, including directors' remuneration, were approximately HKD 12.3 million for the period, down from HKD 16.0 million for the same period in 2020[54]. - The company's total expenses for wages, salaries, and other benefits decreased to 12,253,000 for the six months ended June 30, 2021, from 15,986,000 in the same period of 2020, reflecting cost-cutting measures[127]. Challenges and Future Outlook - The company continues to face challenges due to ongoing travel restrictions and the uncertain timeline for the pandemic's resolution[9]. - The group anticipates that tourism-related businesses will flourish in the long term, considering the expected steady development of the Chinese economy and rising living standards[14]. - The group will continue to adopt a prudent approach in developing other businesses to improve the interests of the group and its shareholders amid a challenging business environment[15]. Governance and Compliance - The Audit Committee has reviewed the interim results, ensuring compliance with applicable accounting standards and listing rules[78]. - The company has maintained compliance with the Corporate Governance Code, except for the separation of the roles of Chairman and CEO[75]. - The interim results for the period have not been audited but have been reviewed by the Audit Committee[78]. Shareholder Information - The company did not recommend any interim dividend for the period, consistent with the previous year[55]. - The company has not granted any share options under the 2012 Share Option Scheme since its adoption[74]. - The company expresses gratitude to shareholders and business partners for their continued support during the period[80].