Summary of Conference Call Company and Industry - The conference call pertains to the performance of a company in the economic services sector, specifically focusing on property management and community value-added services. Key Points and Arguments Financial Performance - The company reported a revenue of 2.97 billion yuan for the year 2024, representing a year-on-year growth of 9.7% [2] - The basic property management business saw a significant revenue increase of 30.7%, indicating robust growth in this segment [2] - Economic profit for 2024 reached 384 million yuan, up 12% year-on-year, maintaining a double-digit growth trend [2] - The economic profit margin stood at 12.9%, reflecting a slight increase of 0.2 percentage points year-on-year, positioning the company favorably within the industry [2] Scale and Market Focus - The company emphasized its focus on high-quality urban areas, with a contracted management area of 134 million square meters, a 26% increase year-on-year [2] - The loan area surpassed 100 million square meters, growing by over 20% year-on-year, with over 90% of this area located in first and second-tier cities [2] - In 2024, the company secured 100 outsourcing projects, generating over 200 million yuan in revenue, with more than 95% of these projects located in first and second-tier cities [5] Business Structure and Growth Areas - The community value-added services segment generated 2.64 billion yuan in revenue, a 20% increase, accounting for 89% of total revenue [3] - The gross profit from this segment reached 600 million yuan, up 15%, representing 85% of total gross profit [3] - The company is focusing on enhancing the quality and profitability of its community value-added services, with a particular emphasis on community space operation services, which saw over 30% growth [12] Digital Transformation and Efficiency - The company is investing in digital transformation projects aimed at improving operational efficiency and customer experience, including a financial shared services project that reduced costs [7] - The call center's operational efficiency improved by 20%, enhancing customer service capabilities [7] Profitability and Future Strategies - The company aims to maintain a stable gross profit margin of around 15% for its basic property management services, with potential growth in the community value-added services segment, which has a gross margin exceeding 50% [9] - Future strategies include cost reduction measures and exploring tax incentives to enhance overall net profit margins [9] Mergers and Acquisitions - The company has completed two significant acquisitions in recent years, which have integrated well and met initial investment expectations [10] - Future M&A activities will be approached cautiously, focusing on high-quality targets rather than aggressive expansion [10] Customer Satisfaction - The company maintains a customer satisfaction score consistently above 90, although there has been a slight decline in satisfaction levels for residential services due to ongoing service upgrades [18][19] Other Important Content - The company is actively engaging with top-tier clients and has successfully secured projects with notable firms such as CapitaLand and Yili Group [5] - The management is committed to ensuring that any share buyback or major shareholder actions do not jeopardize the public shareholding requirements [15]

Financial Reporting - Jinmao Property Services reported financial data for the fiscal years ending December 31, 2023, and December 31, 2024[3]. - The company has submitted its statutory annual consolidated financial statements for the year ending December 31, 2023, to the Companies Registry[3]. - The company will timely submit the statutory annual consolidated financial statements for the year ending December 31, 2024[3]. Auditor's Report - The auditor's report for both fiscal years was unqualified, with no emphasis of matter or statements made under sections 406(2), 407(2) or (3) of the Companies Ordinance[3]. Supplementary Information - The announcement serves as a supplementary report to the annual performance announcement and should be read in conjunction with it[4].

Financial Performance - For the year ended December 31, 2024, the total revenue of Jinmao Property Services was approximately RMB 2,966.0 million, an increase of about RMB 261.6 million or 9.7% compared to RMB 2,704.4 million for the year ended December 31, 2023[4] - The gross profit for the year ended December 31, 2024, was approximately RMB 706.4 million, a decrease of about 5.4% from RMB 746.5 million for the year ended December 31, 2023[4] - The profit for the year ended December 31, 2024, was approximately RMB 384.0 million, an increase of about 12.0% compared to RMB 342.9 million for the year ended December 31, 2023[4] - The basic and diluted earnings per share attributable to ordinary equity holders of the parent for the year ended December 31, 2024, was RMB 0.41, up from RMB 0.37 for the year ended December 31, 2023[4] - The total comprehensive income for the year ended December 31, 2024, was RMB 377.5 million, compared to RMB 340.9 million for the year ended December 31, 2023[7] - Total revenue for 2024 reached RMB 2,965,973,000, an increase of 9.6% from RMB 2,704,412,000 in 2023[20] - Customer contract revenue grew to RMB 2,935,342,000, up 9.1% from RMB 2,690,744,000 in the previous year[20] - Property management services revenue increased significantly to RMB 2,058,567,000, a rise of 30.6% compared to RMB 1,574,891,000 in 2023[20] - Other income and gains totaled RMB 65,078,000, compared to RMB 30,032,000 in 2023, marking a 116.5% increase[20] - The pre-tax profit for 2024 was RMB 372,456,000, up from RMB 337,315,000 in 2023, reflecting a growth of 10.4%[26] Assets and Liabilities - The total non-current assets as of December 31, 2024, amounted to RMB 941.7 million, an increase from RMB 615.6 million as of December 31, 2023[10] - The total current assets as of December 31, 2024, were RMB 3,388.7 million, compared to RMB 2,998.2 million as of December 31, 2023[9] - The net asset value attributable to equity holders of the parent as of December 31, 2024, was RMB 1,704.8 million, up from RMB 1,541.8 million as of December 31, 2023[10] - Trade receivables amounted to RMB 1,048,773,000, an increase from RMB 928,279,000 in 2023, with a net value of RMB 982,682,000 after provisions[27] - Trade receivables from third parties increased from approximately RMB 566.9 million as of December 31, 2023, to approximately RMB 821.7 million as of December 31, 2024, mainly due to business expansion and increased managed building area[53] - Trade payables and notes payable increased from approximately RMB 597.3 million as of December 31, 2023, to approximately RMB 678.1 million as of December 31, 2024, primarily due to business expansion leading to increased procurement of services and maintenance[57] - As of December 31, 2024, the company's other payables and accrued expenses amounted to approximately RMB 926.7 million, an increase from approximately RMB 756.5 million as of December 31, 2023, representing a growth of about 22.5%[58] - The company's cash and cash equivalents as of December 31, 2024, were approximately RMB 1,399.5 million, up from RMB 1,252.0 million as of December 31, 2023, indicating an increase of about 11.8%[63] - The current ratio as of December 31, 2024, was approximately 1.43, a decrease from 1.57 as of December 31, 2023[64] - The company had no outstanding borrowings as of December 31, 2024, consistent with the previous year[63] Dividends - The board proposed a final dividend of HKD 0.096 per share for the year ended December 31, 2024[4] - The company plans to distribute a mid-term dividend of HKD 0.084 per share, totaling RMB 69,136,000, and a proposed final dividend of HKD 0.096 per share, totaling RMB 80,144,000[24] - The board proposed a final dividend of HKD 0.096 per share for the year ending December 31, 2024, subject to shareholder approval at the 2024 annual general meeting[69] Operational Highlights - The total contracted construction area as of December 31, 2024, was approximately 134.3 million square meters, and the managed construction area was approximately 100.9 million square meters, representing increases of about 26.2% and 19.8%, respectively, compared to December 31, 2023[4] - The company is recognized as a leading provider in the high-end property management sector in China, ranking among the top 15 in various industry assessments[28] - Property management service revenue increased by approximately 30.7% from RMB 1,574.891 million in 2023 to RMB 2,058.567 million in 2024, driven by an increase in managed building area from approximately 84.2 million square meters to 100.9 million square meters[37] - Non-owner value-added service revenue decreased by approximately 35.7% from RMB 504.636 million in 2023 to RMB 324.670 million in 2024, primarily due to a reduction in the number of new business projects acquired[37] - Community value-added service revenue declined by approximately 6.7% from RMB 624.885 million in 2023 to RMB 582.736 million in 2024, influenced by renovation commencement rates and consumer spending power[37] Cost Management - Sales costs increased by approximately 15.4% from RMB 1,957.9 million in 2023 to RMB 2,259.6 million in 2024, aligning with revenue growth trends[38] - Gross profit decreased by approximately 5.4% from RMB 746.542 million in 2023 to RMB 706.407 million in 2024, with a gross margin decline from 27.6% to 23.8%[39] - The gross margin for property management services was approximately 15.1% in 2024, down from 15.8% in 2023, due to increased investments in quality improvement[40] - Selling and distribution expenses decreased by approximately 37.8% from approximately RMB 56.1 million for the year ended December 31, 2023, to approximately RMB 34.9 million for the year ending December 31, 2024, mainly due to a reduction in labor costs and advertising expenses[43] - Administrative expenses decreased by approximately 26.8% from approximately RMB 253.4 million for the year ended December 31, 2023, to approximately RMB 185.4 million for the year ending December 31, 2024, primarily due to organizational optimization and improved efficiency[44] - Financing costs increased by approximately 151.1% from approximately RMB 4.5 million for the year ended December 31, 2023, to approximately RMB 11.3 million for the year ended December 31, 2024, mainly due to an increase in lease liabilities[45] Strategic Initiatives - The company plans to focus on high-tier cities and enhance service quality, operational efficiency, and marketing capabilities as part of its 2025 strategic goals[32] - The company aims to implement a "1245" strategy to prioritize customer needs and drive product and service upgrades for high-quality development[32] - ESG management is a key long-term strategy for the company, emphasizing sustainable value creation for stakeholders[34] - The company plans to upgrade its smart management service system and develop smart community and city solutions, with an allocation of approximately HKD 72.0 million, representing 9.2% of the net proceeds[67] Employee and Governance - As of December 31, 2024, the group had 2,670 full-time employees, an increase from 2,098 employees as of December 31, 2023, with a female employee ratio of 37.0%[75] - Total employee costs for the year were approximately RMB 550 million, compared to RMB 530 million in 2023[75] - The board confirmed compliance with the corporate governance code throughout the year ending December 31, 2024[85] - The company has adopted the "Standard Code" for securities trading by directors as per Appendix C3 of the Listing Rules[86] - All directors have confirmed compliance with the Standard Code for the fiscal year ending December 31, 2024[86] Acquisitions - The company completed the acquisition of Runwu Jiaye for a total cash consideration of RMB 323.8 million on January 18, 2024, enhancing its property management capabilities[80] - The acquired company primarily operates in property management and hotel operations, aligning with the group's strategic positioning in high-end projects[81] - The acquisition is expected to strengthen the company's non-cyclical business, with a high proportion of revenue from property management services[81] - The company has not made any other significant investments or acquisitions as of the announcement date[83]

Think Far 以恒心 Grow Further 2024 中期報告 INTERIM REPORT (Incorporated in Hong Kong with limited liability) (在香港註冊成立之有限公司) Stock Code 股份代號: 00816 2024 中期報告 Interim Report ianaly would mps and in the minute with and the may be and the seems of the seems of the seems of the and summission in mmmmm o (o) (o) x 目 錄 | --- | --- | --- | --- | --- | --- | --- | |--------------------------|-------|-------|-------|-------|-------|-------| | | | | | | | | | 公司概覽 | | | | | | 2 | | 公司資料 | | | | | | 3 | | 財務摘要 | | | | | | 4 ...

Investment Rating - The report upgrades the investment rating of the company from Hold to Buy, with a target price set at HKD 4.91, reflecting a 10x P/E ratio for 2024 [2][3][4]. Core Insights - The company achieved a net profit growth of 18.9% year-on-year in the first half of 2024, supported by effective cost control and a strong performance in property management services [2][6]. - The management maintains a net profit growth target of over 20% for 2024, driven by the integration of acquired companies and a lower base in the second half of the year [2][3]. - The company's independence has significantly improved, with the proportion of third-party managed saleable area increasing from 33% in 2022 to 50.5% in 2024 [3][4]. Financial Performance - For the first half of 2024, the company reported a revenue increase of 10.2% to RMB 1.5 billion, with property management (PM) revenue growing by 34.6% to RMB 1 billion [2][6]. - The gross profit margin (GPM) for basic PM improved by 1.3 percentage points to 24.6%, while the GPM for community value-added services (VAS) increased by 3.6 percentage points to 42.3% [2][6]. - The company expects to manage an additional 8 million square meters of building area from the acquisition of RUNWU JIAYE, contributing approximately 27% to the annual total [2][3]. Revenue and Profit Forecast - Revenue is projected to grow from RMB 2.7 billion in 2023 to RMB 3.1 billion in 2024, with a compound annual growth rate (CAGR) of 14.4% [5][9]. - Net profit is expected to rise from RMB 337.3 million in 2023 to RMB 399.6 million in 2024, reflecting an 18.5% increase [5][9]. - The earnings per share (EPS) is forecasted to increase from RMB 0.37 in 2023 to RMB 0.44 in 2024 [5][9]. Valuation Metrics - The company is currently trading at a P/E ratio of 5.3x for 2024, which is below the industry average, indicating potential undervaluation [5][12]. - The price-to-book (P/B) ratio is projected to decline from 1.4 in 2023 to 1.2 in 2024, suggesting a more attractive valuation [5][12]. - The dividend yield is expected to increase from 6.6% in 2023 to 7.5% in 2024, enhancing the attractiveness for income-focused investors [5][12].

4 Sep 2024 CMB International Global Markets | Equity Research | Company Update Jinmao Property Services (816 HK) | --- | --- | --- | --- | --- | |-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- ...

[Company Overview and Financial Summary](index=1&type=section&id=公司概覽及財務摘要) [Interim Results Summary](index=1&type=section&id=中期業績摘要) Jinmao Services' interim results for H1 2024 show growth in revenue, gross profit, and profit for the period, with profit up 21.9% year-on-year, expanded GFA, and an interim dividend declaration 2024 H1 Key Financial and Operational Metrics | Metric | H1 2024 (RMB million) | H1 2023 (RMB million) | Y-o-Y Growth (%) | | :--- | :--- | :--- | :--- | | Total Revenue | 1,491.4 | 1,353.3 | 10.2 | | Gross Profit | 366.4 | 357.4 | 2.5 | | Profit for the Period | 181.0 | 148.5 | 21.9 | | EPS (RMB) | 0.19 | 0.16 | 18.8 | | Contracted GFA (million sq.m.) | 117.4 | 94.5 (估算) | 24.2 | | GFA Under Management (million sq.m.) | 98.1 | 71.0 (估算) | 38.2 | | Interim Dividend (HKD/share) | 0.084 | N/A | - | [Interim Condensed Consolidated Financial Statements](index=2&type=section&id=中期簡明綜合財務報表) [Interim Condensed Consolidated Statement of Profit or Loss](index=2&type=section&id=中期簡明綜合損益表) For H1 2024, Group revenue grew 10.2% to RMB 1,491.4 million, gross profit rose 2.5% to RMB 366.4 million, profit for the period increased 21.9% to RMB 181.0 million, and basic EPS was RMB 0.19 Interim Condensed Consolidated Statement of Profit or Loss Summary | Metric | H1 2024 (RMB thousand) | H1 2023 (RMB thousand) | | :--- | :--- | :--- | | Revenue | 1,491,371 | 1,353,342 | | Cost of Sales | (1,124,924) | (995,987) | | Gross Profit | 366,447 | 357,355 | | Other Income and Gains | 8,881 | 13,184 | | Selling and Distribution Expenses | (18,287) | (23,680) | | Administrative Expenses | (85,056) | (135,243) | | Other Expenses | (32,863) | (11,892) | | Finance Costs | (4,049) | (2,123) | | Profit Before Tax | 235,073 | 197,601 | | Income Tax Expense | (54,115) | (49,081) | | Profit for the Period | 180,958 | 148,520 | | Profit Attributable to Owners of the Parent | 173,436 | 145,829 | | Profit Attributable to Non-controlling Interests | 7,522 | 2,691 | | Basic and Diluted EPS | RMB 0.19 | RMB 0.16 | [Interim Condensed Consolidated Statement of Comprehensive Income](index=3&type=section&id=中期簡明綜合全面收益表) For H1 2024, total comprehensive income was RMB 177.3 million, up from RMB 146.4 million last year, driven by increased profit, despite other comprehensive loss from exchange differences Interim Condensed Consolidated Statement of Comprehensive Income Summary | Metric | H1 2024 (RMB thousand) | H1 2023 (RMB thousand) | | :--- | :--- | :--- | | Profit for the Period | 180,958 | 148,520 | | Exchange differences on translation of financial statements of the Company | (3,639) | (2,163) | | Other comprehensive loss for the period, net of tax | (3,639) | (2,163) | | Total comprehensive income for the period | 177,319 | 146,357 | | Total comprehensive income attributable to owners of the parent | 169,797 | 143,666 | | Total comprehensive income attributable to non-controlling interests | 7,522 | 2,691 | [Interim Condensed Consolidated Statement of Financial Position](index=4&type=section&id=中期簡明綜合財務狀況表) As of June 30, 2024, total net assets were RMB 1,635.8 million, non-current assets increased, but a larger increase in current liabilities led to a decrease in net current assets and current ratio Interim Condensed Consolidated Statement of Financial Position Summary | Metric | June 30, 2024 (RMB thousand) | December 31, 2023 (RMB thousand) | | :--- | :--- | :--- | | **Non-current Assets** | | | | Property, Plant and Equipment | 102,379 | 95,943 | | Investment Properties | 136,979 | 128,206 | | Right-of-use Assets | 38,456 | 27,844 | | Goodwill | 479,874 | 249,122 | | Intangible Assets | 99,032 | 101,746 | | Total Non-current Assets | 883,311 | 615,611 | | **Current Assets** | | | | Trade Receivables | 1,246,583 | 900,304 | | Cash and Cash Equivalents | 1,285,588 | 1,252,038 | | Total Current Assets | 3,458,817 | 2,998,179 | | **Current Liabilities** | | | | Trade Payables | 708,251 | 602,850 | | Other Payables and Accrued Expenses | 975,727 | 756,495 | | Contract Liabilities | 644,701 | 486,839 | | Total Current Liabilities | 2,552,679 | 1,908,826 | | Net Current Assets | 906,138 | 1,089,353 | | **Total Equity** | | | | Net Assets | 1,635,793 | 1,568,017 | [Notes to the Interim Condensed Consolidated Financial Information](index=6&type=section&id=中期簡明綜合財務資料附註) [Company Information](index=6&type=section&id=公司資料) Jinmao Services, incorporated in Hong Kong in 2020, provides property management and value-added services in China, with China Jinmao as its direct holding company - The company was incorporated in Hong Kong on September 14, 2020, primarily providing property management, non-owner value-added, and community value-added services in China[8](index=8&type=chunk) - The direct holding company is China Jinmao Holdings Group Co., Ltd. (a Hong Kong-listed company), and the ultimate holding company is Sinochem Holdings Corporation Ltd. (a state-owned enterprise)[8](index=8&type=chunk) [Basis of Preparation and Changes in Accounting Policies](index=6&type=section&id=編製基準及會計政策變更) Interim financial information is prepared under HKAS 34, read with 2023 annual statements, with new HKFRSs adopted having no material financial impact - The interim condensed consolidated financial information is prepared in accordance with HKAS 34 Interim Financial Reporting and should be read in conjunction with the 2023 annual consolidated financial statements[9](index=9&type=chunk) - The Group has adopted HKFRS 16 (Amendments), HKAS 1 (Amendments) and HKAS 7 and HKFRS 7 (Amendments) for the first time in the current period, which had no impact on the Group’s financial position or performance[10](index=10&type=chunk) [Operating Segment Information](index=8&type=section&id=經營分部資料) The Group operates in property management and value-added services, but no segment information is presented due to integrated resources, with all operations in mainland China - The Group primarily engages in providing property management services, non-owner value-added services, and community value-added services, but no operating segment information is presented due to integrated resources[11](index=11&type=chunk) - The Group's revenue from customers and non-current assets are derived solely from operations in mainland China[11](index=11&type=chunk) [Analysis of Revenue, Other Income and Gains](index=8&type=section&id=收入、其他收入及收益分析) For H1 2024, total revenue was RMB 1,491.4 million, driven by property management growth, while non-owner and community value-added services revenue decreased, and other income declined Revenue Analysis (by Service Category) | Service Category | H1 2024 (RMB thousand) | H1 2023 (RMB thousand) | | :--- | :--- | :--- | | Property management services | 1,008,952 | 749,840 | | Non-owner value-added services | 177,056 | 223,571 | | Community value-added services | 295,113 | 373,642 | | Total Revenue from Contracts with Customers | 1,481,121 | 1,347,053 | | Revenue from other sources (operating leases of investment properties) | 10,250 | 6,289 | | Total Revenue | 1,491,371 | 1,353,342 | Other Income and Gains Analysis | Item | H1 2024 (RMB thousand) | H1 2023 (RMB thousand) | | :--- | :--- | :--- | | Bank interest income | 6,354 | 6,147 | | Fair value gain on investment properties | – | 2,009 | | VAT tax incentives | – | 2,919 | | Government grants | 2,214 | 1,956 | | Others | 313 | 153 | | Total | 8,881 | 13,184 | [Components of Profit Before Tax](index=9&type=section&id=除稅前利潤構成) Profit before tax components show increased service and goods costs, higher depreciation and amortization, a shift to investment property fair value loss, and increased trade receivables impairment Major Deductions/Additions to Profit Before Tax | Item | H1 2024 (RMB thousand) | H1 2023 (RMB thousand) | | :--- | :--- | :--- | | Cost of services provided | 1,091,472 | 893,264 | | Cost of goods sold | 33,452 | 102,723 | | Depreciation of property, plant and equipment | 16,892 | 7,383 | | Depreciation of right-of-use assets | 6,102 | 4,948 | | Amortisation of intangible assets | 7,960 | 6,466 | | Fair value loss/(gain) on investment properties | 9,386 | (2,009) | | Impairment of trade receivables | 18,427 | 9,909 | [Income Tax](index=10&type=section&id=所得稅) Income tax expense increased to RMB 54.1 million for H1 2024 due to higher profit before tax, with a 25% tax rate for mainland China operations and 15% for some western subsidiaries - Income tax expense increased by approximately **10.2%** from approximately **RMB 49.1 million** in H1 2023 to approximately **RMB 54.1 million** in H1 2024[17](index=17&type=chunk)[35](index=35&type=chunk) - Income tax provision for operations in mainland China is calculated at a **25%** tax rate, with one subsidiary in a western city enjoying a **15%** preferential tax rate[16](index=16&type=chunk) [Dividends](index=10&type=section&id=股息) The Board declared an interim dividend of HKD 0.084 per ordinary share for H1 2024, with no dividend declared for the same period last year - The Board declared an interim dividend of **HKD 0.084** per ordinary share, totaling approximately **RMB 69,319,000**[18](index=18&type=chunk) - No interim dividend was declared for the six months ended June 30, 2023[18](index=18&type=chunk) [Earnings Per Share Attributable to Owners of the Parent](index=10&type=section&id=母公司普通權益持有人應佔每股盈利) For H1 2024, basic EPS attributable to owners of the parent was RMB 0.19, up from RMB 0.16, with no potential dilutive ordinary shares EPS Calculation | Metric | H1 2024 | H1 2023 | | :--- | :--- | :--- | | Profit attributable to owners of the parent (RMB thousand) | 173,436 | 145,829 | | Weighted average number of ordinary shares in issue (shares) | 904,189,000 | 904,189,000 | | Basic and diluted EPS (RMB) | 0.19 | 0.16 | - The Group had no potential dilutive ordinary shares outstanding for the six months ended June 30, 2024 and 2023[20](index=20&type=chunk) [Trade Receivables](index=11&type=section&id=貿易應收款項) As of June 30, 2024, net trade receivables increased to RMB 1,246.6 million, mainly from higher third-party receivables due to property management revenue growth, while related party receivables decreased Trade Receivables Composition and Ageing Analysis | Item | June 30, 2024 (RMB thousand) | December 31, 2023 (RMB thousand) | | :--- | :--- | :--- | | Related parties | 299,097 | 361,427 | | Third parties | 993,888 | 566,852 | | Total trade receivables | 1,292,985 | 928,279 | | Less: Impairment allowance | (46,402) | (27,975) | | Net book value | 1,246,583 | 900,304 | | **Ageing analysis (net book value):** | | | | Within 1 year | 1,046,624 | 750,662 | | 1-2 years | 162,318 | 116,503 | | 2-3 years | 31,011 | 28,343 | | Over 3 years | 6,630 | 4,796 | - Third-party trade receivables, primarily related to property management fees, increased from **RMB 566.9 million** to **RMB 993.9 million**, mainly due to increased property management revenue from expanded GFA under management[42](index=42&type=chunk) [Trade Payables](index=12&type=section&id=貿易應付款項) As of June 30, 2024, total trade payables increased to RMB 708.3 million, primarily due to increased procurement of security, cleaning, and facility maintenance services driven by business expansion Trade Payables Composition and Ageing Analysis | Item | June 30, 2024 (RMB thousand) | December 31, 2023 (RMB thousand) | | :--- | :--- | :--- | | Related parties | 8,236 | 5,578 | | Third parties | 700,015 | 597,272 | | Total | 708,251 | 602,850 | | **Ageing analysis (total):** | | | | Within 1 year | 697,788 | 581,682 | | 1-2 years | 8,660 | 17,913 | | 2-3 years | 1,190 | 1,877 | | Over 3 years | 613 | 1,378 | - The increase in trade payables was primarily due to business expansion, reflecting increased procurement of security and cleaning services, as well as facility and equipment maintenance services[44](index=44&type=chunk) [Management Discussion and Analysis](index=13&type=section&id=管理層討論與分析) [Business Overview](index=13&type=section&id=業務概覽) Jinmao Services is a leading high-end property management and urban operation provider in China, managing 582 projects across 70 cities with 98.1 million sq.m. GFA under management as of June 30, 2024 - Jinmao Services is a rapidly growing high-end property management and urban operation service provider in China, ranking **14th** among the top 100 property management companies by China Index Academy[24](index=24&type=chunk) - As of June 30, 2024, total contracted GFA was approximately **117.4 million sq.m.**, and GFA under management was approximately **98.1 million sq.m.**, covering **582** property projects across **70** cities in **24** provinces in China[24](index=24&type=chunk) - Service types include property management for residential, commercial, and public properties; non-owner value-added services like sales assistance, consulting, smart parks, and unit repairs; and community value-added services such as home improvement platforms, community living, community space operations, and real estate brokerage[24](index=24&type=chunk) [Future Outlook](index=14&type=section&id=未來展望) The company plans to prioritize high-quality services, active market expansion, optimized value-added business, refined organization, digital empowerment, and compliance for sustainable growth - Adhere to long-termism, building a sustainable development moat with high-quality services, and accelerating the 'service product standardization' project[25](index=25&type=chunk) - Persist in active external expansion, deeply cultivating high-tier cities, leveraging the synergies of Sinochem and China Jinmao to accelerate IFM business deployment[25](index=25&type=chunk) - Maintain structural optimization, narrowing the scope of value-added businesses, and enhancing product and marketing competitiveness[25](index=25&type=chunk) - Commit to digital intelligence empowerment, steadfastly investing in digitalization, and upgrading systems and platforms for digital operational management and service delivery[25](index=25&type=chunk) - Uphold compliance and safety, leverage ESG management advantages, maintain healthy cash flow, and actively promote energy saving and carbon reduction[25](index=25&type=chunk) [Financial Review](index=15&type=section&id=財務回顧) This section reviews the Group's H1 2024 financial performance, detailing changes in revenue, costs, profit, expenses, and key balance sheet items [Revenue Analysis](index=15&type=section&id=收入分析) Total revenue grew 10.2% to RMB 1,491.4 million, driven by a 34.6% increase in property management services, while non-owner and community value-added services declined Total Revenue by Business Line | Business Line | H1 2024 (RMB thousand) | Proportion (%) | H1 2023 (RMB thousand) | Proportion (%) | Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | Property management services | 1,008,952 | 67.7 | 749,840 | 55.4 | 34.6 | | Non-owner value-added services | 177,056 | 11.9 | 223,571 | 16.5 | -20.8 | | Community value-added services | 305,363 | 20.4 | 379,931 | 28.1 | -19.6 | | Total | 1,491,371 | 100.0 | 1,353,342 | 100.0 | 10.2 | - Property management services revenue increased by **34.6%**, primarily due to the Group's GFA under management increasing from approximately **71.0 million sq.m.** to approximately **98.1 million sq.m.**[26](index=26&type=chunk) - Non-owner value-added services revenue decreased by **20.8%**, mainly due to reduced income from new project services. Community value-added services revenue decreased by **19.6%**, primarily affected by renovation commencement rates, inventory parking space sales cycles, and owner consumption power[27](index=27&type=chunk) [Cost of Sales](index=16&type=section&id=銷售成本) Cost of sales increased 12.9% to RMB 1,124.9 million, consistent with revenue growth, primarily due to more properties under management - Cost of sales increased by approximately **12.9%** from approximately **RMB 996.0 million** to approximately **RMB 1,124.9 million**[28](index=28&type=chunk) - This increase is consistent with the revenue growth trend for the period, mainly due to the increased number of properties under management[28](index=28&type=chunk) [Gross Profit and Gross Profit Margin](index=16&type=section&id=毛利及毛利率) Gross profit increased 2.5% to RMB 366.4 million, but gross profit margin decreased to 24.6% due to reduced revenue from higher-margin non-owner value-added services Gross Profit and Gross Profit Margin by Business Line | Business Line | H1 2024 Gross Profit (RMB thousand) | H1 2024 Gross Profit Margin (%) | H1 2023 Gross Profit (RMB thousand) | H1 2023 Gross Profit Margin (%) | | :--- | :--- | :--- | :--- | :--- | | Property management services | 181,756 | 18.0 | 125,156 | 16.7 | | Non-owner value-added services | 55,457 | 31.3 | 84,957 | 38.0 | | Community value-added services | 129,234 | 42.3 | 147,242 | 38.8 | | Total | 366,447 | 24.6 | 357,355 | 26.4 | - Overall gross profit margin decreased by **1.8 percentage points** to **24.6%**, mainly due to reduced revenue from higher-margin non-owner value-added services[29](index=29&type=chunk) - Property management services gross profit margin increased to **18.0%**, mainly due to improved efficiency from intensive management and synergies from acquiring quality projects. Non-owner value-added services gross profit margin decreased to **31.3%**, primarily due to reduced income from new project services. Community value-added services gross profit margin increased to **42.3%**, mainly due to increased parking space management service revenue[29](index=29&type=chunk)[30](index=30&type=chunk) [Other Income and Gains](index=17&type=section&id=其他收入及收益) Other income and gains decreased 32.6% to RMB 8.9 million, mainly due to reduced VAT tax incentives and a shift from investment property fair value gain to loss - Other income and gains decreased by approximately **RMB 4.3 million** or **32.6%** from approximately **RMB 13.2 million** to approximately **RMB 8.9 million**[31](index=31&type=chunk) - This decrease was mainly due to reduced VAT tax incentives and a fair value change in investment properties resulting in a loss of **RMB 9.4 million** for H1 2024, compared to a gain of **RMB 2.0 million** for H1 2023[31](index=31&type=chunk) [Selling and Distribution Expenses](index=17&type=section&id=銷售及分銷開支) Selling and distribution expenses decreased 22.8% to RMB 18.3 million, attributed to the company's ongoing cost-saving and control measures - Selling and distribution expenses decreased by approximately **22.8%** from approximately **RMB 23.7 million** to approximately **RMB 18.3 million**[32](index=32&type=chunk) - This decrease was mainly due to the company's continuous cost-saving and control measures, leading to reductions in marketing and promotion expenses[32](index=32&type=chunk) [Administrative Expenses](index=17&type=section&id=行政開支) Administrative expenses decreased 37.1% to RMB 85.1 million, primarily due to the company's continuous cost-saving and control measures - Administrative expenses decreased by approximately **37.1%** from approximately **RMB 135.2 million** to approximately **RMB 85.1 million**[33](index=33&type=chunk) - This decrease was mainly due to the company's continuous cost-saving and control measures[33](index=33&type=chunk) [Finance Costs](index=17&type=section&id=融資成本) Finance costs increased 90.5% to RMB 4.0 million, mainly due to higher interest expenses from lease liabilities as leased projects increased - Finance costs increased by approximately **90.5%** from approximately **RMB 2.1 million** to approximately **RMB 4.0 million**[34](index=34&type=chunk) - This increase was due to increased interest expenses from lease liabilities resulting from more leased projects[34](index=34&type=chunk) [Income Tax Expense](index=17&type=section&id=所得稅開支) Income tax expense increased 10.2% to RMB 54.1 million, primarily driven by the increase in profit before tax - Income tax expense increased by approximately **10.2%** from approximately **RMB 49.1 million** to approximately **RMB 54.1 million**[35](index=35&type=chunk) - This increase was mainly due to profit before tax increasing from approximately **RMB 197.6 million** to approximately **RMB 235.1 million**[35](index=35&type=chunk) [Profit for the Period](index=17&type=section&id=期內利潤) Profit for the period increased 21.9% to RMB 181.0 million, with net profit margin rising from 11.0% to 12.1%, indicating improved profitability - Profit for the period increased by approximately **21.9%** from approximately **RMB 148.5 million** to approximately **RMB 181.0 million**[36](index=36&type=chunk) - Net profit margin increased from approximately **11.0%** to approximately **12.1%**[36](index=36&type=chunk) [Property, Plant and Equipment](index=18&type=section&id=物業、廠房及設備) As of June 30, 2024, property, plant and equipment totaled RMB 102.4 million, a slight increase from the end of 2023 - As of June 30, 2024, property, plant and equipment amounted to approximately **RMB 102.4 million**, an increase from approximately **RMB 95.9 million** as of December 31, 2023[37](index=37&type=chunk) [Investment Properties](index=18&type=section&id=投資物業) Investment properties increased to RMB 137.0 million, mainly due to new recognition of Zhonghao Jiayuan residential properties, partially offset by fair value decreases in other investment properties - Investment properties increased from approximately **RMB 128.2 million** to approximately **RMB 137.0 million**[38](index=38&type=chunk) - This increase was mainly due to the new recognition of Zhonghao Jiayuan residential properties under new leases as investment properties during the period, while other investment property projects experienced fair value decreases due to shorter remaining lease terms[38](index=38&type=chunk) [Right-of-use Assets](index=18&type=section&id=使用權資產) Right-of-use assets increased to RMB 38.5 million, primarily due to additional assets from subsidiary acquisitions during the period - Right-of-use assets increased from approximately **RMB 27.8 million** to approximately **RMB 38.5 million**[39](index=39&type=chunk) - This increase was mainly due to additional right-of-use assets from the acquisition of subsidiaries during the period[39](index=39&type=chunk) [Intangible Assets](index=18&type=section&id=無形資產) Intangible assets slightly decreased to RMB 99.0 million, mainly due to amortization during the period - Intangible assets decreased from approximately **RMB 101.7 million** to approximately **RMB 99.0 million**[40](index=40&type=chunk) - This decrease was mainly due to amortization of intangible assets during the period[40](index=40&type=chunk) [Inventories](index=18&type=section&id=存貨) Inventories slightly increased to RMB 4.6 million, primarily comprising consumable materials, spare parts, and general merchandise - Inventories, primarily comprising consumable materials, spare parts, and general merchandise, amounted to approximately **RMB 4.6 million** as of June 30, 2024, a slight increase from approximately **RMB 4.3 million** as of December 31, 2023[41](index=41&type=chunk) [Trade Receivables](index=19&type=section&id=貿易應收款項) Related party trade receivables decreased, while third-party trade receivables significantly increased due to business expansion and higher property management revenue - Trade receivables from related parties decreased from approximately **RMB 361.4 million** to approximately **RMB 299.1 million**[42](index=42&type=chunk) - Trade receivables from third parties increased from approximately **RMB 566.9 million** to approximately **RMB 993.9 million**, mainly due to increased property management revenue from expanded GFA under management[42](index=42&type=chunk) [Prepayments, Other Receivables and Other Assets](index=19&type=section&id=預付款項、其他應收款項及其他資產) Total prepayments, other receivables, and other assets increased to RMB 858.5 million, mainly due to higher third-party prepayments and payments on behalf of residents for remuneration-based projects - Prepayments, other receivables and other assets increased from approximately **RMB 816.8 million** to approximately **RMB 858.5 million**[43](index=43&type=chunk) - This increase was mainly due to increased prepayments to third parties and payments made on behalf of residents and tenants for remuneration-based projects[43](index=43&type=chunk) - Receivables from related parties amounted to approximately **RMB 555.4 million**, primarily including refundable performance deposits for parking space sales paid to related parties of approximately **RMB 500.5 million**[43](index=43&type=chunk) [Trade Payables](index=20&type=section&id=貿易應付款項) Trade payables increased to RMB 708.3 million, primarily due to business expansion leading to increased procurement of security, cleaning, and facility maintenance services - Trade payables increased from approximately **RMB 602.9 million** to approximately **RMB 708.3 million**[44](index=44&type=chunk) - This increase was mainly due to business expansion, reflecting increased procurement of security and cleaning services, as well as facility and equipment maintenance services[44](index=44&type=chunk) [Other Payables and Accrued Expenses](index=20&type=section&id=其他應付款項及應計費用) Other payables and accrued expenses increased to RMB 975.7 million, including amounts due to related parties, funds collected for residents, deposits, and accrued salaries - Other payables and accrued expenses increased from approximately **RMB 756.5 million** to approximately **RMB 975.7 million**[45](index=45&type=chunk) - Mainly includes amounts due to related parties, amounts collected on behalf of residents and tenants, deposits and temporary receipts, and accrued salaries and benefits[45](index=45&type=chunk) [Contingent Liabilities and Pledge of Assets](index=20&type=section&id=或有負債及資產抵押) As of June 30, 2024, the Group had no outstanding guarantees or significant contingent liabilities, and no assets were pledged - As of June 30, 2024, the Group had no outstanding guarantees or other significant contingent liabilities[46](index=46&type=chunk) - As of June 30, 2024, none of the Group's assets were pledged[46](index=46&type=chunk) [Foreign Exchange Risk](index=20&type=section&id=外匯風險) The Group's primary operations in China limit significant foreign exchange risk, except for HKD-denominated proceeds, with ongoing monitoring and no hedging instruments used - The Group's principal operations are conducted in China, and it does not face any significant risks directly related to foreign exchange fluctuations, except for certain net proceeds from the global offering in March 2022 which are denominated in HKD[47](index=47&type=chunk) - The Group will continue to monitor foreign exchange risk and take prudent measures to mitigate it, with no financial instruments used for hedging during the period[47](index=47&type=chunk) [Material Investments and Acquisitions](index=21&type=section&id=重大投資及收購) The Group held no material investments as of June 30, 2024, but acquired Beijing Runwu Jiaye to expand business and strengthen non-cyclical operations, with future investments aligned with global offering proceeds [Material Investments Held](index=21&type=section&id=持有的重大投資) As of June 30, 2024, the Group held no material investments - As of June 30, 2024, the Group held no material investments[48](index=48&type=chunk) [Acquisitions and Disposals of Subsidiaries, Associates and Joint Ventures](index=21&type=section&id=有關附屬公司、聯營公司及合營企業的收購及出售) On January 18, 2024, the company acquired Beijing Runwu Jiaye for RMB 323.8 million to expand high-end property management, achieve economies of scale, and strengthen non-cyclical businesses - On January 18, 2024, Jinmao Property Management, a wholly-owned subsidiary of the Company, acquired the entire equity interest in Runwu Jiaye for a total cash consideration of **RMB 323,800,000**[48](index=48&type=chunk) - The acquisition of Runwu Jiaye aims to align with the Group's strategic positioning in managing high-end projects, facilitate regional intensive management, achieve economies of scale and create synergies, and strengthen non-cyclical businesses[48](index=48&type=chunk) - A portion of the acquisition consideration, **HKD 139.1 million**, was paid in cash using the reallocated net proceeds from the global offering for acquiring property management companies, with the remainder funded by the Group's own resources[48](index=48&type=chunk) [Future Plans for Material Investments or Capital Asset Purchases](index=21&type=section&id=有關重大投資或資本資產購入的未來計劃) The Group will continue to use global offering proceeds as planned, with no other material investment or capital asset purchase plans beyond what is disclosed - The Group will continue to utilize the net proceeds from the global offering according to its planned uses[49](index=49&type=chunk) - As of the date of this announcement, the Company has no other plans for material investments or capital asset purchases[49](index=49&type=chunk) [Capital Structure and Liquidity](index=22&type=section&id=資本結構與流動性) The Group maintains strong liquidity and financial health with no borrowings as of June 30, 2024, increased cash, significant operating cash flow growth, and a 0% debt-to-asset ratio [Capital Commitments and Capital Expenditures](index=22&type=section&id=資本承擔及資本開支) As of June 30, 2024, the Group had no capital commitments, with 2024 capital expenditures expected to be funded by global offering proceeds and operating working capital - As of June 30, 2024, the Group had no capital commitments[50](index=50&type=chunk) - The Group's capital expenditures for the year ending December 31, 2024, are expected to be primarily funded by proceeds from the global offering and working capital from the Group's operating activities[50](index=50&type=chunk) [Liquidity and Capital Resources, Current Assets and Current Ratio](index=22&type=section&id=流動資金及資本資源、流動資產及流動比率) The Group maintains strong liquidity with no borrowings as of June 30, 2024, cash and cash equivalents at RMB 1,285.6 million, operating cash flow at RMB 153.1 million, a 1.35 current ratio, and 0% debt-to-asset ratio - As of June 30, 2024, the Group had no borrowings[51](index=51&type=chunk) - Cash and cash equivalents amounted to approximately **RMB 1,285.6 million**, an increase from approximately **RMB 1,252.0 million** at the end of 2023, mainly due to net cash flow from operating activities[51](index=51&type=chunk) - Net cash flow from operating activities increased from approximately **RMB 86.3 million** to approximately **RMB 153.1 million**. The current ratio was approximately **1.35 times**, and the debt-to-asset ratio was **0%**[51](index=51&type=chunk) [Use of Proceeds from Global Offering](index=22&type=section&id=全球發售所得款項用途) Of the HKD 781.9 million net proceeds from the global offering, 98.3% (HKD 768.9 million) was used as planned by June 30, 2024, primarily for strategic investments and acquisitions - The net proceeds from the global offering amounted to approximately **HKD 781.9 million**[52](index=52&type=chunk) - As of June 30, 2024, approximately **HKD 768.9 million** (**98.3%**) of the net proceeds had been utilized as stated in the prospectus and announcements[55](index=55&type=chunk) - Approximately **HKD 530.1 million** (**67.8%**) was used for identifying strategic investment and acquisition opportunities, including the acquisition of Runwu Jiaye. Approximately **HKD 101.6 million** (**13.0%**) was fully utilized for developing community value-added services. Approximately **HKD 78.2 million** (**10.0%**) was fully utilized for working capital and general corporate purposes[55](index=55&type=chunk)[57](index=57&type=chunk) [Interim Dividend](index=25&type=section&id=中期股息) The Board declared an interim dividend of HKD 0.084 per ordinary share for H1 2024, totaling approximately HKD 75.95 million, payable on September 30, 2024, with share transfer registration suspended from September 10-12 - The Board declared an interim dividend of **HKD 0.084** per ordinary share, totaling approximately **HKD 75.95 million**[58](index=58&type=chunk) - The interim dividend is expected to be paid on **September 30, 2024**, to shareholders whose names appear on the register of members at the close of business on **September 12, 2024**[58](index=58&type=chunk) - Share transfer registration will be suspended from **September 10, 2024**, to **September 12, 2024**[58](index=58&type=chunk) [Employees and Remuneration Policy](index=25&type=section&id=僱員及薪酬政策) As of June 30, 2024, the Group had 2,800 full-time employees with total staff costs of approximately RMB 300 million, and it continuously reviews remuneration and development programs - As of June 30, 2024, the Group had **2,800** full-time employees, an increase from **2,225** as of June 30, 2023[61](index=61&type=chunk) - For the six months ended June 30, 2024, total staff costs amounted to approximately **RMB 300 million**[61](index=61&type=chunk) - The Group regularly reviews its remuneration policies and welfare schemes, exploring the establishment of a compensation and benefits system suitable for corporate executives and high-caliber talent, and providing long-term development programs and promotion channels[62](index=62&type=chunk) [Subsequent Events After Reporting Period](index=26&type=section&id=報告期後重大事項) No other significant events affecting the Group occurred after the reporting period up to the date of this announcement, beyond those already disclosed - Except as disclosed in this announcement, there were no other significant events after June 30, 2024, and up to the date of this announcement that could affect the Group[63](index=63&type=chunk) [Corporate Governance and Other Information](index=25&type=section&id=企業管治及其他信息) [Audit Committee and Review of Interim Results](index=25&type=section&id=審計委員會及中期業績審閱) The Audit Committee reviewed the Group's unaudited H1 2024 interim results and discussed internal control, with Ernst & Young conducting the review per HKSAE 2410 - The Audit Committee has reviewed the Group's unaudited interim results for the six months ended June 30, 2024, and discussed internal control and risk management matters[59](index=59&type=chunk) - The interim results are unaudited but have been reviewed by Ernst & Young in accordance with Hong Kong Standard on Review Engagements 2410[59](index=59&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=25&type=section&id=購買、出售或贖回本公司的上市證券) For H1 2024, neither the company nor its subsidiaries purchased, sold, or redeemed any listed securities, and the company held no treasury shares - Neither the Company nor its subsidiaries purchased, sold, or redeemed any of the Company's listed securities during the six months ended June 30, 2024[60](index=60&type=chunk) - As of June 30, 2024, the Company held no treasury shares[60](index=60&type=chunk) [Corporate Governance Code](index=26&type=section&id=企業管治守則) The company adopted and complied with the Corporate Governance Code in Appendix C1 to the Listing Rules for H1 2024 - The Company has adopted the Corporate Governance Code set out in Appendix C1 to the Listing Rules[64](index=64&type=chunk) - The Board is satisfied that the Company has complied with the code provisions set out in the Corporate Governance Code for the six months ended June 30, 2024[64](index=64&type=chunk) [Standard Code for Securities Transactions by Directors](index=26&type=section&id=董事進行證券交易的標準守則) The company adopted the Model Code for Securities Transactions by Directors in Appendix C3 to the Listing Rules, with all directors confirming compliance for H1 2024 - The Company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers set out in Appendix C3 to the Listing Rules[65](index=65&type=chunk) - All Directors have confirmed their compliance with the Model Code for the six months ended June 30, 2024[65](index=65&type=chunk) [Publication of Interim Results Announcement and Interim Report](index=27&type=section&id=刊發中期業績公告及中期報告) This interim results announcement is published on the HKEX and company websites, with the full interim report to be dispatched to shareholders and available online - This interim results announcement is published on the HKEX website www.hkexnews.hk and the Company's website www.jinmaowy.com[66](index=66&type=chunk) - The Company's interim report for the six months ended June 30, 2024, containing all data required by the Listing Rules, will be dispatched to shareholders and made available on the aforementioned websites in due course[66](index=66&type=chunk)

4月18日下午，金茂服务发布2023年环境、社会及管治报告，这是其发布的第三份《环境、社会及管治报告》。 报告显示，在公司治理方面，2023年累计梳理出廉洁风险点46个，累计签署廉洁承诺书300余份，中国中化《八项禁令》承诺书3,800余份。开展反腐倡廉相关培训76次，董事参与反贪污培训4位，员工参与反贪污培训4,491人次，员工参与反贪污培训总时长47356小时，组织开展针对员工及董事的廉洁提醒谈话8次。 在环境方面，2023年开展节能改造工程213项，节约能耗支出约454.14万元；开展节能知识培训9次，超过720人次参加。 在社会方面，金茂服务注重员工培训赋能。2023年员工受训总人次为12172人次，全年各类培训投入总金额118.34万元，员工培训复盖率100%，员工受训总时长33069小时，平均受训时长14.86小时。 此外，2023年向阳计划青年人才培养项目培训复盖2021-2023届「向阳生」，青年员工年度晋升率达41%。2023年向困难员工发放慰问金15000元。 在社会公益方面，2023年向甘肃省古浪县西靖感恩社区幼儿园和西靖春蕾小学捐赠进行校舍维修及购置教育教学设备配备，共计捐款15万元； ...

Risk Management and Internal Control - The company confirmed the effectiveness and adequacy of its risk management and internal control systems as of December 31, 2023[9]. - The company implemented a comprehensive risk management framework, including 400 policies and procedures, with 105 new or revised systems in 2023[8]. - The company has established a robust internal audit function, conducting two economic responsibility audits and one operational audit in 2023[8]. - The company has a total of 772 records for risk management, with 183 new or revised records in 2023[8]. - The company has set up a comprehensive internal control system, with updates led by various functional departments[8]. - The strategic and ESG committee is responsible for overseeing the company's development strategy and ESG risk management[2]. Financial Performance - Jinmao Property Services reported a revenue of RMB 2,704,412 thousand for 2023, representing an 11.0% increase from RMB 2,436,035 thousand in 2022[82]. - The gross profit for 2023 was RMB 746,542 thousand, showing a slight increase of 1.7% compared to RMB 733,870 thousand in the previous year[82]. - The net profit margin decreased to 12.7% in 2023 from 14.0% in 2022, reflecting a decline of 1.3 percentage points[82]. - The company’s basic and diluted earnings per share for 2023 were RMB 0.37, a decrease of 2.6% from RMB 0.38 in 2022[82]. - Total asset value increased by 20.3% to RMB 3,613.79 million in 2023 from RMB 3,003.53 million in 2022[64]. - Total equity rose by 15.3% to RMB 1,568.02 million in 2023 compared to RMB 1,360.23 million in 2022[64]. - Cash resources grew by 22.9% to RMB 1,254.06 million in 2023 from RMB 1,020.61 million in 2022[64]. Shareholder Engagement and Governance - The company held its annual general meeting on June 7, 2023, where it approved the audited financial statements for the year ended December 31, 2022[11]. - The company actively responded to shareholder feedback and believes its communication policy was effective during the year[12]. - The company has maintained sufficient public float as of December 31, 2023, in compliance with listing rules[29]. - There were no significant violations or non-compliance with applicable laws and regulations that could materially impact the company's business and operations as of December 31, 2023[30]. Strategic Acquisitions and Investments - The acquisition of Runwu Jiaye is valued at RMB 323,800,000, which is subject to adjustment, and will make Runwu Jiaye an indirect wholly-owned subsidiary of the company[24]. - The company has utilized part of the net proceeds from the global offering to finance the acquisition of the property management company, with a cash payment portion of HKD 139.1 million[24]. - The company has no other significant investments or acquisitions planned as of the report date[24]. - The company established a joint venture with Xiong'an Xiongzhou Construction Investment Group to enhance urban services in Xiong'an[59]. - The company successfully acquired a rental project from China National Chemical Corporation, which will provide stable income and profit for five years[80]. Customer and Market Position - The company has a high proportion of service income from property management, which is expected to strengthen its non-cyclical business[24]. - The top five customers accounted for approximately 35.5% of total revenue, with the largest customer representing 31.5% of total revenue for the year ended December 31, 2023[29]. - The company has a robust and growing customer base, including property owners, developers, and other clients utilizing its community value-added services[29]. - Customer satisfaction reached 90% in 2023, maintaining industry leadership according to Saiwei Consulting[147]. Community and Environmental Initiatives - The company has implemented various environmental management practices, including energy-saving and waste management guidelines, to minimize its impact on the environment[30]. - The company actively promotes low-carbon living and conducts various environmental public welfare activities[30]. - The company’s community value-added services address daily life needs, including home decoration platform services and community life services, contributing to overall service quality[94]. Employee and Organizational Development - The total number of full-time employees as of December 31, 2023, was 2,098, down from 2,614 as of December 31, 2022[168]. - Employee costs for the year ended December 31, 2023, totaled approximately RMB 500 million, consistent with the previous year[194]. - The company is committed to enhancing employee training and development to ensure stable service quality output[1]. - The company aims to enhance gender diversity in hiring practices, ensuring fairness and transparency in recruitment processes[168]. Future Outlook and Strategic Plans - Looking ahead to 2024, the company plans to upgrade its strategy with a focus on investment, service, and operations to create sustainable value for customers, shareholders, and society[111]. - The company plans to implement a new "1245" strategy to achieve high-quality development goals over the next five years[2]. - The company aims to enhance its market presence by focusing on high-quality urban services and expanding its management capabilities through strategic acquisitions[1]. - The company is focused on expanding its business scale and consolidating its leading industry position through strategic investments and acquisitions[165].

Financial Performance - For the year ended December 31, 2023, the company's gross profit was RMB 746,542,000, compared to RMB 733,870,000 in 2022, representing an increase of approximately 1.1%[21] - The company's profit before tax for the same period was RMB 446,794,000, up from RMB 446,311,000 in 2022, indicating a slight increase of 0.1%[22] - For the year ended December 31, 2023, the total revenue of Jinmao Property Services was approximately RMB 2,704.4 million, an increase of about RMB 268.4 million or 11.0% compared to approximately RMB 2,436.0 million for the year ended December 31, 2022[32] - The net profit for the year ended December 31, 2023, was approximately RMB 342.9 million, a slight increase of about 0.4% compared to approximately RMB 341.4 million for the year ended December 31, 2022[32] - The basic earnings per share attributable to ordinary equity holders for the year ended December 31, 2023, was RMB 0.37, down from RMB 0.38 for the year ended December 31, 2022[32] - The net profit for the year increased by approximately 0.4% to about RMB 342.9 million in 2023, while the net profit margin decreased from approximately 14.0% in 2022 to about 12.7% in 2023[131] Assets and Liabilities - The company’s non-current assets totaled RMB 615,611,000 as of December 31, 2023, compared to RMB 561,228,000 in 2022, marking an increase of approximately 9.7%[26] - Current assets increased to RMB 2,998,179,000 in 2023 from RMB 2,442,300,000 in 2022, representing a growth of about 22.8%[26] - The total net assets as of December 31, 2023, were approximately RMB 1,568.0 million, an increase from RMB 1,360.2 million as of December 31, 2022[41] - The total non-current liabilities increased to RMB 136,947 thousand in 2023 from RMB 110,710 thousand in 2022, reflecting a growth of 23.7%[66] - The company had no outstanding borrowings as of December 31, 2023, maintaining a strong financial position[142] - The company has no significant liabilities as of December 31, 2023[163] Employee and Operational Metrics - The total number of full-time employees as of December 31, 2023, was 2,098, a decrease from 2,614 employees in 2022, reflecting a reduction of approximately 19.6%[7] - The company reported total employee costs of approximately RMB 500,000,000 for the year, consistent with the previous year's costs[7] - As of December 31, 2023, the total contracted construction area was approximately 106.4 million square meters, and the managed area was approximately 84.2 million square meters, representing increases of about 31.7% and 48.0%, respectively, compared to December 31, 2022[32] Revenue Streams - Property management service revenue increased from approximately RMB 1,206.9 million in 2022 to approximately RMB 1,574.9 million in 2023, representing a growth of about 30.5%[92] - Community value-added service revenue decreased from approximately RMB 644.6 million in 2022 to approximately RMB 624.9 million in 2023, a slight decline of about 3.1%[93] - Non-owner value-added service revenue decreased from approximately RMB 584.6 million in 2022 to approximately RMB 504.6 million in 2023, a decline of about 13.7%[122] Dividends and Shareholder Returns - The company proposed a final dividend of HKD 0.17 per share for the year ended December 31, 2023[32] - The proposed final dividend per share for 2023 is HKD 0.17, consistent with the previous year, amounting to RMB 139,558 thousand[77] - The board proposed a final dividend of HKD 0.17 per share for the year ended December 31, 2023, subject to approval at the annual general meeting[182] Strategic Initiatives - The company aims to enhance its brand and professional capabilities in villa property services through the acquisition of Runwu Jiaye, which aligns with its strategic positioning in high-end projects[8] - The company plans to implement a "1245" strategy for high-quality development, focusing on five core business lines including property management and energy management[86] - The company will strengthen resource collaboration with China Sinochem Holdings and China Jinmao to enhance management capabilities through quality acquisitions[87] - The company plans to utilize proceeds from its global offering for acquisitions and investments to enhance its service capabilities and market position[145] Financial Management - The company has adopted the Corporate Governance Code as per the listing rules and has complied with its provisions throughout the year ended December 31, 2023[11] - The company has not utilized any financial instruments for hedging purposes as of December 31, 2023[162] - The company will continue to monitor foreign exchange risks and take prudent measures to mitigate such risks[162] Other Financial Metrics - Other income and gains totaled RMB 30.0 million for the year ended December 31, 2023, down from RMB 46.1 million for the year ended December 31, 2022[52] - Financing costs increased to RMB 4.5 million for the year ended December 31, 2023, compared to RMB 1.6 million for the year ended December 31, 2022[53] - Selling and distribution expenses increased from approximately RMB 54.0 million in 2022 to approximately RMB 56.1 million in 2023, an increase of about 3.9%[99] - Administrative expenses rose from approximately RMB 239.5 million in 2022 to approximately RMB 253.4 million in 2023, an increase of about 5.8%[100] - Trade receivables impairment provision increased to RMB 27,975 thousand in 2023 from RMB 16,188 thousand in 2022, indicating a rise of 72.0%[59]