智通财经APP获悉，2024年3月28日，世茂服务(00873)发布2023年业绩报告。过去一年，世茂服务收入结构持续优 化，盈利质量不断提升。期内，公司实现营业收入82.03亿元，合约面积3.32亿平方米，归母净利润2.73亿元，经营活 动所得现金净额大幅提升至10.30亿元，核心净现比大幅提升至1.45，创历史新高。 【世茂服务2023年全年业绩发布会】 世茂服务管理层表示，2023年是世茂服务高质量发展的第二年，围绕结构调优、合理增速、业务精进、队伍建设四个 关键点，世茂服务在历经行业承压下行回调后积极应对调整，交出了一份成色十足的高质量发展答卷。 核心业务持续增长 经营底盘稳固健康 四大业务板块收入结构持续优化 截至12月31日，世茂服务物业管理服务收入52.92亿元，收入占比提升至64.5%，近5年复合年增长率高达44.9%，为其 他业务发展创造了空间；社区增值服务业务收入13.63亿元，社区增值业务全面渗透住宅场景，单方收入产值显著提 升；非业主增值服务收入2.13亿元，占比2.6%，房地产相关业务收入额及占比持续逐年下降，独立性进一步增强；城 市服务业务收入13.35亿元，毛利率稳步提升至14. ...

Core Insights - Shimao Services (00873) reported a revenue of RMB 8.203 billion for 2023, with a gross profit of RMB 1.646 billion, and a significant turnaround in profit, achieving a net profit attributable to equity holders of RMB 273 million, compared to a loss in the previous year [1] - The core net profit attributable to equity holders increased by 29.6% year-on-year to RMB 648 million, driven by cost optimization and improved operational efficiency [1] Financial Performance - The company achieved an operating profit of approximately RMB 344 million, with basic earnings per share of RMB 0.11 [1] - Cash and cash equivalents, including time deposits with maturities over three months, rose by 2.6% to RMB 4.788 billion as of December 31, 2023, primarily due to a net cash inflow from operating activities of RMB 1.03 billion, significantly exceeding net profit [1] Business Segments - Property management services remain the cornerstone of Shimao Services, with a compound annual growth rate (CAGR) of 44.9% over the past five years [1] - In 2023, property management service revenue reached a record high of RMB 5.292 billion, reflecting a 5.0% year-on-year increase, attributed to an increase in managed building area from Shimao Group and expansion in third-party market areas [1] - As of December 31, 2023, the company managed 1,448 projects across various sectors, including residential, educational, public buildings, industrial parks, and hospitals, with a total managed area of approximately 251 million square meters [1]

Financial Performance - Total revenue for the year 2023 was RMB 8,202.7 million, a decrease of 5.0% compared to RMB 8,636.8 million in the same period of 2022[2]. - The annual profit was RMB 316.7 million, a significant improvement from a loss of RMB 876.7 million in 2022[3]. - Core net profit attributable to equity holders was RMB 647.7 million, up 29.6% from RMB 499.6 million in the same period of 2022[3]. - The company achieved a gross profit of RMB 1,646.4 million, down 15.3% from RMB 1,943.0 million in 2022[2]. - The gross profit margin was 20.1%, while the core net profit margin was 7.9%, maintaining a relatively high level in the industry[8]. - The group's revenue for the year was RMB 8,202.7 million, a decrease of 5.0% compared to RMB 8,636.8 million in the same period of 2022[41]. - The group's gross profit was RMB 1,646.4 million, down 15.3% from RMB 1,943.0 million in 2022, with a gross margin of 20.1%, a decrease of 2.4 percentage points[43]. - The group's annual profit for 2023 reached RMB 316.7 million, a significant improvement compared to a loss of RMB 876.7 million in 2022[53]. - The profit attributable to equity holders was RMB 273.2 million, up from a loss of RMB 927.1 million in the same period of 2022[53]. - The overall comprehensive income for the year was RMB 321.0 million, compared to a loss of RMB 939.7 million in 2022[74]. Revenue Sources - Property management service revenue reached RMB 5,291.9 million, accounting for 64.5% of total revenue, with a year-on-year increase of 5.0%[2]. - Property management services accounted for 64.5% of total revenue, generating RMB 5,291.9 million, a 5.0% increase from RMB 5,042.0 million in 2022[23]. - Community value-added service revenue was RMB 1,362.9 million in 2023, a decrease of 19.3% from RMB 1,688.3 million in 2022[33]. - The total revenue from community value-added services was RMB 442,999 thousand in 2023, up from RMB 414,747 thousand in 2022, marking an increase of about 7%[88]. - The company's urban services revenue was RMB 1,334,775 thousand in 2023, a slight decrease from RMB 1,381,440 thousand in 2022, reflecting a decline of approximately 3%[88]. Operational Efficiency - The net cash generated from operating activities was RMB 1,030.4 million, significantly exceeding net profit, indicating high-quality development[22]. - The company actively terminated projects with lower profit margins and higher management costs, improving the quality and structure of its managed projects[29]. - The company is focusing on enhancing service quality and expanding third-party project development to increase market share[5]. - The company aims to enhance collaboration between internal and external market channels, focusing on environmental integration and solid waste management[19]. - The company is committed to sustainable development and has integrated environmental protection into its business operations, responding actively to national carbon reduction strategies[20]. Strategic Focus - The company established a strategy of "deep cultivation in cities," focusing on 19 key cities, with over 50% of new annual revenue coming from Shandong, Jiangsu, Zhejiang, and Fujian provinces[15]. - Future strategies include expanding residential and non-residential property management services, emphasizing quality and scale[18]. - The company aims to become a leading urban full-scenario lifestyle service provider in China, focusing on comprehensive property management and community living services[17]. - The company plans to explore new property management cooperation models with small and medium-sized real estate enterprises to rapidly increase business scale[19]. - The company has shifted its strategic focus from acquisitions to expanding its market presence through branding, project bidding, and marketing team development due to the overall downturn in the real estate industry[64]. Cost Management - Selling and marketing expenses were RMB 136.6 million, a significant decrease of 41.5% from RMB 233.5 million in 2022, accounting for 1.7% of total revenue[45]. - Administrative expenses decreased by 27.1% to RMB 989.5 million, representing 12.1% of total revenue, down 3.6 percentage points from 2022[46]. - Total employee costs decreased by 6.8% to RMB 3,914.4 million from RMB 4,199.5 million in 2022, attributed to efficiency improvements[70]. - The company aims to enhance operational efficiency and cost control in response to the ongoing downturn in the real estate sector[68]. Asset Management - Cash and cash equivalents amounted to RMB 4,788.3 million, an increase of 2.6% from RMB 4,667.3 million at the end of 2022[3]. - The company's net asset value increased to RMB 8,646,153 thousand, up 3.3% from RMB 8,367,227 thousand in 2022[76]. - The group maintained a current ratio of 1.75, indicating a stable financial position[58]. - The company has a share incentive plan that allows for the granting of up to 3% of the total issued shares as rewards, with 7,542,551 shares granted by December 31, 2023[58]. - The company is currently evaluating the potential impact of adopting the new amendments to the Hong Kong Financial Reporting Standards, with preliminary conclusions suggesting minimal significant impact on the consolidated financial statements[81]. Market Position - The company received multiple accolades, including "Top 1 in China's Property Service Satisfaction" and "Outstanding Supplier of China Mobile," reflecting improved service quality and customer satisfaction[11]. - The company has a diverse customer base, including residential, educational, public construction, industrial parks, and hospitals, providing a wide range of services across 1,448 projects[22]. - The company is focused on expanding its property management services and enhancing community value-added services in China[78]. Challenges and Risks - The company is closely monitoring foreign exchange and interest rate risks, with plans to implement hedging strategies as necessary[69]. - The company is actively seeking suitable acquisition targets and investment opportunities while ensuring prudent use of raised funds to promote sustainable business development and long-term shareholder value[60].

2024年2月23日 公司研究 独立发展能力提升，业务结构持续优化 ——世茂服务（0873.HK）跟踪报告 （要 点 增持（维持） 当 前价：1.10港元 事件：世茂服务发布第三方市场拓展2023年度盘点。 世茂服务官方公众号发布第三方市场拓展 2023 年度盘点，2023 年公司拓展了 多个高质量项目，完成住宅、学校、产业园、政府后勤等全业态板块覆盖，不断 作者 提升深耕城市的项目密度与服务浓度。 分析师：何缅南 执业证书编号：S0930518060006 点评：业务结构持续优化，独立发展能力不断提升，关注盈利能力和现金流管理。 021-52523801 1) 第三方拓展持续领先行业，项目质量不断提升。截至2023年6月30日，公 hemiannan@ebscn.com 司在管面积2.61亿平（第三方面积占比77.1%；住宅面积占比53.2%）；合约 联系人：韦勇强 面积3.46亿平（第三方面积占比77.6%；住宅面积占比55.9%）。2023H1公 021-52523810 司新增加第三方外拓合约面积2640万平，外拓表现持续领先行业；新增项目质 weiyongqiang@ebscn.com 量提升明显， ...

Financial Performance - For the first half of 2023, Shimao Services achieved revenue of RMB 4,098.1 million, with a gross profit of RMB 862.7 million and a core net profit attributable to equity holders of RMB 316.5 million, resulting in a gross margin of 21.1% and a core net profit margin of 7.7%[13]. - The group actively terminated low-margin and high-cost management projects to enhance the quality of its managed projects, supporting long-term management and steady growth[35]. - The company reported a profit of RMB 154,780 thousand for the period, down from RMB 203,946 thousand, indicating a decline of approximately 24%[113]. - The period profit reached RMB 203.9 million, an increase of 9.7% compared to RMB 185.8 million in the same period of 2022[59]. - The profit attributable to equity holders was RMB 154.8 million, up 10.9% from RMB 139.6 million in the same period of 2022[59]. - The company reported a net profit before tax of RMB 284,649 thousand, an increase from RMB 222,071 thousand in the same period last year, representing a growth of approximately 28.2%[109]. - The company’s total comprehensive income for the period was RMB 159,062 thousand, compared to RMB 203,946 thousand in the previous period, indicating a decrease of about 22%[113]. Revenue Breakdown - Property management services accounted for 63.7% of total revenue, generating RMB 2,612.6 million, an 11.5% increase from RMB 2,342.2 million in the same period of 2022[33]. - Community value-added services accounted for 17.3% of total revenue, generating RMB 709.3 million, down 23.8% from RMB 931.0 million in the same period of 2022[42]. - The revenue from community asset management services increased by 22.0% to RMB 142.4 million, compared to RMB 116.7 million in the same period of 2022[43]. - The revenue from smart scene solutions plummeted by 90.7% to RMB 25.7 million, down from RMB 276.8 million in the same period of 2022[45]. - Parking asset operation services saw a revenue increase of 15.5% to RMB 189.0 million, compared to RMB 163.7 million in the same period of 2022[45]. - Elderly care services revenue surged by 45.3% to RMB 71.9 million, up from RMB 49.5 million in the same period of 2022[46]. Cost and Efficiency - The gross profit for property management services was RMB 541.8 million, down 12.1% from RMB 616.3 million in 2022, with a gross margin of 20.7%, a decrease of 5.6 percentage points from 26.3%[34]. - Administrative expense ratio decreased from 15.7% at the end of 2022 to 10.9% in the first half of 2023, and sales and marketing expense ratio fell from 2.7% to 1.5% during the same period, reflecting significant efficiency improvements[23]. - The company added RMB 727.0 million in annual saturated revenue in the first half of 2023, with 55% coming from deepened cities, while marketing expenses as a percentage of annual saturated revenue decreased from an average of 2.0% in 2022 to 1.4% in 2023[21]. Market Expansion and Strategy - The total managed building area reached 260.7 million square meters, while the contracted building area amounted to 346.2 million square meters[13]. - As of June 30, 2023, the contracted building area from third-party market expansion accounted for 39.5% of the total contracted area, reflecting significant growth since 2019[16]. - The company aims to focus on residential property management while enhancing operational capabilities in non-residential and public construction sectors, with plans to supplement quality projects as needed[28]. - The company has shifted its strategic focus from mergers and acquisitions to third-party market expansion due to the overall downturn in the real estate industry, which has slowed growth significantly[69]. Cash Flow and Financial Position - In the first half of 2023, the company achieved a net cash inflow from operating activities of RMB 350.6 million, a significant increase of RMB 2,754.9 million compared to RMB 2,404.3 million in the same period of 2022, resulting in a new high net cash ratio of 1.7[19]. - The company maintained a strong financial position with a current ratio of 1.75 as of June 30, 2023, compared to RMB 3,733.2 million in net current assets as of December 31, 2022[63]. - Cash and cash equivalents rose significantly to RMB 4,075,899 thousand from RMB 2,307,301 thousand, representing an increase of approximately 76.5%[111]. - The company reported a cash inflow from investing activities of RMB 1,592,073 thousand, a recovery from a cash outflow of RMB 416,373 thousand in the previous year[117]. Governance and Management - The company has a strong governance structure with independent non-executive directors providing oversight and strategic guidance[79]. - The management team is composed of experienced professionals with backgrounds in finance, property management, and corporate governance[80]. - The company is committed to maintaining high standards of business ethics and corporate governance to enhance shareholder value and transparency[96]. - The Audit Committee consists of three independent non-executive directors and reviews the company's financial reporting procedures and internal controls[98]. Share Incentive Plan - The company adopted a share incentive plan on June 28, 2021, allowing for a maximum of 3% of the total issued shares (70,919,190 shares) to be granted as rewards[83]. - A total of 3,525,446 shares were granted to selected employees during the six months ended June 30, 2023, with 458,564 shares becoming invalid[83]. - The company’s share incentive plan allows for 60% of the granted shares to vest after 6 months and 40% after 18 months from the grant date[85]. - The company recognized share-based payment expenses of approximately RMB 7,136,000 for the six months ended June 30, 2023, compared to RMB 19,192,000 for the same period in 2022, indicating a decrease of about 62.8%[199].

Financial Performance - Revenue for the first half of 2023 was RMB 4,098.1 million, a decrease of 3.9% compared to RMB 4,265.7 million in the same period of 2022[2]. - Gross profit was RMB 862.7 million, down 22.5% from RMB 1,113.6 million in the same period of 2022[3]. - Operating profit decreased to RMB 268.7 million, a decline of 15.6% compared to RMB 318.4 million in the same period of 2022[3]. - Net profit attributable to equity holders was RMB 154.8 million, an increase of 10.9% from RMB 139.6 million in the same period of 2022[3]. - The company reported a basic earnings per share of RMB 6.36, up 12.4% from RMB 5.66 in the same period of 2022[3]. - The group's revenue reached RMB 4,098.1 million for the six months ended June 30, 2023, a decrease of 3.9% year-on-year[28]. - The net profit attributable to equity holders was RMB 316.5 million, with a core net profit margin of 7.7%[28]. - The company's total employee cost was RMB 1,950.5 million, a reduction of 5.6% from RMB 2,065.3 million in the same period last year[75]. - The company reported a significant increase in trade receivables, which rose to RMB 3,451,587,000 as of June 30, 2023, from RMB 3,218,266,000 at the end of 2022, an increase of 7.2%[82]. Revenue Breakdown - Property management service revenue reached RMB 2,612.6 million, accounting for approximately 63.7% of total revenue, with a year-on-year growth of 11.5%[2]. - Community value-added services accounted for 17.3% of total revenue, generating RMB 709.3 million, a decrease of 23.8% compared to RMB 931.0 million in the same period of 2022[40]. - Revenue from community asset management services increased by 22.0% to RMB 142.4 million, compared to RMB 116.7 million in the previous year[43]. - Revenue from smart scene solutions plummeted by 90.7% to RMB 25.7 million, down from RMB 276.8 million in H1 2022[43]. - Revenue from parking asset operation services rose by 15.5% to RMB 189.0 million, compared to RMB 163.7 million in the same period last year[44]. - The average property fee for third-party competitive bidding projects increased by 15.0% to RMB 2.3 per square meter per month in the first half of 2023, compared to RMB 2.0 per square meter per month in the same period last year[37]. Cost and Expenses - Sales and service costs increased by 2.6% to RMB 3,235.5 million, compared to RMB 3,152.1 million in the same period last year[51]. - Administrative expenses were RMB 448.7 million, a decrease of 4.6% from RMB 470.2 million in 2022, maintaining a ratio of 10.9% of revenue[55]. - Sales and marketing expenses were RMB 63.3 million, down 41.0% from RMB 107.2 million in 2022, representing 1.5% of revenue, a decrease of 1.0 percentage point from 2.5% in 2022[54]. - The gross margin for property management services was 20.7%, down 5.6 percentage points from 26.3% in 2022, primarily due to a higher proportion of lower-margin third-party projects[52]. Operational Efficiency - The company emphasized a focus on enhancing operational capabilities and improving profit quality amidst industry challenges[5]. - The marketing expense ratio decreased from an average of 2.0% in 2022 to 1.4% in the first half of 2023, reflecting effective market development strategies[17]. - The administrative expense ratio dropped from 15.7% at the end of 2022 to 10.9% in the first half of 2023, showcasing enhanced management efficiency[19]. - The number of employees per 10,000 square meters decreased from 1.81 in 2022 to 1.77 in mid-2023, indicating improved efficiency[22]. Market Expansion and Strategy - The company has shifted its strategic focus from acquisitions to expanding its third-party market capabilities, including brand advertising and project bidding[71]. - The company aims to enhance its operational capabilities in non-residential and public building sectors while focusing on quality project supplementation[24]. - The company plans to develop smart city services centered on standardized products and light asset services, with a focus on product innovation[24]. - The company is focused on expanding its property management services and enhancing community value-added services in China, aiming for further market penetration[84]. Financial Position - As of June 30, 2023, cash and cash equivalents amounted to RMB 4,775.9 million, a 2.3% increase from RMB 4,667.3 million at the end of 2022[3]. - The net current asset value as of June 30, 2023, was RMB 4,155.3 million, with a current ratio of 1.75, indicating a very healthy financial position compared to RMB 3,733.2 million as of December 31, 2022[65]. - The company's net asset value increased to RMB 8,459,580,000 as of June 30, 2023, compared to RMB 8,367,227,000 at the end of 2022, reflecting a growth of 1.1%[83]. - The total equity as of June 30, 2023, was RMB 21,357,812,000, down from RMB 21,444,970,000 as of January 1, 2022[122]. Taxation and Incentives - The effective income tax expense for the six months ended June 30, 2023, was RMB 80,703 thousand, compared to RMB 36,253 thousand in 2022, indicating an increase in tax burden[100]. - The statutory tax rate for the six months ended June 30, 2023, is 25%[104]. - Tibet Shimao Tiancheng Property Management Co., Ltd. benefits from a preferential tax rate of 15% until December 31, 2030[104]. Shareholder and Corporate Governance - The company granted a total of 3,525,446 reward shares under the share incentive plan to certain directors and eligible employees to recognize their contributions[66]. - The group did not declare an interim dividend for the six months ended June 30, 2023, consistent with the previous year[127]. - The company adhered to all corporate governance codes as per the Hong Kong Stock Exchange, with one exception regarding the chairman's absence at the annual general meeting[127].

Financial Performance - Total revenue for 2022 reached RMB 8,636.81 million, an increase of 3.5% from RMB 8,343.43 million in 2021[12] - Gross profit for 2022 was RMB 1,942.96 million, a decrease of 18.7% compared to RMB 2,390.09 million in 2021[12] - The net profit attributable to shareholders for 2022 was RMB (927.12) million, compared to RMB 1,110.45 million in 2021, indicating a significant decline[12] - The operating profit for 2022 was RMB (809.79) million, a decrease from RMB 1,505.29 million in 2021[12] - The total liabilities decreased to RMB 6,232.34 million in 2022 from RMB 8,933.33 million in 2021, indicating improved financial management[12] - The annual loss for the company was RMB 876.7 million, compared to a profit of RMB 1,216.8 million in 2021, with a core net profit of RMB 499.6 million for 2022, down 61.2% from RMB 1,288.2 million in 2021[68] Market and Industry Challenges - The company faced challenges in the property service industry due to economic pressures and fluctuating market conditions, impacting growth rates[14] - The property service sector is expected to benefit from supportive government policies aimed at enhancing community services and consumer demand[15] - The company plans to focus on upgrading its service offerings and expanding its market presence in response to industry challenges[15] Business Strategy and Development - The company aims to leverage its established business framework to explore diversified value-added services in the property management sector[15] - The company plans to focus on cash flow management, profitability enhancement, market development, operational system upgrades, and digital capability breakthroughs in 2023[24] - The company aims to achieve high-quality development through comprehensive coverage of business, post-acquisition integration, and lifecycle management[24] - The company aims to become a leading urban all-scenario life service provider in China, focusing on comprehensive property management and community life services[23] Revenue Sources and Growth - The property management services accounted for 58.4% of total revenue, generating RMB 5,042.0 million, up 20.9% from RMB 4,169.6 million in 2021[32] - Urban services revenue reached 16.0% of total revenue, becoming the company's third-largest income source[18] - Community value-added services generated revenue of RMB 1,688.3 million in 2022, a decline of 31.0% compared to RMB 2,448.2 million in 2021, primarily due to the impact of COVID-19 and the downturn in the real estate sector[39] - The revenue from community asset management services was RMB 235.8 million in 2022, down 21.1% from RMB 299.0 million in 2021[41] Operational Performance - The managed construction area reached 261.6 million square meters, up 8.8% year-on-year, while the contracted construction area increased by 10.8% to 341.3 million square meters[16] - The company has integrated over 20 acquired companies into its management system, enhancing operational synergy and professional capabilities[22] - The company secured new market bidding contracts with a total building area of 40.1 million square meters in 2022, a decrease from 61.6 million square meters in 2021, but still maintaining a leading position in the industry[36] Cost and Expenses - The cost of sales and services increased to RMB 6,693.9 million, a 12.4% rise from RMB 5,953.3 million in 2021, primarily due to increased operational costs from COVID-19[53] - Administrative expenses surged to RMB 1,356.5 million, a 96.9% increase from RMB 689.0 million in 2021, representing 15.7% of revenue, up 7.4 percentage points[58] Corporate Governance and Compliance - The company adheres to the corporate governance code as per the Hong Kong Stock Exchange's listing rules, ensuring high standards of business ethics and governance[158] - The board of directors consists of eight members, including four executive directors, one non-executive director, and three independent non-executive directors, ensuring a balanced composition[160] - The company has established a comprehensive risk management system to ensure that decision-making does not significantly harm economic, environmental, and social values[186] Shareholder and Capital Management - The company has granted 4,017,105 shares under its share incentive plan during the twelve months ending December 31, 2022[76] - The company received a net amount of approximately HKD 1,735 million from its capital raising activities, intended for potential acquisitions, business expansion, and general working capital[79] - The total amount raised from the convertible bond issuance is HKD 3,110 million, with a net amount of approximately HKD 3,085 million after deducting related expenses[81] Sustainability and Social Responsibility - The company emphasizes sustainable development and corporate social responsibility, engaging in community initiatives and environmental management[25] - The group reported charitable donations of RMB 469,803 for the year, an increase from RMB 416,948 in 2021[106] Future Outlook - The company plans to utilize 65% of the net proceeds from its listing, amounting to RMB 3,332 million, to continue expanding its business scale[77] - The company aims to enhance its business capabilities in 2023 by focusing on market expansion and acquiring more third-party projects[37]

Financial Performance - Total revenue for the year ended December 31, 2022, was RMB 8,636.8 million, an increase of 3.5% compared to RMB 8,343.4 million in the same period of 2021[2]. - Gross profit was RMB 1,943.0 million, a decrease of 18.7% from RMB 2,390.1 million in the same period of 2021[3]. - Operating loss was RMB 809.8 million, compared to an operating profit of RMB 1,505.3 million in the same period of 2021[3]. - Annual loss amounted to RMB 876.7 million, while the profit for the same period in 2021 was RMB 1,216.8 million[3]. - The company reported a net loss of RMB 876.7 million for the same period[24]. - The group's revenue for the year was RMB 8,636.8 million, a 3.5% increase compared to RMB 8,343.4 million in the same period of 2021[45]. - The company reported a net loss per share of RMB 0.38 for the year ended December 31, 2022, compared to earnings per share of RMB 0.46 in 2021[104]. Revenue Breakdown - Property management services revenue was approximately RMB 5,042.0 million, accounting for about 58.4% of total revenue, representing a year-on-year increase of 20.9%[2]. - Community value-added services revenue reached RMB 1,688.3 million, accounting for 19.5% of total revenue, a decrease of 31.0% compared to RMB 2,448.2 million in the previous year[2]. - As of December 31, 2022, city service revenue accounted for 16.0% of total revenue, becoming the company's third-largest income source, with 38 new projects and a contract amount nearing RMB 1,000 million[12]. - The revenue from urban services for the year 2022 was RMB 1,381,440 thousand, compared to RMB 855,054 thousand in 2021, representing an increase of approximately 61.5%[99]. - Community value-added services accounted for 19.5% of total revenue and 27.0% of total gross profit[33]. - The revenue from community value-added services decreased to RMB 414,747 thousand in 2022 from RMB 474,303 thousand in 2021, reflecting a decline of approximately 12.6%[99]. Cost and Expenses - The group's sales and service costs increased by 12.4% to RMB 6,693.9 million, primarily due to rising operational and management costs amid the pandemic[46]. - Administrative expenses surged by 96.9% to RMB 1,356.5 million, accounting for 15.7% of total revenue, largely due to increased management costs from acquisitions[49]. - Net finance costs increased by 603.0% to RMB 161.7 million from RMB 23.0 million in 2021, primarily due to interest accrued on convertible bonds[52]. - The financing costs for the year ended December 31, 2022, were RMB (216,298) thousand, compared to RMB (53,761) thousand in the previous year, showing a substantial rise in financing expenses[96]. Assets and Liabilities - As of December 31, 2022, cash and cash equivalents were RMB 2,307.3 million, a decrease of 76.6% from RMB 9,842.1 million as of December 31, 2021[3]. - The total assets decreased to RMB 9,046,785 thousand from RMB 10,329,274 thousand in the previous year, a decline of approximately 12.4%[82]. - The total liabilities decreased to RMB 5,552,777 thousand from RMB 7,831,183 thousand, a reduction of approximately 29.1%[82]. - Trade receivables increased by 2.0% to RMB 3,218.3 million as of December 31, 2022, compared to RMB 3,154.9 million in 2021, due to business expansion[57]. Strategic Initiatives - Shimao Services aims to focus on cash flow management and profitability enhancement through eight key strategic initiatives in 2023[20]. - The company plans to enhance its business capabilities in 2023 by focusing on market expansion and acquiring more third-party projects[32]. - The company is committed to reducing reliance on related party resources and enhancing independent business development capabilities[20]. - The company aims to adjust its business structure to expand into non-real estate diversified sectors for sustainable development[37]. Market and Industry Impact - The overall economic downturn and real estate industry decline have significantly impacted the company's revenue and profit recognition[36]. - The company has focused on high-value projects, with residential and university properties accounting for 66% of total contract construction area, leading to higher unit area revenue[17]. - The company is actively addressing climate change and engaging in social responsibility initiatives, including community support programs[21]. Shareholder and Capital Management - The company aims to enhance its financial position and provide operational funding through the capital raising activities[63][65]. - The company redeemed HKD 1,399,500,000 of convertible bonds, representing 45% of the total principal amount, on August 18, 2022[67]. - The company will continue to seek suitable acquisition and investment targets or collaborations, adopting a prudent and flexible approach[69]. Employee and Community Engagement - Customer satisfaction has been continuously improved, with the company being recognized as the top property service company in China for two consecutive years[13]. - The elderly care service platform has expanded to cover 23 cities and operates 10 elderly care centers, serving over 300,000 individuals[42]. - The company received government grants totaling RMB 73,227 thousand in 2022, compared to RMB 43,728 thousand in 2021, indicating an increase of approximately 67%[102].

Financial Performance - For the first half of 2022, Shimao Services achieved revenue of RMB 4,265.7 million, representing a year-on-year increase of 12.9%[14]. - Gross profit amounted to RMB 1,113.6 million, with a gross margin of 26.1%, maintaining a leading position in the industry[14]. - Property management services revenue reached RMB 2,342.2 million, a year-on-year increase of 16.3%, accounting for 54.9% of total revenue[15]. - Urban services revenue surged to RMB 671.0 million, a remarkable year-on-year growth of 400.0%, contributing 15.8% to total revenue[15]. - The overall gross profit decreased by approximately RMB 141.7 million to about RMB 1,113.6 million, with a gross margin of 26.1%, down from 33.2% in the previous year[49]. - The company reported a significant increase in contract assets to RMB 183,870 thousand from RMB 173,926 thousand, reflecting a growth of 5.5%[111]. - The company reported a comprehensive income of RMB 139,613 thousand for the six months ended June 30, 2022[114]. - The company’s total liabilities increased to RMB 8,161,645 thousand from RMB 7,831,183 thousand, indicating a rise of 4.2%[111]. - The company reported a net profit attributable to equity holders of the company of RMB 139,613 thousand, a sharp drop from RMB 578,156 thousand in the previous year, representing a decrease of 75.8%[110]. Operational Highlights - The managed building area reached 255.9 million square meters, up 46.2% year-on-year, while the contracted building area increased by 39.3% to 333.1 million square meters[14]. - The company successfully acquired 5 companies in the first half of 2022, enhancing its business scale and project density in key regions such as the Yangtze River Delta and the Greater Bay Area[36]. - The company has established a comprehensive third-party expansion system, enhancing its market development capabilities through strategic partnerships and digital empowerment[36]. - The company aims to enhance operational capabilities and achieve "quality high growth" despite challenges in the real estate sector and ongoing pandemic impacts[21]. - The company is focusing on horizontal and vertical integration in acquisitions, emphasizing the need for target companies to be regional leaders and compatible with its existing operations[74]. Market Outlook - The outlook for the property services industry remains positive, with long-term growth trends unchanged despite current challenges[13]. - The company plans to leverage opportunities in the second-hand housing market as residents increasingly recognize the value of property services[12]. - The company is committed to refining its operational capabilities and transitioning from a growth-focused model to a more standardized and efficient management approach[12]. Community and Social Responsibility - The company is committed to social responsibility, implementing energy-saving measures that resulted in a 50% reduction in elevator air conditioning energy consumption in one project[25]. - Community value-added services will be enhanced by optimizing community resources and increasing non-cyclical business offerings[23]. - The company is actively sharing operational results with property owners to encourage participation in community management and oversight[40]. Financial Management and Governance - The company is committed to maintaining high standards in financial management and internal auditing[83]. - The company has implemented a share incentive plan effective for ten years, allowing for the grant of up to 3% of the total issued shares as rewards[77]. - The company is closely monitoring its liquidity position to manage cash flow risks effectively[78]. - The company is committed to maintaining high standards of corporate governance to protect shareholder interests and enhance corporate value[99]. Employee and Leadership - As of June 30, 2022, the company had 46,550 employees, a 62.8% increase from 28,597 employees a year earlier, with total employee costs rising to RMB 2,065.3 million, up 66.1% year-on-year[76]. - The company has a strong leadership team with extensive experience in various sectors, including finance, property management, and engineering[83]. - The leadership team has a diverse educational background, including degrees in real estate, business administration, and international finance[80][82]. Acquisitions and Investments - The company plans to continue seeking suitable acquisition and investment targets, as previous potential targets were not successfully acquired[70]. - The company successfully acquired 100% of Zhejiang Xindadi Property Management Co., Ltd. for approximately RMB 61.1 million and 51% of Quanzhou Youda Property Management Co., Ltd. for RMB 4.0 million in January 2022, expanding its footprint in the residential property sector[72]. - The company acquired subsidiaries resulting in goodwill of approximately RMB 315,898,000, which was allocated to cash-generating units for impairment testing[166]. Cash Flow and Liquidity - Cash and cash equivalents decreased to RMB 7,047,187 thousand from RMB 9,842,099 thousand, a decline of 28.4%[111]. - Operating cash flow for the six months ended June 30, 2022, was RMB (2,416,884) thousand, compared to RMB 346,352 thousand for the same period in 2021, indicating a significant decline[118]. - The company received RMB 12,000 thousand from new borrowings during the period, indicating a strategy to enhance liquidity[118]. Segment Performance - The group has two operating segments: property management and related services, and urban services, which include sanitation, cleaning, and wastewater treatment[132]. - Revenue from property management services for the six months ended June 30, 2022, was RMB 2,342,195, up from RMB 2,014,176 in 2021, marking an increase of approximately 16.2%[141]. - The company’s revenue from urban services was RMB 670,960, with a cost of sales of RMB 565,274, resulting in a gross margin of approximately 15.7% for the six months ended June 30, 2022[141].

Financial Performance - Total revenue for 2021 reached RMB 8,343 million, a 66% increase from RMB 5,026 million in 2020[12] - Gross profit for 2021 was RMB 2,390 million, representing a gross margin of approximately 28.7%[12] - Profit attributable to shareholders was RMB 1,110 million, up 60% from RMB 693 million in 2020[12] - The company reported a net asset value of RMB 6,102 million, an increase from RMB 4,390 million in 2020[12] - The company achieved a total revenue of RMB 8,343.4 million in 2021, representing a year-on-year increase of 66.0%[17] - Annual profit reached RMB 1,216.8 million, up 68.0% year-on-year, with profit attributable to equity holders amounting to RMB 1,110.4 million, a 60.2% increase[17] - The company reported a 100.3% increase in campus value-added services revenue, reaching RMB 462.2 million, up from RMB 230.7 million in 2020[42] - The annual profit for the same period was RMB 1,216.8 million, reflecting a year-on-year increase of 68.0%[33] Revenue Sources - Property management services generated revenue of RMB 4,169.6 million, growing 54.2% year-on-year, while community value-added services brought in RMB 2,448.2 million, a 53.0% increase[19] - Community value-added services accounted for 29.3% of total revenue and 37.3% of total gross profit, with revenue reaching RMB 2,448.2 million, a 53.0% increase from RMB 1,600.6 million in 2020[41] - The revenue from new retail services was RMB 433.9 million, a remarkable 337.8% increase compared to RMB 99.1 million in the previous year[44] - City services revenue was RMB 855.1 million, contributing to 10.3% of total revenue, with successful acquisitions enhancing service capabilities[50] - Property management services accounted for 50.0% of total revenue, with revenue from this segment reaching RMB 4,169.6 million, up 54.2% from RMB 2,703.6 million in 2020[34] Growth and Expansion - The company plans to expand into community services and enhance service quality as per government policies issued in 2021[14] - The company aims to leverage government support to enhance its service offerings in areas like elderly care and community services[14] - The managed building area increased to 240.5 million square meters, a rise of 64.6% year-on-year, while contracted building area reached 308.0 million square meters, up 53.2%[18] - The company successfully acquired 6 property management companies in 2021, enhancing its management area in key regions[22] - The company completed the acquisition of 9 companies in 2021, including 6 property service companies, 2 urban service companies, and 1 elderly care service company, enhancing regional comprehensive capabilities[39] - The company aims to continue expanding its market presence in 2022 by acquiring more third-party projects and enhancing operational capabilities[38] Operational Efficiency - The company has a strong focus on technology development to improve operational efficiency and service delivery[14] - The company has implemented integrated management across all acquired companies, improving operational capacity and service quality through financial, human resources, risk control, and business information integration[40] - The company is focusing on enhancing service efficiency through digitalization and building a high-efficiency supply chain[44] - The company aims to maintain a low operational cost while actively exploring available resources in existing projects to develop new business types[41] Financial Position - The company maintained a strong financial position with a current ratio of 1.78, reflecting a solid liquidity position[73] - Current assets increased by 65.5% to RMB 13,933.9 million from RMB 8,416.9 million in 2020, with cash and cash equivalents rising by 68.8% to RMB 9,842.1 million[73] - Trade receivables rose by 69.3% to RMB 3,154.9 million from RMB 1,863.2 million in 2020, driven by business expansion and new service offerings[71] - The company’s intangible assets increased by 74.9% to RMB 3,276.9 million from RMB 1,873.3 million in 2020, mainly due to goodwill from acquisitions[69] Corporate Governance - The company is committed to high standards of corporate governance, which is crucial for its development and shareholder protection[143] - The board consists of nine directors, including five executive directors, one non-executive director, and three independent non-executive directors, ensuring a balanced composition[150] - The company has adhered to the corporate governance code as per the Hong Kong Stock Exchange rules throughout the fiscal year ending December 31, 2021[148] - The independent non-executive directors have reviewed the compliance of the non-competition agreement and confirmed adherence during the reporting period[128] Risk Management - The company has established a risk management and internal control system to identify, assess, manage, monitor, and report all significant risks, including environmental, social, and governance risks[176] - The board confirmed the effectiveness of the risk management and internal control systems for the year ended December 31, 2021, and found them sufficient and effective[180] - The internal audit department plays a crucial role in monitoring the company's internal governance and conducts independent reviews of the adequacy and effectiveness of the risk management and internal control systems[181] Shareholder Engagement - The company has adopted a shareholder communication policy to ensure timely access to comprehensive and understandable information for shareholders[195] - The company encourages shareholders to attend the annual general meeting to enhance accountability and communication[196] - The board is responsible for overseeing the preparation of financial statements that fairly reflect the group's financial position, performance, and cash flows for the relevant periods[171]