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]