香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性 或完整性亦不發表任何聲明，並明確表示概不對因本公告全部或任何部份內容而產生或因倚賴 該等內容而引致的任何損失承擔任何責任。 Jiayuan Services Holdings Limited 佳源服務控股有限公司 （於開曼群島註冊成立之有限公司） （股份代號：1153） 董事會召開日期 佳源服務控股有限公司（「本公司」）董事會（「董事會」）謹此宣佈，本公司董事會 會議將於2025年8月29日（星期五）舉行，旨在（其中包括）批准本公司及其附屬公 司截至2025年6月30日止六個月之中期業績及考慮派發中期股息（如有）。 承董事會命 佳源服務控股有限公司 主席兼執行董事 李猛 香港，2025年8月18日 於本公告日期，執行董事為李猛先生（主席）及辛冰先生，非執行董事為阮紅女 士，以及獨立非執行董事為張辰先生、崔艷女士及蔡思韜先生。 ...

Core Viewpoint - Jiayuan Services (01153) expects a significant increase in net profit for the six months ending June 30, 2025, compared to the same period in 2024, primarily due to the reversal of impairment provisions related to unauthorized guarantees provided to the ultimate controlling shareholder [1]. Financial Performance - The company anticipates net profit attributable to shareholders of approximately RMB 120 million to RMB 150 million for the six months ending June 30, 2025 [1]. - For the six months ending June 30, 2024, the net profit attributable to shareholders is expected to be around RMB 63.2 million [1]. - The increase in net profit is mainly attributed to the reversal of impairment provisions amounting to approximately RMB 109 million, resulting from a mediation agreement signed on May 15, 2025 [1].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性 或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部分內容而產生或因依 賴該等內容而引致的任何損失承擔任何責任。 Jiayuan Services Holdings Limited 佳源服務控股有限公司 （於開曼群島註冊成立的有限公司） （股份代號：1153） 正面盈利預告 本公告乃由佳源服務控股有限公司（「本公司」，連同其附屬公司統稱為「本集團」） 根據香港聯合交易所有限公司證券上市規則（「上市規則」）第13.09條及證券及期 貨條例（香港法例第571章）第XIVA部項下的內幕消息條文（定義見上市規則）作 出。 1 股東及本公司潛在投資者於買賣本公司股份時務請審慎行事。 承董事會命 佳源服務控股有限公司 主席兼執行董事 李猛 香港，2025年8月15日 於本公告日期，執行董事為李猛先生（主席）及辛冰先生；非執行董事為阮紅女 士；及獨立非執行董事為張辰先生、崔艷女士及蔡思韜先生。 2 本公司董事（「董事」）會（「董事會」）謹此知會本公司股東（「股東」）及潛在投資 者，根據對本集團截至2025年6月30日止六個月最新 ...

Group 1 - Country Garden and its executives received public reprimands from stock exchanges for failing to timely disclose the 2024 interim report, indicating internal governance issues that may undermine investor trust in financial transparency and affect bond market financing capabilities [1] - China Overseas Development renewed a total construction agreement with China State Construction, effective from July 1, 2025, to June 30, 2028, with transaction limits set at 2.5 billion yuan for the second half of 2025, 5 billion yuan for 2026 and 2027, and 2.5 billion yuan for the first half of 2028, reflecting a trend of resource integration led by state-owned enterprises in the construction industry [2] - Jiayuan Services entered into a compulsory execution mediation agreement to resolve legal disputes, with a payment of 86 million yuan expected to be covered by internal resources, although governance issues and potential debt repayment pressures from the former controlling shareholder remain [3] Group 2 - China Evergrande Group's liquidator has been authorized to request debt proof from creditors, which may reshape corporate governance structures in the real estate sector and emphasize creditor rights protection, although market trust in similar companies may take time to restore [4] - Huaxia Happiness reported that the trust plan for debt restructuring has not completed asset delivery and transfer, with 22.348 billion yuan already executed in trust debt offset transactions, while the remaining 1.653 billion yuan is still in progress, indicating ongoing challenges in debt management and restructuring execution [5][6]

Core Viewpoint - The company has entered into a compulsory execution mediation agreement to resolve obligations related to unauthorized guarantees and connected transactions, which is expected to impact its financials significantly [1][3][4] Group 1: Mediation Agreement Details - The mediation agreement involves Shanghai Jinyuan and Shanghai Zhijin agreeing to pay a total of RMB 86 million to settle obligations under a share transfer and guarantee agreement [1] - The payment structure includes RMB 43 million through the transfer of 1,034 parking spaces and the remaining RMB 43 million in cash, with specific payment deadlines outlined [1][2] - The agreement allows for the unfreezing of bank accounts of Zhejiang Heyuan and Zhejiang Zhixiang Daceng upon receipt of the initial payment [2] Group 2: Financial Implications - The company anticipates a loss reversal of approximately RMB 109 million due to the mediation, which includes a difference between a previously recorded provision and the mediation amount [3] - The estimated value of the parking spaces to be transferred is around RMB 44.49 million as of March 31, 2025, impacting the overall financial assessment [3] - The actual financial impact will be subject to review by the company's auditors and may differ from the estimates provided [3] Group 3: Strategic Considerations - The board believes that entering into the mediation agreement is a fair and reasonable approach to resolve arbitration matters amicably, avoiding further legal costs and potential negative impacts on the company [4] - The agreement is expected to enhance the company's cash flow and improve operational liquidity by releasing frozen deposits [4] - The company has committed not to pursue claims against Zhejiang Heyuan and Zhejiang Zhixiang Daceng if they fulfill their obligations under the mediation agreement [2][4]

Strategic Development - The company reported a strategic shift towards high-quality development in the property industry, focusing on core business and operational efficiency[13]. - The introduction of a new service quality control system aims to enhance user experience and satisfaction, which is expected to drive brand recognition and operational cost reduction[16]. - The company plans to implement a regional hub strategy to enhance project collaboration and service delivery, targeting high-end user groups to increase brand premium[16]. - Investment in product and service innovation will be increased to create differentiated competitive advantages, aiming for higher quality solutions for property owners[16]. - The company emphasizes a "customer first" approach, integrating altruistic thinking into its service system to enhance community member satisfaction[14]. - The management aims to achieve the "Four Satisfactions" and "Three Goals" through refined and high-quality management practices[16]. - The company anticipates that the property service value assessment system will be restructured, driven by government initiatives for better housing[13]. - The focus on technology empowerment is expected to transform property services from a cost center to a profit center[13]. - The company is committed to creating a service ecosystem centered on user experience and value creation[14]. - The management is optimistic about the upcoming year, viewing it as a critical period for transformation and upgrade in the property industry[13]. Financial Performance - As of December 31, 2024, the group managed 269 property management projects with a contracted area of approximately 54.6 million square meters, a decrease of about 6.9% and 5.5% respectively compared to the same period in 2023[20]. - The group's revenue for the year ended December 31, 2024, was approximately RMB 858.8 million, a decrease of about 1.1% from RMB 868.2 million in 2023[20][23]. - The gross profit for the year ended December 31, 2024, was approximately RMB 240.9 million, a decrease of about 0.5% from RMB 242.1 million in 2023, with a gross margin of 28.1%, up from 27.9% in the previous year[20][30]. - Property management service revenue increased by approximately 3.1% to RMB 785.9 million for the year ended December 31, 2024, primarily due to an increase in average property management fees[21][25]. - Revenue from property developer value-added services decreased by approximately 63.1% to RMB 11.3 million, attributed to a reduction in the number of service projects and newly delivered projects[21][26]. - Community value-added service revenue decreased by approximately 18.4% to RMB 61.6 million, mainly due to a reduction in service projects and a decline in the average spending per resident[22][28]. - The cost of services and sales decreased by approximately 1.3% to RMB 617.8 million, primarily due to a reduction in employee compensation[29]. - Administrative expenses increased by approximately 24.8% to RMB 80.8 million, mainly due to non-recurring expenses such as resumption, legal litigation, and board changes[38]. - The income tax expense for the year ended December 31, 2024, was approximately RMB 19.1 million, a decrease from RMB 20.4 million in 2023, consistent with the reduction in pre-tax profit[41]. - The group reported a profit of approximately RMB 13.3 million for the year ended December 31, 2024, compared to a loss of approximately RMB 77.4 million in 2023[20]. - The company's profit shifted from a loss of approximately RMB 77.4 million for the year ending December 31, 2023, to a profit of approximately RMB 13.3 million for the year ending December 31, 2024[42]. - The total profit attributable to the owners of the company improved from a loss of approximately RMB 80.9 million to a profit of approximately RMB 8.2 million over the same period[42]. Assets and Liabilities - Property and equipment decreased by approximately 12%, from about RMB 25.8 million to about RMB 22.7 million, primarily due to annual depreciation[43]. - Intangible assets decreased by approximately 7.8%, from about RMB 120.8 million to about RMB 111.3 million, mainly due to annual amortization[44]. - Trade receivables increased by approximately 11.8%, from about RMB 313.8 million to about RMB 350.9 million, attributed to a slight decline in cash collection[45]. - Other receivables rose by approximately 2.5%, from about RMB 55.2 million to about RMB 56.6 million, mainly due to increased performance guarantees for new project bids[45]. - Trade payables increased by approximately 5.4%, from about RMB 74.1 million to about RMB 78.1 million, due to higher payments to subcontractors for services[46]. - Cash and cash equivalents increased by approximately 23.4%, from RMB 48.0 million to RMB 60.8 million[48]. - The current ratio improved slightly from approximately 0.60 to 0.61, indicating a stable liquidity position[49]. Operational Challenges - As of December 31, 2024, the group recognized a provision for losses related to unauthorized pledged shares amounting to approximately RMB 46,862,000[56]. - The group has incurred losses of approximately RMB 152,340,000 due to unauthorized guarantees as of December 31, 2024[65]. - The group has pledged all shares of its subsidiary Shanghai Jiayuan Baoji Property Service Co., Ltd. as collateral for bank loans[63]. - The group is facing significant uncertainties regarding its ability to continue as a going concern, as highlighted by its auditor[66]. - The group’s operations are significantly influenced by the regulatory environment of the property management industry in China, which may affect its business and financial performance[68]. - The group has sought legal advice regarding the potential financial impact of the arbitration mediation and enforcement order[61]. - The group’s management believes that sufficient provisions have been made regarding the arbitration mediation despite ongoing legal proceedings[61]. Human Resources and Training - As of December 31, 2024, the group had 5,841 full-time employees, a decrease from 5,891 employees in 2023, with total employee costs approximately RMB 386.8 million, down from RMB 406.0 million in 2023[75]. - The group conducted 5 training sessions for project management leaders, attracting 286 participants, and 6 on-site teaching activities benefiting a total of 1,300 employees[77]. - The group organized 5 systematic financial auditing training sessions with over 30 employees participating, and tailored training for new employees attracted 27 new members[77]. - A total of 123 employees participated in external industry certification training, enhancing their professional capabilities[77]. - The group maintains a comprehensive training plan for different employment levels, utilizing a four-tier training model to promote employee growth and development[80]. - The training evaluation system collects data on employee satisfaction and performance improvement to continuously optimize training programs[80]. - The group aims to build a robust training system to support employee growth and drive continuous corporate development[80]. Corporate Governance - The management team includes experienced professionals with backgrounds in finance, project management, and corporate governance, enhancing the group's strategic direction[81][82][83][84][85]. - The company has adopted a stable dividend policy to ensure sustainable returns for shareholders, but no final dividend is recommended for the year ending December 31, 2024, due to profit and cash flow considerations[96]. - The main business of the group remains property management services, value-added services, and community enhancement services in China, with no significant changes in nature during the year[94]. - The management discussion and analysis section provides insights into the group's performance, financial condition, and important factors for future development, detailed on pages 6 to 18 of the annual report[97]. - The group emphasizes its commitment to environmental, social, and governance (ESG) reporting, which will be published on both the company and stock exchange websites[98]. - The management team has extensive experience, with key members holding over 16 to 30 years in relevant industries, enhancing the group's operational capabilities[88][89]. - The company is focused on compliance and risk management, with dedicated roles for investment development and financial auditing to ensure robust governance[89][90]. - The group aims to expand its market presence and enhance service offerings through strategic initiatives and potential acquisitions[92]. - The board of directors has presented its report along with the audited consolidated financial statements for the year[93]. - The company has complied with relevant laws and regulations, with no significant non-compliance issues reported as of December 31, 2024[99]. Shareholder and Market Relations - The company has not made any significant acquisitions or disposals of subsidiaries, associates, or joint ventures for the year ending December 31, 2024[74]. - The company has not established any stock-linked agreements that could lead to the issuance of shares as of December 31, 2024[109]. - The company has not received any tax exemptions for shareholders holding its shares[106]. - The top five suppliers accounted for less than 30% of total procurement, and the top five customers accounted for less than 30% of total revenue as of December 31, 2024[113]. - The company has maintained sufficient public float as required by the listing rules as of the report date[137]. - The company has not held any treasury shares as of December 31, 2024[140]. - The company allows shareholders holding at least 10% of the paid-up capital to request a special general meeting to address specified matters[197]. Board and Director Management - The board of directors has undergone changes, with several appointments and resignations noted as of December 31, 2024[114]. - The previous chairman and CEO, Mr. Zhu, resigned on July 26, 2024, and Mr. Li was appointed as chairman on December 10, 2024[159]. - The company has maintained good corporate governance practices, emphasizing transparency, accountability, and independence[152]. - The independent non-executive directors have confirmed their independence, meeting the requirements of the listing rules[160]. - The company has established a code of conduct for securities trading to ensure compliance with insider trading regulations[154]. - The board will review its structure and composition periodically to maintain high standards of corporate governance[152]. - All directors are required to retire at least once every three years, ensuring regular re-election and accountability[161]. - The board of directors held a total of 10 meetings during the fiscal year ending December 31, 2024, exceeding the minimum requirement of four meetings per year[168]. - The board is responsible for significant matters including policy, strategy, budget, internal controls, and risk management, ensuring effective governance[165]. - The company encourages directors to seek independent professional advice when necessary to fulfill their duties[162]. Risk Management and Compliance - The company has established a risk management and internal control system to ensure effective operations, reliable financial reporting, and compliance with applicable laws and regulations[184]. - The independent auditor's fees for the year ending December 31, 2024, include RMB 2,300,000 for audit services[192]. - The company has implemented a whistleblowing policy to guide employees and third parties in reporting suspicious misconduct, ensuring confidentiality of the whistleblower's identity[193]. - The board is responsible for continuously monitoring and managing risks related to the company's ESG performance, reviewing the effectiveness of the risk management system at least annually[187]. - The company has a clear internal control authorization system to define the scope and limits of authority for risk-related decisions[188]. - The company has a robust anti-corruption policy that mandates employees to resist fraud and report any suspected fraudulent activities[195]. - The internal audit department serves as the third line of defense in risk management, independently supervising and evaluating the company's operational management[185]. - The company has established a reporting system for internal controls, detailing the responsibilities and processes for reporting and handling internal control issues[188]. - The board of directors is aware of their responsibilities in preparing the financial statements for the year ending December 31, 2024[189].

Financial Performance - Total revenue for the year ended December 31, 2024, was RMB 858.78 million, a decrease of 1.5% from RMB 868.21 million in 2023[4] - Gross profit for the same period was RMB 240.95 million, slightly down from RMB 242.08 million, resulting in a gross margin of approximately 28.1%[4] - The company reported a net profit of RMB 13.29 million for 2024, a significant recovery from a net loss of RMB 77.39 million in 2023[4] - Basic and diluted earnings per share for the year were RMB 0.01, compared to a loss per share of RMB 0.13 in the previous year[4] - The net profit attributable to the company's owners improved to RMB 8,157,000 in 2024, compared to a loss of RMB 80,914,000 in 2023, marking a turnaround in profitability[33] - The total income from the sale of subsidiaries increased significantly from RMB 250,000 in 2023 to RMB 3,150,000 in 2024, a rise of 1,200%[25] Assets and Liabilities - Total assets increased to RMB 685.03 million in 2024, up from RMB 626.81 million in 2023, reflecting a growth of approximately 9.3%[6] - Total liabilities rose to RMB 793.10 million, compared to RMB 738.62 million in 2023, indicating an increase of about 7.4%[8] - As of December 31, 2024, the group has net current liabilities of approximately RMB 305,228,000, equity deficit of approximately RMB 108,068,000, and accumulated losses of approximately RMB 539,108,000[14] - The group's current liabilities net amount was approximately RMB 305.2 million as of December 31, 2024, compared to RMB 289.1 million as of December 31, 2023[75] - The debt-to-asset ratio was 115.8% as of December 31, 2024, down from 117.8% in 2023[75] Cash Flow and Financial Management - Cash and cash equivalents increased to RMB 60.76 million from RMB 48.04 million, representing a growth of approximately 26.5%[6] - The group anticipates recognizing contract liabilities of approximately RMB 121,664,000 as revenue in the next year[14] - The board is actively exploring various alternatives for equity or other financing to improve the group's financial position[15] - The group has existing bank financing available to support its operations[14] - The management has prepared cash flow forecasts covering a period of twelve months from the reporting date, which will be continuously assessed[14] Revenue Breakdown - The total revenue for the year ended December 31, 2024, was RMB 858,780,000, a slight decrease from RMB 868,211,000 in 2023, with property management services contributing RMB 785,918,000[23] - Property management service revenue increased by approximately 3.1% to RMB 785.9 million, primarily due to an increase in average property management fees[48] - Revenue from property developer value-added services decreased by approximately 63.1% to RMB 11.3 million, attributed to a reduction in the number of service projects and new deliveries[48] - Community value-added service revenue fell by approximately 18.4% to RMB 61.6 million, mainly due to a decrease in service projects and a decline in the average spending per resident[49] Expenses and Costs - Administrative expenses increased to RMB 80.82 million from RMB 64.75 million, reflecting a rise of approximately 24.8%[4] - The total financing costs decreased from RMB 1,682,000 in 2023 to RMB 1,190,000 in 2024, a reduction of about 29.2%[26] - The company's total employee compensation decreased from RMB 406,044,000 in 2023 to RMB 386,836,000 in 2024, a decline of approximately 4.7%[28] - The current tax expense rose sharply from RMB 16,653,000 in 2023 to RMB 40,072,000 in 2024, an increase of about 140.5%[30] Operational Insights - The number of property management projects decreased by approximately 6.9% to 269 projects, with a contracted area of about 54.6 million square meters, down 5.5% from 57.8 million square meters in 2023[47] - The group aims to enhance service quality and user experience, focusing on a "customer-first" strategy to improve community satisfaction and operational efficiency[44] - The group plans to optimize its business structure and enhance its competitive edge through innovation and differentiated services[45] - The group plans to optimize project structure by eliminating low-profit and high-management difficulty projects while focusing on high-quality property acquisitions[78] Governance and Compliance - The company is committed to maintaining good corporate governance, emphasizing transparency, accountability, and independence[106] - The audit committee, consisting of three independent non-executive directors, has reviewed the accounting principles and practices adopted by the group and discussed financial reporting matters, including the annual results for the year ending December 31, 2024[111] - The company has complied with relevant laws and regulations affecting its operations, with no significant non-compliance issues reported as of December 31, 2024[99] Future Outlook - The overall market outlook for the property industry is optimistic, with expectations for high-quality development despite ongoing challenges in the capital market[46] - The company is facing industry risks related to regulatory changes in property management fees imposed by the Chinese government, which could impact its financial performance[89] Shareholder Communication - The annual general meeting is scheduled for June 7, 2025, with a suspension of share transfer registration from June 3 to June 7, 2025[102] - The company will disclose all required information on the Hong Kong Stock Exchange and its own website[112] - The report will be accessible on both the Hong Kong Stock Exchange and the company's website[112]

Property Management and Revenue - As of June 30, 2024, the group managed 278 properties with a contracted area of approximately 56.3 million square meters, a decrease of about 7.6% and 5.2% compared to the same period in 2023[4] - Property management service revenue for the six months ended June 30, 2024, was approximately RMB 394.5 million, an increase of about 2.0% year-over-year, accounting for 90.8% of total revenue[5] - Revenue for the six months ended June 30, 2024, was RMB 434,364,000, a decrease of 1.5% compared to RMB 442,007,000 for the same period in 2023[83] - The total revenue for the six months ended June 30, 2024, was RMB 434,364 thousand, a slight decrease of 1.4% from RMB 442,007 thousand in the same period of 2023[141] - Revenue from community value-added services was approximately RMB 34.2 million, a decrease of about 11.4% compared to the same period in 2023, accounting for about 8.7% of total revenue[198] - The gross profit margin for property management services decreased from approximately 35.9% for the six months ended June 30, 2023, to about 32.8% for the same period in 2024, primarily due to increased labor costs[14] - The gross profit margin for community value-added services decreased from approximately 46% to about 43.7% due to increased service costs[16] - Value-added service revenue from property developers decreased by approximately 66.2% from RMB 16.8 million to RMB 5.7 million, mainly due to a reduction in the number of new service projects[11] Financial Performance - Total profit and comprehensive income decreased slightly from approximately RMB 66.4 million to about RMB 66.0 million for the six months ended June 30, 2024[20] - The company reported a profit attributable to owners of RMB 63,178 thousand for the six months ended June 30, 2024, compared to RMB 63,558 thousand for the same period in 2023, indicating a decrease of 0.6%[150] - Gross profit for the same period was RMB 146,015,000, down from RMB 161,215,000, reflecting a decline of 9.4%[83] - The company reported a total comprehensive income of RMB 63,178,000 for the six months ended June 30, 2024, compared to RMB 66,365,000 for the same period in 2023, indicating a decrease of approximately 4.45%[109] - The net loss from financial asset impairment was RMB 13,183,000, significantly improved from a loss of RMB 46,708,000 in the previous year[83] - Profit before tax increased slightly to RMB 89,831,000, compared to RMB 88,953,000 in the prior year, marking a growth of 1%[83] - Basic and diluted earnings per share remained stable at RMB 0.10 for both periods[83] Expenses and Liabilities - Administrative expenses rose from approximately RMB 19.7 million to about RMB 30.4 million, an increase of approximately 54.3%, attributed to business expansion and rising personnel costs[18] - The total employee cost for the six months ended June 30, 2024, was approximately RMB 243.0 million, with 5,897 full-time employees[34] - Interest expenses on bank borrowings for the six months ended June 30, 2024, were RMB 20,459 thousand, a decrease of 41.3% from RMB 34,776 thousand in the same period of 2023[133] - The company reported trade payables of RMB 69,365,000 as of June 30, 2024, a decrease of 6.5% from RMB 74,064,000 on December 31, 2023[175] - Other payables increased to RMB 64,530,000 as of June 30, 2024, up 5.5% from RMB 61,325,000 on December 31, 2023[175] - Total liabilities decreased to RMB 695,177,000 from RMB 738,615,000, a reduction of about 5.85%[108] Assets and Equity - As of June 30, 2024, total assets amounted to RMB 648,341,000, an increase from RMB 626,814,000 as of December 31, 2023, representing a growth of approximately 3.99%[107] - The company's cash and cash equivalents increased to RMB 63,078,000 from RMB 48,041,000, marking a rise of 31.24%[110] - Trade and other receivables rose to RMB 390,458,000 from RMB 377,920,000, reflecting an increase of 3.93%[107] - The company's equity attributable to owners of the company improved to RMB (46,836,000) from RMB (111,801,000), indicating a significant reduction in equity deficit[107] Corporate Governance and Compliance - The company has conducted an independent internal control review to ensure compliance with listing rules[63] - The company is under a trading suspension since April 3, 2023, due to the need for further investigation into abnormal transactions[165] - The company applied for an extension of the remedial period until December 31, 2024, to meet the resumption conditions set by the stock exchange[168] - The company submitted a resumption proposal to the Stock Exchange on September 25, 2024, to address issues leading to the suspension of trading[186] - The Stock Exchange extended the remedial period for the company until December 31, 2024, after considering its situation[187] Shareholder Information - The company has a significant shareholder, Valuable Capital Group Limited, holding 450,000,000 shares, representing approximately 73.56% of the company's equity[49] - The company has a beneficial owner, First Leading Trading Limited, holding 32,124,000 shares, which is approximately 5.25% of the equity[49] - The total number of issued shares as of June 30, 2024, is 611,709,000 shares[77] - The company did not recommend any interim dividend for the six months ended June 30, 2024, consistent with the previous year[172] Legal and Risk Management - The company reported that there were no significant adverse effects on its consolidated financial position or performance from ongoing claims and litigations[57] - The company is involved in several claims and litigations related to property management contracts and employment disputes, but does not expect significant adverse effects on its financial position[183] - The company has engaged independent investigators to review unusual transactions and internal control systems, with reports released on September 19, 2024[185] Future Outlook and Strategy - The company aims to explore high-quality development paths, focusing on product innovation, mechanism innovation, and brand innovation[200] - The company emphasizes value creation and sharing, aiming to enhance team motivation and foster a sense of belonging and pride among service personnel[200]

Financial Performance - Total revenue for the year ended December 31, 2023, was RMB 868,211 thousand, a decrease of 8.1% from RMB 944,793 thousand in 2022[12]. - Gross profit for the same period was RMB 242,075 thousand, down 13.5% from RMB 279,940 thousand in the previous year[12]. - The net loss for the year was RMB 77,394 thousand, compared to a net loss of RMB 660,551 thousand in 2022, indicating a significant improvement[12]. - The basic and diluted loss per share improved to RMB (0.13) from RMB (1.09) in the previous year[12]. - The company reported a net loss of RMB 80,914,000 for the year, compared to a loss of RMB 664,336,000 in the previous year, indicating a significant improvement[19]. - Total losses and comprehensive expenses decreased from approximately RMB 660.6 million for the year ended December 31, 2022, to a loss of approximately RMB 77.4 million for the year ended December 31, 2023[123]. - The company's loss attributable to owners decreased from approximately RMB 664.3 million in 2022 to RMB 80.9 million in 2023[92]. Expenses and Cost Management - Administrative expenses decreased to RMB 64,746 thousand from RMB 81,902 thousand, reflecting a reduction of 20.9%[12]. - The total marketing expenses were reduced to RMB 7,582 thousand from RMB 11,263 thousand, a decrease of 32.5%[12]. - Sales and marketing expenses decreased from approximately RMB 113 million for the year ended December 31, 2022, to approximately RMB 76 million for the year ended December 31, 2023, a reduction of about 32.7%, primarily due to decreased advertising expenses[119]. - Administrative expenses decreased from approximately RMB 819 million for the year ended December 31, 2022, to approximately RMB 648 million for the year ended December 31, 2023, a reduction of about 20.9%, mainly attributed to organizational restructuring and a reduction in management personnel[120]. Asset and Liability Management - Total assets increased to RMB 626,814,000, compared to RMB 601,916,000 in 2022, representing a growth of 4.5%[14]. - Total liabilities increased to RMB 738,615,000 from RMB 636,035,000, reflecting a rise of 16.1%[17]. - The company's equity attributable to owners showed a significant decline, with reserves dropping to RMB (143,840,000) from RMB (62,983,000)[19]. - The total liabilities to total assets ratio increased to 117.8% from 105.6%, indicating a higher leverage position[17]. - The group has net current liabilities of approximately RMB 289.1 million and a capital shortfall of about RMB 111.8 million as of December 31, 2023[63]. Revenue Breakdown - Revenue from property management services decreased by approximately 3.5% to about RMB 762.2 million for the year ended December 31, 2023, primarily due to a decline in average property management fees[70]. - Revenue from property developer value-added services dropped approximately 66.1% to about RMB 30.6 million, attributed to a decrease in the number of service projects and newly delivered projects[70]. - Community value-added services revenue increased by approximately 16.6% to about RMB 75.5 million, driven by an increase in value-added service projects and higher average spending per resident[73]. - The gross profit for the year ended December 31, 2023, was approximately RMB 242.1 million, representing a decrease of about 13.5% from RMB 279.9 million in 2022, with a gross margin of 27.9% compared to 29.6% in 2022[69]. Governance and Internal Controls - The company has appointed internal control consultants to review and strengthen its internal controls and governance to prevent similar incidents in the future[50]. - The governance structure has been continuously optimized to clarify the responsibilities of various governance entities[36]. - The company is committed to maintaining a robust decision-making mechanism as part of its governance improvements[36]. Unauthorized Transactions and Legal Matters - The company recognized a loss of RMB 123,000 thousand from unauthorized guarantees, which was not present in the previous year[12]. - Unauthorized deposits and fund transfers amounted to approximately RMB 159,007,000 for overseas transactions and RMB 949,975,000 for domestic transactions in 2022, compared to RMB 885,975,000 in 2021[45]. - The total net outflow recorded due to unauthorized transactions was approximately RMB 643,819,000 as of December 31, 2022[46]. - The group confirmed an expected credit loss of approximately RMB 123,000,000 related to the equity transfer price[141]. - The group has taken legal action to contest the arbitration settlement and enforcement order to protect its legal rights[141]. Employee Management and Development - As of December 31, 2023, the group had 5,891 full-time employees, a decrease from 6,155 employees as of December 31, 2022[185]. - Total employee costs for the year ended December 31, 2023, were approximately RMB 406.0 million, down from RMB 454.7 million in 2022, reflecting a cost reduction of about 10.5%[185]. - The group organized 12 centralized training sessions with 1,255 employees participating, and conducted 11 on-site teaching sessions with 1,204 employees involved[187]. - The group has established a comprehensive training plan tailored to different employment levels, promoting employee growth and development[189]. Strategic Focus and Future Outlook - The company has implemented a series of strategic adjustments and internal optimization measures to enhance operational efficiency and core competitiveness[34]. - The group aims to expand its business through organic growth and acquisitions, but expansion plans may be impacted by the overall economic conditions in China[178]. - The company plans to focus on innovation, brand building, talent development, and the application of smart technologies to enhance service quality and operational efficiency[133][134].

Financial Performance - Revenue from community value-added services for the six months ended June 30, 2023, was approximately RMB 386 million, an increase of about 5.1% year-on-year, accounting for about 8.7% of total revenue[6]. - Revenue from property developer value-added services decreased by approximately 69.6% to about RMB 168 million for the six months ended June 30, 2023, representing about 3.8% of total revenue, down 11.2 percentage points from 2022[30]. - The company's revenue for the six months ended June 30, 2023, was approximately RMB 442.0 million, a decrease of about 3.9% compared to approximately RMB 460.0 million for the same period in 2022[45]. - Property management service revenue increased by approximately 5.0% to about RMB 386.6 million for the six months ended June 30, 2023, compared to approximately RMB 368.2 million for the same period in 2022, accounting for about 87.5% of total revenue[46]. - The net profit for the six months ended June 30, 2023, was approximately RMB 66.4 million, a decrease of about 3.3% from approximately RMB 68.7 million in the same period of 2022[64]. - The company reported a profit of RMB 63,558,000 for the six months ended June 30, 2023, compared to a profit of RMB 65,679,000 for the same period in 2022, reflecting a slight decrease of about 3.23%[166]. - The company's basic and diluted earnings per share for the period was RMB 0.10, down from RMB 0.11 in the same period of 2022[189]. Cost Management - Gross profit increased by approximately 10.9% to about RMB 612 million for the six months ended June 30, 2023, due to optimization of business scale[11]. - The gross profit margin for property management services increased from approximately 30% to about 35.9% for the same period, attributed to personnel optimization and cost reduction[12]. - Administrative expenses decreased by approximately 49.4% to about RMB 197 million for the six months ended June 30, 2023, due to a reduction in management personnel[21]. - Sales and marketing expenses decreased by approximately 52.3% to about RMB 31 million, related to adjustments in the company's business strategy[14]. - The cost of services and sales decreased by approximately 10.8% to about RMB 280.8 million for the six months ended June 30, 2023, down from approximately RMB 314.7 million in the same period of 2022, primarily due to optimization of the organization and reduction in employee numbers[36]. Asset and Liability Management - The group's net current liabilities improved from approximately RMB 2,143 million as of December 31, 2022, to approximately RMB 1,609 million as of June 30, 2023, with a current ratio of approximately 0.69 compared to 0.65 previously[76]. - Trade receivables (net of impairment provisions) decreased from approximately RMB 3,139 million as of December 31, 2022, to approximately RMB 2,795 million as of June 30, 2023, a decrease of about 11% due to a reduction in the number of property management projects managed by the group[70]. - Trade payables decreased from approximately RMB 945 million as of December 31, 2022, to approximately RMB 804 million as of June 30, 2023, a decrease of about 14.9% due to a reduction in the number of property management projects[71]. - Total liabilities decreased to RMB 541,449,000 as of June 30, 2023, from RMB 636,035,000 as of December 31, 2022[192]. - Current liabilities, including contract liabilities, decreased to RMB 515,580,000 from RMB 604,332,000[192]. Strategic Focus - The company aims to enhance strategic determination and maintain a high-quality development path, focusing on customer satisfaction and operational efficiency[32]. - The management emphasizes the importance of risk control and maintaining good commercial credit to avoid unnecessary economic losses[32]. - The company continues to focus on property management and community value-added services in China, aiming for market expansion and enhanced service offerings[197]. Governance and Compliance - The company has adopted the Corporate Governance Code as a benchmark for its corporate governance practices, ensuring compliance with the latest developments in corporate governance[96]. - The company has confirmed that all directors have complied with the trading standards set out in the Standard Code for Securities Transactions by Directors during the six months ended June 30, 2023[97]. - The company’s board structure and composition will be reviewed periodically to maintain high standards of corporate governance[138]. - The company has not disclosed any interests or short positions in the company's shares or related securities by directors or senior management as of June 30, 2023[145]. Cash Flow and Investments - Operating cash flow for the six months ended June 30, 2023, was RMB 31,855,000, compared to a cash outflow of RMB 180,583,000 in the same period of 2022, indicating a significant improvement[195]. - Net cash generated from operating activities was RMB 26,216,000, a recovery from a net cash outflow of RMB 200,165,000 year-over-year[195]. - Cash used in investing activities amounted to RMB 7,789,000, a substantial decrease from cash inflow of RMB 275,915,000 in the previous year[195]. - The company has not made any acquisitions during the current period, contrasting with a cash outflow of RMB 1,760,000 for acquisitions in the same period last year[195]. Shareholder Information - The joint offerors became the controlling shareholders of the company, owning approximately 73.56% of the issued share capital following the completion of the mandatory unconditional cash offer on September 5, 2024[114]. - The company’s major shareholder, Valuable Capital Group Limited, holds 73.56% of the shares, indicating a strong control over the company[153]. - A total of 450,000,000 shares, representing approximately 73.56% of the issued share capital, were sold for a total consideration of HKD 99,000,000 on September 5, 2024[137].