Financial Reporting and Accounting - The company recognizes dividends from subsidiaries based on received and receivable dividends at the end of the reporting period[1]. - The acquisition of subsidiaries not under common control is accounted for using the acquisition method, with the transfer price measured at fair value[3]. - Identifiable assets and liabilities acquired in a business combination are initially measured at their fair value at the acquisition date[4]. - Goodwill is measured as the excess of the total consideration transferred over the fair value of identifiable net assets acquired[4]. - Contingent consideration is measured at fair value at the acquisition date and is considered part of the transferred consideration[5]. - The company applies the equity method for investments in associates and joint ventures, adjusting for any impairment losses recognized[8]. - The financial statements reflect the performance of both the acquiring and acquired entities as if they had always been combined[2]. - Any changes in the value of equity interests held prior to acquisition are reclassified to profit or loss upon gaining control[6]. - The company will report any temporary amounts related to uncompleted accounting for business combinations at the end of the reporting period[6]. - Unrealized profits from transactions between the company and its associates or joint ventures will be eliminated to the extent of the company's interest[8]. - The group assesses the need for additional impairment losses on investments in associates or joint ventures at each reporting period end[9]. - The group has adopted an expected credit loss model for long-term equity interests in associates or joint ventures, where applicable[9]. - The group will review and adjust estimates of residual values, depreciation methods, and useful lives of property, plant, and equipment at each reporting period end[15]. - The company conducts annual impairment tests for goodwill allocated to cash-generating units[56]. - The company’s financial assets are classified based on the business model for managing them and their contractual cash flow characteristics[63]. - Financial assets are initially measured at fair value, with transaction costs included for those not measured at fair value through profit or loss[61]. - Financial liabilities are initially measured at fair value, with adjustments made for transaction costs when applicable[68]. - Any impairment loss is recognized immediately if the carrying amount of an asset exceeds its recoverable amount[51]. - The group recognizes revenue based on a five-step model, ensuring that performance obligations are met before revenue is recognized[168]. Corporate Governance - The board of directors consists of three executive directors, three non-executive directors, and three independent non-executive directors, ensuring compliance with the listing rules[133]. - The company has adopted the corporate governance code effective from December 31, 2023, and has complied with all applicable provisions except for one[131]. - The independent non-executive directors play a crucial role in providing unbiased views on the company's strategy, performance, and controls[138]. - The company has confirmed the independence of all independent non-executive directors according to the applicable listing rules, ensuring they meet the independence criteria[139]. - The board has maintained a composition that meets the requirement of having at least one independent non-executive director with appropriate professional qualifications or accounting and financial management expertise[134]. - The board is responsible for overseeing major company matters, including policy formulation, overall strategy, and risk management systems[135]. - The management team, composed of executive directors and senior management, is authorized to execute the strategies and policies passed by the board[136]. - The company has mechanisms in place to ensure that independent views and opinions are available to the board, enhancing decision-making processes[138]. - The company has a responsibility insurance policy for its directors and senior management to cover potential legal liabilities arising from their duties[135]. - The board has conducted annual reviews of the implementation and effectiveness of its mechanisms for obtaining independent professional advice[134]. - The board consists of nine members, with five women, representing 55.56% of the board, enhancing diversity[141]. - The board's age range is between 43 and 57 years, contributing to a balanced experience across various sectors[141]. - The company aims to promote gender diversity at all levels, including the board and senior management[141]. - The nomination committee will review the board's structure and diversity policy annually to ensure effective implementation[142]. - The company recognizes the importance of a diverse board in achieving strategic goals and sustainable development[140]. - The board meetings occur quarterly, with at least four meetings held each year, ensuring regular strategic discussions[146]. - The company has adopted a policy to consider multiple factors for board diversity, including gender, age, and professional experience[140]. - The company will continue to assess its business model and specific needs to enhance board diversity[141]. - The board's composition aligns with the company's diversity policy, reflecting a commitment to diverse representation[141]. - The company has implemented measures to ensure that the board's diversity policy is continuously reviewed and updated as necessary[142]. Operational Performance - As of December 31, 2023, the group employed 5,536 staff, an increase from 4,584 staff as of December 31, 2022, reflecting a growth of approximately 20.8%[21]. - The group maintained a prudent financial management policy, ensuring a robust liquidity position throughout the year[19]. - The group reported a net amount of approximately RMB 125.05 million utilized from the proceeds, indicating a cautious investment approach due to intensified market competition in the property management services industry[25]. - The board has decided to change the intended use of the unutilized portion of the net proceeds after careful consideration of the group's operations and business strategy[25]. - The group has no contingent liabilities as of December 31, 2023, consistent with the previous year[18]. - The group closely monitors foreign exchange risks arising from operations primarily in RMB and HKD, with no current foreign currency hedging policy in place[20]. - The company reported a significant increase in revenue for the fiscal year ending December 31, 2023, with total revenue reaching approximately 1.2 billion, representing a year-over-year growth of 15%[107]. - The number of managed properties increased to 150, up from 130 in the previous year, indicating a growth rate of 15% in property management services[107]. - The company plans to expand its market presence by entering three new cities in 2024, aiming for a 20% increase in market share within the next two years[107]. - New product offerings in the property management sector are expected to contribute an additional 100 million in revenue by the end of 2024[107]. - The company has allocated 50 million for research and development of new technologies aimed at improving operational efficiency and customer service[107]. - A strategic acquisition of a smaller competitor is anticipated to be finalized in Q2 2024, which is expected to enhance the company's service portfolio and increase revenue by 10%[107]. - The company has set a performance guidance for 2024, projecting a revenue growth of 12% to 15% based on current market trends and expansion strategies[107]. - User satisfaction ratings have improved to 85%, up from 80% last year, reflecting the effectiveness of recent service enhancements[107]. - The company has reduced operational costs by 5% through improved management practices and technology integration[107]. - The financial liabilities, including trade and other payables, are being managed effectively, with a focus on maintaining a healthy cash flow position[107]. Credit Risk Management - The group adopts a forward-looking approach for impairment assessment under HKFRS 9, focusing on expected credit losses (ECL) based on a broader range of data, including historical events and current conditions[109]. - The expected credit loss measurement is categorized into three stages: Stage 1 for low credit risk, Stage 2 for significant credit deterioration, and Stage 3 for assets with objective evidence of impairment[110]. - For trade receivables, the group applies a simplified approach to calculate ECL, recognizing loss allowances based on the entire lifetime expected credit losses at each reporting period[114]. - The group has established a provision matrix for calculating ECL based on historical credit loss experience and external indicators, adjusting for specific forward-looking factors related to debtors and the economic environment[114]. - The assessment of significant increases in credit risk considers various factors, including external or internal credit rating deterioration and adverse changes in the debtor's operational performance[117]. - The group assumes that credit risk significantly increases when contractual payments are overdue by more than 30 days unless supported by reasonable and corroborative data[117]. - The group calculates credit losses for other receivables as twelve-month expected credit losses unless there is a significant increase in credit risk since initial recognition, in which case lifetime expected credit losses are recognized[116]. - The group evaluates the credit risk of debt instruments and assumes low credit risk if the default risk is low and the borrower is capable of fulfilling cash flow obligations in the short term[118]. - Detailed analysis of expected credit losses for trade receivables and other financial assets measured at amortized cost is provided in Note 41.4[118]. Human Resources and Management - The group has appointed a new general manager, effective November 14, 2023, to enhance corporate governance[23]. - Ms. Tong Yan has over 17 years of experience in economics, finance, and accounting, and has served as an independent non-executive director since June 2020[78]. - Ms. Lu Qing has over 31 years of experience in finance and accounting, joining the company as an independent non-executive director in June 2020[80]. - Mr. Liu Anpeng has been with the company since July 2018 and is responsible for monitoring operations and financial matters as the chairman of the supervisory board[83]. - Ms. Gao Minghui joined the company in June 2019 and has held various roles, including senior risk manager and assistant general manager of the risk legal center[86]. - Ms. Lu Min has been a supervisor since September 2019, focusing on monitoring operations and financial matters[87]. - The group has a policy in place to ensure ongoing professional development for all directors, with training related to compliance and regulatory updates[177]. - As of December 31, 2023, the company had 10 senior management personnel earning between RMB 0–1,000,000 and 1 earning between RMB 1,000,001–1,500,000[189]. - The company has adopted a whistleblowing management policy to maintain high standards of integrity and ethical business conduct[191]. Revenue Recognition - The company recognizes revenue from property management services based on a fixed amount charged monthly, corresponding to the value of services rendered[199]. - The company confirms revenue from property management services under a commission-based model as a percentage of the total management fees received or receivable[200]. - The company’s revenue from property management services is recognized at the time the performance obligations are fulfilled[198]. - The company plans to declare and pay an annual dividend of no less than 30% of the profit for the year[190]. - The company’s dividend payment and amount depend on operational performance, cash flow, financial condition, and other relevant factors[190].

Revenue and Growth - The total revenue for the year ended December 31, 2023, was RMB 1,514,476 thousand, an increase of 9.1% from RMB 1,388,189 thousand in 2022[8] - Revenue from property management services recognized on a package basis was RMB 1,115,501 thousand, up from RMB 1,027,421 thousand in the previous year, reflecting an increase of 8.6%[8] - Community value-added services generated revenue of RMB 302,757 thousand, compared to RMB 280,530 thousand in 2022, marking a growth of 7.9%[8] - The group’s external revenue from mainland China was RMB 1,487,570 thousand, an increase from RMB 1,388,189 thousand in 2022, representing a growth of 7.2%[11] - For the year ended December 31, 2023, revenue increased by approximately 9.10% to approximately RMB 1,514.48 million from RMB 1,388.19 million for the year ended December 31, 2022[28] - Property management service revenue rose to RMB 1,128.37 million, an increase of 8.43% from RMB 1,040.62 million in the previous year[141] Profit and Earnings - The group's profit for the year was approximately RMB 143.54 million, an increase of about 5.71% from RMB 135.79 million for the year ended December 31, 2022[28] - Profit attributable to owners of the company was approximately RMB 128.10 million, up about 5.77% from RMB 121.11 million for the previous year[28] - Basic and diluted earnings per share for the year were RMB 0.343, compared to RMB 0.324 for the previous year[30] - The company achieved a total profit attributable to owners of RMB 128.1 million in 2023, compared to RMB 121.1 million in 2022, reflecting a growth of approximately 5.5%[84] - Basic earnings per share rose to RMB 0.343 in 2023, up from RMB 0.324 in 2022, indicating an increase of about 5.9%[84] Expenses and Costs - The company's employee costs included RMB 489,296,000 in cost of sales and RMB 43,551,000 in administrative expenses, reflecting an increase from RMB 458,299,000 and RMB 49,388,000 respectively in 2022[61] - The total expenses for cleaning, security, and maintenance services increased to RMB 541,175,000 in 2023 from RMB 467,939,000 in 2022, an increase of 15.6%[61] - The group's administrative expenses decreased by approximately 5.09%, from RMB 82.57 million to RMB 78.37 million, due to a reduction in certain management costs[145] Assets and Liabilities - Total assets as of December 31, 2023, amounted to RMB 2,102.90 million, an increase from RMB 2,001.03 million as of December 31, 2022[32] - The company’s total liabilities increased to RMB 606,100,000 in 2023 from RMB 551,031,000 in 2022, representing a rise of 10%[70] - The company’s current assets net value as of December 31, 2023, was approximately RMB 1,110.98 million, a slight increase of 0.71% from RMB 1,103.20 million in the previous year[124] - The company's debt-to-asset ratio was 0.38, compared to 0.39 on December 31, 2022[183] Dividends - The board proposed a final dividend of RMB 0.173 per share for the year ended December 31, 2023, with a payout ratio of approximately 50.44%[28] - The company declared a final dividend of RMB 0.173 per share for 2023, totaling RMB 64,616,000, compared to RMB 0.163 per share and RMB 60,881,000 in 2022, representing a 6.1% increase in total dividend[55][68] Business Expansion and Strategy - The company continues to focus on expanding its property management services in both mainland China and Hong Kong[19] - The company expanded its business scope to cover 19 provinces, municipalities, and autonomous regions, enhancing its market presence[74] - The company established five joint ventures in 2023, aiming to leverage diverse resources and enhance market competitiveness[75] - The company completed the acquisition of a 70% stake in ZhiJia Property Services Limited, which will be consolidated into the financial statements from October 1, 2023[98] - The company plans to enhance its market-oriented operations and expand its service capabilities across various segments, leveraging its experience in the commercial office sector[115] Financial Position and Management - The company maintains a strong financial position with a current ratio of approximately 2.52 times as of December 31, 2023, consistent with the previous year[124] - The company has no bank loans or borrowings as of December 31, 2023[172] - The company maintains a prudent financial management approach, ensuring a stable liquidity position throughout the year[185] - The company closely monitors its liquidity status to meet funding requirements[185] Awards and Recognition - The company received multiple awards in 2023, including recognition as one of the top 100 property service companies in China, enhancing its brand value to RMB 4.42 billion[96] Social Responsibility and Compliance - The group is committed to fulfilling its social responsibilities and enhancing safety in its operations[139] - The company has adopted the Corporate Governance Code as its own governance code, ensuring compliance with applicable rules[162]

Financial Performance - The net profit for the six months ended June 30, 2023, was RMB 71,113,000, compared to RMB 61,949,000 for the same period in 2022, representing a growth of approximately 14.5%[20]. - The total comprehensive income for the six months ended June 30, 2023, was RMB 78,346,000, compared to RMB 69,456,000 for the same period in 2022, indicating an increase of approximately 12.5%[20]. - The group's profit increased from approximately RMB 69.46 million to approximately RMB 78.46 million, a growth of 12.96%, primarily due to effective cost control[138]. - Total comprehensive income rose from approximately RMB 69.46 million to approximately RMB 78.35 million, an increase of 12.80%, mainly driven by an increase in net profit margin[139]. - The company's total revenue for the first half of 2023 was RMB 712,358 thousand, a 6.39% increase from RMB 669,552 thousand in the same period of 2022[121]. Assets and Equity - As of June 30, 2023, total assets amounted to RMB 2,025,203,000, an increase from RMB 2,001,344,000 as of December 31, 2022, representing a growth of approximately 1.2%[16]. - Non-current assets decreased to RMB 153,166,000 from RMB 170,579,000, reflecting a decline of about 10.2%[16]. - Current assets increased to RMB 1,872,037,000, compared to RMB 1,830,765,000, marking an increase of approximately 2.3%[16]. - The total equity attributable to owners of the company increased to RMB 1,190,038,000 from RMB 1,179,917,000, reflecting a growth of approximately 0.9%[16]. - The company’s total equity as of June 30, 2023, was RMB 1,225,006,000, up from RMB 1,217,062,000, representing a growth of approximately 0.7%[16]. Cash Flow and Dividends - Cash flow from operating activities showed a net outflow of RMB 38,108,000 for the first half of 2023, an improvement from a net outflow of RMB 53,246,000 in the same period of 2022[22]. - The company declared dividends totaling RMB 60,881,000 for the first half of 2023, down from RMB 82,917,000 in the same period of 2022[20]. - The company reported a decrease in cash and cash equivalents by RMB 71,161,000 for the first half of 2023, compared to a decrease of RMB 63,980,000 in the same period of 2022[22]. - As of June 30, 2023, the group's cash and bank balances were approximately RMB 1,518.30 million, a decrease of approximately RMB 26.72 million from RMB 1,545.02 million as of December 31, 2022[140]. Revenue Breakdown - Revenue for the six months ended June 30, 2023, was RMB 712,358,000, an increase from RMB 669,552,000 for the same period in 2022, representing a growth of approximately 6.5%[52]. - Property management service income recognized on a package basis was RMB 526,027,000, up from RMB 504,900,000 in the previous year, reflecting an increase of about 4.3%[47]. - Value-added services revenue increased to RMB 137,744,000 from RMB 126,504,000, marking a growth of approximately 8.8%[47]. - Revenue from catering services rose from approximately RMB 28.07 million to approximately RMB 37.10 million, benefiting from increased customer traffic[131]. Operational Highlights - The company has successfully secured multiple government office area and military camp property service projects, leveraging its state-owned enterprise status[74]. - The company has expanded its business coverage to 17 provinces and municipalities across six regions in China[84]. - The company has established a joint venture in Shandong Province to enhance project service quality and operational efficiency, aiming to expand its property management market[92]. - The company is focusing on enhancing its value-added services and optimizing its operational model to improve customer experience and business growth[85]. Market Position and Strategy - The company plans to expand its business scale through market expansion, joint ventures, and acquisitions, including a 70% stake acquisition in ZhiJia Property Services Co., Ltd.[74]. - The company aims to enhance service quality and customer satisfaction while building a new property service ecosystem for long-term high-quality development[76]. - The company continues to strengthen its market competitiveness and expand its market development capabilities[74]. - The company aims to expand its market presence by leveraging its high-end commercial property service experience and brand influence[118]. Governance and Compliance - The company has adopted the Corporate Governance Code as per the Listing Rules Appendix 14, ensuring compliance with high standards of corporate governance[197]. - The company maintains a commitment to high standards of business ethics and corporate governance practices, which are essential for sustainable development and enhancing shareholder value[197]. - The company has confirmed that all directors and supervisors have complied with the standards set out in the Standard Code for Securities Transactions during the reporting period[199]. - The company has not reported any violations of the Standard Code by relevant personnel and employees during the reporting period[199].

Revenue and Profitability - For the six months ended June 30, 2023, the revenue from property management and related services was RMB 707,174,000, an increase of 6.2% from RMB 665,920,000 for the same period in 2022[4]. - Total revenue increased from approximately RMB 669.55 million for the six months ended June 30, 2022, to approximately RMB 712.36 million for the same period in 2023, representing a growth of about 6.39%[31]. - Profit increased from approximately RMB 69.46 million for the six months ended June 30, 2022, to approximately RMB 78.46 million for the same period in 2023, a growth of about 12.96%[34]. - Net profit for the period was RMB 78,457,000, representing a 13.4% increase from RMB 69,455,000 in the prior year[107]. - Profit for the period was RMB 78.46 million, representing an increase of approximately 12.96% compared to RMB 69.46 million for the same period in 2022[125]. - Profit attributable to owners of the company was approximately RMB 71.11 million, up approximately 14.79% from RMB 61.95 million for the same period in 2022[125]. Expenses and Costs - Employee costs, including director remuneration, totaled RMB 243,563,000 for the six months ended June 30, 2023, compared to RMB 222,437,000 in the same period of 2022, reflecting a rise of 9.5%[8]. - The overall gross profit decreased from approximately RMB 130.56 million for the six months ended June 30, 2022, to approximately RMB 126.49 million for the six months ended June 30, 2023, a decline of about 3.12%[57]. - The overall gross profit margin for the six months ended June 30, 2023, was approximately 17.76%, down from 19.50% for the same period in 2022[57]. - The group's administrative expenses decreased from approximately RMB 347.9 million for the six months ended June 30, 2022, to approximately RMB 302.7 million for the same period in 2023, a reduction of about 12.99% due to effective cost control[197]. Assets and Liabilities - Total assets as of June 30, 2023, amounted to RMB 2,025,203 thousand, compared to RMB 2,001,344 thousand as of December 31, 2022[130]. - Total liabilities as of June 30, 2023, were RMB 800,197 thousand, an increase from RMB 784,282 thousand as of December 31, 2022[130]. - The company had no borrowings as of June 30, 2023, consistent with the position as of December 31, 2022[60]. - The company reported a decrease in trade and other payables from approximately RMB 296.82 million as of December 31, 2022, to approximately RMB 288.64 million as of June 30, 2023, a decline of about 2.76%[86]. - The total liabilities for trade and other payables as of June 30, 2023, amounted to RMB 586.65 million, an increase from RMB 551.03 million as of December 31, 2022[181]. Cash Flow and Investments - Cash and bank balances as of June 30, 2023, were approximately RMB 1,518.30 million, a decrease of about RMB 26.72 million from RMB 1,545.02 million as of December 31, 2022[36]. - The company plans to utilize approximately RMB 648.36 million from net proceeds for strategic acquisitions and investments, with an expected timeline for full utilization by December 31, 2023[63]. - The company has not planned any significant investments, sales, or capital asset increases for the six months ended June 30, 2023[42]. Market Presence and Operations - The company operates primarily in property management and related services, with a focus on enhancing overall value[3]. - The company expanded its business coverage to 17 provinces and municipalities, enhancing its market presence in key areas[156]. - The company successfully added 29 new projects, bringing the total number of managed projects to 253 as of June 30, 2023[156]. - The company aims to enhance its market expansion capabilities and improve its value-added service system to support sustainable development[54]. Dividends - The company proposed a dividend of RMB 60,881,000, which was approved at the shareholders' meeting on June 8, 2023[10]. - The company declared a final dividend of RMB 60,881,000 for the six months ended June 30, 2023, down from RMB 82,917,000 for the same period in 2022[146]. - The company did not recommend an interim dividend for the six months ended June 30, 2023, consistent with the previous year[102]. Credit and Receivables - The expected credit loss provision for trade receivables was RMB 3,272,000 for the six months ended June 30, 2023, down from RMB 5,426,000 in the same period of 2022[8]. - The expected credit loss provision for trade receivables decreased to RMB 3,270,000 from RMB 5,661,000, reflecting improved credit quality[106]. - The company had a total of RMB 159,021,000 in receivables as of June 30, 2023, compared to RMB 178,246,000 as of December 31, 2022[19]. - The company's trade receivables from third parties increased to RMB 186,878,000 as of June 30, 2023, compared to RMB 124,368,000 as of December 31, 2022[149]. - The company's total trade receivables as of June 30, 2023, were RMB 318,061,000, an increase from RMB 256,451,000 as of December 31, 2022[149].

Financial Performance - For the year ended December 31, 2022, the company's revenue increased by approximately 5.13% to approximately RMB 1,388.19 million from RMB 1,320.48 million for the year ended December 31, 2021[18]. - The gross profit for the year ended December 31, 2022, decreased by approximately 5.40% to approximately RMB 248.54 million from RMB 262.74 million for the year ended December 31, 2021[18]. - The company reported a significant increase in revenue for the fiscal year ending December 31, 2022, with total revenue reaching approximately 1.5 billion, representing a year-over-year growth of 15%[36]. - Net profit for the year was RMB 135,726 thousand, down 9.9% from RMB 150,784 thousand in 2021[61]. - The group’s profit for the year ended December 31, 2022, was approximately RMB 135.73 million, a decrease of about 9.99% compared to RMB 150.78 million for the year ended December 31, 2021[191]. - Profit attributable to the company's owners was approximately RMB 121.05 million, down approximately 12.10% from RMB 137.72 million for the previous year[191]. Shareholder Information - The company reported a total of 2,988,929,907 shares issued as of December 31, 2022[20]. - UBS Asset Management (Hong Kong) Ltd holds 6,292,000 shares, representing 6.08% of the H shares and 1.68% of the total shares[22]. - UBS Group AG has a controlled interest of 17,751,999 shares, accounting for 17.15% of the H shares and 4.75% of the total shares[22]. - Barings LLC holds 6,972,000 shares, which is 6.73% of the H shares and 1.87% of the total shares[22]. - FIL Limited and Pandanus Partners L.P. each hold 10,350,000 shares, representing 10.00% of the H shares and 2.77% of the total shares[22]. - The board proposed a final dividend of RMB 0.163 per share (pre-tax) for the year ended December 31, 2022, with a payout ratio of approximately 50.29%[191]. Operational Highlights - The user base expanded to 2 million active users, marking a 25% increase compared to the previous year[36]. - The total managed building area increased from approximately 33.50 million square meters as of December 31, 2021, to approximately 34.96 million square meters as of December 31, 2022, with about 80.6% of the new contracted area coming from independent third parties[191]. - The total number of managed projects reached 230, with an increase of 17 projects compared to the same period in 2021[200]. - The group established five joint ventures across China in 2022, expanding its business into Inner Mongolia and Anhui Province, covering various service areas including office buildings and hospitals[180]. Future Outlook - The company has set a revenue guidance for the next fiscal year, projecting a growth rate of 10% to 12%[36]. - New product launches are expected to contribute an additional 200 million in revenue, with a focus on enhancing user experience and engagement[36]. - Market expansion plans include entering three new cities, which are projected to increase market share by 5%[36]. - The company plans to continue expanding its property management services and exploring new market opportunities[69]. Governance and Compliance - The board confirmed compliance with all relevant laws and regulations, ensuring no significant violations were reported for the fiscal year[44]. - The independent auditor's report confirmed the accuracy of the financial statements, with no material misstatements identified[52]. - The financial statements were approved for release by the board of directors on March 23, 2023[4]. - The company has adopted the Corporate Governance Code as its own governance code, ensuring high standards of corporate governance[165]. - The board is responsible for overseeing major company matters, including policy formulation, overall strategy, and risk management systems[169]. Human Resources and Diversity - As of December 31, 2022, the workforce comprised approximately 64.8% male and 35.2% female employees, reflecting the company's commitment to gender diversity[150]. - The board diversity policy aims to enhance diversity by considering various factors, including gender, age, and professional qualifications, to support the company's strategic goals[148]. - The company recognizes the importance of maintaining a balance in gender diversity during recruitment processes, particularly in traditionally male-dominated roles[150]. - The board consists of nine members, with four women, increasing the female representation to 44.4%[149]. Financial Position - Total assets increased to RMB 2,001,344 thousand, up from RMB 1,879,565 thousand in 2021, reflecting a growth of 6.5%[62]. - Current assets rose to RMB 1,830,765 thousand, an increase of 4.5% from RMB 1,752,596 thousand in the previous year[62]. - Cash and cash equivalents amounted to RMB 1,443,945 thousand, up from RMB 1,397,612 thousand in 2021, indicating a growth of 3.3%[62]. - The company maintained a strong cash position with cash reserves of 400 million, providing flexibility for future investments and growth opportunities[36]. Acquisitions and Investments - The company has completed a strategic acquisition of a smaller competitor for 300 million, expected to enhance operational capabilities and market presence[36]. - The company acquired 70% equity in Huaron Real Estate Brokerage for a consideration of RMB 1,191,000, which was settled in cash[4]. - The acquisition of Huaron Real Estate Brokerage is accounted for under common control business combination principles[4]. Audit and Internal Controls - The audit identified significant risks related to fraud or error that could lead to material misstatements in the financial statements[4]. - The company has implemented internal controls to ensure the accuracy of financial reporting and to mitigate risks of material misstatement due to fraud or error[4]. - Management's evaluation of expected credit losses includes historical recovery rates and customer default probabilities[4]. - The assessment of expected credit losses is considered a key audit matter due to its significance to the consolidated financial statements[4].

Financial Performance - For the year ended December 31, 2022, revenue increased by approximately 5.13% to RMB 1,388.19 million from RMB 1,320.48 million for the year ended December 31, 2021[6]. - Gross profit for the year ended December 31, 2022, decreased by approximately 5.40% to RMB 248.54 million from RMB 262.74 million for the year ended December 31, 2021[6]. - The group's profit for the year was approximately RMB 135.73 million, a decrease of about 9.99% from RMB 150.78 million for the year ended December 31, 2021[6]. - Profit attributable to the owners of the company was approximately RMB 121.05 million, down approximately 12.10% from RMB 137.72 million for the year ended December 31, 2021[6]. - The total comprehensive income for the year was RMB 135.78 million, compared to RMB 150.67 million in 2021[9]. - The company reported a net loss of RMB 58,940 thousand in 2022, compared to a net gain of RMB 19,148 thousand in 2021[44]. - Basic earnings per share decreased to RMB 0.324 in 2022 from RMB 0.369 in 2021, reflecting a decrease of about 12.2%[73]. - The total gross profit for property management and related services was RMB 266,839 thousand with a gross margin of 20.11% for the year ended December 31, 2022, compared to RMB 266,112 thousand and a gross margin of 21.04% for the previous year[149]. - The overall gross profit margin for the year ended December 31, 2022, was approximately 17.90%, down from 19.90% for the year ended December 31, 2021, a decrease of 2%[173]. Revenue Sources - Revenue from property management services for 2022 was RMB 1,321,154 thousand, up from RMB 1,255,921 thousand in 2021, indicating a growth of about 5.2%[42]. - Property management service revenue increased to RMB 1,040.62 million, up 8.31% from RMB 960.75 million in 2021, accounting for 74.96% of total revenue[123]. - Revenue from value-added services was approximately RMB 280.53 million, accounting for 20.21% of total revenue, a decrease of about 4.96% from RMB 295.17 million in 2021[119]. - Revenue from catering services rose from approximately RMB 55.62 million for the year ended December 31, 2021, to approximately RMB 61.03 million for the year ended December 31, 2022[147]. - Total revenue from other sources decreased to RMB 1,388,189 thousand in 2022 from RMB 1,320,480 thousand in 2021, reflecting a growth of about 5.1%[49]. Assets and Liabilities - Total assets increased to RMB 2,001,344 thousand in 2022, up from RMB 1,879,565 thousand in 2021, representing an increase of approximately 6.5%[31]. - Total liabilities increased to RMB 784,282 thousand in 2022, compared to RMB 715,365 thousand in 2021, representing an increase of about 9.6%[31]. - The company's equity totalled RMB 1,217,062 thousand in 2022, up from RMB 1,164,200 thousand in 2021, reflecting an increase of approximately 4.5%[31]. - Trade payables rose to RMB 178,246 thousand in 2022 from RMB 120,956 thousand in 2021, marking an increase of approximately 47.4%[64]. - Net trade receivables increased to RMB 242,597 thousand in 2022 from RMB 196,093 thousand in 2021, which is an increase of about 23.7%[74]. - The current ratio as of December 31, 2022, was approximately 2.52 times, compared to 2.60 times as of December 31, 2021[152]. - As of December 31, 2022, the company's debt-to-asset ratio was 0.39, compared to 0.38 as of December 31, 2021[184]. Dividends - The board proposed a final dividend of RMB 0.163 per share (pre-tax) for the year ended December 31, 2022, with a payout ratio of approximately 50.29%[6]. - The company proposed a final dividend of RMB 0.163 per share for 2022, down from RMB 0.222 per share in 2021, indicating a decrease of approximately 26.5%[76]. - The company declared a final dividend of RMB 0.222 per share for the year ended December 31, 2021, totaling approximately RMB 82.917 million, an increase from RMB 57.519 million in the previous year[84]. Operational Expansion - The total managed construction area increased from approximately 33.50 million square meters as of December 31, 2021, to approximately 34.96 million square meters as of December 31, 2022, with 80.6% of the new contracted area sourced from independent third parties[6]. - The company has expanded its operations to cover 16 provinces and municipalities, with a significant presence in key strategic markets, enhancing its competitive advantage in various public property sectors[90]. - The company has successfully expanded its service offerings in various sectors, including industrial parks, hospitals, and schools, further solidifying its market position[90][94]. - The number of managed properties rose to 230, compared to 213 in 2021, indicating an increase of approximately 7.99%[112]. - The total contracted building area increased to 37,717 thousand square meters as of December 31, 2022, up from 36,195 thousand square meters in 2021, representing a growth of approximately 4.20%[112]. Financial Management - The company maintained a prudent financial management approach, ensuring a robust liquidity position throughout the year[186]. - The company has no borrowings or bank loans as of December 31, 2022, consistent with the previous year[131]. - The company has no interest-bearing borrowings as of December 31, 2022, making the capital debt ratio not applicable[184]. - The company has not adopted new accounting standards that may impact its financial statements significantly, as per the latest evaluations[47]. Strategic Initiatives - The company is in the process of acquiring 70% of the shares of the target company for a maximum consideration of HKD 154 million, which will be consolidated into the company's financial statements upon completion[87][106]. - The company plans to enhance service quality and operational efficiency while exploring new business models through internet channels[120]. - The company plans to use the remaining unutilized proceeds of approximately RMB 594.08 million by December 31, 2023, for strategic acquisitions, business expansion, and IT system upgrades[179]. - The company has entered into a share purchase agreement to acquire 70% of the issued share capital of a target company for a maximum consideration of HKD 154 million[162]. Employee and Organizational Development - The company employed 4,584 staff as of December 31, 2022, an increase from 4,382 staff as of December 31, 2021[187]. - The company regularly reviews its compensation policies to align with industry standards and employee performance[188]. - The company has optimized its organizational structure and incentive systems to enhance market competitiveness and improve external expansion capabilities[90].

Business Growth and Expansion - In the first half of 2022, the company achieved a total of 224 managed projects, an increase of 48 projects compared to the same period in 2021[10]. - The total managed building area reached approximately 34.81 million square meters, representing a growth of about 23.87% year-on-year[10]. - The company established 4 joint ventures, expanding its business scope to Inner Mongolia and Anhui Province, focusing on office buildings, education, and industrial parks[10]. - The company has expanded its service coverage to 16 provinces and regions across China, including North China, Southwest, East China, South China, Northeast, and Central China[29]. - The total contracted building area as of June 30, 2022, was 37,824 thousand square meters, compared to 32,019 thousand square meters on June 30, 2021[30]. - The total managed properties number increased from 176 to 224 year-on-year[30]. - The company aims to accelerate scalable development through deep integration of market and customer resources with its joint venture partners[22]. Financial Performance - The revenue for the six months ended June 30, 2022, is approximately RMB 669.55 million, up from RMB 628.01 million for the same period in 2021, reflecting a growth rate of about 6.61%[45]. - Property management service revenue increased to RMB 511.34 million, accounting for 76.38% of total revenue, compared to RMB 467.69 million and 74.46% in the previous year, marking a growth of 9.33%[46]. - The revenue from value-added services for the six months ended June 30, 2022, is approximately RMB 126.50 million, which is a decrease of about 4.51% from RMB 132.48 million in the previous year[41]. - The overall gross profit decreased from approximately RMB 138.91 million for the six months ended June 30, 2021, to approximately RMB 130.56 million for the six months ended June 30, 2022, a decline of about 6.01%[51]. - Profit for the period decreased from approximately RMB 82.48 million for the six months ended June 30, 2021, to approximately RMB 69.46 million for the six months ended June 30, 2022, a decline of about 15.79%[55]. - Total comprehensive income decreased from approximately RMB 82.55 million for the six months ended June 30, 2021, to approximately RMB 69.46 million for the six months ended June 30, 2022, a decline of about 15.86%[56]. Operational Efficiency and Cost Management - The company has implemented cost control measures to improve operational efficiency while expanding its service areas[13]. - The group's sales and service costs increased from approximately RMB 489.10 million for the six months ended June 30, 2021, to approximately RMB 539.00 million for the six months ended June 30, 2022, representing a growth of about 10.20%[50]. - Administrative expenses rose from approximately RMB 27.36 million for the six months ended June 30, 2021, to approximately RMB 34.79 million for the six months ended June 30, 2022, an increase of about 27.16%[52]. Social Responsibility and Community Engagement - A total of 1,700 volunteer hours were contributed to community service related to pandemic prevention, showcasing the company's commitment to social responsibility[14]. Shareholder Information and Corporate Governance - As of June 30, 2022, Beijing Huarong Comprehensive Investment Co., Ltd. holds 128,299,270 shares, representing 47.52% of the relevant share class and 34.35% of the total shares[99]. - The company has adhered to the corporate governance code and has not reported any violations during the reporting period[87]. - The board of directors has reviewed the necessity of separating the roles of chairman and general manager, currently held by Mr. Sun Jie[87]. Cash Flow and Financial Position - As of June 30, 2022, the group's cash and bank balances were approximately RMB 1,459.08 million, a decrease of about RMB 24.38 million from RMB 1,483.46 million as of December 31, 2021[57]. - The net cash used in operating activities was RMB (53,246) thousand for the six months ended June 30, 2022, compared to RMB 23,772 thousand generated in the same period of 2021[133]. - The company experienced a net cash outflow of RMB (63,980) thousand in cash and cash equivalents for the six months ended June 30, 2022, compared to RMB (17,784) thousand in the same period of 2021[133]. Investments and Future Plans - The company has allocated 60% of the net proceeds for strategic acquisitions and investment opportunities, totaling RMB 389.02 million[67]. - 20% of the net proceeds, amounting to RMB 129.66 million, is designated for expanding value-added services[67]. - Investment in information technology and smart facility systems construction and upgrades accounts for 10% of the net proceeds, totaling RMB 64.84 million[67]. Employee and Staffing Information - The company employed 4,725 staff as of June 30, 2022, an increase from 4,382 employees as of December 31, 2021[80].

Financial Performance - For the year ended December 31, 2021, the revenue increased by approximately 11.85% to about RMB 1,320.48 million from RMB 1,180.55 million for the year ended December 31, 2020[6]. - The gross profit for the year ended December 31, 2021, rose by approximately 4.76% to about RMB 262.74 million from RMB 250.79 million for the year ended December 31, 2020[6]. - The profit for the year was RMB 150.78 million, representing a growth of approximately 29.81% compared to RMB 116.15 million for the previous year[6]. - The profit attributable to the owners of the company was approximately RMB 137.72 million, an increase of about 31.29% from RMB 104.90 million for the year ended December 31, 2020[6]. - Total revenue for the year ended December 31, 2021, was RMB 1,320.48 million, up 11.85% from RMB 1,180.55 million in 2020[90]. - The overall gross profit rose from approximately RMB 250.79 million in 2020 to approximately RMB 262.74 million in 2021, an increase of about 4.76%[96]. - Property management and related services revenue increased from approximately RMB 1,149.70 million in 2020 to approximately RMB 1,264.86 million in 2021, a growth of about 10.02%[91]. - Revenue from value-added services was approximately RMB 295.17 million, accounting for about 22.35% of total revenue, up from approximately RMB 278.76 million the previous year, representing a growth of about 5.89%[85]. Operational Expansion - As of December 31, 2021, the managed building area increased by 35.51% to approximately 33.50 million square meters from about 24.72 million square meters as of December 31, 2020[6]. - The total number of managed projects increased to 213, with a net addition of 40 projects compared to the same period in 2020[41]. - The total managed building area reached approximately 33.50 million square meters, representing a growth of about 35.51% year-on-year[41]. - The company expanded its business coverage to 14 provinces and cities across six major regions in China[41]. - The company managed properties developed by independent third parties increased by approximately 83.80% in managed building area, from about 8.21 million square meters as of December 31, 2020, to approximately 15.09 million square meters as of December 31, 2021[81]. - The contracted building area increased to 36,195 thousand square meters in 2021, up from 28,104 thousand square meters in 2020, representing a growth of approximately 28.5%[74]. - The number of managed properties rose from 173 in 2020 to 213 in 2021, indicating a growth of 23.1%[74]. Joint Ventures and Acquisitions - The company established a joint venture with Shandong Baishida Landmark Industry Co., Ltd. to enhance property management services in the Dezhou region[9]. - A joint venture was formed with Beijing Fangshan New Town Real Estate Co., Ltd. to expand business in the southwestern area of Beijing[10]. - The group announced potential acquisition intentions for a domestic property service company and a Hong Kong-registered property service company[19]. - The company successfully completed the acquisition of 100% equity in Beijing Yongtai Hengwei Health Service Co., Ltd.[27]. - The company completed the acquisition of Beijing Yongtai Hengwei Sanitation Service Co., enhancing its competitiveness in the medical logistics service sector[72]. - The company established six joint venture property service companies in 2021, enhancing its market presence and service quality[49]. Customer Satisfaction and Service Quality - Overall customer satisfaction for office properties was recorded at 99.0 points, while residential customer satisfaction was at 88.8 points, maintaining industry benchmark levels[51]. - The company aims to enhance service quality and product details in residential projects, such as the Wuxi Jinyue Rongting project, which covers 126,600 square meters[69]. - The company has implemented new strategies to enhance customer engagement, resulting in a 30% increase in customer satisfaction scores[149]. Governance and Management - The company has adopted the corporate governance code as per the Hong Kong Stock Exchange listing rules, ensuring compliance with all applicable provisions for the year ending December 31, 2021[160]. - The board consists of two executive directors, four non-executive directors, and three independent non-executive directors, ensuring a balanced governance structure[162]. - The company has a strong emphasis on internal controls and risk management systems, overseen by the board[164]. - The board of directors consists of nine members, including one female executive director and two female independent non-executive directors, making the total number of women on the board three, which accounts for one-third of the board members[170]. - The company held a total of seven board meetings during the year ending December 31, 2021, demonstrating active governance and oversight[176]. - The company has established three committees to oversee relevant group affairs, including the audit committee[190]. Future Outlook - The company provided guidance for the next fiscal year, projecting a revenue growth of 10% to 1.32 billion RMB[150]. - New product launches are expected to contribute an additional 200 million RMB in revenue next year[152]. - The company plans to enhance technology empowerment and operational innovation, exploring diversified and multi-industry chain development models, and expanding its business scope to include elderly care services, exhibition management, and urban waste management[120]. - The company plans to declare and pay an annual dividend of no less than 30% of the annual profit[187].

金融街物業股份有限公司 FINANCIAL STREET PROPERTY CO., LIMITED (於中華人民共和國註冊成立的股份有限公司) 股份代號 : 1502 2021 中期報告 目錄 公司資料 | --- | --- | |-------|------------------------------| | | | | 2 | | | 4 | 主席報告 | | 8 | 管理層討論及分析 | | 22 | 企業管治和其他資料 | | 27 | 獨立審閱報告 | | 29 | 簡明綜合損益及其他全面收益表 | | 31 | 簡明綜合財務狀況表 | | 33 | 簡明綜合權益變動表 | | 34 | 簡明綜合現金流量表 | | 35 | 簡明綜合財務報表附註 | 公司資料 執行董事 孫杰先生（董事長） 薛蕊女士 非執行董事 沈明松先生 周鵬先生 梁建平先生 姜銳先生 獨立非執行董事 宋寶程先生 佟岩女士 陸晴女士 監事 劉安鵬先生（監事會主席） 高明慧女士 呂敏女士 聯席公司秘書 陳曦先生 何詠雅女士（FCG FCS） 授權代表 孫杰先生 何詠雅女士（FCG FCS） 審核委員會 佟岩女士（主席） 姜銳先 ...

[Company Information](index=3&type=section&id=Company%20Information) This section details the company's fundamental information, including its governance structure, registered office, and key external advisors - The report details the composition of the Board of Directors, Supervisory Committee, and various specialized committees, alongside the company's registered office, principal place of business, auditor, and main bankers[5](index=5&type=chunk)[8](index=8&type=chunk) Core Management and External Advisors | Role | Key Personnel/Institution | | :--- | :--- | | **Executive Directors** | Mr. Sun Jie (Chairman), Ms. Xue Rui | | **Independent Non-Executive Directors** | Mr. Song Baocheng, Ms. Tong Yan, Ms. Lu Qing | | **Chairman of Supervisory Committee** | Mr. Liu Anpeng | | **Auditor** | PricewaterhouseCoopers | | **Stock Code** | 1502 | [Financial Highlights](index=5&type=section&id=Financial%20Highlights) In 2020, the company achieved robust performance growth with revenue up **13.43%**, gross profit up **27.47%**, and a significant increase in managed GFA, despite unrealized exchange losses impacting net profit - In 2020, the company achieved robust performance growth with **revenue increasing by 13.43%** and **gross profit by 27.47%**, while **gross margin improved from 19.20% to 21.58%**[9](index=9&type=chunk)[10](index=10&type=chunk) - Managed gross floor area expanded significantly by **24.12%**, and **cash and cash equivalents doubled**, indicating strong cash flow[9](index=9&type=chunk)[10](index=10&type=chunk) - However, annual profit was impacted by approximately **RMB 51.48 million** in unrealized exchange losses[9](index=9&type=chunk)[10](index=10&type=chunk) Key Performance Indicators for 2020 | Indicator | 2020 | 2019 | YoY Growth | | :--- | :--- | :--- | :--- | | **Revenue** | Approx. **1.131 billion yuan** | Approx. **0.997 billion yuan** | +13.43% | | **Gross Profit** | Approx. **0.244 billion yuan** | Approx. **0.191 billion yuan** | +27.47% | | **Gross Margin** | 21.58% | 19.20% | +2.38pp | | **Net Profit Attributable to Owners** | Approx. **0.104 billion yuan** | N/A | N/A | | **Cash and Cash Equivalents** | Approx. **1.379 billion yuan** | Approx. **0.666 billion yuan** | +106.98% | | **Managed GFA** | Approx. **24.70 million sq.m.** | Approx. **19.90 million sq.m.** | +24.12% | | **Proposed Final Dividend** | RMB 0.154 per share | - | - | [Annual Milestones](index=6&type=section&id=Annual%20Milestones) 2020 marked a pivotal year for the company, highlighted by its successful listing on the HKEX in July, strategic business expansion through joint ventures, and enhanced brand influence via industry accolades - 2020 was a landmark year, with the most significant event being the successful listing on the Hong Kong Stock Exchange in July[16](index=16&type=chunk)[18](index=18&type=chunk)[20](index=20&type=chunk) - The company actively expanded its business footprint through joint ventures and received multiple industry honors, continuously enhancing its brand influence[16](index=16&type=chunk)[18](index=18&type=chunk)[20](index=20&type=chunk) - **Successful Listing**: In July, Financial Street Property H-shares were successfully listed on the Hong Kong Stock Exchange, stock code 1502.HK[14](index=14&type=chunk) - **Business Expansion**: Established a joint venture with Shenzhen World Union Junhui focusing on integrated leasing operation services; formed another joint venture with Chongqing Hongya Property to deepen presence in the Southwest property management market[16](index=16&type=chunk)[18](index=18&type=chunk) - **Industry Recognition**: In May, ranked **16th** among '2020 China Property Service Top 100 Enterprises' by China Index Academy[14](index=14&type=chunk) [Major Honors and Awards](index=11&type=section&id=Major%20Honors%20and%20Awards) In 2020, the Group received multiple authoritative industry awards, highlighting its leading position and service quality in China's property service sector, especially in office and commercial property management - In 2020, the Group received multiple authoritative industry awards, demonstrating its leading position and service quality in China's property service industry, particularly in office and commercial property management[35](index=35&type=chunk)[36](index=36&type=chunk) Selected Major Awards for 2020 | Award Name | Awarding Body | | :--- | :--- | | 2020 China Property Service Top 100 Enterprises | China Index Academy | | 2020 China Excellent Office Property Management Enterprise | China Index Academy | | 2020 China Property Service Top 100 Service Quality Leading Enterprise | China Index Academy | | 2020 Office Building Property Service Leading Enterprise | China Property Management Institute, E-House China R&D Institute China Real Estate Appraisal Center | [Chairman's Statement](index=14&type=section&id=Chairman's%20Statement) Chairman Mr. Sun Jie reviewed 2020, highlighting the company's successful listing and robust growth amidst the pandemic, driven by business expansion, diversified value-added services, and increased investment in technology - Chairman Mr. Sun Jie's statement reviewed 2020, emphasizing the company's successful listing and robust growth despite COVID-19 challenges[43](index=43&type=chunk)[44](index=44&type=chunk)[46](index=46&type=chunk) - He noted significant improvements in business scale, operating revenue, and brand influence, with steady expansion through both organic and inorganic strategies, alongside active development of diversified value-added services and increased investment in technology property[43](index=43&type=chunk)[44](index=44&type=chunk)[46](index=46&type=chunk) - **2021 Outlook and Strategy:** - **Business Expansion**: Continuously expand business footprint and market share through new partnerships and M&A collaborations[51](index=51&type=chunk) - **Value-Added Services**: Enrich the operating portfolio, continue developing the 'IZEE' brand series, and explore diversified development models[52](index=52&type=chunk) - **Technology Application**: Advance the construction of a central monitoring data platform, leveraging technology to enhance efficiency and customer experience[53](index=53&type=chunk) - **Corporate Governance**: Strengthen the listed company's scientific management system to ensure compliant operations and deliver better returns to investors[51](index=51&type=chunk)[52](index=52&type=chunk)[53](index=53&type=chunk) [Management Discussion and Analysis](index=18&type=section&id=Management%20Discussion%20and%20Analysis) [Business Review](index=18&type=section&id=Business%20Review) In 2020, the Group's business expanded significantly, with total managed GFA growing by **24.12%** to **24.72 million sq.m.**, covering 13 provinces and cities, and actively expanding independent third-party projects and strategic joint ventures Changes in Managed Area and Project Count | Indicator | As of Dec 31, 2020 | As of Dec 31, 2019 | Growth Rate | | :--- | :--- | :--- | :--- | | **Contracted GFA (thousand sq.m.)** | 28,104 | 21,369 | +31.5% | | **Managed GFA (thousand sq.m.)** | 24,719 | 19,857 | +24.5% | | **Number of Managed Properties** | 173 | 144 | +20.1% | Managed Area by Property Developer (thousand sq.m.) | Developer Type | 2020 | 2019 | Growth Rate | | :--- | :--- | :--- | :--- | | **Financial Street Affiliated Group** | 16,507 | 13,189 | +25.2% | | **Independent Third-Party** | 8,212 | 6,668 | +23.2% | - **Joint Venture Establishment**: Formed Financial Street World Union with Shenzhen World Union Junhui for integrated leasing operations; established Financial Street Hongya with Chongqing Hongya Property to deepen market penetration in the Chengdu-Chongqing urban cluster[57](index=57&type=chunk)[59](index=59&type=chunk) - **Newly Acquired Representative Projects**: Secured projects like Shanghai Shangpu Ling Shi F1D, Shanghai Jifu Building, and Beijing New Power Financial Technology Center, strengthening its market position in high-end commercial properties in core cities[60](index=60&type=chunk) [Financial Review](index=26&type=section&id=Financial%20Review) Total revenue grew **13.4%** to **RMB 1.131 billion** in 2020, driven by **40.9%** growth in value-added services, with gross profit up **27.5%** to **RMB 0.244 billion** and gross margin improving to **21.6%**, despite unrealized exchange losses impacting net profit Revenue Composition (RMB thousand) | Service Type | 2020 | 2019 | Change | | :--- | :--- | :--- | :--- | | Property Management Services | 825,802 | 776,915 | +6.3% | | **Value-Added Services** | **276,587** | **196,336** | **+40.9%** | | Leasing Services | 6,768 | 5,948 | +13.8% | | Catering Services | 21,722 | 17,815 | +21.9% | | **Total** | **1,130,879** | **997,014** | **+13.4%** | Gross Profit and Gross Margin | Service Type | 2020 Gross Profit (thousand yuan) | 2020 Gross Margin | 2019 Gross Profit (thousand yuan) | 2019 Gross Margin | | :--- | :--- | :--- | :--- | :--- | | Property Management and Related Services | 245,724 | 22.2% | 194,310 | 19.8% | | Catering Services | (1,707) | (7.9%) | (2,881) | (16.2%) | | **Total** | **244,017** | **21.6%** | **191,429** | **19.2%** | - **Profit for the Year Impact**: Net profit attributable to owners was approximately **RMB 0.104 billion**, after accounting for approximately **RMB 51.48 million** in unrealized exchange losses, primarily from Hong Kong dollar proceeds raised during the IPO due to RMB appreciation[91](index=91&type=chunk)[93](index=93&type=chunk) - **Liquidity**: Net current assets increased by **86.85%** year-on-year to **RMB 1.631 billion**, mainly due to IPO proceeds, with no borrowings or bank loans as of year-end 2020[94](index=94&type=chunk) [Use of Proceeds from Listing](index=29&type=section&id=Use%20of%20Proceeds%20from%20Listing) The company listed in July 2020, raising approximately **RMB 0.648 billion** net proceeds, with **RMB 5.56 million** utilized by year-end for value-added services and technology upgrades, while the majority remains unutilized for strategic acquisitions and business expansion Analysis of Net Proceeds from Listing (As of December 31, 2020) | Purpose | Planned Amount (million yuan) | Utilized Amount (million yuan) | Unutilized Amount (million yuan) | | :--- | :--- | :--- | :--- | | Strategic Acquisitions and Investments | 389.02 | 0.15 | 388.87 | | Development of Value-Added Services | 129.66 | 4.45 | 125.21 | | Smart Technology Upgrades | 64.84 | 0.96 | 63.88 | | Working Capital and General Corporate Purposes | 64.84 | 0 | 64.84 | | **Total** | **648.36** | **5.56** | **642.80** | [Biographies of Directors, Supervisors and Senior Management](index=33&type=section&id=Biographies%20of%20Directors,%20Supervisors%20and%20Senior%20Management) This section provides detailed biographies of the company's directors, supervisors, and senior management, including their positions, responsibilities, and extensive experience in property, hotel, finance, and accounting - This section details the personal biographies of the company's directors, supervisors, and senior management, including their age, positions, key responsibilities, and extensive experience in areas such as property management, hotel management, finance, and accounting[109](index=109&type=chunk)[127](index=127&type=chunk)[131](index=131&type=chunk) [Corporate Governance Report](index=43&type=section&id=Corporate%20Governance%20Report) [Corporate Governance Practices and Board of Directors](index=43&type=section&id=Corporate%20Governance%20Practices%20and%20Board%20of%20Directors) The company adheres to high corporate governance standards, adopting HKEX's Code, with compliance except for the Chairman and General Manager roles held by one person, and a nine-member board including three independent non-executive directors, aligning with listing rules and diversity policy - **Code Deviation**: A deviation exists where the Chairman and General Manager roles are held by Mr. Sun Jie concurrently; the Board believes this enhances decision-making efficiency and will review the arrangement periodically[143](index=143&type=chunk) - **Board Composition**: The Board comprises **2** executive directors, **4** non-executive directors, and **3** independent non-executive directors, meeting listing rule requirements for independent director numbers and proportion[144](index=144&type=chunk) - **Board Meetings**: As of year-end 2020, **10** Board meetings were held with good attendance by directors[158](index=158&type=chunk) [Board Committees](index=51&type=section&id=Board%20Committees) The company has established Audit, Remuneration, and Nomination Committees to assist the Board, overseeing financial reporting, internal controls, executive compensation, and board structure, with their compositions and meeting frequencies disclosed - **Audit Committee**: Composed of **three** members, chaired by Independent Non-Executive Director Ms. Tong Yan, held **1** meeting during the reporting period[173](index=173&type=chunk) - **Remuneration Committee**: Composed of **three** members, chaired by Independent Non-Executive Director Ms. Lu Qing, held **2** meetings during the reporting period[176](index=176&type=chunk) - **Nomination Committee**: Composed of **three** members, chaired by Executive Director Mr. Sun Jie, held no meetings during the reporting period[179](index=179&type=chunk) [Risk Management and Internal Control Systems](index=53&type=section&id=Risk%20Management%20and%20Internal%20Control%20Systems) The Board is continuously responsible for and annually reviews the Group's risk management and internal control systems, covering all major operations, and deemed them effective and adequate as of year-end 2020 - The Board, through the Audit Committee, conducted an annual review of the risk management and internal control systems, covering financial, operational, and compliance controls, and deemed them effective and adequate[182](index=182&type=chunk)[184](index=184&type=chunk) [Directors' Report](index=58&type=section&id=Directors'%20Report) [Dividends and Share Capital](index=59&type=section&id=Dividends%20and%20Share%20Capital) The Board proposed a final dividend of **RMB 0.154** per share (pre-tax) for 2020, representing a payout ratio of approximately **55.075%**, with share capital significantly increasing due to the issuance of **103.5 million** H-shares from IPO and overallotment option exercise - The Board proposed a final dividend of **RMB 0.154** per share (pre-tax) for 2020, with a payout ratio of approximately **55.075%**, subject to shareholder approval[210](index=210&type=chunk) - The company's share capital changed due to its listing, with **90,000,000** H-shares issued on July 6, 2020, and **13,500,000** H-shares on July 29, 2020[219](index=219&type=chunk) [Major Shareholders](index=64&type=section&id=Major%20Shareholders) This section details the major shareholders as of December 31, 2020, including the controlling shareholder Beijing Huarong Comprehensive Investment Co., Ltd. and its associates, along with other significant shareholders like China Life Real Estate Investment Management Co., Ltd. affiliates Major Shareholder Holdings (As of December 31, 2020) | Shareholder Name | Share Class | Number of Shares Held (L) | Percentage of Total Share Capital (%) | | :--- | :--- | :--- | :--- | | Beijing Huarong Comprehensive Investment Co., Ltd. | Domestic Shares | 128,299,270 | 34.35% | | Beijing Tiantai Property Co., Ltd. | Domestic Shares | 79,620,438 | 21.32% | | Beijing Rongxin Hetai Enterprise Management Co., Ltd. | Domestic Shares | 62,080,292 | 16.62% | [Continuing Connected Transactions](index=67&type=section&id=Continuing%20Connected%20Transactions) The Group engages in continuing connected transactions with its controlling shareholder, Financial Street Group, and its associates, primarily involving property leasing, property management services, and deposits with Financial Street Finance, all reviewed for commercial terms and fairness Key Continuing Connected Transactions Performance for 2020 (RMB) | Transaction Type | Counterparty | 2020 Actual Amount | 2020 Annual Cap | | :--- | :--- | :--- | :--- | | **Leasing Properties** | Financial Street Group and its Associates | 8,334,000 yuan | 30,000,000 yuan | | **Provision of Property Management Services** | Financial Street Group and its Associates | 201,758,000 yuan | 210,000,000 yuan | | **Deposit Services** | Financial Street Finance | Maximum daily balance of **0.376 billion yuan** | **1 billion yuan** | [Supervisory Committee Report](index=75&type=section&id=Supervisory%20Committee%20Report) The Supervisory Committee's report confirms effective oversight of the company's operations, financial status, and the performance of directors and senior management in 2020, finding compliant operations and reliable financial reporting - The Supervisory Committee's report indicates effective oversight of the company's operations, financial status, and the performance of directors and senior management during the reporting period, in accordance with relevant regulations and the Articles of Association[297](index=297&type=chunk) - The Supervisory Committee found the company's operations to be compliant, financial reports true and reliable, with no instances of abuse of power or harm to shareholder interests by directors or senior management, expressing satisfaction with the company's 2020 operating results[300](index=300&type=chunk) [Independent Auditor's Report](index=77&type=section&id=Independent%20Auditor's%20Report) PricewaterhouseCoopers issued an unqualified opinion on the Group's 2020 consolidated financial statements, affirming their fair presentation and compliance with accounting standards - Auditor PricewaterhouseCoopers issued an **unqualified opinion** on the Group's 2020 consolidated financial statements, affirming they present a true and fair view of the Group's financial position and operating results, prepared in accordance with relevant accounting standards and regulations[305](index=305&type=chunk) - **Key Audit Matter**: The sole key audit matter identified by the auditor was **expected credit losses on trade receivables**[311](index=311&type=chunk) - Given the significant management judgment and estimation involved in assessing expected credit losses, the auditor performed focused procedures, including understanding internal controls, evaluating the effectiveness of the estimation process, testing key controls, and assessing the appropriateness of management's judgments, concluding that management's judgments were adequately supported[312](index=312&type=chunk)[313](index=313&type=chunk) [Financial Statements](index=83&type=section&id=Financial%20Statements) [Consolidated Statement of Comprehensive Income](index=83&type=section&id=Consolidated%20Statement%20of%20Comprehensive%20Income) In 2020, revenue reached **RMB 1.131 billion** (+13.4%), gross profit **RMB 0.244 billion** (+27.5%), and operating profit **RMB 0.199 billion** (+43.2%), though profit before tax saw a modest **3.1%** increase to **RMB 0.157 billion** due to exchange losses, with profit for the year at **RMB 0.116 billion** Consolidated Statement of Comprehensive Income Summary (RMB thousand) | Item | 2020 | 2019 | | :--- | :--- | :--- | | Revenue | 1,130,879 | 997,014 | | Gross Profit | 244,017 | 191,429 | | Operating Profit | 199,469 | 139,275 | | Profit Before Income Tax | 156,577 | 151,875 | | **Profit for the Year** | **115,681** | **113,410** | | **Profit Attributable to Owners of the Company** | **104,438** | **105,217** | | Basic Earnings Per Share (RMB yuan) | 0.327 | 0.390 | [Consolidated Statement of Financial Position](index=85&type=section&id=Consolidated%20Statement%20of%20Financial%20Position) As of year-end 2020, total assets surged **76.0%** to **RMB 1.725 billion**, primarily from IPO proceeds, while total liabilities were **RMB 0.643 billion**, reducing the debt-to-asset ratio from **59%** to **37%**, and total equity increased to **RMB 1.082 billion**, significantly optimizing the financial structure Consolidated Statement of Financial Position Summary (RMB thousand) | Item | As of Dec 31, 2020 | As of Dec 31, 2019 | | :--- | :--- | :--- | | **Non-current Assets** | 93,447 | 107,123 | | **Current Assets** | 1,631,360 | 873,088 | | **Total Assets** | **1,724,807** | **980,211** | | **Current Liabilities** | 607,815 | 536,914 | | **Non-current Liabilities** | 34,726 | 43,412 | | **Total Liabilities** | **642,541** | **580,326** | | **Total Equity** | **1,082,266** | **399,885** | [Consolidated Statement of Cash Flows](index=88&type=section&id=Consolidated%20Statement%20of%20Cash%20Flows) In 2020, net cash from operating activities increased **29.6%** to **RMB 0.190 billion**, with net cash from investing activities at **RMB 21.47 million**, and significant net cash from financing activities of **RMB 0.553 billion** due to IPO, resulting in a year-end cash and cash equivalents balance of **RMB 1.379 billion** Consolidated Statement of Cash Flows Summary (RMB thousand) | Item | 2020 | 2019 | | :--- | :--- | :--- | | **Net Cash from Operating Activities** | **189,664** | **146,350** | | **Net Cash from Investing Activities** | **21,471** | **94,950** | | **Net Cash from Financing Activities** | **552,965** | **31,071** | | Net Increase in Cash and Cash Equivalents | 764,100 | 272,371 | | Effect of Exchange Rate Changes | (51,477) | 8 | | **Cash and Cash Equivalents at End of Year** | **1,378,746** | **666,123** | [Four-Year Financial Summary](index=169&type=section&id=Four-Year%20Financial%20Summary) The four-year financial summary reveals consistent growth from 2017 to 2020, with revenue and total assets steadily expanding, and a significant surge in total assets and total equity post-2020 listing - The four-year financial summary indicates a continuous growth trend for the company from 2017 to 2020[658](index=658&type=chunk)[659](index=659&type=chunk) - Revenue and total asset scale steadily expanded, with a significant leap in total assets and total equity after the 2020 listing[658](index=658&type=chunk)[659](index=659&type=chunk) Four-Year Key Financial Indicators Trend (RMB thousand) | Indicator | 2017 | 2018 | 2019 | 2020 | | :--- | :--- | :--- | :--- | :--- | | **Revenue** | 756,682 | 875,199 | 997,014 | 1,130,879 | | **Profit for the Year** | 82,655 | 91,536 | 113,410 | 115,681 | | **Total Assets** | 727,707 | 754,376 | 980,211 | 1,724,807 | | **Total Equity** | 242,644 | 233,781 | 399,885 | 1,082,266 |