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，並明確表示概不就 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。 Zhong Ao Home Group Limited 中 奧 到 家 集 團 有 限 公 司 （於開曼群島註冊成立的有限公司） （股份代號：1538） 截 至2022年12月31日 止 年 度 全 年 業 績 公 告 財務摘要 • 截至2022年12月31日止年度，收益約為人民幣1,702.4百萬元，較2021 年減少9.1%。 • 截 至2022年12月31日 止 年 度，毛 利 約 為 人 民 幣357.4百 萬 元，較2021 年下降17.4%。 • 截 至2022年12月31日 止 年 度，年 內 溢 利 約 為 人 民 幣89.1百 萬 元，較 2021年下降32.6%。 • 截至2022年12月31日止年度，每股基本盈利為人民幣0.09分，較2021 年下降27.4%。 ...

Financial Performance - Revenue for the six months ended June 30, 2022, was RMB 821,183,000, a decrease of 11.9% compared to RMB 931,704,000 in 2021[10] - Gross profit for the same period was RMB 195,335,000, down 19.6% from RMB 242,942,000 in 2021[10] - Net profit decreased by 19.9% to RMB 66,383,000 from RMB 82,831,000 in the previous year[10] - Profit attributable to owners of the parent was RMB 60,822,000, reflecting an 11.8% decline from RMB 68,978,000 in 2021[10] - Gross profit margin decreased to 23.8%, down 2.3 percentage points from 26.1% in 2021[10] - Net profit margin for the period was 8.1%, a decrease of 0.8 percentage points from 8.9% in 2021[10] - Basic and diluted earnings per share for the period was RMB 0.071, down 12.3% from RMB 0.081 in the previous year[10] - Profit for the period was RMB 66,383, a decrease of 20% from RMB 82,831 in the previous year[22] - Total comprehensive income for the period was RMB 66,383, compared to RMB 83,352 in 2021, reflecting a decline of 20.3%[22] Assets and Liabilities - Non-current assets totaled RMB 697,629 as of June 30, 2022, down from RMB 775,187 at the end of 2021[25] - Current assets amounted to RMB 1,293,729, a decrease from RMB 1,412,296 at the end of 2021[25] - Total current liabilities were RMB 993,531, down from RMB 1,106,323 at the end of 2021[25] - Total assets less current liabilities as of June 30, 2022, were RMB 997,827,000, a decrease from RMB 1,081,160,000 as of December 31, 2021, representing a decline of approximately 7.7%[26] - Non-current liabilities totaled RMB 29,280,000 as of June 30, 2022, down from RMB 98,055,000 as of December 31, 2021, indicating a significant reduction of about 70.2%[26] - Net assets as of June 30, 2022, were RMB 968,547,000, compared to RMB 983,105,000 as of December 31, 2021, reflecting a decrease of approximately 1.5%[26] - Equity attributable to owners of the parent was RMB 900,505,000 as of June 30, 2022, slightly up from RMB 899,255,000 as of December 31, 2021, showing a marginal increase of about 0.14%[26] - Reserves increased to RMB 893,423,000 as of June 30, 2022, from RMB 892,173,000 as of December 31, 2021, marking a growth of approximately 0.14%[26] - Non-controlling interests decreased to RMB 68,042,000 as of June 30, 2022, from RMB 83,850,000 as of December 31, 2021, representing a decline of about 18.9%[26] Cash Flow and Investments - The net cash flows used in operating activities for the six months ended June 30, 2022, amounted to RMB 38,183,000, compared to RMB 33,363,000 in 2021, representing an increase of approximately 14.0%[184] - Net cash flows used in investing activities amounted to RMB (22,714,000) for the period[186] - Proceeds from new bank loans were RMB 53,484,000, while repayment of bank loans was RMB (20,338,000)[186] - Cash and cash equivalents at the end of the period were RMB 411,301,000, a decrease from RMB 436,464,000 at the beginning of the period[186] - The net decrease in cash and cash equivalents was RMB (25,037,000) for the period[186] - The company incurred a loss of RMB (30,000,000) from the disposal/addition of financial assets at fair value through profit or loss[186] - Total cash and cash equivalents reported in the statement of financial position was RMB 411,301,000[186] Strategic Initiatives - The company is focusing on enhancing operational efficiency and exploring new market opportunities to drive future growth[10] - There are ongoing efforts in research and development of new products and technologies to meet market demands[10] - The company is considering strategic partnerships and potential acquisitions to expand its market presence[10] Dividends and Shareholder Returns - The company declared dividends of RMB 17,889,000 during the reporting period[30] - The company paid dividends amounting to RMB 6,390,000 during the period[186]

Financial Performance - The Group's property management business revenue increased from approximately RMB1,252.3 million in 2020 to approximately RMB1,332.1 million in 2021, representing a growth of 6.4%[13]. - The profit attributable to owners of the parent for 2021 was RMB106.3 million, a decrease of 19.2% compared to RMB131.5 million in 2020, primarily due to reduced revenue from the real estate agency business[13]. - Revenue for the year ended December 31, 2021, was RMB 1,873.5 million, representing a 6.9% increase from RMB 1,752.3 million in 2020[42]. - Gross profit decreased by 2.0% to RMB 432.7 million, with a gross profit margin of 23.1%, down from 25.2% in the previous year[42]. - The Group's net profit margin decreased to 7.0%, down from 8.6% in 2020, reflecting a 1.6 percentage point decline[42]. - The Group's revenue from real estate agency services decreased by approximately RMB 72.4 million, while other businesses saw an increase of approximately RMB 47.7 million[121]. Dividends - The Group plans to pay a final dividend of HK2.50 cents per share for the year ended 31 December 2021, totaling approximately HK$21.3 million[14]. - The board proposed a final dividend of HKD 0.025 per share for the year ended December 31, 2021, down from HKD 0.030 per share in 2020, with a total dividend payout of approximately HKD 21.3 million[17]. - The final dividend per share for 2021 was HK$0.025, a decrease of 16.7% from HK$0.030 in 2020[42]. Business Expansion and Strategy - The Group aims to expand its business scope in China through acquisitions of property management companies and other value-adding service companies[32]. - The company plans to penetrate into first-hand and second-hand agency services while advancing the downstream sector by acquiring firms specialized in living value-adding services[33]. - The Group aims to continue expanding its business and improving service quality to enhance shareholder returns in the long term[39]. - The Group aims to enhance profitability through the acquisition of a 49% stake in Guangdong Huari Environmental Engineering Co., which is expected to provide synergistic effects and value-added cleaning services[73]. - The Group continues to identify suitable acquisition targets to strengthen its portfolio and expand its geographic presence across China[80]. Awards and Recognition - The Group received several awards in 2021, including recognition from the Guangzhou City Property Management Industry Association[15]. - The group received multiple awards in 2021, including recognition as one of the Top 100 Property Management Service Providers in China and various local awards for excellence in property management[20][24][30]. - The Group has received multiple awards, including recognition as a comprehensive strength enterprise in property services in Guangdong Province for 2021[74]. Operational Metrics - As of December 31, 2021, the group managed a total of 637 residential and non-residential properties with an aggregate contracted Gross Floor Area (GFA) of 72.3 million square meters, remaining stable compared to 72.0 million square meters in 2020[31]. - The delivered GFA in 2021 was 66.1 million square meters, similar to 65.6 million square meters as of December 31, 2020[31]. - The number of properties managed by the Group increased from 613 at the beginning of the year to 637 at the end of the year, with new engagements totaling 3,522[103]. - The total GFA managed by the Group at the end of 2021 was 72,283 sq.m., up from 72,014 sq.m. at the end of 2020[103]. Financial Position - As of December 31, 2021, the Group's net working capital was approximately RMB 306.0 million, an increase of RMB 206.8 million from RMB 99.2 million as of December 31, 2020[171]. - The current ratio as of December 31, 2021, was 1.3 times, compared to 1.1 times in 2020[171]. - The Group's net cash position amounted to RMB 318.7 million as of December 31, 2021, up from RMB 251.8 million in 2020, indicating a strong financial position[180]. Employee Metrics - The Group's employee count decreased to approximately 7,528 as of December 31, 2021, down from 9,735 in 2020[185]. - The Group has implemented a stock option plan since April 2015 and a share incentive plan since June 2017 to retain elite talent and reward contributions[189]. Challenges and Risks - The prolonged Covid-19 epidemic and the impact of the real estate market in China affected the Group's performance in 2021[13]. - The Group continues to monitor foreign currency exchange exposure and will take measures to minimize currency translation risk[177].

Financial Performance - Revenue for the six months ended June 30, 2021, was RMB 931,704,000, representing an 11.0% increase from RMB 839,078,000 in 2020[9]. - Gross profit for the same period was RMB 242,942,000, up 3.9% from RMB 233,738,000 in 2020[9]. - Net profit attributable to owners of the parent was RMB 82,831,000, a 10.3% increase compared to RMB 75,111,000 in 2020[9]. - Gross profit margin decreased to 26.1%, down 1.8 percentage points from 27.9% in 2020, while net profit margin decreased to 8.9%, down 0.1 percentage points from 9.0%[9]. - Earnings per share attributable to ordinary equity holders of the parent for the period was RMB 0.081, a 6.6% increase from RMB 0.076 in 2020[9]. - Profit before tax increased to RMB 114,675,000, compared to RMB 108,119,000 in the prior year, reflecting a growth of 6.0%[20]. - Total comprehensive income for the period was RMB 83,352,000, compared to RMB 75,505,000 in the same period last year, showing an increase of 10.0%[21]. Assets and Liabilities - Current assets totaled RMB 1,597,286,000, an increase from RMB 1,200,373,000 as of December 31, 2020[24]. - Non-current assets amounted to RMB 872,552,000, slightly up from RMB 869,159,000 at the end of 2020[24]. - Total assets less current liabilities as of June 30, 2021, were RMB 995,689,000, an increase from RMB 968,369,000 as of December 31, 2020, representing a growth of approximately 2.3%[25]. - Net assets increased to RMB 966,172,000 as of June 30, 2021, compared to RMB 891,426,000 as of December 31, 2020, reflecting a growth of about 8.4%[25]. - Total liabilities as of June 30, 2021, were RMB 1,503,666,000, compared to RMB 1,178,106,000 as of December 31, 2020, indicating an increase of about 27.5%[93][97]. Cash Flow and Financing - Net cash flows used in operating activities amounted to RMB 33,363,000 for the first half of 2021, a decrease from RMB 18,468,000 in the same period of 2020[34]. - Cash and cash equivalents at the end of the period were RMB 351,354,000, down from RMB 423,039,000 at the end of June 2020, reflecting a decrease of approximately 17%[36]. - Proceeds from new bank loans were RMB 53,427,000, while repayment of bank loans was RMB 58,319,000, indicating a net cash outflow from financing activities[36]. - The company incurred finance costs of RMB 4,537,000, compared to RMB 5,060,000 in the same period of 2020, showing a decrease of approximately 10%[34]. Business Segments - The property management business generated revenue of RMB 659,116,000, accounting for approximately 70.7% of total revenue[84]. - The cleaning and greening business reported revenue of RMB 83,094,000, with a segment profit of RMB 21,465,000[84]. - The real estate agency business generated revenue of RMB 105,994,000, contributing a segment profit of RMB 39,385,000[84]. - Revenue from contracts with customers for the six months ended June 30, 2021, was RMB 931,704,000, up from RMB 839,078,000 for the same period in 2020, reflecting a growth of approximately 11%[99][106]. Strategic Initiatives - The company has plans for market expansion and new service offerings in property management and related sectors[79]. - Future outlook includes continued investment in new technologies and product development to drive growth[1]. - Strategic initiatives are in place for market expansion and potential acquisitions to strengthen competitive positioning[1].

Financial Performance - The Group's audited profit attributable to owners of the parent for 2020 was RMB131.5 million, an increase of 21.1% compared to RMB108.6 million in 2019[12] - For the year ended December 31, 2020, the Group reported revenue of RMB 1,752.3 million, an increase of 15.3% from RMB 1,519.5 million in 2019[69] - Gross profit for the year was RMB 441.6 million, representing a 9.5% increase from RMB 403.4 million in 2019[69] - Profit attributable to owners of the parent increased by 21.1% to RMB 131.5 million, compared to RMB 108.6 million in 2019[69] - The gross profit margin decreased to 25.2% from 26.6%, a decline of 1.4 percentage points[69] - The net profit margin slightly decreased to 8.6% from 8.8%, a decline of 0.2 percentage points[69] - Basic earnings per share rose to RMB 0.157, an 18.0% increase from RMB 0.133 in 2019[69] Revenue Growth - Revenue from property management business grew from approximately RMB1,138.7 million in 2019 to approximately RMB1,242.3 million in 2020, representing an increase of approximately RMB103.6 million or 9.1%[12] - Revenue from cleaning and greening business increased by approximately RMB52.0 million[12] - Revenue from real estate agency business also increased by approximately RMB52.0 million[12] - Revenue from other businesses rose by approximately RMB25.4 million, particularly from new business lines acquired during the year[12] - Revenue from property management services increased by approximately RMB103.5 million or 9.1%, from RMB1,138.7 million in 2019 to RMB1,242.3 million in 2020[168] - Revenue from the cleaning and greening business increased by approximately RMB52.0 million or 164.5%, from RMB31.6 million in 2019 to RMB83.6 million in 2020[173] - Revenue from the real estate agency business increased by approximately RMB52.0 million or 27.9%, from RMB185.9 million in 2019 to RMB237.9 million in 2020[173] - The Group's revenue from other businesses increased by approximately RMB25.4 million or 20.7%, from RMB122.9 million in 2019 to RMB148.3 million in 2020[173] Dividends - The Board recommended a final dividend of HK3.00 cents per share for the year ended 31 December 2020, up from 2.75 cents in 2019, totaling approximately HK$25.6 million[13] - The Board proposed a final dividend of HKD 0.03 per share for the year ended December 31, 2020, compared to HKD 0.0275 per share in 2019, with a total dividend amount of approximately HKD 25.6 million[17] - The final dividend per share proposed is HK$0.0300, up from HK$0.0275, reflecting a 9.1% increase[69] Acquisitions and Strategic Partnerships - The Group completed the acquisition of the remaining 7.5% interest in Zhejiang Yongcheng Property Management Company for RMB 22.5 million, resulting in Yongcheng becoming a wholly-owned subsidiary[34][38] - The Group acquired 60% equity interest in Guangdong Jindun Zhengan Security Services Company Limited for a total consideration of RMB 68.0 million[40] - The Group entered into a property transfer agreement to acquire a three-storey office building with a total gross floor area of approximately 3,672.72 square meters for RMB 46.1 million[41] - The Group acquired 51% equity interests in Guangdong Huarui Environmental Engineering Company Limited for RMB 40.0 million[42] - A cooperation agreement was established with Greentown Service Group Co. Ltd. to jointly create a life service company with registered capital of RMB 5.0 million, where the Group will own 30%[48] - The Group acquired 70% equity interests in Guangdong Xunhua Electrical Engineering Technology Company Limited for RMB 40.0 million[51] - The Group purchased 100% of equity interests in Jinan Express Service Company Limited for RMB 39.7 million, making it a wholly owned subsidiary[55] - The Group acquired 100% of equity interests in Guangzhou Nuodeng Elevator Services Company Limited for RMB 5.1 million, settling with 49% equity interest in Ningbo Yongdu[57] Operational Efficiency and Market Presence - The total revenue growth reflects the Group's strategic expansion and operational efficiency improvements[12] - The Group maintained its presence in 45 cities in China, managing a total of 613 residential and non-residential properties with an aggregate contracted Gross Floor Area (GFA) of 72.0 million square meters, unchanged from 2019[33] - The delivered GFA in 2020 was 65.6 million square meters, representing a growth of 0.3% compared to 65.4 million square meters as of December 31, 2019[33] - The Group's total number of properties under management increased to 613 as of December 31, 2020, from 584 at the end of 2019[132] - The total contracted GFA managed by the Group increased to 72,014 thousand sq.m. as of December 31, 2020, up from 71,971 thousand sq.m. at the beginning of the year[132] - The Group's non-residential properties contracted GFA was 6,913 thousand sq.m. as of December 31, 2020, down from 7,709 thousand sq.m. in 2019[124] Awards and Recognition - The Group received several awards in 2020, including the Excellent Organization Prize at the Guangzhou International Intelligent Property Exhibition[15] - The Group received multiple awards in 2020, including recognition as a leading property management company in various categories, enhancing its market reputation[23][24][32] - The Group was recognized as a leading independent property management company in China in 2020[94] Future Plans and Strategic Focus - The Group plans to expand its business scope in China through acquisitions of property management companies and value-adding service firms[60] - The Group aims to evolve into an integrated operator offering comprehensive community services by expanding both upstream and downstream in the industry chain[64] - The Group aims to strengthen its portfolio through strategic acquisitions while also focusing on organic growth from its existing customer base[113] - The Group will continue to strategically select markets with developed economies and high per capita GDP for expansion[114] - The Group aims to enhance organic growth by developing new business relationships from its existing customer base[143] - The Group will pursue properties with established owners' associations to expand its customer portfolio[143] - The Group plans to accelerate its business scale expansion in China through acquisitions and collaborations when appropriate opportunities arise[147]

Financial Performance - Revenue for the six months ended June 30, 2020, was RMB 839,078,000, representing a 28.0% increase from RMB 655,608,000 in 2019[15] - Gross profit for the same period was RMB 233,738,000, up 16.0% from RMB 201,448,000 in 2019[15] - Net profit increased by 29.0% to RMB 75,111,000 compared to RMB 58,206,000 in the previous year[15] - Profit attributable to owners of the parent rose by 20.0% to RMB 62,635,000 from RMB 52,188,000 in 2019[15] - Total comprehensive income for the period was RMB 75,505,000, compared to RMB 58,206,000 in 2019, showing an increase of approximately 29.8%[36] - Basic and diluted earnings per share for the period was RMB 0.076, an 18.8% increase from RMB 0.064 in 2019[15] - Segment profit before tax for the Group was RMB 108,119,000, compared to RMB 86,474,000 for the same period in 2019, indicating a year-over-year increase of approximately 25%[105][109] Profitability Metrics - The gross profit margin decreased to 27.9%, down 2.8 percentage points from the previous year[15] - The net profit margin slightly increased to 9.0%, up 0.1 percentage points from 8.9% in 2019[15] - Earnings per share attributable to ordinary equity holders of the parent was RMB 0.076 for the period, compared to RMB 0.052 in the previous year, marking a rise of about 46.2%[33] - Corporate expenses totaled RMB 24,802,000, which impacted the overall profitability of the Group[105] Assets and Liabilities - Total non-current assets increased to RMB 826,147,000 as of June 30, 2020, compared to RMB 751,724,000 in December 2019, reflecting a growth of approximately 9.9%[42] - Current assets totaled RMB 1,306,576,000, up from RMB 1,142,902,000 in December 2019, representing an increase of about 14.3%[42] - Total assets less current liabilities amounted to RMB 922,410,000, compared to RMB 875,415,000 in December 2019, showing an increase of around 5.4%[44] - Total liabilities as of June 30, 2020, were RMB 1,318,708,000, up from RMB 1,156,701,000 at the end of 2019, reflecting an increase of 14%[118] Cash Flow - The cash flows from operating activities for the six months ended June 30, 2020, were a net outflow of RMB 18,468,000, a decrease from a net inflow of RMB 27,506,000 in the same period of 2019[53] - The net cash flows used in investing activities amounted to RMB (26,790,000), compared to RMB (68,968,000) in the previous year, indicating a significant reduction in cash outflow by approximately 61.2%[55] - The cash flow from financing activities resulted in a net inflow of RMB 51,951,000, compared to an outflow of RMB (62,523,000) in the previous year, indicating a turnaround in financing activities[55] Business Segments - External sales in the property management business amounted to RMB 592,897,000, contributing significantly to the total revenue[105] - Revenue from property management business was RMB 592,897,000, accounting for approximately 70.7% of total revenue[124] - The real estate agency business reported external sales of RMB 154,631,000, reflecting a strong performance in the market[105] - The cleaning and greening business generated external sales of RMB 17,883,000, showing a growth from RMB 12,905,000 in the previous year[105] Compliance and Standards - The company has maintained compliance with HKAS 34 in the preparation of its interim financial information[25] - The Group did not report any significant impact on its financial position and performance due to the adoption of revised Hong Kong Financial Reporting Standards for the current period[88] - The Group's financial condition and performance remain unaffected by the revised accounting standards and amendments[90] Future Outlook - Future outlook includes continued expansion in the real estate and cleaning management sectors, leveraging existing customer contracts[184] - The company is focusing on enhancing its service offerings to external customers to drive revenue growth[170] - Market expansion strategies are being implemented to capture a larger share of the cleaning management and real estate markets[184] - The company is exploring potential mergers and acquisitions to enhance its service capabilities and market presence[184]

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Revenue Growth - Revenue for the six months ended June 30, 2019, was RMB 655,608,000, representing a 31.6% increase from RMB 498,033,000 in 2018[12] - Revenue for the six months ended June 30, 2019, was RMB 655,608,000, an increase of 31.6% from RMB 498,033,000 in the same period of 2018[24] - Total revenue for the six months ended June 30, 2019, was RMB 708,281,000, with external sales contributing RMB 547,709,000[104] - The company reported a significant increase in revenue from contracts with customers, totaling RMB 655,608,000 for the first half of 2019, compared to RMB 498,033,000 in the prior year[129] - Revenue from rendering services was RMB 648,868,000, up from RMB 492,684,000, indicating a growth of 31.8% year-over-year[124] - Total revenue from contracts with customers reached 655,608 thousand RMB, an increase from 547,709 thousand RMB[190] - Revenue from external customers was 655,608 thousand RMB, compared to 547,709 thousand RMB previously[176] Profitability - Gross profit for the same period was RMB 201,448,000, up 32.4% from RMB 152,132,000 in 2018[12] - Net profit increased to RMB 58,206,000, an 11.2% rise compared to RMB 52,340,000 in 2018[12] - Profit attributable to owners of the parent was RMB 52,188,000, reflecting a 10.8% increase from RMB 47,118,000 in 2018[12] - Profit before tax increased to RMB 86,474,000, up 13.6% from RMB 76,298,000 in the prior year[24] - Profit for the period attributable to owners of the parent was RMB 52,188,000, a rise of 10.4% from RMB 47,118,000 in 2018[24] - Profit before tax for the six months ended June 30, 2019, was RMB 86,474,000, an increase from RMB 76,298,000 in the same period of 2018, representing a growth of approximately 13.5%[35] - Segment results showed a profit of RMB 121,454,000, with the property management business generating RMB 99,940,000[104] - Segment results for the first half of 2019 totaled RMB 121,454,000, compared to RMB 95,780,000 in the same period of 2018, reflecting a year-over-year increase of 27%[117] Margins - Gross profit margin improved to 30.7%, up 0.2 percentage points from 30.5% in 2018[12] - Net profit margin decreased to 8.9%, down 1.6 percentage points from 10.5% in 2018[12] - Basic and diluted earnings per share attributable to ordinary equity holders of the parent was RMB 0.064, a 10.3% increase from RMB 0.058 in 2018[12] - Basic and diluted earnings per share for the period were RMB 0.064, compared to RMB 0.058 in the previous year[24] Assets and Liabilities - Total non-current assets as of June 30, 2019, amounted to RMB 707,511,000, an increase from RMB 519,681,000 at the end of 2018[27] - Current assets totaled RMB 1,125,447,000, up from RMB 821,538,000 at the end of 2018[27] - Total assets less current liabilities as of June 30, 2019, amounted to RMB 832,659,000, an increase from RMB 691,245,000 as of December 31, 2018, representing a growth of approximately 20.4%[10] - Net assets as of June 30, 2019, were RMB 679,578,000, up from RMB 605,950,000 as of December 31, 2018, indicating an increase of about 12.1%[10] - Total non-current liabilities increased to RMB 153,081,000 as of June 30, 2019, compared to RMB 85,295,000 as of December 31, 2018, reflecting an increase of approximately 79.5%[10] - Interest-bearing bank and other borrowings rose to RMB 87,137,000 as of June 30, 2019, compared to RMB 41,459,000 as of December 31, 2018, marking an increase of about 109.8%[10] - Total liabilities were RMB 1,153,380,000 as of June 30, 2019[108] Cash Flow - Net cash flows from operating activities for the six months ended June 30, 2019, were RMB 27,506,000, compared to a net outflow of RMB 54,177,000 in the same period of 2018[35] - Cash and cash equivalents at the end of the period were RMB 355,987,000, an increase from RMB 315,155,000 at the end of the same period in 2018[37] - The company reported a net decrease in cash and cash equivalents of RMB 2,714,000 for the six months ended June 30, 2019, compared to a decrease of RMB 59,200,000 in the same period of 2018[37] Lease Accounting - The Group adopted HKFRS 16 using the modified retrospective method with an initial application date of January 1, 2019[56] - The cumulative effect of initial adoption of HKFRS 16 will be adjusted to the opening balance of retained earnings at January 1, 2019[56] - The adoption of HKFRS 16 resulted in an increase of RMB 1,637,000 in right-of-use assets and total assets as of January 1, 2019[67] - Lease liabilities also increased by RMB 1,637,000, reflecting the same amount recognized in interest-bearing bank and other borrowings[67] - The Group recognized lease payments associated with low-value assets as an expense on a straight-line basis over the lease term[60] Business Segments - The Group primarily provides property management services to property developers and owners, focusing on residential properties, commercial buildings, and government buildings[96] - The Group's services include standard property management and ancillary services, as well as cleaning, security, and maintenance for sales centers[96] - The Group's cleaning and greening division provides indoor and outdoor environmental services, evaluated based on subcontracted services from the property management division[96] - The Group offers real estate consulting services, brokerage, marketing planning, and agency services for property ownership[96] - Other business segments include landscaping design, engineering services, and catering services[96] Future Outlook - The company plans to continue expanding its services in the Southern and Eastern regions, which have shown the highest revenue growth[118] - The company aims to enhance its market presence through strategic initiatives and potential acquisitions in the coming quarters[118] - Ongoing investments in new technologies and product development are expected to drive future revenue growth[196]

Financial Performance - The Group's audited profit attributable to owners for 2018 was RMB 96.1 million, a 6.2% increase from RMB 90.5 million in 2017[19]. - For the year ended December 31, 2018, the Group reported revenue of RMB 1,023.0 million, an increase of 4.7% from RMB 977.6 million in 2017[46]. - The gross profit for the year was RMB 282.1 million, reflecting a decrease of 5.0% compared to RMB 296.8 million in 2017, resulting in a gross profit margin of 27.6%[46]. - The profit for the year attributable to owners of the parent was RMB 96.1 million, up 6.1% from RMB 90.5 million in 2017[46]. - The final dividend per share was declared at HK$0.025, a decrease of 50.0% from HK$0.05 in 2017[46]. - The Group's total revenue for 2018 was RMB 1,023,011,000, up from RMB 977,552,000 in 2017, indicating a year-over-year growth[80]. - Revenue from property management services increased by RMB37.4 million or 4.1% over 2017, primarily due to an increase in the delivered contracted GFA by 2.3 million sq.m.[131]. - Revenue from sales assistance services decreased by RMB1.7 million or 3.9%, from RMB43.2 million in 2017 to RMB41.5 million in 2018, due to a decrease in the number of projects[140]. - Other income and gains for the year ended December 31, 2018, were RMB 30.8 million, an increase of RMB 10.2 million or 49.5% compared to RMB 20.6 million in 2017[151]. Business Expansion and Acquisitions - The Group expanded its presence to 43 cities in China, managing a total of 570 properties with an aggregate contracted GFA of 70.5 million sq.m., a 5.7% increase from 66.7 million sq.m. in 2017[27]. - The Group acquired an additional 7.5% equity interest in Zhejiang Yongcheng Property Management Company for RMB 22.5 million, increasing its ownership to 85%[28]. - In December 2018, the Group acquired 75% equity interest in Hangzhou Anjia Property Management Company for RMB 18.1 million[28]. - The Group aims to expand its geographic presence and strengthen its portfolio through strategic acquisitions[75]. - The Group plans to expand its business scope through acquisitions of property management and related service companies in China[35]. - The Group aims to enhance its competitiveness and market presence by investing in state-owned enterprises like Hangzhou Anjia and Suzhou House Construction[34]. - The Group completed further acquisitions of 15% of Zhejiang Yongcheng Property Management Company, increasing its stake to 85%[113][114]. - The Group agreed to acquire 51% equity interests in Guangxi Huihuang Property Advisory Services and Guangxi Huihuang Real Estate Advisory Services for a total consideration of RMB30.0 million in cash, with an additional payment of up to RMB70.0 million contingent on a Profit Guarantee[175]. Operational Metrics - The delivered GFA in 2018 was 56.9 million sq.m., reflecting a growth of 4.2% compared to 54.6 million sq.m. in 2017[27]. - The Group's total contracted gross floor area (GFA) reached 70.5 million square meters, an increase of 5.7% from 66.7 million square meters as of December 31, 2017[31]. - The total GFA of residential properties managed increased to 49,536 thousand sq.m. in 2018, up from 47,725 thousand sq.m. in 2017, with the number of properties managed rising from 301 to 313[92]. - New engagements in property management for 2018 totaled 8,830 thousand sq.m., with 83 new properties added, compared to 8,574 thousand sq.m. and 66 properties in 2017[99]. - The Group acquired an additional 2,140 thousand sq.m. of GFA through acquisitions in 2018, significantly up from 258 thousand sq.m. in 2017[99]. Cost and Expenses - The Group's cost of sales and services for property management and sales assistance services increased by 7.8% from RMB664.0 million in 2017 to approximately RMB715.5 million in 2018[141]. - The gross profit margin decreased from 30.4% in 2017 to 27.6% in 2018, primarily due to increased staff and subcontracting costs, as well as higher repair and maintenance expenses[148]. - Administrative expenses increased by RMB 36.0 million or 31.3% to RMB 151.1 million in 2018 from RMB 115.1 million in 2017, mainly due to increased salaries and directors' emoluments[151]. - Selling and marketing expenses decreased to RMB 5.5 million in 2018 from RMB 6.4 million in 2017, a reduction of RMB 0.9 million or 14.1%[151]. Financial Position - The Group's net cash position amounted to RMB293.7 million as at 31 December 2018, compared to RMB377.8 million in 2017, indicating a decrease of 22.3%[171]. - Total trade and bills receivables amounted to approximately RMB207.8 million as of 31 December 2018, an increase of approximately RMB16.9 million compared to RMB190.9 million in 2017[163]. - The Group's trade receivables turnover days for the year ended 31 December 2018 was 71 days, compared to 65 days in 2017[163]. - Prepayments and other receivables amounted to approximately RMB196.5 million as of 31 December 2018, an increase of approximately RMB84.2 million compared to RMB112.3 million in 2017[163]. - The current ratio as at 31 December 2018 was 1.3 times, down from 1.4 times in 2017[166]. Employee and Management - The Group had approximately 10,000 employees as at 31 December 2018, an increase from 7,300 employees in 2017, representing a growth of 37%[171]. - The Group's performance-related salary may be awarded based on internal performance evaluation, enhancing employee productivity[171]. - The Group's management will continue to monitor foreign currency exchange exposure to minimize currency translation risk[170]. Risks and Challenges - The Group's financial condition may be affected by various risks, including market, liquidity, and credit risks, particularly from fluctuations in foreign exchange rates and interest rates[185]. - The Group faces intense competition in the China residential property management industry, which may impact its ability to renew contracts and win new projects[181]. - The Group's liquidity risk management involves maintaining adequate levels of cash and cash equivalents to support operations and mitigate cash flow fluctuations[185]. - The Group's credit risk is diversified across multiple customers, primarily residents and property developers in managed communities, reducing concentration risk[185].