Company Overview and Key Highlights Company and Industry - The document discusses a company in the property management and community services industry Core Points and Arguments - In 2023, the company achieved a total revenue of 5.42 billion, representing a year-on-year growth of 4.7% [1] - The revenue from property management services grew at a robust rate of 17.5% [1] - Revenue from community value-added services experienced a growth rate of 2.3% [1] Other Important Content - The overall performance indicates that the company's core business remains resilient despite market challenges [1]

核心业务稳健，优化增值服务结构 新城悦服务（1755.HK）/物业 证券研究报告/公司点评 2024年4月2日 服务行业 [Table_Industry] [评Ta级ble：_T买itle入] （维持） [公Ta司ble盈_F利in预anc测e]及 估值 市场价格：2.25港元 指标 2022A 2023A 2024E 2025E 2026E 分析师：由子沛 营业收入（百万元） 5,187 5,481 5,804 6,094 6,277 增长率yoy% 19% 6% 6% 5% 3% 执业证书编号：S0740523020005 净利润（百万元） 423 445 500 534 561 Email：youzp@zts.com.cn 增长率yoy% -19% 5% 12% 7% 5% 每股收益（元） 0.49 0.51 0.57 0.61 0.64 每股现金流量 0.07 0.47 0.66 0.81 0.96 分析师：李垚 净资产收益率 17% 16% 16% 15% 13% 执业证书编号：S0740520110003 P/E 4.2 4.0 3.6 3.3 3.2 P/B 0.7 0.6 0.5 0.5 0. ...

2024年4月1日 公司研究 非周期业务稳健增长，派息提升股息率达 10% ——新城悦服务（1755.HK）2023 年度业绩点评 （要 点 买入（维持） 当 前价：2.25港元 事件：公司2023年营收同比+5%，归母净利润同比+5%，派息率40%。 新城悦服务发布2023年度业绩公告，收入为54亿元，同比增长4.7%，毛利为 14 亿元，同比增长 7.5%；毛利率为 26.5%，同比提升 0.7pct；归母净利润为 作者 4.5亿元，同比增长5.1%。公司宣派末期股息每股0.205元，派息率40%。 分析师：何缅南 执业证书编号：S0930518060006 点评：非周期业务稳健增长，现金流改善，分红比例提升，股息率具备吸引力。 021-52523801 1）非周期业务保持稳健增长，地产关联度降低。2023年公司更专注于居民和企 hemiannan@ebscn.com 业的刚性需求，在地产下行的大环境之下，核心业务依旧保持稳健增长，其中物 联系人：韦勇强 业管理/社区增值/开发商增值服务收入增速分别为+17.5%/+2.3%/-36.2%，收入 021-52523810 占比分别为65.5%/24.2%/ ...

Investment Rating - The report maintains a "Buy" recommendation for the company [2][5] Core Views - The company achieved a revenue of 5.42 billion RMB in 2023, representing a year-on-year growth of 4.7%, and a net profit of 0.45 billion RMB, up 5.1% year-on-year [3][4] - The property management service revenue reached 3.56 billion RMB, growing by 17.5% year-on-year, while community value-added services generated 1.31 billion RMB, increasing by 2.3% year-on-year [3][4] - The company’s gross profit margin improved slightly to 26.5%, with community value-added services showing a significant increase in gross margin to 35.7% [3][4] Financial Performance Summary - The company reported a total managed area of 220 million square meters by the end of 2023, with a net increase of 25.43 million square meters from the previous year [3][4] - Non-cyclical community value-added services generated 1.05 billion RMB in revenue, marking a 12.8% increase year-on-year, accounting for 80% of community value-added service revenue [3][4] - The company’s EPS for 2024-2025 has been revised down to 0.53 RMB and 0.55 RMB respectively, with a new EPS forecast for 2026 set at 0.57 RMB [3][4]

证券研究报告·海外公司点评·地产(HS) 新城悦服务（01755.HK） 2023 年业绩公告点评：核心业务稳健增长， 2024年 03月 29日 关联方影响持续降低 证券分析师 房诚琦 买入（维持） 执业证书：S0600522100002 fangcq@dwzq.com.cn [Table_EPS] 盈利预测与估值 2022A 2023A 2024E 2025E 2026E 证券分析师 肖畅 营业总收入（百万元） 5,180 5,424 6,088 6,781 7,505 执业证书：S0600523020003 同比 19.05% 4.72% 12.24% 11.38% 10.68% xiaoc@dwzq.com.cn 归母净利润（百万元） 423.48 445.05 492.61 540.64 590.97 证券分析师 白学松 同比 -19.41% 5.09% 10.69% 9.75% 9.31% 执业证书：S0600523050001 baixs@dwzq.com.cn EPS-最新摊薄（元/股） 0.49 0.51 0.57 0.62 0.68 P/E（现价&最新摊薄） 4.20 4.00 3.61 ...

Financial Performance - Total revenue for the year ended December 31, 2023, was RMB 5,424,284, representing a 4.7% increase from RMB 5,179,553 in 2022[2] - Gross profit for the year was RMB 1,438,478, up 7.5% from RMB 1,338,140 in 2022, with a gross margin of 26.5%[2][4] - Net profit attributable to owners of the company was RMB 445,045, a 5.1% increase from RMB 423,476 in 2022[5] - Basic and diluted earnings per share were both RMB 0.52, compared to RMB 0.50 in the previous year, reflecting a 4.0% increase[5] - The company reported a decrease in developer value-added services revenue by 36.2% to RMB 554,870 from RMB 870,070 in 2022[2] - The net financial income for the year was RMB 21,939 thousand, down from RMB 25,447 thousand in 2022, representing a decrease of approximately 13.5%[19] - The income tax expense for the year was RMB 137,727 thousand, compared to RMB 152,237 thousand in 2022, reflecting a decrease of about 9.5%[20] - The company reported a goodwill impairment of RMB 55,219 thousand, significantly higher than RMB 5,404 thousand in the previous year[18] - The total cost of sales and services for the year was RMB 4,631,528 thousand, an increase from RMB 4,414,502 thousand in 2022, representing a rise of approximately 4.9%[18] - The net profit for the year was approximately RMB 507.9 million, an increase of about 7.0% from RMB 474.7 million in 2022, with a net profit margin of approximately 9.4%, up 0.2 percentage points year-on-year[60] Revenue Breakdown - Property management services revenue increased by 17.5% to RMB 3,555,106 from RMB 3,024,934 in the previous year[2] - Value-added services revenue, including community and developer services, totaled RMB 1,519,334 thousand, compared to RMB 1,691,919 thousand in the previous year, indicating a decline of approximately 10.2%[17] - Community value-added service revenue amounted to approximately RMB 1.31 billion, with a year-on-year increase of about 2.3%[41] - Developer value-added service revenue was approximately RMB 550 million, showing a year-on-year decline of about 36.2%[41] - Property management service revenue reached approximately RMB 3.56 billion in 2023, representing a year-on-year growth of about 17.5%[41] Assets and Equity - The total assets increased to RMB 6,682,643 as of December 31, 2023, compared to RMB 6,150,647 in 2022[6][9] - Current assets totaled RMB 5,552,281, up from RMB 4,699,011 in the previous year[6] - The company’s total equity increased to RMB 3,291,208 from RMB 2,908,523 in 2022[8] - Trade receivables as of December 31, 2023, amounted to RMB 2,076,436,000, an increase from RMB 1,428,629,000 in 2022, with significant contributions from both related parties and third parties[26] - Cash and cash equivalents as of December 31, 2023, totaled RMB 1,927,283,000, a slight decrease from RMB 1,973,696,000 in 2022[30] Dividends and Shareholder Information - The company declared a total dividend of RMB 139.41 million for the year, compared to RMB 134.94 million in 2022[36] - The board proposed a final dividend of RMB 0.205 per share for the year ended December 31, 2023, subject to shareholder approval[65] - The total issued and paid-up ordinary shares as of December 31, 2023, were 871,331,000 shares, with a nominal value of RMB 0.01 per share[33] Corporate Governance and Compliance - The company has adopted the Corporate Governance Code as per the Listing Rules and has complied with all applicable provisions for the year ending December 31, 2023[68] - The company has established an Audit Committee to oversee financial reporting, risk management, and internal controls[73] - The roles of the Chairman and CEO are currently held by the same individual, which the board believes provides strong and consistent leadership[68] - The company will continue to review its corporate governance practices to ensure compliance with the Corporate Governance Code[68] Future Outlook and Strategy - The company anticipates continued challenges in the economic environment but remains focused on cautious development and risk avoidance[42] - The company aims to enhance cost management and operational efficiency, with measures already implemented in the second half of 2023[43] - Community charging pile operation management services were initiated in 2023, with expectations for better revenue contributions in 2024[43] - The company will focus on optimizing existing projects and evaluating potential for further improvements in both newly acquired and previously managed properties[43]

Company Overview - As of June 30, 2023, the company signed property management service agreements covering 195 cities across 31 provinces, with a total contracted gross floor area of 322.8 million square meters[6]. - The total gross floor area under management reached 208.5 million square meters across 163 cities as of June 30, 2023[6]. - The company has been providing property management services for over 27 years, establishing a strong market presence[6]. - The company manages a diverse portfolio of properties, including residential and non-residential assets[8]. - The company ranked 11th in the top 100 Chinese property management services enterprises in 2023, up from 34th in 2010[6]. Revenue and Profitability - Revenue for the six months ended June 30, 2023, was RMB 2,681,101,000, representing an 8.7% increase compared to the same period in 2022[20]. - Net profit attributable to equity shareholders for the six months ended June 30, 2023, was RMB 293,789,000, reflecting a 30.1% increase year-over-year[20]. - Gross profit for the same period was RMB 717,574,000, with a gross margin of 26.8%, down from 29.0% in the previous year[20]. - The company reported a net profit margin of 12.4% for the six months ended June 30, 2023[20]. - The Group recorded revenue of approximately RMB 2,681.1 million in the first half of 2023, representing a year-on-year increase of approximately 8.7%[30]. Revenue Breakdown - The majority of revenue for the six months ended June 30, 2023, was derived from property management services[8]. - Revenue from property management services for the six months ended June 30, 2023, was RMB 1,694,125,000, with a year-over-year growth of 21.7%[21]. - Revenue from value-added services for the same period was RMB 986,976,000, showing a decline of 8.0% compared to the previous year[21]. - Revenue from community-related value-added services was RMB 708,091,000, with a year-over-year growth of 13.4%[21]. - Revenue from developer-related value-added services was RMB 158,908,000, a significant decline of 42.1% year-over-year[21]. Cost and Expenses - The cost of sales and services increased to approximately RMB 1,963.5 million, reflecting a 12.2% increase from RMB 1,749.8 million in the previous year[50]. - Total employee benefit expenses for the six months ended June 30, 2023, were approximately RMB 989.8 million, covering wages, pension costs, and other employee benefits[65][68]. - Selling and marketing expenses rose to RMB 41,836, up from RMB 29,168 in the same period of 2022, reflecting an increase of about 43.5%[151]. - Administrative expenses increased by approximately 3.1% to RMB 215.3 million, primarily due to the stable growth of the Group's scale and talent reserves for rapid business development[54]. Assets and Liabilities - Total assets as of June 30, 2023, reached RMB 6,712,349,000, an increase from RMB 6,150,647,000, marking a 9% growth[156]. - Total liabilities increased to RMB 3,596,833,000 from RMB 3,242,124,000, reflecting a growth of 11%[159]. - Current assets totaled RMB 5,197,662,000, up from RMB 4,699,011,000, indicating an increase of 11%[156]. - Cash and cash equivalents amounted to RMB 2,015,485,000, compared to RMB 1,973,696,000, reflecting a growth of 2%[156]. Corporate Governance - The company has complied with all applicable code provisions of the Corporate Governance Code during the six months ended June 30, 2023[84]. - The roles of chairman and chief executive officer are currently held by the same individual, which the Board believes provides strong leadership[84]. - The company aims to enhance corporate governance practices to ensure compliance with the Corporate Governance Code[84]. Shareholder Information - The company does not recommend payment of any interim dividend for the six months ended June 30, 2023, consistent with the previous year[84]. - As of June 30, 2023, the directors and chief executive hold a total of 6,605,022 shares, representing approximately 0.76% of the company's ordinary shares[97]. - Mr. Wang holds a long position of 600,000,000 shares, representing approximately 68.86% of the total shareholding[104]. Risk Management - The Group's overall risk management program focuses on minimizing potential adverse effects on financial performance due to market unpredictability[174]. - The Group's financial risk factors include market risk, credit risk, and liquidity risk[174]. - The significant judgements made by management in applying the Group's accounting policies were consistent with those applied to the 2022 Financial Statements[174]. Future Outlook - The Group's management believes that its sustainable growth strategy will positively impact long-term performance and shareholder returns[33][35]. - The company plans to acquire property management companies, with a budget allocation of 60% of the proceeds, amounting to HK$518.6 million[91]. - The company expects to complete the acquisition of complementary downstream companies on or before December 31, 2023[91].

Financial Performance - Revenue for the six months ended June 30, 2023, was RMB 2,681,101 thousand, representing an 8.7% increase from RMB 2,465,961 thousand in the same period of 2022[2] - Net profit for the period was RMB 333,525 thousand, a 29.4% increase compared to RMB 257,699 thousand in the same period last year[3] - Basic and diluted earnings per share increased by 30.8% to RMB 0.34 from RMB 0.26[3] - The company reported a profit attributable to shareholders of approximately RMB 293.8 million, a year-on-year increase of about 30.1%[38] - Profit for the reporting period is approximately RMB 333.5 million, a year-on-year increase of 29.4%, with a net profit margin of approximately 12.4%, up 1.9 percentage points from 2022[58] Revenue Breakdown - Property management services revenue increased by 21.7% to RMB 1,694,125 thousand, while community value-added services revenue rose by 13.4% to RMB 708,091 thousand[2] - Revenue from property management services reached RMB 1,694,125 thousand for the six months ended June 30, 2023, up 21.7% from RMB 1,392,613 thousand in the same period of 2022[17] - Community value-added service revenue was approximately RMB 708.1 million, growing by about 13.4%, with a gross profit of approximately RMB 240.3 million, contributing about 33.5% to the overall gross profit[38] - The company reported a decrease in smart park services revenue by 31.2% to RMB 119,977 thousand, and a decline in developer value-added services by 42.1% to RMB 158,908 thousand[2] - Developer value-added service revenue fell by approximately 42.1% year-on-year to RMB 158.9 million, accounting for about 5.9% of total revenue[51] Cost and Expenses - The gross profit margin decreased to 26.8%, down 2.2 percentage points from 29.0% in the previous year[2] - Employee benefits expenses rose to RMB 989,774 thousand, a 23.2% increase from RMB 803,337 thousand in the previous year[19] - The group's sales and service costs increased by approximately 12.2% year-on-year to RMB 1,963.5 million, driven by overall business growth[52] - The total financial costs, including lease liabilities interest expenses, for the six months ended June 30, 2023, were RMB (708,000), compared to RMB (403,000) in the same period of 2022, an increase of 75.8%[22] Assets and Liabilities - The total assets as of June 30, 2023, amounted to RMB 6,712,349 thousand, up from RMB 6,150,647 thousand at the end of 2022[7] - As of June 30, 2023, total liabilities amounted to RMB 3,596,833 thousand, an increase of 10.9% from RMB 3,242,124 thousand as of December 31, 2022[9] - The total current liabilities increased to RMB 3,339,027 thousand as of June 30, 2023, compared to RMB 3,009,339 thousand at the end of 2022, marking a rise of 10.9%[9] - The company’s non-current liabilities totaled RMB 257,806 thousand as of June 30, 2023, up from RMB 232,785 thousand as of December 31, 2022[9] - The total equity increased to RMB 3,115,516 thousand from RMB 2,908,523 thousand at the end of 2022[8] Cash Flow and Financial Position - The company held cash balances of RMB 2,015,485 thousand as of June 30, 2023, an increase from RMB 1,973,696 thousand as of December 31, 2022[62] - The company’s cash and cash equivalents as of June 30, 2023, were not explicitly stated but are critical for assessing liquidity and operational flexibility[32] - The capital-to-debt ratio as of June 30, 2023, is 0.3%, compared to 0.1% as of December 31, 2022[59] Shareholder Information - The company declared dividends totaling RMB 139,413 thousand for the six months ended June 30, 2023, compared to RMB 134,944 thousand for the previous year, reflecting an increase of approximately 3%[35] - The company did not recommend any interim dividend for the six months ended June 30, 2023[66] - The company’s total issued and paid-up ordinary shares increased to 871,331,000 shares as of June 30, 2023, from 870,604,000 shares at the end of the previous year, reflecting a growth of approximately 0.08%[34] Corporate Governance and Compliance - The company continues to adhere to high standards of corporate governance and has complied with all applicable code provisions during the reporting period[66] - The audit committee, consisting of one non-executive director and two independent non-executive directors, is responsible for reviewing the company's financial reporting system and risk management[72] Future Outlook and Strategy - The company aims for sustainable growth, gradually reducing reliance on the real estate sector, which is expected to positively impact long-term performance and shareholder returns[39] - The company plans to utilize RMB 59.6 million of the net proceeds for acquiring downstream companies related to community value-added services by December 31, 2023[65]

Financial Performance - Revenue for the year ended December 31, 2022, primarily derived from property management services, which accounted for the majority of the company's income[28]. - Total revenue for 2022 reached RMB 5,179,553, representing a 19.1% annual growth compared to 2021[33]. - Net profit attributable to equity shareholders for 2022 was RMB 423,476, a decrease of 19.4% from the previous year[33]. - Revenue from property management services increased to RMB 3,024,934 in 2022, with an annual growth of 44.0%[34]. - The company achieved a revenue exceeding RMB 5 billion in 2022, marking a significant milestone despite challenging market conditions[44]. - Profit for the year was approximately RMB 474.7 million, a decrease of approximately 15.0% from RMB 558.7 million in 2021, with a net profit margin of approximately 9.2%, down by 3.6 percentage points[78]. - Gross profit for the year ended December 31, 2022, was approximately RMB 1,338.1 million, a year-on-year decrease of approximately 0.3% from RMB 1,341.5 million in 2021[75]. - The gross margin for property management services was 55.4% in 2022, up from 47.1% in 2021[34]. Operational Scale - As of December 31, 2022, the total contracted gross floor area (GFA) covered by property management service agreements is 312.7 million square meters, with projects under management covering 198.3 million square meters[24]. - The total area under management as of December 31, 2022, is 198.3 million square meters, indicating significant operational scale[24]. - The company operates in 192 cities across 31 provinces, managing properties in 156 cities[24]. - The total GFA under management reached approximately 198.3 million sq.m. as of December 31, 2022, reflecting a net increase of approximately 44.7 million sq.m. or 29.1% compared to the end of 2021[61]. - The contracted GFA of the Group reached approximately 312.7 million sq.m., reflecting a net increase of approximately 33.9 million sq.m. or 12.2% from the end of 2021[67]. Value-Added Services - The value-added services include developer-related, community-related, and smart community services, enhancing the overall service offering[29]. - Revenue from community-related value-added services reached approximately RMB 1,284.5 million, representing a year-on-year increase of approximately 40.3%[50]. - Revenue from developer-related value-added services dropped by 36.3% to RMB 519.5 million from RMB 815.3 million in 2021[58]. - Revenue from smart community services decreased by 32.5% to RMB 350.6 million from RMB 519.7 million in 2021[58]. Challenges and Market Conditions - The company faced significant challenges in 2022 due to inflation, geopolitical tensions, and the ongoing COVID-19 pandemic, impacting overall business operations[41]. - The property service industry is entering a new stage characterized by market integration adjustments and fluctuating capital market valuations[43]. - The Group's growth may continue to be affected by PRC government regulations related to the property management industry[127]. Awards and Recognition - The company has been recognized as the 11th among the top 100 Chinese property management services enterprises in 2022, up from 34th in 2010[22]. - The company received multiple awards in 2022 for service quality, enhancing its brand image within the industry[44]. - The company has received multiple awards in 2022, including being recognized as a leading enterprise in ESG sustainable development[21]. Financial Position and Assets - Total assets as of December 31, 2022, amounted to RMB 6,150,647, an increase from RMB 5,409,645 in 2021[36]. - Cash and cash equivalents decreased to RMB 1,973,696 in 2022 from RMB 2,504,102 in 2021[36]. - Current assets as of December 31, 2022, were RMB 4,699.0 million, an increase of 8.4% from RMB 4,336.4 million as of December 31, 2021[79]. - The Group's capital debt ratio as of December 31, 2022, was 0.1%, compared to 0% on December 31, 2021[144]. Management and Governance - The company is committed to maintaining high standards of governance and management practices through its board of directors[107]. - The leadership team has a combined experience in various sectors, contributing to the Group's strategic direction and operational efficiency[108]. - The Group's management team includes individuals with diverse backgrounds in engineering, finance, and management, enhancing its operational capabilities[106]. - The Company maintains a competitive remuneration system to attract, motivate, and retain core staff, based on position value, capability contribution, and performance differences[159]. Shareholder Information - The Board recommends a final dividend of RMB 0.16 per share for the year ended 31 December 2022, subject to shareholder approval at the AGM on 28 June 2023[122]. - The interests of substantial shareholders were disclosed, with multiple entities holding 600,000,000 shares, all representing 68.87%[180]. - Each executive director has a service contract with a term of three years, with a notice period of at least three months for termination[156]. Employee and Training Programs - The Company provides a competitive remuneration and welfare system to enhance employee satisfaction and mutual growth[146]. - The Company has a scientific training system and multichannel promotion opportunities for employees[146]. - The Group has a strong focus on post-investment management to ensure the success of its investments[102].

Revenue and Profitability - The group's revenue for the year ended December 31, 2022, was approximately RMB 5,179.6 million, an increase of about 19.1% compared to RMB 4,350.7 million in 2021[2] - Property management services generated revenue of approximately RMB 3,024.9 million, up about 44.0% from RMB 2,100.2 million in 2021, accounting for approximately 58.4% of total revenue[2] - Community value-added services revenue reached approximately RMB 1,284.5 million, a growth of about 40.3% from RMB 915.6 million in 2021, representing approximately 24.8% of total revenue[2] - The group's gross profit was approximately RMB 1,338.1 million, a slight decrease of about 0.3% from RMB 1,341.5 million in 2021, with a gross profit margin of approximately 25.8%[2] - Net profit attributable to equity holders was approximately RMB 423.5 million, down about 19.4% from RMB 525.5 million in 2021, primarily due to reduced demand from property-related businesses amid a weak real estate market in China[2] - The company's attributable profit decreased by approximately 19.4% to about RMB 423.5 million, primarily due to the low demand in the real estate development sector[44] Assets and Equity - Total assets amounted to approximately RMB 6,150.6 million as of December 31, 2022, compared to RMB 5,409.6 million at the end of 2021[7] - Total equity increased to approximately RMB 2,908.5 million from RMB 2,524.6 million in the previous year[7] - The company's total non-current assets as of December 31, 2022, were all located in China, consistent with the previous year[15] Area Management - As of December 31, 2022, the managed area was approximately 198.3 million square meters, an increase of about 29.1% from the previous year[3] - The contracted area was approximately 312.7 million square meters, a net increase of about 12.2% from the previous year[3] - The total area of non-residential projects managed has increased by approximately 76.5% compared to the end of 2021, now accounting for about 25.8% of the project portfolio[44] - The residential property managed area was 147,048 thousand square meters, accounting for 74.2% of the total managed area, with a net increase of 22,538 thousand square meters or 18.1%[52] - The non-residential property managed area was 51,220 thousand square meters, a significant increase of 76.5% year-on-year, reflecting the company's enhanced market expansion capabilities[52] Expenses and Costs - Employee benefit expenses rose to RMB 1,940,208 thousand in 2022 from RMB 1,357,714 thousand in 2021, indicating a significant increase of around 43%[19] - The total cost of sales and services for the year ended December 31, 2022, was RMB 4,414,502 thousand, up from RMB 3,467,258 thousand in 2021, reflecting an increase of about 27%[19] - Administrative expenses increased to approximately RMB 481.0 million, up about 13.4% from RMB 424.0 million in 2021, primarily due to the group's continued growth and talent acquisition for logistics-related businesses[63] Dividends - The board proposed a final dividend of RMB 0.16 per share for the year ended December 31, 2022[3] - The company declared a final dividend of RMB 0.16 per ordinary share for the year ended December 31, 2022, subject to shareholder approval[40] Financial Performance - The basic earnings per share for the year ended December 31, 2022, was RMB 0.50, a decrease from RMB 0.62 in 2021, with attributable profit of RMB 423,476 thousand[26] - The diluted earnings per share for the year ended December 31, 2022, was also RMB 0.50, down from RMB 0.62 in 2021, with a weighted average number of shares of 856,177 thousand[28] - The group's net profit for the year was approximately RMB 474.7 million, a decrease of about 15.0% from RMB 558.7 million in 2021, with a net profit margin of approximately 9.2%, down 3.6 percentage points[65] Challenges and Market Conditions - The company faced significant challenges in 2022 due to inflation, geopolitical tensions, and recurring COVID-19 impacts, affecting overall business operations[42] - The company is optimistic about future growth, citing the recovery of normal economic activities and supportive government policies for real estate developers[46] Acquisitions and Investments - The company agreed to acquire 70% of Shanghai Xiangxi Property Management Co., Ltd., which will become a subsidiary, although preliminary accounting treatment is still under review[73] - The company completed a placement of 50,000,000 new ordinary shares at a price of HKD 20.80 per share, raising approximately HKD 1,032 million (around RMB 864.3 million) net of expenses[70] - As of December 31, 2022, the net proceeds were allocated as follows: 60% for acquiring property management companies (RMB 518.6 million), 30% for acquiring downstream companies related to community value-added services (RMB 259.3 million), and 10% for upgrading IT infrastructure (RMB 86.4 million)[71] Governance and Compliance - The company has adopted a corporate governance code to ensure high standards of governance and compliance with applicable rules[75] - The audit committee has been established, consisting of one non-executive director and two independent non-executive directors, with the primary responsibility of reviewing and supervising the company's financial reporting system and risk management[81] - The board of directors includes three executive directors and five non-executive directors, ensuring a diverse governance structure[83]