Economic Environment - In 2019, China's GDP growth rate was only 6.1%, indicating significant economic downward pressure[8]. - The real estate market in China faced a tightening policy environment, with 620 regulatory measures implemented in 2019, up from 450 in 2018[9]. - The real estate fund industry in China experienced an overall decline in 2019 due to economic slowdown and government policies[10]. - Fund exit difficulties increased, with cash flow pressures on real estate projects due to declining operational cash flow and sales speed[13]. - The fundraising environment became more challenging, with weakened investment sentiment among high-net-worth individuals due to economic pressures and regulatory tightening[13]. - The pandemic has exacerbated challenges in the real estate sector, particularly affecting the third industry, leading to increased vacancy rates and cash flow pressures[10]. Company Performance - Total revenue for 2019 was RMB 125,234,000, a decrease of 20.4% from RMB 157,417,000 in 2018[17]. - Net profit for the year was RMB 6,774,000, down 85.4% from RMB 46,478,000 in 2018[17]. - Earnings attributable to equity holders of the parent company were RMB 9,451,000, a decline of 79.3% compared to RMB 45,735,000 in 2018[17]. - Basic and diluted earnings per share were RMB 6.16, down 84.0% from RMB 38.41 in 2018[17]. - Total assets decreased to RMB 434,826,000 from RMB 469,844,000 in 2018, a decline of 7.5%[17]. - Total liabilities decreased to RMB 34,869,000 from RMB 68,344,000 in 2018, a reduction of 48.9%[17]. - Total equity amounted to RMB 399,957,000, slightly down from RMB 401,500,000 in 2018[17]. - Current ratio was 3.7 times, down from 4.6 times in 2018[17]. - Return on total assets was 1.6%, significantly lower than 9.9% in 2018[17]. - Return on equity was 1.7%, down from 11.6% in 2018[17]. Strategic Focus and Initiatives - The company anticipates structural adjustments in fund investment directions, with reduced short-term investment interest in commercial and office properties[13]. - The company has a strategic focus on acquiring distressed assets as the number of non-performing assets is expected to rise[13]. - New product development initiatives are underway, with an investment of 50 million allocated for R&D in innovative technologies[27]. - The company plans to expand its market presence in Southeast Asia, targeting a 25% increase in market share by 2021[27]. - A strategic acquisition was announced, with the company acquiring a competitor for 200 million, expected to enhance its service offerings and customer base[27]. - The company emphasized its commitment to sustainability, aiming to reduce operational costs by 15% through energy-efficient technologies by 2022[27]. - The management team highlighted the importance of digital transformation, with a goal to increase online sales by 30% in the next fiscal year[27]. - The company is exploring partnerships with local firms to enhance distribution channels, aiming for a 40% increase in distribution efficiency[27]. - A new marketing strategy was introduced, focusing on social media engagement, with a budget increase of 20% for digital advertising[27]. Investment Management and Fund Performance - As of December 31, 2019, the total assets under management increased to RMB 4,894.1 million, up from RMB 4,514.0 million as of December 31, 2018, representing a growth of approximately 8.4%[51]. - The number of project funds managed increased from 10 to 14, with corresponding assets under management rising from RMB 4,460.0 million to RMB 4,819.3 million[52]. - The number of mother funds increased from 6 to 9, with assets under management growing from RMB 694.0 million to RMB 823.0 million[52]. - The investment market in China saw a decline in new fund raising, with 2,710 new funds raised in 2019, totaling approximately RMB 124.44 billion, a year-on-year decrease of about 6.6%[47]. - The total investment amount in 2019 was approximately RMB 76.31 billion, down about 29.3% year-on-year, with 8,234 investment cases, a decrease of about 17.8%[47]. - The company focuses on managing real estate investment funds, which include direct investment project funds and flexible funds that invest in designated types of funds[50]. - The company faced challenges in fundraising due to increased economic pressure and stricter regulatory requirements in the private equity fund management industry[47]. - The cash flow of investment projects has deteriorated, impacting the operational cash flow of commercial real estate projects[47]. - The company is navigating a "new normal" in the private equity fund management industry, characterized by lower operational levels and increased competition[47]. - The exit strategies for real estate funds have become more difficult, leading to increased pressure on liquidity and fund redemption[47]. Risk Management and Compliance - The company emphasizes the importance of internal control and risk management to mitigate investment risks[63]. - The group recognized an impairment loss provision for receivables of approximately RMB 19.8 million, including RMB 19.3 million for individual impairment and RMB 0.5 million for collective impairment[84]. - The group assessed receivables management fees based on various factors, resulting in a 30% individual impairment provision of RMB 15.4 million for the Oriental Baorui project and RMB 3.9 million for the Overseas Chinese Town project[85]. - The fair value of investments in associates and joint ventures decreased by RMB 10.4 million compared to the previous year, primarily due to increased operating costs and lower expected recoverable amounts from real estate projects[88]. - The group’s income tax expense decreased from approximately RMB 16.4 million in 2018 to approximately RMB 5.1 million, a decline of about 69.0% due to reduced pre-tax profits[94]. - The group’s net profit for the year dropped from approximately RMB 46.5 million in 2018 to RMB 6.8 million, with a net profit margin decreasing from about 29.5% to 5.4%[95]. - The group has complied with relevant laws and regulations during the year, with no significant violations reported[139]. - The company is subject to changing regulatory requirements, and any non-compliance could lead to fines or revocation of business licenses, adversely affecting operations and prospects[150]. Shareholder Information - As of December 31, 2019, the company's total issued share capital is 153,340,000 shares, with domestic shares accounting for 75.0% (115,000,000 shares) and H shares accounting for 25.0% (38,340,000 shares)[151]. - The company’s major shareholder, Mr. Zhu Ping, holds 100.0% of the domestic shares, representing 75.0% of the total issued share capital[169]. - Major shareholders include Zhu Ping with 115,000,000 shares, representing 75.0% of the total share capital[171]. - Shanghai Shengxuan Investment Consulting Co., Ltd. holds 115,000,000 shares, also accounting for 75.0% of the total share capital[171]. - Shanghai Weimian Investment Partnership holds 79,012,675 shares, which is 51.5% of the total share capital[171]. - Shanghai Weiye Investment Partnership has 15,000,000 shares, representing 9.8% of the total share capital[171]. - Shanghai Weihui Investment Partnership holds 13,875,000 shares, accounting for 9.0% of the total share capital[171]. - Shanghai Zunwei Industrial Development Co., Ltd. owns 7,112,325 shares, which is 4.6% of the total share capital[171]. - The total number of shares issued after the offering is 153,340,000[177]. - The company did not declare a final dividend for the year, retaining resources for business development, compared to a previous dividend of RMB 0.0652 per share in 2018[114]. Human Resources - The company employed a total of 127 employees as of December 31, 2019, down from 193 employees in the previous year[119]. - The company participates in a central pension plan operated by the local government for its employees in mainland China[166].

Financial Performance - Revenue for the first half of 2019 was RMB 56,419,000, a decrease of 31.6% compared to RMB 82,421,000 in the same period of 2018[12]. - Net profit attributable to the parent company was RMB 27,861,000, down 27.9% from RMB 38,655,000 in the first half of 2018[12]. - The company reported total revenue of approximately RMB 56.4 million for the reporting period, a decrease of RMB 26.0 million or 31.5% compared to the same period last year[36]. - Operating profit for the same period was RMB 35,508,000, down 29.4% from RMB 50,323,000 in 2018[121]. - Profit for the period was RMB 25,310,000, representing a decline of 32.4% from RMB 37,471,000 in the previous year[121]. - Basic and diluted earnings per share for the period were RMB 18.17, down 47.1% from RMB 34.25 in 2018[124]. - The profit attributable to equity holders of the parent company for the six months ended June 30, 2019, was RMB 27,861,000, down from RMB 38,655,000 in the same period of 2018, indicating a decline of about 28%[198]. - The total tax expense was RMB 8,828,000, compared to RMB 12,490,000 for the same period in 2018, representing a decrease of approximately 29%[196]. - The deferred tax expense for the six months ended June 30, 2019, was RMB 6,121,000, compared to RMB 11,391,000 for the same period in 2018, showing a decrease of approximately 46%[196]. Assets and Liabilities - Total assets as of June 30, 2019, were RMB 468,825,000, an increase of 35.1% from RMB 346,719,000 at the same time in 2018[12]. - Total liabilities decreased to RMB 51,288,000, down 53.2% from RMB 109,584,000 in the first half of 2018[12]. - The current ratio improved to 3.9 times, compared to 1.6 times in the same period of 2018[12]. - Total assets less current liabilities amounted to RMB 426,840,000, an increase from RMB 406,576,000 as of December 31, 2018[129]. - Non-current assets totaled RMB 306,258,000, significantly up from RMB 180,670,000 at the end of 2018[127]. - Current liabilities decreased to RMB 41,985,000 from RMB 63,268,000 in the previous period[129]. - As of June 30, 2019, the group's cash and cash equivalents reached RMB 71.2 million, compared to RMB 20.2 million on June 30, 2018[57]. - The group had a zero debt-to-asset ratio as of June 30, 2019, with no outstanding loans or bank overdrafts[59]. Investment and Strategic Initiatives - The company aims to leverage its brand effect post-IPO to explore new development channels and opportunities[15]. - The company has completed strategic layouts in nine core cities, including Shanghai, Beijing, and Guangzhou[18]. - The company plans to seek strategic cooperation with large enterprises and financial institutions to enhance brand influence and achieve mutual benefits[24]. - The company aims to explore overseas real estate investment opportunities, particularly in Southeast Asia, although no specific overseas expansion plans are currently in place[27]. - The company intends to deepen cooperation in urban renewal and industry-finance integration within the Guangdong-Hong Kong-Macao Greater Bay Area[28]. - The company has seen over 50% of its asset management scale in non-performing assets since starting this business in 2016, aiming to strengthen its core competitiveness and profitability[29]. - The group invested RMB 14 million to acquire a 35% stake in Guangzhou Zhongshunyi on March 5, 2019, enhancing its asset management and wealth management capabilities[70]. Operational Changes and Management - The company has adjusted its organizational structure and implemented innovative mechanisms to enhance competitiveness in a complex environment[15]. - The board has adjusted the organizational structure to improve operational efficiency and management effectiveness, establishing an operations management department[20]. - The company aims to enhance its risk management capabilities to adapt to macroeconomic changes and become a top private equity fund manager in China[32]. - The company has identified a need for more prudent investment project initiation, leading to a decrease in the number of new projects launched[42]. - The company plans to strengthen its compliance culture and internal control mechanisms to ensure stable and healthy development[32]. - The group employed a total of 143 employees as of June 30, 2019, up from 127 employees on June 30, 2018[75]. Market Conditions and Challenges - The private equity investment sentiment has declined due to increased economic pressures and regulatory tightening in China[14]. - The real estate private equity fund industry is experiencing a downward adjustment, leading to intensified competition among fund managers[14]. - Despite a decline in China's macroeconomic situation, the company believes that China remains a vibrant and growth-potential economy[21]. Accounting and Compliance - The company adopted IFRS 16 on January 1, 2019, which resulted in an increase in total assets and liabilities by RMB 6,607 thousand[146]. - The company confirmed additional lease liabilities of RMB 6,607,000, included in interest-bearing loans and borrowings[152]. - The group adopted new accounting standards and interpretations effective from January 1, 2019, including the International Financial Reporting Interpretation Committee Interpretation No. 23 regarding the accounting treatment of uncertain tax positions[162]. - The group assessed potential uncertain tax situations related to transfer pricing and believes tax authorities are likely to accept its tax treatments[163]. - The group is governed by strict compliance with listing rules, ensuring transparency and accountability in its operations[116]. - Financial performance for the six months ending June 30, 2019, was not audited or reviewed by external auditors[117]. Shareholder Information - Major shareholders hold significant stakes, with Mr. Zhu Ping and Shanghai Shengxuan Investment Consulting Co., Ltd. each owning 115,000,000 shares, representing 100% and 75% of their respective categories[99]. - Shanghai Weimian Investment Partnership holds 79,012,675 shares, accounting for 68.7% of its category and 51.5% of total shares[99]. - Shanghai Weiyue Investment Partnership has 15,000,000 shares, representing 13.0% of its category and 9.8% of total shares[99]. - The board of directors did not recommend the declaration of an interim dividend for the six months ended June 30, 2019, maintaining resources for business development[82].

Financial Performance - In 2018, the company reported revenue of RMB 157,417 thousand, a 20.2% increase from RMB 130,875 thousand in 2017[23]. - The net profit for 2018 was RMB 46,478 thousand, a decrease of 26.6% compared to RMB 63,346 thousand in 2017[23]. - Total assets increased to RMB 469,844 thousand in 2018, up from RMB 282,881 thousand in 2017, reflecting a growth of 66.2%[23]. - The total revenue for the year 2018 was approximately RMB 157.4 million, an increase of RMB 26.5 million or 20.3% compared to 2017[59]. - Regular management fee revenue was approximately RMB 109.0 million, accounting for about 69.2% of total revenue, remaining stable compared to the previous year[61]. - Performance fees increased to approximately RMB 43.9 million, representing a year-on-year increase of RMB 24.1 million or 122.2%, primarily due to successful exits from specific projects[62]. - One-time fund establishment fees were approximately RMB 5.4 million, an increase of RMB 3.3 million or 155.5% compared to the previous year, attributed to new projects initiated in 2018[62]. - Other income and gains rose from approximately RMB 4.4 million in 2017 to RMB 13.2 million in 2018, reflecting a growth of about 202.5%[65]. - Administrative expenses for the year were approximately RMB 99.7 million, an increase of about 56.4% from RMB 63.7 million in the previous year, driven by business expansion and one-time listing expenses[71]. - Income tax expenses decreased from approximately RMB 25.6 million in 2017 to about RMB 16.4 million in 2018, a decline of approximately 36.0% due to reduced pre-tax profits[77]. - The group's annual profit decreased from approximately RMB 63.3 million in 2017 to RMB 46.5 million this year, with a net profit margin dropping from about 48.4% to 29.5%[78]. Asset Management and Projects - The company managed 10 project funds with total assets of approximately RMB 4,460.0 million, down from 11 project funds with RMB 4,933.5 million in the previous year[54]. - The company’s asset management includes three main categories: commercial real estate projects (21.5% of total assets), non-performing asset projects (58.2%), and urbanization and redevelopment projects (20.3%) as of December 31, 2018[57]. - The number of commercial real estate projects decreased from 4 to 3, while the managed assets in this category slightly decreased from RMB 986.6 million to RMB 959.6 million[57]. - Non-performing asset projects maintained the same number at 3, with managed assets increasing from RMB 2,451.8 million to RMB 2,593.8 million, representing a growth of approximately 5.8%[57]. - The company completed three major project exits in 2018, generating approximately RMB 43.9 million in performance management fee income[11]. - The company has approved five projects through its project approval committee, including three commercial real estate projects and two urbanization and reconstruction projects[16]. - The company’s new Tian Impression project in Zhengzhou covers a total construction area of over 420,000 square meters, marking a significant collaboration with Henan Xintian Real Estate Co., Ltd.[16]. Strategic Development and Expansion - The company plans to expand its operations in cities such as Hong Kong, Xi'an, Hangzhou, and Chongqing to increase project acquisition channels and diversify its fund asset portfolio[16]. - As of December 31, 2018, the company had established subsidiaries in Hong Kong, Xi'an, and Hangzhou using its own resources[16]. - The company aims to drive sustainable business growth in 2019 through business expansion in key cities and collaboration with quality partners[20]. - The company aims to enhance internal management and product innovation to create greater value for shareholders[20]. - The company is focused on product innovation and the interaction between asset management and wealth management to create greater shareholder value[104]. Joint Ventures and Investments - The company established a joint venture with Chengjia (Shanghai) Apartment Management Co., Ltd., each contributing RMB 5 million to invest in the real estate market and long-term rental apartments[16]. - The company established a joint venture, Guangrui Juyou, with registered capital of RMB 9 million to enhance marketing capabilities and attract high-net-worth investors[17]. - The company acquired a 35% stake in Guangzhou Zhongshunyi Wealth Management for RMB 14 million, aiming to improve marketing capabilities through a professional wealth management team[19]. - The investment income from joint ventures and associates increased by approximately 159.4%, from RMB 3.3 million in 2017 to RMB 8.5 million in 2018[68]. Corporate Governance and Management - The company is positioned as the first overseas-listed private equity fund management company in China, emphasizing continuous innovation in financial services[12]. - The company has a strong leadership team with extensive experience in real estate and financial management, including members with qualifications in fund management and construction[30][31]. - The company is focused on strategic development and corporate governance, with independent directors providing oversight and independent judgment[34][35]. - The company emphasizes the importance of independent directors in providing strategic insights and governance[34][38]. - The company has a commitment to maintaining high standards in financial management and corporate governance practices[29][39]. - The company has established a remuneration committee to review the compensation policies for directors and senior management based on performance[145]. - The company has maintained a high level of corporate governance practices as detailed in the corporate governance report section of the annual report[185]. Shareholder Information - The board proposed a final dividend of RMB 0.0652 per share for the year, compared to no dividend in 2017[86]. - The company confirmed a one-time listing expense of approximately RMB 18.8 million during the year[71]. - The company had no outstanding loans or borrowings as of December 31, 2018[138]. - The company has complied with relevant laws and regulations, with no significant violations reported as of December 31, 2018[121]. - Major customers accounted for 42.7% of the annual revenue, with the largest customer contributing 15.3%[125]. - As of December 31, 2018, the company's share capital structure consisted of 115 million domestic shares (75.0%) and 38.34 million H shares (25.0%), totaling 153.34 million shares[132]. - The total number of shares issued after the share offering is 153,340,000[158]. Challenges and Risks - The company continues to face challenges but has shown resilience in achieving growth in managed assets and revenue[52]. - The company faces risks related to investment decisions, market fluctuations, and the retention of key personnel[129]. Employee and Operational Information - The group employed a total of 193 employees as of December 31, 2018, an increase from 124 employees in the previous year[93]. - The company has invested in regional business coverage in China, with RMB 33.6 million (69.6% utilization) allocated to various asset management companies[107]. - The company’s core management team possesses extensive experience in wealth management and risk control, which will be leveraged for operational advantages[102].