股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 截至月份: 2025年8月31日 狀態: 新提交 致：香港交易及結算所有限公司 公司名稱: 弘陽服務集團有限公司 呈交日期: 2025年9月4日 I. 法定/註冊股本變動 | 1. 股份分類 | 普通股 | 股份類別 | 不適用 | | 於香港聯交所上市 (註1) | | 是 | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 01971 | 說明 | | | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | | 法定/註冊股本 | | | 上月底結存 | | | 1,000,000,000 | HKD | | 0.01 | HKD | | 10,000,000 | | 增加 / 減少 (-) | | | 0 | | | | HKD | | 0 | | 本月底結存 | | | 1,000,000,000 | HKD | | 0.01 | HKD | | 10,000,000 | 本月底法定/ ...

Core Viewpoint - Hongyang Services (01971) reported a revenue of RMB 510 million for the six months ending June 30, 2025, representing a year-on-year increase of 9.68% [1] - The profit attributable to the company's owners was RMB 24.444 million, a decrease of 33.22% compared to the previous year [1] - Basic earnings per share stood at RMB 0.06 [1] Revenue Breakdown - The increase in revenue was primarily driven by growth in property management services and community value-added services [1]

Core Viewpoint - Hongyang Services (01971) reported a revenue of RMB 510 million for the six months ending June 30, 2025, representing a year-on-year increase of 9.68% [1] - The profit attributable to the company's owners was RMB 24.444 million, a decrease of 33.22% year-on-year, with basic earnings per share at RMB 0.06 [1] Revenue Growth - The increase in revenue was primarily driven by the growth in property management services and community value-added services [1]

Core Viewpoint - Hongyang Services (01971.HK) reported a revenue of RMB 510.4 million for the six months ending June 30, 2025, representing a 9.7% increase compared to the same period in 2024 [1] Financial Performance - Revenue for the property management services segment reached RMB 420 million, accounting for 82.3% of total revenue, an increase of 11.9% year-on-year [1] - Gross profit was RMB 113.4 million, a decrease of 11.1% from the previous year, with a gross margin of 22.2%, down 5.2 percentage points [1] - The profit attributable to equity shareholders was RMB 24.4 million, a decline of 33.2% compared to the same period in 2024, with no dividend declared [1] Service Segments - Non-owner value-added services generated revenue of RMB 11 million, representing 2.2% of total revenue, a significant decrease of 45.8% year-on-year [1] - Community value-added services achieved revenue of RMB 79.4 million, making up 15.5% of total revenue, an increase of 14.1% compared to the previous year [1] Contracted Area - As of June 30, 2025, the contracted area was approximately 49.9 million square meters, a decrease of about 3.7% from 51.8 million square meters as of June 30, 2024 [1] - The managed area increased to approximately 48.2 million square meters, up about 2.3% from 47.1 million square meters as of June 30, 2024 [1]

[Summary](index=1&type=section&id=Summary) The company reported a **9.7% revenue increase** to RMB 510.4 million in H1 2025, but gross profit and net profit declined due to rising costs and impairment losses Key Financial and Operating Indicators for the Six Months Ended June 30, 2025 | Indicator | H1 2025 (RMB million) | H1 2024 (RMB million) | YoY Change (%) | | :--- | :--- | :--- | :--- | | **Financial Performance:** | | | | | Revenue | 510.4 | 465.3 | +9.7% | | Property Management Services Revenue | 420.0 | 375.4 | +11.9% | | Value-Added Services to Non-Property Owners Revenue | 11.0 | 20.3 | -45.8% | | Community Value-Added Services Revenue | 79.4 | 69.6 | +14.1% | | Gross Profit | 113.4 | 127.5 | -11.1% | | Gross Profit Margin | 22.2% | 27.4% | -5.2 percentage points | | Profit for the Period | 28.5 | 40.1 | -29.1% | | Profit Attributable to Owners of the Parent | 24.4 | 36.6 | -33.2% | | **Operating Indicators:** | | | | | Contracted GFA | 49.9 million sq.m. | 51.8 million sq.m. | -3.7% | | GFA Under Management | 48.2 million sq.m. | 47.1 million sq.m. | +2.3% | - The Board does not recommend the payment of any interim dividend for the six months ended June 30, 2025 (nil for the corresponding period in 2024)[3](index=3&type=chunk) [Interim Results](index=3&type=section&id=Interim%20Results) This section presents the condensed consolidated financial statements, including profit or loss, financial position, and detailed notes on accounting policies and key financial items [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=3&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) Revenue grew by **9.7% to RMB 510.4 million**, while gross profit and net profit decreased by **11.1%** and **29.1%** respectively, impacted by higher service costs and impairment losses Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (For the six months ended June 30) | Indicator | 2025 (RMB thousand) | 2024 (RMB thousand) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 510,371 | 465,332 | +9.7% | | Cost of services | (396,971) | (337,795) | +17.5% | | Gross Profit | 113,400 | 127,537 | -11.1% | | Other income and gains | 1,671 | 1,515 | +10.3% | | Selling and distribution expenses | (1,020) | (636) | +60.4% | | Administrative expenses | (41,387) | (30,727) | +34.7% | | Net impairment losses on financial assets | (26,858) | (40,852) | -34.2% | | Profit before tax | 44,258 | 54,646 | -19.0% | | Income tax expense | (15,788) | (14,515) | +8.8% | | Profit for the period | 28,470 | 40,131 | -29.1% | | Profit attributable to owners of the parent | 24,444 | 36,602 | -33.2% | | Profit attributable to non-controlling interests | 4,026 | 3,529 | +14.1% | | Basic and diluted earnings per share | RMB 0.06 | RMB 0.09 | -33.3% | [Condensed Consolidated Statement of Financial Position](index=5&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) Total equity increased by **3.1%**, and the asset-liability ratio improved to **40.6%**, despite a **14.7%** decrease in cash and bank balances Condensed Consolidated Statement of Financial Position (As at June 30) | Indicator | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | | **Assets:** | | | | | Total non-current assets | 272,158 | 283,121 | -3.9% | | Total current assets | 1,307,333 | 1,375,200 | -4.9% | | Cash and bank balances | 478,039 | 560,574 | -14.7% | | **Liabilities:** | | | | | Total current liabilities | 620,535 | 719,008 | -13.7% | | Total non-current liabilities | 21,408 | 30,235 | -29.2% | | **Equity:** | | | | | Total equity | 937,548 | 909,078 | +3.1% | | **Other:** | | | | | Net current assets | 686,798 | 656,192 | +4.7% | | Total assets less current liabilities | 958,956 | 939,313 | +2.1% | [Notes to the Condensed Consolidated Financial Information](index=7&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Information) Provides detailed disclosures on the group's operations, accounting policies, revenue breakdown, profit before tax, income tax, and analyses of trade receivables and payables [1. Company and Group Information](index=7&type=section&id=1.%20Company%20and%20Group%20Information) - The Company was incorporated in the Cayman Islands on December 12, 2019, and listed on the Main Board of the Hong Kong Stock Exchange on July 7, 2020[8](index=8&type=chunk) - The Group's principal activities are the provision of property management services, value-added services to non-property owners, and community value-added services[9](index=9&type=chunk) [2. Basis of Preparation](index=7&type=section&id=2.%20Basis%20of%20Preparation) - The condensed consolidated financial information is prepared in accordance with International Accounting Standard 34 "Interim Financial Reporting" and should be read in conjunction with the annual consolidated financial statements for the year ended December 31, 2024[10](index=10&type=chunk) [3. Changes in Accounting Policies and Disclosures](index=7&type=section&id=3.%20Changes%20in%20Accounting%20Policies%20and%20Disclosures) - The revised International Financial Reporting Standards accounting standards adopted for the first time in this period, including the amendments to IAS 21 (Lack of Exchangeability), have no significant impact on the condensed consolidated financial statements as the Group's transaction currencies are all exchangeable[11](index=11&type=chunk)[12](index=12&type=chunk) [4. Operating Segment Information](index=8&type=section&id=4.%20Operating%20Segment%20Information) - Management aggregates all operating locations into a single reportable operating segment due to similar economic characteristics and business nature[13](index=13&type=chunk) - All of the Group's revenue is derived from mainland China, and no non-current assets are located outside mainland China, thus no geographical information is presented[14](index=14&type=chunk) Major Customer Revenue Contribution (For the six months ended June 30) | Customer | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Customer A | Not exceeding 10% of total revenue | 52,717 | [5. Revenue](index=8&type=section&id=5.%20Revenue) Revenue Analysis (For the six months ended June 30) | Business Type | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Property management services | 420,018 | 375,410 | | Value-added services to non-property owners | 10,993 | 20,321 | | Community value-added services | 79,360 | 69,601 | | **Total** | **510,371** | **465,332** | Customer Revenue Recognized by Timing (For the six months ended June 30) | Recognition Method | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Total customer revenue recognized over time | 427,937 | 391,626 | | Total customer revenue recognized at a point in time | 82,434 | 73,706 | [6. Profit Before Tax](index=9&type=section&id=6.%20Profit%20Before%20Tax) - Profit before tax is primarily affected by factors such as cost of services, depreciation and amortization, and net impairment losses on financial assets[20](index=20&type=chunk) Deductions/(Credits) Affecting Profit Before Tax (For the six months ended June 30) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Cost of services provided | 396,971 | 337,795 | | Depreciation of property, plant and equipment | 4,636 | 3,530 | | Amortisation of other intangible assets | 7,999 | 8,133 | | Impairment losses on trade receivables | 2,086 | 13,984 | | Impairment losses on amounts due from related companies | 19,831 | 26,064 | [7. Income Tax Expense](index=10&type=section&id=7.%20Income%20Tax%20Expense) - Mainland China subsidiaries generally pay enterprise income tax at a **25%** rate, with some western city subsidiaries enjoying a **15%** preferential rate, and small and micro enterprises a **2.5%** or **5%** preferential rate[21](index=21&type=chunk) Income Tax Expense (For the six months ended June 30) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Current tax: Enterprise income tax | 18,237 | 22,024 | | Deferred tax | (2,449) | (7,509) | | **Total tax expense for the period** | **15,788** | **14,515** | [8. Dividends](index=10&type=section&id=8.%20Dividends) - The Board has resolved not to declare an interim dividend for the six months ended June 30, 2025 (2024: nil)[23](index=23&type=chunk) [9. Earnings Per Share Attributable to Owners of the Parent](index=11&type=section&id=9.%20Earnings%20Per%20Share%20Attributable%20to%20Owners%20of%20the%20Parent) - Basic earnings per share are calculated based on the profit attributable to owners of the parent and the weighted average number of **415,000,000** ordinary shares outstanding during the period[24](index=24&type=chunk)[25](index=25&type=chunk) Basis for Basic Earnings Per Share Calculation (For the six months ended June 30) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Profit attributable to owners of the parent (RMB thousand) | 24,444 | 36,602 | | Weighted average number of ordinary shares outstanding (shares) | 415,000,000 | 415,000,000 | [10. Trade Receivables](index=11&type=section&id=10.%20Trade%20Receivables) Ageing Analysis of Trade Receivables (As at June 30) | Ageing | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Within 1 year | 221,541 | 186,521 | | 1 to 2 years | 62,408 | 71,535 | | 2 to 3 years | 17,931 | 25,855 | | Over 3 years | 6,223 | 6,025 | | **Total** | **308,103** | **289,936** | Credit Risk Information for Trade Receivables (As at June 30) | Ageing | Expected Credit Loss Rate (June 30, 2025) | Expected Credit Loss (June 30, 2025, RMB thousand) | Expected Credit Loss Rate (December 31, 2024) | Expected Credit Loss (December 31, 2024, RMB thousand) | | :--- | :--- | :--- | :--- | :--- | | Current | 3.61% | 8,303 | 2.95% | 5,662 | | 1 to 2 years | 6.50% | 4,340 | 7.52% | 5,816 | | 2 to 3 years | 16.48% | 3,538 | 15.32% | 4,676 | | Over 3 years | 47.83% | 5,705 | 37.70% | 3,646 | | **Total** | **6.63%** | **21,886** | **6.39%** | **19,800** | [11. Trade Payables](index=13&type=section&id=11.%20Trade%20Payables) Ageing Analysis of Trade Payables (As at June 30) | Ageing | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Within 1 year | 118,556 | 179,903 | | Over 1 year | 2,368 | 3,873 | | **Total** | **120,924** | **183,776** | [12. Other Payables and Accrued Expenses](index=13&type=section&id=12.%20Other%20Payables%20and%20Accrued%20Expenses) Other Payables and Accrued Expenses (As at June 30) | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Collections on behalf of community residents for utilities | 23,920 | 49,849 | | Deposits received | 60,861 | 65,979 | | Other payables for taxes | 31,514 | 27,795 | | Accrued salaries and welfare | 22,669 | 22,138 | | Others | 4,119 | 11,910 | | **Total** | **143,083** | **177,671** | [13. Share Capital](index=13&type=section&id=13.%20Share%20Capital) Share Capital (As at June 30) | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Issued and fully paid ordinary shares (415,000,000 shares of HK$0.01 par value each) | 3,764 | 3,764 | [Management Discussion and Analysis](index=14&type=section&id=Management%20Discussion%20and%20Analysis) This section reviews the company's performance in H1 2025, discusses its business model, operational and financial results, liquidity, and outlines the strategic outlook for H2 2025 [Review of H1 2025](index=14&type=section&id=Review%20of%20H1%202025) The property management sector faced economic pressures, shifting to quality-driven growth, with the Group achieving strategic transformation and ranking **16th** among top service providers - The property management industry's scale expansion logic is being reshaped, focusing on core city clusters like the Yangtze River Delta and Greater Bay Area, with slower growth in managed area and an accelerated shift from scale-driven to quality-driven competition[31](index=31&type=chunk) - The national "14th Five-Year Plan" mandates smart property services, with core cities incorporating smart community construction into urban assessment systems[31](index=31&type=chunk) - In H1, the Group's strategy focused on "penetrating Greater Jiangsu," "deepening the Yangtze River Delta," and "strengthening central cities" to build a national development pattern, transforming towards quality and efficiency-driven growth by focusing on high-value regions, enhancing service depth, and integrating regional resources[32](index=32&type=chunk) - New school and data center property types were added, consolidating the core business, while the investment segment made precise and breakthrough progress[32](index=32&type=chunk) - The 2025 new three-year strategic development plan was released, identifying **ten key cities** for deep cultivation and planning to establish quality strongholds, with the first batch covering **8 cities and 13 projects**[33](index=33&type=chunk) - The Group ranked **16th** among "2025 China Property Service Top 100 Enterprises" and received honors as "2025 China Property Service Top 100 Satisfaction Leading Enterprise" and "2025 China Red Property Service Excellent Enterprise"[34](index=34&type=chunk) Key Operating and Financial Data for H1 2025 | Indicator | June 30, 2025 | H1 2024 | YoY Change | | :--- | :--- | :--- | :--- | | Contracted GFA | 49.9 million sq.m. | 51.8 million sq.m. | -3.7% | | Total GFA Under Management | 48.2 million sq.m. | 47.1 million sq.m. | +2.3% | | Revenue | RMB 510.4 million | RMB 465.3 million | +9.7% | | Gross Profit | RMB 113.4 million | RMB 127.5 million | -11.1% | | Net Profit | RMB 28.5 million | RMB 40.1 million | -29.1% | [Business Review](index=16&type=section&id=Business%20Review) The Group's revenue increased by **9.7%**, driven by property management and community value-added services, but overall profitability declined due to rising service costs [Our Business Model](index=16&type=section&id=Our%20Business%20Model) - The Group adheres to the strategy of "penetrating Greater Jiangsu, deepening the Yangtze River Delta, and expanding into urban clusters," providing property management services, value-added services to non-property owners, and community value-added services with a "customer-centric" philosophy[36](index=36&type=chunk) [Property Management Services](index=16&type=section&id=Property%20Management%20Services) - Provides comprehensive services including security, cleaning, landscaping, facility management, customer service, and maintenance, covering residential, commercial, and other non-residential properties (e.g., shopping malls, office buildings, schools)[36](index=36&type=chunk) [Value-Added Services to Non-Property Owners](index=17&type=section&id=Value-Added%20Services%20to%20Non-Property%20Owners) - Includes consulting services, preliminary planning and design consultation, co-selling services, acceptance services, and property repair services, primarily for real estate developers and other property management companies[37](index=37&type=chunk) [Community Value-Added Services](index=17&type=section&id=Community%20Value-Added%20Services) - Offers eight categories of services to residential property owners and residents, including property agency, home beautification, community convenience, public area value-added services, smart solutions, retail, asset management, and home decoration[37](index=37&type=chunk) [Revenue Analysis](index=17&type=section&id=Revenue%20Analysis) Total Revenue Breakdown by Business Line (As at June 30) | Business Line | 2025 (RMB thousand) | Share (%) | 2024 (RMB thousand) | Share (%) | | :--- | :--- | :--- | :--- | :--- | | Property management services | 420,018 | 82.3 | 375,410 | 80.6 | | Value-added services to non-property owners | 10,993 | 2.2 | 20,321 | 4.4 | | Community value-added services | 79,360 | 15.5 | 69,601 | 15.0 | | **Total** | **510,371** | **100.0** | **465,332** | **100.0** | Property Management Services Revenue, GFA Under Management, and Number of Projects by Developer Type (As at June 30) | Developer Type | 2025 Revenue (RMB thousand) | 2025 Number of Projects | 2025 GFA Under Management (thousand sq.m.) | 2024 Revenue (RMB thousand) | 2024 Number of Projects | 2024 GFA Under Management (thousand sq.m.) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Hongyang Group | 166,735 | 98 | 17,624 | 167,530 | 100 | 17,255 | | Third-party real estate developers | 253,283 | 225 | 30,607 | 207,880 | 199 | 29,833 | | **Total** | **420,018** | **323** | **48,231** | **375,410** | **299** | **47,088** | Property Management Services Revenue, GFA Under Management, and Number of Projects by Property Type (As at June 30) | Property Type | 2025 Revenue (RMB thousand) | 2025 Number of Projects | 2025 GFA Under Management (thousand sq.m.) | 2024 Revenue (RMB thousand) | 2024 Number of Projects | 2024 GFA Under Management (thousand sq.m.) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Residential properties | 352,785 | 252 | 43,770 | 319,418 | 243 | 42,584 | | Non-residential properties | 67,233 | 71 | 4,461 | 55,992 | 56 | 4,504 | | **Total** | **420,018** | **323** | **48,231** | **375,410** | **299** | **47,088** | Property Management Services Revenue, GFA Under Management, and Number of Projects by Geographical Distribution (As at June 30) | City | 2025 Revenue (RMB thousand) | 2025 Number of Projects | 2025 GFA Under Management (thousand sq.m.) | 2024 Revenue (RMB thousand) | 2024 Number of Projects | 2024 GFA Under Management (thousand sq.m.) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Nanjing | 118,274 | 95 | 12,962 | 134,980 | 94 | 12,966 | | Jiangsu (excluding Nanjing) | 99,567 | 81 | 14,644 | 66,213 | 75 | 13,628 | | Shanghai | 4,466 | 1 | 601 | 9,863 | 2 | 808 | | Anhui | 47,021 | 35 | 7,269 | 42,713 | 36 | 8,210 | | Shandong | 773 | 1 | 100 | – | – | – | | Hunan | 9,067 | 9 | 1,111 | 8,806 | 9 | 1,110 | | Henan | 2,164 | 1 | 239 | 2,140 | 1 | 239 | | Zhejiang | 16,559 | 11 | 1,331 | 22,796 | 15 | 1,745 | | Hubei | 76,168 | 47 | 5,617 | 59,913 | 36 | 4,558 | | Chongqing | 16,278 | 8 | 1,101 | 10,902 | 8 | 1,102 | | Guangdong | 7,634 | 6 | 685 | 745 | 3 | 411 | | Jiangxi | 4,210 | 3 | 411 | 2,814 | 6 | 685 | | Sichuan | 16,217 | 17 | 1,743 | 11,916 | 13 | 1,540 | | Shaanxi | 1,620 | 8 | 417 | 1,609 | 1 | 86 | | **Total** | **420,018** | **323** | **48,231** | **375,410** | **299** | **47,088** | - Total revenue increased by **9.7%** year-on-year to **RMB 510.4 million**, primarily due to increased revenue from property management services and community value-added services[45](index=45&type=chunk) - Property management services revenue increased by **11.9%** year-on-year to **RMB 420.0 million**, mainly due to an increase in projects[46](index=46&type=chunk) - Value-added services to non-property owners revenue decreased by **45.8%** year-on-year to **RMB 11.0 million**, primarily due to a reduction in sales venue projects[47](index=47&type=chunk) - Community value-added services revenue increased by **14.1%** year-on-year to **RMB 79.4 million**, mainly driven by increased revenue from community retail services[48](index=48&type=chunk) [Cost of Services](index=20&type=section&id=Cost%20of%20Services) - Cost of services increased by **17.5%** year-on-year to **RMB 397.0 million**, primarily due to increased staff costs and outsourcing costs for property management projects[49](index=49&type=chunk) [Gross Profit and Gross Profit Margin](index=21&type=section&id=Gross%20Profit%20and%20Gross%20Profit%20Margin) - Gross profit decreased by **11.1%** year-on-year to **RMB 113.4 million**, mainly due to increased property management service costs[50](index=50&type=chunk) Gross Profit Margin by Business Line (As at June 30) | Business Line | 2025 Gross Profit Margin (%) | 2024 Gross Profit Margin (%) | Change (percentage points) | | :--- | :--- | :--- | :--- | | Property management services | 20.0 | 26.4 | -6.4 | | Value-added services to non-property owners | 15.0 | 15.0 | 0.0 | | Community value-added services | 35.1 | 36.6 | -1.5 | | **Total** | **22.2** | **27.4** | **-5.2** | - The gross profit margin for property management services decreased by **6.4 percentage points**, mainly due to increased staff costs and outsourcing costs[51](index=51&type=chunk) - The gross profit margin for community value-added services decreased by **1.5 percentage points**, primarily due to a decrease in the average selling price of parking spaces and an increased revenue contribution from lower-margin community retail businesses[52](index=52&type=chunk) [Other Income and Gains](index=22&type=section&id=Other%20Income%20and%20Gains) - Other income and gains increased year-on-year to **RMB 1.7 million**, mainly due to increased government grants[53](index=53&type=chunk) [Administrative Expenses](index=22&type=section&id=Administrative%20Expenses) - Administrative expenses increased by **34.9%** year-on-year to **RMB 41.4 million**, primarily due to an increase in project management personnel[54](index=54&type=chunk) [Net Impairment Losses on Financial Assets](index=22&type=section&id=Net%20Impairment%20Losses%20on%20Financial%20Assets) - Net impairment losses on financial assets decreased year-on-year to **RMB 26.9 million**, mainly due to a decrease in impairment provisions for amounts due from related companies[55](index=55&type=chunk) [Profit Before Tax](index=22&type=section&id=Profit%20Before%20Tax) - Profit before tax decreased by **19.0%** year-on-year to **RMB 44.3 million**[56](index=56&type=chunk) [Income Tax Expense](index=22&type=section&id=Income%20Tax%20Expense) - Income tax expense increased by **9.0%** year-on-year to **RMB 15.8 million**, primarily due to a decrease in deferred income tax expenses[57](index=57&type=chunk) [Liquidity, Reserves and Capital Structure](index=23&type=section&id=Liquidity%2C%20Reserves%20and%20Capital%20Structure) The Group maintained a sound financial position with a **3.1%** increase in total equity and a reduced asset-liability ratio, despite lower cash balances - As at June 30, 2025, current assets were **RMB 1,307.3 million**, a slight decrease from December 31, 2024[58](index=58&type=chunk) - Cash and bank balances were **RMB 478.0 million**, a **14.7%** decrease from December 31, 2024[58](index=58&type=chunk) - The asset-liability ratio (total liabilities divided by total assets) was **40.6%**, a **4.6 percentage point** decrease from **45.2%** as at December 31, 2024[58](index=58&type=chunk) - Total equity was **RMB 937.5 million**, a **3.1%** increase from December 31, 2024, primarily due to growth from operating profit[58](index=58&type=chunk) - Trade receivables were **RMB 308.1 million**, an increase of approximately **6.3%** from December 31, 2024, mainly due to an increase in the number of projects under management[59](index=59&type=chunk) - Prepayments, other receivables, and other assets were **RMB 120.1 million**, a decrease of approximately **9.7%** from December 31, 2024, mainly due to a decrease in prepayments made to utility suppliers on behalf of customers[60](index=60&type=chunk) - Trade payables were **RMB 120.9 million**, a decrease of approximately **34.2%** from December 31, 2024, mainly due to shorter payment terms for outsourcing suppliers[61](index=61&type=chunk) - Contract liabilities were **RMB 258.0 million**, largely consistent with December 31, 2024[62](index=62&type=chunk) - Other payables and accrued expenses were **RMB 143.1 million**, a decrease of approximately **19.5%** from December 31, 2024, mainly due to a decrease in payables to utility suppliers on behalf of customers[63](index=63&type=chunk) - As at June 30, 2025, the Group had no significant contingent liabilities or guarantees[64](index=64&type=chunk) [Outlook for H2 2025](index=25&type=section&id=Outlook%20for%20H2%202025) The Group plans to enhance service innovation, optimize resource allocation, improve operational efficiency, and strengthen organizational capabilities for sustainable growth - In the second half of the year, the Group will continue to expand into new sectors, refine advantageous areas, and balance business growth with existing operations to achieve sustainable and quality growth in business scale and profit[65](index=65&type=chunk) - Core Capability Building: - **Sharpening Service Innovation**: Deepen customized standards for various property types, expand the value-added service chain, and accelerate the implementation of smart platforms and IoT tools[65](index=65&type=chunk) - **Aggregating Resource Focus**: Establish a "headquarters coordination + regional linkage" mechanism, deeply cultivate core urban clusters, expand into new scenarios such as urban services and public facilities, and address capability gaps through strategic joint ventures and acquisitions[66](index=66&type=chunk) - **Refining Efficient Operations**: Optimize the "selection, cultivation, utilization, and retention" mechanism, compile service manuals for all property types, promote mobile management platforms across all regions, and achieve online and data-driven service processes[66](index=66&type=chunk) - Focus on investment-led strategy, strengthen standard construction, promote the implementation of multi-property standardized operating guidelines, complete service plans and operational bottom-line checklists, and optimize investment mechanisms[67](index=67&type=chunk) - Enhance organizational leadership, deepen the flat organizational structure, and cultivate four key talent teams: "General Plan," "Hong Elite Plan," "Hong Steward," and "Hong Guard"[68](index=68&type=chunk) - Foster cultural cohesion, uphold the core values of "people-oriented business, integrity leads to success," with core principles of "health, striving, great love, pragmatism, simplicity, vitality, sunshine, humanistic care, cross-functional collaboration, and direct problem-solving"[69](index=69&type=chunk) [Corporate Governance / Other Information](index=28&type=section&id=Corporate%20Governance%20%2F%20Other%20Information) This section covers significant investments, employee policies, post-reporting events, dividend policy, securities transactions, foreign exchange risk, and compliance with corporate governance standards [1. Material Investments, Acquisitions and Disposals](index=28&type=section&id=1.%20Material%20Investments%2C%20Acquisitions%20and%20Disposals) The Group engaged in significant parking space transfers and equity acquisitions totaling approximately **RMB 488.61 million**, which are pending completion - On February 17, 2025, the Company entered into a parking space transfer framework agreement with Hongyang Group, whereby the Company conditionally agreed to purchase the property rights or usage rights of target parking spaces for a total consideration of approximately **RMB 230.92 million**[70](index=70&type=chunk) - Nanjing Hongshenghuo Property Consulting Co., Ltd. (an indirect wholly-owned subsidiary of the Company) entered into equity transfer agreements with indirect wholly-owned subsidiaries of Hongyang Group to acquire **70%** equity in Chengdu Hongsheng Heding Real Estate Development Co., Ltd. (consideration of approximately **RMB 142.4 million**), **20%** equity in Suqian Tongjin Hongzhiye Co., Ltd. (consideration of approximately **RMB 73.95 million**), and **19%** equity in Jurong Jinjiarun Real Estate Development Co., Ltd. (consideration of approximately **RMB 41.34 million**)[71](index=71&type=chunk) - The aforementioned acquisitions were not completed as at June 30, 2025[72](index=72&type=chunk) [2. Employees and Remuneration Policy](index=29&type=section&id=2.%20Employees%20and%20Remuneration%20Policy) The Group employs **2,799** staff, with remuneration based on performance and market rates, supported by comprehensive talent development programs Employee Headcount (As at June 30, 2025) | Category | Number of Employees | | :--- | :--- | | Total employees | 2,799 | | Residential property management and related services | 2,326 | | Non-residential property management and related services | 473 | - Employee remuneration is determined based on responsibilities, work performance, and market levels, complemented by competitive employee incentive plans and comprehensive talent development programs[73](index=73&type=chunk) - Three-tier talent development programs, "General Plan," "Hong Elite Plan," and "Hongyao Plan," are designed for key talents, alongside systematic "Hong Steward" and "Hong Master" training platforms[74](index=74&type=chunk) [3. Events After Reporting Period](index=29&type=section&id=3.%20Events%20After%20Reporting%20Period) No significant events occurred after the reporting period ended June 30, 2025 - The Company did not undertake any significant events after June 30, 2025[75](index=75&type=chunk) [4. Interim Dividends](index=30&type=section&id=4.%20Interim%20Dividends) The Board does not recommend paying any interim dividends for the six months ended June 30, 2025, consistent with the prior year - The Board does not recommend the payment of any interim dividend for the six months ended June 30, 2025 (six months ended June 30, 2024: nil)[76](index=76&type=chunk) [5. Purchase, Sale or Redemption of the Company's Listed Securities](index=30&type=section&id=5.%20Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company%27s%20Listed%20Securities) Neither the company nor its subsidiaries purchased, sold, or redeemed any listed securities during the reporting period, holding no treasury shares - During the reporting period, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities[77](index=77&type=chunk) - As at the end of the reporting period, the Company did not hold any treasury shares[77](index=77&type=chunk) [6. Exposure to Foreign Exchange Risk](index=30&type=section&id=6.%20Exposure%20to%20Foreign%20Exchange%20Risk) The Group primarily operates in China, with most transactions denominated and settled in RMB, and will continue to monitor foreign exchange activities to protect cash value - The Group primarily operates in China, with most transactions denominated and settled in RMB[78](index=78&type=chunk) - The Group will continue to monitor foreign exchange activities and make its best efforts to safeguard the Group's cash value[78](index=78&type=chunk) [7. Compliance with Corporate Governance Code](index=30&type=section&id=7.%20Compliance%20with%20Corporate%20Governance%20Code) The company adheres to the Corporate Governance Code of the HKEX Listing Rules, confirming full compliance during the reporting period - The Company has adopted the Corporate Governance Code set out in Appendix C1 to the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited as its corporate governance standards[79](index=79&type=chunk) - To the best knowledge of the Directors, the Company has complied with all applicable code provisions in Part 2 of the Corporate Governance Code during the reporting period[79](index=79&type=chunk) [8. Model Code for Securities Transactions by Directors](index=30&type=section&id=8.%20Model%20Code%20for%20Securities%20Transactions%20by%20Directors) The company adopted the Model Code for securities transactions by directors, with all directors confirming compliance during the reporting period - The Company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix C3 to the Listing Rules as the code for directors' dealings in the Company's securities[81](index=81&type=chunk) - The Directors confirm that they have complied with the required standards set out in the Model Code throughout the reporting period[82](index=82&type=chunk) [9. Audit Committee and Review of Interim Results](index=31&type=section&id=9.%20Audit%20Committee%20and%20Review%20of%20Interim%20Results) The Audit Committee, comprising four members, reviewed and confirmed the unaudited interim results for H1 2025, ensuring compliance and adequate disclosure - The Board has established an Audit Committee in accordance with the Corporate Governance Code, with primary responsibilities including reviewing and monitoring the Group's financial reporting process, internal controls, and risk management systems[83](index=83&type=chunk) - The Audit Committee consists of four members, including three independent non-executive directors and one non-executive director, with Mr. Zhao Xianbo as Chairman[83](index=83&type=chunk) - The Audit Committee has reviewed the Company's unaudited condensed consolidated interim results for the six months ended June 30, 2025, and confirmed that they comply with all applicable accounting principles, standards, and requirements, and provide adequate disclosure[83](index=83&type=chunk) [10. Publication of Interim Results and 2025 Interim Report on HKEX and Company Website](index=31&type=section&id=10.%20Publication%20of%20Interim%20Results%20and%202025%20Interim%20Report%20on%20HKEX%20and%20Company%20Website) The interim results announcement is published on the HKEX and company websites, with the full interim report to be made available to shareholders - This announcement is published on the HKEX website (www.hkexnews.hk) and the Company's website (www.rsunservice.hk)[84](index=84&type=chunk) - The Company's interim report for the six months ended June 30, 2025, will be provided to the Company's shareholders and published on the aforementioned websites in due course[84](index=84&type=chunk)

Group 1 - The company, Hongyang Services (01971.HK), will hold a board meeting on August 26, 2025, to approve its interim results for the six months ending June 30, 2025, and to consider the proposal for an interim dividend, if any [1] - The company also plans to hold another board meeting on March 25 to approve its annual results [2]

（股份代號：1971） 香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準 確 性 或 完 整 性 亦 不 發 表 任 何 聲 明，並 明 確 表 示，概 不 對 因 本 公 告 全 部 或 任 何 部 分 內 容 而 產 生或因倚賴該等內容而引致的任何損失承擔任何責任。 Redsun Services Group Limited 弘陽服務集團有限公司 （於開曼群島註冊成立的有限公司） 弘陽服務集團有限公司 曾俊凱 主 席 香港，2025年8月14日 董事會會議通告 弘 陽 服 務 集 團 有 限 公 司（「本公司」）董 事 會（「董事會」）謹 此 宣 佈，本 公 司 將 於2025 年8月26日（星 期 二）舉 行 董 事 會 會 議，藉 以 批 准（其 中 包 括）本 公 司 及 其 附 屬 公 司 截 至2025年6月30日 止 六 個 月 之 中 期 業 績 及 其 發 佈，並 考 慮 建 議 派 發 中 期 股 息（如 有）。 承董事會命 於本公告日期，曾俊凱先生為非執行董事；陳義純先生為執行董事；及王奮女士、李曉航先 生及趙現波先生為獨立非執行董事。 ...

股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 截至月份: 2025年7月31日 狀態: 新提交 FF301 II. 已發行股份及/或庫存股份變動 致：香港交易及結算所有限公司 公司名稱: 弘陽服務集團有限公司 呈交日期: 2025年8月6日 I. 法定/註冊股本變動 | 1. 股份分類 | 普通股 | 股份類別 | 不適用 | | 於香港聯交所上市 (註1) | | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 01971 | 說明 | | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | 法定/註冊股本 | | | 上月底結存 | | | 1,000,000,000 | HKD | | 0.01 HKD | | 10,000,000 | | 增加 / 減少 (-) | | | 0 | | | HKD | | 0 | | 本月底結存 | | | 1,000,000,000 | HKD | | 0.01 HKD | | 10,000,000 | ...

Project Management and Expansion - The Group managed a total of 322 projects with a contracted gross floor area (GFA) of 54.198 million sq.m., an increase of 0.55% compared to 2023[22]. - The total GFA under management reached 49.260 million sq.m., with a commercial GFA of 2.719 million sq.m., representing a 3.79% increase from 2023[22]. - Market-oriented expansion GFA accounted for 21.249 million sq.m., which is 43.1% of the total GFA under management, showing a decrease of 1.1% compared to 2023[22]. - The Group established its presence in 58 cities across China, reflecting its ongoing market expansion efforts[22]. - The overall managed projects increased to 322 across 58 cities, reflecting a strategic focus on quality and sustainable growth in property management[24][27]. - The Group consolidated its core strategy of "penetrating the Greater Jiangsu Region" and identified ten key cities for expansion, including Nanjing, Shanghai, and Wuhan[47]. - The Group has expanded its geographic presence to 58 cities in China as of December 31, 2024[66]. Financial Performance - The Group achieved revenue of RMB1,026.7 million, a decrease of 3.6% compared to 2023, and gross profit of RMB199.6 million, down 20.9% from 2023[25][27]. - Net profit reached RMB15.1 million, representing an increase of 6.3% compared to 2023[25][27]. - Total revenue for the Group in 2024 was RMB 1,026,678,000, a decrease of 3.5% from RMB 1,063,634,000 in 2023[58]. - Revenue from property management services accounted for 80.1% of total revenue in 2024, slightly up from 79.0% in 2023[58]. - Community value-added services generated RMB 161,243,000 in revenue, representing 15.7% of total revenue, compared to 14.7% in 2023[58]. - Revenue from value-added services to non-property owners decreased to RMB 42,697,000, down from RMB 66,857,000 in 2023, marking a decline of 36.1%[58]. - The Group's gross profit decreased by approximately 20.9% to RMB199.6 million from RMB252.4 million in 2023, mainly due to reduced revenue from value-added services and increased costs[79]. - The gross profit margin for the Group was 19.4%, a decrease of 4.3% from 23.7% in 2023, influenced by the withdrawal from commercial property management projects and rising staff costs[81]. Customer Satisfaction and Service Quality - Customer satisfaction remained high, with non-residential property services exceeding industry standards despite a downward trend in the market[30][32]. - The Group is committed to a "customer-centered" service philosophy, focusing on quality-driven services to enhance customer trust and brand image[30][36]. - The Group aims to improve customer satisfaction and achieve stable growth through enhanced service quality and community engagement[44]. Strategic Focus and Development - The Group emphasized quality over quantity in its development strategy, focusing on high-quality project acquisition and management[19]. - The Group's strategy included shedding low-quality projects to enhance overall management quality and efficiency[19]. - The Group's commitment to understanding customer demands and building a strong brand image contributed to its stable development[21]. - The Group plans to continue expanding its business in 2025 while ensuring sustainable and quality growth in business scale and profits[118]. - The Group aims to provide accurate and targeted services in response to market changes and customer needs in 2025[117]. - The Group's development strategy focuses on penetrating the Greater Jiangsu Region and strengthening its foothold in the Yangtze River Delta Region, seeking new opportunities in central cities[123][126]. Technology and Innovation - The Group is investing in technology to create an intelligent property platform and improve service quality through digital transformation[34][36]. - The Group will continue to focus on customer-centered service and enhance its technological investments in the future[44]. Employee Management and Governance - The Group has established a systematic and market-competitive employee incentive plan to attract and retain talent, including a three-tier talent team training project[137]. - The Group's employee compensation is determined based on responsibilities, performance, and current market levels, supported by competitive incentive plans and comprehensive talent development programs[139]. - The company is expanding its management team with experienced professionals from various sectors, enhancing its operational capabilities[199]. - The company aims to leverage Mr. Hu's extensive financial background to improve financial operations and management[199]. - The company is committed to maintaining high standards of financial accountability and transparency through its audit committee[188]. Industry Challenges - The property management industry faced increased pressure on property fee pricing and service quality requirements, leading to intensified competition in certain markets[20]. - The overall industry growth has slowed, impacting the growth of property enterprises and increasing competition for high-quality stock projects[20]. - The property management industry growth rate was lower than the actual GDP growth rate, indicating increased competition in the inventory market[44]. Corporate Governance - The Group is committed to high standards of corporate governance and has complied with all applicable code provisions during the reporting period[156]. - The audit committee confirmed compliance with all applicable accounting principles and standards for the consolidated financial statements for the year ended December 31, 2024[168]. - The audit committee is responsible for reviewing and supervising the financial reporting process and internal control systems of the Group[171].

Core Insights - 弘阳服务 reported a revenue of 1.027 billion RMB for 2024, representing a year-on-year decline of 3.6% [1] - The company is focusing on diversifying its service offerings to include various types of properties beyond residential [3] Financial Performance - Property management service revenue was 823 million RMB, down 2.1% year-on-year; non-owner value-added service revenue was 42.7 million RMB, down 36.2% due to reduced project deliveries; community value-added service revenue increased by 2.9% to 161 million RMB [1] - Gross profit for the period was 200 million RMB, a decrease of 20.9% year-on-year, with a gross margin of 19.4%, down from 23.7% in 2023 [1] - Net profit increased by 6.3% to 15.1 million RMB [1] Profit Margins - The gross margin for property management services was 17.8%, down from 22.3% in the previous year, primarily due to the exit from certain commercial property management projects and rising employee and subcontractor costs [1] - Non-owner value-added service gross margin was 10.9%, down from 15.8%, affected by declining margins on co-marketing services provided to real estate developers [1] - Community value-added service gross margin was 30.3%, down from 35.1%, mainly due to increased costs in parking space sales [1] Project Management - As of the end of 2024, the company managed 322 projects with a signed building area of approximately 54.2 million square meters, a 0.55% increase from the beginning of the year [2] - The total managed building area was approximately 49.3 million square meters, reflecting a growth of about 3.79% compared to 2023 [2] Asset and Liability Overview - The company's current assets amounted to 1.375 billion RMB, a decrease of 2.2% year-on-year; cash and cash equivalents were primarily in RMB, totaling 561 million RMB, down 12.1% [4] - The debt-to-asset ratio was 45.2%, a reduction of 1.8% from the previous year [4]