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].

截至2024年底，弘阳服务在管项目数量为322个，签约建筑面积约为5420万平方米，较期初上升约0.55%，其中在管总建筑 面积约4930万平方米，较2023年增长约3.79%。 | | | 截至2024年12月31日 | | | 截至2023年12月31日 | | | --- | --- | --- | --- | --- | --- | --- | | | | | 在管 | | | 在管 | | | 收入 | 項目數量 | 建築面積 | 收入 | 項目數量 | 建築面積 | | | (人民幣千元) | | (千平方米)(人民幣千元) | | | (千平方米) | | 住宅物業 | 729,633 | 258 | 44.165.5 | 597,291 | 232 | 40.309.6 | | 非住宅物業 | 93,105 | 64 | 5,094.9 | 242,883 | ર્ભ | 7.150.7 | | 编辑 | 822,738 | 322 | 49,260.4 | 840.174 | 298 | 47.460.3 | 弘阳服务称，公司在管非住宅物业包括办公大楼、商场及学校等。虽然住宅物业收入仍然继续 ...

Financial Performance - The group's revenue for the year ended December 31, 2024, was RMB 1,026.7 million, a decrease of 3.6% compared to RMB 1,063.6 million in the same period of 2023[2] - Gross profit was RMB 199.6 million, a decline of 20.9% from RMB 252.4 million in 2023, with a gross margin of 19.4%, down 4.3% from 23.7% in the previous year[3] - Profit for the year was RMB 15.1 million, an increase of 6.3% from RMB 14.2 million in 2023, with profit attributable to equity shareholders rising by 32.1% to RMB 14.4 million from RMB 10.9 million[3] - The group's profit before tax for 2024 was RMB 14,386,000, compared to RMB 10,865,000 in 2023, representing a year-over-year increase of approximately 32.5%[30] - The total tax expense for the year was RMB 21,362,000, down from RMB 24,651,000 in 2023, indicating a decrease of approximately 13.2%[27] - The basic earnings per share attributable to ordinary shareholders was RMB 3.47, compared to RMB 2.62 in the previous year[4] - The group did not declare or pay any dividends for the year ended December 31, 2024, consistent with the previous year[28] Revenue Breakdown - Property management services generated revenue of RMB 822.8 million, accounting for 80.1% of total revenue, down 2.1% from RMB 840.2 million in 2023[2] - Community value-added services revenue increased by 2.9% to RMB 161.2 million, representing 15.7% of total revenue, compared to RMB 156.6 million in 2023[2] - Non-owner value-added services revenue decreased to RMB 42,697,000 in 2024 from RMB 66,857,000 in 2023, a drop of 36.1%[19] - Property management service revenue for 2024 was RMB 822,738,000, down from RMB 840,174,000 in 2023, reflecting a decline of 2.6%[20] - Community value-added service revenue increased slightly to RMB 161,243,000 in 2024 from RMB 156,603,000 in 2023, a growth of 2.6%[19] Assets and Liabilities - The total assets less current liabilities amounted to RMB 939.3 million, compared to RMB 946.5 million in 2023[7] - The net asset value was RMB 909.1 million, up from RMB 898.6 million in 2023[7] - The group reported a decrease in non-current liabilities to RMB 30.2 million from RMB 47.9 million in 2023[7] - Trade receivables increased to RMB 309,736,000 in 2024 from RMB 271,834,000 in 2023, reflecting a growth of about 13.9%[32] - The total amount of prepayments and other receivables was RMB 133,010,000 in 2024, compared to RMB 123,404,000 in 2023, showing an increase of approximately 7.0%[35] - The group's cash and cash equivalents reached RMB 560.6 million as of December 31, 2024, down 12.1% from RMB 638.1 million a year earlier[60] - The group's trade payables decreased by approximately 6.2% to RMB 183.8 million as of December 31, 2024, compared to RMB 195.9 million on December 31, 2023, due to improved service quality[65] Operational Metrics - The number of projects under management as of December 31, 2024, was 322, with a contracted gross floor area of approximately 54.2 million square meters, an increase of about 3.79% from the previous year[3] - The total construction area under management grew by approximately 3.79% to about 49.3 million square meters in 2024[40] - The group has a total of 2,878 employees as of December 31, 2024, with 2,264 engaged in residential property management and related services[75] Strategic Focus - The company is focusing on expanding its presence in Jiangsu province, with a strategy to strengthen key cities such as Nanjing, Shanghai, and Suzhou[39] - The group plans to expand its market presence in Jiangsu province, focusing on high-quality basic services and exploring new products from its existing customer base[70] - The group aims for sustainable and quality growth in business scale and profits by balancing new and existing business[69] - The group emphasizes operational efficiency and governance improvements as key strategies to adapt to market changes and enhance service quality[71] - The group emphasizes enhancing service capabilities, operational efficiency, and brand strength to become a respected life operation service provider by 2025[73] Governance and Compliance - The company has not early adopted any new or revised International Financial Reporting Standards that may significantly impact future financial statements[13] - The company is evaluating the specific impact of IFRS 18 on its consolidated financial statements, which will take effect in 2027[14] - The audit committee has reviewed the consolidated financial statements for the year ending December 31, 2024, confirming compliance with applicable accounting principles and sufficient disclosures[91] - The audit committee consists of four members, including three independent non-executive directors and one non-executive director, with Mr. Zhao Xianbo serving as the chairman[91] - The group is committed to high standards of corporate governance to protect shareholder interests and enhance corporate value[85] Future Outlook - The group has not made any significant investments, acquisitions, or disposals during the reporting period[74] - The annual general meeting is scheduled for June 25, 2025[87] - The annual report will be sent to shareholders in a timely manner and published on the company’s website by the end of April 2025[93] - The company expresses sincere gratitude to all parties for their support in the 2024 fiscal year and acknowledges the contributions of all employees[94]

物业行业频繁的人事变动持续到了年末。 据物聊社不完全统计，9月至今便有17家上市物企发布人事变动公告，涉及人数达34人，变动方式包括 辞任、升任、调任、委任等。 除了管理层人员内部调整或供职公司变动，地产二代们接棒物企运营事务的消息也不少。 就下半年而言，滨江服务控股股东戚金兴之子戚加奇调任执行董事，正式走到台前；润华服务的股权也 通过家族信托操作由一代栾涛交到二代栾航乾手上。 不过，有的二代还在接班的路上，有的二代正忙着从台前退下来。 11月20日晚间，弘阳服务发布人事变动公告，弘阳集团的"准接班人"曾子熙因个人事务繁忙辞任物业公 司执行董事、副总裁及董事会薪酬委员会成员职务。 "错位"接班 弘阳创始人曾焕沙共有一子一女，1993年出生的曾子熙今年才31岁，已于弘阳集团不同岗位供职8年。 和大部分接班人不同的是，曾子熙大学所修并非刻板印象中的金融、管理专业，而是看起来与运营家族 企业并无干系的广播电视新闻学。 只是，曾子熙还是选择了担当起父亲的"左膀右臂"，传播系出身的她曾在农银国际控股有限公司担任分 析师，负责证券交易结算及账户维护。 到了2016年，刚毕业不久的曾子熙正式进入弘阳集团工作，在南京弘阳广场 ...

O RSUN SERVICE REDSUN SERVICES GROUP LIMITED 弘陽服務集團有限公司 (incorporated in the Cayman Islands with limited liability) (於開曼群島註冊成立的有限公司) Stock Code 股份代號： 1971 2024 INTERIM REPORT 中期報告 CONTENTS 錄 02 Corporate Information 公司資料 06 Financial Highlights 財務摘要 08 Management Discussion and Analysis 管理層討論與分析 26 Corporate Governance/Other Information 企業管治╱其他資料 32 Interim Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income 中期簡明綜合損益及其他全面收入表 33 Interim Condensed Consolidated Statement of Financ ...

Financial Performance - The group's revenue for the six months ended June 30, 2024, was RMB 465.3 million, a decrease of 14.4% compared to RMB 543.7 million in the same period of 2023[1] - Profit for the period was RMB 40.1 million, a decrease of 28.0% from RMB 55.7 million in 2023, with profit attributable to equity shareholders of RMB 36.6 million, down 31.0% from RMB 53.0 million[2] - The group reported a basic and diluted earnings per share of RMB 0.09 for the period, down from RMB 0.13 in 2023[4] - For the six months ended June 30, 2024, the total revenue was approximately RMB 465,332,000, a decrease of 14.4% compared to RMB 543,711,000 for the same period in 2023[16] - The total income tax expense for the six months ended June 30, 2024, is RMB 14,515,000, a decrease from RMB 16,436,000 for the same period in 2023[19] - Basic earnings per share for the six months ended June 30, 2024, is RMB 0.088, down from RMB 0.128 for the same period in 2023, based on a weighted average of 415,000,000 shares[21] - Profit before income tax expenses was RMB 54.6 million, a decline of approximately 24.3% from RMB 72.2 million in 2023[45] Revenue Breakdown - Property management services generated revenue of RMB 375.4 million, accounting for 80.6% of total revenue, down 13.0% from RMB 431.4 million in 2023[1] - Non-owner value-added services revenue decreased to RMB 20,321,000 from RMB 39,353,000, a drop of 48.3%[16] - Community value-added services revenue was RMB 69,601,000, slightly down from RMB 72,942,000, a decrease of 4.8%[16] - Property management service revenue for the same period was RMB 375.4 million, down 13.0% from RMB 431.4 million in 2023, primarily due to the exit from certain commercial property management projects[38] - Non-owner value-added service revenue decreased by 48.4% to RMB 20.3 million from RMB 39.4 million in 2023, attributed to a reduction in project services[39] - Community value-added service revenue was RMB 69.6 million, a decrease of 4.6% from RMB 72.9 million in 2023, mainly due to reduced income from parking space sales and leasing agency services[40] Cost and Profitability - Gross profit was RMB 127.5 million, an increase of 5.9% from RMB 120.4 million in 2023, with a gross margin of 27.4%, up 5.3 percentage points from 22.1% in 2023[2] - The cost of services provided was RMB 337,795,000, down from RMB 423,311,000, reflecting a reduction of 20.2%[17] - The company's sales and service costs were RMB 337.8 million, down approximately 20.2% from RMB 423.3 million in 2023, due to the exit from certain commercial property management projects and reduced employee and outsourcing costs[41] - Administrative expenses decreased by approximately 22.5% to RMB 30.7 million from RMB 39.7 million in 2023, attributed to enhanced cost control measures[43] - The overall gross margin improved to 27.4%, up 5.3 percentage points from 22.1% in 2023, primarily due to an increase in property management service gross margin[42] Assets and Liabilities - Total assets less current liabilities amounted to RMB 977.5 million as of June 30, 2024, compared to RMB 946.5 million as of December 31, 2023[6] - The net asset value was RMB 938.7 million as of June 30, 2024, an increase from RMB 898.6 million as of December 31, 2023[6] - Trade receivables at the end of the reporting period amount to RMB 330,479,000, an increase from RMB 254,638,000 as of December 31, 2023[22] - Trade payables at the end of the reporting period total RMB 202,305,000, up from RMB 195,871,000 as of December 31, 2023[25] - The total amount of other payables and accrued expenses is RMB 159,558,000 as of June 30, 2024, down from RMB 204,662,000 as of December 31, 2023[27] - Contract liabilities rose by about 0.6% to RMB 254.2 million from RMB 252.6 million as of December 31, 2023, due to business expansion and an increase in managed property projects[51] Strategic Focus and Operations - The company is focusing on a strategy of "deepening the Yangtze River Delta" and optimizing resource allocation in key urban areas[29] - The company aims to enhance customer satisfaction by optimizing service standards and leveraging AI to improve customer service experience[56] - The group focuses on deepening value-added services, leveraging market research to enhance product quality and service supply chains, resulting in reverse growth in certain business segments[60] - The group is actively integrating resources with community hospitals and care centers to provide a comprehensive suite of services, aiming to alleviate on-site medical pressure and optimize resource utilization[61] - In 2024, the group will prioritize data governance to ensure accuracy and timeliness, enhancing data asset utilization through an operational analysis platform for precise decision-making support[62] - The group maintains a flat organizational structure to enhance efficiency, focusing on talent allocation to strengthen key roles and foster innovation[63] - The group emphasizes a core value of integrity and aims to become a respected service provider in quality living through enhanced service capabilities and brand strength by the second half of 2024[64] Corporate Governance - The company is committed to high standards of corporate governance to safeguard shareholder interests and enhance corporate value[71] - The Audit Committee has been established according to corporate governance guidelines, consisting of four members, with Mr. Zhao Xianbo as the chairman[73] - The Audit Committee reviewed the unaudited condensed interim results for the six months ended June 30, 2024, confirming compliance with applicable accounting principles and full disclosure[73] - The interim report for the six months ended June 30, 2024, will be made available to shareholders and published on the company's website and the Hong Kong Stock Exchange[74] Employment and Workforce - As of June 30, 2024, the group employed 3,122 staff, with a competitive compensation structure based on responsibilities and market levels to attract and retain talent[66] Dividend Policy - The board of directors did not recommend the payment of any interim dividend for the six months ended June 30, 2024[2] - The company has decided not to declare an interim dividend for the six months ended June 30, 2024, compared to no dividend declared for the same period in 2023[20] - The group has not declared any interim dividends for the six months ending June 30, 2024[68]

Financial Performance - The Group achieved revenue of RMB 1,063.6 million, a decrease of 3.6% compared to 2022, with a gross profit of RMB 252.4 million, down 1.5%, and a net profit of RMB 14.2 million, representing a significant decrease of 84.8%[28][31]. - The Group's total revenue for the Reporting Period was RMB 1,063.6 million, a decrease of 3.6% from RMB 1,103.1 million in the corresponding period of 2022[81]. - Revenue from property management services increased by 0.7% to RMB 840.2 million, up from RMB 834.7 million in 2022, driven by a rapid increase in total GFA under management[82]. - Revenue from value-added services to non-property owners decreased by 46.3% to RMB 66.9 million, down from RMB 124.6 million in 2022, primarily due to a reduction in sales venue projects[83]. - Revenue from community value-added services grew by 8.9% to RMB 156.6 million, compared to RMB 143.8 million in the previous year, attributed to increased revenue from project common area resources[84]. - The Group's gross profit decreased by approximately 1.5% from RMB 256.4 million in 2022 to RMB 252.4 million in 2023, mainly due to decreased revenue from value-added services to non-property owners[92]. - The gross profit margin for the Group increased to 23.7%, up 0.5 percentage points from 23.2% in 2022, attributed to improved margins in property management and community value-added services[95]. Project Management and Expansion - In 2023, the Group managed 298 projects with a total contracted gross floor area (GFA) of 53.901 million sq.m., and a total GFA under management of 47.460 million sq.m., representing decreases of 1.7% and 12.4% respectively compared to 2022[24]. - The Group expanded its presence in 56 cities with 298 projects under management, while the contracted area decreased by 1.7% to 53.901 million square meters[26]. - The total managed area was 47.46 million square meters, with a commercial managed area of 3.296 million square meters, which decreased by 12.4% compared to 2022[26]. - The Group launched several new non-residential projects, including a hotel, hospital, super high-rise, and industrial park, marking a leap in the expansion of non-residential property services[29][31]. - The Group's core strategy focuses on deeper development in Jiangsu and expanding into the Yangtze River Delta region, enhancing its competitive advantage[51]. - The Group aims to enrich its business chains and enhance competitiveness in response to market demands[21]. Market Conditions and Industry Trends - The property management industry experienced a series of favorable policies in 2023, promoting healthy and rapid development despite ongoing pressures in the upstream real estate sector[22]. - The overall management scale growth rate has declined due to increased competition in the stock market[22]. - The property mergers and acquisition market in 2023 became more cautious, with a focus on "scale type" M&A in characteristic subdivision tracks[47]. - The overall strength in the property management industry has slowed down due to increased competition and pressure from the upstream real estate market[46]. Customer Focus and Service Quality - The Group defined 2023 as the "Customer Value Year," focusing on quality services and expanding into core cities while integrating smart technology[23]. - Customer satisfaction remained high despite industry challenges, with non-residential service satisfaction exceeding industry levels[33][36]. - The service content, standardization, and quality have been increasingly emphasized in the property management industry[21]. - The Group is focusing on a "property services + life services" model to enhance value-added services, including property decoration and housing rental[30][32]. - The Group aims to achieve continuous improvement in service quality and customer reputation through diversified value-added services and intelligent platforms[153]. Financial Position and Assets - The Group's current assets increased to RMB 1,406.5 million as of December 31, 2023, compared to RMB 1,295.3 million as of December 31, 2022[113]. - Cash and cash equivalents rose by 16.9% to RMB 638.1 million as of December 31, 2023, from RMB 545.7 million as of December 31, 2022[113]. - The gearing ratio increased to 47.0% as of December 31, 2023, up 3.3 percentage points from 43.7% as of December 31, 2022[113]. - Total equity increased by 0.9% to RMB 898.6 million as of December 31, 2023, from RMB 890.2 million as of December 31, 2022, mainly due to growth in operating profit[114]. Employee and Talent Management - The Group has a total of 3,203 employees as of December 31, 2023, with 2,515 in residential property management, 307 in commercial property management, and 381 in public construction property management[163]. - The Group is implementing a systematic talent cultivation scheme to enhance team capabilities and secure talent demand across various business segments[165]. - The Group has adopted a systematic talent development plan to enhance team capabilities and support business growth[168]. Future Outlook and Strategic Initiatives - Looking ahead to 2024, the Group aims to improve quality and efficiency, enhance customer satisfaction, and achieve stable growth[40][42]. - The Group plans to deepen development in Jiangsu and expand in the Yangtze River Delta region, focusing on targeted development in other central cities[140]. - The Group intends to incubate new products and innovate new types of businesses to increase service project numbers and generate economies of scale[141]. - The Group is committed to enhancing management efficiency through digital information system upgrades, aiming for data accuracy and improved utilization of data assets in 2024[154]. Corporate Governance and Compliance - The audit committee has reviewed the Company's consolidated financial statements for the year ended December 31, 2023, confirming compliance with all applicable accounting principles and standards[198]. - The audit committee consists of four members, including three independent non-executive Directors and one non-executive Director, chaired by Mr. Zhao Xianbo[197]. - The Company has adopted the Model Code for Securities Transactions by Directors, confirming compliance during the Reporting Period[200].

Revenue and Profitability - The group's revenue reached RMB 1,063.6 million, a decrease of 3.6% compared to RMB 1,103.1 million in the same period of 2022[2] - Profit for the period was RMB 14.2 million, a significant decrease of 84.8% from RMB 93.9 million in 2022, with profit attributable to equity shareholders of RMB 10.9 million, down 88.2% from RMB 92.0 million[3] - Total revenue for 2023 was RMB 1,063,634 thousand, a decrease of 3.4% from RMB 1,103,122 thousand in 2022[24] - Other income totaled RMB 9,720 thousand in 2023, down 42.1% from RMB 16,830 thousand in 2022, primarily due to a decrease in government grants and the sale of subsidiaries[29] - The group reported a pre-tax profit of RMB 10,865 thousand for 2023, a significant decline from RMB 91,990 thousand in 2022[37] Revenue Breakdown - Property management services generated revenue of RMB 840.2 million, accounting for 79.0% of total revenue, an increase of 0.7% from RMB 834.7 million in 2022[2] - Community value-added services achieved revenue of RMB 156.6 million, representing 14.7% of total revenue, an increase of 8.9% from RMB 143.8 million in 2022[2] - Property management service revenue was RMB 840,174 thousand, slightly up from RMB 834,730 thousand in 2022, while non-owner value-added services dropped to RMB 66,857 thousand from RMB 124,612 thousand[24] - Non-owner value-added services revenue decreased by 46.3% to RMB 66.9 million from RMB 124.6 million, primarily due to a reduction in project deliveries and fewer on-site projects[75] Financial Position - The total assets less current liabilities amounted to RMB 946.5 million, compared to RMB 955.8 million in 2022[9] - The net asset value was RMB 898.6 million, slightly up from RMB 890.2 million in the previous year[9] - The group's cash and cash equivalents reached RMB 638.1 million as of December 31, 2023, an increase of 16.9% from RMB 545.7 million in 2022[88] - The group's total liabilities to total assets ratio increased by 3.3 percentage points to 47.0% as of December 31, 2023, compared to 43.7% in 2022[88] Trade Receivables and Payables - The group reported a significant increase in trade receivables, which rose to RMB 254.6 million from RMB 191.0 million in 2022[8] - Trade receivables increased to RMB 271,834 thousand in 2023 from RMB 200,284 thousand in 2022, with a net value of RMB 254,638 thousand after impairment[38] - The expected credit loss rate for trade receivables was 6.33% as of December 31, 2023, compared to 4.63% in 2022[41] - Trade payables increased to RMB 195.871 million in 2023, up from RMB 151.139 million in 2022[46] Operational Metrics - As of December 31, 2023, the group managed 298 projects with a contracted area of approximately 53.9 million square meters, of which the area under management was approximately 47.5 million square meters, representing a growth of about 5.8% from December 31, 2022[3] - The company managed projects in 298 locations across 56 cities, with a total managed area of 53.901 million square meters, a 1.7% decrease from 2022[52] - The total construction area under management was 47.460 million square meters, with a 12.4% decline from the previous year[52] Cost Management - The company's sales and service costs were RMB 811.2 million, a decrease of approximately 4.2% from RMB 846.8 million in the previous year, mainly due to lower employee and subcontracting costs[77] - Administrative expenses decreased by approximately 24.7% to RMB 99.9 million from RMB 132.7 million in 2022, mainly due to the upgrade of the management system and enhanced cost control[84] Corporate Governance and Compliance - The audit committee has reviewed the consolidated financial statements for the year ended December 31, 2023, confirming compliance with applicable accounting principles and sufficient disclosures[129] - The company has adopted the corporate governance code and has complied with all applicable provisions during the reporting period[122] Future Outlook and Strategy - The strategic focus for 2024 includes enhancing customer satisfaction and achieving stable growth in scale[59] - The company plans to expand its market presence primarily in Jiangsu Province, integrating resources to provide high-quality basic services and enhance service project quantity[100] - Continuous improvement in operational efficiency will be achieved through standardized service systems and enhanced training programs for key personnel[101] - The company aims to develop new business avenues, such as community retail and smart services, to meet diverse customer needs and enhance customer satisfaction[103] Employee and Talent Management - The workforce consists of 3,203 employees, with 2,515 in residential property management, 307 in commercial property management, and 381 in public building management[110] - The company has established a systematic and competitive employee incentive plan to attract and retain talent, enhancing team capabilities for business development[111]

Financial Performance - The Group's revenue for the six months ended June 30, 2023, was RMB 543.7 million, a decrease of 1.8% compared to RMB 553.9 million for the same period in 2022[13]. - Profit for the reporting period was RMB 55.7 million, a decrease of 24.1% compared to RMB 73.4 million for the same period in 2022[14]. - The Group achieved revenue of RMB 543.7 million, with a gross profit of RMB 120.4 million, reflecting a decrease of approximately 20.2% compared to June 30, 2022[23]. - Net profit for the period was RMB 55.7 million, representing a decrease of approximately 24.1% compared to June 30, 2022[23]. - The Group's gross profit decreased by approximately 20.2% to RMB 120.4 million from RMB 150.8 million in the same period last year, attributed to lower revenue from value-added services and increased subcontracting costs[56][57]. - The overall gross profit margin was 22.1%, down 5.1 percentage points from 27.2% in 2022, reflecting declines across all service lines[59][61]. - The profit for the period was RMB 55,716,000, representing a decrease of 24.2% from RMB 73,409,000 in the prior year[181]. - Earnings per share attributable to ordinary equity holders of the parent was RMB 0.13, down from RMB 0.17 in the same period last year[181]. Revenue Breakdown - Revenue from property management services was RMB 431.4 million, accounting for 79.4% of total revenue, representing an increase of 6.7% from RMB 404.2 million in the same period of 2022[13]. - Revenue from value-added services to non-property owners decreased to RMB 39,353,000, representing 7.2% of total revenue, down from 13.5% in 2022[34]. - Community value-added services generated RMB 72,942,000, maintaining a stable contribution of 13.4% to total revenue[34]. - Revenue from residential properties was RMB 316,090,000, while commercial properties contributed RMB 101,350,000[41]. - Revenue from third-party property developers was RMB 218,238,000, with 179 projects under management[37]. - Revenue from joint ventures and associates was RMB 49,615,000, with 47 projects managed[37]. Operational Metrics - The Group had contracted GFA of approximately 53.6 million sq.m., a decrease of approximately 5.8% from 56.9 million sq.m. as of June 30, 2022[14]. - The number of projects under management was 287, with GFA under management of approximately 45.8 million sq.m., an increase of approximately 2.0% from 44.9 million sq.m. as of June 30, 2022[14]. - Total GFA under management amounted to approximately 45.8 million sq.m., representing an increase of approximately 2.0% compared to June 30, 2022[23]. - The number of projects under property management increased to 287 as of June 30, 2023, compared to 307 in the same period of 2022[41]. - The Group managed a total GFA of 45,773,000 sq.m. as of June 30, 2023, an increase from 44,879,000 sq.m. in 2022[41]. Cost and Expenses - Administrative expenses decreased by approximately 30.6% to RMB 39.7 million from RMB 57.1 million in 2022, mainly due to management system upgrades and enhanced cost control[66][71]. - Other income and net income amounted to RMB 2.65 million, down from RMB 5.66 million in the previous year, primarily due to reduced government grants[65][70]. - Net impairment losses on financial assets increased to RMB 9.4 million from RMB 4.0 million in the prior year, mainly due to the aging of trade receivables[67]. - The company reported impairment losses on financial assets of RMB 9,372,000, an increase from RMB 3,978,000 in the previous year[181]. Strategic Focus - The Group's business model focuses on "penetrating the Greater Jiangsu Region, strengthening foothold in the Yangtze River Delta Region, and expanding into major metropolitan areas" while adhering to a "customer-centric" service philosophy[24]. - The Group aims to expand its non-residential properties by focusing on quality and utilizing a service benchmark model to accelerate market-oriented expansion[99]. - The Group will continue to enhance customer satisfaction and loyalty by adhering to a "customer-centric" service philosophy and improving service standards across all property types[98]. - The Group plans to enhance management density in the non-residential sector, particularly in schools, hospitals, and public properties, to achieve organic growth[103]. - The Group will implement a light asset operating model to develop community value-added services, improving operational capabilities in asset destocking and leasing[114]. Market Outlook - The property management industry is expected to focus on service quality improvement, single-project profitability, and brand value enhancement for stable growth in the second half of 2023[92][96]. - The overall growth rate of the property management industry is anticipated to slow significantly compared to the corresponding period in 2022, returning to a focus on high-quality and steady development[92][96]. - The property management industry is facing uncertainties, but the Group remains optimistic about future growth by enhancing service and management capabilities[129]. Employee and Governance - As of June 30, 2023, the Group employed a total of 3,206 employees, with 2,547 in residential property management, 334 in commercial property management, and 325 in public building property management[133]. - The company’s total liabilities decreased from RMB 955,833,000 to RMB 997,023,000, indicating a slight increase of approximately 4.3%[183]. - The company has complied with the Corporate Governance Code during the reporting period[150]. - The company reported a total comprehensive income for the period of RMB 53,015,000, contributing to the overall growth in retained profits[186]. Cash Flow and Assets - Cash flows used in operating activities amounted to RMB 107,053,000, significantly higher than RMB 27,836,000 in the same period last year[191]. - Cash and cash equivalents at the end of the period were RMB 420,144,000, down from RMB 721,869,000 at the end of June 2022[191]. - Current assets increased to RMB 1,364,214,000 from RMB 1,295,259,000, reflecting a growth of about 5.3%[183]. - Trade receivables rose significantly to RMB 257,952,000, up from RMB 191,010,000, indicating an increase of approximately 35%[183].

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之內容概不負責，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 容而引致之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） （股份代號：1971） 截至2023年6月30日止六個月的中期業績公告 摘要 截至2023年6月30日止六個月，本集團業績如下： 1. 本集團收入達人民幣543.7百萬元，較2022年同期收入人民幣553.9百萬元下降1.8%。 2. 本集團業務分佈收入如下： 1) 物業管理服務實現收入人民幣431.4百萬元，佔總收入79.4%，較2022年同期收 入人民幣404.2百萬元增加6.7%； 2) 非業主增值服務實現收入人民幣39.4百萬元，佔總收入7.2%，較2022年同期收 入人民幣75.1百萬元減少47.6%； ...