Redsun Services Group Limited 弘陽服務集團有限公司 (Incorporated in 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) N O T I F I C AT I O N L E T T E R 通 知 信 函 Dear Registered Shareholders, Redsun Services Group Limited (the "Company") – Notice of Publication of Interim Report 2025 (the "Current Corporate Communications") The Current Corporate Communications of the Company have been published in English and Chinese languages and are available on the website of The Stock Exchange of Hon ...

[Corporate Information](index=2&type=section&id=Corporate%20Information) The company's corporate information details its board, committees, auditors, legal advisers, registered and principal business offices, and other key administrative data [Board of Directors](index=3&type=section&id=Board%20of%20Directors) The company's board comprises non-executive, executive, and independent non-executive directors - The Board of Directors includes a non-executive director (Chairman), an executive director, and independent non-executive directors[3](index=3&type=chunk) [Committees](index=3&type=section&id=Committees) Audit, Nomination, and Remuneration Committees are chaired by specific directors to ensure effective corporate governance - The Audit Committee is chaired by Mr. Zhao Xianbo, the Nomination Committee by Mr. Zeng Juncai, and the Remuneration Committee by Ms. Wang Fen[3](index=3&type=chunk) [Auditor and Legal Advisers](index=3&type=section&id=Auditor%20and%20Legal%20Advisers) The company's auditor is CCTH CPA Limited, with legal advisers for Hong Kong and Cayman Islands law - The auditor is CCTH CPA Limited (中正天恆會計師有限公司)[4](index=4&type=chunk) - The Hong Kong legal adviser is Paul Hastings (Hong Kong) LLP (普衡律師事務所(香港)有限法律責任合夥)[5](index=5&type=chunk) - The Cayman Islands legal adviser is Walkers (Hong Kong)[5](index=5&type=chunk) [Registered and Business Offices](index=4&type=section&id=Registered%20and%20Business%20Offices) The company's registered office is in the Cayman Islands, with main business operations in Nanjing and Hong Kong - The registered office is located in the Cayman Islands[7](index=7&type=chunk) - The principal place of business and headquarters in China are located at 25th Floor, Hongyang Building, No. 9 Daqiao North Road, Nanjing, Jiangsu Province[7](index=7&type=chunk) - The principal place of business in Hong Kong is located at Room 2612, 26th Floor, China Merchants Tower, Shun Tak Centre, Sheung Wan[9](index=9&type=chunk) [Other Corporate Information](index=5&type=section&id=Other%20Corporate%20Information) Details joint company secretaries, authorized representatives, principal bankers, and stock code - The joint company secretaries are Mr. Jia Hongbo and Ms. Chen Zhuoman[9](index=9&type=chunk) - The authorized representatives are Mr. Zeng Juncai and Ms. Chen Zhuoman[9](index=9&type=chunk) - The principal bankers are Agricultural Bank of China Nanjing Qiaobei Sub-branch and Industrial and Commercial Bank of China Nanjing Qiaobei Sub-branch[10](index=10&type=chunk) - The stock code is HKEX: 1971[10](index=10&type=chunk) [Financial Highlights](index=7&type=section&id=Financial%20Highlights) The company experienced revenue growth but declines in gross profit and net profit for the six months ended June 30, 2025 2025 First Half Key Financial Indicators | Indicator | 2025 First Half (RMB million) | 2024 Same Period (RMB million) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 510.4 | 465.3 | +9.7% | | 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 Equity Holders | 24.4 | 36.6 | -33.2% | 2025 First Half Revenue by Business Segment | Business Segment | 2025 First Half Revenue (RMB million) | % of Total Revenue | 2024 Same Period Revenue (RMB million) | YoY Change (%) | | :--- | :--- | :--- | :--- | :--- | | Property Management Services | 420.0 | 82.3% | 375.4 | +11.9% | | Non-Owner Value-Added Services | 11.0 | 2.2% | 20.3 | -45.8% | | Community Value-Added Services | 79.4 | 15.5% | 69.6 | +14.1% | - As of June 30, 2025, contracted GFA was approximately **49.9 million sq.m.**, a decrease of approximately **3.7%** compared to the same period in 2024[13](index=13&type=chunk) - As of June 30, 2025, GFA under management was approximately **48.2 million sq.m.**, an increase of approximately **2.3%** compared to the same period in 2024[13](index=13&type=chunk) - The Board does not recommend the payment of any interim dividend for the six months ended June 30, 2025[13](index=13&type=chunk) [Management Discussion and Analysis](index=9&type=section&id=Management%20Discussion%20and%20Analysis) This section reviews the first half of 2025, detailing business and financial performance, future outlook, significant transactions, and human resource policies [Review for the First Half of 2025](index=9&type=section&id=Review%20for%20the%20First%20Half%20of%202025) The property management industry faced macroeconomic pressures, shifting from scale expansion to quality-driven growth and smart transformation - The property management industry's scale expansion logic has been reshaped, with leading enterprises focusing on core city clusters and a slowdown in GFA growth[14](index=14&type=chunk)[18](index=18&type=chunk) - Service price structural differentiation is evident, regional development imbalances are prominent, and the industry is accelerating its transformation from scale-driven to quality-driven competition[14](index=14&type=chunk)[18](index=18&type=chunk) - At the policy level, intelligent transformation has become a mandatory requirement, with enterprises failing to meet standards facing market elimination risks[15](index=15&type=chunk)[19](index=19&type=chunk) - In the first half of the year, the Group adhered to its strategic layout of "penetrating Greater Jiangsu, deeply cultivating the Yangtze River Delta, and strengthening central cities," transitioning from scale expansion to quality and efficiency-driven development[16](index=16&type=chunk)[19](index=19&type=chunk) - In the diversified property types sector, new school and data center property types were added, effectively offsetting cyclical industry risks, and the investment segment achieved considerable returns through precise layout around new property types[17](index=17&type=chunk)[20](index=20&type=chunk) - The Group ranked **16th** among the "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"[25](index=25&type=chunk)[28](index=28&type=chunk) - As of June 30, 2025, the Group provided services to **47 cities** nationwide, with **340 contracted projects**, a contracted GFA of approximately **49.9 million sq.m.** (a **3.7%** YoY decrease), and a total GFA under management of approximately **48.2 million sq.m.** (a **2.3%** YoY increase)[26](index=26&type=chunk)[28](index=28&type=chunk) [Business Review](index=12&type=section&id=Business%20Review) The group's strategy focuses on property management, non-owner value-added, and community value-added services, with residential and third-party projects dominating - The Group's business model revolves around a "customer-centric" service philosophy, deepening the Hongyang model, and providing property management services, non-owner value-added services, and community value-added services[30](index=30&type=chunk)[32](index=32&type=chunk) - Property management services include security, cleaning, landscaping, facility management, customer service, and maintenance, covering residential, commercial, office buildings, industrial parks, and schools[31](index=31&type=chunk)[32](index=32&type=chunk) - Non-owner value-added services include consulting for other property management companies, preliminary planning and design consulting for real estate developers, co-selling services, acceptance services, and property maintenance services[33](index=33&type=chunk)[35](index=35&type=chunk) - Community value-added services include eight major categories: real estate agency, home beautification, community convenience, public area value-added, intelligent services, retail services, asset management services, and home decoration services[34](index=34&type=chunk)[35](index=35&type=chunk) Total Revenue Breakdown by Business Line (For the six months ended June 30, 2025) | Business Line | Revenue (RMB thousand) | % of Total | | :--- | :--- | :--- | | Property Management Services | 420,018 | 82.3 | | Non-Owner Value-Added Services | 10,993 | 2.2 | | Community Value-Added Services | 79,360 | 15.5 | | **Total** | **510,371** | **100.0** | Property Management Services Revenue, GFA Under Management, and Project Count by Developer Type (As of June 30, 2025) | Developer Type | Revenue (RMB thousand) | Project Count | GFA Under Management (thousand sq.m.) | | :--- | :--- | :--- | :--- | | Hongyang Group | 166,735 | 98 | 17,624 | | Third-Party Real Estate Developers | 253,283 | 225 | 30,607 | | - Third-Party Developers | 168,934 | 170 | 22,017 | | - Joint Ventures and Associates of Hongyang Group | 84,349 | 55 | 8,590 | | **Total** | **420,018** | **323** | **48,231** | Property Management Services Revenue, GFA Under Management, and Project Count by Property Type (As of June 30, 2025) | Property Type | Revenue (RMB thousand) | Project Count | GFA Under Management (thousand sq.m.) | | :--- | :--- | :--- | :--- | | Residential Properties | 352,785 | 252 | 43,770 | | Non-Residential Properties | 67,233 | 71 | 4,461 | | **Total** | **420,018** | **323** | **48,231** | Property Management Services Revenue, GFA Under Management, and Project Count by Geographical Distribution (As of June 30, 2025) | City | Revenue (RMB thousand) | Project Count | GFA Under Management (thousand sq.m.) | | :--- | :--- | :--- | :--- | | Nanjing | 118,274 | 95 | 12,962 | | Jiangsu (excluding Nanjing) | 99,567 | 81 | 14,644 | | Shanghai | 4,466 | 1 | 601 | | Anhui | 47,021 | 35 | 7,269 | | Shandong | 773 | 1 | 100 | | Hunan | 9,067 | 9 | 1,111 | | Henan | 2,164 | 1 | 239 | | Zhejiang | 16,559 | 11 | 1,331 | | Hubei | 76,168 | 47 | 5,617 | | Chongqing | 16,278 | 8 | 1,101 | | Guangdong | 7,634 | 6 | 685 | | Jiangxi | 4,210 | 3 | 411 | | Sichuan | 16,217 | 17 | 1,743 | | Shaanxi | 1,620 | 8 | 417 | | **Total** | **420,018** | **323** | **48,231** | [Financial Review](index=17&type=section&id=Financial%20Review) Revenue increased due to property management and community services, but higher costs led to reduced gross profit and net profit, while the debt-to-asset ratio improved - Total revenue was **RMB 510.4 million**, a year-on-year increase of **9.7%**, primarily due to increased revenue from property management services and community value-added services[47](index=47&type=chunk)[52](index=52&type=chunk) - Revenue from property management services was **RMB 420.0 million**, a year-on-year increase of **11.9%**, mainly due to an increase in property management projects[48](index=48&type=chunk)[53](index=53&type=chunk) - Revenue from non-owner value-added services was **RMB 11.0 million**, a year-on-year decrease of **45.8%**, primarily due to a reduction in on-site projects served[49](index=49&type=chunk)[54](index=54&type=chunk) - Revenue from community value-added services was **RMB 79.4 million**, a year-on-year increase of **14.1%**, mainly due to increased revenue from community retail services[50](index=50&type=chunk)[55](index=55&type=chunk) - Cost of services was **RMB 397.0 million**, an increase of approximately **17.5%** year-on-year, primarily due to increased staff costs and outsourcing costs for property management projects[51](index=51&type=chunk)[56](index=56&type=chunk) - Gross profit was **RMB 113.4 million**, a year-on-year decrease of **11.1%**, and the gross profit margin was **22.2%**, a year-on-year decrease of **5.2 percentage points**, mainly due to increased costs for property management services[57](index=57&type=chunk)[58](index=58&type=chunk)[60](index=60&type=chunk)[61](index=61&type=chunk) Gross Profit Margin by Business Line (For the six months ended June 30, 2025) | Business Line | 2025 Gross Profit Margin (%) | 2024 Gross Profit Margin (%) | | :--- | :--- | :--- | | Property Management Services | 20.0% | 26.4% | | Non-Owner Value-Added Services | 15.0% | 15.0% | | Community Value-Added Services | 35.1% | 36.6% | | **Total** | **22.2%** | **27.4%** | - Administrative expenses were **RMB 41.4 million**, an increase of approximately **34.9%** year-on-year, mainly due to an increase in project management personnel[65](index=65&type=chunk)[69](index=69&type=chunk) - Net impairment losses on financial assets were **RMB 26.9 million**, a decrease from **RMB 40.9 million** in the same period of 2024, primarily due to a decrease in impairment provisions for receivables from related companies[70](index=70&type=chunk)[74](index=74&type=chunk) - Profit before tax was **RMB 44.3 million**, a year-on-year decrease of approximately **19.0%**[71](index=71&type=chunk)[75](index=75&type=chunk) - Income tax expense was **RMB 15.8 million**, a year-on-year increase of approximately **9.0%**, mainly due to a decrease in deferred income tax expenses recognized in the current period[72](index=72&type=chunk)[76](index=76&type=chunk) - As of June 30, 2025, current assets were **RMB 1,307.3 million**, a slight decrease from December 31, 2024[73](index=73&type=chunk)[77](index=77&type=chunk) - Cash and bank balances were **RMB 478.0 million**, a decrease of **14.7%** from December 31, 2024[73](index=73&type=chunk)[77](index=77&type=chunk) - The debt-to-asset ratio was **40.6%**, a decrease of **4.6 percentage points** from **45.2%** as of December 31, 2024[73](index=73&type=chunk)[77](index=77&type=chunk) - Total equity was **RMB 937.5 million**, an increase of **3.1%** from December 31, 2024, primarily due to growth from operating profit[78](index=78&type=chunk)[82](index=82&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[80](index=80&type=chunk)[83](index=83&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 with outsourcing suppliers[85](index=85&type=chunk)[89](index=89&type=chunk) [Outlook for the Second Half of 2025](index=23&type=section&id=Outlook%20for%20the%20Second%20Half%20of%202025) The group aims for sustainable, quality growth by enhancing service innovation, resource focus, and operational efficiency through strategic initiatives and talent development - The Group will continue to expand into new sectors, deeply cultivate advantageous areas, balance the complementary relationship between business increments and existing assets, and promote comprehensive breakthroughs in new businesses and continuous optimization of existing businesses[94](index=94&type=chunk)[96](index=96&type=chunk) - In the second half of the year, the focus will be on developing three core capabilities: "service innovation, resource focus, and efficient operations"[95](index=95&type=chunk)[97](index=97&type=chunk) - In terms of service innovation, the Group will deepen customized standards for various property types, extend the residential community service chain vertically, expand non-residential space operation scenarios horizontally, and accelerate the implementation of intelligent platforms and IoT tools[97](index=97&type=chunk) - Regarding resource focus, the Group will build a "headquarters coordination + regional linkage" mechanism, deeply cultivate core city clusters, expand into new scenarios such as urban services and public supporting facilities, and accelerate ecosystem expansion through strategic joint ventures and mergers and acquisitions[99](index=99&type=chunk)[100](index=100&type=chunk) - For efficient operations, the Group will optimize its talent "selection, cultivation, utilization, and retention" mechanism, compile a comprehensive service manual for all property types, and promote a mobile management and control platform across all regions to achieve online and data-driven service processes[99](index=99&type=chunk)[101](index=101&type=chunk) - Centered on investment-driven strategy, the Group will focus on standard construction, promote the implementation of multi-property type standardized operation guidelines, optimize investment mechanisms, and integrate investment and budget systems[102](index=102&type=chunk)[105](index=105&type=chunk) - Organizational development will be strengthened, adhering to the talent allocation principle of "lean headquarters, strong regions, excellent projects," and systematically building four key talent teams: "Hong Elite," "Hong Butler," "Hong Master," and "Hong Guard"[104](index=104&type=chunk)[107](index=107&type=chunk) - Upholding the core values of "business with integrity, sincerity leads to far-reaching success," the Group will foster cultural cohesion and activate team momentum through a culture of great love[108](index=108&type=chunk)[111](index=111&type=chunk) [Significant Investments, Acquisitions and Disposals](index=26&type=section&id=Significant%20Investments%2C%20Acquisitions%20and%20Disposals) The company entered agreements to acquire parking spaces and equity in three entities, with total consideration offset against receivables - On February 17, 2025, the Company entered into a framework agreement for the transfer of parking spaces with Hongyang Group, intending to acquire the ownership or usage rights of target parking spaces for approximately **RMB 230.92 million**[110](index=110&type=chunk)[113](index=113&type=chunk) - On the same day, Nanjing Hongshenghuo Property Consulting Co., Ltd., an indirect wholly-owned subsidiary of the Company, entered into equity transfer agreements with subsidiaries of Hongyang Group to conditionally acquire **70%** equity in Chengdu Hongsheng Heding Real Estate Development Co., Ltd. (approximately **RMB 142.4 million**), **20%** equity in Suqian Tongjin Hongzhiye Co., Ltd. (approximately **RMB 73.95 million**), and **19%** equity in Jurong Jinjiarun Real Estate Development Co., Ltd. (approximately **RMB 41.34 million**)[114](index=114&type=chunk)[118](index=118&type=chunk) - The total consideration for these equity interests will be offset against outstanding receivables on an equivalent basis, with no cash payment involved[114](index=114&type=chunk)[118](index=118&type=chunk) - As of June 30, 2025, and the approval date of the condensed consolidated financial information, the transaction had not yet been completed[116](index=116&type=chunk)[119](index=119&type=chunk) [Employment and Remuneration Policies](index=28&type=section&id=Employment%20and%20Remuneration%20Policies) The group employs 2,799 staff, implementing competitive remuneration and multi-tiered talent development programs - As of June 30, 2025, the Group had a total of **2,799 employees**, with **2,326** engaged in residential property management and **473** in non-residential property management[121](index=121&type=chunk)[125](index=125&type=chunk) - Employee remuneration is primarily determined based on responsibilities, job performance, and market levels, complemented by competitive compensation, talent development strategies, internal promotion systems, and corporate culture[122](index=122&type=chunk)[125](index=125&type=chunk) - The Group has designed a three-tiered talent development program, including the "General Plan," "Hong Elite Plan," and "Hongyao Plan," conducted through "offline intensive training + on-site delivery to the front line" methods[123](index=123&type=chunk)[125](index=125&type=chunk) [Events after the Reporting Period](index=29&type=section&id=Events%20after%20the%20Reporting%20Period) No significant post-reporting period events occurred after June 30, 2025 - The Company did not undertake any significant events after June 30, 2025[127](index=127&type=chunk)[129](index=129&type=chunk) [Exposure to Foreign Exchange Risk](index=29&type=section&id=Exposure%20to%20Foreign%20Exchange%20Risk) Operating primarily in China, the group's transactions are mainly denominated and settled in RMB, with ongoing monitoring of foreign exchange activities - The Group primarily operates in China, with most transactions denominated and settled in RMB[128](index=128&type=chunk)[130](index=130&type=chunk) - The Group will continue to monitor foreign exchange activities and make its best efforts to safeguard cash value[128](index=128&type=chunk)[130](index=130&type=chunk) [Corporate Governance/Other Information](index=30&type=section&id=Corporate%20Governance%2FOther%20Information) This section outlines the company's adherence to corporate governance standards, director and shareholder interests, public float, audit committee activities, and securities transactions [Corporate Governance](index=30&type=section&id=Corporate%20Governance) The group adheres to high corporate governance standards, complying with the HKEX Corporate Governance Code - The Group has adopted the HKEX Corporate Governance Code as its corporate governance standard[132](index=132&type=chunk)[136](index=136&type=chunk) - During the reporting period, the Company complied with all applicable code provisions in Part 2 of the Corporate Governance Code[132](index=132&type=chunk)[136](index=136&type=chunk) [Compliance with Model Code for Securities Transactions by Directors](index=30&type=section&id=Compliance%20with%20Model%20Code%20for%20Securities%20Transactions%20by%20Directors) The company's directors confirmed compliance with the HKEX Model Code for Securities Transactions by Directors - The Company has adopted the HKEX Model Code for Securities Transactions by Directors of Listed Issuers[134](index=134&type=chunk)[138](index=138&type=chunk) - The directors confirmed that they have complied with the required standards set out in the Model Code throughout the reporting period[134](index=134&type=chunk)[139](index=139&type=chunk) [Changes in Information of Directors and Chief Executive Officer](index=30&type=section&id=Changes%20in%20Information%20of%20Directors%20and%20Chief%20Executive%20Officer) No changes in information of directors and the chief executive officer required disclosure during the reporting period - During the reporting period, there were no changes in the information of directors and the Company's chief executive officer required to be disclosed pursuant to Rule 13.51B(1) of the Listing Rules[135](index=135&type=chunk)[140](index=140&type=chunk) [Directors' and Chief Executive's Interests](index=31&type=section&id=Directors'%20and%20Chief%20Executive's%20Interests) As of June 30, 2025, no directors or chief executive held disclosable interests in the company's shares or debentures - As of June 30, 2025, no directors or the Company's chief executive held any disclosable interests or short positions in the shares, underlying shares, and debentures of the Company or its associated corporations[141](index=141&type=chunk)[142](index=142&type=chunk) [Substantial Shareholders' Interests](index=32&type=section&id=Substantial%20Shareholders'%20Interests) Redsun Services Group (Holdings) and its affiliates hold a 72.77% equity interest, with various noteholders having security interests in the company's shares Interests and Short Positions of Substantial Shareholders in the Company's Shares and Underlying Shares (As of June 30, 2025) | Name of Substantial Shareholder | Nature of Interest | Number of Shares | Approximate Percentage | | :--- | :--- | :--- | :--- | | Redsun Services Group (Holdings) | Beneficial owner | 301,994,000 | 72.77% | | Hong Yang Group Company | Interest in controlled corporation | 301,994,000 | 72.77% | | Hong Yang International | Interest in controlled corporation | 301,994,000 | 72.77% | | Hong Yang Group (Holdings) | Interest in controlled corporation | 301,994,000 | 72.77% | | Mr. Zeng Huansha | Interest in controlled corporation | 301,994,000 | 72.77% | | Ms. Chen Sihong | Spouse's interest | 301,994,000 | 72.77% | | Serica Agency Limited | Person with a security interest in shares | 301,994,000 | 72.77% | | Ares Holdings L.P. | Person with a security interest in shares | 75,649,496 | 18.23% | | BFAM Partners (Cayman) Limited | Person with a security interest in shares | 65,895,091 | 15.88% | | Investment Opportunities V Pte. Limited | Person with a security interest in shares | 43,366,338 | 10.45% | | Ares SSG Capital Partners VI GP, Ltd. | Person with a security interest in shares | 32,283,158 | 7.78% | | Ares SSG Capital Partners VI, L.P. | Person with a security interest in shares | 32,283,158 | 7.78% | | CP6 Hold Co 2 Limited | Person with a security interest in shares | 32,283,158 | 7.78% | | Union Lead Capital Limited | Person with a security interest in shares | 32,283,158 | 7.78% | - Redsun Services Group (Holdings) granted a security interest over **100%** of its shares in the Company (representing approximately **72.77%** of the total issued share capital) to Serica Agency Limited as beneficiary, providing credit support for senior secured notes issued by Hongsheng Limited, a wholly-owned subsidiary of Hongyang Group[147](index=147&type=chunk) [Sufficiency of Public Float](index=35&type=section&id=Sufficiency%20of%20Public%20Float) The company maintained the required public float as stipulated by the Listing Rules - The Company has maintained a sufficient public float as required by the Listing Rules[151](index=151&type=chunk)[155](index=155&type=chunk) [Audit Committee](index=35&type=section&id=Audit%20Committee) The Audit Committee, chaired by Mr. Zhao Xianbo, reviewed the unaudited interim results and confirmed compliance with accounting standards - The Audit Committee comprises four directors, including three independent non-executive directors (Mr. Zhao Xianbo, Ms. Wang Fen, Mr. Li Xiaohang) and one non-executive director (Mr. Zeng Juncai)[153](index=153&type=chunk)[156](index=156&type=chunk) - The Audit Committee is chaired by Mr. Zhao Xianbo, who possesses professional accounting and relevant financial management expertise[153](index=153&type=chunk)[156](index=156&type=chunk) - The Committee has reviewed the Company's unaudited condensed consolidated interim results for the six months ended June 30, 2025, and confirmed compliance with all applicable accounting principles, standards, and disclosure requirements, with adequate disclosures made[153](index=153&type=chunk)[156](index=156&type=chunk) [Interim Dividend](index=35&type=section&id=Interim%20Dividend) The Board does not recommend paying any interim dividend for the six months ended June 30, 2025 - The Board does not recommend the payment of any interim dividend for the six months ended June 30, 2025 (2024 same period: nil)[154](index=154&type=chunk)[157](index=157&type=chunk) [Purchase, Sale or Redemption of Listed Securities](index=36&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20Listed%20Securities) Neither the company nor its subsidiaries purchased, sold, or redeemed any listed securities during the reporting period - During the reporting period, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities[159](index=159&type=chunk) - As of the end of the reporting period, the Company did not hold any treasury shares[159](index=159&type=chunk) [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=36&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) For the six months ended June 30, 2025, the company reported RMB 510.4 million in revenue, RMB 113.4 million in gross profit, and RMB 28.5 million in profit for the period Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income Summary (For the six months ended June 30, 2025) | Indicator | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Revenue | 510,371 | 465,332 | | Cost of services | (396,971) | (337,795) | | Gross profit | 113,400 | 127,537 | | Other income and gains | 1,671 | 1,515 | | Selling and distribution expenses | (1,020) | (636) | | Administrative expenses | (41,387) | (30,727) | | Net impairment losses on financial assets | (26,858) | (40,852) | | Other expenses | (1,003) | (1,329) | | Finance costs | (545) | (862) | | Profit before tax | 44,258 | 54,646 | | Income tax expense | (15,788) | (14,515) | | Profit for the period | 28,470 | 40,131 | | Profit attributable to owners of the parent | 24,444 | 36,602 | | Profit attributable to non-controlling interests | 4,026 | 3,529 | | Basic and diluted earnings per share | RMB 0.06 | RMB 0.09 | [Condensed Consolidated Statement of Financial Position](index=37&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, total assets less current liabilities were RMB 958.9 million, with net assets at RMB 937.5 million, and cash and bank balances at RMB 478.0 million Condensed Consolidated Statement of Financial Position Summary (As of June 30, 2025) | Indicator | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | **Non-current assets** | | | | Property, plant and equipment | 22,076 | 25,333 | | Goodwill | 175,050 | 175,050 | | Other intangible assets | 49,502 | 57,725 | | Deferred tax assets | 25,530 | 25,013 | | **Total non-current assets** | **272,158** | **283,121** | | **Current assets** | | | | Inventories | 4,875 | 268 | | Trade receivables | 308,103 | 289,936 | | Prepayments, other receivables and other assets | 120,143 | 133,010 | | Amounts due from related companies | 396,173 | 391,412 | | Cash and bank balances | 478,039 | 560,574 | | **Total current assets** | **1,307,333** | **1,375,200** | | **Current liabilities** | | | | Trade payables | 120,924 | 183,776 | | Other payables and accruals | 143,083 | 177,671 | | Contract liabilities | 258,013 | 258,594 | | Interest-bearing bank borrowings | 13,861 | 13,831 | | Tax payable | 84,654 | 85,136 | | **Total current liabilities** | **620,535** | **719,008** | | **Net current assets** | **686,798** | **656,192** | | **Total assets less current liabilities** | **958,956** | **939,313** | | **Non-current liabilities** | | | | Interest-bearing bank borrowings | 10,341 | 17,235 | | Deferred tax liabilities | 11,067 | 13,000 | | **Total non-current liabilities** | **21,408** | **30,235** | | **Net assets** | **937,548** | **909,078** | | **Total equity** | **937,548** | **909,078** | [Condensed Consolidated Statement of Changes in Equity](index=39&type=section&id=Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) Equity attributable to owners of the parent increased from RMB 898.1 million to RMB 922.5 million for the six months ended June 30, 2025, driven by comprehensive income Condensed Consolidated Statement of Changes in Equity Summary (For the six months ended June 30, 2025) | Item | Share Capital (RMB thousand) | Share Premium (RMB thousand) | Merger Reserve (RMB thousand) | Statutory Surplus Reserve (RMB thousand) | Retained Profits (RMB thousand) | Total Attributable to Owners of the Parent (RMB thousand) | Non-controlling Interests (RMB thousand) | Total Equity (RMB thousand) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | At January 1, 2025 (audited) | 3,764 | 387,262 | 87,849 | 71,377 | 347,806 | 898,058 | 11,020 | 909,078 | | Total comprehensive income for the period | – | – | – | – | 24,444 | 24,444 | 4,026 | 28,470 | | At June 30, 2025 (unaudited) | 3,764 | 387,262 | 87,849 | 71,377 | 372,250 | 922,502 | 15,046 | 937,548 | | At January 1, 2024 (audited) | 3,764 | 387,262 | 87,849 | 66,450 | 338,347 | 883,672 | 14,900 | 898,572 | | Total comprehensive income for the period | – | – | – | – | 36,602 | 36,602 | 3,529 | 40,131 | | At June 30, 2024 (unaudited) | 3,764 | 387,262 | 87,849 | 66,450 | 374,949 | 920,274 | 18,429 | 938,703 | [Condensed Consolidated Statement of Cash Flows](index=40&type=section&id=Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) For the six months ended June 30, 2025, net cash used in operating, investing, and financing activities resulted in a net decrease of RMB 87.1 million in cash and cash equivalents Condensed Consolidated Statement of Cash Flows Summary (For the six months ended June 30, 2025) | Cash Flow Activity | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Net cash flows used in operating activities | (78,103) | (142,697) | | Net cash flows used in investing activities | (1,545) | (3,935) | | Net cash flows used in financing activities | (7,409) | (8,409) | | **Net decrease in cash and cash equivalents** | **(87,057)** | **(155,041)** | | Cash and cash equivalents at beginning of period | 560,574 | 637,775 | | Effect of foreign exchange rate changes, net | 73 | 132 | | **Cash and cash equivalents at end of period** | **473,590** | **482,866** | [Notes to Condensed Consolidated Financial Information](index=44&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Information) This section provides detailed notes on the company's information, basis of preparation, accounting policies, segment data, revenue, profit before tax, and other financial disclosures [Corporate and Group Information](index=44&type=section&id=Corporate%20and%20Group%20Information) Hong Yang Services Group Company Limited, incorporated in the Cayman Islands, is listed on HKEX and primarily provides property management and value-added services - The Company was incorporated in the Cayman Islands on December 12, 2019, and its shares have been listed on the Main Board of the Stock Exchange of Hong Kong since July 7, 2020[173](index=173&type=chunk)[176](index=176&type=chunk) - During the reporting period, the Group was principally engaged in providing property management services, non-owner value-added services, and community value-added services[174](index=174&type=chunk)[176](index=176&type=chunk) - The Company's controlling company is Hong Yang Services Group (Holdings) Limited, incorporated in the British Virgin Islands[174](index=174&type=chunk)[177](index=177&type=chunk) [Basis of Preparation](index=44&type=section&id=Basis%20of%20Preparation) The condensed consolidated financial information is prepared in accordance with IAS 34 and should be read with the annual financial statements - The condensed consolidated financial information has been prepared in accordance with International Accounting Standard 34 "Interim Financial Reporting"[175](index=175&type=chunk)[178](index=178&type=chunk) - The condensed consolidated financial information should be read in conjunction with the Group's annual consolidated financial statements for the year ended December 31, 2024[175](index=175&type=chunk)[178](index=178&type=chunk) [Changes in Accounting Policies and Disclosures](index=45&type=section&id=Changes%20in%20Accounting%20Policies%20and%20Disclosures) Accounting policies remain consistent with 2024, with no significant impact from the initial adoption of IAS 21 amendments - Accounting policies are consistent with the 2024 annual consolidated financial statements, except for the initial adoption of "Amendments to IAS 21: Lack of Exchangeability"[179](index=179&type=chunk)[180](index=180&type=chunk)[181](index=181&type=chunk) - As the Group's transaction currency and functional currency are both convertible, this amendment has no significant impact on the condensed consolidated financial statements[180](index=180&type=chunk)[181](index=181&type=chunk) [Operating Segment Information](index=46&type=section&id=Operating%20Segment%20Information) Management monitors operating results by project location, but all locations are aggregated into one reportable segment due to similar economic characteristics - Management monitors operating results by project location, but all locations are aggregated into one reportable operating segment[183](index=183&type=chunk)[185](index=185&type=chunk) - The Group's revenue from external customers is derived solely from its operations in mainland China, and no non-current assets are located outside mainland China[184](index=184&type=chunk)[186](index=186&type=chunk) - For the six months ended June 30, 2025, no single customer contributed more than **10%** to total revenue[188](index=188&type=chunk) [Revenue Analysis](index=47&type=section&id=Revenue%20Analysis) For the six months ended June 30, 2025, total revenue was RMB 510.4 million, primarily from property management services, with most revenue recognized over time Revenue Analysis (For the six months ended June 30, 2025) | Business Line | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Property Management Services | 420,018 | 375,410 | | Non-Owner Value-Added Services | 10,993 | 20,321 | | Community Value-Added Services | 79,360 | 69,601 | | **Total** | **510,371** | **465,332** | Revenue from Customers by Timing of Recognition (For the six months ended June 30, 2025) | Revenue Recognition Method | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Revenue from customers recognized over time | 427,937 | 391,626 | | Revenue from customers recognized at a point in time | 82,434 | 73,706 | | **Total** | **510,371** | **465,332** | [Profit Before Tax Details](index=48&type=section&id=Profit%20Before%20Tax%20Details) Profit before tax is presented after deducting service costs, depreciation, amortization, and impairment losses, and including net foreign exchange gains Items Deducted/(Credited) from Profit Before Tax (For the six months ended June 30, 2025) | 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 | | Depreciation of right-of-use assets | – | 629 | | Amortisation of other intangible assets | 7,999 | 8,133 | | Net foreign exchange gains | (73) | (132) | | Impairment losses on amounts due from related companies | 19,831 | 26,064 | | Impairment losses on trade receivables | 2,086 | 13,984 | | Impairment losses on financial assets included in prepayments, other receivables and other assets | 4,941 | 804 | | Loss on disposal of property, plant and equipment | 166 | 120 | [Income Tax Expense](index=49&type=section&id=Income%20Tax%20Expense) Group subsidiaries in mainland China are generally subject to a 25% corporate income tax rate, with some enjoying preferential rates - Subsidiaries operating in mainland China are generally subject to a corporate income tax rate of **25%**[197](index=197&type=chunk)[198](index=198&type=chunk) - Some subsidiaries located in western China or qualifying as small and micro enterprises may enjoy preferential tax rates of **15%**, **2.5%**, or **5%**[197](index=197&type=chunk)[198](index=198&type=chunk) Income Tax Expense Analysis (For the six months ended June 30, 2025) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Current tax: Corporate income tax | 18,237 | 22,024 | | Deferred tax | (2,449) | (7,509) | | **Total tax expense for the period** | **15,788** | **14,515** | [Dividends](index=50&type=section&id=Dividends) The Board has resolved not to declare an interim dividend for the six months ended June 30, 2025 - The Board has resolved not to declare an interim dividend for the six months ended June 30, 2025 (2024 same period: nil)[201](index=201&type=chunk)[204](index=204&type=chunk) [Earnings Per Share](index=50&type=section&id=Earnings%20Per%20Share) Basic and diluted earnings per share attributable to owners of the parent for the six months ended June 30, 2025, was RMB 0.06 - The amount of basic earnings per share attributable to ordinary equity holders of the parent is calculated based on the profit for the period of **RMB 24,444 thousand** and the weighted average number of ordinary shares outstanding of **415,000,000** shares[202](index=202&type=chunk)[205](index=205&type=chunk)[207](index=207&type=chunk) - For the six months ended June 30, 2025, basic and diluted earnings per share was **RMB 0.06**[161](index=161&type=chunk) - There were no potentially dilutive ordinary shares outstanding during the period, so no dilution-related adjustments were made to the basic earnings per share amount[203](index=203&type=chunk)[205](index=205&type=chunk) [Property, Plant and Equipment](index=51&type=section&id=Property%2C%20Plant%20and%20Equipment) For the six months ended June 30, 2025, the group acquired assets at a cost of RMB 1.795 million and disposed of assets resulting in a net loss of RMB 0.166 million - For the six months ended June 30, 2025, the Group acquired assets at a cost of **RMB 1.795 million**[208](index=208&type=chunk)[209](index=209&type=chunk) - The Group disposed of assets with a net book value of **RMB 0.545 million**, resulting in a net loss on disposal of **RMB 0.166 million**[208](index=208&type=chunk)[209](index=209&type=chunk) [Trade Receivables](index=51&type=section&id=Trade%20Receivables) As of June 30, 2025, total trade receivables were RMB 308.1 million, with the majority due within one year, and expected credit losses measured using a provision matrix Ageing Analysis of Trade Receivables (As of June 30, 2025) | 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 of June 30, 2025) | Ageing | Expected Credit Loss Rate (%) | Gross Carrying Amount (RMB thousand) | Expected Credit Loss (RMB thousand) | | :--- | :--- | :--- | :--- | | Current | 3.61% | 229,844 | 8,303 | | 1 to 2 years | 6.50% | 66,748 | 4,340 | | 2 to 3 years | 16.48% | 21,469 | 3,538 | | Over 3 years | 47.83% | 11,928 | 5,705 | | **Total** | **6.63%** | **329,989** | **21,886** | [Cash and Cash Equivalents](index=53&type=section&id=Cash%20and%20Cash%20Equivalents) As of June 30, 2025, cash and bank balances totaled RMB 478.0 million, with cash and cash equivalents at RMB 473.6 million after restricted cash Cash and Cash Equivalents Analysis (As of June 30, 2025) | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Cash and bank balances | 478,039 | 560,574 | | Less: Restricted cash | (4,449) | (1,504) | | **Cash and cash equivalents** | **473,590** | **559,070** | - As of June 30, 2025, cash and bank balances denominated in RMB amounted to **RMB 476,111 thousand**[219](index=219&type=chunk)[222](index=222&type=chunk) - Cash and bank balances are deposited with reputable banks that have no recent history of default and are rated as performing well in terms of credit risk[220](index=220&type=chunk)[221](index=221&type=chunk)[222](index=222&type=chunk) [Trade Payables](index=54&type=section&id=Trade%20Payables) As of June 30, 2025, total trade payables were RMB 120.9 million, with the vast majority due within one year Ageing Analysis of Trade Payables (As of June 30, 2025) | 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** | [Other Payables and Accruals](index=54&type=section&id=Other%20Payables%20and%20Accruals) As of June 30, 2025, other payables and accruals totaled RMB 143.1 million, primarily comprising deposits received, wages, and utility collections Other Payables and Accruals Analysis (As of June 30, 2025) | 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 taxes payable | 31,514 | 27,795 | | Wages and welfare payable | 22,669 | 22,138 | | Others | 4,119 | 11,910 | | **Total** | **143,083** | **177,671** | [Share Capital](index=55&type=section&id=Share%20Capital) As of June 30, 2025, issued and fully paid share capital consisted of 415,000,000 ordinary shares at HK$0.01 par value each, amounting to RMB 3.764 million Share Capital Analysis (As of June 30, 2025) | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Issued and fully paid: 415,000,000 ordinary shares of HK$0.01 each | 3,764 | 3,764 | [Contingent Liabilities](index=55&type=section&id=Contingent%20Liabilities) As of June 30, 2025, the group had no significant contingent liabilities or guarantees - As of June 30, 2025, the Group had no significant contingent liabilities or guarantees[230](index=230&type=chunk)[231](index=231&type=chunk) [Commitments](index=55&type=section&id=Commitments) As of the reporting period end, the group had contracted but unprovided commitments for other intangible assets totaling RMB 5.86 million Contractual Commitments (As of June 30, 2025) | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Contracted but not provided for: Other intangible assets | 5,860 | 4,794 | | **Total** | **5,860** | **4,794** | [Related Party Transactions](index=56&type=section&id=Related%20Party%20Transactions) The group engaged in property management, non-owner value-added, and community value-added services with fellow subsidiaries and joint ventures, including asset acquisitions offset by receivables Transactions with Related Parties (For the six months ended June 30, 2025) | Transaction Type | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Fellow subsidiaries: Property management service income | 20,928 | 31,993 | | Fellow subsidiaries: Non-owner value-added service income | 6,874 | 20,271 | | Fellow subsidiaries: Community value-added service income | – | 453 | | Joint ventures and associates of fellow subsidiaries: Property management service income | 6,279 | 9,900 | | Joint ventures and associates of fellow subsidiaries: Non-owner value-added service income | 2,207 | 14,305 | - During the period, the Group entered into a one-year lease agreement with a fellow subsidiary, with an annual rent of **RMB 808 thousand**[246](index=246&type=chunk) - As of June 30, 2025, the balance of agent deposits receivable from fellow subsidiaries was **RMB 299,746 thousand**[246](index=246&type=chunk) - The Company entered into a parking space transfer framework agreement and equity transfer agreements with fellow subsidiaries to conditionally acquire parking space rights and equity in three entities, with the total consideration to be offset against outstanding receivables on an equivalent basis[246](index=246&type=chunk) Unpaid Balances of Amounts Due from Related Companies (As of June 30, 2025) | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Trade-related: Fellow subsidiaries | 365,971 | 361,506 | | Trade-related: Joint ventures and associates of fellow subsidiaries | 30,202 | 29,906 | | **Total** | **396,173** | **391,412** | | Gross amount | 586,280 | 561,688 | | Impairment | (190,107) | (170,276) | | Net book value | 396,173 | 391,412 | Movement in Impairment Provision for Amounts Due from Related Companies (For the six months ended June 30, 2025) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | At beginning of year | 170,276 | 110,865 | | Impairment losses recognised | 19,831 | 59,411 | | At end of year | 190,107 | 170,276 | Key Management Personnel Compensation (For the six months ended June 30, 2025) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Short-term employee benefits | 1,233 | 2,065 | | Contributions to pension schemes and social welfare | 151 | 280 | | **Total compensation paid to key management personnel** | **1,384** | **2,345** | [Fair Value and Fair Value Hierarchy of Financial Instruments](index=60&type=section&id=Fair%20Value%20and%20Fair%20Value%20Hierarchy%20of%20Financial%20Instruments) Management assesses that the fair values of various financial instruments approximate their carrying amounts due to short maturity periods - Management has assessed that the fair values of various financial instruments approximate their carrying amounts, primarily due to the short maturity periods of these instruments[259](index=259&type=chunk)[261](index=261&type=chunk) - The Group's finance department is responsible for determining policies and procedures for fair value measurement of financial instruments, which are reviewed and approved by the Chief Financial Officer[260](index=260&type=chunk)[261](index=261&type=chunk) [Events After the Reporting Period](index=61&type=section&id=Events%20After%20the%20Reporting%20Period) No significant post-reporting period events occurred after June 30, 2025 - The Company did not undertake any significant events after June 30, 2025[263](index=263&type=chunk)[266](index=266&type=chunk) [Approval of the Condensed Consolidated Financial Information](index=61&type=section&id=Approval%20of%20the%20Condensed%20Consolidated%20Financial%20Information) The condensed consolidated financial information was approved and authorized for issue by the Board of Directors on August 26, 2025 - The condensed consolidated financial information was approved and authorized for issue by the Company's Board of Directors on August 26, 2025[264](index=264&type=chunk)[267](index=267&type=chunk)

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 | ...