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%； ...

Financial Performance - In 2022, the Group achieved revenue of RMB1,103.1 million, representing a decrease of 2.4% compared to 2021[26]. - Gross profit for the year was RMB256.4 million, reflecting a decline of 20.0% from the previous year[26]. - Net profit reached RMB93.9 million, down 32.2% compared to 2021[26]. - The Group's revenue for the reporting period was RMB 1,103.1 million, a decrease of 2.4% compared to RMB 1,130.0 million in the same period of 2021[87]. - Revenue from property management services increased by 10.8% to RMB 834.7 million, up from RMB 753.6 million in 2021, due to rapid expansion in managed building area[88]. - Revenue from value-added services to non-property owners decreased by 30.9% to RMB 124.6 million, down from RMB 180.3 million in 2021, primarily due to a reduction in service projects[89]. - Community value-added services revenue fell by 26.7% to RMB 143.8 million, down from RMB 196.1 million in 2021, mainly due to decreased parking space sales[90]. - Gross profit decreased by approximately 20.0% to RMB 256.4 million from RMB 320.4 million in 2021, attributed to reduced revenue from value-added services[92]. - The Group's gross profit margin was 23.2%, a decrease of 5.2 percentage points from 28.4% in 2021, mainly due to lower margins in value-added services[95]. Operational Expansion - The Group managed a total gross floor area (GFA) of 44.864 million sq.m., with a growth rate of 23.28% compared to 2021[25]. - The GFA of market-oriented extension was 21.4067 million sq.m., accounting for 47.71% of the total GFA under management, representing an increase of 11.78% from 2021[25]. - The total managed area reached 54.83 million square meters, an increase of 4.24% from 2021, while the total construction area under management was 44.86 million square meters, growing by 23.28%[28]. - The number of projects managed by Redsun Properties Group increased to 285 as of December 31, 2022, compared to 234 projects in the previous year[75]. - As of December 31, 2022, the company expanded its geographic presence to 55 cities in China, up from its initial base in Nanjing[77]. Strategic Initiatives - The Group defined 2022 as the "Customer Value Year," focusing on quality services and expanding value-added services[24]. - The Group signed cooperation agreements with various sectors, including biomedical, cultural tourism, and industrial park projects, to enhance its non-residential service portfolio[27]. - The Group launched the "Redsun Mode 2.0" to enhance service quality, aiming to provide "satisfying + exceeding expectation" services[32]. - The Group emphasized the integration of smart technology to achieve steady growth in management scale and profitability[24]. - The Group's business model focuses on penetrating the Greater Jiangsu Region, strengthening its foothold in the Yangtze River Delta Region, and expanding into core cities, emphasizing a customer-centered service philosophy[61][62]. Challenges and Industry Outlook - The property management industry faced challenges due to the overall downturn in the upstream real estate sector and the impact of COVID-19 on payment rates[20]. - The property management industry saw a slowdown in growth, with listed companies experiencing reduced revenue and net profit growth rates[44]. - The property management industry is expected to continue expanding in 2023, but the overall growth rate will be significantly slower than in 2022, shifting focus from scale expansion to quality growth[134]. Future Goals - Looking ahead to 2023, the Group aims to improve quality and efficiency, enhance customer satisfaction, and gain recognition from property owners and customers[40]. - The Group aims to enhance service quality, profitability of individual projects, and brand value to achieve quality and efficacy while maintaining scale growth[134]. - The Group plans to establish a foothold in the community and home elderly care service industry, leveraging customer density and property owner loyalty in Jiangsu Province[155]. - The Group aims to develop standardized service product lines for elderly care to cater to diverse customer needs, seeking new profit growth points while responding to government initiatives[157]. Employee and Organizational Development - As of December 31, 2022, the Group employed 3,446 employees, with 2,796 in residential property management, 328 in commercial property management, and 322 in public construction property management[168]. - The Group's employee remuneration is based on duties, performance, and market levels, supported by a competitive incentive plan and talent cultivation scheme[169]. - The Group has implemented a systematic "five-talent scheme" to enhance talent quality and broaden its talent pool[174]. - The Group has established a "service capability nurturing center" to cultivate key customer service talents[177]. Financial Management - The Group's total equity increased by 9.6% to RMB 890.2 million from RMB 812.3 million in 2021, primarily due to operating profit growth[116]. - Income tax expense decreased by approximately 29.9% to RMB 34.1 million from RMB 48.6 million in 2021, mainly due to a decrease in profit before tax[114]. - Trade receivables increased by approximately 56.3% to RMB 191.0 million from RMB 122.2 million in 2021, due to more projects under management and lower collection rates[118]. - The cost of sales and services increased by approximately 4.6% to RMB 846.8 million in 2022, up from RMB 809.6 million in 2021, attributed to higher subcontracting costs due to operational scale expansion[86]. Capital Allocation - The net proceeds from the initial public offering amounted to approximately HK$398 million, with an additional HK$62.1 million from the full exercise of the over-allotment option[176]. - As of December 31, 2022, 40% of the net proceeds (HK$184 million) was allocated for selective strategic investment and acquisition, with HK$154 million used[182]. - 30% of the net proceeds (HK$138 million) was designated for R&D and upgrade of intelligent systems, with HK$90 million utilized and HK$48 million remaining[182]. - 10% of the net proceeds (HK$46 million) was allocated for improving service quality, with HK$42 million used[182].

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2022年12月31日止年度業績公告 摘要 截至2022年12月31日止年度，本集團業績如下： 1. 本集團收入達人民幣1,103.1百萬元，較2021年同期收入人民幣1,130.0百萬元下降 2.4%。 2. 本集團業務類型收入如下： • 物業管理服務實現收入人民幣834.7百萬元，佔總收入75.7%，較2021年同期收 入人民幣753.6百萬元增加10.8%； • 非業主增值服務實現收入人民幣124.6百萬元，佔總收入11.3%，較2021年同期 收入人民幣180.3百萬元下降30.9%； ...

Revenue and Profitability - The Group's revenue for the six months ended June 30, 2022, was RMB 553.9 million, an increase of 4.7% compared to RMB 529.1 million for the same period in 2021[17]. - Revenue from property management services was RMB 404.2 million, accounting for 73.0% of total revenue, representing a 15.3% increase from RMB 350.4 million in the same period in 2021[18]. - Revenue from value-added services to non-property owners decreased by 11.4% to RMB 75.1 million, accounting for 13.5% of total revenue[18]. - Revenue from community value-added services was RMB 74.6 million, a decrease of 20.5% compared to RMB 93.8 million for the same period in 2021[19]. - Gross profit was RMB 150.8 million, a decrease of 1.4% from RMB 152.9 million in the same period of 2021, with a gross profit margin of 27.2%[19]. - Profit for the reporting period was RMB 73.4 million, an increase of 14.7% compared to RMB 64.0 million for the same period in 2021[21]. - Profit attributable to equity shareholders was RMB 69.3 million, representing a 15.8% increase from RMB 59.8 million in the same period of 2021[21]. Project and Management Growth - As of June 30, 2022, the Group had 376 contracted projects with a total contracted GFA of approximately 56.9 million sq.m., a 14.7% increase from 49.6 million sq.m. as of June 30, 2021[23]. - The number of projects under management was 307, with a GFA under management of approximately 44.9 million sq.m., a 30.6% increase from 34.4 million sq.m. as of June 30, 2021[24]. - The Group expanded its presence to 62 cities in China, with a contracted gross floor area of 56.91 million sq.m., an increase of approximately 14.7% year-on-year[34]. - The gross floor area under management reached 44.88 million sq.m., marking a significant increase of 30.6% compared to the previous year[34]. - The Group managed a total of 307 projects with a Gross Floor Area (GFA) of 44,879.1 thousand square meters as of June 30, 2022, compared to 228 projects and 34,357.6 thousand square meters in the same period of 2021[58]. Strategic Initiatives and Innovations - The Group launched the "Customer Value Year" initiative, focusing on customer-centric services and enhancing service quality[37]. - The "Redsun Housekeeper" service products were fully launched, contributing to improved organizational efficiency and service quality[37]. - The Group is actively promoting digital construction and smart upgrades, enhancing management efficiency while controlling operational costs[38]. - The Group's strategic focus includes deepening community living service ecosystems and integrating premium supplier resources to enhance asset value for property owners[38]. - The Group aims to enhance its service capabilities to meet the increasing demand for high-quality products, focusing on solidifying product lines and optimizing service standards[138]. - The Group plans to upgrade scenario-based services for residential properties and launch benchmark projects for non-residential properties to accelerate market expansion[140][143]. - The Group will build a "platform + ecosystem" value-added service chain to meet diverse living needs and strengthen customer loyalty[142]. - The Group is committed to enhancing its innovative capabilities and operational efficiency through the development of smart platforms, including "Hongtu Smart Database" and "Hongyang Service APP" to improve service quality and management efficiency[148]. Financial Metrics and Cost Management - The Group's cost of sales and services increased by approximately 7.2% to RMB 403.1 million from RMB 376.1 million in 2021, driven by higher project sub-contracting costs[89]. - The Group's gross profit margin decreased to 27.2% for the six months ended June 30, 2022, down 1.7 percentage points from 28.9% in the same period of 2021[94]. - Gross profit margin for property management services increased slightly to 25.9% from 25.5% year-on-year, attributed to economies of scale[95]. - Gross profit margin for value-added services to non-property owners decreased to 20.2% from 21.3%, mainly due to lower margins in sales assistance services[96]. - Community value-added services saw a gross profit margin decline to 41.7% from 48.5%, primarily due to reduced revenue from parking space sales[100]. - Administrative expenses decreased by approximately 17.2% to RMB57.1 million from RMB69.0 million, due to improved cost control[103]. Employee and Talent Management - As of June 30, 2022, the Group had a total of 3,960 employees, with 2,975 in residential property management, 605 in commercial property management, and 380 in public building property management[155]. - The Group has implemented a systematic "five-talent scheme" to enhance talent quality and broaden its talent pool, including various leadership and management training programs[157]. - The Group's employee remuneration is determined based on duties, performance, and market levels, supported by a competitive incentive plan[156]. Shareholding and Corporate Governance - Redsun Services Group (Holdings) Limited owns 301,994,000 shares, accounting for 72.77% of the total shareholding[193]. - Hong Yang Group Company Limited, Hong Yang International Limited, and Hong Yang Group (Holdings) Limited each have an interest in 301,994,000 shares, also representing 72.77%[193]. - The Company confirmed compliance with the Model Code for Securities Transactions by Directors during the reporting period[180]. - The Company maintains a sufficient public float as required under the Listing Rules[198].

Industry Growth and Market Position - In 2021, the property management industry saw increased attention and expectations due to supportive national policies and heightened service demand [61]. - The company established a leading position in the property management market in Jiangsu province, with ongoing expansion efforts across the country [3]. - The property management industry is expected to experience rapid growth with high certainty, supported by favorable policies and a focus on long-term development and customer value [199]. - The central government has introduced favorable policies emphasizing "stability on six fronts" and "six priorities," which will guide the property management industry towards healthy and sustainable development [197]. - The ongoing reforms and policy support are anticipated to further release benefits for the property management industry in 2022 [197]. Company Performance and Financial Metrics - The Group achieved revenue of RMB1,130.0 million in 2021, representing a 47.2% increase compared to 2020, with a gross profit margin of 28.4%, up by 0.5 percentage points [66]. - Profit for the period was RMB 138.4 million, an increase of 88.7% from RMB 73.3 million in the previous year [107]. - Revenue from property management services accounted for 66.6% of total revenue in 2021, amounting to RMB 753,590,000, compared to 64.6% in 2020 [120]. - The Group's gross profit rose by approximately 49.5% to RMB320.4 million from RMB214.3 million in 2020 [152]. - The gross profit margin for the Group improved to 28.4%, up from 27.9% in the previous year [156]. Service Quality and Customer Satisfaction - The annual results as of December 31, 2021, reflect the company's commitment to providing high-quality services with sincerity [60]. - The Group's property owners' satisfaction score was 88 in 2021, reflecting a continuous improvement over three consecutive years, while the overall satisfaction rate for non-residential services was 98% [78]. - The Group's strategic focus on "customer-centered" service philosophy has led to continuous improvement in service standards and the establishment of a non-residential service product brand [78]. - The company aims to enhance service power and solidify product lines to meet the increasing demand for high-quality products [200]. Expansion and Strategic Initiatives - Future strategies include further market expansion and potential new service offerings to meet evolving customer needs [61]. - The Group entered into equity cooperation with Wuhan Huidehang Elite Property and acquired 80% interest in two Nanjing-based property management companies, enhancing its market share in Central China and filling gaps in the non-residential property service niche market [72]. - The Group's management scale has reached a new level, with a focus on deep market expansion in the Greater Jiangsu Region and major metropolitan areas [67]. - The Group has expanded its geographic presence to 59 cities in China as of December 31, 2021 [138]. Digital Transformation and Innovation - The Group has focused on digital transformation, enhancing its smart service capabilities through various platforms [1]. - The Group has implemented digital upgrades, enhancing management efficiency through the "Hongtu panoramic smart data platform" and other smart management tools, which have been integrated into equity cooperation projects [85]. - The Group was granted a utility model patent technology by the China National Intellectual Property Administration in 2021, enhancing its technological strengths in property management services [86]. - The company is committed to quality and innovation, leveraging service power, operation power, and innovative power to achieve rapid growth [199]. Community Engagement and Social Responsibility - The Group has been actively involved in social responsibility initiatives, including managing affordable housing and participating in pandemic prevention efforts [105]. - The company adheres to the vision of "making lives warmer" and prioritizes integrity in its operations [199].

Revenue Growth - The Group's revenue for the six months ended June 30, 2021, was RMB 529.1 million, representing a 63.7% increase compared to RMB 323.2 million for the same period in 2020[25] - Revenue from property management services was RMB 350.4 million, accounting for 66.3% of total revenue, an increase of 55.2% from RMB 225.8 million in the prior year[26] - Revenue from value-added services to non-property owners was RMB 84.8 million, making up 16.0% of total revenue, which is a 22.9% increase from RMB 69.0 million in the previous year[26] - Revenue from community value-added services reached RMB 93.8 million, accounting for 17.7% of total revenue, reflecting a significant increase of 230.0% from RMB 28.4 million in the same period of 2020[26] - The Group's revenue reached RMB 529.1 million, an increase of 63.7% from RMB 323.2 million in the same period in 2020[55] - Revenue from property management services reached RMB 350.4 million, up RMB 124.6 million or 55.2% from RMB 225.8 million in 2020, driven by rapid expansion in managed projects[104] - Revenue from value-added services to non-property owners increased to RMB 84.8 million, a growth of 22.9% from RMB 69.0 million in 2020, mainly due to increased property sales assistance services[106] - Community value-added services revenue surged to RMB 93.8 million, a significant increase of 230.0% from RMB 28.4 million in 2020, attributed to enhanced community resource utilization and asset management business[108] Profitability - Gross profit was RMB 152.9 million, representing an 80.0% increase compared to RMB 85.0 million for the same period in 2020, with a gross profit margin of 28.9%[27] - Profit for the reporting period was RMB 64.0 million, a 71.2% increase from the adjusted profit of RMB 37.4 million in the same period of 2020[31] - Profit attributable to equity shareholders for the reporting period was RMB 59.8 million, a 60.4% increase from the adjusted profit of RMB 37.3 million in the prior year[31] - Profit for the reporting period was RMB 64.0 million, representing an increase of 71.2% compared to adjusted profit of RMB 37.4 million for the corresponding period of 2020[32] - Profit before income tax expense amounted to RMB 83.9 million, representing an increase of approximately 162.8% from RMB 31.9 million in 2020[126] - The Group's income tax expense increased to RMB 20.0 million, up approximately 133.5% from RMB 8.5 million in 2020, primarily due to higher pre-tax profits[127] Project Management and Expansion - As of June 30, 2021, the Group had 327 contracted projects with a contracted GFA of approximately 49.6 million sq.m., an increase of approximately 60.0% from 31.0 million sq.m. as of June 30, 2020[33] - The number of projects under management was 228, with a GFA under management of approximately 34.4 million sq.m., representing an increase of approximately 83.5% compared to 18.7 million sq.m. as of June 30, 2020[34] - The Group provided property management services to 42 cities in China, with 327 contracted projects and a contracted gross floor area (GFA) of approximately 49.6 million sq.m., representing a 60.0% increase from 31.0 million sq.m. as of June 30, 2020[57] - The number of projects under management increased to 228 as of June 30, 2021, up from 112 in the same period of 2020, indicating a growth of 103.6%[88] - The total gross floor area (GFA) under management was 34,357.6 thousand sq.m. as of June 30, 2021, compared to 18,718.7 thousand sq.m. in 2020, reflecting an increase of 83.8%[88] - The company expanded its geographic presence to 42 cities in China as of June 30, 2021, enhancing its market reach and operational footprint[90] Strategic Initiatives - The Group was awarded the title of "Top 100 Property Management Companies in 2021," moving up 6 places to No.19 in the industry ranking[43] - The Group launched the "Management to Listen" Program, helping over 1,000 property owners to address their needs[45] - The Group's strategic layout includes penetrating the Greater Jiangsu Region and expanding into major metropolitan areas[43] - The Group aims to integrate property services into the basic-level social governance system, enhancing people's sense of well-being and security[39] - The Group established an intelligent community ecosystem and built the Hongtu platform to enhance operational efficiency[52] - The Group aims to enhance user experience and operational efficiency through digitalization of property management services[51] - The Group will establish a service capability nurturing center to attract and nurture talents, emphasizing that people are the primary resource for development[163] - The Group aims to enhance its regional competitiveness in the Greater Jiangsu Region through high-quality acquisitions and integrations, focusing on value-added services for property owners[165] Financial Position - As of June 30, 2021, the Group's total equity was RMB 787.7 million, a 9.3% increase from RMB 720.4 million at the end of 2020[129] - The current ratio decreased to 1.93 as of June 30, 2021, down from 2.70 at the end of 2020, indicating a reduction in liquidity[128] - The Group's net impairment losses on financial assets amounted to RMB 3.2 million, an increase from RMB 1.1 million in the same period of 2020, primarily due to the growth in trade receivables resulting from increased revenue scale[130] - As of June 30, 2021, the Group's current assets were RMB 900.0 million, a decrease from RMB 1,016.7 million as of December 31, 2020, with cash and cash equivalents decreasing by 29.8% to RMB 579.7 million[133] - The Group's total equity increased by 9.3% to RMB 787.7 million as of June 30, 2021, compared to RMB 720.4 million as of December 31, 2020, primarily driven by operating profit growth[134] - Trade receivables increased by approximately 118.3% to RMB 157.4 million as of June 30, 2021, from RMB 72.1 million as of December 31, 2020, due to seasonal collection factors and revenue growth[145] Use of IPO Proceeds - The net proceeds from the initial public offering amounted to approximately HK$398 million, with an additional HK$62.1 million from the full exercise of the over-allotment option[182] - As of June 30, 2021, 40% of the net proceeds (HK$154 million) were used for selective strategic investment and acquisition, with an expected full utilization by the end of 2022[185] - 30% of the net proceeds (HK$15 million) were allocated for R&D and upgrading of intelligent systems, with only HK$3 million utilized so far, and the remaining expected to be fully used by the end of 2023[185] - 10% of the net proceeds (HK$19 million) were used for improving service quality, with HK$10 million utilized, and the remaining expected to be fully used by the end of 2023[185] - 10% of the net proceeds (HK$24 million) were allocated for recruitment of talents and employee training, with HK$5 million utilized, and the remaining expected to be fully used by the end of 2023[185] - 10% of the net proceeds (HK$37 million) were used for employee benefits and working capital, with HK$3 million utilized, and the remaining expected to be fully used by the end of 2023[185] - Total net proceeds available were HK$460 million, with HK$249 million utilized and HK$211 million remaining as of June 30, 2021[185] Corporate Governance - The company is committed to high standards of corporate governance, having adopted the Corporate Governance Code as its own[195] - The company has complied with all applicable code provisions set out in the Corporate Governance Code throughout the reporting period[196]