2025 年 3 月 1 日 公司研究 2025 年初外拓积极，慷慨分红股息率具备吸引力 ——永升服务（1995.HK）跟踪报告 要点 事件：永升服务 2025 年初新拓展项目超过 50 个。 2 月 24 日永升服务公众号发布消息，2025 年初永升服务新拓项目 50 余个，公 司坚持城市深耕，实现有效规模增长，与南京肯德基、西安中国工商银行、京东 京航仓储等项目开展深度合作，拓展多元服务版图，满足客户的多元化服务需求。 点评：基础物管增长稳健，对外拓展积极，股息率具备吸引力。 1）基础物管增长稳健，地产关联业务占比降低。2024H1 公司实现收入 33.7 亿 元，同比增长 5.9%，毛利 7.2 亿元，同比增长 11.4%，归母净利润 2.65 亿元， 同比增长 10.3%。2023 年由于房地产行业下行，关联方经营承压，影响公司发 展速度，但经过业务调整，2024H1 公司业绩增速有所回暖，2024H1 基础物管/ 社区增值/非业主增值/城市服务板块分别实现收入 24.6/4.0/3.6/1.5 亿元，同比 增速分别为+12.4%/-2.6%/-4.1%/-28.5%，基础物管收入占比达到 73.1% ...

Financial Performance - Ever Sunshine Services Group Limited reported a revenue increase of 15% year-over-year for the first half of 2024, reaching HKD 1.2 billion[1]. - The company achieved a net profit margin of 12%, translating to a net profit of HKD 144 million for the same period[1]. - In the first half of 2024, the company achieved a revenue growth of approximately 5.9% year-on-year, reaching RMB 3,371.0 million[15]. - The gross profit rose by 11.4% to RMB 716.8 million, with net profit attributable to shareholders increasing by 10.3% to RMB 265.1 million[15]. - The company recorded revenue of approximately RMB 3,371.0 million for the reporting period, representing an increase of about 5.9% compared to RMB 3,183.7 million in the same period of 2023[50]. - Revenue from property management services for the first half of 2024 was approximately RMB 2,462.5 million, a growth from RMB 2,190.1 million in the same period of 2023[25]. - The company reported a total of 2,279 thousand RMB in revenue from the fee-based model, accounting for 0.1% of total revenue, while the contract-based model accounted for 99.9%[36]. - The company reported a significant increase in cash and cash equivalents at the end of the period, totaling RMB 2,256,561 thousand, compared to RMB 1,750,105 thousand at the end of the previous year[141]. User Growth and Market Expansion - User data indicates a growth in service subscriptions by 20%, with a total of 500,000 active users as of June 30, 2024[1]. - The company plans to expand its market presence in Southeast Asia, targeting a 25% increase in market share by the end of 2025[1]. - The company plans to shift property management services from public domains to household levels to meet expanding customer needs[17]. - The company aims to enhance customer experience through community value-added services, including home living services and parking management[21]. Strategic Initiatives - New product launches in smart city services are expected to contribute an additional HKD 200 million in revenue by the end of 2024[1]. - Strategic acquisitions are being considered to enhance service capabilities, with a budget of HKD 300 million allocated for potential mergers[1]. - Future strategies include expanding community value-added services and increasing investment in technology research and development[17]. - The company emphasizes a "platform + ecosystem" development strategy, leveraging technological innovation for diversified growth[23]. Operational Efficiency - Ever Sunshine Services Group Limited aims to improve operational efficiency by implementing new digital solutions, targeting a 15% reduction in operational costs by 2025[1]. - The company is committed to optimizing its property management portfolio by reallocating resources to more profitable contracts[24]. - The company plans to enhance its property management capabilities by increasing the number of managed properties and optimizing its marketing team to secure more property management contracts[45]. - The company will continue to invest in technology and smart operations to improve service quality and operational efficiency, including upgrading internal management systems and establishing a big data information sharing platform[49]. Challenges and Adaptations - The company is focusing on enhancing service quality and customer experience amid challenges in the real estate sector[16]. - The company continues to adapt its strategies to mitigate the negative impacts of the challenging real estate market environment in China[28]. - The company has strategically exited low-margin and less sustainable community value-added services to focus on higher-quality customer needs[37]. Shareholder and Governance Information - The company has adopted a corporate governance code to enhance accountability and shareholder value[94]. - The company is focused on maintaining strong governance and transparency in its operations and shareholding structure[98]. - The company has established a family trust structure involving multiple entities, ensuring control over significant shareholdings[100]. - The company has a significant concentration of ownership, with major shareholders controlling approximately 84.94% of the issued shares[105]. Acquisitions and Investments - In January 2023, the company completed the acquisition of 90% of Beijing Hangteng Property Management Co., aiming to expand its operational scale and market share[164]. - The cash consideration paid for the acquisition of Beijing Hangteng was RMB 58,124,000[165]. - The identifiable net assets acquired from Beijing Hangteng amounted to RMB 27,342,000, resulting in goodwill of RMB 33,516,000[167]. - Revenue from the newly acquired business of Beijing Hangteng was RMB 35,003,000 for the current year, contributing RMB 2,050,000 to profit[168]. Financial Position and Cash Flow - The net cash inflow from operating activities was RMB 101.6 million, maintaining positive cash flow[15]. - The company's borrowings amounted to approximately RMB 383 million, a decrease from RMB 450 million as of December 31, 2023[78]. - The company reported a net cash outflow from financing activities of RMB 204,801 thousand, compared to RMB 28,621 thousand in the previous year, indicating increased financial strain[141]. - The company’s total liabilities decreased from RMB 103,903 thousand as of December 31, 2023, to RMB 83,367 thousand as of June 30, 2024, a decrease of approximately 19.83%[131]. Employee and Talent Development - The company welcomed hundreds of university graduates in June, emphasizing the importance of nurturing young talent for future growth[18]. - The company is committed to talent acquisition and organizational upgrades to foster a passionate and capable team aligned with its development goals[48]. Dividend and Share Repurchase - The company announced an interim dividend of HKD 0.0839 per share and a special dividend of HKD 0.0336 per share, totaling approximately HKD 145.0 million and HKD 58.1 million respectively[96]. - The company repurchased 15,024,000 of its own ordinary shares at a total cost of RMB 20,180 thousand during the six months ended June 30, 2024[133].

Financial Performance - For the six months ended June 30, 2024, the revenue was approximately RMB 3,371.0 million, an increase of about 5.9% compared to RMB 3,183.7 million for the same period in 2023[1] - The gross profit for the same period was approximately RMB 716.8 million, reflecting an increase of about 11.4% from RMB 643.3 million in 2023[1] - The profit for the first half of 2024 was approximately RMB 325.4 million, up about 11.0% from RMB 293.2 million in the prior year[2] - The profit attributable to owners of the company for the first half of 2024 was approximately RMB 265.1 million, representing a growth of about 10.3% compared to RMB 240.4 million in 2023[2] - Basic and diluted earnings per share for the first half of 2024 were RMB 0.15, compared to RMB 0.14 for the same period in 2023[3] - The overall gross margin for the period was 21.3%, up 1.1 percentage points from 20.2% in the same period of 2023, driven by improvements in property management services[53] Revenue Breakdown - Revenue from property management services reached RMB 2,462,483 thousand, up 12.4% from RMB 2,190,093 thousand in the previous year[8] - Property management services accounted for approximately 73.1% of total revenue, with income reaching about RMB 2,462.5 million, up from RMB 2,190.1 million in the previous year[47] - Revenue from community value-added services decreased slightly to RMB 399,398 thousand, down 2.5% from RMB 410,021 thousand in the same period last year[8] - Revenue from value-added services to non-owners decreased by approximately 4.1% to about RMB 356.6 million, compared to RMB 371.7 million in the previous year[49] Assets and Liabilities - The total assets less current liabilities amounted to RMB 5,429.8 million as of June 30, 2024, compared to RMB 5,317.5 million as of December 31, 2023[5] - Current liabilities totaled RMB 3,399.3 million as of June 30, 2024, down from RMB 3,511.7 million as of December 31, 2023[5] - The net assets attributable to owners of the company were RMB 4,974.3 million as of June 30, 2024, compared to RMB 4,873.1 million as of December 31, 2023[5] - The company's debt-to-asset ratio was 0.72% as of June 30, 2024, down from 0.86% as of December 31, 2023[68] Dividends - The board declared an interim dividend of HKD 0.0839 per share, an increase of 86.4% from HKD 0.045 per share for the same period in 2023[1] - The company declared an interim dividend of HKD 0.0839 per share and a special dividend of HKD 0.0336 per share for the six months ended June 30, 2024[12] Operational Highlights - As of June 30, 2024, the total contracted gross floor area reached approximately 329.5 million square meters, an increase of about 8.3% from June 30, 2023[20] - The managed gross floor area was approximately 236.3 million square meters, representing a 14.9% increase compared to June 30, 2023[20] - The number of contracted projects increased to 1,731, up 10.4% year-over-year, while the number of managed projects rose to 1,426, a 20.4% increase[20] - The eastern region contributed 62.2% of total revenue, with RMB 1,530.8 million generated from a managed area of 127.3 million square meters[23] Strategic Initiatives - The company implemented a strategy of quality expansion, focusing on reallocating resources to more profitable contracts, resulting in the termination of several less profitable management contracts[22] - The company aims to enhance customer experience through community value-added services, including home living services and parking management[19] - The company has established a Commercial Division to enhance its service capabilities in the corporate sector, securing projects from major clients like Geely and JD.com[27] - The company continues to focus on enhancing its independent third-party market development capabilities, targeting regional developers and local governments for project management opportunities[26] Market Conditions and Challenges - The company has maintained a strong market relationship with Xuhui Group, adapting its strategies to mitigate negative impacts from the challenging real estate environment in China[25] - The strategic shift from acquisition-driven growth to organic growth in the property management sector was influenced by the downturn in the Chinese real estate market[81] Corporate Governance - The company has adhered to good corporate governance principles and complied with the relevant listing rules during the reporting period[84] - The audit committee, composed of three independent non-executive directors, reviewed the unaudited interim results for the six months ending June 30, 2024[86] Share Repurchase Program - The company has been authorized to repurchase up to 174,922,000 shares, representing 10% of the total issued shares as of November 20, 2023, and again on June 6, 2024[87] - During the reporting period, the company repurchased a total of 15,024,000 shares at a total cost of approximately HKD 22,172,950[90] - The company believes that the current trading price does not fully reflect its fundamental value, hence the share repurchase program[91] Future Outlook - The company plans to expand its property management portfolio and increase the number of managed properties and building area, focusing on strategic regions with higher population density and consumption capacity[41] - The management team will continue to lead efforts to adapt strategies in response to market trends and improve service quality despite economic challenges[40]

Financial Performance - The company's profit attributable to owners for 2023 was approximately RMB 434.5 million, a decrease of about 9.5% from RMB 480.1 million in 2022[3]. - The company's other income and gains recorded a net income of approximately RMB 54.3 million in 2023, a decrease of 69.1% from approximately RMB 175.5 million in 2022, mainly due to losses from fair value changes of financial assets[13]. - Gross profit decreased by 3.1% to RMB 1,253.0 million, with net profit attributable to the company's owners down 9.5% to RMB 434.5 million[93]. - Operating cash flow reached RMB 913.1 million, marking the strongest annual cash inflow since the company's listing[93]. - The company achieved a historical high in revenue for 2023, with significant optimization in revenue quality and structure, gradually overcoming the downturn in the real estate sector[123]. Revenue Breakdown - In 2023, the total revenue reached approximately RMB 6,537.4 million, an increase from RMB 6,276.5 million in 2022, representing a growth of 4.2%[26]. - Revenue from value-added services provided to non-owners decreased from approximately RMB 964.4 million in 2022 to about RMB 777.6 million in 2023, a decline of approximately 19.4% due to the downturn in the Chinese real estate industry[5]. - Community value-added services revenue decreased by 12.7% from RMB 1,020.1 million in 2022 to RMB 890.3 million in 2023, primarily due to the impact of the overall economic situation and a weak real estate market[29]. - Property management services generated revenue of approximately RMB 4,463.2 million, accounting for 68.2% of total revenue, up from 61.9% in 2022[26]. - Revenue from urban services was approximately RMB 406.0 million, slightly up from RMB 403.4 million in 2022[30]. Expenses and Costs - The company's administrative and selling expenses totaled approximately RMB 566.5 million in 2023, a slight increase of about 0.5% from RMB 563.6 million in 2022, reflecting a focus on improving management efficiency[14]. - The total service costs increased by approximately 6.0% from RMB 4,983.2 million in 2022 to RMB 5,284.4 million in 2023, driven by business expansion[31]. - The gross profit margin for property management services declined from 19.4% in 2022 to 18.8% in 2023, attributed to rising costs post-pandemic[35]. - The gross profit margin for community value-added services increased to 31.3% in 2023 from 29.7% in 2022, due to a lower revenue proportion from lower-margin home living services[35]. Assets and Liabilities - As of December 31, 2023, the company's cash and cash equivalents amounted to approximately RMB 2,341.5 million, an increase from approximately RMB 1,534.4 million as of December 31, 2022, primarily due to net cash inflow from operating activities[9]. - As of December 31, 2023, trade receivables and notes receivable were approximately RMB 2,181.5 million, an increase from approximately RMB 1,771.7 million in 2022, primarily due to slower collection of receivables amid a declining real estate market[22]. - The company's contract liabilities increased to approximately RMB 870.3 million as of December 31, 2023, from approximately RMB 669.2 million in 2022, driven by an increase in the customer base[24]. - Trade payables as of December 31, 2023, were approximately RMB 1,150.3 million, an increase from RMB 1,002.2 million in 2022, mainly due to business expansion and increased subcontracting costs[42]. Strategic Initiatives - The company continues to invest in smart operations and effective cost control measures to enhance operational efficiency[31]. - The company plans to focus on effective scale expansion, emphasizing strategies such as urban deep cultivation and project deep cultivation[97]. - The company aims to enhance risk resistance and strengthen corporate governance, including the introduction of a new female board member to improve governance structure[126]. - The company is committed to expanding its market share through diversified approaches, targeting regional property developers, owners' committees, local governments, and business clients[142]. - The company has established a commercial property division to focus on professional and refined development in the commercial service sector[171]. Market Expansion and Future Outlook - The company expects revenue growth to continue at a rate of 10-12% for the next fiscal year, driven by new service offerings and market expansion[92]. - The company plans to expand its market presence in Southeast Asia, targeting a 30% increase in market share within the next two years[92]. - A strategic acquisition of a local competitor is anticipated to be finalized in Q2 2024, expected to add approximately HKD 300 million in annual revenue[92]. - The company aims to enhance its capabilities in pre-planning and design consulting services, project quality supervision, and other value-added services for non-owners, further diversifying its service offerings[189]. Sustainability and Corporate Responsibility - The company has set a target to reduce carbon emissions by 20% over the next three years as part of its sustainability strategy[92]. - The company aims to create a centralized command center for remote operational monitoring and data analysis to enhance management precision and efficiency[193]. - The company has adopted a strategy to provide consulting services to local property management companies to broaden its business scope and enhance brand recognition[190].

Strategic Acquisitions and Growth Strategy - The company plans to reallocate approximately HKD 796.5 million from strategic acquisitions to general working capital and corporate purposes due to the inability to reach consensus on valuations with potential sellers[7]. - As of December 31, 2023, the company identified 15 potential acquisition targets but none were realized due to valuation disagreements, with all proposed targets' price-to-earnings ratios exceeding the company's target[10]. - The original plan allocated 65% of the net proceeds from the 2021 subscription, approximately HKD 847.6 million, for strategic acquisitions, but only HKD 51.1 million was utilized for the acquisition of Beijing Hangteng[10]. - The company has shifted its expansion strategy from acquisitions to organic growth due to the downturn in the real estate market[11]. - The company has not utilized the net proceeds from the 2021 subscription for strategic acquisitions as of the end of 2023[10]. - Strategic acquisitions are a crucial part of the company's growth strategy, with a focus on pre-selection of targets and post-acquisition management to enhance market share and service capabilities[167]. Financial Performance - The company's revenue for 2023 was approximately RMB 6,537.4 million, an increase of 4.2% compared to RMB 6,276.5 million in 2022[27]. - The gross profit for 2023 was approximately RMB 1,253.0 million, a decrease of 3.1% from RMB 1,293.3 million in 2022[27]. - The profit for 2023 was approximately RMB 530.0 million, down about 8.0% from RMB 575.9 million in 2022, with profit attributable to owners of the company at approximately RMB 434.5 million, a decrease of 9.5% from RMB 480.1 million in 2022[27]. - The net cash inflow from operating activities for the year ended December 31, 2023, was approximately RMB 913.1 million, compared to a net cash outflow of RMB 1,019.7 million in 2022[27]. - The board declared an interim dividend of HKD 0.045 per share for 2023, compared to HKD 0.074 per share in 2022, and proposed a final dividend of HKD 0.0914 per share for 2023, compared to HKD 0.0492 per share in 2022[27]. - The total value of dividends for 2023 will reach 50% of the profit attributable to owners of the company, with a commitment to maintain a payout ratio of no less than 50% over the next three years[27]. - For the year ended December 31, 2023, the total profit attributable to the company's owners was RMB 434,472,000, a decrease of 9.5% from RMB 480,111,000 in 2022[42]. - The basic and diluted earnings per share for 2023 were RMB 0.2484, down from RMB 0.2742 in 2022, reflecting a decline of 9.5%[42]. Assets and Liabilities - As of December 31, 2023, the company's total assets amounted to RMB 5,457.5 million, compared to RMB 4,879.96 million in 2022[31]. - The company's cash and cash equivalents as of December 31, 2023, were RMB 2,341.5 million, an increase from RMB 1,534.4 million in 2022[31]. - As of December 31, 2023, current liabilities increased to RMB 3,511,706,000 from RMB 3,043,734,000 in 2022, representing a rise of 15.4%[44]. - The total assets less current liabilities amounted to RMB 5,317,537,000, compared to RMB 4,999,393,000 in 2022, indicating an increase of 6.4%[44]. - The total equity attributable to the owners of the company rose to RMB 4,873,066,000 in 2023 from RMB 4,595,947,000 in 2022, marking an increase of 6.0%[44]. - Non-controlling interests decreased slightly to RMB 340,568,000 in 2023 from RMB 236,707,000 in 2022, reflecting a growth of 43.9%[44]. Revenue Breakdown - Revenue from property management services reached RMB 4,463,188 thousand, an increase of 14.8% from RMB 3,887,811 thousand in 2022[76]. - Revenue from residential properties was RMB 2,569.0 million, representing 57.6% of total revenue, while non-residential properties generated RMB 1,894.2 million, accounting for 42.4%[142]. - Revenue from community value-added services was approximately RMB 890.3 million, a decrease of about 12.7% compared to RMB 1,020.1 million for the year ended December 31, 2022[146]. - Revenue from non-owner value-added services totaled RMB 777.6 million in 2023, down from RMB 964.4 million in 2022, with significant contributions from Co-marketing Services (28.8%) and Additional Customized Services (43.7%)[153]. Operational Developments - The company continues to focus on property management services, community value-added services, and urban services as its main business operations[46]. - The company established a "Commercial Property Division" in 2023 to enhance professional and refined development in the commercial service sector, securing nine new projects[110]. - The partnership with Xuhui Group remains strong, allowing the company to effectively manage challenges in the real estate market and maintain stable development[108]. - The company has actively expanded into third-party markets, acquiring high-quality projects such as Beijing Anlin Jiayuan and Suzhou Shanlan Jingting in 2023[136]. - The company completed the acquisition of Beijing Hangteng Property Management Co., Ltd. in 2023, while reducing the overall number of acquisitions due to external market conditions[139]. Service Quality and Customer Experience - The company aims to improve service quality and enhance customer experience by reallocating funds to operational needs, aligning with the current market conditions in the real estate sector[11]. - The company continues to enhance its competitive position in the property management sector by improving service quality and expanding its market share[141]. - The company plans to expand its business scope and actively pursue opportunities in urban services, enhancing brand recognition through consulting services for local property management companies[158]. - The company aims to increase the proportion of revenue from community value-added services while improving service quality for sustainable development[147]. Technology and Management Improvements - Investment in upgrading internal management systems, including ERP and data-sharing platforms, is planned to enhance operational efficiency and data analysis capabilities[161]. - The company is investing in technology and smart operations to enhance quality and operational efficiency, having established Linjiu Smart Technology Co., Ltd. in 2019 for digital construction[188]. - The company is committed to nurturing a talented team aligned with its development, focusing on training and growth opportunities for middle management[187].

Investment Rating - The investment rating for the company is adjusted to "Accumulate" [14]. Core Views - The company is focusing on high-quality development and has significantly reduced its reliance on real estate-related businesses. The management is optimizing its project portfolio and enhancing operational efficiency [12]. - The company has shown strong independent development capabilities, with a notable performance in third-party market expansion. However, the impact of real estate market downturns and related party receivables remains a concern [12]. - The financial forecasts for the company have been revised downwards due to the ongoing challenges in the real estate sector, with projected net profits for 2023 and 2024 adjusted to 290 million and 370 million respectively [12]. Financial Performance Summary - Revenue for 2023 is projected at 6,126 million, with a growth rate of -2.4% compared to the previous year [3]. - The net profit attributable to shareholders for 2023 is expected to be 289 million, reflecting a significant decline of 39.8% year-on-year [3]. - The company's earnings per share (EPS) for 2023 is forecasted to be 0.17 yuan [3]. - The return on equity (ROE) is projected to be 5.8% for 2023, indicating a decrease from previous years [3]. Cash Flow and Balance Sheet Summary - The total assets are expected to reach 8,596 million by 2023, with a significant portion in current assets [6]. - The company is projected to have a total liability of 3,582 million in 2023, reflecting an increase from previous years [6]. - Operating cash flow for 2023 is estimated at 513 million, showing a decline from 837 million in 2022 [6].

Financial Performance - For the six months ended June 30, 2023, the group's gross profit margin was 20.2%, a decrease of 5.5 percentage points from 25.7% in the same period of 2022, primarily due to a decline in gross profit margin from property management services and value-added services to non-owners[9]. - The group's revenue for the first half of 2023 increased by 0.7% year-on-year, reaching RMB 3,183.7 million[55]. - The company's profit attributable to owners for the six months ended June 30, 2023, was approximately RMB 240.4 million, a decrease of about 36.3% from approximately RMB 377.4 million in the same period of 2022[110]. - The group's pre-tax profit was approximately RMB 378.7 million, a decrease of about 33.0% from approximately RMB 565.3 million for the six months ended June 30, 2022[141]. - Other income and losses for the group were approximately RMB 50.6 million, a decrease of about 32.4% from approximately RMB 74.9 million in the same period of 2022, mainly due to losses from fair value changes of financial assets[138]. Revenue Breakdown - Revenue from residential properties for the six months ended June 30, 2023, was RMB 1,250.9 million, accounting for 57.1% of total revenue, compared to RMB 986.1 million and 52.1% in the same period of 2022[41]. - Revenue from non-residential properties was RMB 939.2 million, representing 42.9% of total revenue for the first half of 2023, compared to RMB 905.6 million and 47.9% in the same period of 2022[41]. - Property management revenue grew by 15.8% to RMB 2,190.1 million, while community value-added service revenue decreased by 24.8% to RMB 410.0 million[55]. - Revenue from community value-added services was approximately RMB 410.0 million, a decrease of about 24.8% compared to RMB 545.2 million in the same period of 2022[72]. - Revenue from value-added services to non-owners decreased by approximately 31.2% to about RMB 371.7 million, down from RMB 540.5 million in the same period of 2022, primarily due to a weak real estate market[76]. Operational Metrics - The contracted gross floor area increased from 291.4 million square meters as of June 30, 2022, to 304.3 million square meters as of June 30, 2023, representing a growth of 4.4%, while the managed gross floor area slightly decreased from 207.9 million square meters to 205.6 million square meters, a decline of 1.1%[28]. - As of June 30, 2023, non-residential properties accounted for approximately 32.4% of the total managed building area[70]. - The total managed building area as of June 30, 2023, was 205,617 thousand square meters, generating revenue of RMB 2,190.1 million, compared to 207,934 thousand square meters and RMB 1,891.8 million in the same period of 2022[94]. - The group's trade receivables increased to approximately RMB 2,200.3 million as of June 30, 2023, compared to approximately RMB 1,771.7 million as of December 31, 2022, primarily due to a slowdown in the collection of receivables amid market downturn[152]. Strategic Initiatives - The company aims to enhance service quality and innovate service offerings to meet customer expectations for excellence in service[29]. - The company plans to maintain a strategy of quality expansion in its urban service offerings[34]. - The company plans to focus on the development of community value-added services and enhance service quality through increased investment in technology research and development[57]. - The company aims to enhance the proportion of community value-added service revenue and improve service quality for sustainable development[73]. - The company plans to increase the number of managed properties and building area, focusing on strategic regions with higher population density and consumption capacity[81]. Market Position and Recognition - The company has received multiple awards, including being ranked among the top 10 comprehensive strength property service enterprises in China for 2023[42]. - The company expanded its geographical presence to 114 cities in China, aiming for effective scale expansion[63]. - The company maintains a strong market partnership with CIFI Holdings, adapting strategies to navigate the challenging real estate market environment[89]. Financial Position - The group's cash and bank balances as of June 30, 2023, were held in RMB, HKD, and USD, with borrowings amounting to approximately RMB 698 million[7]. - The equity attributable to owners of the company increased to approximately RMB 4,836.4 million as of June 30, 2023, from RMB 4,595.9 million as of December 31, 2022[7]. - Contract liabilities as of June 30, 2023, amounted to approximately RMB 843.1 million, an increase from RMB 669.2 million as of December 31, 2022, mainly due to an increase in the customer base[86]. - The company's asset-liability ratio as of June 30, 2023, was 1.36%, a decrease from 1.58% as of December 31, 2022[120]. Future Outlook - The company remains confident in its development prospects, focusing on service quality and continuous innovation to achieve new breakthroughs and accomplishments[30]. - The company plans to expand its business scope into urban services and other areas, leveraging strategic partnerships established since 2020[174]. - The company plans to enhance its capabilities in pre-planning and design consulting services, project quality supervision, and delivery inspection services to diversify value-added services for non-owners[103]. Shareholder Information - The board has declared an interim dividend of HKD 0.045 per share for the six months ending June 30, 2023, expected to be distributed on December 5, 2023[196]. - The company plans to suspend share transfer registration from November 24 to November 28, 2023, to determine shareholders entitled to the interim dividend[196]. - The company has received a net amount of approximately HKD 1,304,000,000 from the 2021 subscription, intended for future business development or investment opportunities, as well as for working capital and general corporate purposes[194].

Employment and Human Resources - As of December 31, 2022, the company employed 26,685 staff, an increase from 16,709 staff as of December 31, 2021[1]. - The company has established a clear organizational strategy to manage human resources effectively[20]. - The company is committed to promoting gender diversity in its workforce through appropriate recruitment and selection measures[48]. - The company has established comprehensive training programs for employee development, covering various topics including onboarding and professional skills training[173]. Financial Performance - The company achieved a revenue growth of approximately 33.5% in 2022, reaching about RMB 6,276.5 million[37]. - Property management revenue increased by 46.5% to RMB 3,887.8 million, while value-added services for non-owners grew by 11.2% to RMB 964.4 million[37]. - Community value-added service revenue decreased by 7.2% to RMB 1,020.1 million, and urban services revenue rose to RMB 403.4 million[37]. - The company's total revenue for the year ended December 31, 2022, was approximately RMB 942.0 million, with the largest customer, CIFI Group, accounting for 11.1% of total revenue[138]. Corporate Governance - The company aims to enhance its corporate governance practices and ensure compliance with the corporate governance code[26]. - The board of directors has adopted a standard code to regulate transactions involving undisclosed inside information by employees and directors[24]. - The company continues to review and strengthen its corporate governance practices to align with best practices[26]. - The company has established a mechanism to ensure the board receives independent views and opinions, avoiding performance-based equity compensation for independent non-executive directors[32]. - The board of directors has complied with corporate governance code and participated in continuous professional development to enhance their knowledge and skills[99]. Risk Management - The company has established a risk management system that is reviewed annually, with no significant internal control or risk management deficiencies reported[55]. - The company emphasizes the importance of risk management and internal controls to mitigate strategic, operational, financial, and legal risks[71]. - The company's risk assessment procedures consider both internal and external risks that may impact its strategic, operational, compliance, and financial reporting objectives[73]. - The company has a zero-tolerance policy towards corruption and encourages reporting of any suspicious or improper conduct[74]. Shareholder Engagement - The company encourages shareholder participation in annual general meetings to express their opinions and ask questions[62]. - The company has established a shareholder communication policy to facilitate effective communication with shareholders and investors[124]. Board Structure and Committees - The board of directors held four meetings and one annual general meeting during the year ended December 31, 2022, with full attendance from all directors[83]. - The audit committee conducted two meetings to review the financial performance for the year ended December 31, 2021, and the interim financial results for the six months ended June 30, 2022[85]. - The remuneration committee is responsible for reviewing and approving the remuneration policies for directors and senior management, ensuring transparency and alignment with corporate goals[89]. - The nomination committee held one meeting to assess the independence of non-executive directors and review the re-election of retiring directors[96]. - The strategic committee assists the board in formulating and evaluating the company's medium and long-term strategic objectives[97]. Financial Management and Dividends - The company has adopted a dividend policy, with dividends declared at the discretion of the board based on operational performance, cash flow, and financial condition[58]. - The board may decide whether to declare any dividends and their amount, with no predetermined payout ratio[58]. - The company is required by Chinese law to allocate at least 10% of after-tax profits to statutory reserves, which cannot be distributed as cash dividends[58]. - The board proposed a final dividend of HKD 0.0492 per share for the year ended December 31, 2022, subject to shareholder approval[131]. Audit and Compliance - The independent auditor's report on the consolidated financial statements is provided by BDO Limited[169]. - The audit committee's responsibilities include independent review of the company's financial status and monitoring the financial reporting system[85]. - The audit committee reviewed the independence and scope of work of external auditors during the financial year[85]. Company Structure and Ownership - The family trust established by the Lin family is the ultimate holding entity for the company, with Mr. Lin Zhong and Mr. Lin Feng as joint founders[196]. - The company reported a total of 819,326,250 shares owned by Mr. Lin Zhong and Mr. Lin Feng, representing approximately 46.84% of the issued share capital[176]. - Mr. Zhou Hongbin holds 44,695,750 shares, accounting for 2.55% of the company's issued share capital[176]. Debt and Financial Instruments - The total principal amount of the 6% senior notes issued by the company in January 2020 is $567 million, with a maturity date in 2025[184]. - The company issued $150 million of 4.8% senior notes in May 2021, maturing in 2028[186]. - The company has $300 million in 5.375% perpetual capital securities issued in August 2017[187].

Financial Performance - Total revenue for the six months ended June 30, 2023, was approximately RMB 3,183.7 million, a slight increase from RMB 3,162.9 million in the same period of 2022[27]. - For the six months ended June 30, 2023, revenue was approximately RMB 3,183.7 million, an increase of about 0.7% compared to RMB 3,162.9 million for the same period in 2022[33]. - Profit for the first half of 2023 was approximately RMB 293.2 million, down about 33.0% from RMB 437.4 million in 2022[33]. - The company declared an interim dividend of HKD 0.045 per share for the six months ended June 30, 2023, compared to HKD 0.074 for the same period in 2022[33]. - Profit attributable to owners of the company was approximately RMB 240.4 million, a decrease of about 36.3% from RMB 377.4 million in the same period of 2022[151]. Revenue Breakdown - Property management service revenue was RMB 2,190.1 million for the six months ended June 30, 2023, up from RMB 1,891.8 million in 2022, representing an increase of approximately 15.8%[43]. - Community value-added service revenue decreased to RMB 410.0 million in 2023 from RMB 545.2 million in 2022, a decline of about 24.8%[43]. - Revenue from value-added services to non-owners decreased by approximately 31.2% to about RMB 371.7 million, down from RMB 540.5 million in the same period of 2022[103]. - Revenue from urban services reached approximately RMB 208.5 million, a growth of about 13.0% compared to RMB 184.5 million for the same period in 2022[145]. - Revenue from residential properties was RMB 1,250,898,000, representing 57.1% of total revenue, up from 52.1% in 2022[127]. Profitability and Margins - Gross profit decreased by approximately 20.9%, from RMB 812.9 million for the six months ended June 30, 2022, to RMB 643.3 million for the same period in 2023[21]. - The gross margin for property management services was 18.7%, down from 23.5% in the same period of 2022, primarily due to rising costs post-pandemic[9]. - The group's gross profit margin for the period was 20.2%, a decrease of 5.5 percentage points from 25.7% in the same period of 2022, primarily due to declines in the gross profit margins of property management services and value-added services to non-owners, along with a reduction in revenue from higher-margin community value-added services[176]. - The gross profit margin for community value-added services improved to 43.4% from 42.6% in the same period of 2022, attributed to a decrease in the proportion of lower-margin home living service revenue[147]. - The gross profit margin for urban services remained stable at 7.8%, compared to 7.2% in the same period of 2022[177]. Assets and Liabilities - The net current assets as of June 30, 2023, were approximately RMB 2,141.0 million, compared to RMB 1,836.2 million as of December 31, 2022[12]. - The company reported trade receivables of RMB 2,200.3 million as of June 30, 2023, an increase of approximately 24.2% from RMB 1,771.7 million at the end of 2022[49]. - Total current liabilities increased to RMB 3,247,295,000 as of June 30, 2023, compared to RMB 3,043,734,000 as of December 31, 2022, reflecting a growth of 6.7%[63]. - The company’s total assets less current liabilities reached RMB 5,264,664,000 as of June 30, 2023, up from RMB 4,999,393,000 as of December 31, 2022, indicating an increase of 5.3%[63]. - The company’s total liabilities decreased to RMB 148,344,000 for non-current liabilities as of June 30, 2023, down from RMB 166,739,000 as of December 31, 2022, a decrease of 11.0%[63]. Operational Metrics - The total managed building area as of June 30, 2023, was 205,617 thousand square meters, a slight decrease from 207,934 thousand square meters in the same period of 2022[3]. - As of June 30, 2023, the contracted building area reached 304,252 thousand square meters, an increase from 291,442 thousand square meters in 2022, representing a growth of approximately 4.0%[83]. - The number of managed projects increased to 1,568, reflecting a growth of 6.6% year-over-year[112]. - Non-residential properties accounted for approximately 32.4% of the total managed building area as of June 30, 2023[96]. - The managed building area in the northern region decreased to 21,327 thousand square meters, with revenue of RMB 263,217,000, accounting for 12.0% of total revenue[116]. Strategic Initiatives - The company aims to expand its business scope into urban services and enhance its operational efficiency through standardization, centralization, digitization, and automation[6][7]. - The company aims to enhance its service offerings through technological innovation and a "platform + ecosystem" development strategy[52]. - The company plans to continue enhancing talent acquisition and organizational upgrades to support its growth strategy[19]. - The company aims to diversify its service offerings and expand into non-residential properties, such as hospitals and industrial parks, to capture social service opportunities[163]. - Strategic mergers and acquisitions are a key part of the company's growth strategy, aimed at increasing market share and expanding regional business scale[92]. Human Resources - The company employed 28,969 staff as of June 30, 2023, compared to 26,685 staff as of December 31, 2022[196]. - The company’s employee costs, including director remuneration, amounted to RMB 1,202,423,000 for the six months ended June 30, 2023, compared to RMB 1,090,227,000 for the same period in 2022, representing an increase of 10.3%[69]. Cash Flow - The net cash inflow from operating activities was approximately RMB 100.1 million, a decrease from RMB 134.4 million in the same period of 2022, mainly due to a reduction in operating profit[188]. - The net cash outflow from financing activities was approximately RMB 28.6 million, significantly lower than RMB 248.0 million in the same period of 2022, primarily due to a decrease in dividend payments during the period[189]. Investment and Use of Proceeds - Approximately 55% of the net proceeds from the IPO, or about HKD 375.6 million, is planned for seeking strategic acquisitions and investment opportunities[197]. - About 26% of the net proceeds, or approximately HKD 177.6 million, will be used to establish smart communities utilizing the latest internet and information technology to enhance service quality[197]. - The company plans to allocate approximately 9%, or about HKD 61.5 million, for the development of a one-stop service community platform and the "Yue Life" online service platform[197]. - The board has decided to change the intended use of the unutilized net proceeds, now focusing on acquiring or investing in quality property management service providers operating in regional areas[198].

Financial Performance - The revenue for 2022 was approximately RMB 6,276.5 million, an increase of 33.5% compared to RMB 4,702.8 million in 2021[1]. - The gross profit for 2022 was approximately RMB 1,293.3 million, slightly down by 0.5% from RMB 1,299.9 million in 2021[1]. - The profit for 2022 was approximately RMB 575.9 million, a decrease of 16.8% from RMB 692.5 million in 2021, with profit attributable to owners of the company at approximately RMB 480.1 million, down 22.2% from RMB 617.0 million in 2021[1]. - The total comprehensive income for the year was RMB 575.9 million, down from RMB 692.5 million in 2021[6]. - Basic earnings per share for 2022 were RMB 0.2742, compared to RMB 0.3663 in 2021[8]. - The overall gross margin for 2022 was 20.6%, down from 27.6% in 2021, a decrease of 7.0 percentage points, mainly due to lower gross margins in property management and community value-added services[137]. - Profit before tax for the year ended December 31, 2022, was approximately RMB 741.0 million, a decrease of about 16.9% from approximately RMB 891.4 million in 2021[145]. - Net profit attributable to the owners of the company for 2022 was approximately RMB 480.1 million, down about 22.2% from approximately RMB 617.0 million in 2021[147]. Revenue Sources - The main source of revenue was property management services, contributing RMB 2,654,425 thousand, which accounted for a significant portion of total revenue[31]. - Revenue from customer contracts amounted to RMB 6,275,653 thousand for the year ended December 31, 2022, compared to RMB 4,701,850 thousand in 2021, indicating a growth of about 33.4%[28]. - Revenue from community value-added services reached RMB 1,099,484 thousand, while non-owner value-added services generated RMB 867,362 thousand[31]. - Revenue from property management services reached RMB 3,887,811 thousand in 2022, a significant increase from RMB 2,654,425 thousand in 2021, marking a growth of approximately 46.4%[100]. - Revenue from urban services reached approximately RMB 403.4 million for the year ended December 31, 2022, following the acquisition of Meizhong Environment in October 2021[129]. - Revenue from community value-added services was approximately RMB 1,020.1 million in 2022, a decrease of about 7.2% from RMB 1,099.5 million in 2021[102]. - Revenue from value-added services to non-owners increased by approximately 11.2% to RMB 964.4 million in 2022, up from RMB 867.4 million in 2021[111]. Assets and Liabilities - The total assets decreased to RMB 4,879.96 million in 2022 from RMB 5,328.64 million in 2021[12]. - The net asset value increased to RMB 4,832.65 million in 2022 from RMB 4,691.74 million in 2021[12]. - Trade receivables and notes receivable increased to RMB 1,771.7 million in 2022 from RMB 788.3 million in 2021[10]. - The company reported contract liabilities of RMB 669,185,000 as of December 31, 2022, up from RMB 597,347,000 in 2021, indicating a growth of about 12%[38]. - Trade payables rose to RMB 1,002,163,000 in 2022 from RMB 586,364,000 in 2021, representing an increase of approximately 71%[46]. - The company's liquidity ratio (current assets/current liabilities) was 1.6 as of December 31, 2022, down from 2.2 as of December 31, 2021[166]. Dividends - The board recommended a final dividend of HKD 0.074 per share for the year ended December 31, 2022, compared to HKD 0.1299 per share in 2021[1]. - The proposed final dividend for the year ended December 31, 2022, is HKD 0.0492 per share, amounting to HKD 86,062,000, a decrease from HKD 227,654,000 in 2021[54]. - The company declared an interim dividend of HKD 0.074 per share for 2022, totaling RMB 113,071,000, compared to no interim dividend in 2021[54]. Growth and Expansion - As of December 31, 2022, the contracted gross floor area for property management services was approximately 303.4 million square meters, an increase of about 12.0% from 270.8 million square meters as of December 31, 2021[1]. - The managed gross floor area reached approximately 210.0 million square meters, reflecting a growth of approximately 22.8% compared to the previous year[70]. - The company expanded its geographical presence to 116 cities in China, enhancing its market reach and operational scale[74]. - The company aims to enhance its service offerings through technology innovation and a "platform + ecosystem" development strategy[58]. - The company aims to expand its market share by diversifying its third-party market development efforts, targeting regional developers and local governments[85]. - Strategic acquisitions have been a key part of the company's growth, with a focus on increasing market share and expanding regional business scale[89]. Operational Efficiency - The company intends to invest further in technology and smart operations to improve service quality and operational efficiency, including the establishment of a centralized command center for remote monitoring and data analysis[122]. - The company will optimize its internal management systems, including ERP, financial, and HR systems, to enhance operational precision and efficiency[124]. - The company's administrative and selling expenses totaled approximately RMB 563.6 million in 2022, an increase of about 21.2% from approximately RMB 464.9 million in 2021, driven by an increase in personnel due to business growth[142]. Corporate Governance - The company has adhered to good corporate governance principles and complied with the corporate governance code as per the Hong Kong Stock Exchange listing rules for the year ended December 31, 2022[196]. - The audit committee held two meetings during the year ended December 31, 2022, to review the annual financial performance and interim financial results, ensuring compliance and risk management[199]. - The company has made arrangements for employees to confidentially report any misconduct related to financial reporting and internal controls[199].