此 乃 要 件 請 即 處 理 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 通 函 的 內 容 概 不 負 責，對 其 準 確 性 或 完 整 性 亦 不 發 表 任 何 聲 明，並 明 確 表 示，概 不 對 因 本 通 函 全部或任何部分內容而產生或因倚賴該等內容而引致的任何損失承擔任何責任。 閣 下 如 對 本 通 函 任 何 內 容 或 將 採 取 的 行 動 有 任 何 疑 問，應 諮 詢 閣 下 的 股 票 經 紀 或 其 他 註 冊 證 券 交 易 商、銀 行 經 理、律 師、專 業 會 計 師 或 其 他 專 業 顧 問。 閣 下 如 已 售 出 或 轉 讓 名 下 所 有 的 蘇 新 美 好 生 活 服 務 股 份 有 限 公 司 股 份，應 立 即 將 本 通 函 及 隨 附 代 表 委 任 表 格 送 交 買 主 或 承 讓 人 或 經 手 買 賣 或 轉 讓 的 銀 行、股 票 經 紀 或 其 他 代 理 商，以 便 轉 交 買 主 或 承 讓 人。 Suxin Joyful Life Services Co., Ltd. 蘇 ...

香 港 交 易 及 結 算 所 有 限 公 司 及 香 港 聯 合 交 易 所 有 限 公 司 對 本 公 告 的 內 容 概 不 負 責，對其準確性或完整性亦不發表任何聲明，並明確表示概不就因本公告全部或 任何部分內容而產生或因依賴該等內容而引致的任何損失承擔任何責任。 Suxin Joyful Life Services Co., Ltd. 蘇 新 美 好 生 活 服 務 股 份 有 限 公 司 （於中華人民共和國註冊成立的股份有限公司） （股份代號：2152） 重續持續關連交易 重續持續關連交易 董事會宣佈，於2024年11月28日（ 交易時段後 ），本公司(i)與高新自來水訂立新 供水總協議及(ii)與蘇高新公司訂立新物業管理服務總協議，期限自2025年1月1 日 起 至 2027 年 12 月 31 日 止 。 為 使 本 集 團 所 有 持 續 關 連 交 易 協 議 的 期 限 覆 蓋 同 期，於2024年11月28日（ 交易時段後 ），潤嘉（ 本公司之全資附屬公司 ）與高新自 來水亦訂立新服務採購框架協議，該協議期限為自2025年1月1日起至2027年12 月31日止，據此，現有服務採購框架協 ...

Company Locations and Offices - The company's registered office and headquarters are located at Room 3001, 30/F, SND International Commerce Tower, 28 Shishan Road, Gaoxin District, Suzhou, Jiangsu Province, PRC[3] - The principal place of business in Hong Kong is at 40/F, Dah Sing Financial Centre, 248 Queen's Road East, Wan Chai, Hong Kong[3] - The H Share Registrar is Computershare Hong Kong Investor Services Limited, located at Shops 1712-1716, 17th Floor, Hopewell Centre, 183 Queen's Road East, Wan Chai, Hong Kong[4] - The company's auditor is Ernst & Young, located at 27/F, One Taikoo Place, 979 King's Road, Quarry Bay, Hong Kong[4] - The compliance advisor for the company is Dongxing Securities (Hong Kong) Company Limited, located at 7503B–7504, 75/F, International Commerce Centre, 1 Austin Road West, Kowloon, Hong Kong[4] Financial and Legal Advisors - The company's principal banks include Industrial and Commercial Bank of China, Agricultural Bank of China, Hua Xia Bank, Bank of Communications (Hong Kong) Limited, and Chiyu Banking Corporation Limited[5] - The company's legal advisors include Grandall Zimmern Law Firm for Hong Kong law and Jiangsu He & Partners Law Firm for PRC law[4] Company Information and Stock Details - The company's website is www.suxinfuwu.com[5] - The stock code for the company on the Hong Kong Stock Exchange is 2152[5] - The Group's H shares were listed on the Main Board of the Stock Exchange on 24 August 2022 by way of global offering[78] Board of Directors - The company's board of directors includes executive directors Mr. Cui Xiaodong (Chairman), Mr. Zhou Jun, and Mr. Chen Mingdong (appointed with effect from 14 June 2024), and non-executive directors Ms. Li Xin, Mr. Cao Bin, and Mr. Zhang Jun[2] Company Achievements and Rankings - The Group has been recognized as one of the Top 100 Property Management Companies of China for nine consecutive years since 2016[79] - The Group was ranked 33rd among the 2024 Top 100 Property Management Companies of China by CIA in terms of overall strength[79] - The Group was honored as one of the "Leading Smart City Services Companies in China" by CIA in 2024[79] - Shishan Cultural Square, a project under management, was accredited as "China Five-Star Property Service Project in 2024"[79] - The Group was ranked 33rd among the Top 100 Property Management Companies in China in 2024[80] - The Group's Lion Mountain Cultural Plaza project was awarded the "2024 China Five-Star Property Service Project"[80] Property Management and Services - The Group's total contracted gross floor area reached 18.0 million sq.m. as of 30 June 2024, representing a 14.6% increase compared to 30 June 2023[85][86] - The Group managed 139 projects with a total GFA of over 16.5 million sq.m. as of 30 June 2024[85][86] - The Group's basic residential property management services grew significantly, with GFA under management increasing from 7,943.7 thousand sq.m. in 2023 to 9,506.6 thousand sq.m. in 2024, a 19.7% increase[90] - The Group provided municipal infrastructure services to 32 projects as of 30 June 2024[93][96] - The Group managed public facilities with a GFA of approximately 3.8 million sq.m. as of 30 June 2024[94][97] - The Group operated three waste collection centers with a maximum daily processing capacity of 1,200 tons of household waste and 50 tons of bulky waste as of 30 June 2024[99] - The Group's basic commercial property management services expanded, with GFA under management increasing from 3,453.1 thousand sq.m. in 2023 to 3,849.4 thousand sq.m. in 2024, an 11.5% increase[90] - The Group's total number of managed projects increased from 111 in 2023 to 139 in 2024, a 25.2% growth[90] - The company operates three waste treatment centers with a maximum daily processing capacity of 1,200 tons of domestic waste and 50 tons of bulky waste as of June 30, 2024[101] - The company manages 61 commercial properties with a total GFA of approximately 9.5 million sq.m. and 31 residential properties with a total GFA of approximately 3.2 million sq.m. as of June 30, 2024[103][106] Financial Performance - Group revenue increased by 28.3% from RMB348.8 million in H1 2023 to RMB447.5 million in H1 2024, driven by growth in city services and commercial property management[118][120] - City services revenue grew 39.9% to RMB288.3 million, primarily due to expansion of municipal infrastructure services and addition of public facilities like cultural and sports complexes[118][120] - Commercial property management revenue increased 27.7% to RMB119.4 million, driven by growth in managed commercial property sales offices and industrial park projects[118][120] - Residential property management revenue decreased 16.3% to RMB32.2 million, mainly due to the closure of the Haixu Lanting project[119][120] - Property leasing revenue declined 28.9% to RMB7.6 million, primarily due to lower occupancy rates at Jinlin Apartment[119][120] - Gross profit increased 18.5% to RMB88.1 million, with a gross profit margin of 19.7%, down from 21.3% in H1 2023[127][128] - Cost of sales rose to RMB359.5 million, up from RMB274.5 million in H1 2023, primarily due to new projects[124][125] - City services gross profit margin decreased to 20.3% from 22.0%, while commercial property management margin improved to 18.3% from 17.7%[127] - Property leasing gross profit margin dropped significantly to 62.1% from 84.1% in H1 2023[127] - Residential property management gross profit margin declined to 8.5% from 9.0%[127] - Gross profit for city services increased by 29.6% from RMB45.3 million to RMB58.7 million due to expanded integrated city services and new public facilities[130] - Gross profit for commercial property management services rose by 32.4% from RMB16.5 million to RMB21.9 million, driven by increased management of sales offices and industrial parks[130] - Gross profit for residential property management services decreased by 20.8% from RMB3.5 million to RMB2.7 million due to the closure of the Haixu Lanting project[130] - Gross profit for property leasing services dropped by 47.5% from RMB9.0 million to RMB4.7 million due to lower occupancy rates at Jinlin Apartment[130] - Other income and gains decreased by 41.5% from RMB11.5 million to RMB6.7 million, primarily due to reduced exchange differences[130] - Other expenses surged by 20.9 times from RMB0.6 million to RMB13.0 million due to fair value losses on investment properties[133] - Finance costs decreased by 13.5% from RMB7.9 million to RMB6.8 million due to lower bank loan interest rates and partial loan repayments[134] - Profit for the period decreased from RMB34.5 million to RMB32.4 million, mainly due to increased other expenses[136] Financial Position and Assets - Investment properties decreased from RMB332.7 million to RMB322.2 million due to a decline in the fair value of Jinlin Apartment[145] - Equity investments designated at fair value through other comprehensive income stood at RMB4.8 million as of 30 June 2024[146] - Trade receivables increased by 31.2% from RMB295.1 million as of 31 December 2023 to RMB387.2 million as of 30 June 2024, driven by the expansion of city services and unsettled payments for integrated city services projects[154][155] - Trade payables increased by 25.4% from RMB301.3 million as of 31 December 2023 to RMB377.8 million as of 30 June 2024, primarily due to unsettled payments for integrated city services projects[154][155] - Contract liabilities decreased by 24.3% from RMB53.7 million as of 31 December 2023 to RMB40.6 million as of 30 June 2024, mainly due to a decrease in advance receipts[156][159] - Total current assets increased by 1.6% from RMB868.0 million as of 31 December 2023 to RMB881.8 million as of 30 June 2024, driven by the expansion of city services and increased trade receivables[157][160] - Total current liabilities increased by 9.9% from RMB510.9 million as of 31 December 2023 to RMB561.6 million as of 30 June 2024, primarily due to increased trade payables[157][160] - Net current assets decreased by 10.3% from RMB357.1 million as of 31 December 2023 to RMB320.3 million as of 30 June 2024[157][160] - Cash and cash equivalents amounted to RMB313.8 million as of 30 June 2024, with RMB190.6 million denominated in RMB and HK$135.0 million (equivalent to RMB123.2 million) in Hong Kong dollars[158][161] - Interest-bearing bank loans amounted to RMB114.1 million as of 30 June 2024, all denominated in RMB and carried at fixed rates[164] - The Group's total borrowings as of 30 June 2024 were RMB114.063 million, a decrease from RMB119.063 million as of 31 December 2023[165] - Capital expenditures for the six months ended 30 June 2024 were RMB13.3 million, significantly lower than the RMB49.0 million recorded as of 31 December 2023[168] - Other liabilities as of 30 June 2024 were RMB175.6 million, slightly increased from RMB174.0 million as of 31 December 2023[170] - The Group's gearing ratio for the six months ended 30 June 2024 was 35.8%, a slight decrease from 36.1% as of 31 December 2023[171] - The Group's bank loans of approximately RMB114.1 million were secured by investment properties and buildings with a carrying value of RMB52.4 million as of 30 June 2024[171] Strategic Plans and Investments - The company plans to expand its business scale through mergers and acquisitions, equity investments, and strategic cooperation to improve project bidding rates and business growth rates[105][108] - The company aims to fully enter the Jiangsu Province market, optimizing service strategies and expanding its service range to establish a comprehensive business network[110][111] - The company will enhance service quality and customer satisfaction through regular feedback surveys, staff training, and customized property solutions[112][113] - The company will accelerate digital development by promoting integrated customer service centers and WeChat Apps, improving service quality and efficiency through smart property management systems[112][113] - The Group successfully acquired land use rights in Suzhou for RMB49.57 million, with full payment completed by the report date[184] - The company successfully acquired the land use rights for Suzhou land at a cost of RMB 49.57 million, paid in two installments of 50% each, with full payment completed by the report date[187] - The company raised net proceeds of approximately HK$176.3 million from the Global Offering, including HK$8.78 million from the partial exercise of the Over-allotment Option[189] - The company reallocated HK$52.9 million of net proceeds from "Acquisition of office building in Hong Kong for own use and leasing" to fund the "Acquisition of the land in the PRC"[190] - The company plans to utilize the net proceeds according to the plans set out in the prospectus dated 10 August 2022 and the 2024 UOP Announcement, with no other changes to the use of remaining unutilized net proceeds[191] - The company allocated HK$52.9 million for the acquisition of other property management companies and companies providing city services and property management services, with completion expected by 31 December 2024[192] - The company allocated HK$52.9 million for strategic investments in waste collection centers and companies providing operational and management services to waste collection centers, with completion expected by 31 December 2024[192] - The company allocated HK$26.4 million for the establishment of its own brand "Suxin Leju" and the launch of apartment management and operational services for housing for talents, with completion expected by 31 December 2024[193] - The company allocated HK$14.1 million for investments in companies providing elderly care, nursing, and medical services, with no specific completion date provided[193] - As of 30 June 2024, the company had unutilized net proceeds of HK$52.9 million, with expected full utilization by 31 December 2024[193] - Technological investment of HK$71 million allocated for the Group's technologies and intelligent operations, with full utilization expected by 31 December 2024[197] - HK$53 million allocated for talent training and retention, to be fully utilized by 31 December 2024[197] - HK$17.6 million allocated for working capital and other general corporate purposes, with full utilization expected by 31 December 2024[197] - Total net proceeds allocated for various purposes amounted to HK$176.30 million, with HK$108.08 million remaining unutilized as of 30 June 2024[197] - HK$17.6 million of net proceeds allocated for the establishment of the Group's own brand "Suxin Leju" and launch of apartment management services, with actual utilization delayed to 1 January 2024[198][199] - Net proceeds for the "Suxin Leju" project amounted to HK$24.11 million for the six months ended 30 June 2024[198][199] - Funds were reallocated to support the Company's acquisition of Suzhou land[198][199] Risk Management and Financial Instruments - The Group's major financial instruments include bank loans, finance leases, and other liabilities, with risks managed through credit verification and liquidity monitoring[174][175][176] - The Group does not implement any foreign currency hedging policy but closely monitors foreign exchange exposure[177] Subsequent Events and Acquisitions - No significant investments, acquisitions, or disposals of subsidiaries, associates, or joint ventures occurred during the six months ended 30 June 2024[183] - No subsequent events after 30 June 2024 have had a material impact on the Group's operating and financial performance[186]

Financial Performance - For the six months ended June 30, 2024, the total revenue of Suxin Joyful Life Services Co., Ltd. was approximately RMB 447.5 million, an increase of about 28.3% compared to RMB 348.8 million for the same period in 2023[2]. - The gross profit for the same period was approximately RMB 88.1 million, representing an increase of about 18.5% from RMB 74.3 million in 2023, with a gross margin of 19.7%[2]. - The profit for the period was approximately RMB 32.4 million, a decrease of about 6.3% from RMB 34.5 million in the same period of 2023[2]. - The net profit attributable to equity holders of the company was RMB 31.2 million, down from RMB 32.6 million in 2023[1]. - Basic earnings per share for the period were RMB 0.31, compared to RMB 0.32 in the previous year[1]. - The group's profit before tax for the six months ended June 30, 2024, was RMB 359,473,000, an increase from RMB 274,450,000 for the same period in 2023, representing a growth of approximately 30.9%[22]. - The net profit for the period decreased by approximately 6.3% from RMB 345 million to RMB 324 million, mainly due to increased other expenses[71]. Revenue Breakdown - Revenue from urban services was RMB 288,319,000, up 39.8% from RMB 206,069,000 in the previous year[20]. - Revenue from commercial property management services increased to RMB 119,416,000, representing a 27.7% rise from RMB 93,538,000[20]. - Revenue from residential property management services decreased by approximately 16.3% to about RMB 32.2 million, mainly due to the withdrawal of the Haishulan project[60]. - Revenue from property leasing services fell by approximately 28.9% to about RMB 7.6 million, primarily due to a decrease in the occupancy rate of the Jinlin Apartment[60]. Assets and Liabilities - As of June 30, 2024, total non-current assets increased to RMB 778,030,000 from RMB 748,592,000 as of December 31, 2023, representing a growth of approximately 3.5%[6]. - Current assets totaled RMB 881,833,000, up from RMB 868,041,000, indicating an increase of about 1.9%[6]. - Total current liabilities increased to RMB 561,583,000 from RMB 510,929,000, marking an increase of around 9.9%[7]. - The company's total liabilities increased, reflecting ongoing operational demands and project commitments[81]. Cash Flow and Investments - The total value of cash and cash equivalents decreased to RMB 313,757,000 from RMB 397,318,000, a decline of about 21.1%[6]. - The company successfully acquired land use rights in Suzhou for RMB 49.57 million, with payments structured in two installments[93]. - The net proceeds from the global fundraising amounted to approximately HKD 176.3 million, with specific allocations for strategic investments and service enhancements[95]. Employee and Operational Metrics - The total employee benefits expenses for the six months ended June 30, 2024, amounted to RMB 92,647,000, compared to RMB 85,762,000 for the same period in 2023, reflecting an increase of about 8.2%[22]. - The company has a total of 1,639 full-time employees as of June 30, 2024, a slight decrease from 1,647 employees as of December 31, 2023[98]. - The company is actively hiring qualified personnel with property management experience to support ongoing business growth[98]. Corporate Governance and Compliance - The company has maintained high standards of corporate governance, ensuring shareholder interests are protected[99]. - The audit committee has reviewed the unaudited condensed consolidated financial statements for the six months ending June 30, 2024, and found them to be properly prepared according to applicable listing rules[103]. - The company has adhered to the standards for directors and supervisors conducting securities transactions as of June 30, 2024[100]. Market Position and Recognition - The company has maintained a strong market position in the Yangtze River Delta region, particularly in Suzhou, contributing to business growth[46]. - The company has been recognized as one of the top 100 property service enterprises in China for nine consecutive years since 2016[46]. - The company ranked 33rd in the 2024 China Property Service Top 100 Enterprises list[46]. Future Outlook and Strategy - The company plans to expand its business scale through mergers and acquisitions and equity investments, focusing on project completion and bidding processes[57]. - The company aims to comprehensively enter the Jiangsu market, optimizing service strategies to ensure continuous business growth[58]. - The company is focused on expanding its market presence through the provision of integrated urban services and property management[49].

Financial Performance - The Group's trade receivables increased by approximately 67.2% from approximately RMB176.5 million as of 31 December 2022 to approximately RMB295.1 million as of 31 December 2023, primarily due to the expansion of city services[6]. - The total current assets increased by approximately 47.2% from approximately RMB589.9 million as of 31 December 2022 to approximately RMB868.0 million as of 31 December 2023, mainly due to the expansion of city services[14]. - The Group's net current assets increased by approximately 80.8% from approximately RMB197.5 million as of 31 December 2022 to approximately RMB357.1 million as of 31 December 2023[14]. - The company reported a total revenue of 1.2 billion in 2023, representing a year-over-year growth of 15%[144]. - User data indicates an increase in active users by 20% to 500,000 by the end of 2023[144]. - The company has projected a revenue growth of 10% for the next fiscal year, targeting 1.32 billion[144]. Investments and Acquisitions - The company submitted a bid for the acquisition of 100% equity interest in Sutong Kejia at a final bid price of RMB1 on August 10, 2023[28]. - The company also submitted a bid for the acquisition of 100% equity interest in Runjia, agreeing to acquire 49% for RMB2,053,500 and 51% for RMB2,137,300, totaling RMB4,190,800[28]. - The Runjia acquisition was completed on September 4, 2023, and included a services procurement framework agreement with Suzhou Water Supply Co for maintenance and sanitation services until December 31, 2025[29]. - The company plans to purchase an office building in Hong Kong for both own use and leasing, aligning with its strategy to enhance cooperation with local companies[29]. - The company did not have any other significant investments or acquisitions during the year ended December 31, 2023[31]. - The acquisition of Sutong Kejia and Runjia constituted connected transactions under Chapter 14A of the Listing Rules[28]. Financial Position and Liabilities - The Group's contract liabilities increased by approximately 34.9% from approximately RMB39.8 million as of 31 December 2022 to approximately RMB53.7 million as of 31 December 2023, primarily due to the addition of management projects[11]. - The total current liabilities increased by approximately 30.2% from approximately RMB392.3 million as of 31 December 2022 to approximately RMB510.9 million as of 31 December 2023, primarily due to the increase in trade payables related to city services expansion[14]. - The Group's borrowings totaled approximately RMB119.1 million as of 31 December 2023, a slight decrease from RMB122.5 million as of 31 December 2022[17]. - The Group recorded other liabilities of approximately RMB174.0 million as of 31 December 2023, compared to approximately RMB171.0 million as of 31 December 2022[18]. Risk Management - The Group's liquidity risk is managed by monitoring credit and liquidity risks associated with financial instruments[20]. - The Group is focused on managing and supervising financial risks related to bank loans, finance leases, and other liabilities[54]. - The Company emphasizes the importance of risk management and internal audit as part of its governance structure[91]. - The Company has a structured approach to risk management, ensuring timely and effective measures are in place[54]. Corporate Governance - The Company has established an Audit Committee to review and supervise the financial reporting process and internal control system[91]. - The Company has established a Remuneration Committee to review and provide advice on the remuneration policy for Directors and senior management, ensuring a formal and transparent procedure[95]. - The Company has a structured approach to ensure compliance with corporate governance standards, enhancing decision-making capabilities[108]. - The Board comprises at least three independent non-executive Directors, ensuring a strong element of independence for effective judgment[113]. - The Company has complied with the principles of good corporate governance as of December 31, 2023, with some deviations from code provisions B.2.2 and C.2.1[190]. Strategic Focus and Future Plans - The Group plans to utilize net proceeds of HK$ 52.9 million for acquisitions of other property management companies by 31 December 2024[65]. - Strategic investments in waste collection centers and companies providing operational services are projected to utilize HK$ 52.9 million by 31 December 2024[65]. - The establishment of the Group's own brand "Suxin Leju" is expected to require an investment of HK$ 26.4 million by 31 December 2024[65]. - The Group aims to achieve full utilization of net proceeds by the end of 2023[65]. - The company is expanding its market presence in three new cities, aiming for a 25% increase in market share[144]. - A strategic acquisition of a local competitor is anticipated to enhance service offerings and increase customer base by 30%[144]. Management and Personnel - As of 31 December 2023, the Group had a total of 1,647 full-time employees in China, an increase from 1,226 employees as of 31 December 2022[67]. - The staff cost recognized as expenses for the Group amounted to approximately RMB 174.0 million for the year ended 31 December 2023, compared to approximately RMB 161.3 million for the previous year[67]. - The company has a strong focus on project management and operations across its senior management team[133][135]. - The management team collectively brings diverse expertise from various sectors, enhancing the company's strategic capabilities[131]. Technology and Innovation - Investment in technology development has increased by 40%, focusing on enhancing customer experience and operational efficiency[144]. - The company has implemented a new customer feedback system, which is expected to improve customer satisfaction scores by 15%[144]. - The company’s investments in technologies and intelligent operations increased as a result of business expansion during the year[35]. Compliance and Training - All Directors have participated in continuous professional development to enhance their knowledge and skills during the year ended December 31, 2023[118]. - The Company emphasizes the importance of training regarding responsibilities and obligations under Listing Rules and relevant laws for all Directors[120]. - The Company has arranged training for its Directors, providing them with reading materials on relevant topics to ensure understanding of business operations[120].

Financial Performance - For the year ended December 31, 2023, the total revenue of the group was approximately RMB 725.1 million, an increase of about 35.7% compared to RMB 534.2 million for the same period in 2022[1]. - The gross profit for the year ended December 31, 2023, was approximately RMB 147.0 million, up about 18.9% from RMB 123.6 million in 2022, with a gross profit margin of 20.3%, a decrease of 2.8 percentage points from the same period in 2022[1]. - The profit for the year ended December 31, 2023, was approximately RMB 80.1 million, an increase of about 23.1% compared to RMB 65.1 million for the same period in 2022[1]. - Revenue from urban services and rental income amounted to approximately RMB 160.1 million for the year ended December 31, 2023, compared to RMB 116.6 million in 2022, representing a significant contribution to total revenue[11]. - The total revenue from customer contract income for 2023 was RMB 708.4 million, compared to RMB 510.6 million in 2022, indicating strong growth in service demand[12]. - Other income and gains for the year ended December 31, 2023, were RMB 45.9 million, compared to RMB 17.8 million in 2022, reflecting improved operational efficiency[2]. - The total tax expense for 2023 was RMB 24,414,000, an increase of 7.0% from RMB 22,802,000 in 2022[18]. - The company reported a net asset value of approximately RMB 35,710,000 as of December 31, 2023, down from RMB 37,152,000 in 2022[22]. - The net profit increased from approximately RMB 65.1 million for the year ended December 31, 2022, to approximately RMB 80.1 million for the year ended December 31, 2023[95]. Asset and Liability Management - The net value of current assets as of December 31, 2023, was RMB 357.1 million, an increase from RMB 197.5 million in 2022, indicating better liquidity management[4]. - The total assets minus current liabilities amounted to RMB 1,105.7 million as of December 31, 2023, compared to RMB 1,054.4 million in 2022, showing a stable financial position[4]. - Trade receivables increased from RMB 176.5 million in 2022 to RMB 295.1 million in 2023, indicating a significant growth in receivables[54]. - The group's total liabilities increased by approximately 30.2% to RMB 510.9 million as of December 31, 2023, from RMB 392.3 million as of December 31, 2022, mainly due to the increase in trade payables from urban service expansion[152]. - The group's cash and cash equivalents amounted to approximately RMB 397.3 million as of December 31, 2023, compared to RMB 355.9 million as of December 31, 2022[153]. - The group's interest-bearing bank loans were approximately RMB 119.1 million as of December 31, 2023, a slight decrease from RMB 122.5 million as of December 31, 2022[154]. - The group's other payables and accrued liabilities increased by approximately 13.7% to RMB 110.2 million as of December 31, 2023, from RMB 96.9 million as of December 31, 2022[149]. Business Operations and Strategy - The group managed 126 public construction projects in 2023, covering a total area of 15,159.2 thousand square meters, compared to 87 projects and 6,997.7 thousand square meters in 2022[29]. - The company provided urban services and property management services, focusing on enhancing customer satisfaction and loyalty through diversified service offerings[27]. - The group aims to strictly control accounts receivable and minimize credit risk through regular reviews of overdue balances and customer credit limits[23]. - The company aims to expand its business scale through mergers and acquisitions and equity investments, focusing on key projects and market demand research to enhance project standards and growth rates[35]. - The company is committed to improving service quality and customer satisfaction through regular feedback surveys and staff training[36]. - The company has been recognized as one of the top 100 property service enterprises in China for eight consecutive years since 2016, ranking 41st in 2023[57]. - The group has been actively expanding its market presence in the Yangtze River Delta region, particularly in Suzhou[26]. Revenue Breakdown - Urban services revenue increased by approximately 76.5% from RMB 256.8 million for the year ended December 31, 2022, to RMB 453.1 million for the year ended December 31, 2023, due to the expansion of integrated urban service projects and new public construction projects[39]. - Property leasing service revenue decreased by approximately 29.3% from RMB 23.6 million for the year ended December 31, 2022, to RMB 16.7 million for the year ended December 31, 2023, primarily due to lower-than-expected construction rates of surrounding enterprises affecting demand for collective dormitories[39]. - Revenue from residential property management services decreased by approximately 8.4% from RMB 65.6 million in the year ended December 31, 2022, to RMB 60.1 million in the year ended December 31, 2023[71]. - The gross profit for urban services was RMB 95.0 million with a gross profit margin of 21.0% for the year ended December 31, 2023, compared to RMB 63.2 million and a margin of 24.6% for the previous year[72]. - The gross profit for commercial property management services increased by approximately 6.0% from RMB 34.4 million to RMB 36.5 million for the year ended December 31, 2023, due to an increase in the number of managed commercial properties[73]. Employee and Operational Costs - As of December 31, 2023, the company employed 1,647 full-time employees in China, an increase from 1,226 employees as of December 31, 2022[177]. - Employee costs for the group were approximately RMB 174.0 million as of December 31, 2023, compared to RMB 161.3 million as of December 31, 2022[177]. - Administrative expenses increased by approximately 40.8% from RMB 35.5 million for the year ended December 31, 2022, to RMB 49.9 million for the year ended December 31, 2023, due to increased employee numbers and adjustments in employee compensation structure[44]. - The company's sales costs increased from approximately RMB 410.6 million for the year ended December 31, 2022, to approximately RMB 578.1 million for the year ended December 31, 2023, primarily due to the addition of integrated urban service projects and public construction projects[71]. Investments and Acquisitions - The acquisition of 100% equity in Suzhou Su Tong Ke Jia Engineering Co., Ltd. was completed for a nominal price of RMB 1, with an estimated net liability of approximately RMB 14 million[109]. - The group has proposed to sell a 49% stake in Suzhou Gaoxin Yiyang for a final bid price of RMB 5,808,100, completed on June 7, 2023[163]. - The group has submitted a proposal to acquire 100% of Suzhou Su Tong Ke Jia for a final bid price of RMB 1, and this transaction is classified as a related party transaction[166]. - The group agreed to acquire 49% of Run Jia for RMB 2,053,500 and 51% for RMB 2,137,300, totaling RMB 4,190,800, also classified as a related party transaction[167]. Future Outlook - The company plans to acquire an office building in Hong Kong, part of which will be used for self-use and part for leasing, to strengthen collaboration with Hong Kong companies[170]. - The company has set aside HKD 26.4 million for establishing its own brand "Su Xin Le Ju" and launching talent apartment management services, with the expected completion date also by December 31, 2024[174]. - The company has increased its investment in technology and smart operations due to rapid business expansion, leading to higher operational funding needs[176]. - The company has no significant future investment or capital asset increase plans as of December 31, 2023[200].

[Management Discussion and Analysis](index=12&type=section&id=Management%20Discussion%20and%20Analysis) This section provides an overview of the Group's operations, financial performance, and future strategies for the reporting period [OVERVIEW](index=12&type=section&id=OVERVIEW) The Group is a city services and property management provider deeply rooted in the Yangtze River Delta region, particularly Suzhou, focusing on urban services, commercial and residential property management, and property leasing - The Group is a city services and property management provider deeply rooted in the Yangtze River Delta region, especially Suzhou, with its H shares listed on the Main Board of the Stock Exchange on August 24, 2022[373](index=373&type=chunk)[376](index=376&type=chunk) - The Group has been ranked among China's Top 100 Property Service Enterprises by China Index Academy for eight consecutive years since 2016, ranking **41st in 2023**, and was awarded "2023 China Leading Smart City Service Enterprise"[34](index=34&type=chunk)[375](index=375&type=chunk) [BUSINESS REVIEW](index=13&type=section&id=BUSINESS%20REVIEW) As of June 30, 2023, the Group's business scale significantly expanded, with total contracted GFA increasing by 82.6% to 15.7 million square meters, driven by four main segments: city services, commercial property management, residential property management, and property leasing - As of June 30, 2023, the Group's total contracted GFA was approximately **15.7 million square meters**, an **82.6% increase** from the same period in 2022, primarily due to the newly signed Shushan Village Scenic Area project[333](index=333&type=chunk) In-Management Property Portfolio (by Business Line) | Business Line | June 30, 2023 | June 30, 2022 | | :--- | :--- | :--- | | **Number of Projects** | 111 | 77 | | **Total GFA Under Management (thousand sq.m.)** | 14,722.3 | 6,904.8 | [City Services](index=14&type=section&id=City%20Services) City services encompass municipal infrastructure, public building management, and waste transfer center operations, with significant daily processing capacity for household and bulky waste - The Group's city services include municipal infrastructure services, public building management services, and the operation of waste transfer centers[98](index=98&type=chunk)[102](index=102&type=chunk) - As of June 30, 2023, the Group operated three waste transfer centers with a combined maximum daily processing capacity of **1,200 tons of household waste** and **50 tons of bulky waste**[683](index=683&type=chunk)[685](index=685&type=chunk) [Commercial and Residential Property Management Services](index=15&type=section&id=Commercial%20and%20Residential%20Property%20Management%20Services) The Group provides basic and value-added services for commercial and residential properties, managing approximately 7.9 million square meters of commercial GFA and 3.3 million square meters of residential GFA as of June 30, 2023 - As of June 30, 2023, the Group provided services for **44 commercial properties** and **23 residential properties**, with total GFA under management of approximately **7.9 million square meters** and **3.3 million square meters**, respectively[691](index=691&type=chunk)[695](index=695&type=chunk) [Property Leasing](index=16&type=section&id=Property%20Leasing) The Group leases its investment properties for rental income, with average occupancy decreasing to 60.05% due to power facility renovations at its largest leasing project - As of June 30, 2023, the Group's average occupancy rate for leased properties was approximately **60.05%**, a decrease from approximately **65.8%** in the same period last year[693](index=693&type=chunk)[696](index=696&type=chunk) [OUTLOOK](index=16&type=section&id=OUTLOOK) The Group plans to expand through M&A, integrate into Suzhou High-tech Zone's urban services, enhance customized property services, and accelerate digital transformation to improve efficiency - The Group plans to expand its business scale through mergers and acquisitions, equity investments, and in-depth market research to improve project bid success rates[694](index=694&type=chunk)[697](index=697&type=chunk) - The Group will continue to deeply integrate into the urban service integration reform of Suzhou High-tech Zone and comprehensively improve the functions of its city manager platform[703](index=703&type=chunk)[705](index=705&type=chunk) - The Group will accelerate digital transformation, fully promote integrated customer service centers and WeChat mini-programs, and strengthen smart property development to enhance service quality[705](index=705&type=chunk)[707](index=707&type=chunk) [FINANCIAL REVIEW](index=18&type=section&id=FINANCIAL%20REVIEW) For the six months ended June 30, 2023, total revenue increased by 40.4% to RMB 341.4 million, driven by city services, with gross profit up 34.2% to RMB 75.3 million, and profit for the period reaching RMB 36.7 million Key Financial Indicators for H1 2023 | Indicator | H1 2023 (RMB thousand) | H1 2022 (RMB thousand) | YoY Change | | :--- | :--- | :--- | :--- | | **Total Revenue** | 341,420 | 243,242 | +40.4% | | **Gross Profit** | 75,344 | 56,124 | +34.2% | | **Gross Profit Margin** | 22.1% | 23.1% | -1.0 ppt | | **Profit for the Period** | 36,688 | 29,502 | +24.4% | | **Profit Attributable to Owners of the Parent** | 34,759 | 28,506 | +21.9% | [Revenue](index=18&type=section&id=Revenue) Total revenue for H1 2023 increased by 40.4% to RMB 341.4 million, primarily driven by an 81.7% surge in city services revenue, which now accounts for 58.9% of total revenue Revenue Breakdown by Business Segment (RMB thousand) | Business Line | H1 2023 | % of Total Revenue | H1 2022 | % of Total Revenue | | :--- | :--- | :--- | :--- | :--- | | City Services | 201,050 | 58.9% | 110,647 | 45.5% | | Commercial Property Management Services | 91,196 | 26.7% | 88,028 | 36.2% | | Residential Property Management Services | 38,424 | 11.3% | 32,631 | 13.4% | | Property Leasing | 10,750 | 3.1% | 11,936 | 4.9% | | **Total** | **341,420** | **100.0%** | **243,242** | **100.0%** | - City services revenue significantly increased by **81.7%**, primarily due to the increase in integrated city service projects and the expansion of public building management services into new areas such as cultural and sports venues, universities, and schools[754](index=754&type=chunk) [Gross Profit and Gross Profit Margin](index=20&type=section&id=Gross%20Profit%20and%20Gross%20Profit%20Margin) Gross profit increased by 34.2% to RMB 75.3 million in H1 2023, with an overall gross profit margin of 22.1%, slightly down from 23.1% in the prior year, while city services were the main contributor to gross profit growth Gross Profit and Gross Profit Margin by Business Segment | Business Line | H1 2023 Gross Profit (RMB thousand) | H1 2023 Gross Profit Margin | H1 2022 Gross Profit (RMB thousand) | H1 2022 Gross Profit Margin | | :--- | :--- | :--- | :--- | :--- | | City Services | 45,872 | 22.8% | 26,912 | 24.3% | | Commercial Property Management Services | 16,962 | 18.6% | 16,304 | 18.5% | | Residential Property Management Services | 3,470 | 9.0% | 2,751 | 8.4% | | Property Leasing | 9,040 | 84.1% | 10,157 | 85.1% | | **Total** | **75,344** | **22.1%** | **56,124** | **23.1%** | [Other Financial Items](index=21&type=section&id=Other%20Financial%20Items) Other income and gains surged by 281.6% to RMB 11.5 million, while administrative expenses increased by 125.2% due to higher credit loss provisions, and finance costs rose by 76.9% as borrowing costs were expensed - Other income and gains increased from **RMB 3 million** to **RMB 11.5 million**, primarily due to increased interest income, higher net foreign exchange differences, and appreciation in investment property value[800](index=800&type=chunk) - Administrative expenses increased by **125.2%** from **RMB 12 million** to **RMB 27.1 million**, mainly due to increased credit loss provisions[805](index=805&type=chunk)[807](index=807&type=chunk) - Finance costs increased by **76.9%** from **RMB 4.3 million** to **RMB 7.6 million**, primarily because borrowing costs ceased to be capitalized and were recognized as expenses after the waste transfer center commenced operations[805](index=805&type=chunk)[807](index=807&type=chunk) [Key Balance Sheet Items](index=23&type=section&id=Key%20Balance%20Sheet%20Items) As of June 30, 2023, the Group's balance sheet remained robust, with trade receivables increasing to RMB 280 million due to city services expansion, and the gearing ratio slightly decreasing to 37.1% - Trade receivables increased by **58.6%** from **RMB 177 million** at the end of 2022 to **RMB 280 million**, mainly due to the expansion of city services and unsettled project payments[73](index=73&type=chunk)[75](index=75&type=chunk) - Trade payables increased by **16%** from **RMB 212 million** at the end of 2022 to **RMB 246 million**, for reasons similar to receivables[74](index=74&type=chunk)[75](index=75&type=chunk) - As of June 30, 2023, the Group's gearing ratio was **37.1%**, a slight decrease from **38.4%** at the end of 2022[124](index=124&type=chunk) [LIQUIDITY AND CAPITAL RESOURCES](index=26&type=section&id=LIQUIDITY%20AND%20CAPITAL%20RESOURCES) As of June 30, 2023, the Group's cash and cash equivalents were approximately RMB 311.8 million, with liquidity primarily from operating cash flow and interest-bearing borrowings, maintaining a healthy gearing ratio of 37.1% - As of June 30, 2023, the Group's cash and cash equivalents were approximately **RMB 311.8 million**, comprising **RMB 136.9 million** and **HKD 189.7 million** (equivalent to approximately **RMB 174.9 million**)[81](index=81&type=chunk)[83](index=83&type=chunk) Bank Borrowings (RMB thousand) | Category | June 30, 2023 | December 31, 2022 | | :--- | :--- | :--- | | Current | 11,250 | 11,250 | | Non-current | 107,813 | 111,250 | | **Total** | **119,063** | **122,500** | - As of June 30, 2023, approximately **RMB 119.1 million** of the Group's bank loans were secured by investment properties and buildings with a total carrying amount of **RMB 56.2 million**[124](index=124&type=chunk) [SIGNIFICANT INVESTMENTS, ACQUISITIONS AND DISPOSALS](index=30&type=section&id=SIGNIFICANT%20INVESTMENTS%2C%20ACQUISITIONS%20AND%20DISPOSALS) During the reporting period, the Group pursued two significant asset disposal plans: the proposed sale of its 49% equity interest in Sugao New Yiyang due to underperformance, and the proposed sale of its 3.167% equity interest in Suzhou Huirong due to lack of dividends and poor returns - The company proposed to sell its **49% equity interest** in Sugao New Yiyang through public tender, with the final winning bid price of **RMB 5,808,100**, due to the associate's underperformance and continuous losses[179](index=179&type=chunk)[181](index=181&type=chunk)[183](index=183&type=chunk) - The company proposed to sell its **3.167% equity interest** in Suzhou Huirong through public tender, with the final winning bid price of **RMB 60,302,500**, as no dividends had been received from this investment since 2012, and it recorded a significant operating loss in 2022[188](index=188&type=chunk)[190](index=190&type=chunk)[192](index=192&type=chunk) [PROCEEDS FROM LISTING](index=34&type=section&id=PROCEEDS%20FROM%20LISTING) On April 27, 2023, the company reallocated approximately HKD 52.9 million of net proceeds from its global offering, originally for waste transfer center construction and elderly care services, to acquire office properties in Hong Kong for self-use and leasing - On April 27, 2023, the Board resolved to change the use of proceeds, reallocating approximately **HKD 38.8 million** originally designated for waste transfer center construction and **HKD 14.1 million** for investing in elderly care service companies to "acquire Hong Kong office properties for self-use and leasing"[246](index=246&type=chunk)[249](index=249&type=chunk) - The reasons for the change include: waste transfer center construction has been paid for by internal resources; the invested elderly care service company (Sugao New Yiyang) is underperforming and planned for disposal[245](index=245&type=chunk)[248](index=248&type=chunk) Use of Net Proceeds (as of June 30, 2023) | Intended Use | Unutilized Amount after Reallocation (HKD million) | Utilized during Period (HKD million) | Unutilized Amount at Period End (HKD million) | | :--- | :--- | :--- | :--- | | Acquisitions | 50.04 | 3.85 | 49.05 | | Acquisition of Hong Kong office properties | 52.9 | 0 | 52.9 | | Strategic investments (waste transfer center) | 14.1 | 0 | 14.1 | | Expansion of value-added services | 26.4 | 0 | 26.4 | | Technology investments | 6.41 | 0.81 | 6.29 | | Talent development | 5.01 | 0.3 | 5.01 | | Working capital | 3.31 | 16.71 | 0 | | **Total** | **158.17** | **21.67** | **153.74** | [EMPLOYEES AND REMUNERATION POLICY](index=40&type=section&id=EMPLOYEES%20AND%20REMUNERATION%20POLICY) As of June 30, 2023, the Group's full-time employees significantly increased to 1,721, with staff costs for H1 2023 at approximately RMB 82.6 million, and remuneration policies based on qualifications, experience, position, and performance - As of June 30, 2023, the Group's total number of full-time employees was **1,721**, an increase from **1,226** at the end of 2022[303](index=303&type=chunk) - For the six months ended June 30, 2023, staff costs were approximately **RMB 82.6 million**, compared to approximately **RMB 71.2 million** for the same period in 2022[303](index=303&type=chunk) [Corporate Governance and Other Information](index=41&type=section&id=Corporate%20Governance%20and%20Other%20Information) This section details the company's adherence to corporate governance codes, significant shareholder interests, interim dividend policy, and the review process for interim results [COMPLIANCE WITH THE CORPORATE GOVERNANCE CODE](index=41&type=section&id=COMPLIANCE%20WITH%20THE%20CORPORATE%20GOVERNANCE%20CODE) During the reporting period, the company largely complied with the Corporate Governance Code, with a previous deviation regarding the combined roles of Chairman and General Manager, which has since been rectified - During the reporting period, the roles of Chairman and General Manager were both held by Mr. Cui Xiaodong, deviating from Corporate Governance Code provision C.2.1 regarding separation of roles[308](index=308&type=chunk)[342](index=342&type=chunk) - Mr. Cui Xiaodong resigned as General Manager on September 5, 2023, after which the company complied with the relevant code provision[310](index=310&type=chunk)[340](index=340&type=chunk)[343](index=343&type=chunk) [INTERESTS OF PERSONS OTHER THAN THE DIRECTORS, SUPERVISORS AND CHIEF EXECUTIVE IN SHARES AND UNDERLYING SHARES](index=43&type=section&id=INTERESTS%20OF%20PERSONS%20OTHER%20THAN%20THE%20DIRECTORS%2C%20SUPERVISORS%20AND%20CHIEF%20EXECUTIVE%20IN%20SHARES%20AND%20UNDERLYING%20SHARES) As of June 30, 2023, controlling shareholder Suzhou SND Group Co., Ltd. and its wholly-owned subsidiary collectively held approximately 74.22% of the company's issued share capital, with other significant H-shareholders also detailed - Controlling shareholder Suzhou SND Group Co., Ltd. (SND Company) and its subsidiary collectively held approximately **74.22%** of the company's shares, possessing absolute control[395](index=395&type=chunk) [INTERIM DIVIDEND](index=50&type=section&id=INTERIM%20DIVIDEND) The Board of Directors resolved not to declare any interim dividend for the six months ended June 30, 2023 - The Board resolved not to declare an interim dividend for the six months ended June 30, 2023[521](index=521&type=chunk) [REVIEW OF INTERIM RESULTS](index=51&type=section&id=REVIEW%20OF%20INTERIM%20RESULTS) The financial information in this report, though unaudited, has been reviewed by Ernst & Young in accordance with Hong Kong Standard on Review Engagements 2410, and the company's audit committee also reviewed the unaudited condensed consolidated financial statements - The financial information is unaudited but has been reviewed by the auditor, Ernst & Young[532](index=532&type=chunk)[533](index=533&type=chunk) - The company's audit committee has reviewed the unaudited condensed consolidated financial statements for the period[525](index=525&type=chunk) [Interim Condensed Consolidated Financial Statements](index=52&type=section&id=Interim%20Condensed%20Consolidated%20Financial%20Statements) This section presents the interim condensed consolidated financial statements, including the review report, statement of profit or loss, statement of financial position, statement of cash flows, and notes to the financial information [Report on Review of Interim Condensed Consolidated Financial Statements](index=52&type=section&id=Report%20on%20Review%20of%20Interim%20Condensed%20Consolidated%20Financial%20Statements) Ernst & Young issued an independent review report to the Board, confirming their review of the interim financial information for the six months ended June 30, 2023, found no material non-compliance with IAS 34 - Ernst & Young reviewed the interim financial information and issued an unqualified review report[539](index=539&type=chunk)[540](index=540&type=chunk) [Interim Condensed Consolidated Statement of Profit or Loss](index=54&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss) For the six months ended June 30, 2023, the company reported revenue of RMB 341.4 million, gross profit of RMB 75.3 million, profit for the period of RMB 36.7 million, and basic earnings per share of RMB 0.34 Condensed Consolidated Statement of Profit or Loss (RMB thousand) | Item | H1 2023 | H1 2022 | | :--- | :--- | :--- | | Revenue | 341,420 | 243,242 | | Cost of sales | (266,076) | (187,118) | | **Gross Profit** | **75,344** | **56,124** | | Profit before tax | 49,466 | 39,840 | | Income tax expense | (12,778) | (10,338) | | **Profit for the period** | **36,688** | **29,502** | | Profit attributable to owners of the parent | 34,759 | 28,506 | | Profit attributable to non-controlling interests | 1,929 | 996 | | **Basic earnings per share (RMB)** | **0.34** | **0.38** | [Interim Condensed Consolidated Statement of Financial Position](index=56&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2023, the company's total assets were RMB 1.495 billion, total liabilities RMB 708 million, and net assets RMB 786 million, with significant non-current assets in property, plant, and equipment and investment properties Condensed Consolidated Statement of Financial Position Summary (RMB thousand) | Item | June 30, 2023 | December 31, 2022 | | :--- | :--- | :--- | | **Total non-current assets** | 845,358 | 856,281 | | **Total current assets** | 649,307 | 579,965 | | **Total assets** | **1,494,665** | **1,436,246** | | **Total current liabilities** | 409,143 | 371,910 | | **Total non-current liabilities** | 299,229 | 300,658 | | **Total liabilities** | **708,372** | **672,568** | | **Net assets** | **786,293** | **763,678** | | Equity attributable to owners of the parent | 775,190 | 756,954 | [Interim Condensed Consolidated Statement of Cash Flows](index=60&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) In H1 2023, net cash generated from operating activities significantly decreased to RMB 0.743 million due to increased trade receivables, while net cash used in investing activities was RMB 39.2 million, and cash and cash equivalents at period-end totaled RMB 311.8 million Condensed Consolidated Statement of Cash Flows (RMB thousand) | Item | H1 2023 | H1 2022 | | :--- | :--- | :--- | | Net cash generated from operating activities | 743 | 20,458 | | Net cash used in investing activities | (39,209) | (33,812) | | Net cash used in financing activities | (6,271) | (65,408) | | **Net decrease in cash and cash equivalents** | **(44,737)** | **(78,762)** | | Cash and cash equivalents at beginning of period | 350,909 | 302,644 | | **Cash and cash equivalents at end of period** | **311,752** | **223,882** | [Notes to Interim Condensed Consolidated Financial Information](index=62&type=section&id=Notes%20to%20Interim%20Condensed%20Consolidated%20Financial%20Information) The notes provide detailed financial information, including accounting policies, segment information, revenue breakdown, related party transactions, and fair value of financial instruments, highlighting that all revenue and assets are from mainland China - All company revenue is derived from mainland China, with no other geographical segment information; a single largest customer contributed approximately **RMB 71.94 million** in revenue, accounting for approximately **21%** of total revenue[674](index=674&type=chunk) - The company declared a final dividend for 2022 of **RMB 0.17 per ordinary share**, totaling **RMB 17.178 million**[45](index=45&type=chunk) - Subsequent to the reporting period, the company agreed to sell its **3.167% equity interest** in Suzhou Huirong for approximately **RMB 60.3 million**, and agreed to acquire **100% equity interest** in Sutong Kejia (for **RMB 1**) and **100% equity interest** in Runjia (for a total consideration of approximately **RMB 4.19 million**)[441](index=441&type=chunk)[442](index=442&type=chunk)[443](index=443&type=chunk)

Financial Performance - The company reported a significant increase in revenue, achieving a total of RMB 1.2 billion, representing a year-over-year growth of 25%[41] - The company reported a significant increase in revenue, achieving RMB 1.2 billion in 2022, representing a year-on-year growth of 15%[55] - The company has outlined a future outlook aiming for a revenue target of RMB 1.5 billion for 2023, reflecting a growth projection of 25%[55] - The Group's revenue increased by approximately 13.0% from approximately RMB462.0 million for the year ended 31 December 2021 to approximately RMB522.0 million for the year ended 31 December 2022[179] - Revenue from city services rose by approximately 46.5% from approximately RMB169.4 million in 2021 to approximately RMB248.2 million in 2022, driven by the expansion of integrated city services and public facility management[178] User Growth and Engagement - User data showed an increase in active users, reaching 5 million, which is a 15% increase compared to the previous year[41] - User data indicated a growth in active users, reaching 1.5 million, which is a 20% increase compared to the previous year[55] - New product development includes the launch of a digital service platform expected to enhance user engagement and operational efficiency[55] - The company plans to implement new marketing strategies, which are expected to increase customer engagement by 25%[41] Strategic Initiatives - The company provided a positive outlook for the next fiscal year, projecting a revenue growth of 20% to RMB 1.44 billion[41] - New product launches are expected to contribute an additional RMB 300 million in revenue, with a focus on health management services[41] - The company is expanding its market presence, targeting an increase in service locations by 30% over the next year[41] - The company is exploring market expansion opportunities in other provinces, targeting a 30% increase in market share by 2024[55] - A strategic acquisition of a local competitor is anticipated to enhance market share by 10%[41] - Suxin Joyful Life Services is considering strategic acquisitions to bolster its service offerings and enhance competitive positioning in the market[55] Cost Management and Profitability - The gross profit margin improved to 40%, up from 35% in the previous year, indicating better cost management[41] - The company aims to reduce operational costs by 15% through efficiency improvements and automation[41] - Cost of sales increased from approximately RMB 355.8 million for the year ended December 31, 2021, to approximately RMB 400.6 million for the year ended December 31, 2022, mainly due to increased subcontracting costs and utilities expenses[105] - Gross profit increased by approximately 14.2% from RMB 106.2 million for the year ended December 31, 2021, to RMB 121.3 million for the year ended December 31, 2022, primarily due to business expansion[107] - The Group's gross profit margin remained stable, with gross profit for city services increasing by approximately 52.1% from approximately RMB40.4 million in 2021 to approximately RMB61.5 million in 2022[136] Corporate Governance and Compliance - The management emphasized a commitment to corporate governance and compliance with the Corporate Governance Code[55] - The company plans to hold its 2022 Annual General Meeting on June 15, 2023, to discuss future strategies and performance[54] Listing and Market Presence - Suxin Joyful Life Services Co., Ltd. was listed on the Hong Kong Stock Exchange on August 24, 2022, under stock code 2152[52] - The company successfully listed on the main board of the Hong Kong Stock Exchange, enhancing its market presence[130] - Suxin Services was successfully listed on the Main Board of the Stock Exchange in August 2022, becoming the first county-level state-owned listed company in the property sector in Jiangsu Province[150] Technology and Innovation - Investment in technology development is set at RMB 50 million, aimed at improving service efficiency and user experience[41] - The company has invested RMB 50 million in research and development for new technologies aimed at improving service delivery[55] - The Group is advancing smart city sanitation service systems and enhancing digital collaboration to improve service levels through integrated customer service centers and smart property service systems[181] - Suxin Services has accelerated digital collaboration and implemented smart service upgrades, integrating its customer service center with its smart property service system[157] Revenue Breakdown - Revenue from commercial property management services decreased by approximately 9.7% from approximately RMB204.4 million for the year ended 31 December 2021 to approximately RMB184.6 million for the year ended 31 December 2022[99] - Revenue from residential property management services increased by approximately 8.3% from approximately RMB60.6 million for the year ended 31 December 2021 to approximately RMB65.6 million for the year ended 31 December 2022[99] - Revenue from property leasing services decreased by approximately 14.8% from RMB 27.7 million for the year ended December 31, 2021, to RMB 23.6 million for the year ended December 31, 2022, primarily due to compliance with local government's rent relief policy in response to COVID-19[103]

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容 概不負責，對其準確性或完整性亦不發表任何聲明，並明確表示概不就 因本公告全部或任何部分內容而產生或因依賴該等內容而引致的任何損 失承擔任何責任。 Suxin Joyful Life Services Co., Ltd. 蘇 新 美 好 生 活 服 務 股 份 有 限 公 司 （於中華人民共和國註冊成立的股份有限公司） （股份代號：2152） 截 至2022年12月31日 止 年 度 的 年 度 業 績 公 告 財務概要 截至12月31日止年度 2022年 2021年 人民幣千元 人民幣千元 收益 521,965 461,981 毛利 121,347 106,225 毛利率 23.2% 23.0% 年內利潤 65,722 56,517 淨利率 12.6% 12.2% ...

Financial Performance - The company reported a significant increase in revenue, achieving a total of RMB 500 million, representing a 25% growth compared to the previous period[12]. - The Group's total revenue for the six months ended June 30, 2022, was RMB 243,242,000, representing a 9.0% increase from RMB 221,293,000 in the same period of 2021[74]. - Revenue from city services increased to RMB 110,647,000, accounting for 45.5% of total revenue, compared to RMB 75,523,000 (34.1%) in the prior year[74]. - The Group's commercial property management services generated RMB 88,028,000, which is 36.2% of total revenue, down from RMB 102,423,000 (46.3%) in the previous year[74]. - The Group's revenue from residential property management services was RMB 32,631,000, representing 13.4% of total revenue, an increase from RMB 30,768,000 (13.9%) in the previous year[74]. - The Group's operation of waste collection centers generated RMB 28,117,000, accounting for 11.6% of total revenue, compared to RMB 11,454,000 (5.2%) in the prior year[74]. - Revenue from city services increased by approximately 46.5% from approximately RMB75.5 million to approximately RMB110.6 million, driven by the expansion of public facility management services[78]. - Revenue from commercial property management services decreased by approximately 14.1% from approximately RMB102.4 million to approximately RMB88.0 million, primarily due to the non-renewal of certain property management agreements[82]. - Revenue from property leasing services decreased by approximately 5.1% from approximately RMB12.6 million to approximately RMB11.9 million, due to compliance with local government's rent relief policy during the COVID-19 pandemic[78]. User and Market Growth - User data showed an increase in active users, reaching 1.2 million, which is a 15% increase year-over-year[12]. - The company provided a positive outlook for the next quarter, projecting a revenue growth of 20% based on current market trends and user acquisition strategies[12]. - The company is expanding its market presence in three new provinces, aiming to increase its footprint by 30% in the next fiscal year[12]. - A strategic acquisition of a local competitor is anticipated to enhance market share by 10% and improve operational efficiencies[12]. - The Group's established market position in Suzhou is expected to continue driving its business growth[30]. Service and Operational Efficiency - Investment in technology development has increased by 40%, focusing on digital transformation and service automation[12]. - The company has set a target to reduce operational costs by 15% through improved supply chain management and process optimization[12]. - The Group believes that providing diverse services will enhance customer loyalty and improve brand recognition, thereby positively impacting business operations and financial performance[34]. - The Group's strategy includes expanding its service offerings and enhancing operational efficiency to meet the diverse needs of its customers[34]. - The Group's focus on citizen wellbeing and customer satisfaction has shaped its brand image and service offerings[30]. Customer Satisfaction and Brand Recognition - Customer satisfaction ratings have improved to 85%, reflecting a 5% increase due to enhanced service quality initiatives[12]. - The Group has been recognized as one of the Top 100 Property Management Companies in China for seven consecutive years since 2016, ranking 46th in the 2022 list[30]. - The Group was honored as one of the "Leading City Services Companies in China" in 2022 and recognized as a "Leading Brand in the PRC Property Management Industry in Specialized Operations" in 2018, 2019, and 2020[30]. - The Group's commitment to quality services has earned numerous industry awards and recognitions, contributing to its brand image for high-caliber services[30]. Financial Position and Assets - The Group's total current assets decreased from approximately RMB490.7 million as of 31 December 2021 to approximately RMB414.0 million as of 30 June 2022, primarily due to a decrease in cash and cash equivalents[177]. - The Group's net current assets decreased from approximately RMB40.5 million as of 31 December 2021 to approximately RMB16.1 million as of 30 June 2022[177]. - As of 30 June 2022, cash and cash equivalents amounted to approximately RMB223.9 million, down from approximately RMB302.6 million as of 31 December 2021[177]. - The Group's gearing ratio was 51.5% as of 30 June 2022, compared to 54.5% as of 31 December 2021[190]. - The Group's liquidity risk is managed primarily by monitoring the current ratio and maintaining a balance between funding continuity and flexibility[198]. Cost and Profitability - The Group's cost of sales increased from approximately RMB169.5 million to approximately RMB187.1 million, primarily due to higher subcontracting costs and other expenses[85]. - The Group's gross profit increased by approximately 8.3% from approximately RMB51.8 million to approximately RMB56.1 million, mainly due to business expansion[89]. - The gross profit margin for city services was 24.3% in 2022, compared to 25.1% in 2021, reflecting increased revenue from public facility management[88]. - The gross profit margin for commercial property management services decreased to 18.5% in 2022 from 19.0% in 2021, primarily due to the non-renewal of management agreements[88]. - The gross profit margin for property leasing services decreased to 85.1% in 2022 from 86.4% in 2021, influenced by the rent relief measures implemented[88]. Risks and Challenges - The Group remains susceptible to the risk of fair value change of its equity investments, which may lead to a decrease in total assets and net assets[164]. - The Group's exposure to bad debts is insignificant due to ongoing monitoring of receivable balances[196]. - The company is exposed to foreign exchange risk[200].