[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].