Group 1 - The company reported a revenue of 321 million, representing a year-on-year increase of 2.45% [1] - Profit attributable to the parent company was 49.08 million, showing a year-on-year decrease of 15.41% [1] - Earnings per share stood at 0.17 yuan [1] Group 2 - As of June 30, 2025, the company had signed 257 projects with a total signed construction area of 36 million square meters [1] - The company managed 252 projects with a total managed construction area of 31.4 million square meters [1]

[Interim Results and Operations Overview](index=1&type=section&id=%E4%B8%AD%E6%9C%9F%E6%A5%AD%E7%B8%BE%E5%8F%8A%E7%87%9F%E9%81%8B%E6%A6%82%E8%A6%81) Lingyue Service Group announced unaudited interim results for the six months ended June 30, 2025, with revenue increasing by 2.4% to RMB 321.0 million, but gross profit and net profit decreased by 4.5% and 12.2% respectively; managed area slightly decreased while contracted area continued to grow Interim Financial Performance | Indicator | Six Months Ended June 30, 2025 (RMB million) | Six Months Ended June 30, 2024 (RMB million) | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 321.0 | 313.3 | +2.4% | | Gross Profit | 95.1 | 99.6 | -4.5% | | Net Profit | 53.0 | 60.3 | -12.2% | - As of June 30, 2025, the Group had **257 contracted projects** with a contracted gross floor area of **36.0 million square meters**, and **252 managed projects** with a managed gross floor area of **31.4 million square meters**[4](index=4&type=chunk) [Interim Condensed Consolidated Financial Statements](index=2&type=section&id=%E4%B8%AD%E6%9C%9F%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8) [Interim Condensed Consolidated Statement of Profit or Loss](index=2&type=section&id=%E4%B8%AD%E6%9C%9F%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E6%90%8D%E7%9B%8A%E8%A1%A8) During the reporting period, the company's revenue slightly increased, but changes in cost of sales, impairment losses on financial assets, and income tax expense led to a year-on-year decrease in net profit Interim Consolidated Statement of Profit or Loss | Indicator | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Revenue | 320,960 | 313,294 | | Cost of sales | (225,899) | (213,732) | | Gross profit | 95,061 | 99,562 | | Other income and gains | 5,168 | 3,273 | | Administrative expenses | (28,076) | (27,475) | | Net impairment losses on financial assets and goodwill | (11,331) | (4,341) | | Other expenses | (114) | (153) | | Share of profits of a joint venture | 18 | 709 | | Profit before tax | 60,726 | 71,575 | | Income tax expense | (7,766) | (11,249) | | Profit for the period | 52,960 | 60,326 | | Profit attributable to owners of the parent | 49,076 | 58,018 | | Profit attributable to non-controlling interests | 3,884 | 2,308 | | Basic and diluted earnings per share attributable to ordinary equity holders of the parent | RMB 0.17 | RMB 0.20 | [Interim Condensed Consolidated Statement of Comprehensive Income](index=3&type=section&id=%E4%B8%AD%E6%9C%9F%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E5%85%A8%E9%9D%A2%E6%94%B6%E7%9B%8A%E8%A1%A8) In addition to profit for the period, other comprehensive income was mainly affected by fair value changes of equity investments designated at fair value, showing a positive gain this period compared to a loss in the prior period Interim Consolidated Statement of Comprehensive Income | Indicator | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Profit for the period | 52,960 | 60,326 | | Other comprehensive income, net of tax | 785 | (15) | | Total comprehensive income for the period | 53,745 | 60,311 | | Total comprehensive income attributable to owners of the parent | 49,861 | 58,003 | | Total comprehensive income attributable to non-controlling interests | 3,884 | 2,308 | [Interim Condensed Consolidated Statement of Financial Position](index=4&type=section&id=%E4%B8%AD%E6%9C%9F%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E7%8B%80%E6%85%8B%E8%A1%A8) As of June 30, 2025, the company's net current assets and total equity both increased, while non-current assets slightly decreased and current liabilities reduced Interim Consolidated Statement of Financial Position | Indicator | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | **Assets** | | | | Total non-current assets | 34,165 | 35,793 | | Total current assets | 943,232 | 934,225 | | **Liabilities** | | | | Total current liabilities | 292,089 | 338,203 | | Total non-current liabilities | 834 | 936 | | **Equity** | | | | Net assets | 684,474 | 630,879 | | Equity attributable to owners of the parent | 665,320 | 615,460 | | Non-controlling interests | 19,154 | 15,419 | | Total equity | 684,474 | 630,879 | [Notes to the Interim Condensed Consolidated Financial Information](index=6&type=section&id=%E4%B8%AD%E6%9C%9F%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E8%B3%87%E6%96%99%E9%99%84%E8%A8%BB) [1. Company and Group Information](index=6&type=section&id=1.%20%E5%85%AC%E5%8F%B8%E5%92%8C%E9%9B%86%E5%9C%98%E8%B3%87%E6%96%99) Lingyue Service Group, incorporated in the Cayman Islands and listed on HKEX in July 2021, primarily provides property management, value-added services to non-property owners, and community value-added services, with its ultimate controlling shareholders being six individuals including Mr. Liu Yuhui - The company was incorporated in the Cayman Islands and listed on the Main Board of The Stock Exchange of Hong Kong Limited since **July 12, 2021**[10](index=10&type=chunk) - The Group primarily engages in providing property management services, value-added services to non-property owners, and community value-added services[10](index=10&type=chunk) - The ultimate controlling shareholders of the company are Mr. Liu Yu Hui, Mr. Liu Ce, Mr. Liu Hao Wei, Ms. Wang Tao, Ms. Long Yi Qin, and Ms. Hou San Li[10](index=10&type=chunk) [2. Accounting Policies](index=6&type=section&id=2.%20%E6%9C%83%E8%A8%88%E6%94%BF%E7%AD%96) The condensed consolidated financial statements are prepared on a historical cost basis, except for equity investments designated at fair value, with no significant impact from new IFRS amendments applied this period - The condensed consolidated financial statements are prepared on a historical cost basis, except for equity investments designated at fair value through other comprehensive income[12](index=12&type=chunk) - The application of amendments to International Financial Reporting Standards during this interim period had no significant impact on the Group's financial performance and position for the current and prior periods[13](index=13&type=chunk) [3. Revenue](index=7&type=section&id=3.%20%E6%94%B6%E7%9B%8A) Total revenue for the reporting period increased by 2.4% year-on-year, with significant growth in property management services revenue, while value-added services to non-property owners and community value-added services revenue both decreased Revenue by Service Type | Revenue Source | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Property management services | 296,356 | 276,291 | | Value-added services to non-property owners | 4,045 | 9,910 | | Community value-added services | 20,559 | 27,093 | | **Total** | **320,960** | **313,294** | [4. Profit Before Tax](index=8&type=section&id=4.%20%E7%A8%85%E5%89%8D%E5%88%A9%E6%BD%A4) Profit before tax decreased during the reporting period, mainly due to increased cost of services provided, higher amortization of other intangible assets, and a significant increase in net impairment losses on trade receivables Profit Before Tax Components | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Cost of services provided | 225,899 | 213,732 | | Depreciation of property, plant and equipment | 1,711 | 1,745 | | Amortisation of other intangible assets | 1,984 | 1,038 | | Net impairment losses on financial assets: | | | | Net impairment losses on trade receivables | 13,041 | 4,654 | | Net reversal of impairment losses on amounts due from related companies | (1,058) | (106) | | Net impairment losses on financial assets included in prepayments and other receivables | (652) | (207) | [5. Income Tax Expense](index=9&type=section&id=5.%20%E6%89%80%E5%BE%97%E7%A8%85%E9%96%8B%E6%94%AF) Income tax expense decreased by 31% year-on-year, primarily due to lower taxable profit, with the company applying 25%, 15% (western region preferential), and small-profit enterprise preferential tax rates in mainland China - Income tax expense decreased by approximately **31%** from RMB **11.2 million** in the prior period of 2024 to approximately **RMB 7.8 million**, primarily due to a decrease in taxable profit[22](index=22&type=chunk)[61](index=61&type=chunk) - The Group applied three types of tax rates during the reporting period, including a **25%** tax rate, a **15%** tax rate under the Western Region Preferential Tax Policy, and a preferential tax rate for small-profit enterprises[20](index=20&type=chunk) [6. Dividends](index=9&type=section&id=6.%20%E8%82%A1%E6%81%AF) The Board of Directors resolved not to declare any interim dividend for the six months ended June 30, 2025, consistent with the prior year - The Board of Directors resolved not to declare any interim dividend for the six months ended June 30, 2025 (six months ended June 30, 2024: nil)[23](index=23&type=chunk) [7. Earnings Per Share Attributable to Ordinary Equity Holders of the Parent](index=10&type=section&id=7.%20%E6%AF%8D%E5%85%AC%E5%8F%B8%E6%99%AE%E9%80%9A%E6%AC%8A%E7%9B%8A%E6%8C%81%E6%9C%89%E4%BA%BA%E6%87%89%E4%BD%B5%E6%AF%8F%E8%82%A1%E7%9B%88%E5%88%A9) Basic earnings per share attributable to ordinary equity holders of the parent was RMB 0.17, lower than RMB 0.20 in the prior period, primarily due to decreased profit Earnings Per Share | Indicator | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Profit attributable to ordinary equity holders of the parent for the purpose of calculating basic earnings per share | 49,076 | 58,018 | | Weighted average number of ordinary shares in issue for the purpose of calculating basic earnings per share | 285,685,000 | 285,685,000 | | Basic earnings per share | RMB 0.17 | RMB 0.20 | [8. Trade Receivables](index=11&type=section&id=8.%20%E8%B2%BF%E6%98%93%E6%87%89%E6%94%B6%E6%AC%BE%E9%A0%85) As of June 30, 2025, total trade receivables increased by 4.2% to RMB 141.3 million from the end of 2024, mainly due to increased total revenue, with a notable increase in receivables aged 1-2 years Trade Receivables by Ageing | Ageing | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Within 1 year | 102,104 | 103,024 | | 1 to 2 years | 29,873 | 21,790 | | 2 to 3 years | 7,487 | 8,102 | | Over 3 years | 1,847 | 2,693 | | **Total** | **141,311** | **135,609** | - Trade receivables amounted to approximately **RMB 141.3 million**, an increase of approximately **RMB 5.7 million** or **4.2%** compared to approximately **RMB 135.6 million** as of December 31, 2024, primarily due to an increase in total revenue[63](index=63&type=chunk) [9. Trade Payables](index=11&type=section&id=9.%20%E8%B2%BF%E6%98%93%E6%87%89%E4%BB%98%E6%AC%BE%E9%A0%85) As of June 30, 2025, total trade payables decreased by 9.6% to RMB 37.1 million, primarily due to the company's adjustment of payment schedules Trade Payables by Ageing | Ageing | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Within 1 year | 28,943 | 37,122 | | Over 1 year | 8,189 | 3,965 | | **Total** | **37,132** | **41,087** | - Trade payables amounted to approximately **RMB 37.1 million**, a decrease of approximately **9.6%** compared to approximately **RMB 41.1 million** as of December 31, 2024, mainly due to the Group adjusting its payment schedule based on market conditions[65](index=65&type=chunk) [Management Discussion and Analysis](index=12&type=section&id=%E7%AE%A1%E7%90%86%E5%B1%A4%E8%A8%8E%E8%AB%96%E5%8F%8A%E5%88%86%E6%9E%90) [Development Strategy and Outlook](index=12&type=section&id=%E7%99%BC%E5%B1%95%E6%88%B0%E7%95%A5%E8%88%87%E5%B1%95%E6%9C%9B) The company adheres to its "deep cultivation in Southwest, layout in Xinjiang, and national development" strategy, forming "Sichuan + Xinjiang" as dual growth poles, steadily increasing managed scale, and expanding into diverse property types like schools, industrial parks, and public buildings - The Group adheres to its development strategy of "deep cultivation in Southwest, layout in Xinjiang, and national development," fostering "Sichuan + Xinjiang" as dual growth poles, achieving steady growth in managed scale, and deepening its presence in various property types such as schools, industrial parks, and public buildings, gradually moving towards a comprehensive and diversified market[29](index=29&type=chunk) - Looking ahead to the second half of 2025, the Group will steadfastly uphold its service philosophy of "Kindness and Companionship, Touching Hearts," continuously building its foundation on quality, focusing on warm services, solidifying its operational base, concentrating on creating customer value, actively expanding its service boundaries, and guiding high-quality enterprise development with a long-term perspective[30](index=30&type=chunk) [Business Model of the Group](index=13&type=section&id=%E6%9C%AC%E9%9B%86%E5%9C%98%E6%A5%AD%E5%8B%99%E6%A8%A1%E5%BC%8F) The Group operates three business lines: property management, value-added services to non-property owners, and community value-added services, offering comprehensive services across the property management value chain - The Group operates three business lines: (i) property management services, (ii) value-added services to non-property owners, and (iii) community value-added services, providing comprehensive services covering the entire property management value chain for its customers[31](index=31&type=chunk) - Community value-added services typically generate higher profit margins, thus continuously enhancing the Group's financial performance[32](index=32&type=chunk) [Property Management Services](index=13&type=section&id=%E7%89%A9%E6%A5%AD%E7%AE%A1%E7%90%86%E6%9C%8D%E5%8B%99) Property management services, the Group's core business, include security, cleaning, and maintenance for a diverse property portfolio; total contracted GFA increased by 1.0% while total managed GFA slightly decreased by 1.0% as of June 30, 2025 - The Group provides a wide range of property management services, including security, cleaning and landscaping, and repair and maintenance services, to property owners, residents, property developers, and tenants of managed non-residential properties[33](index=33&type=chunk) - The Group manages a diversified property portfolio, including residential properties, commercial properties, and public and other properties[33](index=33&type=chunk) - As of June 30, 2025, the Group's total contracted gross floor area was approximately **36.0 million square meters**, an increase of **1.0%** compared to the same period in 2024, while total managed gross floor area was approximately **31.4 million square meters**, a decrease of **1.0%** compared to the same period in 2024[34](index=34&type=chunk) [Scope of Services and Property Portfolio](index=13&type=section&id=%E6%9C%8D%E5%8B%99%E7%AF%84%E5%9C%8D%E8%88%87%E7%89%A9%E6%A5%AD%E7%B5%84%E5%90%88) The Group has provided property management services since 2002, managing 252 projects and contracting 257 projects as of June 30, 2025, with 4.671 million square meters of undelivered GFA expected to be delivered between August 2025 and August 2031 Property Management Portfolio | Indicator | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Number of managed properties | 252 | 267 | | Number of contracted properties | 257 | 272 | | Managed GFA (thousand sq.m.) | 31,353 | 31,680 | | Contracted GFA (thousand sq.m.) | 36,024 | 35,665 | | Undelivered GFA (thousand sq.m.) | 4,671 | 3,985 | - The estimated time for delivery and revenue generation of undelivered projects as of June 30, 2025, ranges from **August 2025 to August 2031**[35](index=35&type=chunk) [Geographical Coverage and Revenue Breakdown](index=15&type=section&id=%E5%9C%B0%E5%8D%80%E8%A6%86%E8%93%8B%E8%88%87%E6%94%B6%E7%9B%8A%E6%98%8E%E7%B4%B0) The Group has expanded its geographical coverage to 34 cities across 9 provinces, 1 autonomous region, and 1 municipality in China, with Sichuan Province remaining the primary market contributing 78.3% of property management service revenue - The Group has expanded its geographical coverage to **34 cities**, **9 provinces**, **1 autonomous region**, and **1 municipality** in China[36](index=36&type=chunk) Property Management Revenue by Region | Region | 2025 Property Management Revenue (RMB thousand) | 2025 Property Management Revenue Share (%) | 2024 Property Management Revenue (RMB thousand) | 2024 Property Management Revenue Share (%) | | :--- | :--- | :--- | :--- | :--- | | Sichuan Province | 231,252 | 78.3 | 217,001 | 78.7 | | Xinjiang Uygur Autonomous Region | 24,658 | 8.3 | 22,161 | 8.0 | | Guangdong Province | 13,367 | 4.5 | 13,325 | 4.8 | | Jilin Province | 10,841 | 3.7 | 10,312 | 3.7 | | Hebei Province | 1,237 | 0.4 | 1,221 | 0.4 | | Henan Province | 3,872 | 1.3 | 4,310 | 1.6 | | Hubei Province | 3,679 | 1.2 | 3,425 | 1.2 | | Jiangsu Province | 998 | 0.3 | 762 | 0.3 | | Guizhou Province | 2,971 | 1.0 | 2,330 | 0.8 | | Chongqing Municipality | 1,980 | 0.7 | 1,444 | 0.5 | | Fujian Province | 957 | 0.3 | — | — | | **Total** | **295,812** | **100** | **276,291** | **100** | [Source of Managed Properties](index=17&type=section&id=%E5%9C%A8%E7%AE%A1%E7%89%A9%E6%A5%AD%E4%BE%86%E6%BA%90) The Group primarily serves properties developed by Landsea Holdings Group, but the number of managed projects and revenue contribution from non-Landsea Holdings Group and non-joint venture entities have increased, indicating enhanced third-party expansion capabilities Property Management Revenue by Developer Type | Developer Type | 2025 Property Management Revenue (RMB thousand) | 2025 Property Management Revenue Share (%) | 2024 Property Management Revenue (RMB thousand) | 2024 Property Management Revenue Share (%) | | :--- | :--- | :--- | :--- | :--- | | Landsea Holdings Group | 206,724 | 70.0 | 183,358 | 66.4 | | Joint ventures of Landsea Holdings Group | 5,469 | 1.8 | 14,722 | 5.3 | | Non-Landsea Holdings Group and non-joint ventures | 83,619 | 28.2 | 78,211 | 28.3 | | **Total** | **295,812** | **100** | **276,291** | **100** | Contracted Projects and GFA by Developer Type | Developer Type | 2025 Number of Contracted Projects | 2025 Contracted GFA (thousand sq.m.) | 2024 Number of Contracted Projects | 2024 Contracted GFA (thousand sq.m.) | | :--- | :--- | :--- | :--- | :--- | | Landsea Holdings Group | 94 | 19,514 | 97 | 18,169 | | Joint ventures of Landsea Holdings Group | 4 | 427 | 10 | 2,028 | | Non-Landsea Holdings Group and non-joint ventures | 159 | 16,083 | 165 | 15,468 | | **Total** | **257** | **36,024** | **272** | **35,665** | [Types of Managed Properties](index=19&type=section&id=%E5%9C%A8%E7%AE%A1%E7%89%A9%E6%A5%AD%E9%A1%9E%E5%9E%8B) Residential properties remain the dominant managed property type, contributing 81.2% of property management service revenue, with pre-delivery stage residential properties accounting for the largest share, while commercial and public/other property revenue contributions decreased Property Management Revenue by Property Type | Property Type | 2025 Property Management Revenue (RMB thousand) | 2025 Property Management Revenue Share (%) | 2024 Property Management Revenue (RMB thousand) | 2024 Property Management Revenue Share (%) | | :--- | :--- | :--- | :--- | :--- | | Residential properties | 240,242 | 81.2 | 206,108 | 74.6 | | —Pre-delivery stage | 196,740 | 66.5 | 170,479 | 61.7 | | —Owners' committee stage | 43,502 | 14.7 | 35,629 | 12.9 | | Commercial properties | 27,379 | 9.3 | 38,133 | 13.8 | | Public and other properties | 28,191 | 9.5 | 32,050 | 11.6 | | **Total** | **295,812** | **100** | **276,291** | **100** | [Value-Added Services to Non-Property Owners](index=20&type=section&id=%E9%9D%9E%E6%A5%AD%E4%B8%BB%E5%A2%9E%E5%80%BC%E6%9C%8D%E5%8B%99) Revenue from value-added services to non-property owners, including preliminary planning and sales office management, significantly decreased by 59.2% year-on-year to RMB 4.0 million, primarily due to a decline in sales office management services - Revenue from value-added services to non-property owners decreased by **59.2%** to approximately **RMB 4.0 million** compared to approximately **RMB 9.9 million** in the prior period of 2024[49](index=49&type=chunk) - The decrease in revenue was primarily due to a decline in sales office management services[49](index=49&type=chunk) Revenue from Value-Added Services to Non-Property Owners | Service Type | 2025 (RMB thousand) | 2025 Share (%) | 2024 (RMB thousand) | 2024 Share (%) | | :--- | :--- | :--- | :--- | :--- | | Preliminary planning and design consultancy services | 2,148 | 53.1 | 2,110 | 21.3 | | Sales office management services | 1,702 | 42.1 | 6,500 | 65.6 | | Pre-delivery services | 9 | 0.2 | 525 | 5.3 | | Repair and maintenance services | 153 | 3.8 | 505 | 5.1 | | Property transaction assistance services | 33 | 0.8 | 270 | 2.7 | | **Total** | **4,045** | **100** | **9,910** | **100** | [Community Value-Added Services](index=20&type=section&id=%E7%A4%BE%E5%8D%80%E5%A2%9E%E5%80%BC%E6%9C%8D%E5%8B%99) Revenue from community value-added services, including community space management and renovation, decreased by 22.1% year-on-year to RMB 21.1 million, mainly due to a decline in "move-in ready" services, despite significant growth in convenience living and community retail services - Revenue from community value-added services decreased by **22.1%** to approximately **RMB 21.1 million** compared to approximately **RMB 27.1 million** in the prior period of 2024[51](index=51&type=chunk) - The decrease in revenue was primarily due to a decline in "move-in ready" services[51](index=51&type=chunk) Revenue from Community Value-Added Services | Service Type | 2025 (RMB thousand) | 2025 Share (%) | 2024 (RMB thousand) | 2024 Share (%) | | :--- | :--- | :--- | :--- | :--- | | Community space management services | 3,164 | 15.0 | 3,915 | 14.4 | | Renovation and "move-in ready" services | 6,397 | 30.3 | 16,766 | 61.9 | | Convenience living services | 9,592 | 45.5 | 6,314 | 23.3 | | Community retail services | 1,950 | 9.2 | 98 | 0.4 | | **Total** | **21,103** | **100** | **27,093** | **100** | [Financial Review](index=21&type=section&id=%E8%B2%A1%E5%8B%99%E5%9B%9E%E9%A1%A7) During the reporting period, the Group's total revenue slightly increased, but higher cost of sales led to a decrease in gross profit and gross profit margin; administrative expenses rose due to increased labor costs, while income tax expense decreased due to lower taxable profit, resulting in a 14% year-on-year decline in profit attributable to owners of the parent - The Group's revenue was approximately **RMB 321.0 million**, an increase of approximately **2.4%** compared to **RMB 313.3 million** in the prior period of 2024[54](index=54&type=chunk) - The Group's gross profit decreased by **4.5%** from approximately **RMB 99.6 million** in the prior period of 2024 to approximately **RMB 95.1 million**, and the gross profit margin decreased by **2.2 percentage points** from **31.8% to 29.6%**[58](index=58&type=chunk) - Profit and total comprehensive income attributable to owners of the parent was approximately **RMB 49.9 million**, a decrease of approximately **14%** compared to **RMB 58 million** in the prior period of 2024[62](index=62&type=chunk) [Revenue Analysis](index=21&type=section&id=%E6%94%B6%E7%9B%8A%E5%88%86%E6%9E%90) Total revenue increased by 2.4% year-on-year to RMB 321.0 million, with property management services remaining the largest revenue source at 92.1%, driven by higher average unit prices for newly delivered properties, while non-property owner and community value-added services revenue both declined Revenue by Business Segment | Business Segment | 2025 (RMB thousand) | 2025 Revenue Percentage (%) | 2024 (RMB thousand) | 2024 Revenue Percentage (%) | | :--- | :--- | :--- | :--- | :--- | | Property management services | 295,812 | 92.1 | 276,291 | 88.2 | | Value-added services to non-property owners | 4,045 | 1.3 | 9,910 | 3.2 | | Community value-added services | 21,103 | 6.6 | 27,093 | 8.6 | | **Total** | **320,960** | **100** | **313,294** | **100** | - The increase in property management services revenue was attributable to higher average unit prices for newly delivered properties[56](index=56&type=chunk) - The decrease in revenue from value-added services to non-property owners was mainly due to a reduction in sales office management services; the decrease in revenue from community value-added services was mainly due to a decline in "move-in ready" services[56](index=56&type=chunk) [Cost of Sales](index=22&type=section&id=%E9%8A%B7%E5%94%AE%E6%88%90%E6%9C%AC) Cost of sales increased by 5.7% year-on-year to RMB 225.9 million, primarily due to increased operational costs from greater investment in infrastructure to enhance property management quality - The Group's cost of sales was approximately **RMB 225.9 million**, an increase of approximately **5.7%** compared to approximately **RMB 213.7 million** in the prior period of 2024[57](index=57&type=chunk) - The main reason for the increase in cost of sales was the Group's increased investment in infrastructure to enhance property quality, leading to higher operating costs[57](index=57&type=chunk) [Gross Profit and Gross Profit Margin](index=22&type=section&id=%E6%AF%9B%E5%88%A9%E5%8F%8A%E6%AF%9B%E5%88%A9%E7%8E%87) Gross profit decreased by 4.5% year-on-year to RMB 95.1 million, and the gross profit margin declined by 2.2 percentage points to 29.6%, mainly due to increased operating costs, with community value-added services experiencing the largest margin decrease - The Group's gross profit decreased by **4.5%** from approximately **RMB 99.6 million** in the prior period of 2024 to approximately **RMB 95.1 million**[58](index=58&type=chunk) - The Group's gross profit margin decreased by **2.2 percentage points** from **31.8%** in the prior period of 2024 to **29.6%**, primarily due to increased operating costs[58](index=58&type=chunk) Gross Profit Margin by Business Segment | Business Segment | 2025 Gross Profit Margin (%) | 2024 Gross Profit Margin (%) | Gross Profit Margin Change (%) | | :--- | :--- | :--- | :--- | | Property management services | 29.4 | 30.2 | -0.8 | | Value-added services to non-property owners | 31.1 | 33.3 | -2.2 | | Community value-added services | 38.0 | 46.9 | -8.9 | | **Total** | **29.6** | **31.8** | **-2.2** | [Administrative Expenses](index=23&type=section&id=%E8%A1%8C%E6%94%BF%E9%96%8B%E6%94%AF) Administrative expenses increased by 2.2% year-on-year to RMB 28.1 million, primarily attributable to higher labor costs - The Group's administrative expenses increased by approximately **2.2%** from approximately **RMB 27.5 million** in the prior period of 2024 to approximately **RMB 28.1 million**, mainly due to increased labor costs[60](index=60&type=chunk) [Income Tax Expense](index=23&type=section&id=%E6%89%80%E5%BE%97%E7%A8%85%E9%96%8B%E6%94%AF) Income tax expense decreased by 31% year-on-year to RMB 7.8 million, mainly due to a reduction in taxable profit - The Group's income tax expense decreased by approximately **31%** from **RMB 11.2 million** in the prior period of 2024 to approximately **RMB 7.8 million**, primarily due to a decrease in taxable profit[61](index=61&type=chunk) [Profit Attributable to Owners of the Parent](index=23&type=section&id=%E6%AF%8D%E5%85%AC%E5%8F%B8%E6%93%81%E6%9C%89%E4%BA%BA%E6%87%89%E4%BD%B5%E5%88%A9%E6%BD%A4) Profit and total comprehensive income attributable to owners of the parent decreased by 14% year-on-year to RMB 49.9 million - Profit and total comprehensive income attributable to owners of the parent was approximately **RMB 49.9 million**, a decrease of approximately **14%** compared to **RMB 58 million** in the prior period of 2024[62](index=62&type=chunk) [Trade Receivables](index=24&type=section&id=%E8%B2%BF%E6%98%93%E6%87%89%E6%94%B6%E6%AC%BE%E9%A0%85) Trade receivables increased to RMB 141.3 million, up 4.2% from the end of 2024, primarily driven by an increase in total revenue - As of June 30, 2025, the Group's trade receivables were approximately **RMB 141.3 million**, an increase of approximately **RMB 5.7 million** or **4.2%** compared to approximately **RMB 135.6 million** as of December 31, 2024, primarily due to an increase in total revenue[63](index=63&type=chunk) [Prepayments, Deposits and Other Receivables](index=24&type=section&id=%E9%A0%90%E4%BB%98%E6%AC%BE%E9%A0%85%E3%80%81%E6%8C%89%E9%87%91%E5%8F%8A%E5%85%B6%E4%BB%96%E6%87%89%E6%94%B6%E6%AC%BE%E9%A0%85) Prepayments, deposits, and other receivables decreased by 15.6% to RMB 44.6 million, mainly due to a significant reduction in cash in transit balances - As of June 30, 2025, the Group's prepayments, deposits, and other receivables were approximately **RMB 44.6 million**, a decrease of approximately **15.6%** compared to approximately **RMB 52.8 million** as of December 31, 2024, primarily due to a significant decrease in cash in transit balances[64](index=64&type=chunk) [Trade Payables](index=24&type=section&id=%E8%B2%BF%E6%98%93%E6%87%89%E4%BB%98%E6%AC%BE%E9%A0%85) Trade payables decreased by 9.6% to RMB 37.1 million, primarily due to the company's adjustment of payment schedules based on market conditions - As of June 30, 2025, the Group's trade payables were approximately **RMB 37.1 million**, a decrease of approximately **9.6%** compared to approximately **RMB 41.1 million** as of December 31, 2024, mainly due to the Group adjusting its payment schedule based on market conditions[65](index=65&type=chunk) [Liquidity and Financial Resources](index=24&type=section&id=%E6%B5%81%E5%8B%95%E8%B3%87%E9%87%91%E5%8F%8A%E8%B2%A1%E5%8B%99%E8%B3%87%E6%BA%90) The Group maintains prudent financial management, closely monitoring its liquidity to ensure future funding needs are met, with cash primarily used for investments, information technology, and working capital - The Board of Directors closely monitors the Group's liquidity position to ensure that the liquidity structure of the Group's assets, liabilities, and other commitments can meet its funding needs in the foreseeable future[66](index=66&type=chunk) - During the reporting period, the Group's cash was primarily used for investments, information technology construction, and working capital, mainly funded by proceeds from the company's operations[66](index=66&type=chunk) [Interest Rate Risk](index=24&type=section&id=%E5%88%A9%E7%8E%87%E9%A2%A8%E9%9A%AA) The Group faces no significant direct risks from market interest rate fluctuations as it has no material interest-bearing assets or liabilities - As the Group has no material interest-bearing assets and liabilities, it does not face significant direct risks related to changes in market interest rates[67](index=67&type=chunk) [Foreign Exchange Risk](index=25&type=section&id=%E5%A4%96%E5%8C%AF%E9%A2%A8%E9%9A%AA) Operating primarily in China with all transactions denominated and settled in RMB, the Group does not engage in foreign exchange hedging, though RMB depreciation could adversely affect the value of dividends paid to overseas shareholders - The Group primarily conducts its business operations in China, with all transactions denominated and settled in RMB[68](index=68&type=chunk) - Any depreciation of the RMB would adversely affect the value of any dividends paid by the company to its shareholders outside China[68](index=68&type=chunk) - The Group currently does not engage in hedging activities aimed at or intended to manage foreign exchange rate risk[68](index=68&type=chunk) [Gearing Ratio](index=25&type=section&id=%E8%B3%87%E7%94%A2%E8%B2%A0%E5%82%B5%E6%AF%94%E7%8E%87) The gearing ratio is not meaningful as of June 30, 2025, due to zero interest-bearing borrowings - The gearing ratio as of June 30, 2025, is not meaningful as the Group had zero interest-bearing borrowings on the same date (December 31, 2024: zero)[69](index=69&type=chunk) [Contingent Liabilities](index=25&type=section&id=%E6%88%96%E6%9C%89%E8%B2%A0%E5%82%B5) As of June 30, 2025, the Group had no contingent liabilities - As of June 30, 2025, the Group had no contingent liabilities[70](index=70&type=chunk) [Material Acquisitions and Disposals](index=25&type=section&id=%E9%87%8D%E5%A4%A7%E6%94%B6%E8%B3%BC%E5%8F%8A%E5%87%BA%E5%94%AE) During the reporting period, the Group did not undertake any material acquisitions or disposals of subsidiaries, associates, or joint ventures - During the reporting period, the Group did not undertake any material acquisitions or disposals of subsidiaries, associates, or joint ventures[71](index=71&type=chunk) [Material Investments](index=25&type=section&id=%E9%87%8D%E5%A4%A7%E6%8A%95%E8%B3%87) During the reporting period, the Group held no material investments - During the reporting period, the Group held no material investments[72](index=72&type=chunk) [Future Investments and Capital Asset Plans](index=25&type=section&id=%E6%9C%AA%E4%BE%86%E6%8A%95%E8%B3%87%E5%8F%8A%E8%B3%87%E6%9C%AC%E8%B3%87%E7%94%A2%E8%A8%88%E5%8A%83) As of June 30, 2025, the Group had no significant future investment or capital asset plans beyond those disclosed in its prospectus - Except for those disclosed in the "Future Plans and Use of Proceeds" section of the company's prospectus dated June 29, 2021, the Group had no significant plans for investments and capital assets as of June 30, 2025[73](index=73&type=chunk) [Pledge of Assets](index=25&type=section&id=%E8%B3%87%E7%94%A2%E6%8A%B5%E6%8A%BC) As of June 30, 2025, the Group's pledged deposits amounted to RMB 0.1 million, consistent with the end of 2024 - As of June 30, 2025, the Group's pledged deposits amounted to **RMB 0.1 million** (December 31, 2024: RMB 0.1 million)[74](index=74&type=chunk) [Other Information](index=26&type=section&id=%E5%85%B6%E4%BB%96%E4%BF%A1%E6%81%AF) [Staff](index=26&type=section&id=%E5%93%A1%E5%B7%A5) As of June 30, 2025, the Group had 5,260 employees, a decrease from the end of 2024, with total staff costs remaining largely stable year-on-year, and plans to enhance training and adhere to local social security and provident fund regulations - As of June 30, 2025, the Group had **5,260 employees** (December 31, 2024: 5,644 employees)[75](index=75&type=chunk) - During the reporting period, total staff costs were approximately **RMB 149.7 million**, compared to approximately **RMB 149.5 million** in the prior period of 2024[75](index=75&type=chunk) - The Group will further strengthen its employee training programs using internal and external resources, adopt remuneration policies similar to its peers, and comply with local government regulations for social insurance contribution schemes or other retirement schemes[75](index=75&type=chunk) [Significant Post-Reporting Period Events](index=26&type=section&id=%E5%A0%B1%E5%91%8A%E6%9C%9F%E5%BE%8C%E7%9A%84%E9%87%8D%E5%A4%A7%E6%9C%9F%E5%BE%8C%E4%BA%8B%E9%A0%85) There have been no significant post-reporting period events affecting the company from June 30, 2025, up to the announcement date - There have been no significant events affecting the company from June 30, 2025, up to the date of this announcement[76](index=76&type=chunk) [Compliance with Corporate Governance Code](index=26&type=section&id=%E9%81%B5%E5%AE%88%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB%E5%AE%88%E5%89%87) The Group is committed to maintaining high standards of corporate governance, having adopted and complied with all applicable provisions of the Corporate Governance Code in Appendix C1 of the HKEX Listing Rules during the reporting period - The Group is committed to maintaining and enhancing high standards of corporate governance to safeguard shareholders' interests, enhance corporate value, and improve accountability[77](index=77&type=chunk) - The company has adopted the Corporate Governance Code set out in Appendix C1 to the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited and has complied with all applicable code provisions during the reporting period[77](index=77&type=chunk) [Standard Code for Securities Transactions by Directors](index=27&type=section&id=%E8%91%A3%E4%BA%8B%E9%80%B2%E8%A1%8C%E8%AD%89%E5%88%B8%E4%BA%A4%E6%98%93%E7%9A%84%E6%A8%99%E6%BA%96%E5%AE%88%E5%89%87) The company has adopted the Standard Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix C3 of the Listing Rules, with all directors confirming compliance during the reporting period - The company has adopted the Standard Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix C3 to the Listing Rules[78](index=78&type=chunk) - Following specific enquiries made to all directors, they confirmed that they have complied with the standards for securities transactions by directors as set out in the Standard Code during the reporting period[78](index=78&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=27&type=section&id=%E8%B3%BC%E8%B2%B7%E3%80%81%E5%87%BA%E5%94%AE%E6%88%96%E8%B4%96%E5%9B%9E%E6%9C%AC%E5%85%AC%E5%8F%B8%E4%B8%8A%E5%B8%82%E8%AD%89%E5%88%B8) During the reporting period, neither the company nor its subsidiaries purchased, sold, or redeemed any of the company's listed securities, and no treasury shares were held as of June 30, 2025 - During the reporting period, neither the company nor its subsidiaries purchased, sold, or redeemed any of the company's listed securities[79](index=79&type=chunk) - As of June 30, 2025, the company held no treasury shares[79](index=79&type=chunk) [Interim Dividends](index=27&type=section&id=%E4%B8%AD%E6%9C%9F%E8%82%A1%E6%81%AF) The Board of Directors resolved not to declare any interim dividend for the six months ended June 30, 2025, consistent with the prior year - The Board of Directors resolved not to declare any interim dividend for the six months ended June 30, 2025 (six months ended June 30, 2024: nil)[80](index=80&type=chunk) [Audit Committee Review of Unaudited Interim Results](index=27&type=section&id=%E5%AF%A9%E6%A0%B8%E5%A7%94%E5%93%A1%E6%9C%83%E5%AF%A9%E9%96%B1%E6%9C%AA%E7%B6%93%E5%AF%A9%E6%A0%B8%E7%9A%84%E4%B8%AD%E6%9C%9F%E6%A5%AD%E7%B8%BE) The Audit Committee reviewed the Group's unaudited interim results for the six months ended June 30, 2025, agreeing with management on accounting principles, risk management, internal controls, and financial reporting, with the committee comprising three independent non-executive directors, including a professionally qualified chair - The Audit Committee has reviewed the Group's unaudited interim results for the six months ended June 30, 2025, and has agreed with the company's management on the accounting principles and practices adopted by the Group, risk management, internal controls, and financial reporting matters[81](index=81&type=chunk) - The Audit Committee comprises three independent non-executive directors, Ms. Luo Ying, Mr. Hu Ning, and Ms. Zou Dan, with Ms. Zou Dan appointed as the chairperson of the Audit Committee, possessing the appropriate professional qualifications or relevant financial management expertise as required by Rule 3.10(2) of the Listing Rules[81](index=81&type=chunk) [Publication of Interim Results Announcement and Interim Report on HKEX and Company Website](index=28&type=section&id=%E6%96%BC%E8%81%AF%E4%BA%A4%E6%89%80%E5%8F%8A%E6%9C%AC%E5%85%AC%E5%8F%B8%E7%B6%B2%E7%AB%99%E5%88%8A%E7%99%BC%E4%B8%AD%E6%9C%9F%E6%A5%AD%E7%B8%BE%E5%85%AC%E5%91%8A%E5%8F%8A%E4%B8%AD%E6%9C%9F%E5%A0%B1%E5%91%8A) The interim results announcement has been published on the websites of HKEX and the company, with the interim report to be made available to shareholders in due course - This interim results announcement will be published on the websites of Hong Kong Exchanges and Clearing Limited (www.hkexnews.hk) and the company (www.lingyue-service.com) respectively[82](index=82&type=chunk) - The company's interim report for the six months ended June 30, 2025, will be provided to shareholders in due course and will be available on the aforementioned websites[82](index=82&type=chunk) [Board of Directors](index=28&type=section&id=%E8%91%A3%E4%BA%8B%E6%9C%83) As of the announcement date, the Board of Directors includes executive directors Mr. Liu Yuqi and Ms. Luo Hongping; non-executive directors Ms. Wang Tao and Ms. Hou Sanli; and independent non-executive directors Ms. Luo Ying, Mr. Hu Ning, and Ms. Zou Dan - As of the date of this announcement, the Board of Directors comprises executive directors Mr. Liu Yuqi and Ms. Luo Hongping; non-executive directors Ms. Wang Tao and Ms. Hou Sanli; and independent non-executive directors Ms. Luo Ying, Mr. Hu Ning, and Ms. Zou Dan[84](index=84&type=chunk)

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確 性或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部份內容而產生或 因倚賴該等內容而引致的任何損失承擔任何責任。 Ling Yue Services Group Limited 領悅服務集團有限公司 （於開曼群島註冊成立的有限公司） （股份代號：2165） 董事會會議召開日期 領悅服務集團有限公司（「本公司」）董事會（「董事會」）謹此公佈，董事會會議 將於2025年8月29日（星期五）舉行，藉以（其中包括）考慮及批准本公司及其附 屬公司截至2025年6月30日止六個月之中期業績及其發佈，並考慮建議派發中 期股息（如有）。 承董事會命 領悅服務集團有限公司 主席 劉玉奇 香港，2025年8月11日 於本公告日期，本公司董事會成員包括執行董事劉玉奇先生及羅紅萍女士；非執行董事王濤 女士及侯三利女士；以及獨立非執行董事羅瑩女士、胡寧先生及鄒丹女士。 ...

Financial Performance - The company reported a revenue of HKD 1.2 billion for the fiscal year 2024, representing a year-on-year increase of 15%[4] - The company achieved a revenue of RMB 652.9 million for the year 2024, representing a 7.2% increase compared to the same period in 2023[24] - The total revenue for the year ended December 31, 2024, was approximately RMB 652.9 million, an increase of about 7.2% compared to RMB 609.1 million in 2023[46] - The total revenue from property management services for the year 2024 was RMB 579.688 million, compared to RMB 519.833 million in 2023, reflecting a growth of approximately 11.5%[31] - The gross profit for the year was approximately RMB 183.5 million, reflecting a decline of 5.7% year-on-year[24] - Net profit for the year was around RMB 86.2 million, which is a decrease of 17.6% compared to 2023[24] - Profit attributable to owners of the company decreased by approximately 19.9% to about RMB 81.5 million from RMB 101.9 million in 2023[53] User Growth and Market Expansion - User data showed an increase in active users by 20%, reaching a total of 500,000 users by the end of 2024[4] - Market expansion plans include entering two new provinces in China by mid-2025, targeting a 5% market share in those regions[4] - The company plans to continue expanding its market share and business layout in China[27] Future Projections and Investments - The company provided a positive outlook for 2025, projecting a revenue growth of 10% to 12%[4] - New product launches are expected to contribute an additional HKD 200 million in revenue in 2025[4] - The company is investing HKD 50 million in R&D for new technologies aimed at enhancing service efficiency[4] - The company is considering strategic acquisitions to enhance its service portfolio, with a budget of up to HKD 300 million allocated for potential deals[4] Operational Efficiency and Management - The company aims to improve operational efficiency by 15% through the implementation of new management software[4] - The company is focusing on the development strategy of "deepening in Southwest, layout in Xinjiang, and national development," establishing two growth poles in Sichuan and Xinjiang[24] - The company is committed to enhancing service quality and customer value creation, aiming for high-quality development[25] - The company has initiated the "Spring Dawn Action" and "Orange Storm" quality improvement plans to strengthen quality management mechanisms[20] Community and Value-Added Services - The company is actively developing new value-added services, focusing on "property services + life services" to meet diverse resident needs[21] - The company aims to further enrich its community value-added services, which typically yield higher profit margins compared to other property management services[27] - Community value-added services revenue increased by 10.6% to approximately RMB 50.9 million, mainly due to growth in community space management and community retail services[43] Corporate Governance and Board Structure - The company has adopted the corporate governance code and has complied with all applicable principles and provisions as of December 31, 2024[90] - The board consists of seven members, including two executive directors, two non-executive directors, and three independent non-executive directors[92] - The company has established action agreements among major shareholders, including Liu Ce, Liu Haowei, and others, to ensure unified decision-making[76] - The company has a strong board with diverse expertise in finance, accounting, and management, which supports its operational and strategic goals[81] Risk Management - The company has established a risk management framework that is crucial for its success in the Chinese market, addressing key operational risks such as changes in political and economic conditions and regulatory environments in China[121] - The board of directors is responsible for ensuring the effectiveness of the risk management and internal control systems, which are reviewed annually to provide reasonable assurance against significant misstatements or losses[120] - An annual review of the risk management and internal control systems has been conducted, covering all major controls, including financial, operational, and compliance controls, which were deemed effective and sufficient[123] Shareholder Engagement and Communication - The company emphasizes effective communication with shareholders to enhance investor relations and understanding of business performance and strategies[132] - The company provides multiple channels for ongoing communication with shareholders, including company communications and announcements on the Hong Kong Stock Exchange website[134][135] - The company aims to enhance shareholder engagement through annual general meetings and other platforms for investor relations[140] Employee and Talent Management - The total employee cost for the year was approximately RMB 313.1 million, up from RMB 269.5 million in 2023, with a total of 5,786 employees as of December 31, 2024[67] - The company is implementing talent development programs to optimize organizational structure and enhance internal capabilities[22] Financial Position and Cash Management - Cash and bank balances as of December 31, 2024, were approximately RMB 712.9 million, up from RMB 602.9 million in 2023[58] - The current ratio remained stable at approximately 2.8 as of December 31, 2024, consistent with the previous year[59] - The company has no borrowings as of December 31, 2024, consistent with the previous year[156] Share Options and Equity - The share option plan allows for a total of 28,000,000 shares to be issued, representing 10% of the total shares issued on the date trading commenced on the stock exchange, equivalent to 9.80% of the total shares issued as of the report date[187] - Directors and senior executives hold 74.67% of the company's shares, amounting to 213,313,000 shares each for key individuals[192] - The stock options can be exercised at any time within 10 years from the date of grant, with no specified minimum holding period[191]

Financial Performance - The company's revenue for the year ended December 31, 2024, was RMB 652.9 million, an increase of 7.2% compared to RMB 609.1 million in 2023[3] - The gross profit for the year ended December 31, 2024, was RMB 183.5 million, a decrease of 5.7% from RMB 194.7 million in 2023[3] - The net profit for the year ended December 31, 2024, was RMB 86.2 million, down 17.6% from RMB 104.6 million in 2023[3] - The total comprehensive income for the year ended December 31, 2024, was RMB 85.5 million, compared to RMB 104.1 million in 2023[5] - The gross profit for 2024 was approximately RMB 183.5 million, representing a decline of 5.7% year-over-year[28] - Net profit for 2024 was approximately RMB 86.2 million, a decrease of 17.6% from RMB 104.5 million in 2023[28] - The total tax expense for 2024 was RMB 18.1 million, a decrease from RMB 22.9 million in 2023[21] - The profit attributable to the company's owners for the year was approximately RMB 81.5 million, a decrease of about 19.9% compared to RMB 101.9 million in the same period last year[61] Revenue Sources - Revenue from property management services was RMB 579.7 million, up from RMB 519.8 million in 2023[11] - Revenue from non-owner value-added services decreased to RMB 22.4 million from RMB 43.3 million in 2023[11] - Revenue from community value-added services increased to RMB 50.9 million from RMB 46.0 million in 2023[11] - Property management services remained the largest revenue source, contributing RMB 579.7 million, which accounted for 88.8% of total revenue[55] - The revenue from residential properties was RMB 434.1 million, accounting for 74.9% of total property management service revenue[44] - Non-owner value-added services revenue decreased by 48.3% to approximately RMB 22.4 million, primarily due to declines in sales office management and pre-planning consulting services[49] - Community value-added services revenue grew by 10.6% to approximately RMB 50.9 million, driven by increases in community space management and retail services[51] Project and Management Overview - The company had 280 signed projects with a total signed construction area of 36.8 million square meters as of December 31, 2024[3] - The number of managed projects increased to 272 in 2024, with a total managed area of 31,565 thousand square meters, generating revenue of RMB 579.7 million[54] - The company has signed management services for 280 properties, with a total contracted building area of 36.8 million square meters, compared to 253 properties and 36.372 million square meters in the previous year[38] - As of December 31, 2024, the total contracted building area managed by the company is approximately 36.8 million square meters, an increase of 1.3% compared to the previous year[33] - The number of properties under management increased to 272, up 4.8% from 249 properties in the previous year[34] - The total managed building area reached approximately 31.6 million square meters, reflecting a growth of 4.8% year-over-year[34] - The company expanded its regional coverage to 33 cities, 9 provinces, 1 autonomous region, and 1 municipality[35] Dividends and Shareholder Information - The company did not recommend the payment of a final dividend for the year ended December 31, 2024, consistent with 2023[3] - The company has no dividends declared or proposed for the fiscal year ending December 31, 2024[22] - The board did not recommend the payment of a final dividend for the year ended December 31, 2024[79] - The company plans to hold its annual general meeting on May 30, 2025[86] - The share register will be closed from May 27, 2025, to May 30, 2025, to determine shareholders' eligibility to attend and vote at the annual general meeting[87] Operational Efficiency and Strategy - The company is focusing on expanding its operations in Southwest China and Xinjiang, aiming for a diversified market approach[28] - The company has implemented the "Landsea 3.0" strategy to enhance its standardized system and operational efficiency[28] - The company continues to focus on acquiring a larger market share and expanding its business layout in China[31] - The company aims to further enrich community value-added services, which typically generate higher profit margins compared to other property management services[32] Financial Position and Assets - The company's total assets less current liabilities amounted to RMB 631.8 million as of December 31, 2024, compared to RMB 550.8 million in 2023[7] - Cash and bank balances amounted to approximately RMB 712.9 million as of December 31, 2024, up from RMB 602.9 million in the previous year[66] - The current ratio remained stable at approximately 2.8 as of December 31, 2024, consistent with the previous year[67] - Trade receivables increased to RMB 180.8 million in 2024 from RMB 155.6 million in 2023, with a provision for impairment of RMB 45.2 million[25] - Trade receivables increased by approximately RMB 14.6 million or 12.0% to RMB 135.6 million as of December 31, 2024, due to revenue growth from increased managed building area[62] Governance and Compliance - The audit committee has been established in accordance with Listing Rule 3.21 and the Corporate Governance Code, consisting of three independent non-executive directors[84] - The audit committee reviewed and agreed with the management on the annual performance for the year ending December 31, 2024[84] - The group's auditor, Shinewing (HK) CPA Limited, confirmed that the figures in the consolidated income statement and other comprehensive income, consolidated financial position, and related notes are consistent with the group's financial statements for the year[85] - The board of directors includes executive and non-executive members, ensuring a diverse governance structure[90] Expenses and Costs - Administrative expenses increased by approximately 7.1% to about RMB 60.6 million from RMB 56.6 million in the same period last year, primarily due to rising labor costs[59] - The sales cost for the group was approximately RMB 469.4 million, an increase of about 13.3% compared to RMB 414.4 million in 2023[56] - Income tax expenses decreased by approximately 21.3% to about RMB 18.1 million from RMB 23.0 million in the previous year, aligning with the trend of declining profits[60] - The total employee cost for the year was approximately RMB 313.1 million, an increase from RMB 269.5 million in the previous year, with a total of 5,786 employees as of December 31, 2024[75]

Property Management Growth - As of June 30, 2024, the company managed 267 properties, an increase from 228 properties in the previous year, representing a growth of 17.1%[21] - The total managed building area reached approximately 31.68 million square meters, up 21.7% from 26.04 million square meters in the same period last year[21] - The number of contracted management properties increased to 272, compared to 257 in the previous year, marking a growth of 5.8%[21] - The total contracted building area was approximately 35.67 million square meters, a decrease of 7.8% from 38.69 million square meters in the previous year[21] - As of June 30, 2024, the company has expanded its coverage to 36 cities, 9 provinces, 1 autonomous region, and 1 municipality, managing a total of 267 projects with a total managed area of 31,680 thousand square meters[22] - The company signed contracts for 272 projects with a total signed area of 35,665 thousand square meters as of June 30, 2024, compared to 257 projects and 38,689 thousand square meters in 2023[27] Revenue Performance - The annual revenue from property management services reached RMB 276,291 thousand, representing a 10.1% increase from RMB 250,848 thousand in the same period of 2023[22] - Total revenue for the group was approximately RMB 313.3 million, an increase of about 6.3% compared to RMB 294.7 million in the same period of 2023[42] - Property management services generated revenue of approximately RMB 276.3 million, accounting for 88.2% of total revenue, driven by an increase in managed building area[44] - The company reported a 10.1% increase in total revenue from property management services compared to the previous year, reflecting strong operational performance[22] - The profit for the period was RMB 60,326 thousand, compared to RMB 58,656 thousand in the previous year, reflecting a growth of approximately 2.8%[83] Service Offerings and Strategy - The company aims to expand its market share and enhance its business layout in China, focusing on community value-added services which typically yield higher profit margins[19] - The company has diversified its service offerings across property management, non-owner value-added services, and community value-added services[17] - The company continues to strengthen its community value-added service offerings to meet resident needs and enhance financial performance[19] - The company has established a development strategy focusing on Southwest China and Xinjiang, aiming to create two growth poles[15] - The company plans to maintain its service philosophy of "Companionship and Touch" while focusing on quality and customer value creation in the second half of 2024[16] Financial Metrics - The gross profit decreased by 0.8% to approximately RMB 99.6 million, with a gross profit margin of 31.8%, down 2.3 percentage points from 34.1% in 2023[46] - Administrative expenses rose by approximately 12.1% to about RMB 27.5 million, mainly due to increased labor costs[47] - Sales costs increased by approximately 10.0% to about RMB 213.7 million, attributed to the rise in operational costs from the increased managed building area[45] - The gross profit margin for property management services was 30.2%, down from 32.7% in 2023, reflecting increased operational costs[46] - The company's profit attributable to owners for the reporting period was approximately RMB 58.0 million, an increase of about 7.6% compared to RMB 53.9 million in the same period of 2023[49] Cash Flow and Assets - As of June 30, 2024, total assets amounted to RMB 894,337 thousand, a slight decrease from RMB 894,616 thousand as of December 31, 2023, reflecting a 0.03% decline[84] - Current assets increased to RMB 850,022 thousand from RMB 792,338 thousand, representing a growth of 7.3%[84] - Cash and bank balances improved to RMB 640,001 thousand, an increase of 6.1% from RMB 602,924 thousand[84] - The company’s net current assets improved to RMB 566,691 thousand, a rise of 12.1% from RMB 505,549 thousand[84] - The total liabilities decreased slightly to RMB 284,369 thousand from RMB 287,929 thousand, showing a reduction of 1.8%[84] Shareholder Information - As of June 30, 2024, the company has a total of 285,685,000 shares issued, with significant shareholdings by major stakeholders[71] - Wang Tao and Hou Sanli each hold 100% beneficial ownership of Tianyue Capital and Linghui Capital, respectively[69] - Liu Haowei holds 213,313,000 shares, representing 74.67% of the controlled company[70] - Tianyue Holding has a beneficial ownership of 68,960,430 shares, accounting for 24.14% of the company[70] - The company’s major shareholders have agreed to act in concert regarding significant management matters and decisions[68] Future Outlook - The company provided a future outlook, projecting a revenue growth of 25% for the next fiscal year, aiming for RMB 625 million[123] - New product launches are expected to contribute an additional RMB 100 million in revenue by Q4 2024[124] - The company is expanding its market presence in Southeast Asia, targeting a 10% market share by the end of 2025[123] - Research and development expenses increased by 30%, totaling RMB 50 million, focusing on innovative technologies[124] - The company announced plans for a strategic acquisition to enhance its service offerings, with an estimated cost of RMB 200 million[123]

Financial Performance - For the six months ended June 30, 2024, the revenue was RMB 313.3 million, an increase of 6.3% compared to RMB 294.7 million in the same period of 2023[1]. - The gross profit for the same period was RMB 99.6 million, a decrease of 0.8% from RMB 100.4 million in 2023[2]. - The net profit for the six months ended June 30, 2024, was RMB 60.3 million, reflecting a growth of 2.8% from RMB 58.7 million in 2023[2]. - The basic and diluted earnings per share for the period were RMB 0.20, compared to RMB 0.19 in the same period of 2023[2]. - Total revenue for the six months ended June 30, 2024, was RMB 313,294 thousand, an increase from RMB 294,658 thousand for the same period in 2023, representing a growth of approximately 6.0%[13]. - The group reported a decrease in other income and gains to RMB 3.3 million from RMB 4.2 million in the previous year[2]. - The administrative expenses increased to RMB 27.5 million from RMB 24.5 million in the same period of 2023[2]. - The group reported a pre-tax profit after accounting for various costs, including a goodwill impairment of RMB 4,302 thousand in the prior year, which was not present in the current period[16]. - The income tax expense decreased by approximately 14.8% to RMB 11.2 million, primarily due to contributions from companies benefiting from preferential tax rates[51]. - The profit attributable to the owners of the company was approximately RMB 58.0 million, an increase of about 7.6% compared to RMB 53.9 million in the same period of 2023[52]. Project Management and Operations - As of June 30, 2024, the group had 272 signed projects with a total signed construction area of 35.7 million square meters, and 267 projects under management with a total managed area of 31.7 million square meters[1]. - The total number of properties under management was 267, an increase from 228 properties in the same period of 2023, reflecting a growth of 17.1%[27]. - The total contracted gross floor area managed by the company as of June 30, 2024, was approximately 31.68 million square meters, which is a 21.7% increase from 26.03 million square meters in the same period of 2023[27]. - The total contracted management projects increased to 272 as of June 30, 2024, compared to 257 in the same period of 2023, marking a growth of 5.8%[27]. - The company signed 272 new projects in 2024, covering a construction area of 35,665 thousand square meters, with 3,985 thousand square meters remaining uncompleted as of June 30, 2024[37]. - The company managed a total of 267 projects with a construction area of 31,680 thousand square meters, generating revenue of RMB 276,291 thousand for the six months ending June 2024, representing a 10.1% increase from RMB 250,848 thousand in the same period of 2023[36]. - Revenue from projects managed for Landsea Holdings accounted for 66.4% of total revenue, with 94 projects and a construction area of 16,431 thousand square meters[36]. Revenue Breakdown - Property management service revenue reached RMB 276,291 thousand for the six months ended June 30, 2024, compared to RMB 250,848 thousand in the prior year, reflecting an increase of about 10.1%[14]. - Non-owner value-added services revenue decreased to RMB 9,910 thousand from RMB 20,603 thousand, a decline of approximately 51.9%[13]. - Community value-added services revenue increased to RMB 27,093 thousand from RMB 23,207 thousand, marking a growth of around 16.4%[13]. - Property management services generated revenue of approximately RMB 276.3 million, accounting for 88.2% of total revenue, driven by an increase in managed building area[46]. - The company's revenue from joint ventures with Landsea Holdings Group was RMB 14,722 thousand, accounting for 5.3% of total revenue[36]. - The company's revenue from property management services in Guangdong Province was RMB 13,325 thousand, representing 4.8% of total revenue[29]. Assets and Liabilities - Total assets less current liabilities amounted to RMB 611.0 million as of June 30, 2024, compared to RMB 550.8 million as of December 31, 2023[5]. - The total equity as of June 30, 2024, was RMB 609.9 million, an increase from RMB 549.7 million as of December 31, 2023[5]. - The company's trade receivables as of June 30, 2024, amounted to RMB 154,456,000, up from RMB 121,032,000 as of December 31, 2023, indicating a significant increase of 27.5%[21]. - The total trade payables as of June 30, 2024, were RMB 28,564,000, a decrease from RMB 31,404,000 as of December 31, 2023, reflecting a reduction of 9.3%[22]. - As of June 30, 2024, the company's prepaid expenses, deposits, and other receivables amounted to RMB 416 million, a decrease of approximately 14.4% from RMB 486 million as of December 31, 2023[54]. - As of June 30, 2024, the company's trade payables were approximately RMB 286 million, down about 9% from RMB 314 million as of December 31, 2023, primarily due to a reduction in outsourced expenditures[55]. - The company had no interest-bearing borrowings as of June 30, 2024, resulting in an asset-to-liability ratio of zero, indicating no significant debt[59]. Strategic Focus and Future Plans - The company plans to continue expanding its service boundaries and focus on customer value creation in the second half of 2024, amidst industry opportunities and challenges[24]. - The company aims to enhance its community value-added services, which typically yield higher profit margins compared to other property management services[25]. - The company has expanded its regional coverage to 36 cities, 9 provinces, 1 autonomous region, and 1 municipality as of June 30, 2024[28]. Other Information - The company did not declare any interim dividend for the six months ended June 30, 2024, consistent with the previous year[19]. - There were no significant acquisitions or disposals of subsidiaries, associates, or joint ventures during the reporting period[59]. - The company has not engaged in any foreign currency hedging activities and has no foreign currency-denominated cash as of June 30, 2024[58]. - The company is committed to prudent financial management and closely monitors its liquidity to meet future funding needs[56]. - There were no significant post-reporting events affecting the company from June 30, 2024, to the announcement date[61]. - The company has adopted a compensation policy similar to industry peers, with performance bonuses awarded based on employee contributions[60].

Financial Performance - The company reported a revenue of HKD 1.2 billion for the fiscal year 2023, representing a year-on-year increase of 15%[2]. - The company achieved revenue of approximately RMB 609.1 million in 2023, an increase of 5.4% compared to the same period in 2022[18]. - The company's total revenue for the year 2023 was approximately RMB 609.1 million, an increase of about 5.4% compared to RMB 577.7 million in 2022[57]. - Revenue for the fiscal year 2023 reached $500 million, representing a 15% increase compared to the previous year[87]. - Revenue from property management services reached RMB 519,833 thousand in 2023, up from RMB 473,389 thousand in 2022, reflecting an increase of 9.8%[36]. - Property management services generated revenue of approximately RMB 519.8 million, accounting for 85.3% of total revenue, up from 81.9% in 2022[58]. - Non-owner value-added services revenue decreased by 38.2% to approximately RMB 43.3 million, representing 7.2% of total revenue[52]. - Community value-added services revenue increased by 34.0% to approximately RMB 46.0 million, accounting for 7.5% of total revenue[54]. Profitability - Gross profit for the year was approximately RMB 194.7 million, representing a year-on-year growth of 16.5%[18]. - Gross profit for the year increased by approximately 16.5% to about RMB 194.7 million, with a gross profit margin of 32.0%, up from 28.9% in 2022[61]. - Net profit reached approximately RMB 104.6 million, a significant increase of 30.4% compared to 2022[18]. - The profit attributable to the owners of the company for the year was approximately RMB 101.4 million, an increase of about 32.3% from RMB 76.6 million in 2022[64]. User Growth and Market Expansion - User data showed an increase in active users by 20%, reaching a total of 500,000 users by the end of 2023[2]. - The company reported a significant increase in user data, with a year-over-year growth of 25% in active users[87]. - The company is considering strategic acquisitions to enhance its service offerings, with a budget of HKD 300 million allocated for potential deals[2]. - Market expansion plans include entering two new provinces in China, aiming for a 5% market share in these regions by 2025[2]. - The company is planning to expand its market presence in Southeast Asia, targeting a 10% market share by 2025[87]. Future Outlook - The company provided a positive outlook for 2024, projecting a revenue growth of 10% to 12%[2]. - The company has set a future outlook with a revenue guidance of $600 million for the next fiscal year, indicating a projected growth of 20%[87]. - New product launches are expected to contribute an additional HKD 200 million in revenue in 2024[2]. - New product launches are expected to contribute an additional $50 million in revenue, with a focus on innovative technology solutions[87]. Research and Development - The company is investing HKD 50 million in research and development for new technologies in the upcoming year[2]. - The company has invested $10 million in research and development for new technologies aimed at improving operational efficiency[87]. Operational Efficiency - The company aims to improve operational efficiency, targeting a reduction in costs by 8% through process optimization[2]. - The company is enhancing its digital management capabilities through the development of a smart property management platform[22]. - The management team emphasized the importance of sustainable practices, aiming for a 30% reduction in carbon footprint by 2025[87]. Corporate Governance - The company emphasizes the importance of good corporate governance in its management structure and internal control procedures[100]. - The company has adopted the corporate governance code and has complied with all applicable principles and provisions as of December 31, 2023[103]. - The board consists of seven members, including two executive directors, two non-executive directors, and three independent non-executive directors[106]. - The company received annual confirmations of independence from its independent non-executive directors, affirming their status[110]. - The board has established a mechanism for independent directors to provide independent views and opinions, ensuring effective governance[136]. Employee and Management Structure - The total employee cost for the year ended December 31, 2023, was approximately RMB 269.5 million, compared to RMB 257.4 million for the same period in 2022[79]. - The group had 5,644 employees as of December 31, 2023, an increase from 4,405 employees as of December 31, 2022[79]. - The board currently consists of seven members, including six female directors, indicating a gender diversity that requires improvement[131]. - The nomination committee is actively seeking suitable male candidates to join the board to enhance gender diversity[134]. Risk Management - The group faces significant operational risks, including changes in China's political and economic conditions and regulatory environment[144]. - The risk management strategy has been approved by the board and is implemented by the legal audit department to enhance operational policies and procedures[144]. - The internal control measures are led by the board, with management assisting in identifying and assessing business system risks[145]. - The risk management and internal control systems were reviewed and deemed effective and sufficient as of December 31, 2023[146]. Financial Position - As of December 31, 2023, the group's cash and bank balances were approximately RMB 602.9 million, up from RMB 361.0 million as of December 31, 2022[69]. - The current ratio as of December 31, 2023, was approximately 2.8, compared to 2.6 as of December 31, 2022[70]. - The group had no interest-bearing borrowings as of December 31, 2023, resulting in an asset-to-liability ratio that is not meaningful[70]. - The group has not engaged in any hedging activities to manage foreign exchange rate risks, as it does not anticipate significant foreign exchange risks[71].

Financial Performance - The company's revenue for the year ended December 31, 2023, was RMB 609.1 million, an increase of 5.4% compared to RMB 577.7 million in 2022[4]. - Gross profit for the year ended December 31, 2023, was RMB 194.7 million, reflecting a growth of 16.5% from RMB 167.1 million in the previous year[4]. - Net profit for the year ended December 31, 2023, reached RMB 104.6 million, marking a 30.4% increase from RMB 80.3 million in 2022[4]. - The company's basic and diluted earnings per share for the year ended December 31, 2023, were RMB 0.36, compared to RMB 0.27 in 2022[5]. - The group’s pre-tax profit for 2023 was RMB 127,576,000, an increase of 33% compared to RMB 95,935,000 in 2022[41]. - Total income tax expense for the year was RMB 22,955,000, up from RMB 15,678,000 in 2022, reflecting a 46% increase[41]. - The group's gross profit increased by approximately 16.5% to about RMB 194.7 million from RMB 167.1 million in the same period of 2022[105]. - The profit attributable to the company's owners rose by approximately 32.3% to about RMB 101.4 million, compared to RMB 76.6 million in the same period of 2022[110]. Revenue Breakdown - Property management service revenue was RMB 519,833 thousand in 2023, up from RMB 473,389 thousand in 2022, indicating a growth of about 9.8%[26]. - Non-owner value-added services revenue decreased to RMB 43,285 thousand in 2023 from RMB 70,002 thousand in 2022, reflecting a decline of approximately 38.2%[26]. - Community value-added services revenue increased to RMB 45,979 thousand in 2023 from RMB 34,311 thousand in 2022, showing a growth of around 34.1%[26]. - The revenue from the major customer, Landsea Holdings Group, accounted for 11.3% of total revenue in 2023, down from 19.3% in 2022[24]. - The total revenue from property management services reached RMB 519.83 million, an increase from RMB 473.39 million in the previous year, reflecting a growth of approximately 9.8%[78]. - Revenue from residential properties management was RMB 374.2 million, representing 72.0% of total property management revenue[89]. Assets and Liabilities - The company's cash and bank balances increased to RMB 602.9 million as of December 31, 2023, up from RMB 361.0 million in 2022[9]. - Total assets less current liabilities amounted to RMB 550.8 million, compared to RMB 454.9 million in the previous year[11]. - Trade receivables increased to RMB 155,586,000 in 2023 from RMB 133,812,000 in 2022, representing a growth of 16%[46]. - The impairment loss on trade receivables rose to RMB 34,554,000 in 2023, compared to RMB 18,447,000 in 2022, indicating an increase of 87%[49]. - The group reported a total of RMB 55,381,000 in prepayments and other receivables for 2023, up from RMB 30,881,000 in 2022, marking an increase of 79%[53]. - Trade payables decreased from RMB 48.3 million in 2022 to RMB 31.4 million in 2023[56]. - Other payables and accrued expenses totaled RMB 120.3 million in 2023, up from RMB 90.4 million in 2022[58]. Project Management - As of December 31, 2023, the company had 253 signed projects with a total signed construction area of 36.4 million square meters[4]. - The total signed area as of December 31, 2023, was approximately 36.4 million square meters, a decrease of about 3.9% compared to the previous year[64]. - The managed building area increased by approximately 27.7% to about 30.1 million square meters as of December 31, 2023[64]. - The number of properties under management increased to 249, representing a growth of 27.7% year-on-year, with a total managed area of approximately 30.1 million square meters[75]. - The number of signed projects reached 253, with a signed building area of 36,372 thousand square meters, indicating growth in project acquisition[87]. - In Sichuan province, the company managed 213 projects with a total area of 22.81 million square meters, contributing 81% of the total revenue[78]. Dividends and Governance - The company did not recommend the payment of a final dividend for the year ended December 31, 2023, consistent with the previous year[4]. - The group did not recommend a final dividend for the year ending December 31, 2023, consistent with 2022[42]. - The audit committee has been established in accordance with Listing Rule 3.21 and the Corporate Governance Code, consisting of three independent non-executive directors[137]. - The audit committee reviewed and agreed with the management on the annual performance for the year ending December 31, 2023[137]. - The group's auditor, Ernst & Young, confirmed that the figures in the consolidated income statement and other comprehensive income, as well as the consolidated financial position, are consistent with the group's financial statements for the year[139]. Future Outlook - The company is focusing on building an innovative value-added service ecosystem, targeting both property and lifestyle services[67]. - The company aims to expand its market share and enhance its business layout in China, focusing on community value-added services which typically yield higher profit margins[73]. - The company continues to enhance its community value-added service offerings, which are expected to drive financial performance further[73]. - The estimated delivery and revenue generation time for uncompleted projects ranges from September 2024 to August 2031[76]. - The company is committed to a long-term strategy focused on high-quality development and customer value creation[72].

Company Growth and Expansion - As of June 30, 2023, the total contracted building area managed by the company reached approximately 38.7 million square meters, an increase of 1.9% compared to the same period last year[12]. - The number of properties under management increased to 228, up 12.9% from 2022, while the managed building area grew by 18.2% to approximately 26.0 million square meters[13]. - The company expanded its regional coverage to 36 cities, 9 provinces, 1 autonomous region, and 1 municipality as of June 30, 2023[16]. - The number of contracted management properties increased to 257, up from 250 in the previous year[13]. - The total number of signed projects increased to 257 with a signed building area of 38,689 thousand square meters as of June 30, 2023, compared to 250 projects and 37,969 thousand square meters in 2022, representing a growth of 2.8% in project count and 1.9% in building area[20]. - The company has signed property management service contracts for properties in various regions, including Chengdu, Urumqi, and Foshan, expanding its service coverage[21]. - The company reported a significant increase in the number of signed projects in Xinjiang, with 19 projects and a signed building area of 4,868 thousand square meters, compared to 24 projects in the previous year[20]. - The company is actively pursuing new property management contracts in various cities, including Zhangjiajie and Xuzhou, to enhance its market presence[21]. Revenue and Financial Performance - For the six months ended June 30, 2023, the total revenue of the company was approximately RMB 294.7 million, an increase of about 4.0% compared to RMB 283.3 million for the same period in 2022[40]. - Property management services remained the largest revenue source, contributing approximately RMB 250.8 million, accounting for 85.1% of total revenue, driven by an increase in managed building area[44]. - Community value-added services revenue grew by approximately RMB 6.6 million, or 39.7%, to about RMB 23.2 million, primarily due to increased income from renovation and move-in services[36]. - The management service revenue from projects developed by Landsea Holdings Group accounted for 67.1% of total revenue, amounting to RMB 168.3 million, up from RMB 150.3 million in the previous year[23]. - Non-owner value-added service revenue decreased by 51.8% year-on-year to approximately RMB 20.6 million, primarily due to a decline in sales office management and security service revenues, representing 7.0% of total revenue[34]. - Revenue for the six months ended June 30, 2023, was RMB 294,658,000, an increase of 4.6% compared to RMB 283,348,000 for the same period in 2022[90]. - Gross profit increased by 18.1% to approximately RMB 100.4 million, with a gross profit margin rising from 30.0% in 2022 to 34.1% in 2023[46]. - The company reported a profit attributable to owners of approximately RMB 53.9 million, an increase of about 17.1% compared to RMB 46.1 million in the same period of 2022[51]. Cost Management and Expenses - Administrative expenses decreased by approximately 13.3% to about RMB 24.5 million, mainly due to reduced professional intermediary fees and labor costs[48]. - Trade receivables increased by approximately RMB 17.8 million, or 15.5%, to about RMB 133.2 million, attributed to the expansion of the company's business scale[52]. - The company reported a decrease in financing cash flow net amount to RMB (245,000) for the six months ended June 30, 2023, compared to RMB (300,000) in the same period of 2022[105]. - The group’s management personnel compensation totaled RMB 302 thousand for the six months ended June 30, 2023, down from RMB 478 thousand in the same period of 2022, reflecting a decrease of approximately 36.8%[138]. Employee and Corporate Governance - As of June 30, 2023, the group had 4,731 employees, an increase from 4,405 employees as of December 31, 2022[66]. - The group plans to enhance its employee training programs, focusing on key operational areas and providing ongoing training for employees at various levels[66]. - The group has adopted a compensation policy similar to its peers, with performance bonuses awarded based on employee contributions[66]. - The company has complied with all applicable corporate governance codes during the reporting period[68]. - The group emphasizes integrity, accountability, transparency, independence, responsibility, and fairness in its corporate governance practices[68]. Strategic Plans and Investments - The net proceeds from the IPO amount to approximately HKD 278.0 million, with 70% allocated for strategic acquisitions and investments[80]. - The strategic acquisition and investment plan includes acquiring and investing in other property management companies, with a budget of HKD 194.6 million[81]. - The upgrade of the smart property management platform is budgeted at HKD 27.8 million, with HKD 27.1 million already allocated[81]. - The company is considering strategic acquisitions to enhance its market position, with a budget of RMB 200 million allocated for potential deals[149]. Market Outlook and Future Projections - The company provided a positive outlook, projecting a revenue growth of 25% for the next fiscal year[149]. - New product launches are expected to contribute an additional RMB 100 million in revenue by the end of 2023[149]. - Market expansion plans include entering two new regions, which are projected to increase user base by 30%[149]. - The company is investing in new technology development, allocating RMB 50 million for R&D in the upcoming year[149]. Financial Position and Assets - Total assets as of June 30, 2023, were RMB 1,274,903,000, compared to RMB 1,107,765,000 as of December 31, 2022[94]. - Cash and bank balances increased to RMB 386,370,000 from RMB 360,987,000 at the end of 2022[94]. - The company’s total equity as of June 30, 2023, was RMB 424,991,000, an increase from RMB 375,749,000 as of June 30, 2022, reflecting a growth of approximately 13.1%[101]. - The company’s cash and cash equivalents increased to RMB 386,270,000 as of June 30, 2023, up from RMB 306,985,000 at the end of June 2022, marking a growth of about 25.8%[105]. Compliance and Risk Management - The audit committee has reviewed the interim results and confirmed compliance with accounting principles and risk management practices[88]. - The company has confirmed that there are no significant changes to the planned use of proceeds as of the report date[83]. - The company has not reported any significant impact from the OECD's Pillar Two model rules, as it does not fall within the scope of these regulations[114].