Company Overview - Kaisa Prosperity Holdings Limited serves over 490,000 property units across 74 cities in China[3]. - The company manages a total gross floor area of 102.3 million square meters through 720 projects[5]. - Kaisa Prosperity has over 40 branch companies operating nationwide[3]. - The Group's management scale reached a new level with a gross floor area under management of 102.3 million square meters and 720 projects in 74 cities across 19 provinces[39]. Awards and Recognition - In 2023, Kaisa Prosperity was ranked 12th in the national comprehensive strength among property service companies[3]. - Kaisa Prosperity received the "2023 Leading Company in Property Service Satisfaction" award from CRIC Property Management[16]. - Kaisa Prosperity received multiple awards in 2023, including being ranked among the Top 20 Property Service Companies in China[27]. - The Group received multiple awards in 2023, including Top 100 Property Management Companies in China and Leading Companies in Property Service Satisfaction[40]. Financial Performance - In 2023, the Group's revenue increased by approximately RMB10.4 million to RMB1,794.3 million, representing a year-on-year increase of approximately 0.6%[44]. - Revenue from property management services amounted to RMB1,388.1 million, while revenue from community value-added services was RMB176.1 million[44]. - The gross profit for the year ended 31 December 2023 increased by approximately 2.2% to approximately RMB481.3 million from RMB471.1 million in 2022[45]. - The consolidated net loss for the year ended 31 December 2023 was approximately RMB437.6 million, compared to a net profit of approximately RMB106.6 million in 2022[45]. - Total revenue for the year ended December 31, 2023, increased by approximately 0.6% to about RMB 1,794.3 million compared to RMB 1,783.9 million for the year ended December 31, 2022[85]. - Gross profit for the year ended December 31, 2023, increased by approximately 2.2% to about RMB 481.3 million compared to RMB 471.1 million for the year ended December 31, 2022[85]. - The company reported a loss of approximately RMB 437.6 million for the year ended December 31, 2023, compared to a profit of approximately RMB 106.6 million for the year ended December 31, 2022[85]. Community and Customer Engagement - The company launched the "Prosperity FUN" community culture brand system, covering services for all age groups and scenarios[16]. - Under the "Jiarun Campaign," Kaisa Prosperity conducted 52,151 customer visits and provided 257,202 person-times of free convenience services[19]. - Kaisa Prosperity's community cultural activities aim to enhance the happiness of property owners through initiatives like the "Firefly Program" and "Starry Shining Community"[51]. - The company is focused on building a safe community by conducting emergency drills and equipping projects with AED facilities to improve safety awareness among residents[52]. - Kaisa Prosperity aims to create a "second growth curve" by expanding and deepening value-added services in property management[54]. Strategic Initiatives - The company has implemented a series of quality improvement actions to enhance customer experience and service standards[17]. - Kaisa Prosperity launched the K Series Living Exhibition Hall and Neighborhood Living Circle, creating a comprehensive, one-stop community service ecosystem[21]. - The Group's strategic focus on expanding cooperation with government platforms and urban services business is expected to enhance future growth prospects[106]. - The establishment of the K Series Living Exhibition Hall marks a significant milestone in exploring neighborhood living services, providing a one-stop service platform for residents[59]. Market Environment - China's GDP exceeded RMB 126 trillion in 2023, growing by 5.2% year-on-year, indicating a stable economic environment for property management[30]. - The property management industry experienced steady growth but faced a slowdown due to the upstream real estate sector's challenges[30]. - New government policies on urban renewal and affordable housing are expected to provide greater market opportunities for the property management industry[31]. - The central government issued policies that provide greater market space and guidance for the future development of the property management industry[35]. Operational Challenges - Provision for loss allowance on financial assets and contract assets surged by approximately 459.2% from approximately RMB125.0 million in 2022 to approximately RMB699.0 million in 2023, primarily due to the ongoing weakness in the real estate industry[161]. - The Group recorded a loss of approximately RMB437.6 million for the year, compared to a profit of approximately RMB106.6 million in 2022, mainly due to declining revenue in pre-delivery and consulting services[164]. - The decrease in revenue from pre-delivery and consulting services was primarily due to reduced demand from real estate developers influenced by national macroeconomic policies and market conditions[119]. Revenue Breakdown - Revenue from residential communities was RMB 677.5 million, accounting for 50.6% of total revenue, while non-residential properties generated RMB 660.6 million, making up 49.4%[108]. - The revenue from properties developed by independent third-party developers increased from approximately RMB 698.4 million in 2022 to approximately RMB 810.1 million in 2023, marking a growth of about 16%[115]. - The Group's property management services revenue from the lump-sum basis was RMB 1,283.5 million, representing 95.9% of total revenue, while commission basis revenue was RMB 54.6 million, or 4.1%[111]. Cost Management - Selling and marketing expenses rose by approximately 21.2% from approximately RMB10.4 million in 2022 to approximately RMB12.6 million in 2023, reflecting increased market expansion efforts[159]. - Administrative expenses decreased by approximately 17.2% from approximately RMB229.4 million in 2022 to approximately RMB189.9 million in 2023, due to optimized organizational structure and reduced staff costs[160]. Future Outlook - The Group is well-prepared for changes in the economic environment and aims to embrace future opportunities and challenges[41]. - The overall development trend of the Group's property management services is promising, supported by a reasonable layout of the property industry and competitive service offerings[115].

Financial Performance - Total revenue for the year ended December 31, 2023, increased by approximately 0.6% to approximately RMB 1,794.3 million from RMB 1,783.9 million for the year ended December 31, 2022[4]. - Gross profit for the year ended December 31, 2023, rose by about 2.2% to approximately RMB 481.3 million compared to RMB 471.1 million for the previous year[4]. - The company reported a loss of approximately RMB 437.6 million for the year ended December 31, 2023, compared to a profit of approximately RMB 106.6 million for the year ended December 31, 2022[4]. - The company’s operating loss for the year was approximately RMB 420.0 million, a significant decline from an operating profit of RMB 130.4 million in the previous year[6]. - The company’s basic and diluted loss per share for the year was RMB (2.92), compared to earnings per share of RMB 0.61 in the previous year[6]. - The group recorded a consolidated net loss of approximately RMB 437.6 million for the fiscal year ending December 31, 2023, compared to a net profit of approximately RMB 106.6 million for the fiscal year ending December 31, 2022[62]. - The annual loss for the group was approximately RMB 437.6 million, compared to a profit of approximately RMB 106.6 million for the year ended December 31, 2022, primarily due to the decline in revenue from pre-delivery and consulting services[118]. Revenue Breakdown - Property management services generated RMB 1,338,099 thousand in revenue, up 7.2% from RMB 1,248,191 thousand in 2022[21]. - Community value-added services revenue increased by 13.2% to RMB 176,065 thousand from RMB 155,495 thousand in 2022[21]. - Revenue from property management services for 2023 was RMB 1,338.1 million, up from RMB 1,248.2 million in 2022, reflecting an increase of about 7.2%[94]. - Revenue from community value-added services increased by 13.2% to approximately RMB 176.1 million in 2023, driven by an increase in the number of managed properties[103]. - Revenue from pre-delivery and consulting services decreased by approximately 35.1% to about RMB 155.8 million in 2023, down from RMB 239.9 million in 2022, primarily due to reduced demand from property developers[97]. - The revenue from intelligent solution services in 2023 was approximately RMB 124.3 million, a decrease of 11.4% compared to the previous year[107]. Asset and Liability Changes - Non-current assets decreased to RMB 927.0 million in 2023 from RMB 908.4 million in 2022[9]. - Current assets decreased to RMB 901.7 million in 2023 from RMB 1,340.3 million in 2022[9]. - Total liabilities increased to RMB 866.4 million in 2023 from RMB 811.4 million in 2022[9]. - The net asset value decreased to RMB 939,533 thousand in 2023 from RMB 1,396,762 thousand in 2022, representing a decline of 32.8%[10]. - The company's equity attributable to owners decreased to RMB 868,922 thousand in 2023 from RMB 1,334,151 thousand in 2022, a drop of 34.8%[10]. - Total trade receivables increased to RMB 1,286,943,000 in 2023 from RMB 1,100,822,000 in 2022, with a significant increase in related party receivables[47]. - The group's trade receivables decreased from approximately RMB 828.8 million in 2022 to approximately RMB 393.6 million in 2023, a reduction of approximately RMB 435.2 million, mainly due to the ongoing weakness in the Chinese real estate sector[125]. Operational Highlights - As of December 31, 2023, the total contracted construction area and total managed construction area were approximately 132.1 million square meters and 102.3 million square meters, respectively, representing a decrease of about 0.5% and an increase of about 8.2% compared to the previous year[4]. - The company managed to maintain a stable management scale, with managed area increasing to 1,023,000 square meters and the number of projects reaching 720, covering 74 cities across 19 provinces[59]. - The number of properties under management increased to 720 from 673 in the previous year, marking a growth of about 7%[86]. - The total managed building area reached 102.3 million square meters, an increase from 94.5 million square meters in 2022, representing a growth of approximately 8.5%[86]. - The number of new projects commissioned in 2023 was 152, compared to 107 in 2022, indicating a significant increase in new project acquisitions[91]. Strategic Initiatives - The company plans to continue expanding its property management services and enhance community value-added services in the upcoming year[21]. - The group is actively expanding its community service offerings through initiatives like the "K Life Exhibition Hall," which integrates various value-added services and aims to enhance community living experiences[71]. - Kaisa Group aims to enhance service quality and expand its value-added service chain, focusing on community elderly care and smart home renovations[82]. - The company is expanding its community value-added services ecosystem, integrating online and offline services through the "Neighborhood Life Circle" initiative[103]. Governance and Compliance - The board has decided not to declare a final dividend for the year ended December 31, 2023[40]. - The audit committee has reviewed the financial performance for the year ending December 31, 2023, ensuring compliance with internal controls and risk management[141]. - The company has adopted the corporate governance code as per the Hong Kong Stock Exchange's listing rules, maintaining high standards of corporate governance throughout the reporting period[139]. - There are no significant post-balance sheet events disclosed as of the announcement date[138].

Company Performance - The Group's revenue for the six months ended June 30, 2023, decreased by approximately RMB 17.1 million to RMB 880.0 million, representing a decrease of approximately 1.9% compared to the same period in 2022[22]. - Gross profit for the same period increased by approximately 9.5% to approximately RMB 245.3 million from approximately RMB 224.1 million in the prior year[23]. - The consolidated net loss for the six months ended June 30, 2023, was approximately RMB 96.9 million, compared to a net profit of approximately RMB 56.2 million for the same period in 2022[24]. - Excluding the effect of impairment provision for trade receivables from related parties, the Group recorded a consolidated net profit of approximately RMB 76.8 million for the six months ended June 30, 2023[24]. - For the six months ended June 30, 2023, total revenue decreased by approximately 1.9% to approximately RMB 880.0 million from RMB 897.1 million for the same period in 2022[95]. Service Expansion and Development - Kaisa Prosperity has implemented a dual-wheel drive strategy of "organic growth + independent expansion" to enhance its competitiveness and service capability[17]. - The Group is focused on expanding its service chains and enhancing foundational services to improve customer experience and community living[29]. - The Group's property service portfolios now cover residential, commercial, and cultural tourism properties, enhancing brand value and market expansion[25]. - The Group aims to extend and broaden its value-added service chain to create a second growth curve, focusing on quality services for steady expansion[46]. - The Group launched the "K Series Living Exhibition Hall" in Guangzhou on June 30, 2023, to enhance community living services and create a 15-minute convenient urban living circle[34]. Financial Overview - Revenue from pre-delivery and consulting services for the six months ended June 30, 2023, was approximately RMB 81.1 million, representing a decrease of about 42.4% compared to RMB 140.8 million for the same period in 2022[77]. - Revenue from community value-added services increased by approximately 26.6% to approximately RMB 93.0 million, up from RMB 73.4 million in the prior year, primarily due to the lessening impact of the COVID-19 pandemic[102]. - Revenue from property management services increased by approximately 4.9% to approximately RMB 648.9 million, up from RMB 618.7 million, driven by an increase in the total GFA under management[99]. - Direct operating expenses decreased by approximately 5.7% to approximately RMB 634.7 million from RMB 673.1 million, primarily due to reduced business scale in pre-delivery and consulting services and smart solution services[104]. - The overall gross profit margin increased by approximately 2.9 percentage points from approximately 25.0% for the six months ended June 30, 2022, to approximately 27.9% for the six months ended June 30, 2023[109]. Management and Strategy - Kaisa Prosperity's management scale has reached a new level, with the Gross Floor Area (GFA) under management officially exceeding 100 million square meters, covering 68 cities across 17 provinces and managing 699 projects[17]. - The company aims to embrace future opportunities and challenges while adhering to its development vision of "Serving Beautiful China" in response to significant changes in the economic environment[18]. - The management has focused on high-quality development, actively participating in community renovation and new energy infrastructure maintenance to meet market demand[12]. - The company has established a quality approach centered on sincerity, rigor, pragmatism, and efficiency to continuously improve service quality and brand recognition[16]. - The Group's strategic focus is on transforming into a holistic management services provider, aiming for comprehensive high-quality development[46]. Market and Economic Context - The first half of 2023 saw a restorative growth in the PRC's macro-economy, with the real estate industry reaffirmed as a pillar of the economy, emphasizing housing for living rather than speculation[12]. - The Central Government's policies have supported rigid and improvement-oriented housing demand, ensuring project delivery and stability in the real estate sector[12]. - The property management industry is characterized by "rigid demand + long cycle," presenting significant development potential in the after-sales market of real estate[45]. - Jiake Intelligent has established a strong footprint in key economic regions, including the Guangdong-Hong Kong-Macau Bay Area and Yangtze River Delta, enhancing its service offerings[52]. Employee and Governance - The Group employed 12,361 employees as of June 30, 2023, an increase from 12,159 employees at the end of 2022[161]. - The Company has complied with all applicable provisions of the Corporate Governance Code during the review period[168]. - The Board resolved not to recommend any interim dividend for the six months ended June 30, 2023, consistent with the previous year[179]. Share Option Scheme - The Company has adopted a Share Option Scheme to grant options to eligible participants, aimed at enhancing contributions to the Group[184]. - No options were granted under the Share Option Scheme during the six months ended June 30, 2023[187]. - The maximum number of Shares that may be granted to any Eligible Participant under the Share Option Scheme shall not exceed 1% of the number of Shares in issue in any 12-month period[191].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告之內容概不 負責，對其準確性或完整性亦不發表任何聲明，並明確表示概不就因本公告全 部或任何部份內容而產生或因依賴該等內容而引致之任何損失承擔任何責任。 Kaisa Prosperity Holdings Limited 佳 兆 業 美 好 集 團 有 限 公 司 （於開曼群島註冊成立的有限公司） （股份代號：2168） 截 至2023年6月30日 止 六 個 月 的 中 期 業 績 公 告 中期業績摘要 (cid:129) 2023 6 30 2022 6 30 截至 年 月 日止六個月的總收益較截至 年 月 日止六個月約 897.1 1.9% 880.0 人民幣 百萬元減少約 至約人民幣 百萬元。 (cid:129) 2023 6 30 2022 6 30 截至 年 月 日止六個月的毛利由截至 年 月 日止六個月的約 224.1 9.5% 245.3 人民幣 百萬元增加約 至約人民幣 百萬元。 (cid:129) 2023 6 30 96.9 2022 截至 年 月 日止六個月的虧損為約人民幣 百萬元，而截至 6 30 56.2 年 月 日止六個月則為 ...

Company Performance - For the year ended December 31, 2022, the Group's revenue decreased by approximately RMB882.6 million to RMB1,783.9 million, representing a decrease of approximately 33.1% compared to 2021[50]. - The net profit for the year increased by approximately RMB38.5 million to RMB106.6 million, representing an increase of approximately 56.5% compared to the previous year[51]. - Profit attributable to owners of the Company increased by approximately RMB36.6 million to RMB93.4 million, reflecting an increase of approximately 64.4% compared to 2021[51]. - Total revenue for the year ended December 31, 2022, decreased by approximately 33.1% to approximately RMB1,783.9 million from approximately RMB2,666.4 million for the year ended December 31, 2021[82]. - Profit for the year ended December 31, 2022, increased by approximately 56.5% to approximately RMB106.6 million from approximately RMB68.1 million for the year ended December 31, 2021[82]. - Profit attributable to owners of the Company for the year ended December 31, 2022, increased by approximately 64.4% to approximately RMB93.4 million from approximately RMB56.8 million for the year ended December 31, 2021[83]. Revenue Breakdown - Revenue from property management services amounted to RMB1,248.2 million, while revenue from pre-delivery and consulting services was RMB239.9 million, community value-added services was RMB155.5 million, and smart solution services was RMB140.3 million[50]. - Revenue from property management services for the year ended December 31, 2022, was RMB 1,248.19 million, an increase from RMB 1,196.47 million in 2021, reflecting a growth of approximately 4.3%[104]. - Revenue from properties developed by independent third-party developers increased from approximately RMB 666.9 million in 2021 to approximately RMB 698.4 million in 2022, marking an increase of about 4.7%[110]. - Revenue from pre-delivery and consulting services decreased by approximately 77.6% to RMB239.9 million, accounting for 13.4% of total revenue, down from RMB1,072.1 million in 2021[115]. - Revenue from community value-added services amounted to approximately RMB155.5 million, representing a decrease of 14.6% due to the impact of the COVID-19 pandemic[132]. - Revenue from smart solution services decreased by approximately 35.0% from approximately RMB215.7 million in 2021 to approximately RMB140.3 million in 2022[148]. Market Position and Recognition - Kaisa Prosperity ranked 12th in the national comprehensive strength among property service companies[3]. - In 2022, Kaisa Prosperity was recognized as the 9th in community value-added service capabilities among listed property management companies in China[19]. - The company was awarded as the leading company in property service satisfaction in 2022 by CRIC Property Management[20]. - The company received multiple awards in 2022, including recognition as one of the top 100 property management companies in China and for its excellence in ESG development[31][30]. Strategic Initiatives - The company aims to transition from a "spatial resource provider" to a "space operation service provider," reflecting a strategic shift in its business model[24][25]. - The Group's operational principle for 2022 was "Strengthening Foundation, Reducing Cost and Increasing Revenue," while maintaining service quality and controlling risks[52]. - The Group aims to enhance its core competitiveness and become a comprehensive community operation service provider with first-class standards[76]. - The Group's strategic focus includes expanding cooperation with government platforms and urban services business, particularly in regions like Guangxi and Handan[102]. Community Engagement and Social Responsibility - The company organized 62 charity activities under the "Firefly Plan," engaging 17,000 participants and supporting large-scale epidemic prevention and disaster relief five times throughout the year[28][29]. - Kaisa Prosperity's commitment to social responsibility is demonstrated through its extensive public welfare activities, encouraging employee participation and community engagement[28][29]. Operational Metrics - The company operates 673 projects with a total management area of 94.5 million square meters[6]. - Kaisa Prosperity serves nearly 400,000 property units across 65 cities in China[7]. - As of December 31, 2022, the total contracted GFA and the total GFA under management amounted to approximately 132.7 million sq.m. and 94.5 million sq.m., representing increases of approximately 4.6% and 4.7%, respectively, compared to the previous year[84]. - The Group's property management services covered 65 cities across 17 provinces, with a total GFA under management reaching 94.5 million sq.m. and a total of 673 managed property projects[89]. Financial Health - As of December 31, 2022, the Group's cash and bank balances were approximately RMB247.3 million, a decrease of approximately RMB110.7 million from RMB358.0 million as of December 31, 2021[169][173]. - The Group's net current assets increased by approximately RMB79.2 million from RMB449.6 million as of December 31, 2021, to approximately RMB528.8 million as of December 31, 2022, with a current ratio of approximately 1.65[169][174]. - Trade receivables increased by approximately RMB90.3 million from RMB738.5 million as of December 31, 2021, to approximately RMB828.8 million as of December 31, 2022, primarily due to an increase in property management services and related party receivables[179][182]. - The Group recorded goodwill of approximately RMB160.8 million as of December 31, 2022, unchanged from the previous year, with no indication of impairment[171][177]. Challenges and Market Outlook - The property management industry in China faced significant challenges in 2022, with many companies experiencing liquidity risks and a need to adjust their development paths towards quality services and long-term strategies[36][37]. - The overall economic and market conditions are expected to improve, with the property management industry continuing its rapid growth trend[73]. - The overall economic and market situation is expected to gradually improve with the relaxation of COVID-19 pandemic control measures and the release of favorable policies[75].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告之內容概不 負責，對其準確性或完整性亦不發表任何聲明，並明確表示概不就因本公告全 部或任何部份內容而產生或因依賴該等內容而引致之任何損失承擔任何責任。 Kaisa Prosperity Holdings Limited 佳 兆 業 美 好 集 團 有 限 公 司 （於開曼群島註冊成立的有限公司） （股份代號：2168） 截 至2022年12月31日 止 年 度 的 經 審 核 年 度 業 績 年度業績摘要 • 截至2022年12月31日止年度的總收益較截至2021年12月31日止年度約人 民幣2,666.4百萬元減少約33.1%至約人民幣1,783.9百萬元。 • 截至2022年12月31日止年度的年度溢利較截至2021年12月31日止年度約 人民幣68.1百萬元增加約56.5%至約人民幣106.6百萬元。 • 截至2022年12月31日止年度的本公司擁有人應佔溢利由截至2021年12月 31日止年度約人民幣56.8百萬元增加約64.4%至約人民幣93.4百萬元。 • 於2022年12月31日，總合同建築面積及總在管建築面積分別為約132.7百 萬平方米 ...

Financial Performance - Kaisa Prosperity Holdings reported unaudited consolidated results for the six months ended June 30, 2022, amidst unprecedented challenges in the property management industry in China [10]. - The Group's total revenue for the six months ended June 30, 2022, decreased by approximately 32.3% to approximately RMB 897.1 million from approximately RMB 1,325.0 million for the same period in 2021 [20]. - Net profit for the six months ended June 30, 2022, decreased by approximately 74.0% to approximately RMB 56.2 million from approximately RMB 216.5 million for the same period in 2021 [21]. - Revenue from property management services amounted to approximately RMB 618.7 million, while revenue from pre-delivery and consulting services was approximately RMB 140.8 million [20]. - Revenue from pre-delivery and consulting services for the six months ended June 30, 2022, was approximately RMB 140.8 million, accounting for 15.6% of total revenue, a significant decrease of 74.5% compared to RMB 552.5 million for the same period in 2021 [79][80]. - Total revenue from community value-added services was approximately RMB 73.4 million, representing a decrease of 24.8% year-over-year, primarily due to the impact of the COVID-19 pandemic [90][92]. - The overall gross profit decreased by approximately 48.2% from approximately RMB 432.3 million for the six months ended June 30, 2021, to approximately RMB 224.1 million for the six months ended June 30, 2022 [117]. - The overall gross profit margin decreased by approximately 7.6 percentage points from approximately 32.6% for the six months ended June 30, 2021, to approximately 25.0% for the six months ended June 30, 2022 [117]. - Profit and total comprehensive income decreased by approximately 74.0% from approximately RMB 216.5 million to approximately RMB 56.2 million [130]. Strategic Initiatives - The company launched a "Quality Rejuvenation" campaign to enhance community living experiences and property service quality through the "Satisfaction + Surprise" service strategies [16]. - Kaisa Prosperity aims to expand its presence in key regions such as the Guangdong-Hong Kong-Macau Bay Area and Yangtze River Delta, while also targeting breakthroughs in the Beijing-Tianjin-Hebei region and Central China [17]. - The company emphasizes the importance of maintaining service quality and operational capabilities, aligning with the vision of "Serving Beautiful China" and integrating into primary-level social governance [16]. - Kaisa Prosperity is actively seeking equity partners to innovate cooperation plans and explore both capital and non-capital investment opportunities [17]. - The Group aims to enhance urban governance and service quality in line with the "14th Five-Year Plan" by seeking strategic cooperation with private enterprises and government platforms [30]. - The Group's strategic focus includes deepening regional expansion and enhancing communication and cooperation across different regions [18]. - The Group's four main business lines include property management services, pre-delivery and consulting services, community value-added services, and smart solution services, covering the entire value chain of property management [50]. Operational Challenges - The ongoing COVID-19 pandemic has increased costs and difficulties in on-site services and marketing activities, impacting business execution [12]. - The management team has proactively adjusted strategies to maintain resilience in the value-added business segment despite challenges from the COVID-19 pandemic and changes in the real estate industry [38]. - The Group's diversified portfolio includes mid-to-high-end residential communities and non-residential properties, such as commercial properties and industrial parks [62]. Market Presence and Expansion - As of June 30, 2022, the Group's property management services covered 58 cities across 17 provinces, with a total GFA under management reaching 93.0 million sq.m. and a total of 657 managed properties [52]. - The contracted GFA as of June 30, 2022, was 121,177,000 sq.m., a decrease from 126,894,000 sq.m. as of December 31, 2021 [55]. - The GFA under management increased from 90,267,000 sq.m. as of December 31, 2021, to 93,034,000 sq.m. as of June 30, 2022 [55]. - The number of managed properties decreased from 672 as of December 31, 2021, to 657 as of June 30, 2022 [55]. - The Group successfully won all public tenders for properties developed by Kaisa Group during the six months ended June 30, 2022, enhancing cooperation with independent third-party property developers [73]. Employee and Governance - As of June 30, 2022, the Group had 12,630 employees, with total staff costs approximately RMB 432.2 million for the six months ended June 30, 2022 [154]. - The Audit Committee reviewed the Group's accounting policies and the Interim Report 2022, with the independent auditor not auditing but reviewing the unaudited interim results [166]. - The Company has adopted the Model Code for Securities Transactions by Directors and confirmed compliance by all Directors during the review period [167]. - The Board has resolved not to recommend the payment of any interim dividend for the six months ended 30 June 2022, consistent with the previous year [175]. Share Option Scheme - The total number of Shares available for issue under the Share Option Scheme is 14,000,000 Shares, representing approximately 9.1% of the total number of 154,110,000 Shares in issue as at the date of this report [183]. - No options were granted under the Share Option Scheme during the six months ended 30 June 2022 [183]. - The Share Option Scheme will remain valid until June 18, 2029, after which no further options shall be offered [197]. - The Share Option Scheme is designed to incentivize key personnel and align their interests with those of the shareholders [197].

Company Overview - Kaisa Prosperity Holdings ranked 12th in the national comprehensive strength among property service companies[2]. - The company manages 672 projects with a total gross floor area of 90.3 million square meters, serving approximately 400,000 property units nationwide[2]. - Kaisa's brand valuation is estimated at RMB 6.4 billion[2]. - The company operates over 40 branch companies across 58 cities[2]. - The company managed 672 projects across 58 cities, serving approximately 352,000 households[23]. - As of December 31, 2021, Kaisa Group operates in 58 cities with a total of 672 managed projects covering an area of 90.27 million square meters[146]. - The company employs over 10,000 staff and provides services to more than 400,000 property units across various sectors including high-end communities and commercial complexes[146]. Financial Performance - The company reported a revenue increase of approximately RMB 936.3 million to RMB 2,666.4 million in 2021, representing a growth of about 54.1% compared to 2020[30]. - Total revenue for the year ended December 31, 2021, increased by approximately 54.1% to about RMB 2,666.4 million from RMB 1,730.1 million for the year ended December 31, 2020[42]. - Adjusted profit attributable to the owners of the company was approximately RMB 288.8 million, an increase of 13.9% compared to RMB 253.5 million in 2020[30]. - Gross profit for the year ended December 31, 2021, rose by approximately 49.5% to about RMB 788.9 million, with a gross margin of approximately 29.6%, compared to 30.5% for the previous year[42]. - Revenue from property management services reached RMB 1,196,469 thousand in 2021, compared to RMB 793,776 thousand in 2020, marking a growth of approximately 50.8%[55]. - Revenue from pre-delivery and consultancy services was approximately RMB 1,072.1 million in 2021, accounting for about 40.2% of total revenue, up 72.0% from RMB 623.3 million in 2020[61]. - Community value-added services generated revenue of RMB 182.2 million in 2021, a year-on-year increase of about 34.6%, with parking lot revenue at RMB 61.8 million, up approximately 16.7%[65]. - Smart solution services revenue reached approximately RMB 215.7 million in 2021, a year-on-year growth of 21.3%, with a gross profit of about RMB 74.0 million, up 35.9%[68]. Business Expansion and Services - Kaisa's new product "Xiao K Life" was launched in June 2021, upgrading its product system across multiple sectors[18]. - The company expanded its smart services into 13 new cities, including its first entry into the northwest region of China[19]. - The company aims to expand its services in the Greater Bay Area and key economic circles, focusing on community elderly care and childcare services due to demographic trends[27][28]. - The company has upgraded its value-added service brand, successfully establishing the "Little K" lifestyle service system[28]. - The company plans to enhance its service offerings by integrating residential and non-residential service portfolios to maintain sustainable development[31]. - The company has strengthened its partnerships with state-owned enterprises and stable private companies to expand into second and third-tier cities[31]. Community Engagement and Social Responsibility - Kaisa conducted approximately 1,148 community cultural activities and 996 convenience activities, engaging over 130,000 participants throughout the year[18]. - The company organized 59 public welfare events under the "Firefly Project," with participation from 17,000 individuals[24]. - The company received over 90 written commendations from government departments and property owners for its pandemic response efforts[23]. - Kaisa Group actively donated epidemic prevention materials, contributing to community health and safety during the pandemic[138]. - The company emphasizes the integration of new technologies such as 5G and IoT in developing smart community solutions[139]. Environmental, Social, and Governance (ESG) Initiatives - The report covers the performance of Kaisa Group Holdings Limited in environmental, social, and governance (ESG) aspects for the year 2021, with a focus on sustainability progress and direction[126]. - Kaisa Group has established an ESG framework to manage environmental, social, and governance risks, with the board responsible for setting strategies and monitoring performance[150]. - The company aims to create long-term value for stakeholders while maintaining high service quality and operational standards[149]. - Kaisa Group continues to focus on sustainable development, implementing energy-saving measures and waste recycling programs[149]. - The total greenhouse gas emissions for the reporting period amounted to 122,337.76 tons of CO2 equivalent, with direct emissions at approximately 996.99 tons and indirect emissions at about 120,492.68 tons[169]. - The company has set a target to reduce CO2 equivalent emissions by 10% over five years, achieving a reduction of approximately 3% to date[169]. - The group is actively transitioning to a low-carbon operational model to meet tenant and customer expectations[187]. Employee Management and Development - The group employed 12,871 employees as of December 31, 2021, an increase from 8,564 employees in the previous year[110]. - The company has implemented various employee benefits, including holiday allowances during major festivals, with each employee receiving festival bonuses during Spring Festival, Dragon Boat Festival, and Mid-Autumn Festival[191]. - The company reported zero fatalities due to work-related incidents in 2021, with only 13 workdays lost due to work-related injuries[195]. - The company emphasizes employee training, with a structured training management system aimed at enhancing skills and career development, including new employee training and management skills improvement[198]. - The company has established a performance evaluation system to determine employee promotions, which is based on regular performance assessments[189]. - The company prioritizes employee development and training opportunities to foster a competitive work environment[158]. Leadership and Governance - Kaisa Group has a diverse leadership team with extensive experience in finance, management, and real estate, enhancing its operational capabilities[116][117][118][119][120][121][122][123]. - The company continues to strengthen its governance structure by appointing independent directors with significant industry experience[118][119][120].

Financial Performance - The total revenue for the year ended December 31, 2021, was RMB 2,666,440 thousand, an increase of 42.8% compared to RMB 1,730,149 thousand in 2020[5] - Gross profit for the year was RMB 788,899 thousand, up 49.5% from RMB 527,639 thousand in the previous year[5] - Operating profit increased to RMB 392,746 thousand, representing a growth of 24.5% from RMB 315,442 thousand in 2020[5] - The net profit attributable to the owners of the company was RMB 56,806 thousand, a decrease of 74.3% compared to RMB 221,951 thousand in 2020[5] - Basic earnings per share decreased to RMB 0.37 from RMB 1.51 in the previous year, reflecting a decline of 75.5%[5] - The total profit attributable to the company's owners for 2021 was RMB 56,806,000, a decrease of 74.3% compared to RMB 221,951,000 in 2020[47] - The basic earnings per share for 2021 was RMB 0.37, down 75.5% from RMB 1.51 in 2020[47] - The diluted earnings per share for 2021 was RMB 0.36, a decline of 75.7% from RMB 1.48 in 2020[48] - Annual profit and total comprehensive income decreased from approximately RMB 229.5 million in 2020 to approximately RMB 68.1 million in 2021, a decline of about 70.3%[135] Revenue Breakdown - Property management services generated revenue of RMB 1,196,469,000 in 2021, up from RMB 793,776,000 in 2020, reflecting a growth of about 51%[25] - The community value-added services segment reported revenue of RMB 182,164,000 in 2021, an increase from RMB 135,308,000 in 2020, marking a growth of around 35%[25] - The smart solutions services segment generated revenue of RMB 215,660,000 in 2021, up from RMB 177,779,000 in 2020, reflecting a growth of approximately 21%[25] - Revenue from pre-delivery and consulting services was approximately RMB 1,072.1 million, accounting for 40.2% of total revenue, a 72.0% increase from RMB 623.3 million in 2020[104] - Revenue from properties developed by independent third-party developers was RMB 666,861 thousand, representing 55.7% of total revenue[102] Assets and Liabilities - Total assets as of December 31, 2021, were RMB 1,325,557 thousand, down from RMB 1,829,995 thousand in 2020[7] - Current liabilities increased to RMB 875,963 thousand from RMB 659,421 thousand in 2020, indicating a rise of 32.8%[7] - Non-current assets, including property, plant, and equipment, rose to RMB 25,131 thousand from RMB 18,888 thousand in 2020, an increase of 32.5%[7] - The total future cash outflow for leases as of December 31, 2021, was RMB 1,705,000 thousand, compared to RMB 442,000 thousand in 2020, reflecting a substantial rise of 285.1%[70] - The net current assets decreased from approximately RMB 1,170.6 million to RMB 449.6 million, with a current ratio of approximately 1.51 times as of December 31, 2021, down from 2.78 times in the previous year[139] Operational Highlights - The company has been focusing on expanding its property management services, including maintenance and community management[16] - The company aims to enhance its service levels and maintain customer satisfaction by adjusting the ratio of residential and non-residential portfolios, thereby expanding its diversified business layout[79] - The company has established a comprehensive service portfolio covering high-end communities, commercial complexes, and public services, focusing on key regions and sectors for development[80] - The company is preparing to meet future opportunities and challenges in the property management industry, aligning with the vision of "Service • Beautiful China"[75] - The company has committed to enhancing property management services and intelligent solutions, focusing on the Guangdong-Hong Kong-Macao Greater Bay Area and expanding into the Yangtze River Delta and Bohai Economic Circle[75] Market Expansion - The group has established property management services covering 58 cities across 17 provinces, with a total managed building area of 90.27 million square meters and managing 672 properties, including 300 residential communities and 372 non-residential properties[91] - The total contracted building area increased from 77.29 million square meters in 2020 to 126.89 million square meters in 2021, representing a growth of approximately 64%[91] - The group reported a strong market expansion momentum, with significant growth in the Yangtze River Delta region, where the managed building area increased from 27.54 million square meters in 2020 to 53.74 million square meters in 2021[93] - The total number of managed properties increased from 435 in 2020 to 672 in 2021, reflecting a growth of approximately 55%[91] Employee and Governance - The employee count increased to 12,871 as of December 31, 2021, up from 8,564 a year earlier, reflecting growth in operations[163] - The company maintained high standards of corporate governance, adhering to all provisions of the corporate governance code as of December 31, 2021, with the exception of the separation of roles between the Chairman and CEO[166] - The audit committee, consisting of three independent non-executive directors, reviewed the annual performance for the reporting year[172] Cash Flow and Financing - Cash and bank balances as of December 31, 2021, were approximately RMB 358.0 million, a decrease of approximately RMB 660.8 million from RMB 1,018.8 million as of December 31, 2020[139] - The company continues to manage its cash and cash equivalents prudently to ensure readiness for future growth opportunities[142] - The company raised approximately HKD 451.54 million from the placement of 14,000,000 shares at HKD 32.55 per share, netting HKD 32.21 per share after commissions and expenses[153] Challenges and Strategic Adjustments - The company faced significant challenges in 2021 due to the pandemic and market cooling, impacting operational independence and requiring strategic adjustments[73] - The company is focusing on ensuring market competitiveness to meet growth demands while navigating external uncertainties in the property service sector[73] - The company believes the property service industry is still in the early stages of rapid development and will gradually shift from management to service[86]

Financial Performance - For the six months ended June 30, 2021, the group's operating revenue increased by approximately RMB 584.0 million to RMB 1,325.0 million, representing a growth of about 78.8% compared to the same period in 2020[14]. - The group recorded a consolidated net profit growth of approximately RMB 93.3 million to RMB 216.5 million, reflecting an increase of about 75.7% year-on-year[14]. - Profit attributable to the company's owners increased by approximately RMB 90.0 million to RMB 209.1 million, marking a growth of about 75.6% compared to the previous year[14]. - The company's total revenue increased from approximately RMB 741.0 million for the six months ended June 30, 2020, to approximately RMB 1,325.0 million for the six months ended June 30, 2021, representing a growth of about 78.8%[51]. - Revenue for the period reached RMB 1,324,969 thousand, a significant increase from RMB 740,998 thousand in the previous period, representing an increase of approximately 78.7%[157]. - Gross profit amounted to RMB 432,273 thousand, compared to RMB 250,503 thousand, reflecting a growth of about 72.5%[157]. - Operating profit was reported at RMB 313,781 thousand, up from RMB 157,605 thousand, indicating an increase of approximately 99.2%[157]. - Profit before tax was RMB 292,165 thousand, compared to RMB 161,313 thousand, marking an increase of around 81.1%[157]. - Net profit attributable to the owners of the company was RMB 209,115 thousand, up from RMB 119,093 thousand, which is an increase of approximately 75.5%[157]. - Basic earnings per share increased to RMB 1.36 from RMB 0.85, representing a growth of about 60%[157]. Revenue Breakdown - Property management service revenue was approximately RMB 565.2 million, while pre-delivery and consulting service revenue was about RMB 552.5 million[14]. - Revenue from property management services rose from approximately RMB 364.8 million to approximately RMB 565.2 million, marking an increase of about 54.9% due to internal growth and acquisitions[53]. - Revenue from pre-delivery and consulting services surged from approximately RMB 243.9 million to approximately RMB 552.5 million, reflecting a growth of about 126.5% driven by ongoing projects from existing clients and new third-party developers[53]. - Community value-added services revenue grew by approximately 64.7%, reaching about RMB 97.6 million, attributed to an increase in managed properties and enhanced service offerings[54]. - Smart solutions service revenue increased by approximately 50.2%, from about RMB 73.0 million to approximately RMB 109.6 million, due to the expansion of new client contracts[57]. Operational Expansion - The group aims to deepen its presence in the Guangdong-Hong Kong-Macao Greater Bay Area and expand into the Yangtze River Delta, Bohai Economic Rim, and Chengdu-Chongqing Economic Circle[11]. - The contracted building area increased significantly to 120.9 million square meters from 77.3 million square meters in the previous year, indicating strong market expansion[27]. - As of June 30, 2021, the total managed building area reached 86.3 million square meters, with a total of 649 properties managed, including 278 residential communities and 371 non-residential properties[25]. - The managed building area in the Guangdong-Hong Kong-Macao Greater Bay Area increased to 16,302 thousand square meters with 90 projects, compared to 14,563 thousand square meters with 78 projects in December 2020, marking a growth of 11.9%[32]. - The Yangtze River Delta region saw a significant increase in managed area to 53,798 thousand square meters with 480 projects, up from 27,536 thousand square meters with 285 projects, indicating a growth of 95.1%[32]. Strategic Initiatives - The group is focusing on high-standard property services and the extensive application of intelligent products as core strategies[11]. - The group has upgraded its value-added services brand and established a comprehensive community living service system[11]. - The company aims to diversify its acquisition strategy by prioritizing property companies with multi-business portfolios and investing in high-potential upstream and downstream targets[17]. - The company plans to enhance collaboration with independent third-party property developers, increasing the proportion of such properties in its portfolio[40]. - The company plans to leverage synergies with its parent company to enhance project delivery and expand its business scale over the next five years[21]. Cost and Expenses - Direct operating expenses rose from approximately RMB 490.5 million to approximately RMB 892.7 million, an increase of about 82.0%, primarily due to internal growth and acquisitions[58]. - Sales and marketing expenses rose from approximately RMB 3.3 million to approximately RMB 4.9 million, an increase of about 48.5%, due to enhanced market expansion efforts[66]. - Administrative expenses increased from approximately RMB 90.4 million to approximately RMB 113.1 million, a growth of about 25.1%, which was lower than the revenue growth rate due to effective cost control measures[67]. Financial Position - As of June 30, 2021, the cash and bank balance was approximately RMB 970.3 million, a decrease of about RMB 48.5 million from RMB 1,018.8 million as of December 31, 2020, mainly due to payments related to acquisitions[73]. - The company's debt-to-equity ratio was zero as of both June 30, 2021, and December 31, 2020, indicating no interest-bearing borrowings[94]. - The company reported a net cash position of RMB 970,265 thousand, down from RMB 1,018,807 thousand, indicating a decrease of about 4.8%[160]. - The total assets as of June 30, 2021, were RMB 1,998,572 thousand, compared to RMB 1,829,995 thousand at the end of 2020, reflecting an increase of approximately 9.2%[160]. Corporate Governance - The board believes that high standards of corporate governance are essential for protecting shareholder interests and enhancing corporate value[102]. - The audit committee has reviewed the interim report for the six months ended June 30, 2021, ensuring compliance with financial reporting standards[105]. - The company has adopted a share option scheme to incentivize eligible participants and retain talent for long-term development[112]. Shareholder Information - Major shareholder Kaisa Group Holdings Limited holds 104,251,250 shares, accounting for 67.65% of the company's issued share capital[149][3]. - As of June 30, 2021, a total of 2,010,000 stock options were exercisable[137]. - The total number of shares issued as of June 30, 2021, was 154,110,000, with key executives holding a combined total of 2,700,000 shares, representing approximately 1.75% of the issued shares[144][1].