7月4日，"格隆汇·中期策略峰会·2025"于深圳盛大开幕。其中"格隆汇·金格奖"ESG卓越公司评选中，第四范式 （06682.HK）、晋景新能（01783.HK）、康桥悦生活（02205.HK）、平安好医生（01833.HK）、瑞声科技 （02018.HK）、首程控股（00697.HK）、通威股份（600438.SH）、药师帮（09885.HK）、招金矿业（01818.HK）、 中国春来（01969.HK）、中国再保险（01508.HK）、中核国际（02302.HK）12家企业荣获"ESG可持续发展卓越企 业"奖项。（排名不分先后，按公司首部字母顺序排列） 格隆汇以"全球视野，下注中国"为初衷，本次评选旨在打造出投资圈中在ESG领域最具参考价值的卓越公司排行榜。 此次"格隆汇金格奖"ESG卓越公司评选覆盖港交所、上交所、深交所、纽交所、美国证券交易所、纳斯达克证券交易 所挂牌上市的全部上市公司及优质公司项目。 "ESG可持续发展卓越企业"奖项旨在嘉奖在环境、社会、治理三大维度全面布局，积极推进绿色转型，深度赋能社会 责任，以透明治理引领行业高质量发展，为实现中国 "双碳" 目标贡献力量，为资本市场树立长期价 ...

Core Insights - The year 2025 marks a pivotal moment in human civilization, with a structural economic recovery and a reconfiguration of global order driven by technological revolutions and capital flows [1][2][3] Event Summary - The "Gelonghui Mid-term Strategy Summit 2025" will be held on July 4-5, 2025, at the Shangri-La Hotel in Nanshan, Shenzhen, featuring discussions on the future of China's capital market and various investment opportunities [4] - The summit will include the release of the "Gelonghui Golden Award" ESG Excellence List, aimed at creating a reference for outstanding ESG companies across Hong Kong, US, and A-share markets [4] ESG Awards - The ESG Sustainable Development Excellence Companies include Fourth Paradigm, Jin Jing New Energy, and Ping An Good Doctor among others [4] - The ESG Environmentally Friendly Excellence Companies list features TCL Electronics, Bosideng, and SF Express among others [5] - The ESG Social Responsibility Excellence Companies include Kangchen Pharmaceutical, Lenovo Group, and China Feihe among others [6] - The ESG Corporate Governance Excellence Companies list features Dongfang Risheng, Longfor Group, and China Merchants Commercial Real Estate among others [7] - The ESG Innovation Practice Excellence Companies include Beijing Gas Blue Sky, Meitu, and Ctrip among others [8] - The ESG Information Disclosure Excellence Companies list features TCL Technology, Jiangyin International, and Yili among others [9] ESG Projects and Teams - Notable ESG projects include BYD's Super e-platform and Ningde Times' Qiji Battery Swap Solution [10] - The ESG Excellence IR Teams include companies like Baio Family Interactive and Guotai Junan International [10] - The ESG Excellence PR Teams feature companies such as BYD and H&H International Holdings [11] - ESG Excellence Leaders include Yang Guoping from Dazhong Public Utilities and Hu Zuoxiong from Lingxiong Technology [12]

Core Viewpoint - 康桥悦生活集团有限公司 released its 2024 ESG report, highlighting its commitment to low-carbon practices, sustainable community building, and social responsibility initiatives [1] Group 1: Performance and Growth - Despite market challenges, 康桥悦生活 achieved a revenue of 9.61 billion RMB, a year-on-year increase of 2.9%, and maintained profitability with a net profit of 0.69 billion RMB [3] - The company expanded its managed area by 12.5% to 46.2 million square meters and its contracted area by 4.7% to 70.3 million square meters, with independent third-party developers accounting for 78.6% and 82.0% of these areas respectively [3] - 康桥悦生活 reduced its reliance on related parties, with revenue from related parties dropping from 32.7% in 2021 to 1.5% in 2024, establishing over 300 long-term partnerships with independent developers [3] Group 2: Social Responsibility and Community Engagement - The company integrates party building with business development, engaging in various public welfare and volunteer activities, and was recognized for its social responsibility efforts [5][6] - 康桥悦生活 launched initiatives to support local agriculture by creating sales channels for local products, benefiting both farmers and customers [5] Group 3: Service Quality and Customer Experience - 康桥悦生活 focuses on enhancing service quality through emergency drills and quality improvement actions, completing nearly 15,000 quality enhancements [8][9] - The company conducted over 3,500 community activities in 2024, achieving a customer satisfaction rate of 98% for certain events, thereby improving customer experience [9] Group 4: Compliance and Sustainability - 康桥悦生活 emphasizes compliance and green low-carbon principles, integrating ESG factors into its risk management processes [10][11] - The company set goals for water conservation, waste reduction, and energy efficiency, and implemented green initiatives across various projects [11][12] Group 5: Employee Development and Welfare - 康桥悦生活 prioritizes employee welfare and development, receiving recognition as a "2024 China Annual Preferred Employer" [13] - The company conducted 342 training sessions, covering over 27,330 employees, and established a supportive workplace culture with various employee recognition programs [14][15]

Company Overview - For the year ended December 31, 2024, Kangqiao Service served millions of property owners and won over 300 awards, ranking 25th among the 2024 Top 100 Property Management Companies in China[4]. - The Group's listing on the Main Board of The Stock Exchange of Hong Kong occurred on July 16, 2021, under stock code 2205[3]. - The Group was incorporated in the Cayman Islands on October 8, 2020, and its shares were listed on the Main Board of the Stock Exchange on July 16, 2021[180]. - The Group is principally engaged in property management services and related value-added services in the PRC[180]. Financial Performance - In 2024, the Group achieved total revenue of approximately RMB 960.8 million, representing a year-on-year increase of 2.9%[31]. - The Group's total revenue for the year was approximately RMB 960.8 million, reflecting a 2.9% increase from approximately RMB 934.0 million in 2023[75][77]. - Revenue from property management services was approximately RMB 681.3 million, accounting for 70.9% of total revenue, and increased by 14.7% compared to the previous year[61]. - Revenue from city services was approximately RMB 79.7 million, representing an increase of 22.7% compared to approximately RMB 64.9 million in 2023[70][72][83][87]. - Revenue from value-added services to non-property owners decreased by 37.6% to approximately RMB 86.4 million from approximately RMB 138.4 million in 2023[81][85]. - Revenue from community value-added services was approximately RMB 113.4 million, down 16.9% from approximately RMB 136.6 million in 2023[82][86]. - The Group's cost of sales was approximately RMB 744.6 million, an increase of 4.4% from approximately RMB 713.3 million in 2023[90][91]. - Profit for the year increased by approximately 30.8% to RMB 68.8 million from RMB 52.6 million in 2023, driven by lower expenses[109]. Market and Industry Trends - In 2024, the property service industry experienced a slowdown due to global economic adjustments, but the Group remains optimistic about the recovery potential of the real estate industry and property service sector[21]. - The Group's strategic direction is anchored in industry trends, believing in stable cash flow and the long-tail value chain of customers as key growth drivers[22]. - The Group's commitment to sustainable growth with quality has allowed it to navigate market cycles effectively, demonstrating strong business resilience[21]. Strategic Focus and Development - The Group emphasizes "Joyful Service" and "Intelligent Technology" as its core values, focusing on all business forms and service scenarios throughout the property development lifecycle[5]. - Kangqiao Service aims to redefine urban life by leveraging smart technology and enhancing community services, positioning itself as a smart city service provider[7]. - The Group's future plans include deepening participation in urban services and injecting vitality into new neighborhoods through innovative service offerings[9]. - The Group is shifting from rapid "scale expansion" to sustained "value growth" by optimizing service quality and improving operational efficiency[39]. - The Group aims to enhance operational efficiency and customer satisfaction while ensuring sustainable development and brand influence[55]. Customer and Community Engagement - The Group has launched community activities such as "Four Seasons and One Hall" and "Five Clubs" to address community needs and foster emotional connections among residents[6]. - Customer satisfaction regarding comprehensive services increased by 5.0 percentage points, reaching a higher level of service quality[25]. - The Group aims to achieve intelligent and refined management of services, further enhancing customer experience and service efficiency[43]. Technological Innovations - The Group's digital knowledge assets include 72 copyrights, 29 systems, 16 self-owned source codes, and 131 code projects as of December 31, 2024[30]. - Technological innovations include the development of energy consumption control systems and quality inspection software to improve service efficiency[29]. - The Group will continue to increase technology investment to promote the upgrade of the "business-finance integration" digital technology system, enhancing service management through IoT, big data, and AI[40]. Human Resources and Management - The annual internal training ratio for employees was up to 65.8%, with employee satisfaction increasing by 2.7% year-on-year in 2024[46]. - The Group emphasizes a competitive salary, bonuses, benefits, and systematic training opportunities to attract talented employees[145]. - The Group has implemented a comprehensive recruitment system that includes online recruitment, job fairs, campus recruitment, and referrals[145]. - The Group is committed to promoting diversity and providing equal opportunities for all employees in recruitment, training, and professional development[145]. - The Group aims to create a happy culture in the workplace while promoting work-life balance for all employees[145]. Governance and Risk Management - The Board is committed to maintaining high standards of corporate governance and financial transparency[178]. - The independent non-executive directors provide oversight and independent advice to enhance corporate governance[158]. - The Group's risk management practices aim to mitigate operational risks, including customer loss and senior management turnover[183]. - The Group's financial risk management objectives and policies include managing interest rate risk, credit risk, and liquidity risk[192]. Operational Metrics - The Group managed 328 projects across 35 cities in China, with a contracted gross floor area (GFA) of approximately 70.3 million sq.m., representing a 4.7% increase from 67.1 million sq.m. in 2023[56]. - The GFA under management increased by 12.5% to approximately 46.2 million sq.m. from 41.0 million sq.m. in 2023, with 78.6% from third-party property developers[58]. - Non-residential properties under management reached approximately 7.4 million sq.m., an increase of 11.1% from 6.6 million sq.m. in 2023, with 99.2% from third-party developers[58]. Management Team - The company has a strong management team with diverse backgrounds in finance, engineering, and corporate governance[158]. - The management team has extensive experience in the real estate sector, which is crucial for the company's growth strategy[156]. - The Group's management team includes professionals with significant experience in finance and administration, enhancing its operational capabilities[171][172].

Core Viewpoint - The property management industry is transitioning from a "scale dividend" to an "efficiency dividend," creating opportunities for mid-sized property management companies to be revalued based on their comprehensive operational quality [1] Financial Performance - Kangqiao Yue Life (02205.HK) reported a stable annual performance for 2024, with revenue of approximately 961 million RMB, a year-on-year increase of 2.9%, and a net profit of approximately 69 million RMB, up 30.8% year-on-year [2][4] - The company's revenue structure shows a significant increase in urban service revenue, which accounted for 8.3% of total revenue, growing by 22.7% year-on-year, while non-owner value-added services saw a notable decrease in proportion [2][4] Business Drivers - The company exhibits three main value drivers: independence, diversified operations, and regional deepening [5] - Independence is highlighted by Kangqiao Yue Life's third-party management area accounting for 78.6% of its total, significantly above the industry average, indicating strong market recognition and brand power [6][7] - The diversified operations include various property types and urban services, with urban service revenue growing at a compound annual growth rate of 73.4% from 2022 to 2024 [8][11] Strategic Focus - The company is committed to a strategy of "one three four five," focusing on commercial management and urban services while deepening its core regions, particularly in Jiangsu and Zhejiang [12][15] - Kangqiao Yue Life's ability to expand rapidly in the Nanjing market, increasing its service projects significantly in a short time, demonstrates its effective regional strategy [15] Long-term Value Proposition - The long-term value of Kangqiao Yue Life is anchored in its independence, professionalism, and technological advancement, which are expected to enhance its market position and profitability [16] - The company is investing in technology to improve service efficiency and customer experience, positioning itself to leverage AI and big data for operational enhancements [17]

Financial Performance - The total revenue for the year ended December 31, 2024, was approximately RMB 960.8 million, an increase of 2.9% compared to 2023[2] - The profit for the year was approximately RMB 68.8 million, representing an increase of about 30.8% from RMB 52.6 million in 2023[3] - The basic and diluted earnings per share for the year were RMB 0.07, up from RMB 0.05 in 2023[5] - The company reported a net profit attributable to owners of RMB 48,412,000 for the year ended December 31, 2024, compared to RMB 38,484,000 in 2023, reflecting a year-on-year increase of 25.9%[24] - The company’s total expenses for the year were RMB 803,701,000, an increase from RMB 784,891,000 in 2023[20] - Profit for the year increased by approximately 30.8% to RMB 68.8 million from RMB 52.6 million in 2023, driven by reductions in sales and marketing expenses, administrative expenses, and credit impairment losses[71] Revenue Breakdown - Property management service revenue was approximately RMB 681.3 million, accounting for 70.9% of total revenue, with a growth of 14.7% from 2023[2] - Property management services contributed RMB 681,325,000 to total revenue, up from RMB 594,104,000 in 2023, representing a growth of 14.7%[19] - Urban service revenue increased by 22.7% to RMB 79.7 million from RMB 64.9 million in 2023[51] - Non-owner value-added service revenue decreased to RMB 86,402,000 from RMB 138,381,000, a decline of 37.5%[19] - Community value-added service revenue declined by 16.9% to RMB 113.4 million from RMB 136.6 million in 2023, attributed to a downturn in domestic economic conditions[50] Assets and Liabilities - The total assets as of December 31, 2024, amounted to RMB 1,516.3 million, an increase from RMB 1,252.4 million in 2023[6] - The total liabilities as of December 31, 2024, were RMB 738.2 million, compared to RMB 488.6 million in 2023, indicating a significant increase[7] - Current assets increased by approximately 21.6% to RMB 1,299.9 million from RMB 1,069.2 million in 2023, indicating a strong financial position[72] - Trade and other receivables rose by 36.1% to approximately RMB 939.5 million from RMB 690.5 million in 2023, primarily due to slower collection of trade receivables[74] Operational Metrics - The total managed area for property management contracts was approximately 70.3 million square meters, a growth of 4.7% compared to 2023[3] - The managed project count reached 328, with a total contracted building area of approximately 70.3 million square meters, a growth of 4.7% from 67.1 million square meters in 2023[46] - The proportion of third-party property developers in managed area reached 78.6%, indicating strong market competitiveness[39] - The company signed new third-party service contracts totaling approximately RMB 17.1 million, with a new signed contract area of about 6.4 million square meters[39] Employee and Governance - The total employee count increased to 2,244 as of December 31, 2024, compared to 2,088 in the previous year[84] - Employee benefits expenses for the year were RMB 197,249,000, slightly down from RMB 198,312,000 in 2023[20] - Employee satisfaction increased by 2.7% year-on-year, with a training participation rate of 65.8%[43] - The company has adopted the corporate governance code and has complied with all applicable provisions during the year[91] Dividends and Shareholder Information - The company did not recommend the payment of a final dividend for the year ended December 31, 2024[3] - The company did not recommend a final dividend for the year ended December 31, 2024, compared to a final dividend of RMB 0.053 per share totaling RMB 37.1 million for the previous year[31] Future Outlook and Strategy - The company emphasized the importance of quality growth amidst the evolving global economic landscape and the restructuring of the property management industry[32] - The group aims to enhance its product, organizational, operational, data science, and brand capabilities over the next four years to ensure standardized services and product branding[52] - The group plans to expand its non-residential property and urban service product lines while maintaining balanced development across its three main pillars: residential property, non-residential property, and urban services[52] - The company aims to transition from rapid scale expansion to sustained value growth by optimizing service quality and operational efficiency[40] Compliance and Audit - The audit committee has reviewed the annual performance for the year ending December 31, 2024, and confirmed that the financial results are prepared in accordance with applicable accounting standards and regulations[95] - The consolidated comprehensive income statement and balance sheet for the year ending December 31, 2024, have been verified by the auditor, confirming consistency with the audited financial statements[96] - There were no significant events reported from December 31, 2024, to the announcement date[89]

Business Performance - Revenue for the six months ended June 30, 2024, was approximately RMB 487.3 million, representing an increase of 9.5% compared to the corresponding period in 2023[33]. - Revenue from property management services was approximately RMB 335.0 million, accounting for 68.7% of total revenue, representing an increase of 18.5% compared to the corresponding period in 2023[34]. - Revenue from value-added services to non-property owners was approximately RMB 56.9 million, accounting for 11.7% of total revenue, representing a decrease of 4.5% compared to the corresponding period in 2023[34]. - Revenue from community value-added services was approximately RMB 57.9 million, accounting for 11.9% of total revenue, representing a decrease of 22.1% compared to the corresponding period in 2023[34]. - Revenue from city services was approximately RMB 37.5 million, accounting for 7.7% of total revenue, representing an increase of 32.0% compared to the corresponding period in 2023[34]. - Gross profit for the reporting period was approximately RMB 105.5 million, representing a decrease of 5.7% compared to the corresponding period in 2023[35]. - Profit for the reporting period was approximately RMB 53.3 million, representing a decrease of 10.4% compared to the corresponding period in 2023[37]. - Profit attributable to owners of the Company was approximately RMB 42.8 million, representing a decrease of 15.8% compared to the corresponding period in 2023[37]. Market Position and Recognition - The Group was ranked 25th among the Top 100 Property Service Companies in China in terms of overall strength in 2024, maintaining a position in the TOP 100 for nine consecutive years[3]. - The Group was awarded the title of "2024 China Top 100 Property Management Companies," improving its overall industry strength ranking to 25th, up two places from 2023[45][47]. - As of June 30, 2024, the Group's business contracts covered 35 cities across ten provinces, serving millions of property owners and winning over 300 awards[3]. Community Engagement and Social Responsibility - The Group launched community activities such as "Four Seasons and One Hall" and "Five Clubs" to enhance community engagement and cater to all age groups[6]. - The Group actively undertook social responsibilities, receiving praise for community service activities and being awarded the 2023 Henan Province "Red Property" Demonstration Community[11]. - The Group's initiatives include asset management and community life services aimed at improving the living standards of "Small Owners" through various support services[14]. Operational Strategy and Development - In the first half of 2024, the Group focused on improving service quality, launching community activities, and enhancing customer satisfaction through various initiatives[13]. - The Group's strategic development plan includes a four-year roadmap to support overall business scale and operational capabilities[23]. - The Group's focus on quality service and standardized management aims to eliminate losses and improve customer satisfaction[16][19]. - The Group aims to expand its non-residential property and city services business lines to achieve balanced development across its three pillars: "Joyful Living," "Joyful Commercial Property Management," and "Joyful City Service"[53]. Financial Management and Performance - The Group's cost of sales increased by 14.6% to approximately RMB 381.7 million compared to RMB 333.0 million in the corresponding period in 2023[66]. - The gross profit margin decreased to 21.7%, down 3.5% from 25.2% in the corresponding period in 2023[68]. - Other income decreased by 51.6% to approximately RMB 3.6 million compared to RMB 7.5 million in the corresponding period in 2023, mainly due to reduced government subsidies[72]. - Selling and marketing expenses decreased by 19.0% to approximately RMB 4.3 million compared to RMB 5.3 million in the corresponding period in 2023[73]. - Administrative expenses decreased by 17.8% to approximately RMB 23.9 million compared to RMB 29.1 million in the corresponding period in 2023[74]. Employee Management and Development - The Group emphasized employee satisfaction by increasing salaries for most frontline workers despite a challenging external economic environment[21][22]. - Employee benefit expenses for the six months ended June 30, 2024, amounted to RMB 106.2 million, compared to RMB 95.9 million for the same period in 2023, reflecting an increase of approximately 11.5%[95]. - The Group's talent development initiatives included the establishment of a tiered training system and the cultivation of "Future Leaders" to enhance internal talent capabilities[20]. Digital Transformation and Technology - The Group emphasized the importance of digital intelligence technology in modern management to enhance service delivery and community governance[4]. - The Digital Science Center developed a digital technology support system for "Business Finance Integration," improving management and cost control through intelligent technology applications[23]. - A quality verification software was developed to enhance project inspection efficiency, enabling online self-inspection and standardizing quality actions[24]. Economic Environment and Challenges - The external economic environment remains complex, with property development and sales experiencing declines, indicating a need for strategic adjustments[9]. - The Group's revenue recognition timing showed RMB 437,386 thousand recognized over time and RMB 49,887 thousand recognized at a point in time for the six months ended June 30, 2024[170]. Corporate Governance and Compliance - The company has adopted the Corporate Governance Code and complied with all applicable principles during the reporting period[103][105]. - The Audit Committee confirmed that the unaudited interim condensed consolidated results for the six months ended June 30, 2024 complied with all applicable accounting principles and standards[112][114]. Future Plans and Investments - The Group intends to utilize part of the net proceeds from the global offering to acquire property management and professional service companies, as well as to form joint ventures with local municipal investment companies or property developers[95]. - The proceeds from the global offering will continue to be applied according to the plans disclosed in the Prospectus, with an expected timeline for full utilization by December 2025[121][122].

Revenue and Profitability - For the six months ended June 30, 2024, revenue reached approximately RMB 487.3 million, an increase of 9.5% compared to the same period in 2023[2] - Property management service revenue was approximately RMB 335.0 million, accounting for 68.7% of total revenue, with an 18.5% increase year-on-year[2] - Profit for the period was approximately RMB 53.3 million, a decline of 10.4% year-on-year, with profit attributable to owners of the company at approximately RMB 42.8 million, down 15.8%[2] - The company reported a decrease in community value-added service revenue by 22.1% year-on-year, amounting to approximately RMB 57.9 million[2] - Revenue for the six months ended June 30, 2024, was RMB 487,273 thousand, a rise of 9.4% from RMB 444,939 thousand for the same period in 2023[12] - Property management services revenue reached RMB 335,036 thousand, up 18.5% from RMB 282,719 thousand in the previous year[12] - The net profit attributable to the owners of the company for the six months ended June 30, 2024, was RMB 42,811 thousand, down from RMB 50,858 thousand in 2023, a decrease of 15.8%[15] - Basic and diluted earnings per share for the period were RMB 0.061, compared to RMB 0.073 in the previous year, indicating a decline of 16.4%[15] Assets and Liabilities - Total assets amounted to approximately RMB 1,360.5 million as of June 30, 2024, compared to RMB 1,252.4 million as of December 31, 2023[5] - Total liabilities increased to RMB 593,964 thousand as of June 30, 2024, compared to RMB 488,551 thousand as of December 31, 2023, representing a growth of 21.6%[6] - Total equity and liabilities amounted to RMB 1,360,517 thousand as of June 30, 2024, up from RMB 1,252,376 thousand as of December 31, 2023, indicating an increase of 8.6%[6] - The company's trade receivables as of June 30, 2024, amounted to RMB 770,851,000, an increase of 13.8% from RMB 677,151,000 as of December 31, 2023[18] - The provision for trade receivables impairment increased to RMB 147,715,000 as of June 30, 2024, compared to RMB 132,940,000 as of December 31, 2023[18] - The company's current portion of trade and other receivables was RMB 786,248,000 as of June 30, 2024, up from RMB 695,798,000 as of December 31, 2023[22] - The total trade payables as of June 30, 2024, were RMB 93,031,000, an increase from RMB 84,385,000 as of December 31, 2023[21] Employee and Operational Costs - Employee benefits and labor costs increased to RMB 106,195 thousand, compared to RMB 95,883 thousand in the prior year, reflecting an increase of 11.7%[13] - As of June 30, 2024, the company had 2,108 employees, with employee benefit expenses amounting to RMB 106.2 million for the six months ended June 30, 2024[52] Dividends and Shareholder Returns - The company decided not to declare any interim dividend for the six months ended June 30, 2024[3] - The board of directors resolved not to declare any interim dividend for the six months ended June 30, 2024[46] Corporate Governance and Compliance - The company is committed to maintaining high standards of corporate governance and has adhered to applicable principles and codes during the reporting period[56] - The audit committee has been established according to corporate governance codes, consisting of one non-executive director and two independent non-executive directors[59] - The audit committee reviewed the unaudited interim consolidated results for the six months ended June 30, 2024, confirming compliance with applicable accounting principles and sufficient disclosure[59] Future Outlook and Strategic Plans - The company aims to enhance its product, organizational, operational, and brand capabilities in the second half of 2024, focusing on balanced development across its three main pillars: residential, non-residential, and urban services[28] - The company plans to use part of the net proceeds from its global offering for strategic investments and acquisitions, with 65% allocated for business expansion[53] Market Position and Recognition - The company was ranked 25th in the "Top 100 Property Service Companies in China" by the China Index Academy, improving its position by 2 places from 2023[25]

Financial Performance - The Group's total revenue for 2023 was approximately RMB 934.0 million, representing an increase of 17.8% compared to RMB 792.9 million in 2022[48]. - Gross profit increased by 15.5% to approximately RMB 220.7 million, while net profit attributable to the company decreased by 28.9% to RMB 38.5 million[17]. - Revenue from property management services amounted to approximately RMB 594.1 million, an increase of 23.5% from approximately RMB 480.9 million in 2022[88]. - Revenue from community value-added services reached approximately RMB 136.6 million, reflecting a 1.9% increase from approximately RMB 134.0 million in 2022[70]. - Revenue from city services surged to approximately RMB 64.9 million, marking a significant increase of 145.1% compared to approximately RMB 26.5 million in 2022[70]. - Revenue from value-added services to non-property owners decreased to approximately RMB 138.4 million, down 8.7% from approximately RMB 151.5 million in 2022[99]. - The Group's cost of sales was approximately RMB 713.3 million, representing an increase of 18.5% compared to approximately RMB 601.9 million in 2022[103]. - The gross profit margin for the Group was approximately 23.6%, a decrease of 0.5% from approximately 24.1% in 2022[98]. - The gross profit margin for property management services improved to 21.9%, up from 16.3% in 2022[109]. - The gross profit margin for value-added services to non-property owners decreased to 25.2%, down from 33.0% in 2022[111]. - Other income for the Group was approximately RMB 9.5 million, a decrease of 1.4% from approximately RMB 9.7 million in 2022, mainly due to reduced government subsidies[111]. - The Group's profit for the Year was approximately RMB 52.6 million, representing a decrease of approximately 20.0% compared to RMB 65.7 million for the corresponding period in 2022[123]. - Profit attributable to the owners of the Company was approximately RMB 38.5 million, a decrease of approximately 28.9% from RMB 54.1 million in 2022, primarily due to increased credit impairment losses[123]. Operational Metrics - As of December 31, 2023, the Group's contracted gross floor area (GFA) increased to approximately 67.1 million sq.m., representing a growth of approximately 6.0% compared to 63.3 million sq.m. in 2022[32]. - The GFA under management rose to approximately 41.0 million sq.m., reflecting a significant increase of approximately 28.5% from 31.9 million sq.m. in the previous year[32]. - The GFA under management of non-residential properties increased by 59.8% to approximately 6.6 million sq.m. compared to 4.2 million sq.m. in 2022[32]. - The GFA managed from third-party property developers accounted for approximately 81.3% of the total contracted GFA[32]. - The Group managed a total of 278 projects across 34 cities in China as of December 31, 2023[32]. - New total contract amounts from third parties reached approximately RMB 330 million, with new contract GFA from third parties achieving approximately 6.52 million sq.m.[10]. Strategic Focus and Development - The Group's strategic focus for the next four years includes expanding non-residential property and city services product lines, aiming for balanced development across three pillars: "Joyful Living," "Joyful Commercial Property Management," and "Joyful City Services"[38]. - The Group aims to enhance its "Five Capabilities" which include Service Capability, Operational Capability, Organizational Strength, Digital Science Strength, and Brand Power[39]. - The Group's strategy includes rapid expansion of contracted GFA and increasing the portion of GFA from third-party property developers to enhance market capitalization[61]. - The Group did not implement any new merger and acquisition projects during the year due to stricter risk control requirements[10]. - The Group plans to use part of the net proceeds from the global offering to acquire property management and professional service companies, and collaborate with local investment companies or property developers[177]. Employee and Organizational Development - As of December 31, 2023, the Group had a total of 2,088 employees, an increase from 1,831 employees on December 31, 2022[159]. - The total remuneration cost incurred by the Group was RMB 198.3 million for the year ended December 31, 2023, compared to RMB 177.3 million for the year ended December 31, 2022, reflecting an increase of approximately 11.3%[159]. - The Group emphasizes a well-established recruitment and internal promotion system to attract talented employees through competitive wages, bonuses, and systematic training opportunities[159]. - Employee benefits include housing allowances, cultural and social events, as well as holiday and birthday gifts, promoting work-life balance and diversity within the organization[159]. - The Group's organizational efficiency has improved through structural adjustments and management optimization, although net profit per capita and personnel cost ratio slightly declined due to additional listing-related expenses[40]. Risk Management and Governance - The Group emphasizes the importance of risk management practices to mitigate operational and financial risks effectively[200]. - The board includes independent directors with extensive experience in finance and securities, contributing to governance and strategic oversight[187]. - The Group is committed to maintaining safety standards for projects, property owners, and employees, ensuring quality service corresponding to price[38]. Leadership and Management - Mr. Dai Wei has over 11 years of experience in property management services and was appointed as executive director on January 20, 2021[183]. - Ms. Wang Na has been the vice executive general manager since November 28, 2018, and was appointed as executive president on January 20, 2021[185]. - The management team has a diverse background in real estate and property management, enhancing operational efficiency[185]. - The company aims to leverage its experienced leadership to drive future growth and market expansion[183]. Financial Position and Assets - The Group's current assets as of December 31, 2023, were approximately RMB 1,069.2 million, reflecting a 6.6% increase from RMB 1,003.0 million in 2022[145]. - Cash and cash equivalents amounted to approximately RMB 355.7 million, an increase of 2.8% from RMB 345.9 million in 2022[145]. - The asset-liability ratio as of December 31, 2023, was 39.0%, an increase of 3.7% from 35.3% in 2022[145]. - As of December 31, 2023, trade and other receivables amounted to approximately RMB 690.5 million, an increase of 15.3% from RMB 598.9 million in 2022, due to slow recovery in collections[127]. Events and Acquisitions - The Group did not hold any significant investments during the Year and plans to utilize proceeds from the global offering for future acquisitions and joint ventures[155]. - The Group acquired 51% equity interests in Dingfeng Property in October 2021, which provided a guarantee for a loan of RMB 30,000,000[173]. - As of February 9, 2023, the bank accounts of Dingfeng Property were frozen, and approximately RMB 12.5 million in the frozen account has been enforced in July and August 2023[173]. - Jiatian transferred certain car parking spaces to the Group to compensate for the loss of bank deposits amounting to approximately RMB 12.5 million, with a fair value of RMB 15.5 million as of December 31, 2023[173]. - As of December 31, 2023, the Group has not provided other guarantees or made significant investments or acquisitions[174]. - No significant events affecting the Company occurred after the end of the reporting period up to the date of this annual report[179].

Financial Performance - The company's revenue for the year ended December 31, 2023, was approximately RMB 934.0 million, an increase of 17.8% compared to 2022[3] - The annual profit was approximately RMB 52.6 million, a decrease of about 20.0% from RMB 65.7 million in 2022[5] - The net profit attributable to the company's owners was approximately RMB 38.5 million, a decrease of 28.9% from RMB 54.1 million in 2022[5] - Basic and diluted earnings per share for the year ended December 31, 2023, were RMB 0.05, compared to RMB 0.08 in 2022, reflecting a decline of 37.5%[34] - The gross profit for the year was approximately RMB 220.7 million, an increase of 15.5% from 2022, with a gross margin of 23.6%[3] - The overall gross profit margin decreased to approximately 23.6% from 24.1% in 2022, mainly due to lower margins in non-owner value-added services and city services[93] Revenue Breakdown - Property management service revenue was approximately RMB 594.1 million, accounting for 63.6% of total revenue, and increased by 23.5% year-over-year[3] - Revenue for property management services reached RMB 594,104 thousand in 2023, a significant increase of 23.5% from RMB 480,918 thousand in 2022[29] - Non-owner value-added services revenue decreased to RMB 138,381 thousand in 2023, down 8.7% from RMB 151,527 thousand in 2022[29] - Community value-added services revenue slightly increased to RMB 136,575 thousand in 2023, up 1.3% from RMB 133,970 thousand in 2022[29] - City services revenue surged to RMB 64,956 thousand in 2023, a substantial increase of 144.5% from RMB 26,505 thousand in 2022[29] Assets and Liabilities - The company's total assets as of December 31, 2023, were RMB 1,252.4 million, compared to RMB 1,169.5 million in 2022[10] - Total liabilities increased to RMB 488,551 thousand in 2023 from RMB 413,106 thousand in 2022, representing a growth of 18.2%[12] - Total equity and liabilities amounted to RMB 1,252,376 thousand in 2023, up from RMB 1,169,471 thousand in 2022, indicating a rise of 7.1%[12] Employee and Operational Metrics - Employee benefits expenses increased to RMB 198,312 thousand in 2023 from RMB 177,305 thousand in 2022, marking an increase of approximately 11.8%[31] - The group had a total of 2,088 employees as of December 31, 2023, compared to 1,831 employees as of December 31, 2022[119] - The internal talent development ratio reached 77% in 2023, reflecting the company's commitment to building a skilled workforce[61] Strategic Initiatives - The company aims to enhance operational capabilities and strategically expand its market presence, focusing on urban deep cultivation and surrounding areas of managed projects[60] - The company established a digital technology support system to optimize management and cost control, resulting in the completion of 62 copyrights, 29 systems, and 131 code projects in 2023[64] - The company has implemented a performance incentive system to encourage employees to expand business operations effectively[60] Dividend and Shareholder Information - The company proposed a final dividend of RMB 0.053 per share for the year[5] - The board proposed a final dividend of RMB 0.053 per share for the year ending December 31, 2023, subject to approval at the annual general meeting on June 18, 2024[129] Challenges and Market Conditions - The company faced challenges due to the real estate industry's ongoing regulatory pressures, leading to a weaker overall business and financial performance compared to development plans[57] - Non-owner value-added service revenue decreased by approximately 8.7% to RMB 138.4 million from RMB 151.5 million in 2022, primarily due to the impact of policies on the real estate sector[72] Compliance and Governance - The audit committee reviewed the group's annual performance for the year ending December 31, 2023, and agreed that the performance was prepared in accordance with applicable accounting standards[138] - The company confirmed compliance with the standards set out in the Securities Trading Code for directors throughout the year[128]