本文源自：金融界AI电报 德信服务集团(02215.HK)发布公告，于2025年7月31日(交易时段后)，盛全物业及上海栩全(均为公司间 接全资附属公司)与德清常卓订立2025年股权转让协议，据此，盛全物业及上海栩全分别有条件同意购 买而德清常卓有条件同意出售目标公司德清莫干山瑞璟置业有限公司95%及5%股权，总代价分别为人 民币7410万元及人民币390万元。目标公司的主要资产为该物业。于2025年收购股权完成之后，目标公 司将成为公司的间接全资附属公司，因此，目标公司的财务业绩将并入公司的综合财务报表。 ...

智通财经APP讯，德信服务集团(02215)发布公告，于2025年7月31日(交易时段后)，盛全物业及上海栩 全(均为公司间接全资附属公司)与德清常卓订立2025年股权转让协议，据此，盛全物业及上海栩全分别 有条件同意购买而德清常卓有条件同意出售目标公司德清莫干山瑞璟置业有限公司95%及5%股权，总 代价分别为人民币7410万元及人民币390万元。目标公司的主要资产为该物业。于2025年收购股权完成 之后，目标公司将成为公司的间接全资附属公司，因此，目标公司的财务业绩将并入公司的综合财务报 表。 据悉，该物业指莫干山云谷德信开元名庭酒店，位于中国浙江省湖州市德清县莫干山镇三莫线66号。 公告称，2025年收购股权为集团提供了一个宝贵的机会，通过以优惠的价格收购高品质的资产投资于该 物业。透过投资拥有100多间客房、会议设施、餐厅及酒吧的该物业，董事认为，集团将能够于商业地 产管理、提供会议服务等方面实现多元化发展，并顺应生态旅游及国内旅游日益受到关注的趋势。此 外，考虑到目标公司的财务状况及财务表现，董事会认为，长远而言，2025年收购股权将有利于集团的 收入来源，并使集团在酒店管理领域获得宝贵的经验及扩大业 ...

Group 1 - The core viewpoint of the news highlights the recent performance and financial status of Dexin Service Group, indicating a significant decline in stock price and financial metrics despite a recent uptick in share price [1][2] - As of July 14, the Hang Seng Index rose by 0.26%, while Dexin Service Group's stock price increased by 15.94% to HKD 0.8 per share, with a trading volume of 1,000 shares and a turnover of HKD 800 [1] - Over the past month, Dexin Service Group has experienced a cumulative decline of 13.75%, and a year-to-date decline of 38.39%, underperforming the Hang Seng Index by 20.34% [1] Group 2 - Financial data shows that for the year ending December 31, 2024, Dexin Service Group achieved total revenue of CNY 933 million, a year-on-year decrease of 2.32%, and a net profit attributable to shareholders of CNY 38.47 million, down 37.71% year-on-year [1] - The company's gross profit margin stands at 20.1%, with a debt-to-asset ratio of 48.53% [1] - Currently, there are no institutional investment ratings for Dexin Service Group [1] Group 3 - In terms of industry valuation, the average price-to-earnings (P/E) ratio for the real estate sector is 10.09 times, with a median of -0.16 times, while Dexin Service Group's P/E ratio is 15.24 times, ranking 62nd in the industry [1] - Other companies in the sector have varying P/E ratios, with Baishida Holdings at 0.72 times, Hengda Group Holdings at 1.71 times, China New City at 2.4 times, Ruosen Life Services at 2.82 times, and Xinyuan Services at 3.09 times [1] Group 4 - Dexin Service Group, established in 2004, is recognized as a leading service provider in the property management industry, focusing on five major business segments: basic property services, modern urban services, value-added living services, asset operation services, and industrial consulting services [2] - The company holds various qualifications, including being a first-class property service enterprise in China and has established a strong presence in the Yangtze River Delta region, managing nearly 150,000 households and over 39.24 million square meters of property [2] - Dexin Service Group has been listed among the top 100 property service companies in China for 11 consecutive years, ranking 20th in 2024 [2]

Core Insights - The property management industry is experiencing a significant trend of companies voluntarily exiting projects due to various operational challenges and financial pressures [1][3][5] - The turnover rate of residential property management has increased from 1.7% in 2021 to 3.3% in 2024, indicating a growing willingness among homeowners to change property management companies [7][10] Group 1: Company Exits - China Overseas Property announced its exit from the Ezhou Shuangchuang Star community by August 31, 2025, due to low occupancy rates and high unpaid fees, with a total outstanding amount of 595,900 yuan as of January 2025 [1][4] - Jin Ke Service will withdraw from Chongqing Hengchun Phoenix City by August 31, 2025, citing reduced property fees and legacy issues from developers leading to losses [1][4] - Longfor Property is set to exit Shanghai Su Di Chun Xiao community by August 2025 due to unresolved historical issues causing operational risks [1][4] Group 2: Industry Trends - A report by CRIC shows that from 2021 to 2024, the residential property turnover rate has increased, suggesting a trend where approximately 20,000 residential communities change property management annually [2][7] - Many property management companies, including Wanwu Cloud, Shimao Service, and others, have publicly announced their termination and exit from various projects in their 2024 annual reports [2][3] - The ongoing dissatisfaction among homeowners regarding property services has led to a rise in the number of homeowners seeking to change property management companies [10][11] Group 3: Financial Pressures - The primary reasons for property management companies exiting projects include rising costs, declining collection rates, and insufficient growth in value-added services [5][6] - In 2024, Wanwu Cloud exited 53 residential projects, impacting a saturated income of 286 million yuan, while Shimao Service and others also reported significant areas of project exits [6][5] - Companies are increasingly focusing on high-quality growth, prioritizing high-capacity cities and quality clients, as evidenced by China Overseas Property's increase in new contract amounts in core urban areas [5][6]

Financial Performance - Revenue for the year ended December 2024 was RMB 933,423,000, a decrease of 2.3% compared to RMB 955,580,000 in December 2023[15] - Gross profit decreased by 17.0% to RMB 187,601,000 from RMB 226,039,000 year-over-year[15] - Profit for the period fell by 39.7% to RMB 37,674,000, down from RMB 62,497,000 in the previous year[15] - The Group maintained a gross profit margin of 20.1%, down from 23.7% in the previous year, indicating pressure on profitability[15] - Revenue from property management services reached RMB 832.4 million, an increase of RMB 91.5 million from 2023, representing 89.2% of total revenue[71] - Revenue from residential properties was RMB 577.46 million, accounting for 69.4% of total revenue, up from 65.3% in 2023[54] - Revenue from non-residential properties decreased to RMB 254.92 million, representing 30.6% of total revenue, down from 34.7% in 2023[54] - Revenue from value-added services to non-property owners fell by 63.5% to RMB 38.7 million compared to RMB 106.09 million in 2023[55] - Community value-added services revenue decreased by 42.6% to RMB 62.4 million from RMB 108.6 million in 2023[58] - For the year ended December 31, 2024, the Group's revenue amounted to RMB 933.4 million, a decrease of 2.3% compared to RMB 955.6 million in 2023[68] Asset and Liability Management - Total assets decreased to RMB 1,341,107,000 from RMB 1,424,649,000, reflecting a decline in overall asset value[15] - Total liabilities slightly decreased to RMB 650,874,000 from RMB 665,616,000, indicating improved liability management[15] - Cash and bank balance decreased to RMB 202,181,000 from RMB 229,728,000, showing a reduction in liquidity[15] - As of December 31, 2024, trade and other receivables and prepayments amounted to RMB 1,077.4 million, a decrease of RMB 72.8 million compared to RMB 1,150.3 million as of December 31, 2023[98] - Trade payables decreased by 5.0% to RMB 409.2 million as of December 31, 2024, from RMB 430.7 million as of December 31, 2023, due to reduced operational scale[105] - Cash and cash equivalents decreased by 12.0% to RMB 202.2 million as of December 31, 2024, from RMB 229.7 million as of December 31, 2023[107] Operational Strategy and Development - The Group focused on high-quality development by optimizing operational quality and withdrawing from low-efficiency projects[19] - The Group implemented a flatter management structure and project group management, enhancing on-site service response efficiency and aligning daily operations with comprehensive budget targets, particularly in cash flow management[22] - The Group aims to create a low-carbon service ecosystem by integrating energy-saving technologies and deploying distributed photovoltaic applications in commercial projects[29] - The Group's future strategy emphasizes embracing technological innovation to remain competitive in the evolving property service industry[31] - The Group is focusing on service product innovation in the commercial sector, including the development of a new service model for digital cultural parks and customized services for cultural enterprises[26] Employee Management and Development - The company is committed to providing competitive salary packages and comprehensive social insurance coverage for employees in accordance with PRC laws[136] - The Group has implemented a systematic review of the remuneration policy to align with market conditions and business development, ensuring competitive compensation for employees[137] - A regular performance evaluation system is in place, assessing employee performance annually, quarterly, and monthly, with results directly impacting compensation adjustments and promotions[139] - The Group emphasizes employee training and development, establishing a clear promotion mechanism and diverse career development platforms, including online and offline training methods[140] - The Group's strategic focus includes cultivating core talents and empowering professionalism through targeted training initiatives[140] Leadership and Governance - The Group's leadership includes experienced professionals with extensive backgrounds in real estate and property management, enhancing strategic decision-making capabilities[142][149] - The company has a strong leadership team with members holding significant qualifications and experience in their respective fields, enhancing its operational capabilities[153] - The Group emphasizes the importance of independent directors in ensuring effective governance and management oversight[175] - The management team is committed to maintaining high standards of operational efficiency and strategic growth[186] Market Position and Competition - The Group was recognized as one of the "TOP 100 Property Management Companies in China" for the 11th consecutive year, moving up to the 20th place[19] - The company expanded its geographical presence to 39 cities in China by the end of 2024, focusing on first-tier and second-tier cities to enhance competitive strength in the property industry[47] - The company experienced intensified market competition, which contributed to the slight reduction in GFA under management[39] Project Management and Acquisitions - The company agreed to acquire a 24.0% stake in Hangzhou Xiangyu Property Management Co., Ltd. for RMB 7.37 million and an 8.0% stake for RMB 2.46 million, with the transactions not yet completed as of December 31, 2024[120] - The company conditionally agreed to acquire 100% equity interest in Deqing Moganshan Ruijing Real Estate Co., Ltd. for RMB 90 million, with the principal asset being Moganshan Yungu Dexin New Century Mingting Hotel[122] - The company entered into agreements to transfer parking space usage rights for a total consideration of RMB 211.43 million, with specific amounts for each agreement being RMB 52.83 million, RMB 21.45 million, RMB 17.16 million, and RMB 120 million[121] Community and Value-Added Services - The community value-added services offered included smart community solutions and home decoration services, aimed at enhancing customer satisfaction and loyalty[38] - The "Companion with Passion" quality improvement campaign created vibrant community spaces, leading to multiple recognitions for property management excellence in Hangzhou and Zhejiang Province[23] - Revenue from community retail and home services decreased to RMB 20.2 million, down by RMB 8.6 million from RMB 28.8 million in 2023[65]

Financial Performance - For the year ended December 31, 2024, revenue was RMB 933.4 million, a decrease of 2.3% compared to 2023[2]. - Gross profit for the year was RMB 187.6 million, down 17.0% from 2023, resulting in a gross margin of 20.1%, a decline of 3.6%[2]. - Profit for the year was RMB 37.7 million, representing a significant decrease of 39.7% compared to the previous year[2]. - Basic earnings per share for the year were RMB 0.042, down 35.4% from RMB 0.065 in 2023[2]. - Total revenue for the group decreased to RMB 933,423,000 in 2024 from RMB 955,580,000 in 2023, a decline of about 2.3%[16]. - The group reported a basic earnings per share of approximately RMB 0.042 (RMB 38,473,000 profit) in 2024, down from RMB 0.065 (RMB 61,767,000 profit) in 2023, reflecting a decline of about 35.4%[26]. - The group's net profit for the reporting period was RMB 37.7 million, a decline of 39.7% from RMB 62.5 million in 2023, with a net profit margin of 4.0%, down 2.5% from the previous year[77]. Revenue Sources - Revenue from property management services increased to RMB 832,370,000 in 2024 from RMB 740,845,000 in 2023, representing a growth of approximately 12.3%[14]. - Property management services remained the largest revenue source, contributing RMB 832.4 million, a 12.3% increase from RMB 740.8 million in 2023[64]. - Non-owner value-added services revenue decreased by 63.5% to RMB 38.7 million compared to RMB 106.1 million in 2023, attributed to ongoing negative sentiment in the real estate industry[56]. - Community value-added services revenue fell by 42.6% to RMB 62.4 million from RMB 108.6 million in 2023[58]. - The property management service revenue is primarily generated from independent third-party property developers, accounting for approximately 48.9% of total revenue, with a managed area of about 20.6 million square meters[49]. Assets and Liabilities - Total assets less current liabilities amounted to RMB 700.2 million, down from RMB 769.1 million in 2023[6]. - The net asset value as of December 31, 2024, was RMB 690.2 million, compared to RMB 759.0 million in 2023[6]. - Trade receivables from related parties increased to RMB 111,014,000 in 2024 from RMB 95,968,000 in 2023, a rise of about 15.7%[27]. - The group's trade receivables net of impairment provisions amounted to RMB 430,135,000 in 2024, an increase from RMB 378,971,000 in 2023, representing a growth of about 13.5%[27]. - Trade payables total RMB 195,442,000 in 2024, compared to RMB 178,551,000 in 2023, with a notable increase in third-party payables[29]. Dividends and Share Repurchase - The board of directors did not recommend the payment of a final dividend for the year ended December 31, 2024[2]. - The group did not declare or recommend any dividends for the year ending December 31, 2024, consistent with 2023[25]. - The company has repurchased a total of 54,745,000 shares at a total cost of HKD 98,800,500 for the year ending December 31, 2024[104]. - The board does not recommend a final dividend for the year ending December 31, 2024, consistent with the previous year[101]. Operational Efficiency and Management - The group has implemented a flat and efficient management structure, enhancing project management and resource sharing among neighboring projects[40]. - The group has developed an information management tool to improve operational efficiency and decision-making processes[41]. - The company has implemented significant organizational changes in 2024, optimizing its structure and enhancing decision-making efficiency through a flatter management model[91]. - The company plans to utilize unspent proceeds for business expansion, diversification of services, and investment in information technology and internal management systems[97]. Market Position and Strategy - The group was ranked 20th among the top 100 property service companies in China, maintaining a stable management scale despite external challenges[39]. - The company aims to integrate AI technology into service scenarios, enhancing decision-making processes and internal management efficiency[44]. - The company is cautiously expanding its market share due to market uncertainties and is seeking suitable acquisition opportunities to complement its business strategy[99]. - The company has expanded its geographical distribution to 39 cities in China as of December 31, 2024, enhancing its competitiveness in property management[51]. Employee and Training - The total number of employees as of December 31, 2024, is 2,465, down from 2,942 on December 31, 2023, with a gender distribution of 1,262 males (51.2%) and 1,203 females (48.8%)[91]. - Total employee costs for the year 2024 amounted to RMB 284.0 million[91]. - The training and development system includes various training formats such as online, offline, and blended learning, aimed at enhancing employee skills and career growth[93]. Compliance and Governance - The company has complied with all applicable corporate governance codes during the year ending December 31, 2024[106]. - The audit committee, composed of three independent non-executive directors, has reviewed the financial statements and confirmed compliance with applicable accounting principles[108]. - The company will issue its annual report containing all relevant information as required by the listing rules[110].

Financial Position - As of June 30, 2022, the group's cash and cash equivalents amounted to approximately RMB 826.6 million, significantly exceeding immediate cash needs[4] - The company expects to maintain sufficient operating cash flow and has taken measures to ensure adequate working capital following the loan provision[5] Loan Agreement - The loan agreement was established on December 16, 2022, with a principal amount not exceeding RMB 315 million[12] - The board believes that the loan agreement, secured by collateral valued at approximately RMB 630 million, presents a low and controllable financial risk regarding the borrower's repayment ability[5] - The board considers the terms of the loan agreement to be fair and reasonable, aligning with the best interests of the company and its shareholders[5] Interest Income and Business Relationships - The loan is expected to generate additional interest income, which is higher than the interest from idle cash deposits in banks or other financial institutions[6] - The company anticipates that the loan will strengthen business relationships with the borrower, potentially leading to more business opportunities[8] Receivables Monitoring - The company is monitoring receivables from Dexin China, which amounted to approximately RMB 79.69 million and RMB 1.36 million as of December 31, 2023[9] - As of December 31, 2023, there were no significant impairments or write-offs related to the loan receivables[9] Global Offering - The net proceeds from the global offering totaled RMB 763.5 million[12]

[Corporate Information](index=3&type=section&id=Corporate%20Information) This section provides essential corporate details for Dexin Services Group Co., Ltd., covering governance, key personnel, and listing information [Corporate Information](index=3&type=section&id=Corporate%20Information) This section provides essential corporate details for Dexin Services Group Co., Ltd., covering governance, key personnel, and listing information - The company's Board of Directors comprises Executive Directors Mr. Hu Yiping (Chairman), Mr. Tang Junjie, Ms. Zheng Peng, and Independent Non-executive Directors Mr. Rui Meng, Mr. Yang Xi, and Dr. Wang Yongquan[2](index=2&type=chunk) - The company was listed on the Hong Kong Stock Exchange on **July 15, 2021**, under stock code **2215**[7](index=7&type=chunk) [Financial Highlights](index=6&type=section&id=Financial%20Highlights) For the six months ended June 30, 2024, the company reported a modest 3.3% revenue growth, but significant declines in gross profit and net profit by 21.4% and 32.8% respectively, with corresponding margin contractions, while total assets and equity slightly increased and GFA continued to grow [Financial Highlights](index=6&type=section&id=Financial%20Highlights) For the six months ended June 30, 2024, the company reported a modest 3.3% revenue growth, but significant declines in gross profit and net profit by 21.4% and 32.8% respectively, with corresponding margin contractions, while total assets and equity slightly increased and GFA continued to grow 2024 H1 Key Financial Data | Indicator | 2024 H1 (RMB Thousand) | 2023 H1 (RMB Thousand) | Change (%) | | :--- | :--- | :--- | :--- | | **Revenue** | 473,228 | 458,022 | 3.3% | | **Gross Profit** | 101,531 | 129,175 | -21.4% | | **Profit for the Period** | 42,484 | 63,255 | -32.8% | | **Profit Attributable to Owners of the Company** | 42,169 | 63,015 | -33.1% | Key Financial Ratios and Operating Data | Indicator | 2024 H1 | 2023 H1 | | :--- | :--- | :--- | | **Gross Profit Margin** | 21.5% | 28.2% | | **Net Profit Margin** | 9.0% | 13.8% | | **Basic and Diluted Earnings Per Share (RMB)** | 0.045 | 0.065 | | **Total GFA Under Management (Thousand Sq.m.)** | 39,563 | 36,230 | | **Total Contracted GFA (Thousand Sq.m.)** | 44,851 | 44,191 | [Chairman's Statement](index=7&type=section&id=Chairman's%20Statement) The Chairman's Statement highlights the Group's independent and stable operations amidst real estate market fluctuations, focusing on enhancing core competitiveness through customer-centricity, lean operations, and quality services, achieving a top-20 ranking in China's property management sector, with future plans for continued independent growth, organizational transformation, and service diversification [Chairman's Statement](index=7&type=section&id=Chairman's%20Statement) The Chairman's Statement highlights the Group's independent and stable operations amidst real estate market fluctuations, focusing on enhancing core competitiveness through customer-centricity, lean operations, and quality services, achieving a top-20 ranking in China's property management sector, with future plans for continued independent growth, organizational transformation, and service diversification - The company maintains independent development, advancing its market strategy of "deepening presence in the Yangtze River Delta and strategically expanding to key national cities," with its **first entry into the Tianjin market** during the reporting period[14](index=14&type=chunk)[16](index=16&type=chunk) - The company excelled in third-party market expansion, particularly in the non-residential sector, and explored collaborations with local state-owned enterprises and leading companies, such as its high-end commercial service brand "Shi Pu Lian Hang" partnering with Qujiang Jiaotou[14](index=14&type=chunk)[16](index=16&type=chunk) - The company adheres to the principle of "cash before profit, profit before scale," proactively adjusting low-quality projects and enhancing operational efficiency and gross margin stability through measures like management flattening and integrated finance-business operations[17](index=17&type=chunk)[19](index=19&type=chunk) - The company actively innovates services, upgrading its high-end commercial office service brand "Shi Pu Lian Hang," and proactively investing in new energy sectors like photovoltaic energy storage and smart charging, while launching new products such as positioning consulting and leasing operations[22](index=22&type=chunk)[23](index=23&type=chunk) [Management Discussion and Analysis](index=10&type=section&id=Management%20Discussion%20and%20Analysis) This section provides a comprehensive review of the Group's financial performance, liquidity, capital resources, significant investments, and human resources, offering insights into operational drivers and future strategic directions [Financial Review](index=10&type=section&id=Financial%20Review) In H1 2024, total revenue grew 3.3% to RMB 473.2 million, driven by a 20.9% increase in property management services, despite significant declines in value-added services to non-property owners and community value-added services, leading to a 6.7 percentage point drop in overall gross margin and a 32.8% decrease in net profit [Revenue Analysis](index=10&type=section&id=Revenue%20Analysis) During the reporting period, total Group revenue increased by 3.3% to RMB 473.2 million, primarily driven by a significant rise in property management service revenue, which now accounts for 87.4% of total revenue, while non-owner and community value-added services experienced notable declines Revenue Breakdown by Business Line (RMB Thousand) | Business Line | 2024 H1 | Proportion (%) | 2023 H1 | Proportion (%) | | :--- | :--- | :--- | :--- | :--- | | Property Management Services | 413,438 | 87.4% | 341,844 | 74.6% | | Value-added Services to Non-property Owners | 19,835 | 4.2% | 59,801 | 13.1% | | Community Value-added Services | 39,955 | 8.4% | 56,377 | 12.3% | | **Total** | **473,228** | **100.0%** | **458,022** | **100.0%** | [Property Management Services](index=11&type=section&id=Property%20Management%20Services) Property management service revenue grew 20.9% to RMB 413.4 million, primarily due to a 9.2% increase in GFA under management to 39.6 million sq.m. by June 30, 2024, with Zhejiang Province remaining the core region contributing 73.7% of revenue, and residential properties forming the majority at 68.7% - As of June 30, 2024, total GFA under management was approximately **39.6 million sq.m.**, representing a **9.2% increase** from **36.2 million sq.m.** in the same period last year[29](index=29&type=chunk)[30](index=30&type=chunk) - GFA under management from independent third-party developers reached **21.1 million sq.m.**, accounting for **53.3%** of total GFA under management and contributing **49.0%** of property management revenue[31](index=31&type=chunk) - The business's geographical distribution is concentrated in the Yangtze River Delta region, with Zhejiang Province contributing the vast majority of revenue (**RMB 305 million**, accounting for **73.7%**)[33](index=33&type=chunk) [Value-added Services to Non-property Owners](index=14&type=section&id=Value-added%20Services%20to%20Non-property%20Owners) Due to the ongoing downturn in the real estate sector, demand for services from developers significantly decreased, leading to a 66.8% year-on-year decline in value-added services to non-property owners, from RMB 59.8 million to RMB 19.8 million, with site services and preliminary consulting services being the primary contributors to this reduction Value-added Services to Non-property Owners Revenue Breakdown (RMB Thousand) | Service Type | 2024 H1 | 2023 H1 | | :--- | :--- | :--- | | Site Services | 13,147 | 37,746 | | Preliminary Consulting Services | 4,735 | 17,200 | | Property Inspection and Repair Services | 1,623 | 4,855 | | Commercial Consulting Services | 330 | — | | **Total** | **19,835** | **59,801** | [Community Value-added Services](index=15&type=section&id=Community%20Value-added%20Services) Community value-added services revenue decreased by 29.1% to RMB 40 million, primarily due to significant declines in property sales and co-sales services and home furnishing services, while smart community solutions revenue more than doubled - Revenue from property sales and co-sales services significantly decreased from **RMB 9.4 million** to **RMB 0.5 million** due to the impact of the real estate industry[42](index=42&type=chunk) - Home furnishing services revenue decreased from **RMB 9.9 million** to **RMB 1.5 million**, a decline of **RMB 8.4 million**[43](index=43&type=chunk)[45](index=45&type=chunk) - Smart community solutions revenue grew against the trend, increasing from **RMB 4.6 million** to **RMB 9.4 million**, a **104% year-on-year increase**[40](index=40&type=chunk)[41](index=41&type=chunk) [Profitability Analysis](index=16&type=section&id=Profitability%20Analysis) Due to shifts in business mix, a decline in high-margin value-added services, and increased costs, the Group's overall gross margin decreased from 28.2% to 21.5%, with non-owner value-added services experiencing the most significant margin drop, while administrative expenses decreased due to organizational optimization, but trade receivables impairment losses increased, resulting in a 32.8% year-on-year decline in net profit to RMB 42.5 million Gross Profit Margin by Business Segment | Business Segment | 2024 H1 | 2023 H1 | Change | | :--- | :--- | :--- | :--- | | Property Management Services | 19.4% | 25.1% | -5.7% | | Value-added Services to Non-property Owners | 19.2% | 35.1% | -15.9% | | Community Value-added Services | 44.0% | 39.5% | 4.5% | | **Total** | **21.5%** | **28.2%** | **-6.7%** | - Administrative expenses decreased by **RMB 10.4 million** year-on-year to **RMB 39.7 million**, primarily due to organizational structure adjustments and optimized staffing[56](index=56&type=chunk)[60](index=60&type=chunk) - Out of prudence, impairment losses on trade and other receivables increased from **RMB 10.2 million** to **RMB 11.0 million**[57](index=57&type=chunk)[61](index=61&type=chunk) - Net profit for the period was **RMB 42.5 million**, a **32.8% year-on-year decrease**; net profit margin was **9.0%**, down **4.8 percentage points** from **13.8%** in the same period last year[63](index=63&type=chunk) [Liquidity, Capital Resources, and Risk](index=20&type=section&id=Liquidity%2C%20Capital%20Resources%2C%20and%20Risk) The Group maintains a prudent treasury management policy, with cash and cash equivalents at RMB 202.1 million as of June 30, 2024, a stable current ratio of 2.0x, and a low gearing ratio of 0.04, while primarily operating in RMB with minimal foreign exchange exposure and no significant capital commitments, contingent liabilities, or asset pledges at period-end Liquidity and Capital Structure Indicators | Indicator | June 30, 2024 | December 31, 2023 | | :--- | :--- | :--- | | **Cash and Cash Equivalents (RMB Million)** | 202.1 | 229.7 | | **Current Ratio** | 2.0x | 2.1x | | **Total Borrowings (RMB Million)** | 27.0 | 27.0 | | **Gearing Ratio** | 0.04 | 0.04 | - The Group's vast majority of income and expenditures are denominated in RMB, resulting in low foreign exchange risk, and no hedging transactions have been entered into[66](index=66&type=chunk)[70](index=70&type=chunk) - As of the end of the reporting period, the Group had no contracted but unprovided capital commitments, nor any pledged assets or significant contingent liabilities[67](index=67&type=chunk)[68](index=68&type=chunk)[71](index=71&type=chunk)[72](index=72&type=chunk)[73](index=73&type=chunk)[76](index=76&type=chunk) [Significant Investments and Future Plans](index=21&type=section&id=Significant%20Investments%20and%20Future%20Plans) During the reporting period, the company advanced a significant connected transaction announced in August 2023 to acquire target parking spaces and 100% equity in Deqing Moganshan Ruijing Property Co., Ltd., which, despite shareholder approval on March 13, 2024, faces uncertainty due to the cancellation of the related party Dexin China's EGM, while the Group plans to use part of its IPO proceeds for future acquisitions to expand its property management business - On August 24, 2023, the company entered into agreements to acquire target parking spaces and 100% equity in Deqing Moganshan Ruijing Property Co., Ltd., for a total consideration of approximately **RMB 211 million** and **RMB 90 million** respectively[74](index=74&type=chunk)[75](index=75&type=chunk)[77](index=77&type=chunk) - The completion of this significant connected transaction is contingent on shareholder approval from Dexin China, but Dexin China has cancelled its extraordinary general meeting originally scheduled for June 12, 2024, introducing uncertainty to the transaction[78](index=78&type=chunk)[79](index=79&type=chunk) - The Group plans to utilize a portion of its IPO proceeds to acquire or invest in other property management companies to expand its business scale and market share[80](index=80&type=chunk)[83](index=83&type=chunk) [Human Resources and Remuneration](index=22&type=section&id=Human%20Resources%20and%20Remuneration) As of June 30, 2024, the Group had 2,703 employees, a decrease of 239 from year-end, with total staff costs of RMB 145.3 million for the first half, maintaining market-aligned remuneration, comprehensive social insurance, and systematic training, while no share options were granted, exercised, or cancelled under the 2021 share option scheme during the period - As of June 30, 2024, the Group's employee count was **2,703**, a decrease from **2,942** at the end of 2023, with total staff costs for the first half amounting to **RMB 145.3 million**[82](index=82&type=chunk)[85](index=85&type=chunk) - The company adopted a share option scheme on June 21, 2021, aimed at rewarding and incentivizing eligible participants who contribute to the Group[88](index=88&type=chunk)[90](index=90&type=chunk) - During the reporting period and up to the date of this report, no share options were granted, exercised, cancelled, or lapsed under the share option scheme[95](index=95&type=chunk)[97](index=97&type=chunk) [Dividend Policy](index=25&type=section&id=Dividend%20Policy) The Board resolved not to declare any interim dividend for the six months ended June 30, 2024, consistent with the prior year's policy - The Board resolved not to declare an interim dividend for the six months ended June 30, 2024[96](index=96&type=chunk)[98](index=98&type=chunk) [Corporate Governance and Other Information](index=26&type=section&id=Corporate%20Governance%20and%20Other%20Information) This section details the company's adherence to corporate governance standards, adjustments to IPO proceeds utilization, share repurchase activities, and compliance with relevant listing rules [Use of Proceeds](index=26&type=section&id=Use%20of%20Proceeds) The company adjusted the use of its 2021 IPO net proceeds, reallocating RMB 315 million of unutilized funds, originally for business expansion, as a loan to a business partner to optimize idle capital, and extended the utilization timeline for all unutilized net proceeds to on or before December 2024 - The company provided a portion of its unutilized net IPO proceeds, originally designated for business expansion, as a loan (principal up to **RMB 315 million**) to a business partner, secured by parking space assets valued at approximately **RMB 630 million**[99](index=99&type=chunk)[100](index=100&type=chunk) Net Proceeds Allocation and Utilization (HKD Million) | Purpose | Planned Use | Unutilized Amount as of June 30, 2024 | | :--- | :--- | :--- | | Expand Business Scale and Market Share | 496.0 | 82.4 | | Diversify and Expand Service Offerings | 76.4 | 0.0 | | Invest in Information Technology | 76.4 | 57.4 | | Improve Human Resource Management | 38.3 | 3.6 | | Working Capital and Other | 76.4 | 0.0 | | Loan to Borrower | Not Applicable | 0.0 | [Share Repurchase](index=32&type=section&id=Share%20Repurchase) For the six months ended June 30, 2024, the company repurchased 19,427,000 shares on the Stock Exchange for approximately HKD 38.51 million, with all repurchased shares subsequently cancelled 2024 H1 Share Repurchase Details | Transaction Month | Total Shares Repurchased | Total Consideration Paid (HKD) | | :--- | :--- | :--- | | March | 3,781,000 | 7,562,000 | | April | 5,940,000 | 11,878,970 | | May | 9,706,000 | 19,069,110 | | **Total** | **19,427,000** | **38,510,080** | [Corporate Governance Compliance](index=33&type=section&id=Corporate%20Governance%20Compliance) During the reporting period, the company maintained high corporate governance standards, complying with all applicable code provisions of the Corporate Governance Code in Appendix C1 of the Listing Rules, adopting the Model Code in Appendix C3 for directors' securities transactions, with all directors confirming compliance, and the Audit Committee reviewed the interim results - For the six months ended June 30, 2024, the company complied with all applicable code provisions of the Corporate Governance Code[119](index=119&type=chunk)[120](index=120&type=chunk) - All directors confirmed compliance with the Model Code for Securities Transactions by Directors during the reporting period[121](index=121&type=chunk)[123](index=123&type=chunk) [Condensed Consolidated Financial Statements](index=34&type=section&id=Condensed%20Consolidated%20Financial%20Statements) This section presents the Group's condensed consolidated financial statements, including the statement of profit or loss, financial position, cash flows, and accompanying notes, providing a summary of the financial performance and position for the period [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=34&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) For the six months ended June 30, 2024, the company reported revenue of RMB 473.2 million, a 3.3% increase, but gross profit declined to RMB 101.5 million and operating profit to RMB 46.8 million due to increased cost of sales and reduced other income, resulting in a net profit of RMB 42.5 million, a 32.8% decrease, with basic earnings per share at RMB 0.045 Condensed Consolidated Statement of Profit or Loss (RMB Thousand) | Item | 2024 H1 (Unaudited) | 2023 H1 (Unaudited) | | :--- | :--- | :--- | | Revenue | 473,228 | 458,022 | | Cost of Sales | (371,697) | (328,847) | | **Gross Profit** | **101,531** | **129,175** | | Operating Profit | 46,783 | 69,212 | | Profit Before Tax | 55,839 | 80,156 | | **Profit and Total Comprehensive Income for the Period** | **42,484** | **63,255** | | Attributable to Owners of the Company | 42,169 | 63,015 | | **Basic and Diluted Earnings Per Share (RMB)** | **0.045** | **0.065** | [Condensed Consolidated Statement of Financial Position](index=35&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2024, total company assets increased to RMB 1.512 billion from RMB 1.425 billion at year-end, primarily driven by higher trade and other receivables, while total liabilities rose to RMB 746.5 million, total equity slightly increased to RMB 765.4 million, and cash and cash equivalents decreased to RMB 202.1 million Condensed Consolidated Statement of Financial Position (RMB Thousand) | Item | June 30, 2024 (Unaudited) | December 31, 2023 (Audited) | | :--- | :--- | :--- | | **Non-current Assets** | 30,942 | 29,299 | | **Current Assets** | 1,481,015 | 1,395,350 | | **Total Assets** | **1,511,957** | **1,424,649** | | **Current Liabilities** | 736,510 | 655,599 | | **Non-current Liabilities** | 10,023 | 10,017 | | **Total Liabilities** | **746,533** | **665,616** | | **Net Assets** | **765,424** | **759,033** | | **Total Equity** | **765,424** | **759,033** | [Condensed Consolidated Statement of Cash Flows](index=37&type=section&id=Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) In H1 2024, cash flow from operating activities shifted to a net outflow of RMB 12.8 million, while investing activities generated a net inflow of RMB 23.8 million, mainly from third-party repayments, and financing activities resulted in a net outflow of RMB 38.6 million, primarily for share repurchases, leading to a net decrease in cash and cash equivalents of RMB 27.6 million to RMB 202.1 million at period-end Condensed Consolidated Statement of Cash Flows (RMB Thousand) | Item | 2024 H1 (Unaudited) | 2023 H1 (Unaudited) | | :--- | :--- | :--- | | Net Cash from Operating Activities | (12,788) | 58,337 | | Net Cash from Investing Activities | 23,804 | 11,759 | | Net Cash Used in Financing Activities | (38,646) | (83,131) | | **Net Decrease in Cash and Cash Equivalents** | **(27,630)** | **(13,035)** | | Cash and Cash Equivalents at Beginning of Period | 229,728 | 209,855 | | **Cash and Cash Equivalents at End of Period** | **202,098** | **196,820** | [Notes to the Condensed Consolidated Financial Statements](index=38&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) The notes to the financial statements provide detailed explanations of key accounting items, highlighting a significant increase and extended aging of trade receivables, a RMB 315 million secured loan to a third party, the repurchase and cancellation of 19.43 million shares during the period, and ongoing service and financial transactions with related parties, primarily Dexin China Group controlled by the ultimate controlling shareholder Mr. Hu Yiping Trade Receivables Aging Analysis (RMB Thousand) | Aging | June 30, 2024 | December 31, 2023 | | :--- | :--- | :--- | | 0 to 180 days | 219,371 | 199,338 | | 181 to 365 days | 127,463 | 44,145 | | Over 1 year | 161,377 | 173,729 | | **Total** | **508,211** | **417,110** | - As of June 30, 2024, the company had a loan to a third party with a principal amount of approximately **RMB 315 million**, secured by parking spaces valued at no less than **RMB 600 million**, bearing an annual interest rate of **5%**, and due for repayment in December 2024[154](index=154&type=chunk)[155](index=155&type=chunk) - For the period ended June 30, 2024, the Group repurchased and cancelled **19,427,000** ordinary shares, with a total payment of approximately **RMB 35.28 million**[163](index=163&type=chunk)[164](index=164&type=chunk) - The Group has significant transactions with related parties, primarily Dexin China Group and its joint ventures/associates, with revenue from services provided to them amounting to **RMB 17.18 million** in H1 2024, and trade receivables from Dexin China Group totaling **RMB 89.24 million** at period-end[172](index=172&type=chunk)[176](index=176&type=chunk)

Financial Summary and Performance Overview [Financial Summary](index=1&type=section&id=Financial%20Summary) Dexin Services saw modest revenue growth in H1 2024, but profitability significantly declined with double-digit drops in key metrics and no interim dividend declared Key Performance Indicators for H1 2024 | Indicator | H1 2024 | H1 2023 | YoY Change | | :--- | :--- | :--- | :--- | | Revenue (RMB million) | Approx. 473.2 | Approx. 458.0 | +3.3% | | Gross Profit (RMB million) | Approx. 101.5 | Approx. 129.2 | -21.4% | | Profit for the Period (RMB million) | Approx. 42.5 | Approx. 63.3 | -32.8% | | Gross Margin (%) | 21.5% | 28.2% | -6.7 ppt | | Basic Earnings Per Share (RMB yuan) | 0.045 | 0.065 | -30.8% | | GFA Under Management (million sq.m.) | 39.6 | 36.2 | +9.2% | | Contracted GFA (million sq.m.) | 44.9 | 44.2 | +1.5% | | Interim Dividend | Not Recommended | N/A | - | [Condensed Consolidated Financial Statements](index=2&type=section&id=Condensed%20Consolidated%20Financial%20Statements) Financial statements show revenue growth but declining profitability due to cost pressures, while asset and liability structures remain stable [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=2&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) Revenue grew 3.3% to RMB 473 million, but increased cost of sales and impairment losses led to a 21.4% drop in gross profit and a 33.1% decline in net profit attributable to owners Condensed Consolidated Statement of Profit or Loss (For the six months ended June 30) | Item (RMB thousand) | 2024 (Unaudited) | 2023 (Unaudited) | YoY Change | | :--- | :--- | :--- | :--- | | Revenue | 473,228 | 458,022 | +3.3% | | Cost of Sales | (371,697) | (328,847) | +13.0% | | **Gross Profit** | **101,531** | **129,175** | **-21.4%** | | Administrative Expenses | (39,748) | (50,125) | -20.7% | | Impairment Loss on Trade and Other Receivables | (10,964) | (10,156) | +8.0% | | **Operating Profit** | **46,783** | **69,212** | **-32.4%** | | **Profit for the Period** | **42,484** | **63,255** | **-32.8%** | | **Profit Attributable to Owners of the Company** | **42,169** | **63,015** | **-33.1%** | | **Basic Earnings Per Share (RMB yuan)** | **0.045** | **0.065** | **-30.8%** | [Condensed Consolidated Statement of Financial Position](index=4&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2024, total assets increased to RMB 1.512 billion, driven by receivables, with total liabilities rising to RMB 747 million, maintaining a healthy 2.0x current ratio Summary of Condensed Consolidated Statement of Financial Position | Item (RMB thousand) | June 30, 2024 (Unaudited) | December 31, 2023 (Audited) | Change | | :--- | :--- | :--- | :--- | | **Total Assets** | **1,511,957** | **1,424,649** | **+6.1%** | | Current Assets | 1,481,015 | 1,395,350 | +6.1% | | **Total Liabilities** | **746,533** | **665,616** | **+12.2%** | | Current Liabilities | 736,510 | 655,599 | +12.3% | | **Net Assets** | **765,424** | **759,033** | **+0.8%** | | **Equity Attributable to Owners of the Company** | **749,659** | **742,766** | **+0.9%** | Chairman's Statement and Management Discussion and Analysis [Chairman's Statement](index=15&type=section&id=Chairman%27s%20Statement) The Chairman highlighted the Group's strategic shift towards high-quality development, focusing on product and service capabilities, independent expansion in the Yangtze River Delta, operational efficiency, customer-centricity, and innovation - Company strategy shifts towards high-quality development, emphasizing product and service capabilities over mere scale expansion[27](index=27&type=chunk) - Maintaining independent development, deepening presence in the Yangtze River Delta, and focusing on non-residential sectors, exploring cooperation with local SOEs and leading enterprises[28](index=28&type=chunk) - Implementing lean operations, adhering to the principle of "cash before profit, profit before scale," and enhancing per capita efficiency through organizational restructuring[29](index=29&type=chunk) - Continuously innovating services, upgrading high-end commercial service brand "World Union Property," venturing into new energy, and expanding diversified community services[31](index=31&type=chunk) [Management Discussion and Analysis](index=17&type=section&id=Management%20Discussion%20and%20Analysis) Management reviewed H1 performance, highlighting property management growth offset by declines in non-owner and community value-added services due to market downturns, impacting profitability despite controlled administrative expenses and stable financials [Financial and Business Review](index=18&type=section&id=Financial%20and%20Business%20Review) H1 total revenue grew 3.3% but with significant segment divergence, leading to a gross margin drop from 28.2% to 21.5% and a 32.8% decline in net profit despite controlled administrative expenses Revenue Breakdown by Business Segment (For the six months ended June 30) | Business Segment | 2024 Revenue (RMB thousand) | Revenue Share (%) | 2023 Revenue (RMB thousand) | Revenue Share (%) | YoY Change | | :--- | :--- | :--- | :--- | :--- | :--- | | Property Management Services | 413,438 | 87.4% | 341,844 | 74.6% | +20.9% | | Non-Owner Value-Added Services | 19,835 | 4.2% | 59,801 | 13.1% | -66.8% | | Community Value-Added Services | 39,955 | 8.4% | 56,377 | 12.3% | -29.1% | | **Total** | **473,228** | **100.0%** | **458,022** | **100.0%** | **+3.3%** | Gross Margin by Business Segment (For the six months ended June 30) | Business Segment | 2024 Gross Margin (%) | 2023 Gross Margin (%) | Change (ppt) | | :--- | :--- | :--- | :--- | | Property Management Services | 19.4% | 25.1% | -5.7 | | Non-Owner Value-Added Services | 19.2% | 35.1% | -15.9 | | Community Value-Added Services | 44.0% | 39.5% | +4.5 | | **Overall Gross Margin** | **21.5%** | **28.2%** | **-6.7** | - Non-owner value-added services revenue and gross margin significantly declined, primarily due to the ongoing downturn in the real estate industry, leading to a sharp drop in demand from developer partners and increased service costs for the company[42](index=42&type=chunk)[49](index=49&type=chunk) - Administrative expenses decreased by **RMB 10.4 million** year-on-year, mainly due to organizational restructuring and optimized staffing[53](index=53&type=chunk) - Impairment loss provisions for trade and other receivables increased to **RMB 11.0 million** due to prudence and credit risk in the real estate sector[54](index=54&type=chunk) [Liquidity and Capital Resources](index=26&type=section&id=Liquidity%20and%20Capital%20Resources) The Group maintains a robust financial position with ample liquidity, evidenced by RMB 202 million in cash and equivalents, a 2.0x current ratio, and a low 0.04 capital gearing ratio Key Liquidity and Capital Indicators | Indicator | June 30, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Cash and Cash Equivalents (RMB million) | 202.1 | 229.7 | | Current Ratio (x) | 2.0 | 2.1 | | Total Borrowings (RMB million) | 27.0 | 27.0 | | Capital Gearing Ratio (x) | 0.04 | 0.04 | [Significant Investments and Future Plans](index=27&type=section&id=Significant%20Investments%20and%20Future%20Plans) No new significant investments were made, and a major connected transaction announced in August 2023 remains uncompleted due to a cancelled shareholder meeting, while the company plans to use IPO proceeds for future property management acquisitions - A significant connected transaction announced in August 2023 to acquire target parking spaces and hotel equity remains uncompleted due to Dexin China's cancellation of the relevant shareholder meeting, introducing uncertainty[65](index=65&type=chunk)[66](index=66&type=chunk) - The Group plans to use a portion of the net IPO proceeds for acquiring or investing in other property management companies to expand business scale and market share[67](index=67&type=chunk) [Employees and Remuneration Policy](index=28&type=section&id=Employees%20and%20Remuneration%20Policy) As of June 30, 2024, the Group's employee count decreased to 2,703, reflecting cost optimization, with total staff costs of RMB 145.3 million for H1, supported by performance-linked remuneration and training - As of June 30, 2024, the Group's employee count was **2,703**, a decrease of 239 from end-2023[69](index=69&type=chunk) - Total staff costs for H1 2024 were **RMB 145.3 million**[69](index=69&type=chunk) Other Information [Use of Proceeds from Global Offering](index=30&type=section&id=Use%20of%20Proceeds%20from%20Global%20Offering) The company updated IPO proceeds usage, reallocating funds for a secured loan to enhance efficiency, with HKD 143.4 million remaining unutilized as of June 30, 2024, expected to be fully deployed by December 2024 - In 2022, the company reallocated part of its IPO proceeds, using **HKD 342.9 million** (approx. **RMB 315 million**) to provide a secured loan to an independent third party to enhance returns on idle funds[72](index=72&type=chunk) Use of Proceeds and Application (As of June 30, 2024) | Purpose | Revised Allocation (HKD million) | Utilized During Reporting Period (HKD million) | Unutilized Balance (HKD million) | | :--- | :--- | :--- | :--- | | 1. Business Expansion | 83.7 | 1.3 | 82.4 | | 2. Expansion of Service Offerings | 7.1 | 0.0 | 0.0 | | 3. Investment in Information Technology | 70.2 | 3.1 | 57.4 | | 4. Human Resources | 12.7 | 4.2 | 3.6 | | 5. Working Capital | 7.5 | 0.0 | 0.0 | | 6. Loan to Borrower | 342.9 | 0.0 | 0.0 | | **Total** | **524.1** | **8.6** | **143.4** | [Share Repurchases](index=32&type=section&id=Purchase%2C%20Redemption%20or%20Sale%20of%20Listed%20Securities%20of%20the%20Company) The company actively repurchased and cancelled 19,427,000 shares for approximately HKD 38.51 million during the period, enhancing earnings per share and shareholder value H1 2024 Share Repurchase Details | Month of Transaction | Total Shares Repurchased | Highest Price Per Share (HKD) | Lowest Price Per Share (HKD) | Total Consideration Paid (HKD) | | :--- | :--- | :--- | :--- | :--- | | March | 3,781,000 | 2.00 | 2.00 | 7,562,000 | | April | 5,940,000 | 2.00 | 1.99 | 11,878,970 | | May | 9,706,000 | 2.00 | 1.81 | 19,069,110 | | **Total** | **19,427,000** | - | - | **38,510,080** | [Corporate Governance and Compliance](index=32&type=section&id=Compliance%20with%20the%20Corporate%20Governance%20Code) The company confirmed compliance with all applicable Corporate Governance Code provisions, with directors' securities transactions adhering to standards, and the Audit Committee reviewing the unaudited financial statements - The company complied with all applicable code provisions of the Corporate Governance Code for the six months ended June 30, 2024[77](index=77&type=chunk) - The company's Audit Committee reviewed the Group's unaudited condensed consolidated interim results[79](index=79&type=chunk)

Revenue Performance - Revenue from community resources value-added services decreased by 32.1% to RMB108.6 million in 2023 compared to RMB160.0 million in 2022[1][2] - Revenue from value-added services to non-property owners decreased by 43.9% to RMB106.1 million in 2023[8] - Revenue from property-based services increased by 21.5% to RMB740.8 million in 2023 compared to the previous year[16] - Revenue from properties developed by independent third-parties accounted for 50.9% of total revenue in 2023, generating RMB377.4 million[12] - Revenue from preliminary planning and design consultancy services decreased to RMB 61.465 million in 2023, down from RMB 114.191 million in 2022, with a revenue share of 57.9%[28] - Property inspection and repair services revenue increased to RMB 37.614 million in 2023, up from RMB 48.762 million in 2022, with a revenue share of 35.5%[28] - Commercial consulting services revenue significantly dropped to RMB 94,000 in 2023 from RMB 17.041 million in 2022, with a revenue share of only 0.1%[28] - Revenue from smart community solutions decreased to RMB11.1 million in 2023, down from RMB28.8 million in 2022, a reduction of RMB17.7 million[70] - Total revenue from property management services and value-added services reached RMB955.58 million in 2023, with property management services accounting for 77.5% of the total revenue[72] - Revenue from property sales and assistance services decreased to RMB9.7 million in 2023, down by RMB16.3 million from RMB26.0 million in 2022[85] - Revenue from community retail and home service decreased to RMB28.8 million in 2023, down by RMB7.3 million from RMB36.1 million in 2022[86] - Group revenue for 2023 was RMB955.6 million, a 0.3% decrease from RMB958.6 million in 2022[87] - Property management service revenue increased to RMB740.8 million in 2023, up by RMB131.1 million from 2022[90] - Revenue from community resources value-added services increased to RMB31.6 million in 2023, up by RMB0.7 million from RMB30.9 million in 2022[93] - Non-property owner value-added services revenue decreased by 43.9% to RMB106.1 million in 2023[97] - Smart community solutions revenue decreased to RMB11.1 million in 2023, down by RMB17.7 million from RMB28.8 million in 2022[100] Financial Performance - Total assets increased to RMB1,424.6 million in 2023 from RMB1,314.9 million in 2022, while total liabilities rose to RMB665.6 million from RMB533.7 million[6] - Gross profit for 2023 was RMB 226.039 million, a decrease of 16.7% year-on-year[47] - Profit for the period was RMB 62.497 million, a decrease of 50.0% year-on-year[47] - Gross profit margin declined to 23.7% in 2023 from 28.3% in 2022, while net profit margin dropped to 6.5% from 13.0%[75] - Gross profit margin decreased by 4.7% in 2023, primarily due to lower average property management fees and cost control challenges[91] Property Management and GFA - Total gross floor area (GFA) under management increased by 13.6% to 39.2 million sq.m. in 2023 from 34.5 million sq.m. in 2022[9] - The company managed 161 properties developed by independent third-party developers, with a total GFA of approximately 21.8 million sq.m. as of December 31, 2023[10] - The company's total GFA under management reached approximately 39.2 million sq.m. in 2023, representing a 13.6% increase from 34.5 million sq.m. in 2022[27] - The company managed 161 properties developed by independent third-party developers, with a total GFA of approximately 21.8 million sq.m. as of December 31, 2023[30] - The company's contracted GFA at the end of 2023 was 44.702 million sq.m., with 333 contracted projects and 297 projects under management[30] - The company's GFA under management at the end of 2023 was 39.243 million sq.m., reflecting a net increase of 4.7 million sq.m. from 2022[30] - The Group's GFA under management reached 39.2 million sq.m., with a contracted GFA of 44.7 million sq.m. as of 31 December 2023[51] - Total property management contracted GFA decreased to 44,702,000 sq.m. in 2023 from 48,698,000 sq.m. in 2022, and total property management GFA under management increased to 39,243,000 sq.m. from 34,543,000 sq.m.[75] - Residential properties accounted for 65.3% of the total GFA under management in 2023, while non-residential properties accounted for 34.7%[96] Regional and Market Focus - The Zhejiang Province and Yangtze River Delta Region contributed 73.1% of total revenue, amounting to RMB541.4 million in 2023[14] - The company plans to focus on regional market cultivation, intelligent scene creation, and innovative service systems (AM, PM, IFM) to rebuild values[21] - The company aims to continue exploring service boundaries and become a creator of opportunities for service aesthetics and a builder of smart construction scenes[21] - The company's property management services expanded to 40 cities across China by the end of 2023[31] - The company's portfolio includes a diverse range of non-residential properties such as commercial complexes, office buildings, schools, hospitals, industrial parks, and municipal facilities[32] - The company expanded its geographic presence to 40 cities in China by the end of 2023[95] Strategic Vision and Service Quality - The Group's strategic vision is to be a "better life service provider," integrating basic property services with livelihood services[51] - The Group's service quality was recognized with a high-quality service certificate from the Asian Games Organising Committee[49] - The Group's operational efficiency and service-centric approach contributed to maintaining its leading position in the East China property service market[49] - The company was awarded the title of "Red Property" in Zhejiang Province and recognized for several projects as provincial-grade garden residential communities and municipal-grade property management demonstration communities[77] Share Repurchase and Financial Management - The company repurchased 33,453,000 shares for a total consideration of HKD93,204,500 in 2023, all of which were subsequently canceled[80] - The company repurchased 8,253,000 shares in April 2023 at a total consideration of HKD 24,021,700, with the highest price per share paid at HKD 2.94 and the lowest at HKD 2.74[135] - The company repurchased 12,877,000 shares in May 2023 at a total consideration of HKD 36,375,660, with the highest price per share paid at HKD 2.87 and the lowest at HKD 2.69[135] - The company repurchased 12,323,000 shares in July 2023 at a total consideration of HKD 32,807,140, with the highest price per share paid at HKD 2.70 and the lowest at HKD 2.60[135] - The company's loan receivables under non-current assets decreased from RMB 315,000 thousand in 2022 to RMB 0 in 2023[140] - The company's total unutilized net proceeds as of 31 December 2023 amounted to HKD 152.0 million, with an expected utilization timeline extended to December 2024[144] - The company allocated HKD 12.7 million for improving human resource management and enhancing corporate culture, with HKD 7.8 million still unutilized as of 31 December 2023[144] - The company allocated HKD 7.5 million for working capital and other general corporate purposes, with HKD 0.0 million still unutilized as of 31 December 2023[144] - Net proceeds from the listing amounted to HK$763.5 million, with 65.0% (approximately HK$496.0 million) originally intended for business expansion and market share increase[159] - Unutilised net proceeds of HK$426.6 million are being deployed as a loan secured by Charged Assets with an appraised market value of approximately RMB630 million[159] - The expected timetable for utilisation of all net proceeds has been extended to December 2024 or earlier[159] Taxation and Financial Risks - Income tax provision for operations in Mainland China is calculated based on applicable tax rates and existing legislation[161][163] - Dividends distributed from PRC companies to foreign investors are subject to a 10% withholding income tax, with a potential lower rate of 5% under certain conditions[162] - The Group has not accrued any withholding income tax for undistributed earnings of its subsidiaries in Mainland China as there is no plan to distribute these earnings[162] - The Group's major non-RMB assets as of 31 December 2023 include cash and cash equivalents denominated in Hong Kong dollars amounting to RMB 1.59 million and in US dollars amounting to RMB 0.02 million[172] - The Group faces principal risks including uncertainty in securing new or renewing property management service agreements, potential difficulties in integrating acquired operations, and risks related to rising raw material prices and labor costs[172] - The Group's financial risk is primarily due to foreign exchange rate risk, as the majority of its operations are conducted in the PRC and denominated in Renminbi[172] - The Group does not currently have a foreign currency hedging policy but manages its foreign exchange risk by closely monitoring exchange rate movements[172] Corporate Governance and Leadership - Mr. Hu, with over 25 years of experience in the PRC real estate industry, has been the director and chairman of Dexin Real Estate Group Co., Ltd. since its establishment in September 1995[119] - Mr. Tang Junjie, appointed as executive Director and president on 31 December 2020, is responsible for the formulation and implementation of the business strategy, annual operation planning, and financial planning of the Group[121] - Ms. Zheng Peng, appointed as the executive director since 14 April 2023, has over 17 years of experience in accounting and financial management and is responsible for the Group's financial management affairs[122] - The company emphasizes talent management, focusing on high standards, reasonable quantity control, and high resilience in talent selection[117] - Ms. Zhao Lixiang was appointed as the chief human resources officer in June 2013, responsible for human resources and administration affairs[130] - Ms. Zhao Lixiang has over 21 years of experience in human resources and administration, including roles at various companies such as Huasheng Construction Group and Zhejiang Jinke Daily Chemical Raw Materials Co., Ltd.[131] - Mr. Wu Zhexiao joined the Group in March 2021 as the general manager of the investment development center, responsible for market strategic planning and capital market operations[132] - Mr. Wu Zhexiao previously served as the manager of the investment and development department at Dehua Tubao New Decoration Material Co., Ltd. from July 2010 to August 2012[132] - Mr. Wu Zhexiao served as the secretary of the board of directors at Zhejiang Hongwei Supply Chain Group Co., Ltd. from September 2012 to February 2017[132] - Mr. Wu Zhexiao was appointed as the chairman of Hangzhou Sier Technology Co., Ltd. in October 2023[132] - Mr. Wu Zhexiao holds a Bachelor's degree in Finance from Jiangxi Normal University, obtained in 2010[132] - Mr. Rui served as an independent director for COSCO Shipping Energy Transportation Co., Ltd. from June 2015 to June 2021[126] - Mr. Rui served as an independent director for Shang Gong Group Co., Ltd. from April 2017 to May 2023[126] - Mr. Rui has been serving as an independent non-executive director and chairman of the audit committee for China Education Group Holdings Limited since August 2017[126] Share Option Scheme and AGM - The Share Option Scheme remains in force for 10 years from 15 July 2021, with options granted having a 10-year exercise period[182] - No options were granted, exercised, cancelled, or lapsed under the Share Option Scheme during the reporting period and up to the date of the annual report[183] - The 2023 Annual General Meeting is scheduled to be held on 29 May 2024, with the notice and related documents to be issued and sent to shareholders in April 2024[185] - The Group's directors and senior management compensation is determined by the Board based on recommendations from the Remuneration Committee[188] - No other payments were made or are payable by the Group to or on behalf of any of the Directors for the year ended 31 December 2023, except as disclosed in the annual report[190] Loans and Financial Agreements - Outstanding loan to a third party with a principal amount of RMB315,000,000 as of 31 December 2023[193] - The loan is secured by car parking spaces with an appraised value of approximately RMB630 million[193] - Annual interest rate for the loan ranges from 5% to 8%[193] - The loan is repayable by December 2024[193] - The borrower is Hangzhou Ruiyang Supply Chain Management Co., Ltd., a business partner of the company[193] - The lender is Shanghai Xuquan Trading Co., Ltd., an indirect wholly-owned subsidiary of the company[193] - The annual cap for property management and related services under the Dexin China Property Management and Related Services Master Agreement was RMB108.4 million for the year ended 31 December 2023[199] - The initial term of the Dexin China Property Management and Related Services Master Agreement was from the listing date to 31 December 2023, with the possibility of extension by mutual agreement[199]