Core Viewpoint - The strategic cooperation agreement between Zhong An Smart Life and Shenzhen Mai Guang Huo Supply Chain Co., Ltd. aims to enhance supply chain management, brand operation, and resource sharing, thereby improving competitiveness in the Chinese market and beyond [1][2]. Group 1: Strategic Cooperation Details - The agreement includes collaboration in optimizing and innovating various aspects of the supply chain, such as business models, team management, and product management [1]. - Both parties will explore market resources, including brand operation, channel expansion, and customer resource sharing [1]. - The cooperation will promote synergy between Mai Guang Huo's e-commerce platform and the group's lifestyle service platform, enhancing market influence [1]. Group 2: Company Background and Benefits - Mai Guang Huo, established in 2022, provides comprehensive product supply chain services and enterprise management consulting services [1]. - The e-commerce platform operated by Mai Guang Huo facilitates B2B and B2C transactions and has a network of enterprise clients and supply chain resources [1]. - The board believes that the strategic cooperation will create more business opportunities, enhance customer experience and quality in management consulting and supply chain services, and promote diversified business development [2].

董事会相信，订立战略合作协议能为集团带来更多良好业务机遇，并让集团发挥集团及卖光货各自的优 势及╱或资源，有助提升集团企业管理谘询服务及产品供应链服务的客户体验及品质，促进集团业务多 元化发展，符合公司及其股东的整体利益。 众安智慧生活(02271)公布，该公司与深圳市卖光货供应链有限公司(卖光货)于2025年7月28日(交易时段 后)订立战略合作协议，据此，该公司及卖光货同意在供应链管理、供应链服务、品牌运营及供应链资 本规划等领域建立战略合作关系，发挥公司及卖光货的互补业务优势。 ...

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告之內容概不 負責，對其準確性或完整性亦不發表任何聲明，並明確表示，概不對因本公告 全部或任何部分內容而產生或因依賴該等內容而引致之任何損失承擔任何責 任。 众安智慧生活服务有限公司 Zhong An Intelligent Living Service Limited （於開曼群島註冊成立的有限公司） 本公告是由众安智慧生活服务有限公司（「本公司」，連同其附屬公司統稱「本 集團」）自願刊發，以讓本公司股東及潛在投資者知悉本集團的最新業務發展。 戰略合作協議 本公司董事會（「董事會」）欣然宣佈，本公司與深圳市賣光貨供應鏈有限公司 （「賣光貨」）於2025年7月28日（交易時段後）訂立戰略合作協議（「戰略合作協 議」），據此，本公司及賣光貨同意在供應鏈管理、供應鏈服務、品牌運營及供 應鏈資本規劃等領域建立戰略合作關係（「戰略合作」），發揮本公司及賣光貨 的互補業務優勢。 1 根據戰略合作協議，本公司及賣光貨同意在以下領域展開合作，包括： 通過戰略合作，雙方將整合資源，發揮協同發展的優勢，提升雙方在中國市場 及其他潛在市場的競爭力。 訂立戰略合作協議的理由及裨 ...

Financial Performance - The company reported a revenue of $500 million for the fiscal year ended December 31, 2023, representing a 15% increase compared to the previous year[13]. - The company provided guidance for the next fiscal year, projecting a revenue increase of 10% to $550 million[13]. - For the year ended December 31, 2024, the Group's revenue was approximately RMB 412.2 million, representing an increase of approximately 17.4% compared to RMB 351.1 million in 2023[20]. - Revenue from property management services for the year ended December 31, 2024, was RMB 347.218 million, with residential properties contributing 77.6% and non-residential properties 22.4%[52]. - The total revenue from property management services for the year ended December 31, 2024, was approximately RMB 347.2 million, an increase from RMB 261.2 million in 2023, representing a growth of 32.9%[87]. User Growth and Market Expansion - User data showed a growth of 20% in active users, reaching 2 million by the end of 2023[13]. - Market expansion plans include entering three new regions in Asia, projected to increase user base by 25%[13]. - The Group had 17 new projects under management as of December 31, 2024, marking a 15.0% increase[23]. - The total area under management increased by approximately 3.6 million sq. m., representing a growth of 21.7%[23]. - As of December 31, 2024, the Group had 145 contracted projects covering approximately 21.75 million sq.m. across 21 cities and eight provinces in China[47]. Profitability and Cost Management - The gross margin improved to 40%, up from 35% in the previous year, due to cost optimization strategies[13]. - Operating expenses were reduced by 5%, totaling $200 million, contributing to overall profitability[13]. - Gross profit for the year was RMB 120.3 million, reflecting a slight increase of 1.24% from RMB 118.8 million in the previous year[20]. - The Group's net profit was approximately RMB 37.3 million, representing a decrease of 24.5% from RMB 49.4 million in the 2023 Same Period, resulting in a net profit margin of 9.1%[113][119]. - The cost of sales for the Group increased by 25.7% to approximately RMB 292.0 million in 2024, compared to RMB 232.3 million in 2023, outpacing revenue growth by 8.3 percentage points[102]. Strategic Initiatives and Investments - The company is investing $30 million in research and development for new technologies aimed at enhancing user experience[13]. - The company is considering strategic acquisitions to enhance its service offerings, with a budget of $100 million allocated for potential deals[13]. - The Group is actively developing new business models and exploring growth opportunities through strategic cooperation with state-owned enterprises[29]. - The Group intends to utilize part of the net proceeds from the listing to acquire or invest in other property management companies to expand its business scale and market share[136]. - The Group is increasing investment in Internet of Things technologies to improve operational efficiency and service decision-making precision[151]. Service Quality and Customer Satisfaction - The Group implemented dual initiatives of "Quality Supervision Officer" and "General Manager Reception Day" to improve service quality and customer satisfaction[31]. - The Group aims to enhance customer satisfaction by implementing the "Service Quality Leap Scheme," focusing on responsiveness, service standards, and employee empowerment[147]. - The Group's management system has been optimized to enhance service standardization and employee training, improving overall service quality[31]. - The Group aims to transition from a traditional property service provider to a trusted intelligent lifestyle service provider, focusing on core homeowner needs[37]. - The Group's strategic shift from "property services" to "asset management" is being accelerated to address cost pressures and enhance service transparency[152]. Corporate Governance - The company has complied with all applicable corporate governance code provisions during the year ended December 31, 2024[188]. - The Audit Committee has confirmed that the consolidated financial statements for the year ended December 31, 2024, comply with all applicable accounting principles and standards[180]. - The company has established three Board Committees, including the Audit Committee, to oversee various aspects of its affairs[189]. - The Board consists of five executive Directors and three independent non-executive Directors, ensuring compliance with Listing Rules regarding board composition[195]. - The Company is committed to high standards of corporate governance to protect shareholder interests and enhance corporate value[192].

Dividend Proposal - The board proposed a final dividend of RMB 1.89 per share for the year ending December 31, 2024, subject to shareholder approval at the annual general meeting on June 5, 2025[5] Financial Confirmation - The financial figures for the year ending December 31, 2024, have been confirmed by Ernst & Young, aligning with the consolidated financial statements of the group[4] Information Integrity - The announcement does not alter any other information contained in the annual results announcement, maintaining the integrity of previously disclosed data[5]

Financial Performance - Revenue for the year ended December 31, 2024, was RMB 412,238,000, representing a 17.40% increase from RMB 351,133,000 in 2023[2] - Gross profit for the same period was RMB 120,282,000, a slight increase of 1.24% compared to RMB 118,814,000 in 2023[3] - Net profit for the year decreased by 24.45% to RMB 37,341,000 from RMB 49,424,000 in 2023[3] - Basic and diluted earnings per share decreased to RMB 0.074 from RMB 0.112 in 2023, a decline of 33.93%[3] - The company’s net profit attributable to equity holders for 2024 was RMB 38,067,000, down from RMB 49,346,000 in 2023, representing a decline of approximately 22.8%[29] - The pre-tax profit for 2024 was RMB 199,423,000, slightly down from RMB 201,583,000 in 2023, indicating a decrease of about 1.0%[24] - The net profit for the group was approximately RMB 37.3 million in 2024, a decrease of 24.5% from RMB 49.4 million in 2023, resulting in a net profit margin of 9.1%[63] Revenue Breakdown - Revenue from property management services was RMB 347,218,000 in 2024, up 32.9% from RMB 261,200,000 in 2023[18] - Revenue from value-added services targeting real estate developers decreased to RMB 36,815,000 in 2024 from RMB 58,069,000 in 2023, a decline of 36.6%[18] - Revenue from community value-added services was RMB 28,205,000 in 2024, slightly down from RMB 31,864,000 in 2023, a decrease of 11.8%[18] - The company’s residential property management revenue for 2024 was RMB 269,444,000, accounting for 77.6% of total revenue, compared to RMB 182,859,000 and 70.0% in 2023[39] - Revenue from property management services accounted for 84.2% of total revenue in 2024, up from 74.4% in 2023[46] Assets and Liabilities - Total assets increased by 14.57% to RMB 469,846,000 from RMB 410,085,000 in 2023[2] - Net assets rose by 8.95% to RMB 299,343,000 compared to RMB 274,756,000 in 2023[2] - Cash and cash equivalents decreased to RMB 137,178,000 from RMB 177,306,000 in 2023[4] - Trade receivables increased significantly to RMB 153,294,000 from RMB 116,534,000, reflecting a growth of 31.52%[4] - The company’s trade payables rose significantly to RMB 24,530,000 in 2024 from RMB 1,868,000 in 2023, indicating a substantial increase in liabilities[34] - Trade receivables and other assets increased by approximately 26.2% to RMB 214.9 million as of December 31, 2024, compared to RMB 170.3 million as of December 31, 2023[64] Expenses - Administrative expenses increased to RMB 60,092,000 from RMB 49,545,000, marking a rise of 21.00%[3] - The sales cost increased by 25.7% to approximately RMB 292.0 million in 2024, compared to RMB 232.3 million in 2023, with the increase attributed to expanded property management operations[58] - Administrative expenses rose to approximately RMB 60.1 million in 2024, up 21.4% from RMB 49.5 million in 2023, with an administrative expense ratio of 14.6%[61] Dividends - The company proposed a final dividend of RMB 1.89 per share for 2024, down from RMB 2.45 per share in 2023, resulting in a total proposed dividend of RMB 9,761,000 compared to RMB 12,653,000 in the previous year[28] - The proposed final dividend is RMB 0.0189 per share for the year ended December 31, 2024, down from RMB 0.0245 per share in 2023[82] Operational Highlights - The company reported a total of 145 contract projects with a managed area of approximately 21.75 million square meters across 21 cities and eight provinces in China as of December 31, 2024[39] - The company achieved a ranking of 37th among China's top property service companies in 2024, up from 82nd in 2016, demonstrating significant improvement in property management capabilities[37] - The total managed building area increased to approximately 20.0 million square meters, a growth rate of 22.0% from 16.4 million square meters in 2023[47] - The company managed 130 properties as of December 31, 2024, with a total building area of 19.998 million square meters, compared to 113 properties and 16.427 million square meters in 2023[50] - The number of residential properties managed increased from 87 in 2023 to 117 in 2024, with the managed area growing from 13,864 thousand square meters to 18,262 thousand square meters[51] Strategic Initiatives - The company plans to launch a smart service platform in 2024, integrating smart fire protection, security systems, and online reporting services[42] - The company is diversifying its value-added services, including new offerings such as pet services in 2024, enhancing the community service ecosystem[43] - The company is focusing on strategic partnerships with state-owned enterprises to establish a foundation for business growth[41] - The company has increased its focus on second-tier cities, which accounted for 57.1% of the total managed building area in 2024[50] - The company aims to enhance service quality through standardized training and management practices, improving customer satisfaction[42] - The company aims to enhance customer satisfaction through a "Service Quality Leap Plan" focusing on demand response, service standards, and personnel empowerment[76] - The company is committed to upgrading its service quality and customer experience through various initiatives, including community cultural festivals and neighbor assistance programs[79] Compliance and Governance - The audit committee, consisting of three independent non-executive directors, has reviewed the consolidated financial statements for the year ending December 31, 2024, confirming compliance with applicable accounting principles and sufficient disclosures[88] - The audit committee is chaired by an independent non-executive director with appropriate professional accounting and financial management expertise[88] - The company has no significant contingent liabilities as of December 31, 2024, maintaining a stable financial position[36] - The company has no significant investments, acquisitions, or disposals of subsidiaries, associates, or joint ventures during the reporting period[71] - The company has no contingent liabilities or mortgaged assets as of December 31, 2024[70] Shareholder Information - The company will suspend share transfer registration from June 16 to June 19, 2025, to determine eligibility for the proposed final dividend, requiring unregistered shareholders to submit transfer documents by June 13, 2025, at 4:30 PM[84] - The company and its subsidiaries did not purchase, sell, or redeem any of its shares for the year ending December 31, 2024[86] - The annual report will be sent to shareholders and published on the company's website at an appropriate time[89]

Summary of Conference Call Records Industry Overview - The records primarily focus on the property management industry in Hong Kong and mainland China, highlighting the performance of various property service companies and market dynamics. Key Points and Arguments Market Performance - In July, the Hang Seng Index closed at 17,344.60 points, down 2.11%, a total decline of 374.01 points [1] - 17 property service companies saw an increase in stock prices, with 28 companies outperforming the Hang Seng Index [1] - Pujiang China had the highest increase at 20.63%, followed by Jingfa Property with a 20.03% rise [1] New Projects and Bidding Information - In July, 4,405 new land projects were added in key cities, covering a planned construction area of 186.66 million square meters [3] - Among these, 1,597 were residential projects, 808 were commercial office projects, and 2,372 were industrial projects [3] - The Beijing-Tianjin-Hebei and Guangdong-Hong Kong-Macau regions published 6,380 property-related bidding information, with non-residential projects accounting for a significant portion [5] Company Developments - Greentown Service Group and Shangyu Urban Construction Group signed a cooperation agreement to establish a joint venture for urban operation services [8] - Greentown Property Service Group and Jinan Urban Investment Group signed a partnership to create a high-end property service brand in Jinan [10] - Agile Property held a mid-year summary meeting focusing on operational and quality achievements, aiming for continuous improvement in service quality [13] Industry Recognition and Awards - Binjiang Property was recognized as an excellent enterprise in the 2024 China Urban Property Service Satisfaction Survey, ranking first in Hangzhou, Jinhua, and Jiaxing [38] - The Rainbow Property Group's Xixi New Seat project was awarded the title of "2024 Property Service Industry Demonstration Base" [47] Emergency Preparedness and Community Engagement - Hua Chuang Service prepared for Typhoon "Gemi" by mobilizing teams for emergency response and community safety [23] - Various property management companies engaged in community service activities, such as providing cooling refreshments during heatwaves and organizing neighborhood events [44] Technological Innovations - Xin Yuan Service showcased its advancements in smart property management at the 2024 China International Property Management Expo, emphasizing the integration of technology in service delivery [14][34] Employee Development and Training - Multiple companies, including De Xin Service Group, emphasized the importance of employee training and skill competitions to enhance service quality and operational efficiency [19][37] Other Important but Possibly Overlooked Content - The records indicate a trend towards collaboration among property service companies to enhance service offerings and operational efficiency [10][19] - There is a growing emphasis on community engagement and social responsibility within the property management sector, reflecting a shift towards more holistic service models [8][23] - The impact of local government policies on property management practices and dispute resolution was noted, particularly in Sichuan Province [7] This summary encapsulates the key insights and developments within the property management industry as reflected in the conference call records.

Management Discussion and Analysis [Company Overview and Business Scale](index=7&type=section&id=OVERVIEW%20OF%20THE%20COMPANY) The company, a comprehensive property management service provider, expanded its business to manage 123 projects and 18.03 million square meters by June 2024, supported by its parent company and third-party clients - The company's ranking among "China's Top 100 Property Service Enterprises" improved from **82nd in 2016 to 37th in 2024**, indicating enhanced comprehensive strength and management capabilities[9](index=9&type=chunk)[11](index=11&type=chunk) Business Scale Overview (As of June 30, 2024) | Metric | Quantity | | :--- | :--- | | Contracted Projects | 144 | | Contracted Area | Approx. 21.76 million sq.m. | | Projects Under Management | 123 | | Area Under Management | Approx. 18.03 million sq.m. | | Business Coverage | 20 cities, 8 provinces | - Parent company Zhong An Group (Remaining Group) holds approximately **29 projects under construction or development** with a total GFA of **5.95 million square meters**, of which the company has secured service agreements for **17 projects** (total GFA **3.04 million square meters**), ensuring stable future growth[10](index=10&type=chunk)[12](index=12&type=chunk) [Business Strategy and Services](index=8&type=section&id=Business%20Strategy) The company offers diversified services, balancing residential and non-residential properties, expanding through strategic partnerships and consulting, while investing in smart services and community value-added offerings - The company's business covers both residential and non-residential properties, including commercial office buildings, serviced apartments, government office buildings, industrial parks, hospitals, and schools, aiming for balanced development and enhanced brand reputation[13](index=13&type=chunk)[15](index=15&type=chunk) - In smart services, the company is actively building a smart management platform to integrate existing equipment for intelligent management, services, and decision-making, while promoting smart fire safety, security systems, and various service robots[14](index=14&type=chunk) [Future Outlook](index=9&type=section&id=Future%20Outlook) The company plans to adhere to its "1+9" strategy, focusing on core property services and expanding nine value-added businesses, aiming for continued growth in Zhejiang and the Yangtze River Delta through organic expansion and M&A, particularly in non-residential sectors - Adhering to the "1+9" strategy, the company will focus on basic services while integrating community resources around "people, assets, and scenarios" to vigorously develop community living services and build a multi-format, full-lifecycle service product platform[18](index=18&type=chunk) - The company plans to consolidate its market position in Zhejiang Province and expand market share in operating cities through organic business development and acquisitions of quality property management enterprises, while also expanding into non-residential formats such as government office buildings, industrial parks, and hospitals[18](index=18&type=chunk) [Financial Review](index=10&type=section&id=FINANCIAL%20REVIEW) In H1 2024, total revenue grew 9.9% to RMB 182.1 million, driven by a 24.1% increase in property management services, but a 43.0% decline in value-added services for developers and rising staff costs led to a gross margin decrease from 33.8% to 31.7% and a 7.5% net profit decline to RMB 14.3 million, despite a robust financial position with no bank borrowings [Revenue Analysis](index=10&type=section&id=Revenue) Total revenue for the period was RMB 182.1 million, up 9.9% year-on-year, primarily driven by a 24.1% increase in property management services to RMB 153.4 million, while value-added services for developers significantly declined by 43.0% Revenue Composition (Six Months Ended June 30) | Business Segment | 2024 Revenue (RMB thousands) | 2024 Share | 2023 Revenue (RMB thousands) | 2023 Share | YoY Change | | :--- | :--- | :--- | :--- | :--- | :--- | | Property Management Services | 153,423 | 84.2% | 123,614 | 74.6% | +24.1% | | Value-added Services to Property Developers | 18,099 | 10.0% | 31,731 | 19.1% | -43.0% | | Community Value-added Services | 10,623 | 5.8% | 10,415 | 6.3% | +2.0% | | **Total** | **182,145** | **100.0%** | **165,760** | **100.0%** | **+9.9%** | - The growth in property management service revenue was primarily due to a **25.0% increase in total GFA under management**, from **14.4 million square meters** in the prior period to **18.0 million square meters**, mainly driven by projects delivered by the Remaining Group[21](index=21&type=chunk)[22](index=22&type=chunk) - The significant decrease in value-added services for developers was primarily due to reduced management services for property sales offices and fewer such services provided to the Remaining Group[30](index=30&type=chunk)[31](index=31&type=chunk) [Portfolio of Properties Under Management Analysis](index=11&type=section&id=Portfolio%20of%20Properties%20under%20Management) As of June 30, 2024, the company managed a total GFA of 18.03 million square meters, with over half of the managed area and nearly 70% of property management revenue originating from the Remaining Group and its associates, while residential properties remain dominant, accounting for 85.2% of managed area and 72.9% of revenue, as the company continues to expand non-residential properties Property Management Business by Developer Source (H1 2024) | Source | Projects Under Management | Area Under Management (million sq.m.) | Revenue (RMB thousands) | Revenue Share | | :--- | :--- | :--- | :--- | :--- | | Remaining Group | 57 | 8.862 | 98,270 | 64.1% | | Joint Ventures/Associates of Remaining Group | 6 | 0.881 | 9,426 | 6.1% | | Independent Third-Party Developers | 60 | 8.287 | 45,727 | 29.8% | | **Total** | **123** | **18.030** | **153,423** | **100.0%** | Property Management Business by Property Type (H1 2024) | Property Type | Projects Under Management | Area Under Management (million sq.m.) | Revenue (RMB thousands) | Revenue Share | | :--- | :--- | :--- | :--- | :--- | | Residential Properties | 96 | 15.361 | 111,910 | 72.9% | | Non-Residential Properties | 27 | 2.669 | 41,513 | 27.1% | | **Total** | **123** | **18.030** | **153,423** | **100.0%** | [Profitability and Financial Position](index=14&type=section&id=Profitability%20and%20Financial%20Position) During the reporting period, gross profit slightly increased by 3.1% to RMB 57.7 million, but the gross margin decreased from 33.8% to 31.7% due to higher staff costs, leading to a 7.5% year-on-year decline in net profit to RMB 14.3 million and a net margin of 7.8%, while the company maintained a healthy financial position with RMB 148 million in cash and cash equivalents, a current ratio of 2.9 times, and no bank borrowings Gross Margin by Business Segment | Business Segment | H1 2024 | H1 2023 | | :--- | :--- | :--- | | Property Management Services | 30.0% | 31.2% | | Value-added Services to Property Developers | 41.2% | 41.3% | | Community Value-added Services | 40.1% | 41.5% | | **Overall Gross Margin** | **31.7%** | **33.8%** | - Cost of sales increased by **13.3% year-on-year**, outpacing revenue growth, primarily due to a **19.9% increase in staff costs** to **RMB 97.5 million**, which was the main driver of the overall gross margin decline[33](index=33&type=chunk)[35](index=35&type=chunk)[39](index=39&type=chunk) Key Profitability Indicators (Six Months Ended June 30) | Metric (RMB thousands) | 2024 (Unaudited) | 2023 (Unaudited) | YoY Change | | :--- | :--- | :--- | :--- | | Gross Profit | 57,711 | 55,970 | +3.1% | | Profit for the Period | 14,260 | 15,414 | -7.5% | | Profit Attributable to Owners of the Parent | 14,354 | 15,387 | -6.7% | | Basic Earnings Per Share | RMB 2.77 cents | RMB 2.97 cents | -6.7% | - As of June 30, 2024, the Group had **no bank borrowings**, a **zero debt-to-equity ratio** (total borrowings/total equity), and a **current ratio of 2.9 times**, indicating a robust financial structure and ample liquidity[44](index=44&type=chunk) Corporate Governance and Other Information [Use of Proceeds from Global Offering](index=18&type=section&id=USE%20OF%20PROCEEDS%20FROM%20THE%20GLOBAL%20OFFERING) The company received net proceeds of approximately HKD 104 million from its global offering and partial exercise of the over-allotment option, with HKD 1.2 million utilized by June 30, 2024, primarily for software/hardware upgrades and community value-added services, while the remaining funds, largely for strategic acquisitions, are expected to be fully used by December 2025 Use of Proceeds and Progress (As of June 30, 2024) | Purpose | Percentage | Available Amount (HKD millions) | Utilized Amount (HKD millions) | Unutilized Amount (HKD millions) | Expected Full Utilization | | :--- | :--- | :--- | :--- | :--- | :--- | | Strategic Acquisitions and Investments | 55.0% | 57.2 | 0 | 57.2 | Before December 2025 | | Software and Hardware Upgrades | 30.0% | 31.2 | 0.9 | 30.3 | Before December 2025 | | Expansion of Community Value-added Services | 15.0% | 15.6 | 0.3 | 15.3 | Before December 2025 | | **Total** | **100.0%** | **104.0** | **1.2** | **102.8** | - | [Interests of Directors and Shareholders](index=19&type=section&id=INTERESTS%20OF%20DIRECTORS%20AND%20SHAREHOLDERS) As of June 30, 2024, Mr. Shi Zhong'an, the company's Chairman, indirectly held 380 million shares, representing 73.4% of the issued share capital through his wholly-owned companies and Zhong An Group, making him the controlling shareholder, with no other directors or chief executives holding disclosable interests beyond what is disclosed - Mr. Shi Zhong'an (Mr. Shi), the company's Chairman, is deemed to be interested in **380,000,000 shares** of the company through corporations controlled by him (e.g., Zhong An BVI), representing approximately **73.4%** of the total share capital[63](index=63&type=chunk)[70](index=70&type=chunk) [Employees and Remuneration Policy](index=22&type=section&id=EMPLOYEES%20AND%20REMUNERATION%20POLICY) As of June 30, 2024, the Group had 2,991 employees, an increase from 2,845 in the prior year, and implements a performance-based remuneration system offering competitive packages including basic salary, performance bonuses, and year-end dividends, alongside continuous systematic training - As of June 30, 2024, the Group's total number of employees was **2,991**, an increase of approximately **5.1%** compared to **2,845** as of June 30, 2023[75](index=75&type=chunk)[79](index=79&type=chunk) [Dividends](index=23&type=section&id=DIVIDENDS) The Board of Directors does not recommend the payment of an interim dividend for the reporting period ended June 30, 2024, consistent with the policy for the same period last year - The Board does not recommend the payment of an interim dividend for 2024 (2023 interim: nil)[82](index=82&type=chunk) Interim Condensed Consolidated Financial Statements [Interim Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=27&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss) This statement presents the company's operating results for the reporting period, showing revenue of RMB 182.1 million and gross profit of RMB 57.71 million in H1 2024, with profit before tax decreasing to RMB 19.08 million and net profit for the period declining 7.5% to RMB 14.26 million due to increased administrative expenses and impairment losses on financial assets Statement of Profit or Loss Summary (Six Months Ended June 30) | Item (RMB thousands) | 2024 (Unaudited) | 2023 (Unaudited) | | :--- | :--- | :--- | | Revenue | 182,145 | 165,760 | | Cost of Sales | (124,434) | (109,790) | | **Gross Profit** | **57,711** | **55,970** | | Administrative Expenses | (37,353) | (32,959) | | **Profit Before Tax** | **19,077** | **21,426** | | Income Tax Expense | (4,817) | (6,012) | | **Profit for the Period** | **14,260** | **15,414** | | Profit Attributable to Owners of the Parent | 14,354 | 15,387 | [Interim Condensed Consolidated Statement of Financial Position](index=28&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Financial%20Position) This statement reflects the company's financial position at the end of the reporting period, showing total assets of RMB 415.0 million, total liabilities of RMB 138.6 million, and net assets of RMB 276.4 million as of June 30, 2024, with a healthy net current asset position of RMB 268 million Statement of Financial Position Summary (RMB thousands) | Item | June 30, 2024 (Unaudited) | December 31, 2023 (Audited) | | :--- | :--- | :--- | | Non-current Assets | 8,697 | 7,703 | | Current Assets | 406,307 | 402,382 | | **Total Assets** | **415,004** | **410,085** | | Current Liabilities | 138,641 | 135,329 | | **Total Liabilities** | **138,641** | **135,329** | | **Net Assets** | **276,363** | **274,756** | | **Total Equity** | **276,363** | **274,756** | [Interim Condensed Consolidated Statement of Cash Flows](index=30&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) This statement details the company's cash inflows and outflows for the reporting period, indicating a net cash outflow from operating activities of RMB 28.58 million in H1 2024, primarily due to increased trade receivables and amounts due from related companies, resulting in a period-end cash and cash equivalents balance of RMB 148.22 million, a decrease of RMB 29.08 million from the beginning of the period Statement of Cash Flows Summary (Six Months Ended June 30, RMB thousands) | Item | 2024 (Unaudited) | 2023 (Unaudited) | | :--- | :--- | :--- | | Net Cash Flows Used in Operating Activities | (28,578) | (2,941) | | Net Cash Flows Used in Investing Activities | (505) | (177) | | Net Cash Flows Used in Financing Activities | – | – | | **Net Decrease in Cash and Cash Equivalents** | **(29,083)** | **(3,118)** | | Cash and Cash Equivalents at Beginning of Period | 177,306 | 44,724 | | **Cash and Cash Equivalents at End of Period** | **148,223** | **41,606** |

[Financial Highlights](index=1&type=section&id=%E8%B4%A2%E5%8A%A1%E6%91%98%E8%A6%81) [Financial Highlights](index=1&type=section&id=%E8%B4%A2%E5%8A%A1%E6%91%98%E8%A6%81) For the six months ended June 30, 2024, the company's revenue increased by 9.9% to RMB 182.15 million, while profit for the period decreased by 7.5% to RMB 14.26 million, with total assets and net assets slightly increasing compared to the end of 2023 Key Financial Indicators for Interim 2024 | Indicator | For the six months ended June 30, 2024 (RMB Thousand) | For the six months ended June 30, 2023 (RMB Thousand) | Change | | :--- | :--- | :--- | :--- | | Revenue | 182,145 | 165,760 | 9.9% | | Gross Profit | 57,711 | 55,970 | 3.1% | | Profit for the Period | 14,260 | 15,414 | -7.5% | | Profit Attributable to Owners of the Parent | 14,354 | 15,387 | -6.7% | | **Indicator** | **As of June 30, 2024 (RMB Thousand)** | **As of December 31, 2023 (RMB Thousand)** | **Change** | | Total Assets | 415,004 | 410,085 | 1.2% | | Net Assets | 276,363 | 274,756 | 0.6% | [Interim Condensed Consolidated Financial Statements](index=2&type=section&id=%E4%B8%AD%E6%9C%9F%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8) [Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=2&type=section&id=%E4%B8%AD%E6%9C%9F%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E6%90%8D%E7%9B%8A%E5%8F%8A%E5%85%B6%E4%BB%96%E5%85%A8%E9%9D%A2%E6%94%B6%E7%9B%8A%E8%A1%A8) During the reporting period, the company's revenue was RMB 182.15 million, a 9.9% year-on-year increase; however, due to increased cost of sales and administrative expenses, profit before tax decreased to RMB 19.08 million, and profit for the period ultimately fell by 7.5% to RMB 14.26 million Summary of Interim Income Statement 2024 | Item | 2024 Half-Year (RMB Thousand) | 2023 Half-Year (RMB Thousand) | | :--- | :--- | :--- | | Revenue | 182,145 | 165,760 | | Cost of Sales | (124,434) | (109,790) | | **Gross Profit** | **57,711** | **55,970** | | Administrative Expenses | (37,353) | (32,959) | | Profit Before Tax | 19,077 | 21,426 | | **Profit for the Period** | **14,260** | **15,414** | | Profit Attributable to Owners of the Parent | 14,354 | 15,387 | | Basic Earnings Per Share | RMB 2.77 cents | RMB 2.97 cents | [Consolidated Statement of Financial Position](index=4&type=section&id=%E4%B8%AD%E6%9C%9F%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B3%87%E7%94%A2%E8%B2%A0%E5%82%B5%E8%A1%A8) As of June 30, 2024, the company's total assets were RMB 415.00 million and net assets were RMB 276.36 million, largely consistent with the end of 2023, with current assets forming the majority, primarily trade receivables and cash and cash equivalents Summary of Statement of Financial Position as of June 30, 2024 | Item | June 30, 2024 (RMB Thousand) | December 31, 2023 (RMB Thousand) | | :--- | :--- | :--- | | **Total Assets** | **415,004** | **410,085** | | Total Non-current Assets | 8,697 | 7,703 | | Total Current Assets | 406,307 | 402,382 | | **Total Liabilities** | **138,641** | **135,329** | | **Net Assets** | **276,363** | **274,756** | | Total Equity | 276,363 | 274,756 | [Notes to the Interim Condensed Consolidated Financial Information](index=5&type=section&id=%E4%B8%AD%E6%9C%9F%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E8%B3%87%E6%96%99%E9%99%84%E8%A8%BB) [Company Information, Operating Segments, and Revenue Analysis](index=5&type=section&id=1.%20%E5%85%AC%E5%8F%B8%E8%B3%87%E6%96%99%20%26%203.%20%E7%B6%93%E7%87%9F%E5%88%86%E9%83%A8%E8%B3%87%E6%96%99%20%26%204.%20%E6%94%B6%E5%85%A5) The company primarily provides property management, value-added services to property developers, and community value-added services in China, with all operations managed as a single segment; total revenue for the period was RMB 182.15 million, driven mainly by a 24.1% increase in property management services, while developer-focused value-added services significantly declined, and revenue from related party ZhongAn Group decreased from 25.16% to 14.02% of total revenue - The Group primarily provides property management services, value-added services mainly to property developers, and community value-added services in China[5](index=5&type=chunk) Revenue by Business Segment | Service Type | 2024 Half-Year Revenue (RMB Thousand) | 2023 Half-Year Revenue (RMB Thousand) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Property Management Services | 153,423 | 123,614 | +24.1% | | Value-added Services Mainly to Property Developers | 18,099 | 31,731 | -43.0% | | Community Value-added Services | 10,623 | 10,415 | +2.0% | | **Total** | **182,145** | **165,760** | **+9.9%** | - Revenue from the remaining ZhongAn Group, a related party, decreased from **25.16%** of total revenue in the prior period to **14.02%**[12](index=12&type=chunk) [Profit Before Tax and Income Tax](index=9&type=section&id=5.%20%E9%99%A4%E7%A8%85%E5%89%8D%E5%88%A9%E6%BD%A4%20%26%206.%20%E6%89%80%E5%BE%97%E7%A8%85) Profit before tax for the reporting period was RMB 19.08 million, with major expenses including RMB 124.43 million in cost of services and RMB 107.47 million in staff wages and salaries; income tax expense was RMB 4.82 million, resulting in an effective tax rate of 25.3% Key Expense Items | Item | 2024 Half-Year (RMB Thousand) | 2023 Half-Year (RMB Thousand) | | :--- | :--- | :--- | | Cost of Services Provided | 124,434 | 109,790 | | Staff Wages and Salaries | 107,467 | 90,810 | | Impairment of Trade Receivables | 3,862 | 2,274 | - The Group's subsidiaries in China are subject to enterprise income tax at a rate of **25%**, with total income tax expense for the reporting period amounting to **RMB 4.817 million**[16](index=16&type=chunk)[17](index=17&type=chunk) [Dividends and Earnings Per Share](index=10&type=section&id=7.%20%E8%82%A1%E6%81%AF%20%26%208.%20%E6%AF%8F%E8%82%A1%E7%9B%88%E5%88%A9) The Board does not recommend an interim dividend for 2024; basic and diluted earnings per share attributable to ordinary equity holders of the parent for the reporting period were RMB 2.77 cents, lower than RMB 2.97 cents in the prior period - The Board does not recommend the payment of an interim dividend for the current reporting period[51](index=51&type=chunk) - The company approved a final dividend for 2023 in June 2024, amounting to **RMB 2.45 cents** per ordinary share, totaling approximately **RMB 12.653 million**[17](index=17&type=chunk) Earnings Per Share Calculation | Item | 2024 Half-Year | 2023 Half-Year | | :--- | :--- | :--- | | Profit Attributable to Ordinary Equity Holders of the Parent (RMB Thousand) | 14,354 | 15,387 | | Weighted Average Number of Ordinary Shares in Issue | 517,414,000 | 517,414,000 | | **Basic Earnings Per Share** | **RMB 2.77 cents** | **RMB 2.97 cents** | [Trade and Other Receivables and Payables](index=11&type=section&id=9.%20%E6%87%89%E6%94%B6%E8%B2%BF%E6%98%93%E8%B3%A6%E6%AC%BE%20%26%2010.%20%E6%87%89%E4%BB%98%E8%B2%BF%E6%98%93%E8%B3%87%E6%AC%BE) As of June 30, 2024, total trade receivables amounted to RMB 135.90 million, an increase from the end of 2023, with the largest portion aged within six months; total trade payables were RMB 3.49 million, mostly aged within three months Aging Analysis of Trade Receivables | Aging | June 30, 2024 (RMB Thousand) | December 31, 2023 (RMB Thousand) | | :--- | :--- | :--- | | Within six months | 74,076 | 64,591 | | Six months to one year | 29,609 | 25,818 | | One to two years | 27,372 | 23,040 | | Two to three years | 4,838 | 3,085 | | **Total** | **135,895** | **116,534** | [Management Discussion and Analysis](index=13&type=section&id=%E7%AE%A1%E7%90%86%E5%B1%A4%E8%A8%8E%E8%AB%96%E8%88%87%E5%88%86%E6%9E%90) [Company Overview](index=13&type=section&id=%E6%9C%AC%E5%85%AC%E5%8F%B8%E6%A6%82%E8%A7%88) The Group is a comprehensive property management service provider with over 25 years of experience, deeply rooted in Zhejiang Province and the Yangtze River Delta region, managing approximately **18.03 million square meters** as of June 30, 2024, and improving its ranking among China's top 100 property service enterprises from 82nd in 2016 to 37th in 2024, while expanding to independent third-party clients and benefiting from ongoing support from its parent company, ZhongAn Group - The company's ranking among China's Top 100 Property Service Enterprises improved from **82nd** in 2016 to **37th** in 2024[23](index=23&type=chunk) Operational Scale as of June 30, 2024 | Item | Quantity/Area | | :--- | :--- | | Contracted Projects | 144 | | Contracted GFA | Approx. 21.76 million sq.m. | | Projects Under Management | 123 | | GFA Under Management | Approx. 18.03 million sq.m. | - The company is expanding into non-residential properties, such as commercial, office buildings, and public spaces, while continuously investing in smart service development, including smart fire safety, security, and robot applications[25](index=25&type=chunk)[26](index=26&type=chunk) [Future Outlook](index=15&type=section&id=%E6%9C%AA%E4%BE%86%E5%B1%95%E6%9C%9B) Looking ahead, the Group will adhere to its '1+9' strategy, focusing on core basic services while vigorously developing community living services, with strategic priorities including expanding business scale and market share, deepening its presence in Zhejiang Province and the Yangtze River Delta region through organic growth and M&A, and strengthening its focus on non-residential property types - Future strategies include: - Adhering to the '1+9' strategy, strengthening basic services, and developing community living services - Expanding business scale and consolidating market position in Zhejiang Province through organic growth and mergers and acquisitions - Continuously focusing on non-residential property types, such as government office buildings, industrial parks, hospitals, and schools - Leveraging brand image for extensive strategic cooperation with real estate development companies[27](index=27&type=chunk)[28](index=28&type=chunk) [Financial Review](index=16&type=section&id=%E8%B2%A1%E5%8B%99%E5%9B%9E%E9%A1%A7) During the reporting period, total revenue grew by 9.9%, primarily driven by a 24.1% increase in property management service revenue; however, value-added services to developers saw a significant 43.0% decline, and rising staff costs led to cost of sales growing faster than revenue, resulting in a decrease in overall gross profit margin from 33.8% to 31.7% and a 7.5% year-on-year decline in net profit [Revenue Analysis](index=16&type=section&id=%E6%94%B6%E5%85%A5) Total revenue increased by 9.9% to RMB 182.15 million, with core property management service revenue growing by 24.1% primarily due to a 25.0% increase in GFA under management, while value-added services to developers decreased by 43.0% due to reduced sales office management services, and community value-added services saw a slight 2.0% increase Revenue Breakdown by Business Line | Business Line | 2024 Half-Year Revenue (RMB Thousand) | % of Total Revenue | 2023 Half-Year Revenue (RMB Thousand) | % of Total Revenue | | :--- | :--- | :--- | :--- | :--- | | Property Management Services | 153,423 | 84.2% | 123,614 | 74.6% | | Value-added Services Mainly to Property Developers | 18,099 | 10.0% | 31,731 | 19.1% | | Community Value-added Services | 10,623 | 5.8% | 10,415 | 6.3% | | **Total** | **182,145** | **100.0%** | **165,760** | **100.0%** | - Property management service revenue increased by **24.1%**, primarily due to a **25.0%** year-on-year increase in total GFA under management from **14.4 million sq.m.** to **18.0 million sq.m.**[30](index=30&type=chunk) - Revenue from value-added services mainly to property developers decreased by **43.0%**, primarily due to a reduction in sales office management services for property projects[36](index=36&type=chunk) [Cost and Gross Profit Margin Analysis](index=20&type=section&id=%E9%8A%B7%E5%94%AE%E6%88%90%E6%9C%AC%20%26%20%E6%AF%9B%E5%88%A9%E5%8F%8A%E6%AF%9B%E5%88%A9%E7%8E%87) Cost of sales increased by 13.3% year-on-year to RMB 124.43 million, outpacing revenue growth, primarily due to a 19.9% increase in staff costs, which led to a decline in the overall gross profit margin from 33.8% in the prior period to 31.7% - Cost of sales increased by **13.3%** year-on-year, mainly due to staff costs included in cost of sales rising from **RMB 81.3 million** to **RMB 97.5 million**, an increase of **19.9%**[38](index=38&type=chunk) Gross Profit Margin by Business Line | Business Line | 2024 Half-Year Gross Profit Margin | 2023 Half-Year Gross Profit Margin | | :--- | :--- | :--- | | Property Management Services | 30.0% | 31.2% | | Value-added Services Mainly to Property Developers | 41.2% | 41.3% | | Community Value-added Services | 40.1% | 41.5% | | **Total** | **31.7%** | **33.8%** | [Profitability Analysis](index=22&type=section&id=%E6%9C%9F%E5%85%A7%E5%88%A9%E6%BD%A4) Due to increased costs and expenses, the company's net profit decreased by 7.5% year-on-year to RMB 14.3 million, with net profit margin falling from 9.3% to 7.8%; profit attributable to owners of the parent decreased by 6.7% year-on-year to RMB 14.4 million - Net profit for the reporting period was approximately **RMB 14.3 million**, a **7.5%** decrease from **RMB 15.4 million** in the prior period[43](index=43&type=chunk) - The net profit margin was **7.8%**, a **1.5 percentage point** decrease from **9.3%** in the prior period[43](index=43&type=chunk) [Liquidity and Capital Resources](index=22&type=section&id=%E6%B5%81%E5%8B%95%E8%B3%87%E9%87%91%E5%8F%8A%E8%B3%87%E6%9C%AC%E8%B3%87%E6%BA%90) The company maintains a robust financial position with no bank borrowings and a zero gearing ratio as of the reporting period end; cash and cash equivalents stood at RMB 148.00 million, a decrease from the beginning of the year, while the current ratio remained healthy at 2.9 times - As of June 30, 2024, cash and cash equivalents amounted to approximately **RMB 148.00 million**, a **16.4%** decrease from **RMB 177.00 million** at the end of 2023[44](index=44&type=chunk) - The Group has no bank borrowings, resulting in a **zero** gearing ratio, and its current ratio is **2.9 times**[44](index=44&type=chunk) [Employees and Remuneration Policy](index=24&type=section&id=%E5%83%B1%E5%93%A1%E5%8F%8A%E8%96%AA%E9%85%AC%E6%94%BF%E7%AD%96) As of June 30, 2024, the Group had **2,991** employees, an increase from **2,845** in the prior period, offering competitive remuneration and continuous professional training - As of June 30, 2024, the Group had a total of **2,991** employees, representing a **5.1%** year-on-year increase[48](index=48&type=chunk) [Corporate Governance and Other Disclosures](index=25&type=section&id=%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB) [Corporate Governance and Audit Committee](index=25&type=section&id=%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB%20%26%20%E5%AF%A9%E6%A0%B8%E5%A7%94%E5%93%A1%E6%9C%83) The company has adopted and complied with the Corporate Governance Code; the Audit Committee, comprising three independent non-executive directors, has reviewed the unaudited interim financial information for the period and deemed the company's risk management and internal control systems effective and adequate - The company has complied with all applicable code provisions set out in the Corporate Governance Code throughout the reporting period[52](index=52&type=chunk) - The Audit Committee has reviewed the unaudited interim condensed consolidated financial information for the reporting period and discussed it with management[53](index=53&type=chunk)

Revenue Performance - Revenue from value-added services to property developers was approximately RMB58.1 million, a decrease of approximately RMB2.6 million or 4.3% compared to RMB60.7 million in the same period of 2022[1]. - Revenue from community value-added services was approximately RMB31.9 million, a decrease of approximately RMB3.5 million or 9.9% compared to RMB35.4 million in the same period of 2022[11]. - The company reported a significant increase in revenue for the year ended December 31, 2023, with a total revenue of approximately $150 million, representing a 25% growth compared to the previous year[104]. - For the year ended 31 December 2023, the Group's revenue was approximately RMB351.1 million, representing an increase of approximately 9.8% compared to RMB319.7 million in the same period in 2022[135]. - Revenue from property management services was approximately RMB261.2 million, an increase of 16.8% from approximately RMB223.6 million in 2022[180]. - Revenue contribution from independent third-party property developers was 2.5% in 2023, with a total revenue of RMB 6,315,000[184]. Cost and Profitability - The cost of sales increased to approximately RMB232.3 million, representing a 14.2% increase compared to approximately RMB203.4 million in the same period of 2022[16]. - Staff costs included in the cost of sales were approximately RMB198.6 million, an increase of approximately RMB45.4 million or 29.6% compared to approximately RMB153.2 million in the same period of 2022[17]. - Gross profit for the reporting period was approximately RMB118.8 million, a slight increase of approximately RMB2.5 million or 2.1% compared to approximately RMB116.3 million in the same period of 2022[18]. - The Group's gross profit margin decreased from 36.4% in the 2022 Same Period to 33.8% in the Reporting Period, primarily due to lower margins in community value-added services and property management services[23]. - Profit for the year decreased to RMB49.4 million, down 2.97% from RMB50.9 million in 2022[125]. - The gross margin improved to 60%, up from 55% in the previous year, reflecting better cost management and operational efficiency[104]. Financial Position - Cash and cash equivalents amounted to approximately RMB177.3 million as of 31 December 2023, representing a significant increase of 296.6% from RMB44.7 million as of 31 December 2022[27]. - The Group's current ratio improved to 3.0 times as of 31 December 2023, compared to 1.8 times as of 31 December 2022[27]. - As of 31 December 2023, the Group had no bank borrowings, resulting in a nil gearing ratio[28]. - Total assets surged to RMB410.1 million, marking a significant increase of 107.08% from RMB198.0 million in 2022[126]. - Net assets rose to RMB274.8 million, representing a substantial increase of 194.59% from RMB93.3 million in 2022[126]. Strategic Initiatives - The Group plans to utilize part of the net proceeds from the listing to acquire or invest in other property management companies to expand its business scale and market share[41]. - The company aims to maintain stable and quality growth in the property management sector, focusing on Zhejiang and Anhui provinces for deep development and expanding market share in the Yangtze River Delta region[43]. - The company intends to expand its ecological network and integrate upstream and downstream industrial chains by offering comprehensive services, including security, cleaning, and customer services[43]. - The company will increase investment in smart services, incorporating Internet of Things and artificial intelligence technologies to enhance service efficiency and quality for homeowners[52]. - The company aims to create a sustainable multi-business service platform to increase customer coverage and usage through high-quality products and services[52]. Customer Engagement and Satisfaction - The customer satisfaction score in the 2023 annual survey was 79 points, reflecting the Group's commitment to service quality[138]. - The Group was ranked 40th in the Top 100 in the Property Industry in 2023, showcasing its competitive position[138]. - The Group aims to refine its services and build a comprehensive service system under the "Zhong An Intelligent Living" brand[168]. Governance and Compliance - The company is committed to high standards of corporate governance and has complied with all applicable code provisions during the reporting period[56]. - The Company has established an Audit Committee to oversee financial reporting processes and risk management systems[121]. - The board of directors has been restructured, with new appointments aimed at strengthening governance and strategic oversight[104]. - The Company aims to enhance performance through Board diversity, considering age, cultural background, and professional experience[109]. Market Expansion and Development - The company plans to expand its market presence in Southeast Asia, targeting a 20% market share within the next two years[104]. - The company maintained a focus on the Yangtze River Delta Region, which is characterized by higher urbanization rates and disposable income compared to national averages[190]. - The Group has been included in the list of the Top 100 Property Management Companies in China since 2016, demonstrating consistent growth in the industry[150].