[Financial Highlights](index=1&type=section&id=Financial%20Highlights) Key financial indicators for H1 2025 show revenue growth of 8.3% to RMB 441.4 million, net profit up 24.4% to RMB 21.7 million, and cash and cash equivalents increasing by 12.73% Key Financial Indicators Comparison for H1 2025 | Indicator | H1 2025 (RMB million) | H1 2024 (RMB million) | YoY Change | | :--- | :--- | :--- | :--- | | Revenue | 441.4 | 407.5 | +8.3% | | Gross Profit | 62.4 | 61.3 | +1.9% | | Gross Profit Margin | 14.1% | 15.0% | -0.9 percentage points | | Net Profit | 21.7 | 17.5 | +24.4% | | Cash and Cash Equivalents (End of Period) | 188.08 | 166.8 (Dec 31, 2024) | +12.73% | - The Board has decided not to declare any interim dividend for the reporting period[4](index=4&type=chunk) [Interim Condensed Consolidated Financial Statements](index=2&type=section&id=Interim%20Condensed%20Consolidated%20Financial%20Statements) This section presents the interim condensed consolidated financial statements, including the statement of profit or loss and other comprehensive income, and the statement of financial position [Interim Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=2&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) For the six months ended June 30, 2025, the company's revenue increased by 8.3% to RMB 441.4 million, net profit grew by 24.4% to RMB 21.7 million, and basic earnings per share rose to RMB 0.07 Interim Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (Summary) | Indicator | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Revenue | 441,387 | 407,475 | | Cost of Services | (378,956) | (346,223) | | Gross Profit | 62,431 | 61,252 | | Profit Before Tax | 27,726 | 24,338 | | Income Tax Expense | (6,007) | (6,875) | | Profit and Total Comprehensive Income for the Period | 21,719 | 17,463 | | Profit Attributable to Owners of the Parent | 21,723 | 17,558 | | Basic and Diluted Earnings Per Share (RMB) | 0.07 | 0.06 | [Interim Condensed Consolidated Statement of Financial Position](index=3&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the company's total assets and net assets both increased, with a significant rise in net current assets, while non-current assets slightly decreased Interim Condensed Consolidated Statement of Financial Position (Summary) | Indicator | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Total Non-Current Assets | 242,269 | 248,621 | | Total Current Assets | 579,026 | 486,426 | | Total Current Liabilities | 329,502 | 291,668 | | Net Current Assets | 249,524 | 194,758 | | Total Assets Less Current Liabilities | 491,793 | 443,379 | | Total Non-Current Liabilities | 116,475 | 90,042 | | Total Equity | 375,318 | 353,337 | [Notes to the Interim Condensed Consolidated Financial Information](index=5&type=section&id=Notes%20to%20the%20Interim%20Condensed%20Consolidated%20Financial%20Information) This section provides detailed notes to the interim condensed consolidated financial information, covering general information, basis of preparation, segment reporting, revenue, expenses, and balance sheet items [General Information](index=5&type=section&id=1.%20General%20Information) Runhua Living Service Group Holdings Limited is an investment holding company incorporated in the Cayman Islands, primarily providing property management, engineering, landscaping, investment property leasing, and other services through its PRC subsidiaries, with its shares listed on the Main Board of the Hong Kong Stock Exchange on January 17, 2023 - The company is incorporated in the Cayman Islands, with its principal place of business in Jinan, Shandong Province, China[8](index=8&type=chunk) - The company is an investment holding company, with its subsidiaries providing property management, property engineering and landscaping, investment property leasing, and other services in China[9](index=9&type=chunk) - The company's shares were listed on the Main Board of the Hong Kong Stock Exchange on **January 17, 2023**[10](index=10&type=chunk) [Basis of Preparation and Application of HKFRS Amendments](index=5&type=section&id=2.1%20Basis%20of%20Preparation%20and%202.2%20Application%20of%20HKFRS%20Amendments) The interim financial information is prepared in accordance with HKAS 34 and the Listing Rules, with the first-time application of HKFRS amendments having no significant impact - The interim condensed consolidated financial information is prepared in accordance with Hong Kong Accounting Standard 34 issued by the Hong Kong Institute of Certified Public Accountants and the applicable disclosure requirements of Appendix D2 to the Listing Rules of the Stock Exchange[12](index=12&type=chunk) - The amendments to Hong Kong Financial Reporting Standards were first applied during this interim period, but they had no significant impact on the Group's financial performance, position, or disclosures[13](index=13&type=chunk) [Operating Segment Information](index=6&type=section&id=3.%20Operating%20Segment%20Information) The company is divided into four reportable operating segments based on service type: property management, property engineering and landscaping, investment property leasing, and other services, with management independently monitoring each segment for resource allocation and performance assessment - The Group's four reportable operating segments are: property management services, property engineering and landscaping services, leasing services for investment properties, and other services[15](index=15&type=chunk)[16](index=16&type=chunk) - Management independently monitors the performance of each operating segment to make decisions on resource allocation and performance assessment[15](index=15&type=chunk) Segment Revenue and Results for H1 2025 | Segment | Revenue (RMB thousand) | Results (RMB thousand) | | :--- | :--- | :--- | | Property Management Services | 415,758 | 20,990 | | Property Engineering and Landscaping Services | 16,089 | 2,113 | | Leasing Services for Investment Properties | 8,298 | 2,790 | | Other | 1,242 | 44 | | **Total** | **441,387** | **25,937** | [Revenue, Other Income and Gains and Expenses, Net](index=8&type=section&id=4.%20Revenue,%20Other%20Income%20and%20Gains%20and%20Expenses,%20Net) During the reporting period, total revenue increased by 8.3% to RMB 441.4 million, primarily driven by customer contract revenue, while other income and gains, net, surged by 95.2% mainly due to a significant increase in government grants Revenue Analysis | Revenue Source | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Revenue from Contracts with Customers | 433,089 | 393,899 | | Rental Income from Operating Leases of Investment Properties | 8,298 | 13,576 | | **Total Revenue** | **441,387** | **407,475** | Breakdown of Revenue from Contracts with Customers | Service Type | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Property Management Services | 415,758 | 379,581 | | Property Engineering and Landscaping Services | 16,089 | 6,876 | | Other | 1,242 | 7,442 | | **Total Revenue from Contracts with Customers** | **433,089** | **393,899** | Other Income and Gains and Expenses, Net | Item | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Government Grants | 5,034 | 88 | | Bank Interest Income | 135 | 341 | | Net Exchange Differences | (272) | 2,144 | | **Total** | **5,681** | **2,910** | [Profit Before Tax](index=10&type=section&id=5.%20Profit%20Before%20Tax) During the reporting period, the company's profit before tax was RMB 27.7 million, with major costs including cost of services provided, depreciation, amortization, and employee benefit expenses Profit Before Tax Deductions/(Credits) | Item | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Cost of Services Provided | 213,067 | 139,791 | | Depreciation of Property and Equipment | 2,710 | 2,682 | | Depreciation of Investment Properties | 9,428 | 9,603 | | Employee Benefit Expenses | 227,066 | 236,833 | | Impairment (Reversal) Provision for Trade Receivables | (312) | (1,496) | [Finance Costs](index=10&type=section&id=6.%20Finance%20Costs) During the reporting period, finance costs increased by 4.9% to RMB 4.5 million, primarily comprising interest on interest-bearing bank borrowings and lease liabilities Finance Costs Analysis | Item | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Interest on Interest-Bearing Bank Borrowings | 3,414 | 2,929 | | Interest on Lease Liabilities | 1,042 | 1,317 | | **Total** | **4,456** | **4,246** | [Income Tax Expense](index=11&type=section&id=7.%20Income%20Tax%20Expense) During the reporting period, income tax expense decreased by 12.6% to RMB 6.0 million, with the effective tax rate falling from 28.2% to 21.7%, mainly due to preferential income tax policies for small and micro enterprises in China Income Tax Expense Analysis | Item | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Current Tax | 6,390 | 7,245 | | Deferred Tax | (383) | (649) | | **Total** | **6,007** | **6,875** | - The income tax rate for PRC subsidiaries is **25%**, but some subsidiaries qualifying as small and micro enterprises enjoy tax incentives[28](index=28&type=chunk)[29](index=29&type=chunk) - No Hong Kong profits tax provision was made for Hong Kong subsidiaries as they did not generate assessable profits during the reporting period[27](index=27&type=chunk) [Interim Dividends](index=12&type=section&id=8.%20Interim%20Dividends) The Board has decided not to declare any interim dividend for the six months ended June 30, 2025 - The Board does not recommend the payment of any interim dividend for the six months ended June 30, 2025[30](index=30&type=chunk) [Earnings Per Share Attributable to Owners of the Parent](index=12&type=section&id=9.%20Earnings%20Per%20Share%20Attributable%20to%20Owners%20of%20the%20Parent) During the reporting period, basic and diluted earnings per share attributable to owners of the parent was RMB 0.07, higher than RMB 0.06 in the same period last year Earnings Per Share Calculation | Indicator | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Profit Attributable to Owners of the Parent (RMB thousand) | 21,723 | 17,558 | | Weighted Average Number of Ordinary Shares Issued | 294,430,694 | 300,000,000 | | Basic and Diluted Earnings Per Share (RMB) | 0.07 | 0.06 | - The Group had no potentially dilutive ordinary shares outstanding during the period[32](index=32&type=chunk) [Investment Properties](index=13&type=section&id=10.%20Investment%20Properties) As of June 30, 2025, the carrying amount of investment properties decreased to RMB 63.6 million, primarily due to reduced depreciation and re-recognition amounts, with the company owning 35 self-owned and 4 leased investment properties - The carrying amount of investment properties was **RMB 63,589 thousand** as of June 30, 2025, a decrease from **RMB 74,539 thousand** as of December 31, 2024[6](index=6&type=chunk)[34](index=34&type=chunk) - As of June 30, 2025, the Group owned **35 self-owned investment properties** and **4 leased investment properties**[43](index=43&type=chunk) - The fair value of investment properties was approximately **RMB 73,877,700** (June 30, 2024: RMB 97,298,000)[34](index=34&type=chunk) [Trade and Bills Receivables](index=13&type=section&id=11.%20Trade%20and%20Bills%20Receivables) As of June 30, 2025, total trade and bills receivables increased to RMB 311 million, or RMB 308.5 million after impairment, primarily due to revenue growth and extended credit terms for government clients Trade and Bills Receivables | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Trade Receivables | 309,061 | 261,034 | | Bills Receivables | 1,984 | 727 | | Impairment | (2,556) | (2,868) | | **Total** | **308,489** | **258,893** | Ageing Analysis of Trade Receivables (Net of Impairment) | Ageing | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Within 1 year | 284,142 | 241,704 | | 1 to 2 years | 11,546 | 9,193 | | Over 2 years | 10,817 | 7,269 | | **Total** | **306,505** | **258,166** | [Trade Payables](index=14&type=section&id=12.%20Trade%20Payables) As of June 30, 2025, trade payables decreased by 2.8% to RMB 82.8 million Ageing Analysis of Trade Payables | Ageing | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Within 3 months | 70,808 | 74,134 | | 3 to 6 months | 169 | 3,968 | | 6 months to 1 year | 4,136 | 2,391 | | Over 1 year | 7,647 | 4,684 | | **Total** | **82,760** | **85,177** | [Share Capital](index=14&type=section&id=13.%20Share%20Capital) As of June 30, 2025, the company had 300 million ordinary shares issued, with a par value of US$0.0001, including 5,569,306 treasury shares - As of June 30, 2025, the total number of issued ordinary shares and authorized ordinary shares of the company remained unchanged at **300,000,000 shares** and **500,000,000 shares**, respectively[37](index=37&type=chunk) - The issued shares include **5,569,306 treasury shares**, held and issued under the pre-IPO restricted share unit scheme[37](index=37&type=chunk) [Events After the Reporting Period](index=14&type=section&id=14.%20Events%20After%20the%20Reporting%20Period) No significant events occurred after the end of the reporting period - No significant events occurred after the end of the reporting period[38](index=38&type=chunk) [Management Discussion and Analysis](index=15&type=section&id=Management%20Discussion%20and%20Analysis) This section reviews the Group's business operations, future prospects, and provides a detailed analysis of financial performance, balance sheet items, liquidity, and capital structure [Business Review](index=15&type=section&id=Business%20Review) The Group's business is primarily divided into four segments: property management, property engineering and landscaping, investment property leasing, and other services, with property management being the core revenue source, accounting for 94.2% of total revenue, particularly strong in non-residential (especially hospital) property management [Business Overview](index=15&type=section&id=Business%20Overview) The Group's services are categorized into four segments: property management, property engineering and landscaping, investment property leasing, and other services, with property management being the primary revenue driver, especially in non-residential properties - The Group's services are broadly categorized into four business segments: property management services, property engineering and landscaping services, leasing services for investment properties, and other services[39](index=39&type=chunk) - During the reporting period, **94.2% of the Group's revenue** was derived from property management services, primarily from non-residential properties, achieving excellent results in hospital property management[39](index=39&type=chunk) [Property Management Services](index=15&type=section&id=Property%20Management%20Services) The Group provides comprehensive property management services, including typical services and hospital central transportation, strategically focusing on non-residential properties in China, which generated 94.2% of total revenue - The Group provides typical property management services (such as cleaning, security, maintenance, customer service) and hospital central transportation services[40](index=40&type=chunk) - During the reporting period, **94.2% of total revenue** was generated from property management services, with **94.0% from non-residential properties** (such as hospitals, public properties, and commercial properties) and **6.0% from residential properties**[41](index=41&type=chunk) - The Group's property management services strategically focus on non-residential properties in China[41](index=41&type=chunk) [Property Engineering and Landscaping Services](index=16&type=section&id=Property%20Engineering%20and%20Landscaping%20Services) The Group offers diverse property engineering and landscaping services, including maintenance, renovation, and landscape work, often identifying opportunities while providing daily on-site property management - The Group provides diversified services, including critical maintenance, interior decoration, alteration and addition of building layouts and structural engineering, elevator installation, tree sales/leasing/planting, changes in green space topography, installation of landscape irrigation systems, and landscape maintenance work[42](index=42&type=chunk) - The Group typically identifies business opportunities for property engineering and landscaping services while providing daily on-site property management services to understand customer needs[42](index=42&type=chunk) [Leasing Services for Investment Properties](index=16&type=section&id=Leasing%20Services%20for%20Investment%20Properties) To generate recurring income, the Group acquires and/or leases commercial properties in Jinan, Shandong Province, holding 35 self-owned and 4 leased investment properties as of June 30, 2025 - To create a recurring revenue stream, the Group acquires and/or leases certain commercial properties located in Jinan, Shandong Province[43](index=43&type=chunk) - As of June 30, 2025, the Group owned **35 self-owned investment properties** and **4 leased investment properties**[43](index=43&type=chunk) [Other Services](index=16&type=section&id=Other%20Services) Other services primarily encompass intermediary services for patient and postpartum care, along with the sale of proprietary software support systems and routine server maintenance - Other services primarily include intermediary services for patient care and postpartum care services, as well as the sale of software support systems developed by the Group and routine server maintenance services[44](index=44&type=chunk) [Future Prospects](index=17&type=section&id=Future%20Prospects) The company will adhere to a strategy of 'deepening core strengths, expanding growth channels, and innovating smart services,' planning to further expand into key cities, enhance hospital property management, and develop value-added services through M&A and partnerships, while leveraging technology to improve service quality, with listing seen as a way to boost corporate image and financing capabilities - The Group will adhere to the strategic pillars of "deepening core strengths, expanding growth channels, and innovating smart services"[45](index=45&type=chunk) - Future plans include: further penetration into key cities (such as the Yangtze River Delta and Pearl River Delta), deepening hospital property management services and developing value-added services, and leveraging technology to enhance hospital property management levels[45](index=45&type=chunk) - The Board believes that the public listing has enhanced the corporate image, brand awareness, market reputation, and provided a broader capital market for future financing[46](index=46&type=chunk) [Financial Performance Analysis](index=18&type=section&id=Financial%20Performance%20Analysis) This section provides a detailed analysis of the company's financial performance during the reporting period, including changes and drivers for key metrics such as revenue, costs, gross profit, various expenses, associate performance, income tax, and net profit [Revenue](index=18&type=section&id=Revenue) Total revenue increased by 8.3% to RMB 441.4 million, primarily driven by a 9.5% growth in property management services, with hospital and commercial properties showing significant contributions Revenue Breakdown by Service Type | Service Type | H1 2025 (RMB thousand) | Share (%) | H1 2024 (RMB thousand) | Share (%) | Growth Rate (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | Property Management Services | 415,758 | 94.2 | 379,581 | 93.2 | 9.5 | | Property Engineering and Landscaping Services | 16,089 | 3.6 | 6,876 | 1.7 | 134.0 | | Leasing Services for Investment Properties | 8,298 | 1.9 | 13,576 | 3.3 | (38.9) | | Other Services | 1,242 | 0.3 | 7,442 | 1.8 | (83.3) | | **Total** | **441,387** | **100.0** | **407,475** | **100.0** | **8.3** | - Total revenue increased by **8.3%** to **RMB 441.4 million**, primarily attributable to the growth in property management services revenue[48](index=48&type=chunk) Property Management Services Revenue Breakdown by Managed Property Type | Property Type | H1 2025 (RMB thousand) | Share (%) | H1 2024 (RMB thousand) | Share (%) | Growth Rate (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | Hospitals | 196,601 | 47.3 | 184,789 | 48.7 | 6.4 | | Public Properties | 120,944 | 29.1 | 121,299 | 32.0 | (0.3) | | Commercial and Other Non-Residential Properties | 73,325 | 17.6 | 50,405 | 13.3 | 45.5 | | Residential Properties | 24,888 | 6.0 | 23,088 | 6.1 | 7.8 | | **Total** | **415,758** | **100** | **379,581** | **100** | **9.5** | [Cost of Services](index=19&type=section&id=Cost%20of%20Services) Cost of services increased by 9.5% to RMB 379.0 million, aligning with revenue growth due to the deployment of frontline staff and engagement of subcontractors for new property management projects - Cost of services increased by **9.5%** from **RMB 346.2 million** to **RMB 379.0 million**, primarily due to the deployment of frontline staff and engagement of subcontractors for new property management projects, consistent with revenue growth[50](index=50&type=chunk) [Gross Profit and Gross Profit Margin](index=20&type=section&id=Gross%20Profit%20and%20Gross%20Profit%20Margin) Gross profit increased by 1.9% to RMB 62.4 million, while the overall gross profit margin decreased by 0.9 percentage points to 14.1%, mainly due to a decline in property management services' margin - Gross profit increased by **1.9%** from **RMB 61.3 million** to **RMB 62.4 million**[51](index=51&type=chunk) Gross Profit and Gross Profit Margin Breakdown by Service Type | Service Type | H1 2025 Gross Profit (RMB thousand) | H1 2025 Gross Profit Margin (%) | H1 2024 Gross Profit (RMB thousand) | H1 2024 Gross Profit Margin (%) | | :--- | :--- | :--- | :--- | :--- | | Property Management Services | 55,681 | 13.4 | 53,784 | 14.2 | | Property Engineering and Landscaping Services | 3,331 | 20.7 | 1,007 | 14.6 | | Leasing Services for Investment Properties | 3,270 | 39.4 | 5,146 | 37.9 | | Other Services | 149 | 12.0 | 1,315 | 17.7 | | **Total** | **62,431** | **14.1** | **61,252** | **15.0** | - The overall gross profit margin decreased by **0.9 percentage points** to **14.1%**, primarily due to a decrease in the gross profit margin of property management services[52](index=52&type=chunk) - The gross profit margin for property engineering and landscaping services increased by **6.1 percentage points**, mainly attributable to higher gross profit margins from new large-scale engineering project contracts during the period[53](index=53&type=chunk) [Other Income and Gains and Expenses, Net](index=21&type=section&id=Other%20Income%20and%20Gains%20and%20Expenses,%20Net) Other income and gains and expenses, net, significantly increased by 95.2% to RMB 5.7 million, primarily driven by a substantial rise in government grants, partially offset by foreign exchange losses - Other income and gains and expenses, net, increased by **95.2%** from **RMB 2.9 million** to **RMB 5.7 million**, primarily due to an increase in government grants of **RMB 4.9 million**, partially offset by foreign exchange losses[54](index=54&type=chunk) [Selling and Distribution Expenses](index=21&type=section&id=Selling%20and%20Distribution%20Expenses) Selling and distribution expenses decreased to RMB 735 thousand, primarily due to a reduction in sales expenses - Selling and distribution expenses decreased from **RMB 1.0 million** to **RMB 735 thousand**, mainly due to a reduction in sales expenses[55](index=55&type=chunk) [Administrative Expenses](index=21&type=section&id=Administrative%20Expenses) Administrative expenses increased to RMB 35.8 million, mainly attributed to the write-off of RMB 1.2 million in trade receivables - Administrative expenses increased from **RMB 34.4 million** to **RMB 35.8 million**, primarily due to the write-off of **RMB 1.2 million** in trade receivables[56](index=56&type=chunk) [Finance Costs](index=21&type=section&id=Finance%20Costs) Finance costs increased by 4.9% to RMB 4.5 million during the reporting period - Finance costs increased by **4.9%** from **RMB 4.2 million** to **RMB 4.5 million**[57](index=57&type=chunk) [Share of Profit/(Loss) of an Associate](index=21&type=section&id=Share%20of%20Profit%2F%28Loss%29%20of%20an%20Associate) The share of profit from an associate significantly increased by 582.1% to a profit of RMB 563 thousand, compared to a loss of RMB 117 thousand in the prior period - Share of profit of an associate increased by **582.1%** from a loss of **RMB 117 thousand** in H1 2024 to a profit of **RMB 563 thousand** in H1 2025[58](index=58&type=chunk) [Income Tax Expense and Effective Tax Rate](index=21&type=section&id=Income%20Tax%20Expense%20and%20Effective%20Tax%20Rate) Income tax expense decreased by 12.6% to RMB 6.0 million, resulting in a lower effective tax rate of 21.7% for the period - Income tax expense decreased by **12.6%** from **RMB 6.9 million** to **RMB 6.0 million**[59](index=59&type=chunk) - The effective tax rate decreased from **28.2%** in H1 2024 to **21.7%** in H1 2025[60](index=60&type=chunk) [Profit for the Period and Net Profit Margin](index=22&type=section&id=Profit%20for%20the%20Period%20and%20Net%20Profit%20Margin) Net profit increased by 24.4% to RMB 21.7 million, leading to an improved net profit margin of 4.9% for the period - Net profit increased by **24.4%** from **RMB 17.5 million** to **RMB 21.7 million**[61](index=61&type=chunk) - The net profit margin increased from **4.3%** in H1 2024 to **4.9%** in H1 2025[61](index=61&type=chunk) [Analysis of Statement of Financial Position Items](index=22&type=section&id=Analysis%20of%20Statement%20of%20Financial%20Position%20Items) This section analyzes changes in key statement of financial position items at the end of the reporting period, including property and equipment, investment properties, investment in an associate, trade receivables, prepayments and other receivables, trade payables, and other payables and accrued charges [Property and Equipment](index=22&type=section&id=Property%20and%20Equipment) Property and equipment decreased by RMB 835 thousand to RMB 20.4 million, primarily due to depreciation and disposals, partially offset by new purchases - Property and equipment amounted to **RMB 20.4 million**, a decrease of **RMB 835 thousand** compared to December 31, 2024[62](index=62&type=chunk) - The decrease was primarily due to purchases of property and equipment of **RMB 2.1 million**, depreciation of **RMB 2.7 million**, and disposals of property and equipment of **RMB 0.6 million**[62](index=62&type=chunk) [Investment Properties](index=22&type=section&id=Investment%20Properties) Investment properties decreased to RMB 63.6 million, mainly due to depreciation of specific properties and a reduction in re-recognition amounts - Investment properties decreased from **RMB 74.5 million** as of December 31, 2024, to **RMB 63.6 million** as of June 30, 2025[63](index=63&type=chunk) - The decrease was primarily due to depreciation of **RMB 6.0 million** for Qiantai Building, **RMB 2.5 million** for Qilu Zhimeng Building, and a reduction in the re-recognition amount of investment properties for Qianning Building of **RMB 1.5 million**[63](index=63&type=chunk) [Investment in an Associate](index=22&type=section&id=Investment%20in%20an%20Associate) Investment in an associate, Tianjin Tianfu Property Management Co Ltd, increased to RMB 140.8 million, primarily due to its profit contribution and equity-accounted investment - Investment in an associate (Tianjin Tianfu Property Management Co Ltd) increased from **RMB 140.2 million** as of December 31, 2024, to **RMB 140.8 million** as of June 30, 2025[64](index=64&type=chunk) - The increase was primarily due to the profit of Tianjin Tianfu and an increase in investment calculated on an equity basis of **RMB 0.6 million**[64](index=64&type=chunk) [Trade Receivables](index=23&type=section&id=Trade%20Receivables) Trade receivables increased by 19.2% to RMB 308.5 million, driven by revenue growth and extended credit terms for government and public institution clients - Trade receivables amounted to **RMB 308.5 million**, an increase of **RMB 49.6 million** or **19.2%** compared to December 31, 2024[65](index=65&type=chunk) - The increase was primarily attributable to the growth in revenue and scale of business operations, as well as longer credit terms required by government and public institution clients compared to the same period in 2024[65](index=65&type=chunk) [Prepayments and Other Receivables](index=23&type=section&id=Prepayments%20and%20Other%20Receivables) Prepayments and other receivables increased to RMB 55.4 million, primarily due to higher prepayments, other receivables, and other current assets - Prepayments and other receivables increased from **RMB 25.7 million** as of December 31, 2024, to **RMB 55.4 million** as of June 30, 2025[66](index=66&type=chunk) - The increase was primarily due to an increase in prepayments of **RMB 23.4 million**, an increase in other receivables of **RMB 4.1 million**, and an increase in other current assets of **RMB 2.2 million**[66](index=66&type=chunk) [Trade Payables](index=23&type=section&id=Trade%20Payables) Trade payables decreased by 2.8% to RMB 82.8 million as of June 30, 2025 - Trade payables amounted to **RMB 82.8 million**, a decrease of **RMB 2.4 million** or **2.8%** compared to December 31, 2024[67](index=67&type=chunk) [Other Payables and Accrued Charges](index=23&type=section&id=Other%20Payables%20and%20Accrued%20Charges) Other payables and accrued charges decreased to RMB 119.5 million, mainly due to a reduction in salaries, overtime, and bonuses during the first half of 2025 - Other payables and accrued charges decreased from **RMB 122.4 million** as of December 31, 2024, to **RMB 119.5 million** as of June 30, 2025[68](index=68&type=chunk) - The decrease was primarily due to a reduction in salaries, overtime, and bonuses of **RMB 2.9 million** in H1 2025[68](index=68&type=chunk) [Liquidity, Financial Resources and Capital Structure](index=23&type=section&id=Liquidity,%20Financial%20Resources%20and%20Capital%20Structure) As of June 30, 2025, cash and cash equivalents increased to RMB 188.1 million, total interest-bearing bank loans rose to RMB 183.9 million, leading to a gearing ratio of 49.0%, while the current ratio remained healthy at 1.8 - As of June 30, 2025, cash and cash equivalents amounted to **RMB 188.1 million**, an increase from **RMB 166.8 million** as of December 31, 2024[69](index=69&type=chunk) - Total interest-bearing bank loans and other borrowings increased from **RMB 109.3 million** as of December 31, 2024, to **RMB 183.9 million** as of June 30, 2025[70](index=70&type=chunk) Liquidity and Capital Structure Indicators | Indicator | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Gearing Ratio | 49.0% | 30.9% | | Current Ratio | 1.8 | 1.7 | [Capital Expenditure and Commitments](index=24&type=section&id=Capital%20Expenditure%20and%20Commitments) Capital expenditure for the reporting period was RMB 2.1 million, primarily for property and equipment and investment properties, with no capital commitments at period-end - Total capital expenditure for the six months ended June 30, 2025, was **RMB 2.1 million**, primarily comprising expenditure on property and equipment and investment properties[72](index=72&type=chunk) - As of June 30, 2025, the Group had no capital commitments[73](index=73&type=chunk) [Contingent Liabilities](index=25&type=section&id=Contingent%20Liabilities) As of June 30, 2025, the company had no material contingent liabilities - As of June 30, 2025, the Group had no material contingent liabilities[74](index=74&type=chunk) [Cash Flows](index=25&type=section&id=Cash%20Flows) During the reporting period, net cash used in operating activities was RMB 45.4 million, mainly due to increased trade and prepayments, net cash used in investing activities was RMB 1.9 million, and net cash from financing activities was RMB 68.8 million, primarily due to increased interest-bearing bank borrowings - Net cash used in operating activities was **RMB 45.4 million**, primarily due to increases in trade receivables and prepayments and other receivables[75](index=75&type=chunk) - Net cash used in investing activities was **RMB 1.9 million**, mainly due to the purchase of financial assets at fair value through profit or loss[75](index=75&type=chunk) - Net cash from financing activities was **RMB 68.8 million**, primarily due to an increase in interest-bearing bank borrowings[75](index=75&type=chunk) [Pledge of Assets](index=25&type=section&id=Pledge%20of%20Assets) As of June 30, 2025, certain certificates of deposit and properties were pledged as collateral for bank loans, totaling approximately RMB 34 million in certificates of deposit and RMB 4 million in net value of properties - **RMB 4.0 million** in certificates of deposit were pledged as collateral for bank loans of **RMB 18.0 million**[76](index=76&type=chunk) - **RMB 30.0 million** in certificates of deposit were pledged as collateral for bank loans of **RMB 27.0 million**[76](index=76&type=chunk) - Properties with an original value of **RMB 6.0 million** and a net value of **RMB 4.0 million** were pledged as collateral for bank loans of **RMB 20.0 million**[76](index=76&type=chunk) [Foreign Exchange Risk](index=25&type=section&id=Foreign%20Exchange%20Risk) The company primarily operates in China, denominated in RMB, with no significant foreign currency risk except for minor foreign currency cash holdings, and currently does not engage in hedging activities but continuously monitors to protect cash value - The Group primarily operates in China, with its functional currency being RMB[77](index=77&type=chunk) - The Group's business operations do not have significant foreign currency risk, except for cash and cash equivalents denominated in foreign currencies[77](index=77&type=chunk) - The Group currently does not engage in hedging activities aimed at or intended to manage foreign exchange risk[77](index=77&type=chunk) [Treasury Policy](index=26&type=section&id=Treasury%20Policy) The company adopts a prudent financial management approach, maintaining a healthy liquidity position and closely monitoring liquidity risk to meet funding requirements - The Group has adopted a prudent financial management approach for its treasury policy, thus maintaining a healthy liquidity position during the reporting period[78](index=78&type=chunk) - The Board closely monitors the Group's liquidity position to ensure it can meet its funding needs from time to time[78](index=78&type=chunk) [Material Investments, Acquisitions and Disposals of Subsidiaries, Associates and Joint Ventures](index=26&type=section&id=Material%20Investments,%20Acquisitions%20and%20Disposals%20of%20Subsidiaries,%20Associates%20and%20Joint%20Ventures) During the reporting period, the company had no material acquisitions or disposals of subsidiaries, associates, or joint ventures, nor did it hold any material investments representing 5% or more of total assets - During the reporting period, the Group had no material acquisitions or disposals of subsidiaries, associates, or joint ventures[79](index=79&type=chunk) - As of June 30, 2025, the Group did not hold any material investments (including material investments representing 5% or more of the Group's total assets)[79](index=79&type=chunk) [Future Plans for Material Investments](index=26&type=section&id=Future%20Plans%20for%20Material%20Investments) The company plans to use net proceeds from the global offering to acquire property management companies and may explore other business and investment opportunities to enhance long-term competitiveness - The Group intends to use part of the net proceeds from the global offering to acquire property management companies[80](index=80&type=chunk) - The Group may also explore business and investment opportunities in various business areas and consider asset or business acquisitions, reorganizations, or diversification to enhance long-term competitiveness[80](index=80&type=chunk) [Use of Proceeds from Global Offering](index=27&type=section&id=Use%20of%20Proceeds%20from%20Global%20Offering) Net proceeds from the global offering totaled HKD 89.9 million, allocated for strategic investments and acquisitions (54.3%), information technology development (28.0%), and enhancing employee incentive mechanisms (17.7%), with HKD 67.9 million unutilized as of June 30, 2025, expected to be fully utilized by the end of 2025 - The net proceeds from the global offering amounted to **HKD 89.9 million**[81](index=81&type=chunk) Use and Allocation of Proceeds from Global Offering | Use | Share (%) | Planned Allocation (HKD million) | Unutilized Amount as of June 30, 2025 (HKD million) | Expected Full Utilization Time | | :--- | :--- | :--- | :--- | :--- | | Strategic investments and acquisitions to expand property management business | 54.3 | 48.8 | 48.8 | By end of 2025 | | Development, enhancement, and implementation of information technology | 28.0 | 25.2 | 14.4 | By end of 2025 | | Improvement of employee incentive mechanisms to attract, cultivate, and retain talent | 17.7 | 15.9 | 4.7 | By end of 2025 | | **Total** | **100.0** | **89.9** | **67.9** | | - The unutilized net proceeds are currently held as bank deposits and are intended to be used according to the proposed allocation in the prospectus[81](index=81&type=chunk) [Employees and Remuneration Policy](index=27&type=section&id=Employees%20and%20Remuneration%20Policy) As of June 30, 2025, the company employed 12,178 staff, with total employee costs decreasing to RMB 227 million, mainly due to changes in personnel structure and adjustments to social insurance contribution bases, and remunerates employees through fixed salaries, allowances, and discretionary bonuses - As of June 30, 2025, the Group employed **12,178 employees** (December 31, 2024: 11,682 employees)[82](index=82&type=chunk) - For the six months ended June 30, 2025, total employee costs were **RMB 227 million** (H1 2024: RMB 234.6 million), with the decrease primarily due to changes in personnel structure and adjustments to social insurance contribution bases[83](index=83&type=chunk) - The remuneration policy includes fixed salaries, other allowances, and discretionary bonuses based on performance[82](index=82&type=chunk) [Interim Dividends](index=28&type=section&id=Interim%20Dividends) The Board has resolved not to declare any interim dividend for the reporting period - The Board has resolved not to declare any interim dividend for the reporting period[84](index=84&type=chunk) [Compliance with Corporate Governance Code](index=28&type=section&id=Compliance%20with%20Corporate%20Governance%20Code) The company is committed to maintaining high standards of corporate governance and has complied with all applicable code provisions of Appendix C1 to the Listing Rules on Corporate Governance Code during the reporting period - The company has adopted and complied with all applicable code provisions under the Corporate Governance Code in Appendix C1 to the Listing Rules for securities on the Main Board of the Stock Exchange[85](index=85&type=chunk) [Audit Committee and Review of Interim Results](index=28&type=section&id=Audit%20Committee%20and%20Review%20of%20Interim%20Results) The Audit Committee has reviewed and approved the unaudited interim results for the six months ended June 30, 2025, deeming them compliant with applicable accounting standards, Listing Rules, and other legal requirements, with adequate disclosures made - The Audit Committee comprises two independent non-executive directors and one non-executive director, with Ms Wang Yushuang as the chairperson[86](index=86&type=chunk) - The Audit Committee has reviewed the Group's unaudited interim results for the six months ended June 30, 2025, and considers them to be in compliance with applicable accounting standards, the Listing Rules, and other applicable legal requirements, with adequate disclosures made[86](index=86&type=chunk) [Standard Code for Securities Transactions](index=29&type=section&id=Standard%20Code%20for%20Securities%20Transactions) The company has adopted the Standard Code as the code of conduct for securities transactions by directors, senior management, and relevant employees, confirming all directors' compliance during the reporting period - The company has adopted the Standard Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix C3 to the Listing Rules[87](index=87&type=chunk) - All directors have confirmed compliance with the Standard Code during the reporting period and up to the date of this announcement[87](index=87&type=chunk) [Other Information](index=29&type=section&id=Other%20Information) This section covers additional disclosures including material legal proceedings, public float, changes in directors' information, post-reporting period events, and publication details [Material Legal Proceedings](index=29&type=section&id=Material%20Legal%20Proceedings) During the reporting period and up to the date of this announcement, the company was not involved in any material legal proceedings or arbitration - During the reporting period and up to the date of this announcement, the company was not involved in any material legal proceedings or arbitration[88](index=88&type=chunk) [Public Float](index=29&type=section&id=Public%20Float) During the reporting period, the company maintained a sufficient public float of 25% of its total issued share capital as required by the Listing Rules - The company has maintained a sufficient public float of **25% of its total issued share capital** as required by the Listing Rules[89](index=89&type=chunk) [Changes in Directors' Information](index=30&type=section&id=Changes%20in%20Directors'%20Information) No changes in directors' information requiring disclosure have occurred since the publication of the 2024 annual report - No changes in information regarding any director requiring disclosure under paragraphs (a) to (e) and (g) of Rule 13.51(2) of the Listing Rules have occurred since the publication of the 2024 annual report up to the date of this announcement[90](index=90&type=chunk) [Events After Reporting Period](index=30&type=section&id=Events%20After%20Reporting%20Period) No other significant events have occurred from June 30, 2025, up to the date of this announcement - No other significant events have occurred for the Group from June 30, 2025, up to the date of this announcement[91](index=91&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=30&type=section&id=Purchase,%20Sale%20or%20Redemption%20of%20the%20Company's%20Listed%20Securities) During the reporting period and up to the date of this announcement, neither the company nor its subsidiaries purchased, sold, or redeemed any of the company's listed securities, and no treasury shares were held - During the reporting period and up to the date of this announcement, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities[92](index=92&type=chunk) - As of June 30, 2025, the company did not hold any treasury shares[92](index=92&type=chunk) [Publication of Interim Results Announcement and Interim Report on HKEX and Company Website](index=30&type=section&id=Publication%20of%20Interim%20Results%20Announcement%20and%20Interim%20Report%20on%20HKEX%20and%20Company%20Website) The interim results announcement has been published on the HKEX and company websites, and the interim report will be promptly dispatched to shareholders and published - This interim results announcement has been published on the HKEX website (www.hkexnews.hk) and the company's website (www.sdrhwy.cn)[93](index=93&type=chunk) - The company's interim report for the reporting period will be promptly dispatched to the company's shareholders and published on the HKEX and company websites[93](index=93&type=chunk) [Board Information](index=30&type=section&id=Board%20Information) As of the date of this announcement, the Board comprises two executive directors, three non-executive directors, and three independent non-executive directors - As of the date of this announcement, Mr Yang Liqun and Mr Fei Zhongli are executive directors[95](index=95&type=chunk) - Mr Luan Tao, Mr Luan Hangqian, and Mr Cheng Xin are non-executive directors[95](index=95&type=chunk) - Ms Wang Yushuang, Ms Bao Ying, and Ms He Murong are independent non-executive directors[95](index=95&type=chunk)

Group 1 - The company, Runhua Services (02455.HK), announced a board meeting scheduled for August 28, 2025, to approve the interim results for the six months ending June 30, 2025, and to consider the payment of an interim dividend, if any [1]

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，概不會就本公告全部 或任何部分內容而產生或因倚賴該等內容而引致之任何損失承擔任何責任。 潤華生活服务集團控股有限公司（「本公司」）董 事（「董 事」）會（「董事會」）謹 此 宣 佈， 將 於2025年8月28日（星 期 四）舉 行 董 事 會 會 議，藉 以（其 中 包 括）批 准 本 公 司 及 其 附屬公司截至2025年6月30日止六個月之中期業績及其發佈，以及考慮派付中期 股 息（如 有）。 承董事會命 潤華生活服務集團控股有限公司 主席兼執行董事 楊立群先生 香港，2025年8月18日 Runhua Living Service Group Holdings Limited 潤華生活服务集團控股有限公司 （於開曼群島註冊成立的有限公司） （股份代號：2455） 董事會會議日期 於本公告日期，楊立群先生及費忠利先生為執行董事；欒濤先生、欒航乾先生及 程 欣 先 生 為 非 執 行 董 事；以 及 王 玉 霜 女 士、鮑 穎 女 士 及 何 慕 蓉 女 士 為 獨 立 非 執 行董事。 ...

I. 法定/註冊股本變動 | 1. 股份分類 | 普通股 | 股份類別 | 不適用 | | | 於香港聯交所上市 (註1) | | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 02455 | 說明 | | | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | | 法定/註冊股本 | | | 上月底結存 | | | 500,000,000 | USD | | 0.0001 | USD | | 50,000 | | 增加 / 減少 (-) | | | | | | | USD | | | | 本月底結存 | | | 500,000,000 | USD | | 0.0001 | USD | | 50,000 | 本月底法定/註冊股本總額： USD 50,000 股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 截至月份: 2025年7月31日 狀態: 新提交 致：香港交易及結算所有限公司 公司名稱: 润华生活服务集团控股有限公司 呈交日期: ...

Core Viewpoint - Runhua Services (02455) has reported significant growth in its property management services, particularly in regions outside of Shandong, including Ningxia and Jiangsu [1] Group 1: Business Expansion - The company has expanded its property management services beyond Shandong, achieving notable growth in Ningxia and Jiangsu [1] - Recent contracts include property management services for Ningxia Hui Autonomous Region Maternal and Child Health Hospital and Jiangsu Jingjiang People's Hospital [1] - The company has also made significant breakthroughs in managing properties for educational institutions, signing contracts with Rehabilitation University, Shandong Special Education Vocational College, and Shandong University of Traditional Chinese Medicine [1] Group 2: Strategic Focus - The company will continue to deepen its business in Shandong while also expanding into regions such as Beijing-Tianjin-Hebei, Yangtze River Delta, and Pearl River Delta [1] - There is a sustained focus on hospital property management services, with plans to expand into public transportation and educational sectors [1]

格隆汇8月4日丨润华服务(02455.HK)公告，公司欣然宣布，(i)公司的物业管理服务业务，除深耕山东区 域为主，也拓展到多个其他省份，公司的物业管理服务近期在宁夏回族自治区、江苏省的业务出现了跨 越式增长，公司先后签约宁夏回覆自治区妇幼保健院、江苏省靖江市人民医院，及(ii)公司除深耕医院 物业管理外，在其他业态上也有较大突破，公司先后签约康复大学、山东特殊教育职业学院及山东中医 药大学的物业管理服务。 集团已经及将要持续深耕山东省的业务，同时向京津冀、长三角、珠三角等区域拓展，及集团持续深耕 医院物业管理服务，同时拓展到公共交通、学校等业态。 ...

Core Viewpoint - Runhua Services (02455) has announced significant growth in its property management services, particularly in regions outside of its primary focus in Shandong Province, with notable expansions in Ningxia and Jiangsu [1] Group 1: Business Expansion - The company has successfully signed contracts for property management services with Ningxia Hui Autonomous Region Maternal and Child Health Hospital and Jiangsu Province Jingjiang People's Hospital [1] - In addition to its focus on hospital property management, the company has made substantial breakthroughs in other sectors, signing contracts with Rehabilitation University, Shandong Special Education Vocational College, and Shandong University of Traditional Chinese Medicine [1] Group 2: Regional Development - The company is committed to deepening its business in Shandong Province while also expanding into the Beijing-Tianjin-Hebei, Yangtze River Delta, and Pearl River Delta regions [1] - The company continues to focus on hospital property management services while also diversifying into public transportation and educational institutions [1]

（股份代號：2455） 自願公告 集團在拓展山東省外的物業管理服務業務和 不同的物業管理服務業態方面取得積極進展 本公告乃由 潤華生活服务集團控股有限公司（「本公司」，連 同 其 附 屬 公 司 統 稱「本 集 團」）自 願 作 出，以 向 本 公 司 股 東（「股 東」）及 潛 在 投 資 者 提 供 本 集 團 的 最 新 業 務 發展情況。 本公司欣然宣佈，(i)本公司的物業管理服務業務，除深耕山東區域為主，也拓展 到 多 個 其 他 省 份，公 司 的 物 業 管 理 服 務 近 期 在 寧 夏 回 族 自 治 區、江 蘇 省 的 業 務 出 現 了 跨 越 式 增 長，公 司 先 後 簽 約 寧 夏 回 覆 自 治 區 婦 幼 保 健 院、江 蘇 省 靖 江 市 人民醫院，及(ii)本公司除深耕醫院物業管理之外，在其他業態上也有較大突破， 公 司 先 後 簽 約 康 復 大 學、山 東 特 殊 教 育 職 業 學 院 及 山 東 中 醫 藥 大 學 的 物 業 管 理 服務。 香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負 責，對其準確性或完整性亦不發表任何聲明，並明確表示，概 ...

Financial Performance - The company achieved a revenue of RMB 903.691 million for the year ended December 31, 2024, representing a year-on-year growth of 17.6%[10] - Gross profit for the same period was approximately RMB 127.886 million, a decrease of 4.0% compared to the previous year[10] - The company's net profit attributable to shareholders was RMB 45.558 million, an increase from RMB 41.459 million in 2023[8] - Total assets as of December 31, 2024, amounted to RMB 735.047 million, up from RMB 715.549 million in 2023[9] - Total revenue increased by RMB 135.3 million or 17.6% to RMB 903.7 million for the year ending December 31, 2023, primarily driven by the property management segment's growth from RMB 701.9 million to RMB 841.8 million[23] - The overall gross margin decreased by 3.1 percentage points to 14.2% from 17.3% in 2023, mainly due to a reduction in the gross margin of property management services[30] - Net profit increased by RMB 3.8 million or 8.9% to RMB 45.5 million from RMB 41.7 million for the year ended December 31, 2023, while the net profit margin decreased to 5.0% from 5.4% due to reduced gross margins[39] Revenue Segmentation - Property management services accounted for 93.2% of total revenue, with hospital contributions rising from RMB 296.7 million to RMB 378.7 million, reflecting a 27.6% increase[24] - The company reported a significant increase in property management revenue from RMB 18.1 million to RMB 21.0 million, marking a growth of 15.7%[11] - Hospital property management revenue grew from RMB 296.7 million in 2023 to RMB 378.7 million in 2024[12] - The property engineering and landscaping services segment generated revenue of RMB 35.0 million, representing 3.9% of total revenue, a decrease attributed to the completion of several large projects[25] - Rental services from property investments contributed RMB 21.0 million, or 2.3% of total revenue, due to leasing a large investment property in Jinan[27] Strategic Plans and Market Position - The company plans to strengthen its market position in Shandong, particularly in hospital property management services, through internal growth and strategic acquisitions[15] - The group plans to expand its business in key cities through mergers, strategic partnerships, and competitive bidding, focusing on Shandong Province due to ongoing economic growth and urbanization in China[16] - The group aims to enhance its market share in Shandong Province and expand into developed regions like the Yangtze River Delta and Beijing-Tianjin-Hebei through acquisitions and partnerships[16] - The group will continue to focus on value-added services as a priority for future development[16] Cost and Expenses - Total service costs for the group amounted to RMB 775.8 million, an increase of RMB 140.6 million or 22.1% compared to RMB 635.2 million in the same period of 2023[28] - Administrative expenses decreased by RMB 5.3 million or 6.7% to RMB 73.4 million from RMB 78.7 million for the year ended December 31, 2023, mainly due to reduced listing expenses[35] - Financial costs decreased by RMB 1.4 million or 14.0% to RMB 8.4 million from RMB 9.7 million for the year ended December 31, 2023, primarily due to reduced interest on lease liabilities[36] Assets and Liabilities - The total liabilities as of December 31, 2024, were RMB 381.710 million, compared to RMB 374.572 million in 2023[9] - Trade receivables and bills receivable increased by RMB 65.3 million or 33.7% to RMB 258.9 million from RMB 193.6 million as of December 31, 2023, driven by growth in property management services for hospitals with longer settlement periods[43] - Trade payables increased by approximately RMB 35.4 million or 71.2% to RMB 85.2 million from approximately RMB 49.7 million as of December 31, 2023, consistent with the increase in trade receivables[45] Corporate Governance and Compliance - The board is committed to high standards of corporate governance and has adopted the principles and code provisions of the Corporate Governance Code[188] - The company emphasizes ethical conduct and corporate governance in all business operations[187] - The board consists of two executive directors, three non-executive directors, and three independent non-executive directors, ensuring a balanced composition for effective governance[195] - The independent non-executive directors have reviewed the ongoing related transactions and confirmed their compliance with listing rules[172] Shareholder and Market Information - The group successfully listed on the Hong Kong Stock Exchange on January 17, 2023, issuing 75,000,000 shares at a price of HKD 1.70 per share, raising net proceeds of HKD 89.9 million[19] - The board believes that the public listing will enhance the company's image, brand recognition, and market reputation, facilitating future financing opportunities[22] - The company raised a net amount of HKD 89.9 million from its global offering, with shares priced at HKD 1.70 each[109] Employee and Labor Relations - The group employed 11,682 employees as of December 31, 2024, an increase from 9,906 employees in 2023[59] - The group has maintained a prudent financial management approach to ensure a healthy liquidity position during the reporting period[55] Risk Management - The group has identified significant risks that could adversely affect its business performance and financial condition, including the inability to secure new property management agreements[88] - The group emphasizes the importance of risk management for effective operations and reliable financial reporting, with senior management assisting the board in evaluating significant risks[94] Future Outlook - The company provided an optimistic outlook for the next quarter, projecting revenue growth of A% and an increase in user engagement metrics[3] - New product launches are expected to contribute an additional $B million in revenue, with anticipated market penetration of C%[4] - The company is investing in R&D for new technologies, allocating $D million towards innovation initiatives[5]

Overview - The core viewpoint of the article emphasizes the significant growth and transformation in China's hospital management sector, driven by government policies and increasing public health awareness [1][4][11]. Industry Background - The Chinese government has implemented various policies to promote the development of the healthcare industry, encouraging social capital to participate in medical services and advancing a multi-tiered healthcare system [4][11]. - The number of hospitals in China is projected to reach 39,000 by 2024, representing a year-on-year growth of 1.68% [1][9]. - The market size of the hospital management industry is expected to reach 806.28 billion yuan in 2024, with a year-on-year growth of 9.53% [1][11]. Industry Chain - The upstream of the hospital management industry includes medical devices, pharmaceuticals, hospital information management systems, and clinical information systems [7]. - The midstream consists of public hospitals, private hospital groups, and third-party hospital management service providers [7]. - The downstream includes patients and institutions requiring medical services, such as health check-up centers and nursing homes [7]. Current Development - The focus on improving medical quality and safety has led to significant advancements in healthcare services, with a notable increase in both the number of medical institutions and the quality of services provided [9]. - The rise in public health awareness has shifted patient expectations towards a more comprehensive range of services, including preventive care and health management [4][11]. Competitive Landscape - The hospital management industry features a mix of public hospitals, private hospital groups, and third-party service providers, each with distinct operational focuses and market strategies [13]. - Public hospitals are transitioning towards refined operations, while private hospitals emphasize market-driven models and specialized services [13]. - Third-party providers are adopting asset-light models to offer specialized management services, enhancing operational efficiency for hospitals [13]. Representative Companies - Aier Eye Hospital Group, established in 2002, has expanded its network to 881 facilities globally, with a significant presence in China [15]. - Runhua Service Group focuses on hospital logistics and management services, reporting a revenue of 904 million yuan in 2024, with a gross profit margin of 14.15% [17]. Future Trends - Hospitals are expected to enhance patient experience by streamlining processes such as online appointment scheduling and personalized medical services [19]. - There will be a stronger emphasis on cost control and resource optimization to improve operational efficiency amid policy pressures [19].