Investment Rating - The report maintains a "Buy" rating for the company with a target price of HKD 2.79, unchanged from the previous target [1][3][4]. Core Insights - The company reported a revenue growth of 18% year-on-year for 1H24, with net profit increasing by 8%. Despite a contraction in gross margin to 32.8%, it remains significantly above the industry average of over 20% [1][2]. - The value of new contracts surged by 227% year-on-year, reaching RMB 353 million, attributed to strategic resource utilization and partnerships with state-owned enterprises [1][2]. - The resilience of the catering service segment was highlighted, with a 45% increase in revenue, contributing to a rise in the gross margin of value-added services (VAS) by 2.8 percentage points to 27.5% [2][3]. Summary by Sections Financial Performance - Revenue for 1H24 reached RMB 709 million, driven by a 22% year-on-year increase in managed gross floor area (GFA). Property management and owner VAS grew by 28% and 26% respectively, while commercial operations saw a 10% decline due to lost contracts [2][5]. - The gross margin decreased by 4.9 percentage points, but the net profit margin only fell by 1.6 percentage points to 16.7%, indicating effective cost management [2][6]. Business Segments - The catering service segment showed strong performance with a revenue increase of 45%, now accounting for 43% of the owner VAS, up from 37.2% in 2023 [2][6]. - The company expects the gross margin contribution from owner VAS to expand to approximately 30% by the end of 2024, despite challenging economic conditions [1][2]. Valuation - The company is currently valued at a P/E ratio of 5.5x for 2024E, with a target price based on an 8x P/E multiple, indicating potential upside [3][4][9]. - The report emphasizes the company's strong expansion pace and the cyclical resilience of its VAS, reinforcing the positive outlook [3][4].

Revenue and Profitability - The group's revenue reached RMB 709.0 million, an increase of 18.2% compared to RMB 599.8 million in the same period of 2023[1] - Profit attributable to equity shareholders was RMB 118.1 million, a growth of 7.9% from RMB 109.5 million in 2023[2] - The total revenue for the six months ended June 30, 2024, was RMB 709,018 thousand, an increase of 18.3% compared to RMB 599,785 thousand for the same period in 2023[10] - The group reported a profit before tax of RMB 152,938 thousand for the six months ended June 30, 2024, up from RMB 142,209 thousand in the same period of 2023, indicating a growth of 7.4%[13] - Net profit attributable to shareholders was RMB 118.1 million, a 7.9% increase year-on-year[27] Revenue Breakdown - Property management services generated revenue of RMB 405.6 million, accounting for 57.2% of total revenue, up 27.7% from RMB 317.7 million in 2023[1] - The group’s revenue from life services was RMB 170,448 thousand, an increase of 26.1% from RMB 135,167 thousand in the previous year[13] - The group’s revenue from commercial operation services was RMB 65,230 thousand, a decrease of 10.1% from RMB 72,526 thousand in the previous year[13] - The group’s revenue from non-owner value-added services was RMB 67,706 thousand, a decrease of 8.9% from RMB 74,346 thousand in the previous year[13] - Revenue from Chengdu, Kunming, and Wenzhou accounted for 62.7% of total revenue during the reporting period[27] Growth and Expansion - The number of projects under management increased to 244, with a managed area of approximately 35.4 million square meters, a growth of about 21.8% compared to 2023[2] - The number of signed projects increased to 264, with a signed area of 40.5 million square meters, reflecting a growth of approximately 6.8% compared to 2023[2] - The total managed area increased by 21.9% to 3,542.9 million square meters as of June 30, 2024, compared to 2,907.6 million square meters in the same period of 2023[39] - The company achieved a total contract signing amount of RMB 353 million in the first half of 2024, exceeding the annual target of RMB 300 million, representing a 227% increase year-on-year[28] - The company plans to continue expanding its market presence in key urban areas, particularly in the Chengdu-Chongqing area and the East China region[78] Financial Position - The net assets of the company amounted to RMB 1,310.8 million as of June 30, 2024, compared to RMB 1,256.7 million as of December 31, 2023[6] - The total assets less current liabilities were RMB 1,342.3 million, an increase from RMB 1,315.7 million in the previous period[5] - The current ratio remained stable at 2.4 times as of June 30, 2024, with no interest-bearing debt outstanding[71] - Trade receivables increased by approximately RMB 178.8 million or 56.3% to RMB 496.4 million as of June 30, 2024, driven by business growth and an increase in managed floor area[67] Expenses and Costs - Employee costs totaled RMB 164,051 thousand for the six months ended June 30, 2024, slightly up from RMB 162,972 thousand in the same period of 2023[15] - The company's total sales cost for the six months ended June 30, 2024, was approximately RMB 476.7 million, an increase of about RMB 103.1 million or 27.6% compared to RMB 373.6 million for the same period in 2023[55] - Administrative expenses decreased by approximately RMB 12.2 million or 14.9% to RMB 69.3 million for the six months ended June 30, 2024, due to ongoing operational efficiency improvements[60] Dividends and Shareholder Returns - The company proposed an interim dividend of HKD 0.090 per share, up from HKD 0.073 per share in the same period of 2023[2] - The company declared an interim dividend of HKD 0.090 per share for the six months ending June 30, 2024, compared to HKD 0.073 per share for the same period in 2023[76] Corporate Governance - The company has committed to maintaining high standards of corporate governance and has complied with all relevant codes during the reporting period[81] - The board of directors consists of executive directors Mr. Liu Xu and Ms. Chen Jing, non-executive directors Mr. Jiang Mengjun (Chairman), Ms. Wu Min (Co-Chair), Ms. Li Wei, and Ms. Zhang Wei, as well as independent non-executive directors Mr. Cao Qilin, Mr. Jiang Zhiwu, and Mr. Li Zhengguo[86] - The company is led by a diverse board with a mix of executive, non-executive, and independent directors, ensuring a range of perspectives in decision-making[86] Strategic Initiatives - The company established strategic partnerships and joint ventures, including a collaboration with Chengdu Economic Development Zone Investment Co., Ltd., resulting in a contract amount of RMB 66.93 million in 2024[28] - The company has focused on expanding its market presence in high-energy cities in the Southwest and East China regions, enhancing its competitive edge[33] - The company has implemented organizational restructuring and system enhancements to improve its market expansion capabilities[38]

Financial Performance - The company recorded revenue of approximately RMB 1,260.7 million, representing a year-on-year growth of 10.7%[9] - The net profit attributable to shareholders was RMB 215.0 million, an increase of 5.9% compared to the previous year[9] - The total property management revenue for 2023 was RMB 64,703.0 million, a 32.5% increase from RMB 48,827.7 million in 2022[25] - The company reported a significant increase in revenue for the fiscal year ending December 31, 2023, with a total revenue of HKD 1.2 billion, representing a year-on-year growth of 15%[122] - Overall revenue increased by 10.7% to RMB 1,260.7 million from RMB 1,138.9 million in the previous year[57] Operational Efficiency - The company reduced the management expense ratio by 0.5 percentage points to 13.4%, achieving a net profit margin of 19.1%[9] - The approval time for processes improved by 59.6%, while the rate of position violations decreased by 55%[10] - The company achieved a comprehensive satisfaction score of 90 points and improved operational service completion rate to 98%[10] - The average occupancy rate for commercial projects managed by the company was 87.8%, with a gross profit margin of 60.2%[20] - The company achieved a management expense ratio of 13.4%, a decrease of 0.5 percentage points from the previous year, with a net profit margin of 17.1%[17] Service Expansion and Development - The company aims to enhance service quality and management efficiency through digitalization, focusing on high-quality development rather than just scale growth[10] - The company is expanding its service offerings to B-end clients, providing a comprehensive range of enterprise services tailored to different stages of business development[11] - The company aims to enhance service quality and explore diversified service solutions, integrating property management with lifestyle services[13] - The company is leveraging its supply chain and brand advantages to enhance product offerings and customer satisfaction in both B-end and C-end markets[43] - The company plans to explore opportunities for mergers and acquisitions to drive growth in low-cycle periods[12] Market Presence and Growth - The total managed floor area reached 32.258 million square meters, up 11.9% year-on-year, while the contracted area increased by 5.6% to 38.172 million square meters[9] - The number of properties under management increased to 230 in 2023, representing a growth rate of 20.4% compared to 191 in 2022[23] - The company operates in 33 cities across 14 provinces, with a significant focus on high-end residential and commercial properties in core urban areas[19] - The company added over 20 new external projects in 2023, including high-end residential and financial sector projects, enhancing its market presence[33] - The company aims to deepen market penetration in Chengdu, leveraging its unique service capabilities in property, commercial, and lifestyle services[54] Revenue Breakdown - Property management services revenue increased by 32.5% to RMB 647.0 million, accounting for 51.3% of total revenue, up from 42.9% last year[57] - Revenue from New Hope Wuxin Industrial Group reached RMB 26,380.4 million, representing 40.8% of total revenue, with a year-on-year increase of 12.8%[36] - Community living services generated RMB 145.2 million, accounting for 50.0% of total revenue, while community asset management services contributed RMB 33.9 million, representing 11.7%[41] - The lifestyle services segment is becoming a significant growth driver for the company despite a 4.2% revenue decline[41] - Non-owner value-added services revenue decreased by 26.1% to RMB 169.5 million, contributing 13.4% to total revenue, down from 20.1% last year[50] Corporate Governance - The board consists of nine members, including two executive directors, four non-executive directors, and three independent non-executive directors[124] - The company has established three board committees: the Audit Committee, the Remuneration Committee, and the Nomination Committee[130] - The board has confirmed its responsibility for preparing the financial statements for the fiscal year ending December 31, 2023[137] - The external auditor, KPMG, is responsible for providing an independent opinion on the consolidated financial statements prepared by the board[137] - The company has implemented a risk management and internal control system that includes a structured framework for managing risks and ensuring compliance with policies[185] Employee and Training Initiatives - The company has approximately 4,309 employees as of December 31, 2023, compared to 4,031 employees as of December 31, 2022[92] - The company continues to provide sufficient vocational training to employees, focusing on key operational areas[92] - The company has a commitment to gender equality in hiring practices and aims to increase the number of female employees[175] - The company has established a diverse platform for employees, promoting an inclusive workplace regardless of religion, age, gender, or disability[175] - The company has adopted measurable goals for board diversity and will monitor progress towards achieving these goals annually[173] Future Outlook - For the upcoming fiscal year, New Hope Service Holdings projects a revenue growth target of 20% to 25%, aiming for a total revenue of between HKD 1.8 billion and HKD 1.9 billion[104] - The company provided a positive outlook for the next fiscal year, projecting a revenue growth of 10% to 12%[122] - The company plans to use the remaining IPO proceeds efficiently to seize market opportunities and balance funding arrangements[94] - The company is considering strategic acquisitions to enhance its service offerings, with a budget of HKD 300 million earmarked for potential deals[122] - The management team emphasized the importance of sustainability initiatives, committing to reduce carbon emissions by 20% over the next three years[104]

Investment Rating - The report maintains a "BUY" rating for New Hope Services with a target price of HK$2.79, reflecting an upside potential of 86.9% from the current price of HK$1.49 [1][3]. Core Insights - New Hope Services reported a net profit (NP) increase of 6% year-on-year (YoY) for FY23, with earnings slightly below expectations. The company achieved revenue growth of 10.7% YoY, totaling RMB1,261 million [1][6]. - The company raised its dividend payout ratio to 60% from 48% in FY22, resulting in a dividend yield of 12%, which positively impacted the share price by 6% following the announcement [1][6]. - New Hope Services has a strong cash position, with a cash balance of RMB1.15 billion, exceeding its market capitalization of HK$1.21 billion, indicating robust cash collection capabilities [1][3]. Financial Performance - FY23 revenue was RMB1,261 million, up 10.7% YoY, while net profit reached RMB215 million, reflecting a 6% increase YoY. The net profit margin slightly decreased to 17.1% [1][6]. - The gross profit margin narrowed to 34.9%, down 2.9 percentage points, attributed to increased competition in the third-party market and the exit from higher-margin non-owner value-added services [1][6]. - The company anticipates revenue growth of 10-20% and net profit growth of 5-10% in the upcoming periods [1][6]. Operational Highlights - The Basic Property Management segment's revenue contribution increased to 37.9% in FY23 from 31.3% in FY22, with expectations to stabilize around 40% [1][6]. - The catering services business experienced significant growth, achieving a 44% YoY revenue increase in FY23 and securing three new contracts valued at RMB65 million in Q1 2024 [1][6]. Valuation Metrics - The company is currently trading at a price-to-earnings (P/E) ratio of 5x for 2024E, while the target price is based on a P/E of 8x for 2024E [1][3]. - The report indicates a projected P/E of 4.6 for FY23, with a forecasted P/E of 4.8 for FY24 [2][12].

Dividends - The company declared an interim dividend of HKD 0.073 per share, amounting to RMB 54.75 million, compared to zero in 2022[7]. - The proposed final dividend per ordinary share is RMB 0.091, totaling RMB 74.23 million, down from RMB 97.695 million in 2022[7]. - The company plans to declare a final dividend of RMB 0.091 per share for the year ended December 31, 2023, down from RMB 0.12 per share in 2022[109]. Revenue and Growth - The company achieved a revenue of RMB 290.6 million from its life services segment, a decrease of 4.2% compared to the previous year[17]. - The company reported a total revenue of RMB 64.70 million from property management services, with a year-on-year growth of 32.5%[16]. - The group's revenue increased from RMB 1,138.9 million for the year ended December 31, 2022, to RMB 1,260.7 million for the year ended December 31, 2023, representing a growth of approximately 10.7%[55]. - The company's total revenue for the year ended December 31, 2023, reached RMB 1,260.7 million, an increase of 10.7% compared to RMB 1,138.9 million in the same period of 2022[108]. - Property management services generated revenue of RMB 647.0 million, accounting for 51.3% of total revenue, a 32.5% increase from RMB 488.3 million in 2022[108]. - The life service revenue decreased by 4.2% from approximately RMB 303.3 million to approximately RMB 290.6 million, accounting for 23.1% of the total revenue[56]. - The income from non-property related transactions rose to RMB 41.97 million, a 59.6% increase compared to the previous year, with the proportion of non-property related transactions increasing by 6.5 percentage points to 14.6%[54]. Profitability - The company's gross profit was RMB 440.2 million, a 2.1% increase from RMB 431.1 million in 2022[108]. - The net profit attributable to equity shareholders was RMB 214,967 thousand, compared to RMB 203,033 thousand in the previous year, marking a 5.4% increase[122]. - The pre-tax profit for 2023 was RMB 283,934,000, up from RMB 266,420,000 in 2022, reflecting a year-over-year increase of approximately 6.4%[169]. - The company's attributable profit to equity shareholders rose to RMB 214,967,000 in 2023, compared to RMB 203,033,000 in 2022, representing an increase of approximately 5.8%[171]. Expenses and Costs - Total sales costs increased by approximately RMB 112.7 million or 15.9% to RMB 820.5 million, outpacing revenue growth due to a higher contribution from property management services with lower gross margins[28]. - Administrative expenses rose to approximately RMB 168.5 million, an increase of about RMB 10.1 million or 6.4% from approximately RMB 158.4 million in the previous year, primarily due to ongoing information technology advancements[60]. - Sales expenses decreased by 63.9% to RMB 1.3 million, reflecting ongoing cost reduction efforts[32]. - The total employee costs for 2023 were RMB 371,933,000, down from RMB 411,618,000 in 2022, indicating a reduction of about 9.6%[164]. Market Presence and Strategy - The company established joint ventures with local government entities in Chengdu, enhancing its market presence and project portfolio[15]. - The company plans to continue focusing on market expansion and investment opportunities, particularly in first-tier and new first-tier cities in the Chengdu-Chongqing economic circle and East China region[43]. - The company aims to leverage the urbanization opportunities in Chengdu, which has a property management market stock exceeding 593 million square meters and a coverage rate of 72.7%[193]. - The company continues to focus on high-quality service and market expansion in key urban areas, enhancing regional competitiveness[179]. Employee and Operations - The total number of employees increased to approximately 4,309, with total employee costs amounting to RMB 371.9 million, down from RMB 411.6 million in the previous year[42]. - The company operates in 33 cities across 14 provinces in China, with a managed floor area of 32.258 million square meters, an increase of 11.9% year-on-year[176]. - The number of managed properties increased to 230, up 20.4% from 191 in 2022, while the managed floor area grew to 3,225.8 million square meters, an 11.9% increase[104]. Financial Condition - The company maintained a good financial condition as of December 31, 2023[66]. - Cash and cash equivalents rose to RMB 1,145,270 thousand from RMB 1,039,740 thousand, showing a growth of 10.1%[122]. - Total assets less current liabilities increased to RMB 1,315,741 thousand from RMB 1,250,926 thousand, indicating a growth of 5.2%[122]. Customer Satisfaction and Service Quality - The company achieved a customer satisfaction rate of nearly 90 points, reflecting strong performance in project delivery with nearly 37,000 new homes delivered across 40 projects[105]. - The company plans to deepen its collaboration with New Hope Group to explore various service solutions, including property management combined with catering and retail services[54].

Financial Performance - The company achieved a net profit margin of 18.3% during the reporting period, maintaining a high level of profitability[2]. - Total revenue for the first half of 2023 reached RMB 317,746.0 thousand, representing a 36.3% increase compared to RMB 233,200.6 thousand in the same period of 2022[19]. - The company recorded revenue of RMB 599.8 million for the six months ended June 30, 2023, representing a 17.1% increase year-over-year, with net profit attributable to equity shareholders of RMB 109.5 million, up 9.6% from the previous year[36]. - The group's revenue increased by RMB 87.7 million or approximately 17.1% from RMB 512.1 million for the six months ended June 30, 2022, to RMB 599.8 million for the six months ended June 30, 2023[94]. - For the six months ended June 30, 2023, total revenue reached RMB 135,167.5 million, a 17.3% increase from RMB 115,280.4 million in the same period of 2022[65]. - The company achieved a significant increase in external market expansion, with managed floor area growing by 78.4% to 965.8 million square meters as of June 30, 2023[27]. - The company’s total assets as of June 30, 2023, were RMB 1,200,000,000, reflecting a stable financial position[181]. Property Management and Expansion - The managed floor area reached 29.1 million square meters, a year-on-year increase of 31.6%, while the contracted floor area grew to 37.9 million square meters, up 22.5%[4]. - The number of properties under management increased to 205, representing a 31.4% growth compared to the previous year, with a total of 245 contracted properties, an 18.4% increase[6]. - The company has signed 245 property management projects across 33 cities, indicating a strong market expansion strategy[4]. - The company expanded its managed floor area by 2.8 million square meters, with 40.3% coming from New Hope Wuxin Industrial and 59.7% from independent third parties[11]. - The company is focused on regional expansion, particularly in high-tier cities, to enhance its market presence[7]. - 91.5% of the company's property management projects are located in first-tier, new first-tier, and second-tier cities, with 95.9% of revenue derived from these areas[16]. - The company secured high-end residential projects in Wuxi and Chengdu, marking a strategic expansion into healthcare property management in Wenzhou and Kunming[24]. Revenue Breakdown - Revenue from New Hope Wuxin Industrial accounted for 50.9% of total revenue, with a year-on-year increase of 26.8%[12]. - Property management services generated RMB 317.8 million, accounting for 53.0% of total revenue, driven by an increase in managed floor area from 2,209.6 million square meters to 2,907.6 million square meters[83]. - Total revenue from property management services was RMB 91.6 million, up 28.8% year-over-year, while life services revenue was RMB 55.9 million, a 41.4% increase[61]. - Revenue from lifestyle services rose by 17.3% from approximately RMB 115.3 million (22.5% of total revenue) to approximately RMB 135.2 million (22.5% of total revenue) during the same period[96]. - Revenue from commercial operation services increased by 26.9% from RMB 57.2 million to RMB 72.5 million, driven by new contracts and active expansion of the business[97]. Cost and Profitability - The group's total cost of sales rose by approximately RMB 70.6 million or about 23.3% to approximately RMB 373.6 million, outpacing revenue growth due to a higher contribution from property management services, which have a lower gross margin[97]. - Gross profit increased by RMB 17.1 million or 8.2% from RMB 209.1 million to RMB 226.2 million[99]. - The gross margin decreased by 3.1 percentage points compared to the same period last year[100]. - Net profit attributable to shareholders increased by approximately RMB 13.7 million or about 13.1% from approximately RMB 104.3 million to approximately RMB 118 million[129]. Operational Efficiency - The management fee ratio was 13.6%, a decrease of 2.2% from the same period last year, reflecting improved operational efficiency[2]. - The company established 2 joint ventures and signed 15 projects under strategic cooperation frameworks with local state-owned enterprises, focusing on property management services[37]. - The company plans to deepen connections with New Hope Group to explore diverse service solutions, including property management combined with catering and retail services[69]. Employee and Administrative Information - The total employee cost for the reporting period was approximately RMB 163.0 million, compared to RMB 175.6 million as of June 30, 2022[157]. - The company had approximately 3,976 employees as of June 30, 2023, a decrease from 4,031 employees on December 31, 2022[157]. - Administrative expenses remained stable at approximately RMB 81.5 million for the six months ended June 30, 2023[85]. Financial Position and Risks - The company maintained a current ratio of 2.2 times as of June 30, 2023, down from 2.5 times at December 31, 2022[109]. - The company does not face significant risks related to market interest rate fluctuations due to the absence of major interest-bearing assets and liabilities[64]. - The company is closely monitoring foreign exchange risks and has implemented measures to mitigate these risks, including early bank hedging[149]. - The company has maintained compliance with corporate governance codes and continues to review its practices to ensure adherence[160]. Future Outlook - The company plans to utilize the net proceeds from its listing, which amounted to approximately RMB 648.7 million, for strategic acquisitions and investments, IT system upgrades, and working capital[136]. - The company aims to enhance its operational capabilities through the development of new life services, with an allocated budget of RMB 79.0 million for this purpose[154].

好 感谢我们国信证券的这个提问那么由我来回答这个问题那么确实在这样一个周期当中我们今年看到上半年发布业绩包括从前两年开始整个物业管理行业的毛利率其实都在伴随着地产的调控这样一个周期和收缩这样一个周期出现了这样的一个毛利率回归通道的这么的一个现象我们内部怎么样去看待这样的一个事情呢我觉得 构建我们卓越成本的这样一个体系我们认为在竞争更加激烈并且行业的这样一个增量更加少的这样一个情况下尤其是地产的一些业务减少的情况下我们需要去调整这个结构的状况下一个好的成本结构在这个高客户满意度下的合理成本的结构能够让我们更好的去度过这个周期所以说我们内部是这样看待这样一个问题那么从毛利率这样的一个下降的一个趋势而言的话对于新希望服务本身来讲的话 那么与此同时的话我们在这个物业管理服务当中我们也在持续的加大第三方项目的这样的一个获取那么伴随着这些项目持续的增多那么我们会相应的去拉低我们的整个的一个物业管理服务的毛利率所以说在这个方面的话我们今年也看到有一定程度的这样的一个下降所以说我是觉得这是我们下降的这样一个原因 衡量你是一个卓越的企业我们认为其实在物业行业的话我们认为几个指标对我们非常非常关键对我们降低成本也非常关键第一个就 ...

Financial Performance - The company's net profit for the six months ended June 30, 2023, was RMB 118,015,000, an increase of 13.1% compared to RMB 104,308,000 for the same period in 2022[1]. - Basic and diluted earnings per share increased to RMB 0.13 from RMB 0.12, reflecting a growth of 8.3% year-on-year[1]. - Total revenue for the six months ended June 30, 2023, reached RMB 599,785,000, representing a 17.1% increase from RMB 512,106,000 in the same period of 2022[11]. - Gross profit was RMB 226.2 million, up 8.2% from RMB 209.1 million in the same period of 2022, with a gross margin of 37.7%[26]. - Profit attributable to equity shareholders was RMB 109.5 million, a growth of 9.6% from RMB 99.9 million in the same period of 2022[26]. - The company reported a pre-tax profit of RMB 142.2 million for the six months ended June 30, 2023, compared to RMB 122.0 million for the same period in 2022[62]. - The company's net profit margin for the reporting period was 18.3%, maintaining a high level of profitability[76]. - Total revenue for the group reached RMB 599.8 million, a 17.1% increase year-on-year, with net profit attributable to equity shareholders rising by 9.6% to RMB 109.5 million[121]. Revenue Breakdown - Revenue from property management services was RMB 317,746,000, up 36.3% from RMB 233,201,000 year-on-year[11]. - Property management services generated revenue of RMB 317.7 million, accounting for 53.0% of total revenue, a growth of 36.2% from RMB 233.2 million in the same period of 2022[47]. - Lifestyle services achieved revenue of RMB 135.2 million, representing 22.5% of total revenue, an increase of 17.3% from RMB 115.3 million in the same period of 2022[47]. - Business operation services generated revenue of RMB 72.5 million, accounting for 12.1% of total revenue, a growth of 26.7% from RMB 57.2 million in the same period of 2022[47]. - Non-owner value-added services reported revenue of RMB 74.3 million, accounting for 12.4% of total revenue, a decrease of 30.2% from RMB 106.5 million in the same period of 2022[47]. - Community life services revenue increased by 19.8% to RMB 67.8 million, accounting for 50.1% of total revenue[56]. - The Southwest region contributed RMB 341.8 million in revenue, a 17.5% increase, representing 57.0% of total revenue, while the East China region generated RMB 166.2 million, up 21.5%[121]. Asset and Liability Management - The company reported a significant increase in non-current assets, with total non-current assets amounting to RMB 392,689,000 as of June 30, 2023, compared to RMB 376,236,000 at the end of 2022[3]. - Current assets totaled RMB 1,524,111,000, an increase from RMB 1,443,689,000 at the end of 2022, indicating a growth of 5.6%[3]. - The company's total liabilities increased to RMB 685,236,000 from RMB 568,999,000, reflecting a rise of 20.5%[3]. - Trade receivables increased by 23.7% to RMB 401.9 million, attributed to business growth and an increase in managed area[153]. - The company's current ratio was 2.2 times as of June 30, 2023, down from 2.5 times at the end of 2022[156]. - The company has no outstanding interest-bearing borrowings as of June 30, 2023, maintaining a net cash position[156]. Strategic Initiatives and Future Plans - The company plans to continue expanding its property management and commercial operation services, aiming for further revenue growth in these segments[10]. - The company plans to deepen its integration with New Hope Group to explore diverse service solutions, including property services combined with catering and retail[114]. - The company aims to focus on high-quality development and service quality to achieve sustainable growth in the property management sector[114]. - The group plans to utilize the net proceeds from the listing for strategic acquisitions and investments amounting to RMB 434.5 million, which represents 55.0% of the total funds[186]. Employee and Governance - As of June 30, 2023, the group had approximately 3,976 employees, a decrease from 4,031 employees as of December 31, 2022[196]. - Total employee costs for the reporting period amounted to approximately RMB 163.0 million, down from RMB 175.6 million for the same period in 2022[196]. - The company continues to provide sufficient vocational training to employees, focusing on key operational areas to enhance their skills[197]. - The company has adopted the corporate governance code as per the listing rules to maintain high standards of corporate governance and accountability[198]. - All directors confirmed compliance with the standards set out in the code of conduct for securities transactions by directors and employees as of June 30, 2023[200].

Financial Performance - The company's total revenue increased by 23.1% year-on-year, reaching approximately RMB 431.1 million for the year ended December 31, 2022[30]. - Net profit attributable to equity shareholders rose by approximately 8.8% to about RMB 203.0 million for the year ended December 31, 2022[15]. - The company's gross profit increased by RMB 54.4 million or 14.5% to RMB 431.1 million for the year ended December 31, 2022[8]. - The financial net income surged by 387.5% to RMB 19.5 million for the year ended December 31, 2022, primarily due to increased interest income from fundraising[12]. - The company achieved a revenue of approximately RMB 1,139.0 million for the reporting period, representing a year-on-year growth of 23.1%[46]. - The net profit attributable to shareholders increased to RMB 203.0 million, up 8.8% from RMB 186.6 million in the previous year, excluding one-time listing expenses[46]. - The company's net profit margin for the reporting period was 17.8%[46]. - The total revenue for the year was RMB 1,138.9 million, up from RMB 924.97 million in 2021, indicating a significant growth trajectory[72]. - The total cost of sales for the group was approximately RMB 707.8 million for the year ended December 31, 2022, an increase of approximately RMB 159.5 million or 29.1% compared to RMB 548.3 million for the same period in 2021[106]. - The group's gross profit margin decreased by 2.8 percentage points compared to the same period last year[108]. Revenue Breakdown - Online and offline retail services and catering service revenue grew by 110.3% to RMB 106.3 million for the year ended December 31, 2022, driven by the expansion of lifestyle services[6]. - Revenue from the lifestyle services segment was RMB 303.3 million, a year-on-year increase of 19.6%[65]. - The revenue from community asset management services decreased by 6.1% to RMB 40.3 million, primarily due to reduced income from parking and community space services impacted by COVID-19[90]. - The revenue from non-owner value-added services decreased by 1.9% to approximately RMB 229.3 million, mainly due to a reduction in property site services[105]. - The property management service revenue reached RMB 488.3 million in 2022, accounting for 42.9% of total revenue, up from 34.3% in 2021[72]. - The revenue from life services increased by 19.6% to RMB 303.3 million, accounting for 26.6% of total revenue[73]. - The revenue from commercial operations was RMB 118.1 million, a decrease of 1.9% compared to the previous year[70]. - Non-residential revenue amounted to RMB 213.1 million, reflecting a growth of 27.8% compared to the same period last year[80]. - Community life services revenue was RMB 156.7 million, a slight decline of 2.1% from RMB 160.1 million in the previous year[104]. Customer and Market Expansion - The company achieved a customer satisfaction score of 90 and a project renewal rate of 98%[21]. - The independent third-party managed floor area reached 13.4 million square meters, accounting for 46.5% of the total managed area, an increase of 17.8% year-on-year[51]. - The company reported that independent third-party projects accounted for approximately 69.4% of the newly managed floor area during the reporting period[51]. - The contracted floor area was 36.149 million square meters, reflecting a year-on-year growth of 37.0%[55]. - The managed floor area in the Southwest region was 15.943 million square meters, up 98.3% year-on-year, accounting for 55.3% of the total[55]. - The managed floor area in the East China region was 9.212 million square meters, an increase of 59.2% year-on-year, representing 32.0% of the total[55]. - The proportion of managed floor area from independent third-party developers reached 46.5%, a significant increase of 188.5% year-on-year[55]. - The number of properties under management increased to 191 as of December 31, 2022, from 104 in the previous year, representing a growth of 83.7%[74]. - The company has implemented a regional deep cultivation strategy, focusing on high-energy cities through market expansion and acquisitions[31]. - The company completed the acquisition of Chengdu Mingyu Global Commercial Management Co., enhancing its market presence in the southwest region[75]. Governance and Shareholder Relations - The company has adopted a board diversity policy to enhance the diversity of its board, considering various factors such as professional experience, knowledge, and gender[132]. - The company has established three board committees: the Audit Committee, the Remuneration Committee, and the Nomination Committee, each with clearly defined roles and responsibilities[119]. - The company recognizes the benefits of a diverse board and believes that increasing diversity at the board level is essential for achieving strategic goals and sustainable development[132]. - The board reviewed and confirmed the effectiveness of the shareholder communication policy[151]. - The company emphasizes the importance of effective communication with shareholders to enhance investor relations[166]. - The company has established a disclosure policy to ensure timely reporting and compliance with continuous disclosure obligations[163]. - The company encourages shareholders to attend the annual general meeting to raise any concerns directly with the board and senior management[184]. - The company has confirmed compliance with the independence of its independent non-executive directors as part of its annual review process[199]. Dividend and Financial Reserves - The company maintained a high cash dividend payout ratio of 50% of net profit attributable to shareholders[30]. - The company proposed a final dividend of RMB 0.12 per share for the year ended December 31, 2022, compared to RMB 0.071 for the previous year, pending shareholder approval[169]. - As of December 31, 2022, the company's distributable reserves amounted to approximately RMB 709.4 million[172]. Operational Efficiency - Administrative expenses totaled approximately RMB 158.4 million, a decrease of about RMB 14.1 million or approximately 8.2% from the previous year[96]. - Sales expenses decreased by RMB 0.3 million or 7.7% to RMB 3.6 million for the year ended December 31, 2022, compared to RMB 3.9 million for the previous year[110]. - The increase in sales costs was primarily due to the higher proportion of revenue contribution from property management and lifestyle services, which have a lower gross margin compared to other business lines[106]. - The company continues to adopt best practices and industry standards for risk management and internal controls[159].

Revenue Growth - Total revenue for the year ended December 31, 2022, was RMB 1,138,889,000, an increase from RMB 924,970,000 in 2021, representing a growth of approximately 23.1%[7] - The property management services segment generated revenue of RMB 488,277,000, up from RMB 317,255,000 in 2021, reflecting a growth of about 53.9%[7] - The company reported revenue of approximately RMB 1,139.0 million for the period, representing a year-on-year growth of 23.1%[26] - The life services segment generated revenue of RMB 303.3 million, a year-on-year increase of 19.6%[91] - The company achieved a total revenue of RMB 303.3 million from community life services and online/offline retail services, marking a growth rate of 19.6%[33] - Revenue from community living services was RMB 156.7 million, a slight decline of 2.1% compared to the same period last year, impacted by the COVID-19 pandemic[118] - Revenue from commercial operation services was RMB 118.1 million, a decrease of 1.9% year-on-year due to market conditions[36] - Revenue from non-owner value-added services was RMB 229.3 million, also down by 1.9% year-on-year, with its proportion of total revenue decreasing by 5.1%[37] Profitability - The company reported a profit before tax of RMB 266,420,000 for 2022, compared to RMB 202,212,000 in 2021, indicating an increase of approximately 31.8%[10] - The net profit attributable to equity shareholders for 2022 was RMB 203,033,000, compared to RMB 165,894,000 in 2021, marking a growth of around 22.4%[13] - Net profit attributable to equity shareholders was RMB 203.0 million, an increase of 8.8% compared to RMB 186.6 million in the previous year[26] - The net profit for the year ended December 31, 2022, increased by approximately RMB 56.4 million or about 34.0% to approximately RMB 222.3 million, compared to RMB 165.9 million for the year ended December 31, 2021[120] - The company's net profit margin for the reporting period was 17.8%[26] - The profit attributable to equity shareholders for the reporting period was RMB 203.0 million, an increase of 8.8% from RMB 186.6 million in 2021[1] Expenses and Costs - The company’s unallocated corporate expenses for 2022 were RMB 164,714,000, a decrease from RMB 174,478,000 in 2021, showing a reduction of approximately 5.0%[7] - Total administrative expenses for the group were approximately RMB 158.4 million for the year ended December 31, 2022, a decrease of about RMB 14.1 million or approximately 8.2% from approximately RMB 172.5 million for the year ended December 31, 2021[45] - The gross profit margin for community living services decreased by 3.5%, mainly due to an increase in the proportion of lower-margin online and offline retail services and catering services[44] Managed Area and Projects - The total managed floor area reached 28.83 million square meters, an increase of 98.3% year-on-year, with the East China region accounting for 9.21 million square meters, up 59.2% year-on-year[116] - The total managed floor area by independent third-party developers reached 13.4 million square meters, accounting for 46.5% of the total managed area, a growth of 188.5% year-on-year[29] - The number of managed projects was 191, with a managed floor area of approximately 28.8 million square meters, an increase of about 77.8% compared to 2021[1] - The number of signed projects was 235, with a signed floor area of 36.1 million square meters, representing a growth of approximately 37.0%[1] - The managed floor area increased from 16.21 million square meters as of December 31, 2021, to 28.83 million square meters as of December 31, 2022, driving revenue growth[66] Financial Position - The total equity attributable to shareholders increased to RMB 1,098,147,000 from RMB 952,849,000, representing a growth of 15.3%[169] - The net cash generated from operating activities was approximately RMB 178.8 million, compared to RMB 236.2 million in the same period of 2021[1] - Other payables and accrued expenses increased by 19.9% to RMB 223.7 million as of December 31, 2022, primarily due to the acquisition of Chengdu Mingyu and increased deposits[75] - Prepayments and other receivables increased by 39.5% to RMB 78.8 million as of December 31, 2022, due to business development and payments for information technology construction[74] Corporate Governance and Future Plans - The company maintains high standards of corporate governance, adhering to the corporate governance code as per the listing rules[122] - The company plans to continue expanding its market presence in first-tier, new first-tier, and second-tier cities in the Chengdu-Chongqing area and East China[108] - The company has reallocated HKD 79 million and HKD 39.5 million from "strategic acquisitions and investments" to "development of living services" and "working capital" respectively[108] Dividends - The proposed final dividend per ordinary share is RMB 0.12, compared to RMB 0.071 in 2021, representing an increase in dividend payout[47] - The company declared and paid dividends of RMB 58,058,000 to shareholders in 2022[191]