Business Strategy and Operations - The Group's business strategy emphasizes "efficiency improvement and value creation," focusing on refined operations and systematic enhancement of internal resource utilization [13]. - The Group aims to explore innovative revenue-generating channels to expand business growth boundaries, implementing a dual-wheel drive model of "internal efficiency and external expansion" [13]. - The strategic focus for the first half of 2025 includes "streamline operation, innovative expansion, and value empowerment" [15]. - The Group's operational efficiency and profitability are targeted for simultaneous improvement through effective cost structure optimization [13]. - The Group is focusing on cash flow and profitability targets by intensifying investment in tenant sourcing and value maximization [63]. - The Group is strategically expanding into cultural tourism and healthcare sectors, aiming for integrated development in "cultural tourism, healthcare, and sports" [65]. - The Group is actively expanding ancillary revenue touchpoints, including outdoor plaza leasing and advertising spaces, to establish a dual-engine profit model [63]. - The Group is exploring the "Business +" convergence model to drive cross-sector innovation synergies and revitalize underutilized assets [63]. Financial Performance - The Group's total revenue for the six months ended June 30, 2025, was approximately RMB610.9 million, a decrease of approximately RMB89.1 million or 12.7% compared to RMB700.0 million for the same period in 2024 [68]. - Revenue from property management services decreased by approximately RMB82.0 million or 13.2%, with basic property management services down by RMB69.0 million or 13.2% [71]. - The revenue from commercial operational services was approximately RMB73.4 million, a decrease of approximately RMB7.1 million or 8.9% compared to the previous year [70]. - For the six months ended June 30, 2025, total revenue was approximately RMB 537.4 million, a decrease of approximately RMB 82.0 million or 13.2% compared to RMB 619.5 million for the same period in 2024 [80]. - Gross profit for the six months ended June 30, 2025, was approximately RMB 168.3 million, representing a decrease of approximately RMB 50.4 million or 23.0% compared to RMB 218.7 million for the same period in 2024 [89]. - The gross profit margin for the Group decreased to approximately 27.5%, down 3.7 percentage points from approximately 31.2% for the six months ended June 30, 2024 [89]. - The Group's net profit was approximately RMB21.1 million, a decrease of approximately RMB54.0 million or approximately 71.9% compared to RMB75.1 million for the same period in 2024 [102]. Cost Management and Efficiency - The Group has implemented continuous optimization of business processes and structural measures for cost reduction purposes [13]. - The Group emphasizes cost control measures and has improved operational efficiency through process optimization and technological empowerment, ensuring healthy and stable cash flow [20]. - The Group's focus on sustainable development includes deepening customer relationships and optimizing living experiences as core goals [15]. - The Group has prioritized the application of smart technologies to build a diversified service ecosystem, improving operational efficiency and service convenience [25]. - The implementation of a tiered and customized service response system aims to meet the specific needs of different customer segments, enhancing operational efficiency [56]. Community Engagement and Cultural Development - The Group has focused on enhancing community living by organizing diverse cultural events and convenience services, significantly enriching residents' recreational lives [29]. - The Group has established a comprehensive service system for community-centric cultural development, optimizing value-added service portfolios based on resident needs [24]. - The focus on immersive community cultural activities aims to promote mainstream values and build community cohesion [48]. - The Group will enhance community engagement through three core community cultural intellectual properties, including Elderly Care IP and Growth Education IP [48]. Asset Management and Financial Position - The Group's total assets as of June 30, 2025, were approximately RMB2,285.3 million, down from approximately RMB2,358.7 million as of December 31, 2024 [103]. - The current ratio of the Group improved to 1.73 as of June 30, 2025, compared to 1.68 as of December 31, 2024 [103]. - Trade and other receivables increased by approximately RMB29.6 million or approximately 4.6% to RMB675.8 million as of June 30, 2025, compared to RMB646.2 million as of December 31, 2024 [120]. - The Group's trade and other payables decreased by approximately RMB72.4 million or approximately 9.1% to RMB723.1 million as of June 30, 2025, compared to RMB795.5 million as of December 31, 2024 [122]. - The gearing ratio as of June 30, 2025, was 0.45, down from 0.47 as of December 31, 2024 [132]. Human Resources and Corporate Governance - As of June 30, 2025, the Group had approximately RMB 62.0 million in outstanding bank borrowings, with a fixed annual interest rate of 5.5% [128]. - The Group's staff cost for the first half of 2025 was approximately RMB 111.1 million, compared to approximately RMB 116.4 million in the first half of 2024, reflecting a decrease of about 4.3% [151][154]. - The board consists of two executive directors, three non-executive directors, and three independent non-executive directors, ensuring a balanced power structure [170]. - The company has complied with all provisions of the Corporate Governance Code except for code provision C.2.1, where the Chairman also serves as the President [170]. Share Option Scheme - The maximum number of Shares that may be issued under the Share Option Scheme is 72,625,000, representing 10% of the issued share capital of the Company as of the report date [181]. - The Share Option Scheme was adopted on May 28, 2019, and will remain in force for 10 years unless cancelled or amended [180]. - The exercise period of the Options granted is determinable by the Board, with a maximum duration of 10 years from the grant date [188]. - The subscription price of the Options is determined by the Board and is based on the highest of the closing price on the offer date, the average closing price for the five trading days prior, or the nominal value of a Share [189].

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 致：香港交易及結算所有限公司 公司名稱: 星悅康旅股份有限公司 呈交日期: 2025年9月1日 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) | 03662 | 說明 | | | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | | 法定/註冊股本 | | | 上月底結存 | | | 10,000,000,000 | HKD | | 0.01 | HKD | | 100,000,000 | | 增加 / 減少 (-) | | | | | | | HKD | | | | 本月底結存 | | | 10,000,000,000 | HKD | | 0.01 | HKD | | 100,000,000 | 本月底法定/註冊股本總額： HKD 100,000,000 F ...

Group 1 - The company reported a revenue of RMB 611 million for the six months ending June 30, 2025, representing a year-on-year decrease of 12.74% [1] - The profit attributable to shareholders was RMB 24.997 million, a significant decline of 69.38% compared to the previous year, with earnings per share at 3.44 cents [1] - The company is focusing on high-quality development by enhancing synergy among its business segments and optimizing resource utilization to maximize overall efficiency [1] Group 2 - The company provided property management services for 213 properties across 62 cities in 22 provinces and municipalities in China, covering a managed area of approximately 33.9 million square meters [2] - The company aims to deepen customer relationships and optimize living experiences, focusing on lean operations, innovative expansion, and value empowerment [2] - The commercial operation service network has expanded to cover 15 shopping malls and office projects in 10 cities, with a total managed area of about 549,000 square meters [2]

Core Viewpoint - The company reported a decline in revenue and profit for the first half of 2025, emphasizing a commitment to high-quality development and operational efficiency through resource integration and innovative revenue channels [1][2] Financial Performance - Revenue for the six months ended June 30, 2025, was RMB 611 million, a decrease of 12.74% year-on-year [1] - Profit attributable to owners was RMB 24.997 million, down 69.38% year-on-year, with earnings per share at 3.44 cents [1] Operational Strategy - The company is focused on enhancing operational efficiency and value creation through a dual approach of internal optimization and external market exploration [1] - The strategy includes fine-tuning operations and reducing costs while actively seeking innovative revenue channels to expand business growth [1] Service Coverage - As of June 30, 2025, the company provided property management services to 213 properties across 62 cities in 22 provinces, with a managed area of approximately 33.9 million square meters [1] - The commercial operation service network covers 15 shopping malls and office projects in 10 cities, with a total managed area of about 549,000 square meters [2] Sustainability and Customer Focus - The company adheres to sustainable development principles, aiming to deepen customer relationships and enhance living experiences [2] - The strategic focus is on lean operations, innovative expansion, and value empowerment to strengthen market competitiveness [2]

Core Insights - The company reported a revenue of approximately RMB 610.9 million for the six months ending June 30, 2025, representing a year-on-year decline of about 12.7% [1] - Gross profit was approximately RMB 168.3 million, a decrease of about RMB 50.4 million compared to the previous year, with a gross margin of approximately 27.5%, down by about 3.7 percentage points year-on-year [1] - The net profit was approximately RMB 21.1 million, while the core net profit was around RMB 49.0 million, reflecting a year-on-year decrease of about RMB 34.3 million or approximately 41.2% [1]

[Summary](index=1&type=section&id=%E6%91%98%E8%A6%81) For the six months ended June 30, 2025, Starry Joy Health & Travel Co., Ltd. experienced year-on-year declines in revenue, gross profit, and net profit, with revenue decreasing by **12.7%** to **RMB 610.9 million**, gross margin falling by **3.7 percentage points** to **27.5%**, and core net profit decreasing by **41.2%** to **RMB 49.0 million** Key Financial Highlights | Metric | 2025 H1 (RMB million) | 2024 H1 (RMB million) | YoY Change (RMB million) | YoY Change (%) | | :--- | :--- | :--- | :--- | :--- | | Revenue | 610.9 | 700.0 | (89.1) | (12.7%) | | Gross Profit | 168.3 | 218.7 | (50.4) | (23.0%) | | Gross Margin | 27.5% | 31.2% | -3.7 percentage points | - | | Net Profit | 21.1 | 75.1 | (54.0) | (71.9%) | | Core Net Profit | 49.0 | 83.3 | (34.3) | (41.2%) | [Condensed Consolidated Financial Statements](index=2&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8) This section presents the condensed consolidated statement of profit or loss and other comprehensive income for the six months ended June 30, 2025, and the condensed consolidated statement of financial position as of June 30, 2025, comparing with prior period and year-end data to reflect the company's operating results and financial health during the reporting period [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=2&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E6%90%8D%E7%9B%8A%E5%8F%8A%E5%85%B6%E4%BB%96%E5%85%A8%E9%9D%A2%E6%94%B6%E7%9B%8A%E8%A1%A8) For the six months ended June 30, 2025, the company's revenue was RMB 610,880 thousand, gross profit was RMB 168,261 thousand, and profit for the period was RMB 21,083 thousand, all showing significant declines compared to the same period last year | Metric | June 30, 2025 (RMB thousand) | June 30, 2024 (RMB thousand) | | :--- | :--- | :--- | | Revenue | 610,880 | 700,045 | | Cost of Services | (442,619) | (481,332) | | Gross Profit | 168,261 | 218,713 | | Other Income, Gains and Losses | 943 | 10,121 | | Impairment Loss under Expected Credit Loss Model | (73,761) | (81,758) | | Goodwill Impairment Loss | (13,976) | – | | Administrative Expenses | (39,219) | (42,519) | | Selling and Distribution Expenses | (2,906) | (1,662) | | Finance Costs | (2,332) | (2,789) | | Profit Before Tax | 35,007 | 100,106 | | Income Tax Expense | (13,924) | (25,007) | | Profit for the Period | 21,083 | 75,099 | | Profit Attributable to Owners of the Company | 24,997 | 81,648 | | Basic and Diluted EPS (RMB cents) | 3.44 | 11.24 | [Condensed Consolidated Statement of Financial Position](index=4&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E7%8B%80%E6%B3%81%E8%A1%A8) As of June 30, 2025, the company's total assets were RMB 2,285,300 thousand, total liabilities were RMB 1,038,341 thousand, and net assets were RMB 1,246,996 thousand, showing a slight decrease in total assets, a reduction in total liabilities, and a slight increase in net assets compared to December 31, 2024 | Metric | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | **Non-current Assets** | | | | Property, Plant and Equipment | 60,147 | 29,275 | | Right-of-Use Assets | 8,816 | 10,771 | | Investment Properties | 51,893 | – | | Intangible Assets | 49,111 | 53,767 | | Goodwill | 87,587 | 101,563 | | Deferred Tax Assets | 61,296 | 58,115 | | **Current Assets** | | | | Trade and Other Receivables | 675,810 | 646,200 | | Bank Balances and Cash | 936,366 | 1,030,167 | | **Current Liabilities** | | | | Trade and Other Payables | 723,076 | 795,462 | | Borrowings | 62,000 | 70,000 | | **Non-current Liabilities** | | | | Deferred Tax Liabilities | 12,278 | 13,442 | | Lease Liabilities | 25,881 | 7,745 | | **Total Equity** | | | | Equity Attributable to Owners of the Company | 1,210,059 | 1,202,889 | | Non-controlling Interests | 36,937 | 41,786 | | Total Equity | 1,246,996 | 1,244,675 | [Notes to the Condensed Consolidated Financial Statements](index=6&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8%E9%99%84%E8%A8%BB) This section details the basis of preparation and significant accounting policies for the condensed consolidated financial statements, classifying and analyzing key financial items such as revenue, other income, income tax expense, profit for the period, dividends, earnings per share, trade and other receivables, and trade and other payables [1. Basis of Preparation and Business Combinations](index=6&type=section&id=1.%20Basis%20of%20Preparation%20and%20Business%20Combinations) The condensed consolidated financial statements are prepared in accordance with International Accounting Standard 34 "Interim Financial Reporting" and Appendix 16 of the Hong Kong Stock Exchange Listing Rules, and should be read in conjunction with the 2024 annual financial report - Financial statements are prepared in accordance with International Accounting Standard **34** and Appendix **16** of the Hong Kong Stock Exchange Listing Rules, and are recommended to be read in conjunction with the **2024** annual financial report[11](index=11&type=chunk) [2. Significant Accounting Policies](index=6&type=section&id=2.%20Significant%20Accounting%20Policies) The condensed consolidated financial statements are prepared on a historical cost basis, with certain financial instruments measured at fair value, and the application of new and revised IFRS accounting standards in the current period had no significant impact on financial position or performance, with no early adoption of standards not yet effective - Financial statements are prepared on a historical cost basis, with certain financial instruments measured at fair value, and the application of new accounting standards in the current period had **no significant impact** on financial position[12](index=12&type=chunk) - The company has **not early adopted** new and revised International Financial Reporting Standards that have been issued but are not yet effective[13](index=13&type=chunk) [3. Revenue](index=7&type=section&id=3.%20Revenue) For the six months ended June 30, 2025, total revenue was RMB 610,880 thousand, a decrease from RMB 700,045 thousand in the prior period, with property management services remaining the primary revenue source, though both its revenue and commercial operation services revenue declined Revenue by Category | Revenue Category | June 30, 2025 (RMB thousand) | June 30, 2024 (RMB thousand) | | :--- | :--- | :--- | | Property Management Services | 537,435 | 619,456 | | Commercial Operation Services | 65,985 | 80,589 | | Property Leasing and Related Services | 7,460 | – | | **Total** | **610,880** | **700,045** | Revenue from Customer Contracts (June 30, 2025) | Customer Type | Property Management Services (RMB thousand) | Commercial Operation Services (RMB thousand) | | :--- | :--- | :--- | | External Customers | 537,435 | 65,985 | | Group Companies of Former Major Shareholder | – | – | | Other Related Parties | – | – | | **Total** | **537,435** | **65,985** | Revenue Recognition Timing (June 30, 2025) | Recognition Method | Amount (RMB thousand) | | :--- | :--- | | Over time | 586,861 | | At a point in time | 16,559 | | **Total** | **603,420** | Segment Revenue and Results (June 30, 2025) | Segment | Revenue (RMB thousand) | Results (RMB thousand) | | :--- | :--- | :--- | | Property Management Services | 537,435 | 42,312 | | Commercial Operation Services | 65,985 | 23,251 | | Property Leasing and Related Services | 7,460 | 1,235 | | **Total** | **610,880** | **66,798** | Segment Revenue and Results (June 30, 2024) | Segment | Revenue (RMB thousand) | Results (RMB thousand) | | :--- | :--- | :--- | | Property Management Services | 619,456 | 86,773 | | Commercial Operation Services | 80,589 | 31,990 | | Property Leasing and Related Services | – | – | | **Total** | **700,045** | **118,763** | [5. Other Income, Gains and Losses](index=9&type=section&id=5.%20Other%20Income%2C%20Gains%20and%20Losses) For the six months ended June 30, 2025, net other income, gains, and losses were RMB 943 thousand, a significant decrease from RMB 10,121 thousand in the prior period, primarily due to net exchange losses and fair value changes of equity instruments at fair value through profit or loss | Item | June 30, 2025 (RMB thousand) | June 30, 2024 (RMB thousand) | | :--- | :--- | :--- | | Bank Interest Income | 7,857 | 11,668 | | Net Exchange (Losses) / Gains | (6,784) | 1,878 | | Government Grants | 4,236 | 6,593 | | Fair Value Change of Investment Properties | – | (1,920) | | Gains / (Losses) on Disposal of Property, Plant and Equipment | 96 | (1,873) | | Dividend Income from Equity Investments | – | 871 | | Fair Value Change of Equity Instruments at Fair Value Through Profit or Loss | (5,233) | (7,096) | | Others | 771 | – | | **Total** | **943** | **10,121** | [6. Income Tax Expense](index=9&type=section&id=6.%20Income%20Tax%20Expense) For the six months ended June 30, 2025, income tax expense was RMB 13,924 thousand, a decrease from RMB 25,007 thousand in the prior period, with some Chinese subsidiaries benefiting from preferential income tax policies due to their qualification as small low-profit enterprises or national high-tech enterprises | Item | June 30, 2025 (RMB thousand) | June 30, 2024 (RMB thousand) | | :--- | :--- | :--- | | Current Tax: China Corporate Income Tax | 18,269 | 30,931 | | Deferred Tax | (4,345) | (5,924) | | **Total** | **13,924** | **25,007** | - Some Chinese subsidiaries enjoy preferential income tax policies for **small low-profit enterprises**[20](index=20&type=chunk) - Aoyuan Smart Life Service (Guangzhou) Group Co., Ltd. and Leshenghuo Smart Community Service Group Co., Ltd. obtained "National High-tech Enterprise" certificates, enjoying a preferential income tax rate of **15%**[21](index=21&type=chunk) [7. Profit for the Period](index=10&type=section&id=7.%20Profit%20for%20the%20Period) Profit for the period is derived after deducting various expenses, including depreciation, amortization, and staff costs, with staff costs for the six months ended June 30, 2025, amounting to RMB 111,069 thousand, a decrease from the prior period | Item | June 30, 2025 (RMB thousand) | June 30, 2024 (RMB thousand) | | :--- | :--- | :--- | | Amortization of Deferred Contract Costs | – | 268 | | Depreciation of Property, Plant and Equipment | 4,449 | 3,804 | | Depreciation of Right-of-Use Assets | 2,099 | 1,130 | | Depreciation of Investment Properties | 6,475 | – | | Amortization of Intangible Assets | 4,656 | 4,705 | | Staff Costs | 111,069 | 116,447 | [8. Dividends](index=10&type=section&id=8.%20Dividends) The company's directors do not recommend declaring any interim dividend for the six months ended June 30, 2025, while the final dividend for 2024 was paid on June 20, 2025 - The directors do **not recommend** declaring any interim dividend for the six months ended June 30, 2025[25](index=25&type=chunk) - The final dividend of **RMB 0.0265** per ordinary share (totaling **RMB 19,246,000**) for the year ended December 31, 2024, was paid on **June 20, 2025**[25](index=25&type=chunk) [9. Earnings Per Share](index=10&type=section&id=9.%20Earnings%20Per%20Share) For the six months ended June 30, 2025, basic and diluted earnings per share were RMB 3.44 cents, a significant decrease from RMB 11.24 cents in the prior period, with the weighted average number of ordinary shares used for calculation remaining unchanged | Metric | June 30, 2025 (RMB thousand) | June 30, 2024 (RMB thousand) | | :--- | :--- | :--- | | Profit for calculating basic and diluted EPS | 24,997 | 81,648 | | Weighted average number of ordinary shares | 726,250,000 | 726,250,000 | | Basic and Diluted EPS (RMB cents) | 3.44 | 11.24 | - No exercise of share options was assumed in calculating diluted earnings per share, as the exercise price was **higher than the average market price** of the company's shares[27](index=27&type=chunk) [10. Trade and Other Receivables](index=11&type=section&id=10.%20Trade%20and%20Other%20Receivables) As of June 30, 2025, total trade and other receivables amounted to RMB 675,810 thousand, an increase of 4.6% from December 31, 2024, with the aging analysis of trade receivables showing an increase in amounts over 3 years Trade and Other Receivables Summary | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Total Trade Receivables | 510,378 | 483,350 | | Total Other Receivables | 165,432 | 162,850 | | **Total Trade and Other Receivables** | **675,810** | **646,200** | Aging Analysis of Trade Receivables (based on invoice date) | Aging | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | 0 to 60 days | 78,935 | 86,439 | | 61 to 180 days | 124,324 | 112,951 | | 181 to 365 days | 121,653 | 131,439 | | 1 to 2 years | 222,580 | 229,823 | | 2 to 3 years | 179,790 | 140,140 | | Over 3 years | 251,650 | 176,752 | | **Total** | **978,932** | **877,544** | - Property management and commercial operation services revenue are typically settled within **60 days** from the invoice date[30](index=30&type=chunk) - Credit terms for property leasing services range from **30 to 90 days**[31](index=31&type=chunk) [11. Trade and Other Payables](index=12&type=section&id=11.%20Trade%20and%20Other%20Payables) As of June 30, 2025, total trade and other payables were RMB 723,076 thousand, a decrease of 9.1% from December 31, 2024, with other amounts payable to the former major shareholder's group companies significantly reduced Trade and Other Payables Summary | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Trade Payables | 291,676 | 293,507 | | Total Other Payables | 431,400 | 501,955 | | **Total Trade and Other Payables** | **723,076** | **795,462** | Aging Analysis of Trade Payables (based on invoice date) | Aging | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | 0 to 60 days | 59,991 | 64,022 | | 61 to 180 days | 74,985 | 72,475 | | 181 to 365 days | 41,529 | 37,790 | | 1 to 2 years | 40,292 | 57,825 | | 2 to 3 years | 27,341 | 20,200 | | Over 3 years | 47,538 | 41,195 | | **Total** | **291,676** | **293,507** | - Other amounts payable to the former major shareholder's group companies decreased from **RMB 113,144 thousand** to **RMB 63,841 thousand**, primarily representing rent collected by the former major shareholder's group companies[34](index=34&type=chunk)[37](index=37&type=chunk) [Management Discussion and Analysis](index=14&type=section&id=%E7%AE%A1%E7%90%86%E5%B1%A4%E8%A8%8E%E8%AB%96%E5%8F%8A%E5%88%86%E6%9E%90) This section reviews the company's business performance in property management and commercial operations, outlines future development strategies, and provides a detailed analysis of the financial position during the reporting period, including revenue, costs, gross profit, various expenses, and changes in assets and liabilities [I. Business Review](index=14&type=section&id=I.%20Business%20Review) As a property management and commercial operation service provider, the company actively adjusted its development strategy in the first half of the year, focusing on refined operations, cost optimization, and innovative revenue channel expansion, while exploring new businesses like cultural tourism and elder care, and enhancing customer relationships and service quality - The company implemented a diversified service strategy to meet customer needs and actively adjusted its development strategy to seek **sustainable operating solutions**[41](index=41&type=chunk) - While solidifying its core property management and commercial operation businesses, the company actively expanded into new ventures such as **cultural tourism and elder care**, seizing opportunities for development potential[41](index=41&type=chunk) [Property Management](index=14&type=section&id=%E7%89%A9%E6%A5%AD%E7%AE%A1%E7%90%86) In the first half, property management focused on "efficiency improvement and value creation" through refined operations, cost control, and innovative business pilots, enhancing internal resource utilization and expanding growth boundaries, with services covering 213 properties across 22 provinces and 62 cities in China, managing approximately 33.9 million square meters - The company fully implemented the "efficiency improvement and value creation" operating strategy, enhancing operational efficiency and profitability through **optimizing business processes, structural cost reduction, and market insights**[42](index=42&type=chunk) - As of June 30, 2025, property management services covered **213 properties** across **22 provinces** and **62 cities** in China, with a managed GFA of approximately **33.9 million square meters**[43](index=43&type=chunk) - Through the application of smart technologies, such as parking lot upgrades and equipment energy-saving renovations, the company enhanced operational efficiency and service convenience, reducing public facility operating costs[50](index=50&type=chunk) [Commercial Operations](index=17&type=section&id=%E5%95%86%E6%A5%AD%E9%81%8B%E7%91%9F) As of June 30, 2025, the commercial operations service network covered 15 shopping malls and office building projects in 10 cities nationwide, managing a total GFA of approximately 549,000 square meters, with the company deepening its "delivering warm life" service philosophy, providing integrated full-lifecycle services, and enhancing project vitality and operational effectiveness through industry collaboration and business format innovation - As of June 30, 2025, the commercial operations service network covered **15 shopping malls and office building projects** in **10 cities** nationwide, with a total managed GFA of approximately **549,000 square meters**[53](index=53&type=chunk) - The company established an integrated service system covering "early-stage planning, commercial design, technical consulting, tenant attraction, opening preparation, and asset operation" to meet the full lifecycle development needs of commercial real estate[53](index=53&type=chunk) - By leveraging internal and external group resources and deepening the membership system and offline traffic, the company strengthened the synergistic effect between commercial operations and property management, enhancing customer stickiness and conversion efficiency[54](index=54&type=chunk) [II. Future Outlook](index=18&type=section&id=II.%20Future%20Outlook) The company will deepen its "solidifying foundation, steady and far-reaching" development approach, enhancing decision-making efficiency through flattened organizational structure and agile management processes, while adhering to a prudent financial management strategy, actively deploying in new sectors like cultural tourism and the silver economy, and driving sustainable growth through technological and model innovation - The company will deepen its "solidifying foundation, steady and far-reaching" development approach, enhancing decision-making penetration and execution responsiveness through **flattened organizational structure and agile management processes**[59](index=59&type=chunk) - Adhering to a prudent and cautious financial management strategy, the company will optimize its profit structure through **refined cost control and diversified revenue channel expansion**[60](index=60&type=chunk) - Actively deploying in promising new sectors such as **cultural tourism and the silver economy**, the company aims to solidify new drivers for overall profit growth[60](index=60&type=chunk) [Property Management](index=19&type=section&id=%E7%89%A9%E6%A5%AD%E7%AE%A1%E7%90%86) Property management will explore applying AI and big data to build a "smart property management laboratory" and an integrated smart service system, while systematically developing three core community cultural IPs: "elderly care," "growth education," and "community spirit," and promoting a "new brand, new service, new quality" plan to enhance service quality and community belonging - Actively exploring the application of cutting-edge technologies such as **artificial intelligence (AI) and big data**, the company focuses on cultivating new productive forces to drive service level enhancement and high-quality development[62](index=62&type=chunk) - Plans include advancing the construction of a "smart property management laboratory" to build an integrated smart service system, leveraging technology to deepen real-time monitoring capabilities for service quality[62](index=62&type=chunk) - Systematically developing three core community cultural intellectual properties: deepening the "elderly care IP," creating the "growth education IP," and innovating the "community spirit IP"[63](index=63&type=chunk) [Commercial Operations](index=21&type=section&id=%E5%95%86%E6%A5%AD%E9%81%8B%E7%91%9F) Commercial operations will focus on cash flow and profit targets, deepening investment in tenant attraction and value extraction, carefully selecting quality brands, and driving consumption scene upgrades with creative marketing activities, while actively exploring "commercial+" integration models, promoting multi-format collaborative innovation, revitalizing existing resources, and building a sustainable development system - Focusing on **cash flow and profit targets**, the company will deepen investment in tenant attraction and value extraction, carefully selecting quality brands to build a diversified commercial ecosystem[71](index=71&type=chunk) - Leveraging creative marketing activities, the company will drive continuous iteration and upgrade of consumption scenarios, comprehensively optimizing circulation layouts, visual ambiance, and service experiences[71](index=71&type=chunk) - Actively exploring the "commercial+" integration model, the company will promote multi-format collaborative innovation in suitable regions, leveraging complementary advantages to revitalize existing resources[71](index=71&type=chunk) [Cultural Tourism and Elder Care](index=21&type=section&id=%E6%96%87%E6%97%85%E5%BA%B7%E9%A4%8A) While strengthening core businesses, the company will strategically deploy in cultural tourism and elder care, leveraging advantageous resources and market demand, focusing on a multi-element integration path of "cultural tourism + elder care + sports," and actively integrating innovative drivers (such as low-altitude economy application scenarios) to create attractive comprehensive service destinations - While solidifying core businesses, the company will strategically deploy in **cultural tourism and elder care**, leveraging advantageous resources and market demand, focusing on a multi-element integration path of "cultural tourism + elder care + sports"[72](index=72&type=chunk) - Actively integrating innovative drivers (such as **low-altitude economy application scenarios**) and distinctive engines, the company aims to create attractive comprehensive service destinations[72](index=72&type=chunk) - Highlighting strategic opportunities from new productive forces, the company focuses on cutting-edge areas such as **smart property management, new commercial ecosystems, and elder care tourism**, accelerating its presence in emerging market segments through technological and model innovation[72](index=72&type=chunk) [III. Financial Review](index=22&type=section&id=III.%20Financial%20Review) This section provides a detailed review of the company's operating results and financial position for the six months ended June 30, 2025, with total revenue decreasing by 12.7%, gross profit by 23.0%, and net profit by 71.9%, primarily due to strategic adjustments, proactive exit from low-profit and high-risk projects, and increased resource allocation to managed projects - For the six months ended June 30, 2025, the Group's total revenue was approximately **RMB 610.9 million**, a year-on-year decrease of approximately **12.7%**[74](index=74&type=chunk) - Gross profit was approximately **RMB 168.3 million**, a year-on-year decrease of approximately **23.0%**, with a gross margin of approximately **27.5%**, a year-on-year decrease of approximately **3.7 percentage points**[86](index=86&type=chunk) - Net profit was approximately **RMB 21.1 million**, a year-on-year decrease of approximately **71.9%**[93](index=93&type=chunk) [Operating Results](index=22&type=section&id=%E7%B6%93%E7%87%9F%E6%A5%AD%E7%B8%BE) For the six months ended June 30, 2025, the company's total revenue was RMB 610.9 million, a year-on-year decrease of 12.7%, with both property management services and commercial operation services revenue declining Revenue by Service Category | Service Category | 2025 (RMB thousand) | 2025 (%) | 2024 (RMB thousand) | 2024 (%) | Increase/Decrease (RMB thousand) | Growth Rate (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Property Management Services | 537,435 | 88.0 | 619,456 | 88.5 | (82,021) | (13.2) | | Commercial Operation Services | 73,445 | 12.0 | 80,589 | 11.5 | (7,144) | (8.9) | | **Total** | **610,880** | **100.0** | **700,045** | **100.0** | **(89,165)** | **(12.7)** | [Property Management Services](index=22&type=section&id=%E7%89%A9%E6%A5%AD%E7%AE%A1%E7%90%86%E6%9C%8D%E5%8B%99) Property management services revenue decreased by 13.2% to RMB 537.4 million, primarily due to the company's strategic adjustments, proactively exiting low-profit and high-risk projects, leading to a reduction in managed area Property Management Services Revenue by Category | Service Category | 2025 (RMB thousand) | 2025 (%) | 2024 (RMB thousand) | 2024 (%) | Increase/Decrease (RMB thousand) | Growth Rate (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Basic Property Management Services | 452,128 | 84.1 | 521,118 | 84.1 | (68,990) | (13.2) | | Value-added Services to Property Owners | 2,055 | 0.4 | 2,648 | 0.4 | (593) | (22.4) | | Community Value-added Services | 83,252 | 15.5 | 95,690 | 15.5 | (12,438) | (13.0) | | **Total** | **537,435** | **100.0** | **619,456** | **100.0** | **(82,021)** | **(13.2)** | - The decrease in revenue was primarily due to the Group's strategic adjustments, proactively exiting **low-profit and high-risk projects**, leading to a reduction in managed area[76](index=76&type=chunk) Property Management Services Revenue by Geographical Location | Region | 2025 (RMB thousand) | 2025 (%) | 2024 (RMB thousand) | 2024 (%) | | :--- | :--- | :--- | :--- | :--- | | Southern China | 260,631 | 48.5 | 258,275 | 41.7 | | Southwestern China | 77,419 | 14.4 | 82,327 | 13.3 | | Eastern China | 48,971 | 9.1 | 72,508 | 11.7 | | Central and Northern China | 119,625 | 22.3 | 175,118 | 28.3 | | Northeastern China | 30,789 | 5.7 | 31,228 | 5.0 | | **Total** | **537,435** | **100.0** | **619,456** | **100.0** | [Commercial Operation Services](index=24&type=section&id=%E5%95%86%E6%A5%AD%E9%81%8B%E7%91%9F%E6%9C%8D%E5%8B%99) Commercial operation services revenue decreased by 8.9% to RMB 73.4 million, primarily due to a reduction in managed shopping mall/office building area and adjustments to service fee models, notably with property leasing and related services revenue contributing RMB 7.46 million from zero Commercial Operation Services Revenue by Category | Service Category | 2025 (RMB thousand) | 2025 (%) | 2024 (RMB thousand) | 2024 (%) | Increase/Decrease (RMB thousand) | Growth Rate (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Commercial Operation and Management Services | 65,985 | 89.8 | 80,589 | 100.0 | (14,604) | (18.1) | | Property Leasing and Related Services | 7,460 | 10.2 | – | – | 7,460 | 100.0 | | **Total** | **73,445** | **100.0** | **80,589** | **100.0** | **(7,144)** | **(8.9)** | - The decrease in revenue was mainly due to a reduction in the Group's managed shopping mall/office building area and adjustments to the service fee model for individual managed shopping malls[82](index=82&type=chunk) Commercial Operation Services Revenue by Geographical Region | Region | 2025 (RMB thousand) | 2025 (%) | 2024 (RMB thousand) | 2024 (%) | | :--- | :--- | :--- | :--- | :--- | | Southern China | 57,049 | 77.7 | 54,692 | 67.9 | | Southwestern China | 9,731 | 13.2 | 16,666 | 20.7 | | Eastern China | 4,320 | 5.9 | 6,889 | 8.5 | | Central China | 2,345 | 3.2 | 2,342 | 2.9 | | **Total** | **73,445** | **100.0** | **80,589** | **100.0** | [Cost of Services](index=25&type=section&id=%E6%9C%8D%E5%8B%99%E6%88%90%E6%9C%AC) Cost of services decreased by 8.0% year-on-year to RMB 442.6 million, primarily due to the company's strategic adjustments and proactive exit from low-profit and high-risk projects - Cost of services decreased by approximately **8.0%** to **RMB 442.6 million**, primarily due to the Group's strategic adjustments and proactive exit from low-profit and high-risk projects[85](index=85&type=chunk) [Gross Profit and Gross Margin](index=25&type=section&id=%E6%AF%9B%E5%88%A9%E5%8F%8A%E6%AF%9B%E5%88%A9%E7%8E%87) Gross profit decreased by 23.0% year-on-year to RMB 168.3 million, with gross margin falling by 3.7 percentage points to 27.5%, primarily due to strategic adjustments to exit inefficient projects and increased resource allocation to enhance owner satisfaction - Gross profit decreased by approximately **23.0%** to **RMB 168.3 million**, with gross margin decreasing by approximately **3.7 percentage points** to **27.5%**[86](index=86&type=chunk) - Property management services gross margin was **25.2%** (2024: **29.0%**), and commercial operation services gross margin was **44.7%** (2024: **48.4%**)[86](index=86&type=chunk) - The decrease in gross profit was mainly due to strategic adjustments to exit low-profit and high-risk projects, and increased resource allocation to enhance owner satisfaction[86](index=86&type=chunk) [Impairment Losses under Expected Credit Loss Model](index=25&type=section&id=%E9%A0%90%E6%9C%9F%E4%BF%A1%E7%94%A8%E6%90%8D%E5%A4%B1%E6%A8%A1%E5%9E%8B%E4%B8%8B%E7%9A%84%E6%B8%9B%E5%80%BC%E虧%E6%90%8D) Impairment losses under the expected credit loss model amounted to RMB 73.8 million, a decrease of RMB 8.0 million from the prior period - Impairment losses under the expected credit loss model amounted to approximately **RMB 73.8 million**, a decrease of approximately **RMB 8.0 million** from the prior period[87](index=87&type=chunk) [Selling and Distribution Expenses and Administrative Expenses](index=25&type=section&id=%E9%8A%B7%E5%94%AE%E5%8F%8A%E5%88%86%E9%8A%B7%E9%96%8B%E6%94%AF%E4%BB%A5%E5%8F%8A%E8%A1%8C%E6%94%BF%E9%96%8B%E6%94%AF) Total selling and distribution expenses were RMB 2.9 million, a year-on-year increase, while administrative expenses were RMB 39.2 million, a year-on-year decrease of 7.8% - Total selling and distribution expenses were approximately **RMB 2.9 million** (2024: approximately **RMB 1.7 million**)[88](index=88&type=chunk) - Administrative expenses were approximately **RMB 39.2 million**, a decrease of approximately **7.8%** from the prior period[90](index=90&type=chunk) [Other Income, Gains and Losses](index=26&type=section&id=%E5%85%B6%E4%BB%96%E6%94%B6%E5%85%A5%E3%80%81%E6%94%B6%E7%9B%8A%E5%8F%8A%E虧%E6%90%8D) Other income recorded a net income of approximately RMB 0.9 million, a decrease of RMB 9.2 million from the prior period, primarily due to a reduction in net exchange gains - Other income recorded a net income of approximately **RMB 0.9 million**, a decrease of approximately **RMB 9.2 million** from the prior period, primarily due to a reduction in net exchange gains of approximately **RMB 8.7 million**[91](index=91&type=chunk) [Income Tax](index=26&type=section&id=%E6%89%80%E5%BE%97%E7%A8%85) Income tax expense was RMB 13.9 million, a decrease of RMB 11.1 million from the prior period - Income tax expense was approximately **RMB 13.9 million**, a decrease of approximately **RMB 11.1 million** from the prior period[92](index=92&type=chunk) [Profit for the Reporting Period](index=26&type=section&id=%E5%A0%B1%E5%91%8A%E6%9C%9F%E9%96%93%E6%BA%A2%E5%88%A9) Net profit for the reporting period was RMB 21.1 million, a year-on-year decrease of 71.9%, with profit attributable to equity holders being RMB 25.0 million, a year-on-year decrease of 69.4% - Net profit for the reporting period was approximately **RMB 21.1 million**, a year-on-year decrease of approximately **71.9%**[93](index=93&type=chunk) - Profit attributable to equity holders was approximately **RMB 25.0 million**, a year-on-year decrease of approximately **69.4%**[93](index=93&type=chunk) [Financial Position](index=26&type=section&id=%E8%B2%A1%E5%8B%99%E7%8B%80%E6%B3%81) As of June 30, 2025, the company's financial position was sound, with total assets of RMB 2,285.3 million, total liabilities of RMB 1,038.3 million, a current ratio of 1.73, and net assets of RMB 1,247.0 million - As of June 30, 2025, total assets were approximately **RMB 2,285.3 million** (December 31, 2024: approximately **RMB 2,358.7 million**)[94](index=94&type=chunk) - Total liabilities were approximately **RMB 1,038.3 million** (December 31, 2024: approximately **RMB 1,114.1 million**)[94](index=94&type=chunk) - The current ratio was **1.73** (December 31, 2024: **1.68**), and net assets were approximately **RMB 1,247.0 million** (December 31, 2024: approximately **RMB 1,244.7 million**)[94](index=94&type=chunk) [Property, Plant and Equipment](index=26&type=section&id=%E7%89%A9%E6%A5%AD%E3%80%81%E5%BB%A0%E6%88%BF%E5%8F%8A%E8%A8%AD%E5%82%99) As of June 30, 2025, property, plant and equipment increased by approximately RMB 30.9 million, primarily due to the addition of office buildings - Property, plant and equipment increased by approximately **RMB 30.9 million**, primarily due to the addition of office buildings[95](index=95&type=chunk) [Right-of-Use Assets](index=27&type=section&id=%E4%BD%BF%E7%94%A8%E6%AC%8A%E8%B3%87%E7%94%A2) As of June 30, 2025, right-of-use assets amounted to approximately RMB 8.8 million - Right-of-use assets amounted to approximately **RMB 8.8 million**[97](index=97&type=chunk) [Investment Properties](index=27&type=section&id=%E6%8A%95%E8%B3%87%E7%89%A9%E6%A5%AD) As of June 30, 2025, the carrying amount of investment properties was approximately RMB 51.9 million, primarily comprising car parking spaces and leased shopping centers - The carrying amount of investment properties was approximately **RMB 51.9 million**, primarily comprising car parking spaces and leased shopping centers[98](index=98&type=chunk) [Intangible Assets](index=27&type=section&id=%E7%84%A1%E5%BD%A2%E8%B3%87%E7%94%A2) Intangible assets decreased to RMB 49.1 million, primarily due to a reduction in normal amortization - Intangible assets decreased to approximately **RMB 49.1 million**, primarily due to a reduction in normal amortization[99](index=99&type=chunk) [Goodwill](index=27&type=section&id=%E5%95%86%E8%AD%BD) Goodwill decreased to RMB 87.6 million, primarily due to an impairment loss of approximately RMB 14.0 million recognized for goodwill, as business expansion of some subsidiaries acquired in prior years did not meet expectations - Goodwill decreased to approximately **RMB 87.6 million**, primarily due to an impairment loss of approximately **RMB 14.0 million** recognized for goodwill, as business expansion of some subsidiaries acquired in prior years did not meet expectations[100](index=100&type=chunk) [Trade and Other Receivables](index=27&type=section&id=%E8%B2%A3%E6%98%93%E5%8F%8A%E5%85%B6%E4%BB%96%E6%87%89%E6%94%B6%E6%AC%BE%E9%A0%85) Trade and other receivables increased by approximately RMB 29.6 million or 4.6% to RMB 675.8 million - Trade and other receivables increased by approximately **RMB 29.6 million** or approximately **4.6%** to approximately **RMB 675.8 million**[101](index=101&type=chunk) [Amounts Due from Former Major Shareholder's Group Companies](index=27&type=section&id=%E6%87%89%E6%94%B6%E5%89%8D%E4%B8%BB%E8%A6%81%E8%82%A1%E6%9D%B1%E4%B9%8B%E9%9B%86%E5%9C%98%E5%85%AC%E5%8F%B8%E6%AC%BE%E9%A0%85) Amounts due from former major shareholder's group companies decreased by approximately RMB 47.4 million or 39.8% to RMB 71.8 million - Amounts due from former major shareholder's group companies decreased by approximately **RMB 47.4 million** or approximately **39.8%** to approximately **RMB 71.8 million**[102](index=102&type=chunk) [Trade and Other Payables](index=28&type=section&id=%E8%B2%A3%E6%98%93%E5%8F%8A%E5%85%B6%E4%BB%96%E6%87%89%E4%BB%98%E6%AC%BE%E9%A0%85) Trade and other payables decreased by approximately RMB 72.4 million or 9.1% to RMB 723.1 million - Trade and other payables decreased by approximately **RMB 72.4 million** or approximately **9.1%** to approximately **RMB 723.1 million**[104](index=104&type=chunk) [Borrowings](index=28&type=section&id=%E5%80%9F%E6%AC%BE) As of June 30, 2025, outstanding bank borrowings were approximately RMB 62.0 million, with no unutilized bank financing facilities for short-term funding, and borrowings bear interest at a fixed annual rate of 5.5%, partly guaranteed by certain subsidiaries and a former major shareholder's subsidiary - Outstanding bank borrowings were approximately **RMB 62.0 million**, with **no unutilized bank financing facilities** for short-term funding[105](index=105&type=chunk) - Bank borrowings bear interest at a **fixed annual rate of 5.5%**, with **RMB 60.0 million** guaranteed by certain Group subsidiaries and a former major shareholder's subsidiary, and secured by a pledge of equity in a company subsidiary[105](index=105&type=chunk) [Lease Liabilities](index=28&type=section&id=%E7%A7%9F%E8%B3%83%E8%B2%A0%E5%82%B5) As of June 30, 2025, lease liabilities due within one year were approximately RMB 15.7 million, and the balance of lease liabilities due after one year was approximately RMB 25.9 million - Lease liabilities due within one year were approximately **RMB 15.7 million** (December 31, 2024: approximately **RMB 3.9 million**)[106](index=106&type=chunk) - The balance of lease liabilities due after one year was approximately **RMB 25.9 million** (December 31, 2024: approximately **RMB 7.7 million**)[106](index=106&type=chunk) [Contingent Liabilities](index=28&type=section&id=%E6%88%96%E7%84%B6%E8%B2%A0%E5%82%B5) As of June 30, 2025, the company had no material contingent liabilities - As of June 30, 2025, the company had **no material contingent liabilities**[107](index=107&type=chunk) [Gearing Ratio](index=28&type=section&id=%E8%B3%87%E7%94%A2%E8%B2%A0%E5%82%B5%E6%AF%94%E7%8E%87) As of June 30, 2025, the gearing ratio was 0.45, a decrease from 0.47 as of December 31, 2024 - The gearing ratio was **0.45** (December 31, 2024: **0.47**)[108](index=108&type=chunk) [Foreign Exchange Risk](index=28&type=section&id=%E5%A4%96%E5%8C%AF%E9%A2%A8%E9%9A%AA) The company's functional currency is RMB, but some overseas subsidiaries use currencies other than RMB, exposing them to foreign exchange risk, and the company currently has no foreign exchange swap contracts or hedging policies - The company's functional currency is RMB, but certain overseas subsidiaries' functional currencies are other than RMB, exposing them to **foreign exchange risk**[109](index=109&type=chunk) - The company does not use any foreign exchange swap contracts to mitigate USD and HKD risks arising from bank balances, and currently has **no foreign exchange hedging policy**[109](index=109&type=chunk) [Pledge of Assets](index=28&type=section&id=%E8%B3%87%E7%94%A2%E6%8A%B5%E6%88%BC) As of June 30, 2025, the company had no assets pledged other than the equity of a subsidiary pledged to secure bank borrowings of RMB 60.0 million - As of June 30, 2025, no Group assets were pledged, except for the equity of a company subsidiary pledged to secure bank borrowings of approximately **RMB 60.0 million**[110](index=110&type=chunk) [Other Information](index=29&type=section&id=%E5%85%B6%E4%BB%96%E8%B3%87%E6%96%99) This section covers non-financial information for the reporting period, including significant acquisitions and disposals, employee and remuneration policies, treasury policy, interim dividends, dealings in listed securities, corporate governance, post-reporting period events, and the work of the audit committee [Significant Acquisitions and Disposals of Subsidiaries, Associates and Joint Ventures, Material Investments and Future Plans for Material Investments and Capital Assets](index=29&type=section&id=%E9%87%8D%E5%A4%A7%E6%94%B6%E8%B3%BC%E5%8F%8A%E5%87%BA%E5%94%AE%E9%99%84%E5%B1%AC%E5%85%AC%E5%8F%B8%E3%80%81%E8%81%AF%E7%87%9F%E5%85%AC%E5%8F%B8%E5%8F%8A%E5%90%88%E7%87%9F%E4%BC%81%E6%A5%AD%E3%80%81%E9%87%8D%E5%A4%A7%E6%8A%95%E8%B3%87%E4%BB%A5%E5%8F%8A%E9%87%8D%E5%A4%A7%E6%8A%95%E8%B3%87%E5%8F%8A%E8%B3%87%E6%9C%AC%E8%B3%87%E7%94%A2%E4%B9%8B%E6%9C%AA%E4%BE%86%E8%A8%88%E5%8A%83) For the six months ended June 30, 2025, the company had no significant acquisitions or disposals of subsidiaries, associates, or joint ventures, nor did the Board approve any material investments or plans for material investments - For the six months ended June 30, 2025, the Group had **no significant acquisitions or disposals** of subsidiaries, associates, or joint ventures[112](index=112&type=chunk) - The Board also did **not approve any material investments** or plans for material investments or increases in capital assets[112](index=112&type=chunk) [Employees and Remuneration Policy](index=29&type=section&id=%E5%83%B1%E5%93%A1%E5%8F%8A%E8%96%AA%E9%85%AC%E6%94%BF%E7%AD%96) As of June 30, 2025, the company had 1,627 employees, a decrease from the prior period, with staff costs for the first half of the year amounting to RMB 111.1 million, and the company regularly reviews remuneration and benefits based on market practice and individual performance, contributing to social insurance and housing provident funds for Chinese employees and operating a Mandatory Provident Fund scheme for Hong Kong employees - As of June 30, 2025, the Group had **1,627 employees** (June 30, 2024: **1,942 employees**)[113](index=113&type=chunk) - Staff costs for the first half of 2025 amounted to approximately **RMB 111.1 million** (first half of 2024: approximately **RMB 116.4 million**)[113](index=113&type=chunk) - The company regularly reviews employee remuneration and benefits based on market practice and individual performance, contributing to social insurance and housing provident funds for Chinese employees and operating a Mandatory Provident Fund scheme for Hong Kong employees[113](index=113&type=chunk) [Treasury Policy](index=29&type=section&id=%E5%BA%AB%E5%8B%99%E6%94%BF%E7%AD%96) The Board will continue to follow a prudent policy in managing the group's cash and cash equivalents and maintain a sound liquidity position to ensure the group is prepared to seize future growth opportunities - The directors will continue to follow a **prudent policy** in managing the Group's cash and cash equivalents and maintain a **sound liquidity position** to ensure the Group is prepared to seize future growth opportunities[114](index=114&type=chunk) [Interim Dividend](index=29&type=section&id=%E4%B8%AD%E6%9C%9F%E8%82%A1%E6%81%AF) The Board recommends not declaring any interim dividend for the six months ended June 30, 2025 - The directors recommend **not declaring any interim dividend** for the six months ended June 30, 2025[115](index=115&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=29&type=section&id=%E8%B3%BC%E8%B2%B7%E3%80%81%E5%87%BA%E5%94%AE%E6%88%96%E8%B4%96%E5%9B%9E%E6%9C%AC%E5%85%AC%E5%8F%B8%E4%B9%8B%E4%B8%8A%E5%B8%82%E8%AD%89%E5%88%B8) For the six months ended June 30, 2025, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's shares - For the six months ended June 30, 2025, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's shares[116](index=116&type=chunk) [Corporate Governance Code](index=30&type=section&id=%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB%E5%AE%88%E5%89%87) The company has complied with all code provisions of the Corporate Governance Code, except for the Chairman of the Board also serving as CEO, which deviates from Code Provision C.2.1, but the Board believes this practice facilitates business strategy execution and enhances operational efficiency, with the Board's structure ensuring a balance of power - The company has complied with all code provisions of the Corporate Governance Code, except for the Chairman of the Board also serving as CEO, which deviates from **Code Provision C.2.1**[118](index=118&type=chunk) - The Board believes that the same individual serving as both Chairman and CEO facilitates the execution of the Group's business strategies and enhances operational efficiency[118](index=118&type=chunk) [Standard Code for Securities Transactions by Directors](index=30&type=section&id=%E8%91%A3%E4%BA%8B%E9%80%B2%E8%A1%8C%E8%AD%89%E5%88%B8%E4%BA%A4%E6%98%93%E4%B9%8B%E6%A8%99%E6%BA%96%E5%AE%88%E5%89%87) The company has adopted the Standard Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix C3 of the Listing Rules as the code of conduct for directors' dealings in the company's securities, and all directors have confirmed compliance throughout the reporting period - The company has adopted the Standard Code for Securities Transactions by Directors of Listed Issuers as set out in **Appendix C3** of the Listing Rules as its code of conduct for directors' dealings in the company's securities[119](index=119&type=chunk) - All directors have confirmed their compliance with the Standard Code for the six months ended June 30, 2025[119](index=119&type=chunk) [Events After the Reporting Period](index=30&type=section&id=%E5%A0%B1%E5%91%8A%E6%9C%9F%E5%BE%8C%E4%BA%8B%E4%BB%B6) Save as disclosed in this announcement, there have been no material events from the end of the reporting period up to the date of this announcement - Save as disclosed in this announcement, there have been **no material events** from the end of the reporting period up to the date of this announcement[120](index=120&type=chunk) [Audit Committee](index=30&type=section&id=%E5%AF%A9%E6%A0%B8%E5%A7%94%E5%93%A1%E6%9C%83) The Audit Committee has reviewed the accounting principles and practices adopted by the company and discussed audit and financial reporting matters, including the review of the unaudited condensed consolidated interim financial statements for the six months ended June 30, 2025 - The Audit Committee has reviewed the accounting principles and practices adopted by the Group and discussed audit and financial reporting matters[121](index=121&type=chunk) - The Audit Committee has reviewed the Group's unaudited condensed consolidated interim financial statements for the six months ended June 30, 2025[121](index=121&type=chunk) [Publication of Interim Results and Interim Report](index=31&type=section&id=%E5%88%8A%E7%99%BC%E4%B8%AD%E6%9C%9F%E6%A5%AD%E7%B8%BE%E5%8F%8A%E4%B8%AD%E6%9C%9F%E5%A0%B1%E5%91%8A) This interim results announcement has been published on the HKEX website and the company's website, and the interim report containing all information required by the Listing Rules will be dispatched to shareholders in due course and available on the aforementioned websites - This interim results announcement is published on the HKEX website (www.hkexnews.hk) and the company's website (www.sjwt.net)[123](index=123&type=chunk) - The company's interim report for the six months ended June 30, 2025, containing all information required by the Listing Rules, will be dispatched to shareholders (upon request) and available on the aforementioned websites in due course[123](index=123&type=chunk)

Core Viewpoint - Xingyue Kanglv (03662) anticipates a significant decline in profit for the six months ending June 30, 2025, projecting a profit attributable to shareholders of at least RMB 23 million, compared to approximately RMB 81.6 million in the same period of 2024 [1] Group 1 - The board attributes the profit decline primarily to strategic adjustments made in response to the ongoing downturn in the real estate market and economy, leading to the decision to exit low-profit, high-risk projects and to make sufficient provisions for receivables, resulting in reduced operational scale and profit [1] - Several subsidiaries acquired in previous years have experienced a contraction in operational scale due to the aforementioned strategic adjustments, necessitating impairment losses on goodwill [1] - To enhance owner satisfaction and address intensified market competition, the company has increased resource allocation to managed projects and continues to optimize property service quality [1] Group 2 - The company expects that the impact of the strategic adjustments on its performance, including the reduction in profit, will stabilize over the next one to two years [1]

Core Viewpoint - Xingyue Kanglv (03662.HK) expects a significant decline in profit for the six months ending June 30, 2025, projecting a profit attributable to shareholders of no less than RMB 23 million, compared to approximately RMB 81.6 million for the same period in 2024 [1] Group 1 - The decline in profit is primarily attributed to the company's strategic adjustments in response to the ongoing downturn in the real estate market and the economy, leading to the exit from low-profit, high-risk projects [1] - The company has made sufficient provisions for receivables related to the projects affected by the strategic adjustments, resulting in a decrease in operational scale and profit [1] - Several subsidiaries acquired in previous years have experienced a contraction in operational scale due to the strategic adjustments, necessitating impairment losses on goodwill [1] Group 2 - To enhance owner satisfaction and address intensified market competition, the company has increased resource allocation to managed projects and continues to optimize property service quality [1] - The company anticipates that the impact of the strategic adjustments on performance will stabilize over the next one to two years [1]

Core Viewpoint - Xingyue Kanglv (03662) expects a significant decline in profit for the six months ending June 30, 2025, projecting a profit attributable to shareholders of no less than RMB 23 million, compared to approximately RMB 81.6 million for the same period in 2024 [1] Group 1 - The board attributes the profit decline primarily to strategic adjustments made in response to the ongoing downturn in the real estate market and economy, which included exiting low-profit, high-risk projects and making sufficient provisions for receivables [1] - Several subsidiaries acquired in previous years have experienced reduced operational scale due to the aforementioned strategic adjustments, necessitating impairment losses on goodwill [1] - To enhance owner satisfaction and address intensified market competition, the company has increased resource allocation to managed projects and is continuously optimizing property service quality [1] Group 2 - The company anticipates that the impact of the strategic adjustments on its performance will stabilize over the next one to two years [1]

星 悅 康旅股份有限公司 Starjoy Wellness and Travel Company Limited （於開曼群島註冊成立的有限責任公司） （股份代號：3662） 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 表 明 概 不 就 因 本 公 告 全 部 或 任 何 部 份 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。 盈利警告 本公告乃由星 悅 康 旅 股 份 有 限 公 司（「本公司」，連 同 其 附 屬 公 司 統 稱「本集團」） 根據香港聯合交易所有限公司證券上市規則第13.09(2)(a)條及香港法例第571章 證券及期貨條例第XIVA部 項 下 之 內 幕 消 息 條 文（定 義 見 上 市 規 則）而 作 出。 本 公 司 董 事（「董 事」）會（「董事會」）謹 此 通 知 本 公 司 股 東（「股 東」）及 潛 在 投 資 者， 根 據 對 本 集 團 截 至 二 零 二 五 年 六 月 三 十 日 止 六 個 月 之 ...