Financial Performance - Total revenue for the year ended December 31, 2024, was RMB 3,573,469, a decrease of 7.2% compared to RMB 3,848,973 in 2023[11]. - Gross profit for 2024 was RMB 882,658, down 25.3% from RMB 1,182,364 in 2023[11]. - The company reported a net loss of RMB 558,659 for 2024, a significant decline from a profit of RMB 62,318 in 2023, representing a 996.5% change[11]. - The company reported a basic and diluted loss per share of RMB 28.25 for 2024, compared to earnings of RMB 1.50 per share in 2023, marking a 1,983.3% change[11]. - The gross profit decreased by RMB 299.7 million or 25.3% to RMB 882.7 million in 2024, with a gross margin of 24.7%, down from 30.7% in 2023[63]. - The total sales cost for the year ended December 31, 2024, was approximately RMB 2,690.8 million, a slight increase of RMB 24.2 million or 0.9% from RMB 2,666.6 million in 2023[62]. - Administrative expenses decreased by RMB 35.8 million or 7.1% to RMB 471.6 million in 2024, reflecting improved management efficiency[66]. - The net loss for the year ended December 31, 2024, was approximately RMB 558.7 million, compared to a net profit of RMB 62.3 million in 2023[69]. Assets and Liabilities - Total assets as of December 31, 2024, were RMB 6,184,524, a decrease of 10.3% from RMB 6,894,358 in 2023[11]. - Total liabilities decreased by 4.5% to RMB 3,042,413 in 2024 from RMB 3,184,955 in 2023[11]. - As of December 31, 2024, the group's cash and cash equivalents amounted to approximately RMB 1,145.6 million, a decrease of about 20.6% from RMB 1,442.9 million as of December 31, 2023[71]. - The total borrowings of the group as of December 31, 2024, were approximately RMB 524.1 million, down from RMB 637.0 million as of December 31, 2023[72]. - Trade receivables increased to approximately RMB 2,783.6 million as of December 31, 2024, representing an increase of about RMB 342.4 million or 14.0% from RMB 2,441.2 million as of December 31, 2023[73]. - Trade payables rose to approximately RMB 609.0 million as of December 31, 2024, an increase of about RMB 74.2 million or 13.9% from RMB 534.8 million as of December 31, 2023[74]. Business Strategy and Operations - The company aims to leverage industry opportunities through active developer collaborations and third-party market expansion strategies[9]. - The company plans to enhance operational efficiency and service quality through technology-driven initiatives[9]. - The company is focused on achieving high-quality development across various business sectors to strengthen its market position[9]. - The company is shifting its development strategy from prioritizing scale to prioritizing efficiency, actively cutting low-revenue and high-management difficulty projects[20]. - The company aims to improve customer service experience and operational quality through organizational restructuring and management standardization[22]. - The company is focusing on enhancing operational efficiency and quality service to adapt to the challenges of rising costs and market competition[20]. - The company is actively pursuing the collection of outstanding receivables related to the acquisition of Youhuo Zhiliang, with ongoing legal actions initiated since the second half of 2023[140]. Revenue Segmentation - For the fiscal year ending December 31, 2024, the company achieved revenue of approximately RMB 3,573.5 million, with third-party revenue increasing from 82.9% in 2023 to 88.6% in 2024[22]. - The residential property segment achieved revenue of approximately RMB 1,769.2 million, representing a year-on-year growth of about 1.4%[37]. - The residential property management service revenue increased by 9.2% year-on-year, driven by the steady expansion of managed project scale and continuous improvement in service quality[37]. - The non-residential property segment recorded revenue of approximately RMB 1,804.3 million, a year-on-year decline of 14.3% due to strategic contraction in urban services[38]. - The revenue contribution from the Greater Bay Area in the residential segment was approximately RMB 699.2 million, accounting for 39.5% of the total residential revenue in 2024[46]. - The revenue from community value-added services in the residential segment decreased due to pressure in the real estate market, leading to a reduction in the number of sales offices managed[45]. - The company focused on strategic areas, with revenue from the Greater Bay Area and Yangtze River Delta accounting for about 59% of the residential property management services revenue[45]. Corporate Governance - The board of directors is responsible for improving the company's financial performance and making decisions in the best interest of the company[81]. - The board composition includes a mix of executive and independent non-executive directors, ensuring a balance of power and independent judgment[86]. - The company has adopted a board diversity policy, ensuring a range of backgrounds and expertise among board members[86]. - The board has established mechanisms to ensure independent viewpoints, with at least three independent non-executive directors making up at least one-third of the board[88]. - The board held a total of 4 regular meetings and 1 annual general meeting during the year ending December 31, 2024[90]. - The CEO position was separated from the chairman role, with Wang Zhongqi appointed as CEO effective August 29, 2024, following Wang Jianhui's resignation[92]. - All directors participated in training sessions to enhance their knowledge and skills, ensuring compliance with corporate governance codes[95]. Risk Management - The risk management system is integrated into core business operations, with operational units responsible for identifying and managing their own risks[112]. - The company has implemented a three-line defense model for risk management, involving operational units, functional departments, and a dedicated risk control team[112]. - The risk control team conducts regular risk assessments and develops internal audit plans based on the results[112]. - The board has evaluated the effectiveness of the risk management and internal control systems, deeming them effective and sufficient for the fiscal year ending December 31, 2024[112]. Shareholder Relations - The company is committed to maintaining ongoing dialogue with shareholders and stakeholders through regular updates and investor relations activities[123]. - The company will hold a special general meeting within two months if a valid request is made by shareholders holding at least 10% of the voting rights[114]. - The board will consider multiple factors when declaring dividends, including financial performance, shareholder interests, and capital requirements[120]. - The company has established a shareholder communication policy to ensure equal and timely access to information for shareholders through its website and other platforms[123]. Social Responsibility and Sustainability - The company is committed to fulfilling its corporate social responsibility while ensuring high-quality living for property owners[22]. - The company is committed to integrating ESG strategies into every aspect of its operations, focusing on sustainable development and social responsibility[30]. - The group made charitable donations of approximately RMB 378,000 during the year[188].

Financial Performance - For the year ended December 31, 2024, revenue was approximately RMB 3,573.5 million, a decrease of about 7.2% year-on-year[2]. - Gross profit for the same period was approximately RMB 882.7 million, down approximately 25.3% compared to the previous year[2]. - The company reported a loss of approximately RMB 558.7 million, reversing from a profit in the previous year[2]. - The adjusted profit before tax for the same period was RMB 541,997,000, with a reported net loss of RMB 558,659,000 after accounting for interest income and unallocated expenses[19]. - For the fiscal year ending December 31, 2023, total revenue was RMB 3,848,973,000, with an adjusted profit before tax of RMB 815,197,000 and a net profit of RMB 62,318,000[20]. - The company reported a pre-tax loss of RMB 548,929,000 for the fiscal year ending December 31, 2024[19]. - The company recorded a net loss of approximately RMB 558.7 million for the year ended December 31, 2024, compared to a net profit of approximately RMB 62.3 million for the year ended December 31, 2023[84]. Assets and Liabilities - The total assets less current liabilities amounted to RMB 3,636.0 million, down from RMB 4,341.8 million in the previous year[5]. - Non-current assets totaled RMB 1,497.8 million, a decrease from RMB 2,251.9 million in the previous year[5]. - The company's cash and cash equivalents decreased to RMB 1,145.6 million from RMB 1,442.9 million in the previous year[5]. - Total assets as of December 31, 2024, were approximately RMB 6,184.5 million, down from RMB 6,894.4 million in 2023, while total liabilities decreased to approximately RMB 3,042.4 million from RMB 3,185.0 million[85]. - As of December 31, 2024, the company's trade receivables amounted to approximately RMB 2,783.6 million, an increase of about RMB 342.4 million or 14.0% compared to RMB 2,441.2 million as of December 31, 2023[88]. - The company's trade payables as of December 31, 2024, were approximately RMB 609.0 million, reflecting an increase of about RMB 74.2 million or 13.9% from RMB 534.8 million as of December 31, 2023[89]. Revenue Breakdown - For the fiscal year ending December 31, 2024, the total revenue from residential property management services was RMB 1,769,176,000, and from non-residential property management and commercial operations was RMB 1,804,293,000, totaling RMB 3,573,469,000[19]. - Revenue from residential property management services decreased to RMB 1,769,176,000 in 2024 from RMB 1,744,067,000 in 2023, reflecting a growth of 1.4%[23]. - Non-residential property management and commercial operation services revenue fell to RMB 1,804,293,000 in 2024, down 14.3% from RMB 2,104,906,000 in 2023[23]. - The revenue from property management services within the residential segment rose by approximately 9.2% to about RMB 1,464.5 million, attributed to an increase in the managed building area[68]. - The revenue from community value-added services accounted for approximately 12.5% of the total residential property management services revenue in 2024[66]. Operational Efficiency and Strategy - The company is focusing on high-quality development, shifting from scale-first to efficiency-first strategies, and cutting low-revenue, high-management difficulty projects[37]. - The company plans to enhance operational efficiency and quality by streamlining organizational structures and implementing management standards[38]. - The company aims to enhance operational efficiency and deepen smart property applications to strengthen core competitiveness amid industry challenges[47]. - The company is strategically contracting in the non-residential property sector to improve overall profitability and capital return rates[50]. Employee and Governance - The company has 15,577 employees as of December 31, 2024, down from 16,814 employees in 2023[97]. - The board of directors did not recommend any final dividend for the year ended December 31, 2024[98]. - The company has adopted the Corporate Governance Code and has complied with the relevant rules, with a commitment to maintaining high-quality corporate governance to protect shareholder interests and enhance corporate value[101]. Market and Customer Insights - The company reported a year-on-year increase in customer traffic for managed shopping centers of approximately 1.7% as of December 31, 2024[41]. - The overall customer satisfaction rate reached approximately 96.8% based on a survey covering 17,000 samples from 123 managed projects[43]. - The retail sales of consumer goods in urban areas for 2024 are projected to be approximately RMB 421,166 billion, reflecting a year-on-year increase of about 3.4%[40]. Future Plans and Investments - The company plans to allocate approximately HKD 705.7 million for strategic acquisitions and investments to expand its market share in property management services[94]. - The company will hold its 2025 Annual General Meeting on June 3, 2025[99]. - The annual report containing all financial and relevant information as required by the listing rules will be published by the end of April 2025 on the company's website and the HKEX news website[108].

Financial Performance - For the six months ended June 30, 2024, the company achieved revenue of approximately RMB 1,923.4 million, with third-party revenue increasing from 81.4% in the same period of 2023 to 85.2%[4] - The company's gross profit for the same period was approximately RMB 564.0 million, resulting in a gross profit margin of about 29.3%[4] - For the first half of 2024, the company achieved total revenue of approximately RMB 1,923.4 million, with a gross margin of about 29.3%[11] - The total revenue for the group reached RMB 1,923.4 million for the six months ended June 30, 2024, compared to RMB 1,888.1 million in the same period of 2023[18] - The total revenue for the first half of 2024 was approximately RMB 1,923.4 million, an increase of 1.9% compared to RMB 1,888.1 million in the same period of 2023[25] - Revenue for the six months ended June 30, 2024, was RMB 1,923,371 thousand, a 1.9% increase from RMB 1,888,073 thousand in the same period of 2023[67] - Gross profit decreased to RMB 563,973 thousand, down 5.4% from RMB 596,112 thousand year-over-year[67] - Profit before tax for the first half of 2024 was RMB 98,633 thousand, a decline of 19.9% compared to RMB 123,133 thousand in the prior year[67] - Net profit attributable to equity holders of the parent company was RMB 57,838 thousand, down 7.0% from RMB 62,570 thousand in the same period of 2023[67] - Total comprehensive income for the period was RMB 76,343 thousand, a decrease of 30.9% from RMB 110,766 thousand in the first half of 2023[68] Revenue Breakdown - The property management service revenue increased by approximately 5.5% year-on-year to about RMB 1,647.6 million, with the residential segment growing by approximately 12.2%[12] - The group's revenue from residential property management services increased by approximately 5.6% year-on-year to about RMB 897.2 million for the six months ended June 30, 2024[19] - Revenue from residential property management services was RMB 897.2 million, accounting for 46.6% of total revenue, compared to RMB 849.6 million and 45.0% in 2023[25] - Revenue from non-residential property management and commercial operation services accounted for 53.4% of total revenue, totaling RMB 1,026.2 million[18] - Revenue from residential property management services amounted to RMB 733,118,000, up 12.2% from RMB 653,398,000 in the previous year[87] - Revenue from non-residential property management and commercial operation services was RMB 141,030 thousand, down 10.3% from RMB 157,329 thousand year-on-year[112] Customer and Market Insights - As of June 30, 2024, revenue from the Greater Bay Area and Yangtze River Delta regions accounted for about 65.4% of the company's total revenue[7] - Customer satisfaction reached 97.2% as of June 30, 2024, reflecting effective cost control and service quality improvements[9] - The company signed nearly 300 brands at its Chengdu shopping center, achieving an 18% year-on-year sales growth during its sixth anniversary event[6] - The company is adapting to market changes by focusing on service quality and maintaining a high-end positioning strategy[4] - The company continues to focus on expanding its presence in high-potential areas despite the contraction in urban service business[22] Operational Efficiency and Strategy - The company is focusing on high-quality development through strategic partnerships with developers, third-party market expansion, and acquisition strategies[3] - The company is committed to enhancing operational efficiency and profitability of existing projects while maintaining strict standards for new project profitability[4] - The company aims to leverage advanced technology and explore new boundaries in the property management industry[4] - The company has established a digital management system that integrates AI technology to enhance service efficiency and project management[10] - The group achieved a significant reduction in human resource costs, with a year-on-year improvement of about 4.0% as of June 30, 2024[15] Financial Position and Assets - Total assets amounted to approximately RMB 7,036.9 million as of June 30, 2024, compared to RMB 6,894.4 million as of December 31, 2023[39] - The group’s cash and cash equivalents were approximately RMB 1,268.5 million as of June 30, 2024, a decrease of approximately 12.1% from RMB 1,442.9 million as of December 31, 2023[39] - The group’s total borrowings were approximately RMB 612.3 million as of June 30, 2024, with RMB 156.8 million due within one year[39] - The total liabilities as of June 30, 2024, were RMB 3,763,170 thousand, compared to RMB 3,709,403 thousand at the end of 2023[70] - The company's total intangible assets as of June 30, 2024, amounted to RMB 485,679 thousand, down from RMB 632,679 thousand a year earlier, showing a decline of about 23.2%[101] Governance and Compliance - The company is committed to maintaining high levels of corporate governance to protect shareholder interests[56] - The company will continue to review and monitor its corporate governance practices to ensure compliance with the corporate governance code[56] - The company has adopted a standard code for securities trading by directors, confirming compliance for the six months ended June 30, 2024[57] - The company has not purchased, sold, or redeemed any listed securities during the six months ended June 30, 2024[58] Shareholder Information - The major shareholder, Jin De, holds 678,390,949 shares, representing 52.79% of the total voting rights[53] - The total number of shares issued as of June 30, 2024, is 2,025,858,916 shares[45] - The company did not declare any interim dividend for the six months ended June 30, 2024[55] - The total number of issued shares as of June 30, 2024, was 2,025,858,916[54] Future Outlook and Challenges - The company aims to strengthen risk control and adapt to market changes while fulfilling its social responsibilities in the evolving economic landscape[11] - The company is actively pursuing independent development while enhancing resource sharing and complementary advantages through brand collaborations[4] - The company plans to continue monitoring the progress of receivables recovery for six months to one year starting August 2024[63]

Financial Performance - For the six months ended June 30, 2024, the revenue was approximately RMB 1,923.4 million, an increase of 1.9% compared to the same period in 2023[1]. - The gross profit for the same period was approximately RMB 564.0 million, a decrease of 5.4% year-on-year[1]. - The profit for the six months ended June 30, 2024, was approximately RMB 69.9 million, representing a year-on-year decrease of about 14.3%[1]. - The basic and diluted earnings per share attributable to ordinary shareholders of the parent company were RMB 2.85, down from RMB 3.09 in the same period last year[3]. - The adjusted profit before tax for the group was RMB 98,633,000, down from RMB 123,133,000 in the previous year, indicating a decrease of approximately 19.9%[12]. - The group reported a net profit of RMB 69,892,000 for the six months ended June 30, 2024, compared to RMB 81,557,000 for the same period in 2023, a decline of about 14.3%[12]. - Other comprehensive income for the six months ended June 30, 2024, was RMB 6.5 million, compared to RMB 29.2 million in the same period last year[4]. - The total sales cost for the six months ended June 30, 2024, was approximately RMB 1,359.4 million, an increase of about RMB 67.4 million or 5.2% compared to RMB 1,292.0 million for the same period in 2023[62]. - Gross profit decreased to approximately RMB 564.0 million for the six months ended June 30, 2024, down RMB 32.1 million or 5.4% from RMB 596.1 million for the same period in 2023, resulting in a gross margin of approximately 29.3%[63]. - Other income and gains fell to approximately RMB 8.8 million, a decrease of RMB 17.6 million or 66.7% from RMB 26.4 million for the same period in 2023[64]. - Administrative expenses were approximately RMB 239.0 million, a decrease of RMB 23.1 million or 8.8% compared to RMB 262.1 million for the same period in 2023, reflecting improved management efficiency[65]. Assets and Liabilities - Trade receivables as of June 30, 2024, amounted to RMB 2,851.0 million, an increase from RMB 2,441.2 million as of December 31, 2023[5]. - Total current assets as of June 30, 2024, were RMB 4,892.9 million, compared to RMB 4,642.5 million as of December 31, 2023[5]. - Non-current assets totaled RMB 2,144.0 million as of June 30, 2024, down from RMB 2,251.9 million as of December 31, 2023[5]. - The total equity attributable to the parent company was RMB 3,460.7 million as of June 30, 2024, compared to RMB 3,395.5 million as of December 31, 2023[6]. - Trade payables rose to approximately RMB 595.8 million, an increase of RMB 61.0 million or 11.4% from RMB 534.8 million as of December 31, 2023[72]. - Total assets as of June 30, 2024, were approximately RMB 7,036.9 million, compared to RMB 6,894.4 million as of December 31, 2023[68]. - Cash and cash equivalents decreased by approximately 12.1% to RMB 1,268.5 million as of June 30, 2024, from RMB 1,442.9 million as of December 31, 2023[69]. - The company had total borrowings of approximately RMB 612.3 million as of June 30, 2024, with RMB 156.8 million due within one year[70]. Revenue Breakdown - The residential property management services generated revenue of RMB 897,173,000, while non-residential property management and commercial operation services contributed RMB 1,026,198,000[11]. - The company achieved total revenue of approximately RMB 1,923.4 million for the six months ended June 30, 2024, with a gross margin of about 29.3%[35]. - Revenue from independent third-party projects accounted for approximately 85.2% of total revenue, an increase of about 3.8 percentage points compared to the same period in 2023[37]. - The property management service revenue increased by approximately 5.5% year-on-year to about RMB 1,647.6 million for the six months ended June 30, 2024, with the residential segment growing by approximately 12.2%[36]. - Revenue from residential property management services increased by approximately 5.6% year-on-year to about RMB 897.2 million, despite a 55.3% decrease in pre-sale management service revenue due to market pressures[45]. - The community value-added service revenue increased from approximately RMB 97.3 million to RMB 119.9 million, reflecting an increase in owner value-added services[56]. - Revenue from the residential property management service segment in the Greater Bay Area and Yangtze River Delta regions grew by approximately 8.8% and 3.0% year-on-year, respectively, accounting for about 57.6% of total revenue in the residential segment[46]. - The non-residential property management service segment's revenue from property management services slightly increased from approximately RMB 908.6 million to RMB 914.5 million[59]. - The commercial operation service revenue decreased from approximately RMB 60.7 million to RMB 40.5 million, mainly due to a reduction in planning and consulting service income[60]. Management and Governance - The company announced a change in CEO, with Mr. Wang Jianhui resigning and Mr. Wang Zhongqi appointed effective August 29, 2024[1]. - The board decided not to declare any interim dividend for the six months ended June 30, 2024, consistent with the previous year[78]. - The company has adhered to good corporate governance principles and complied with the relevant rules, with no significant deviations reported[79]. - The audit committee, composed of three independent non-executive directors, reviewed the interim financial information[82]. - The board expressed gratitude for Wang Jianhui's contributions during his tenure and welcomed Wang Zhongqi to his new role[86]. Strategic Initiatives - The company is focusing on quality development and operational efficiency, emphasizing the profitability of new projects and improving existing project operations[23]. - The company is adapting to market changes by maintaining service quality and pursuing independent development while leveraging high-end positioning advantages[23]. - The company aims to embrace cutting-edge technology and explore new boundaries in the property management industry[24]. - The company has implemented digital management tools to standardize service quality and improve operational efficiency[33]. - The introduction of digital management systems improved operational efficiency, with a year-on-year increase of approximately 4.0% in labor cost efficiency and a decrease of about 1.5 percentage points in administrative management expenses[39]. - The company has made its first foray into the health and wellness business, expanding its service offerings[28]. - The company has expanded its presence to 136 cities across 23 provinces, autonomous regions, and municipalities in China by June 30, 2024[35]. - The company signed nearly 300 brands at its Chengdu shopping center, recording an 18% year-on-year sales growth during its sixth anniversary event in May[27]. - Customer satisfaction reached 97.2% as of June 30, 2024, reflecting significant improvements in service quality and efficiency[29]. - The company has introduced new brands targeting younger consumers and optimized shopping environments to enhance consumer experience[26]. - The company aims to strengthen risk control and adapt to market changes while fulfilling its social responsibilities in the complex global economic environment of 2024[34].

Summary of Conference Call Notes Company and Industry Involved - The discussion revolves around the company "星拓" (Xingtu) and its strategic focus on key economic regions in China Core Points and Arguments - The company emphasizes its strategy of deepening its presence in economically developed areas, with 62.7% of its debt management area coming from first and second-tier cities [1] - Revenue from the Greater Bay Area and the Yangtze River Delta accounts for 66.3% of the company's total income, reinforcing its commitment to focusing on key regions [1] Other Important but Possibly Overlooked Content - The strategic focus on economically developed regions indicates a targeted approach to market penetration and risk management, which may provide insights into the company's long-term growth potential [1]

Financial Performance - Revenue for 2023 decreased by 4.4% to RMB 3,848.973 million compared to RMB 4,025.711 million in 2022[43] - Gross profit for 2023 decreased by 4.7% to RMB 1,182.364 million compared to RMB 1,240.560 million in 2022[43] - Net profit for 2023 increased by 4.1% to RMB 62.318 million compared to RMB 59.851 million in 2022[43] - Profit attributable to owners of the parent company surged by 788.1% to RMB 30.303 million in 2023 from RMB 3.412 million in 2022[43] - Earnings per share (basic and diluted) increased by 782.4% to RMB 1.50 in 2023 from RMB 0.17 in 2022[43] - Income tax expense for 2023 increased to RMB 77.7 million from RMB 63.6 million in 2022, primarily due to higher taxable income[41] - Total assets decreased by 0.7% to RMB 6,894.4 million in 2023 compared to RMB 6,944.7 million in 2022[77] - Total liabilities decreased by 9.4% to RMB 3,185.0 million in 2023 from RMB 3,516.2 million in 2022[77] - Total equity increased by 8.2% to RMB 3,709.4 million in 2023 from RMB 3,428.5 million in 2022[77] - Trade receivables increased by 18.9% to RMB 2,441.2 million in 2023 from RMB 2,052.4 million in 2022[83] - Trade payables decreased by 7.1% to RMB 534.8 million in 2023 from RMB 575.4 million in 2022[84] - The company achieved revenue of approximately RMB 3,849.0 million in 2023, with third-party revenue increasing from 78.6% in 2022 to 82.9% in 2023, indicating accelerated independent development[92] - Gross profit for 2023 was approximately RMB 1,182.4 million, with a gross profit margin of 30.7%[92] - Total sales cost decreased by RMB 118.6 million or 4.3% to approximately RMB 2,666.6 million in 2023 compared to 2022[101] - Administrative expenses decreased by RMB 35.4 million or 6.5% to approximately RMB 507.4 million in 2023, primarily due to improved management efficiency[104] - Gross profit decreased by 4.7% YoY to RMB 1,182.4 million in 2023, with a gross margin of 30.7% (2022: 30.8%)[133] - Other expenses amounted to RMB 548.2 million in 2023, including trade receivables impairment loss of RMB 205.9 million and goodwill impairment loss of RMB 255.8 million[135] - Government subsidies and VAT incentives decreased by 44.8% YoY to RMB 46.5 million in 2023[150] - The company's total revenue for 2023 was RMB 3,848.9 million, a slight decrease from RMB 4,025.7 million in 2022[147] Business Operations - The company operates in China, providing residential property management services and non-residential property management and commercial operation services[10] - Revenue from pre-sale management services in the non-residential property management and commercial operations segment decreased from RMB 31.4 million in 2022 to RMB 24.2 million in 2023, mainly due to a reduction in the number of sales offices managed[100] - Residential property management service revenue decreased by 7.0% YoY to RMB 1,744.1 million in 2023, primarily due to a decline in the number of residential property sales offices and community value-added services[120] - Excluding pre-sale management services and other value-added services, residential property management service revenue increased by 4.5% YoY to RMB 1,340.9 million in 2023[120] - Non-residential property management and commercial operation service revenue decreased by 2.1% YoY to RMB 2,104.9 million in 2023, mainly due to reduced demand for temporary hospitals and isolation facilities post-pandemic[123] - Revenue from pre-sale management services in the residential property management segment decreased by 30.5% YoY to RMB 181.0 million in 2023[129] - Commercial operation service revenue in the non-residential property management segment decreased by 10.0% YoY to RMB 121.1 million in 2023[132] - Total revenue from the Greater Bay Area accounted for 37.9% of residential property management service revenue in 2023, down from 42.9% in 2022[121] - Revenue from public and urban area property management services accounted for 35.5% of total non-residential property management and commercial operation service revenue in 2023[138] - Total revenue from the residential property management segment accounted for 45.3% of the company's total revenue in 2023, down from 46.6% in 2022[138] - Residential property management services accounted for 57.3% of revenue in the Greater Bay Area and Yangtze River Delta regions in 2023[139] - Non-residential property management and commercial operations revenue in the Greater Bay Area decreased by 6.7% YoY in 2023, primarily due to the withdrawal of some managed quarantine facilities post-pandemic[142] - Total revenue for residential property management services was RMB 1,744.1 million in 2023, representing 45.3% of total revenue[147] - Non-residential property management and commercial operations revenue was RMB 2,104.9 million in 2023, accounting for 54.7% of total revenue[147] - Community value-added services revenue in residential property management decreased from RMB 331.2 million in 2022 to RMB 222.2 million in 2023 due to the sluggish real estate market[154] - Property management services revenue in non-residential property management decreased from RMB 1,866.3 million in 2022 to RMB 1,830.7 million in 2023, mainly due to reduced revenue from hospital projects[155] - The Greater Bay Area contributed 44.3% of non-residential property management revenue in 2023, down from 46.5% in 2022[143] - Non-residential property management and commercial operation services segment's other value-added service revenue increased from approximately RMB 118.5 million in 2022 to approximately RMB 129.0 million in 2023, driven by diversified business development[173] Financial Assets and Liabilities - The company's investment properties are initially measured at cost, including transaction costs, and subsequently measured at fair value reflecting market conditions at each reporting date[19] - The company applies a simplified method for calculating expected credit losses on trade receivables, using a provision matrix based on historical credit loss experience and adjusted for specific forward-looking factors[23] - The company's financial liabilities are initially recognized at fair value, with transaction costs deducted for loans, borrowings, and payables[31] - The company's cash and cash equivalents consist of cash on hand, bank deposits, and short-term deposits, net of bank overdrafts that are repayable on demand and form an integral part of the company's cash management[32] - The company's financial assets are measured based on their classification, with impairment losses recognized in two stages: 12-month expected credit losses and lifetime expected credit losses[34][35] - Financial liabilities are initially measured at fair value and subsequently measured at amortized cost using the effective interest method, unless the discounting effect is not significant[37] - The company's financial assets and liabilities can be offset if there is a legally enforceable right to set off the recognized amounts and an intention to settle on a net basis[39] - The company is in a net cash position, making the debt ratio not applicable for both 2023 and 2022[85] - The company has no significant contingent liabilities as of December 31, 2023[86] - The company has not engaged in hedging activities to manage foreign exchange rate risk during 2023[86] - Total assets as of December 31, 2023, were RMB 6,894.4 million, with total liabilities of RMB 3,185.0 million, resulting in a current ratio of 1.82[151] - Cash and cash equivalents decreased by approximately 21.9% from approximately RMB 1,847.5 million as of December 31, 2022, to approximately RMB 1,442.9 million as of December 31, 2023[174] - Total borrowings as of December 31, 2023, amounted to approximately RMB 637.0 million, with RMB 148.0 million due within 1 year, RMB 464.8 million due within 2 to 5 years, and RMB 24.2 million due after 5 years[174] - The company's bank and other loans are secured by trade receivables, other receivables, and property, plant, and equipment with a total book value of approximately RMB 182.6 million, plus equity in a subsidiary[174] - The company's total borrowings as of December 31, 2023, include approximately RMB 600.4 million of loans with fixed interest rates, while the rest are subject to floating interest rates[174] Corporate Governance and Awards - The company received multiple awards in 2023, including "2023 China Property Management Listed Company TOP10" and "2023 China Property Management ESG Development Excellence Award"[44][46] - The company has adopted a board diversity policy, considering factors such as gender, age, cultural and educational background, professional experience, and skills when selecting board candidates[112] - The company has implemented a governance framework in compliance with the Hong Kong Stock Exchange's Corporate Governance Code, with deviations only for specific reasons[87] - The company held 4 board meetings and 2 general meetings (including 1 annual general meeting and 1 extraordinary general meeting) during the year ended December 31, 2023[184] - The company has three independent non-executive directors, accounting for more than one-third of the board members, with at least one possessing appropriate professional qualifications or accounting and financial management expertise[183] - The nomination committee reviewed the board's structure, size, and composition, as well as the diversity and independence of board members, and assessed the independence of independent non-executive directors during the year[170] - The company's shareholder communication policy ensures equal and timely access to company information through its website and the "Disclosure Easy" website, including interim and annual reports, announcements, and circulars[189] - The company's board has established three committees: remuneration committee, nomination committee, and audit committee, which are adequately resourced to fulfill their responsibilities[193] - The company has adopted a nomination policy outlining criteria and procedures for the selection, appointment, and re-appointment of directors, considering factors such as integrity, achievements, experience, time commitment, and potential contribution to board diversity[195] - The audit committee is responsible for reviewing and monitoring the integrity of the group's financial statements, annual reports, and interim reports, as well as the group's financial and accounting policies and practices[196] - The audit committee reviews the external auditor's management letter, questions raised by the external auditor to management, and management's responses, and advises the board on environmental, social, and governance matters under the new Appendix C2 of the Listing Rules effective from December 31, 2023[197] - All audit committee members attended all 4 meetings held during the period[198] - Ernst & Young resigned as the company's auditor on December 27, 2023, and the board appointed PricewaterhouseCoopers as the new auditor to fill the temporary vacancy until the next annual general meeting[199] Strategic Focus and Efficiency - The company's efficiency (revenue per yuan of labor cost) increased by 10.2 percentage points in 2023 compared to 2022[74] - The company continues to focus on digital transformation and operational efficiency, leveraging AI and technology to enhance productivity[74] - The company plans to focus on digital transformation and building new productive forces in 2024, aiming for high-quality development[89] - The company will continue to strengthen its competitive barriers in existing markets such as residential, commercial, institutional, and public properties, while exploring potential opportunities[89] - The company aims to balance cost and efficiency while ensuring an exceptional customer experience in 2024[89] Reserves and Investments - The company's consolidated reserves amounted to approximately RMB 3,377,893,000 as of 2023, compared to RMB 3,124,045,000 in 2022[9]

Financial Performance - For the year ended December 31, 2023, the revenue was approximately RMB 3,849.0 million, a decrease of about 4.4% year-on-year[3]. - The gross profit for the same period was approximately RMB 1,182.4 million, down approximately 4.7% year-on-year[3]. - The profit for the year was approximately RMB 62.3 million, an increase of about 4.1% year-on-year[3]. - Total comprehensive income for the year was RMB 75.5 million, down from RMB 146.3 million in the previous year[7]. - The adjusted profit before tax for the group was RMB 139,975,000, resulting in a net profit of RMB 62,318,000 after tax expenses of RMB 77,657,000[30]. - The group reported a significant impairment loss on goodwill amounting to RMB 255,840,000, alongside a net impairment loss on trade receivables of RMB 205,947,000[32]. - The pre-tax profit for the group was impacted by various costs, with total costs of services provided amounting to RMB 2,666.609 million in 2023, down from RMB 2,785.151 million in 2022[49]. - The group’s tax expense for the year was RMB 77.657 million, slightly up from RMB 63.582 million in 2022, indicating an increase of approximately 22.5%[52]. - Basic and diluted earnings per share for the year were RMB 1.50, significantly up from RMB 0.17 in 2022, indicating a substantial increase in profitability[54]. Revenue Breakdown - The total revenue for the year ended December 31, 2023, was RMB 3,848,973,000, with a breakdown of RMB 1,744,067,000 from residential property management services and RMB 2,104,906,000 from non-residential property management and commercial operations[30]. - Revenue from residential property management services amounted to RMB 1,744.067 million in 2023, down from RMB 1,875.125 million in 2022, indicating a decrease of approximately 7.0%[43]. - Non-residential property management and commercial operation services generated revenue of RMB 2,104.906 million in 2023, slightly down from RMB 2,150.586 million in 2022, reflecting a decrease of about 2.1%[43]. - The total revenue for the residential property management services segment decreased by 7.0% to approximately RMB 1,744.1 million in 2023, compared to RMB 1,875.1 million in 2022[92]. - The property management service revenue reached approximately 3,171.6 million, an increase of about 0.7% year-on-year, with residential property management service revenue at approximately 1,340.9 million, growing by about 4.5%[77]. Assets and Liabilities - Non-current assets totaled RMB 2,251.9 million, a decrease from RMB 2,560.5 million in the previous year[9]. - Current assets increased to RMB 4,642.5 million from RMB 4,384.2 million in the previous year[9]. - The net current assets amounted to RMB 2,089.9 million, compared to RMB 1,423.9 million in the previous year[9]. - Total equity attributable to shareholders of the parent company was RMB 3,395.5 million, up from RMB 3,141.6 million in the previous year[11]. - The company's trade receivables increased to RMB 3,186.2 million in 2023 from RMB 2,642.9 million in 2022, with a provision for impairment losses rising to RMB 744.9 million[56]. - The company's contract liabilities increased to RMB 258.809 million as of December 31, 2023, compared to RMB 225.945 million in 2022, marking an increase of approximately 14.6%[44]. Operational Efficiency and Strategy - The company’s operational efficiency improved, with revenue per unit of labor cost increasing by approximately 10.2 percentage points compared to the same period in 2022[64]. - The company plans to continue its digital transformation and enhance its service capabilities in 2024, focusing on maintaining competitive advantages in existing markets[68]. - The company aims to strengthen its market capabilities and explore potential opportunities in 2024, emphasizing a balance between customer experience and operational efficiency[68]. - The company aims to optimize its national layout by replicating successful project experiences in existing advantageous areas[92]. - The company has expanded its business layout to include "residential + commercial property and operations + public construction and urban services" as of December 31, 2023[78]. Corporate Governance and Compliance - The company is committed to maintaining high-quality corporate governance to protect shareholder interests and enhance corporate value[147]. - The company will hold its 2024 Annual General Meeting on June 5, 2024[145]. - The board proposes to amend the existing articles of association and bylaws at the 2024 annual general meeting to comply with new regulatory requirements[157]. - The proposed amendments aim to facilitate electronic communication with shareholders and allow for electronic or hybrid shareholder meetings[158]. - The full text of the proposed amendments will be published on the stock exchange and the company's website[159]. Auditor and Reporting - Ernst & Young resigned as the company's auditor on December 27, 2023, and Baker Tilly Hong Kong Limited was appointed as the new auditor[153]. - The company's annual report for the year ending December 31, 2023, will be published by the end of April 2024 on the company's website and the HKEX news website[156]. - The audit committee, composed of three independent non-executive directors, has reviewed the group's annual performance for the year ending December 31, 2023[152]. Employee and Workforce - As of December 31, 2023, the company has 16,814 employees, a decrease from 17,598 employees in 2022[142].

Financial Performance - The company's revenue for the first half of 2023 decreased by 8.5% year-on-year, reaching approximately RMB 1,888.1 million[8]. - The core net profit for the first half of 2023 was approximately RMB 257.8 million[8]. - Total revenue for the first half of 2023 was RMB 1,888.1 million, representing a year-on-year decline of 8.5%, primarily due to decreased income from presale management and community value-added services[18]. - Revenue from residential property management services decreased by 10.7% year-on-year to approximately RMB 849.6 million, down from RMB 951.8 million[28]. - Revenue from community value-added services decreased significantly to RMB 97.3 million from RMB 191.6 million, indicating challenges in the real estate market[23]. - The company reported a significant decline in community value-added services revenue, dropping to RMB 97.3 million from RMB 191.6 million, a decrease of 49.3%[45]. - The company reported a basic and diluted earnings per share of RMB 3, compared to RMB 16 for the same period in 2022[92]. - The total comprehensive income for the period was RMB 110,766, down from RMB 337,996 in the same period last year[94]. - The group recorded a profit before tax of RMB 123,133,000, a significant decline of 70.4% from RMB 415,656,000 in the same period last year[113]. Operational Efficiency and Strategy - The company is focusing on optimizing its business structure by reducing reliance on traditional developer clients and increasing the proportion of third-party business[9]. - The company plans to leverage digital tools to enhance operational efficiency and support high-quality growth[8]. - The company aims to balance short-term returns with long-term development while focusing on quality growth and operational efficiency[16]. - The company is actively managing its project portfolio, withdrawing from high-risk projects to optimize overall operations[17]. - The company aims to enhance local market expansion by developing benchmark public construction projects and deepening integration with member enterprises[34]. - The company is exploring new growth paths and service possibilities based on big data to enhance service quality and customer experience[20]. - The company emphasizes the importance of quality service and digital efficiency as key components of its long-term development strategy[17]. Market Presence and Project Management - Revenue from third-party projects accounted for 81.4% of total revenue in the first half of 2023, up from 77.3% in the same period last year[9]. - The company managed a total construction area of 205.4 million square meters and a contracted construction area of 278.1 million square meters as of June 30, 2023[10]. - The area managed for third-party projects reached 179.2 million square meters, representing 87.3% of the total managed area[10]. - The total contracted building area across 134 cities in China reached approximately 278.1 million square meters[17]. - The area under management for residential properties reached 105.3 million square meters, with third-party residential properties accounting for 79.0% of this area[28]. - The area under management in the Greater Bay Area and Yangtze River Delta accounted for 58.9% of the total area under management as of June 30, 2023[24]. - The area under management decreased slightly from 215.5 million square meters at the end of 2022 to 205.4 million square meters by June 30, 2023, due to the withdrawal from high-risk projects[24]. - The company achieved a third-party project management area ratio of 87.3% as of June 30, 2023, reflecting successful market expansion efforts[27]. Financial Position and Assets - Total assets increased to approximately RMB 7,149.8 million as of June 30, 2023, from approximately RMB 6,944.7 million as of December 31, 2022[58]. - Cash and cash equivalents decreased by approximately 10.6% to approximately RMB 1,652.2 million as of June 30, 2023, compared to approximately RMB 1,847.5 million as of December 31, 2022[59]. - Trade receivables increased by approximately RMB 266.8 million or 13.0% to approximately RMB 2,319.2 million as of June 30, 2023, compared to approximately RMB 2,052.4 million as of December 31, 2022[61]. - The total equity attributable to owners of the parent increased to RMB 3,443,630 thousand from RMB 3,141,613 thousand, an increase of about 9.6%[97]. - The company reported a net loss of RMB 139,193 thousand in operating cash flow for the first half of 2023, compared to a positive cash flow of RMB 265,287 thousand in the same period of 2022[101]. - The total amount of other payables to joint ventures and associates decreased to RMB 10,540 thousand as of June 30, 2023, from RMB 11,951 thousand as of December 31, 2022, indicating a decline of about 11.8%[149]. Governance and Management Changes - The company appointed a new CEO, Wang Jianhui, effective June 2, 2023, following the resignation of the previous CEO, Kong Jianan[81]. - The company has maintained compliance with the Corporate Governance Code, with some deviations noted regarding attendance at shareholder meetings[79]. - The company's governance practices are under continuous review to ensure adherence to the Corporate Governance Code[79]. - The company did not declare any interim dividend for the six months ended June 30, 2023[78]. Shareholder Information - As of June 30, 2023, the total number of shares held by executive directors and senior management amounts to 1,071,654,546 shares, representing 52.90% of the issued shares[67]. - The total number of shares issued by the company as of June 30, 2023, is 2,025,858,916 shares[67]. - The major shareholders collectively hold 1,069,354,546 shares, representing 52.79% of the total issued shares as of June 30, 2023[75]. - The company has a dividend yield of 1.16% as part of its stock option valuation[73].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性或 完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部份內容而產生或因倚賴該 等內容而引致的任何損失承擔任何責任。 KWG Living Group Holdings Limited 合 景 悠 活 集 團 控 股 有 限 公 司 （於開曼群島註冊成立的有限公司） （股份代號：3913） (1)截至2023年6月30日止六個月的未經審核中期業績公告； 及 (2)更換公司秘書及授權代表 中期業績摘要 • 截至2023年6月30日止六個月收入約人民幣1,888.1百萬元，較2022年同期減少 8.5%。 • 截至2023年6月30日止六個月毛利約人民幣596.1百萬元，較2022年同期減少4.2%。 • 截至2023年6月30日止六個月利潤約人民幣81.6百萬元。核心淨利潤（附註1）約人民幣 257.8百萬元，同比減少約23.0%。 更換公司秘書及授權代表 • 陳女士已提出辭任公司秘書並已不再擔任授權代表，自2023年8月29日起生效。 ...

Acquisition and Expansion - The company completed the acquisition of 50% equity in Guangdong Teli Clean for a cash consideration of RMB 165 million, which has been consolidated into the group's financial statements[1]. - The acquisition of Guangdong Teli Clean, primarily engaged in urban and rural environmental cleaning services, has expanded the company's service offerings[1]. - The company is focused on expanding its market presence through strategic acquisitions and partnerships in the environmental services sector[1]. - The company expanded its service offerings by acquiring Guangdong Teli Clean Environmental Engineering Co., Ltd. in January 2022, entering the urban services sector[182]. Financial Performance - The company’s financial performance has been positively impacted by the integration of Guangdong Teli Clean's financial results into its consolidated financial statements[1]. - The company’s revenue for the year ended December 31, 2022, was RMB 4,025.7 million, representing a 23.7% increase from RMB 3,255.4 million in 2021[151]. - Gross profit for the same period was RMB 1,240.6 million, a slight increase of 1.2% compared to RMB 1,226.1 million in 2021[151]. - The net profit for the year was RMB 59.9 million, a significant decrease of 91.3% from RMB 684.3 million in the previous year[151]. - The total revenue for the year ended December 31, 2022, was RMB 4,025,711 thousand, an increase from RMB 3,255,446 thousand in 2021, representing a growth of approximately 23.6%[199]. Share Incentive and Compliance - As of December 31, 2022, the company reported that the total number of shares issued under the share incentive plan was approximately 100,890,511 shares, representing about 4.98% of the total issued shares[19]. - The share incentive plan allows for the issuance of shares not exceeding 1% of the total issued shares at the grant date[12]. - The company has confirmed compliance with the relevant regulations regarding related party transactions as per the listing rules[28]. - The company has adhered to a non-competition agreement established on October 14, 2020, with its controlling shareholders[27]. Operational Efficiency and Technology - The company is focusing on integrating technology to improve service efficiency and quality, thereby enhancing its market position and competitiveness[150]. - The company aims to enhance customer service experience and create value for shareholders by transitioning from a full-service model to a full-ecosystem approach[140]. - The company aims to deepen its digital transformation and upgrade its smart operation and management platform to enhance service quality and operational efficiency[171]. - The company has introduced smart project work order systems to empower frontline staff and improve management efficiency[171]. Market Presence and Strategy - The company has expanded its operations to 132 cities across 21 provinces, autonomous regions, and municipalities in China[140]. - The company is actively pursuing new strategies in urban services and property management to meet evolving market demands and regulatory standards[140]. - The company aims to increase market share in core areas and enhance penetration in key segments, focusing on urban service products for healthy growth[190]. - The company continues to focus on independent third-party market expansion as a key development strategy, leveraging high-quality services and a professional market team[200]. Awards and Recognition - The company received multiple awards in 2022, including being ranked TOP8 for property service excellence and TOP7 for financial performance among listed property service companies[135]. - The company was recognized as one of the "Top 14 Property Management Companies in China" by E-Han Think Tank, reflecting its comprehensive product and service capabilities[194]. - The company has received multiple awards, including being ranked among the top 15 property service companies in China by the China Index Academy in 2021[150]. Financial Management and Investments - The group allocated approximately HKD 705.7 million for strategic acquisitions and investments to expand its market share in residential property management services and other non-residential property management services[59]. - The company is seeking strategic acquisition and investment opportunities amounting to HKD 2,703.4 million[102]. - The total planned use of net proceeds amounts to HKD 2,913.1 million[102]. - The company has not utilized or has no plans for HKD 116.1 million of the net proceeds as of December 31, 2022[102]. Employee and Governance - The group had approximately 18,000 employees as of December 31, 2022, maintaining the same number as in 2021[56]. - The company has a structured governance framework with experienced directors providing oversight and strategic direction across various sectors[89]. - The company has arranged appropriate directors and officers liability insurance for potential legal actions faced by directors during the year[38].