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].

Financial Performance - For the year ended December 31, 2022, the company's revenue was approximately RMB 4,025.7 million, representing a year-on-year growth of 23.7%[7] - The gross profit for the same period was approximately RMB 1,240.6 million, with a slight year-on-year increase of 1.2%[7] - The net profit for the year was approximately RMB 59.9 million, while the core net profit was approximately RMB 564.6 million, reflecting a year-on-year decrease of about 19.1%[7] - The sales cost for the year ended December 31, 2022, was approximately RMB 2,785.2 million, an increase of RMB 755.9 million or 37.2% compared to RMB 2,029.3 million in 2021[54] - The company reported a net profit of RMB 59,851 thousand for the year, a significant decrease from RMB 684,317 thousand in 2021, reflecting a decline of approximately 91.2%[104] - 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%[125] Revenue Breakdown - The revenue from property management services was RMB 1,283.5 million, accounting for 68.5% of total revenue, compared to 49.0% in the previous year[23] - The revenue from non-residential property management and commercial operation services increased from approximately RMB 1,057.3 million in 2021 to approximately RMB 1,866.3 million in 2022[27] - The total revenue from non-residential property management and commercial operation services increased from approximately RMB 1,318.9 million in 2021 to RMB 2,150.6 million in 2022, representing a growth of 63.0%[51] - The company’s community value-added services revenue was RMB 331.2 million, which accounted for 17.7% of total revenue, down from 31.2% in the previous year[23] - Revenue from residential property management services reached RMB 83,722,000 in 2022, up from RMB 58,385,000 in 2021, reflecting an increase of 43.5%[153] Operational Metrics - As of December 31, 2022, the total managed building area reached approximately 215.5 million square meters, and the total contracted building area was approximately 287.0 million square meters, with year-on-year growth of 4.5% and 3.3% respectively[7] - The company managed a total of 1,169 non-residential properties as of December 31, 2022, covering major cities including Beijing, Shanghai, Guangzhou, Chengdu, and Suzhou[21] - The company operates in 132 cities in China, managing a total contracted area of approximately 287.0 million square meters, with about 215.5 million square meters under management as of December 31, 2022[80] - The management area of third-party projects reached 189.7 million square meters, accounting for 88.0% of the total managed area[180] - The number of residential properties managed increased from 801 to 836, contributing to a managed building area growth from approximately 99.2 million square meters to 108.5 million square meters[199] Assets and Liabilities - Non-current assets totaled RMB 2,560,486 thousand in 2022, up from RMB 2,302,143 thousand in 2021, reflecting an increase of about 11.2%[106] - Current assets increased significantly to RMB 4,384,205 thousand in 2022 from RMB 2,699,928 thousand in 2021, marking a growth of approximately 62.3%[106] - The total liabilities increased to RMB 3,428,519 thousand in 2022 from RMB 3,515,886 thousand in 2021, showing a decrease of about 2.5%[107] - The total equity attributable to owners of the parent company was RMB 3,141,613 thousand in 2022, down from RMB 3,466,508 thousand in 2021, reflecting a decline of approximately 9.4%[107] Strategic Initiatives - The company plans to allocate approximately HKD 250 million for strategic acquisitions and investments to expand its market share in residential and non-residential property management services[73] - The company intends to invest approximately HKD 120.6 million to upgrade its smart service systems to enhance operational efficiency and service quality[73] - The company aims to strengthen its market share in the rigid residential market and expand its non-residential property business in 2023, focusing on high-end residential and commercial markets[94] - The company has implemented a digital learning platform that covered over 4,000 frontline employees and conducted more than 10 live classes, enhancing service capabilities and talent retention[93] - The company plans to deepen its digital transformation and upgrade its smart operation and management platform to enhance service quality and operational efficiency in 2023[94] Market Position and Recognition - The company received multiple accolades in 2022, including being ranked 9th in the "Top 9 Property Service Listed Companies in China" and 3rd in "Non-Residential Property Service" by the China Index Academy[80] - The company has strategically positioned itself to cater to emerging consumer trends, including health, pets, and the silver economy, with the opening of a major commercial project in Guangzhou Knowledge City exceeding 100,000 square meters[89] - The company has attracted well-known clients from emerging industries such as finance, 5G communications, and smart technology, contributing to new growth points in its commercial landscape[90] Challenges and Future Outlook - The company reported a significant increase in contract liabilities due to short-term advances received from customers for property management services, indicating growth in future revenue streams[139] - The group reported a pre-tax profit of RMB 3,412,000 in 2022, a significant decrease from RMB 674,843,000 in 2021[159] - The group achieved a net loss of RMB 143,415,000 in goodwill impairment for the year, compared to no losses in the previous year[157]

Financial Performance - For the six months ended June 30, 2022, the company achieved a revenue growth of 68.0% year-on-year, reaching approximately RMB 2,064.3 million[14]. - The company's gross profit for the same period was approximately RMB 622.1 million, with a net profit of approximately RMB 329.6 million, resulting in earnings per share of RMB 0.16[14]. - For the first half of 2022, total revenue was RMB 2,064.3 million, a significant increase from RMB 1,228.6 million in the same period of 2021, representing a year-on-year growth of 68%[30]. - The company reported a total revenue of RMB 2,064,331 thousand for the six months ended June 30, 2022, compared to RMB 1,228,554 thousand in the same period of 2021, marking a significant increase[56]. - The total comprehensive income for the period was RMB 337,996 thousand, an increase from RMB 292,932 thousand, marking a growth of 15.4%[120]. - The company reported a pre-tax profit of RMB 415,656 thousand for the six months ended June 30, 2022, compared to RMB 406,624 thousand in the same period of 2021, representing a growth of approximately 3.1%[130]. - Profit for the period was RMB 329,632 thousand, compared to RMB 318,883 thousand in 2021, reflecting a 3.7% increase[120]. Revenue Breakdown - Revenue from residential property management services accounted for 50.1% of total revenue, with property management services generating RMB 707.7 million, up from RMB 344.5 million in 2021[30]. - The revenue from residential property management services was RMB 1,033,662,000, while non-residential property management and commercial operation services generated RMB 1,030,669,000, indicating a balanced contribution from both segments[153]. - Non-residential property management and commercial operation services accounted for 49.9% of total revenue, with property management services generating RMB 906.6 million, up from RMB 288.0 million in 2021[30]. - Community value-added services generated RMB 191.6 million, contributing 9.3% to total revenue, down from 26.2% in the previous year[30]. Operational Expansion - The company expanded its operations to 147 cities across 22 provinces, autonomous regions, and municipalities, managing a total area of 214.2 million square meters[14]. - As of June 30, 2022, the group expanded its project portfolio by 334 new projects, covering residential, commercial, public construction, and urban services[20]. - The acquisition of Te Li Jie allowed the group to enter the urban services sector, successfully replicating its business model in the Southwest and Central China regions in the first half of 2022[19]. - The company plans to expand its market presence by establishing expert teams and flexible expansion mechanisms to overcome geographical and industrial boundaries[23]. Digital Transformation and Innovation - The group maintained a focus on digital transformation in commercial operations, launching a smart marketing platform to enhance online and offline service integration[21]. - The company emphasizes digital management capabilities and post-investment management to ensure organic integration across diverse business sectors[12]. - The company is focused on digital transformation and aims to enhance service quality through new technologies, targeting sustainable growth in the digital economy[23]. ESG and Corporate Governance - The company received several awards for its ESG initiatives, including "2022 Outstanding Enterprise in ESG Development" and "Green Leadership Award" in Asia[15]. - The company is committed to sustainable development and has received recognition for its ESG initiatives, including the "2022 China Property Service ESG Development Excellent Enterprise" award[24]. - The company is preparing for a "green" new era by investing in high-standard projects that align with government carbon reduction goals[19]. - The company is committed to maintaining high-quality corporate governance to protect shareholder interests and enhance corporate value[100]. Financial Position and Liabilities - Total assets increased to approximately RMB 7,524.7 million as of June 30, 2022, from RMB 5,002.1 million as of December 31, 2021[74]. - Total liabilities increased to approximately RMB 3,746.9 million as of June 30, 2022, from RMB 1,486.2 million as of December 31, 2021[74]. - The group had total borrowings of approximately RMB 663.7 million as of June 30, 2022, with RMB 156.7 million due within one year and RMB 507.0 million due within 2 to 5 years[75]. - The current ratio was 1.58 as of June 30, 2022, compared to 1.89 as of December 31, 2021[74]. Employee and Management - As of June 30, 2022, the group had approximately 20,000 employees, an increase from about 18,000 employees as of December 31, 2021[111]. - Total compensation for key management personnel increased to RMB 5,695 thousand for the six months ended June 30, 2022, compared to RMB 4,170 thousand in 2021, reflecting a rise of 36.5%[195]. Acquisitions and Investments - The company completed the acquisition of a 50% stake in Teli Clean for a cash consideration of RMB 165 million, which is now a non-wholly owned subsidiary[111]. - The acquisition of Youhuo Zhiliang Technology Co., Ltd. was completed in March 2022 for a total consideration of RMB 1,316,000,000, acquiring 80% equity, aimed at expanding property management operations in China[177]. - The acquisition of Guangdong Teli Clean Environmental Engineering Co., Ltd. was completed in January 2022 for RMB 165,000,000, increasing the group's stake to 55%[184]. Shareholder Information - Major shareholders collectively hold 1,069,354,546 shares, representing 53.01% of the issued voting shares as of June 30, 2022[96]. - The company did not declare any interim dividend for the six months ended June 30, 2022[99].

Financial Performance - Total revenue for the year ended December 31, 2021, was RMB 3,255,446 thousand, representing a 114.6% increase from RMB 1,517,227 thousand in 2020[11] - Gross profit for the same period was RMB 1,226,108 thousand, up 92.0% from RMB 638,548 thousand in 2020[11] - Net profit for the year was RMB 684,317 thousand, reflecting a 111.4% increase compared to RMB 323,689 thousand in 2020[11] - The company achieved a basic and diluted earnings per share of RMB 33, up 73.7% from RMB 19 in 2020[11] - For the fiscal year ending December 31, 2021, the company achieved a revenue of RMB 3,255.4 million, representing a significant year-on-year increase of 114.6%[21] - The net profit for the same period was RMB 684.3 million, reflecting a year-on-year growth of 111.4%[22] - The group achieved a 189.9% year-on-year increase in residential property and commercial operation revenue, reaching RMB 1,318.9 million by December 31, 2021[30] - Revenue from residential property management services amounted to RMB 1,936.6 million, accounting for 59.5% of total revenue, while non-residential property management and commercial operation services contributed RMB 1,318.9 million, or 40.5%[46] Assets and Liabilities - Total assets as of December 31, 2021, amounted to RMB 5,002,071 thousand, an 18.3% increase from RMB 4,228,532 thousand in 2020[11] - Total liabilities increased by 20.3% to RMB 1,486,185 thousand from RMB 1,235,057 thousand in 2020[11] - The total contracted building area reached approximately 145.9 million square meters as of December 31, 2021, a growth of 270.3% compared to the previous year[56] - The total managed building area reached 206.1 million square meters, with a remarkable year-on-year growth of 395.4%[21] Market Expansion and Strategy - The company has established a regional layout focusing on the Greater Bay Area, Yangtze River Delta, and Central and Western regions of China[9] - The company expanded its presence to 139 cities across 20 provinces, autonomous regions, and municipalities, with a contracted building area of 277.9 million square meters[22] - The proportion of third-party projects in the total managed building area increased to 88.2%, indicating enhanced market capabilities[27] - The company has made strategic acquisitions, including Guangzhou Runtong Property Management Co., Ltd. and Guangdong Teli Clean Environmental Engineering Co., Ltd., to diversify its service offerings[27] - The company plans to enhance its competitive advantage through multi-brand strategies and further market expansion following recent acquisitions[53] Customer Service and Experience - The company aims to enhance customer service experiences by focusing on creating a comprehensive ecosystem of services[19] - The group is focused on digital transformation to reshape the value chain and enhance operational capabilities, aiming for a more integrated business model[35] - The group aims to fulfill social responsibilities and enhance its reputation through quality service in the upcoming year[36] - The group is enhancing its service offerings by providing a 24/7 green and healthy living experience for office property clients[33] Corporate Governance - The board consists of 3 executive directors and 3 independent non-executive directors, with independent directors making up over one-third of the board[118] - The company held 6 board meetings and 3 shareholder meetings in the year ending December 31, 2021, with all executive directors attending 100% of board meetings[120] - The board has adopted a diversity policy, considering factors such as gender, age, and professional experience in selecting candidates[118] - The chairman and CEO roles are separated, ensuring a balance of power and accountability within the board[124] - The board is responsible for maintaining an effective risk management and internal control system to protect the group's assets and shareholders' interests[146] Risk Management - Key risks include adverse changes in government regulations, uncertainties from geopolitical events, and intense competition in the property management industry[160] - The company faces challenges related to consumer spending capacity, which may impact tenant sales and property service revenues[160] - The internal and external financing capabilities are crucial for the company's liquidity management[162] - The group has adopted a "three lines of defense" model for risk management and internal control systems, integrating risk management into core business operations[147] Shareholder Information - The proposed final dividend for the year ended December 31, 2021, is RMB 0.12 per share, an increase from RMB 0.06 per share in 2020[163] - The group had no other significant investments or acquisitions approved by the board during the year ended December 31, 2021[173] - The total number of shares held by Kong Jianan is 1,070,805,546, representing 53.09% of the issued voting shares[187] - The company has adopted a share option plan approved by shareholders on June 3, 2021, allowing for the issuance of up to 201,781,023 shares, which is 10% of the total issued shares as of the report date[198]

Financial Performance - The company's revenue for the six months ended June 30, 2021, increased by 83.1% year-on-year, reaching approximately RMB 1,228.6 million[15]. - The total revenue for the six months ended June 30, 2021, was RMB 1,228.6 million, compared to RMB 670.9 million for the same period in 2020, representing a growth of 83.0%[42]. - The net profit surged by 156.1% from approximately RMB 124.5 million in 2020 to about RMB 318.9 million in 2021[15]. - The gross profit margin improved by 5.2 percentage points to 44.2%, enhancing profitability[15]. - The company reported a basic and diluted earnings per share of RMB 16, up from RMB 8 in the previous year[136]. - The pre-tax profit for the first half of 2021 was RMB 406,624 thousand, compared to RMB 166,433 thousand in the first half of 2020, indicating a growth of around 144%[149]. - The company reported a pre-tax profit of RMB 315,198,000 for the six months ended June 30, 2021, compared to RMB 124,007,000 for the same period in 2020, reflecting a year-on-year increase of 154.0%[191]. - The company’s retained earnings increased to RMB 738,610 thousand as of June 30, 2021, compared to RMB 452,347 thousand at the end of 2020, representing a growth of about 63.3%[146]. Revenue Breakdown - Revenue from residential property management services increased by 82.3% year-on-year to approximately RMB 844.7 million, accounting for 68.8% of the total revenue[43]. - The sales revenue of shopping centers increased by 82.0% year-on-year, maintaining an occupancy rate of over 90.0% despite ongoing pandemic impacts; non-residential property management and commercial operation service revenue grew by 84.9% to approximately RMB 383.9 million[22]. - The company’s non-residential property management and commercial operation services generated a total revenue of RMB 383.9 million, accounting for 31.2% of total revenue[42]. - Revenue from community value-added services reached RMB 322.3 million, representing 26.2% of total revenue, up from 16.5% in the previous year[42]. - Community value-added services generated revenue of approximately RMB 322.3 million, reflecting a year-on-year growth of 191.7%[54]. Growth and Expansion - The contracted area increased by 315.2% to approximately 221.7 million square meters as of June 30, 2021[15]. - The managed area grew by 296.9% to approximately 165.1 million square meters during the same period[15]. - The company aims to achieve high-quality growth through active mergers and acquisitions, external expansion, and light asset output strategies[12]. - The company has completed acquisitions of Guangzhou Runtong Property Management Co., Ltd., Xuesong Zhiliang Technology Group Co., Ltd., and Shanghai Shenqin Property Management Service Co., Ltd., resulting in over 80% of the managed area coming from third parties[20]. - The company announced the acquisition of 80% of Xuesong Zhihui on January 17, 2021, which was approved on July 5, 2021, significantly enhancing its managed area and brand coverage[34]. - The company also agreed to acquire 80% of Shanghai Shenqin on June 29, 2021, which will strengthen its capabilities in public building management[35]. - The company is preparing over 36 commercial projects nationwide, which are expected to be launched in the next 3 to 5 years[35]. Operational Efficiency - The company is focusing on digital transformation to enhance operational efficiency and customer experience, including the development of a digital platform for commercial asset management[26]. - The company has implemented a performance-driven incentive system that aligns the interests of core management and employees with shareholders, utilizing equity incentives and performance bonuses[29]. - The overall talent structure has been optimized, leading to improved operational and management efficiency, recognized by multiple awards for human resource innovation[30]. - Total sales costs increased by approximately RMB 276.1 million, or 67.5%, to about RMB 685.1 million, while the growth rate of sales costs was lower than the revenue growth rate due to efficiency improvements through technology[91]. Corporate Governance and Financial Position - The company has complied with the Corporate Governance Code during the reporting period[119]. - Major shareholders collectively hold 52.85% of the voting shares, with significant individual holdings disclosed[114]. - The company maintained a net cash position with no outstanding borrowings as of June 30, 2021[100]. - The total assets amounted to approximately RMB 4,354.8 million, while total liabilities were approximately RMB 1,187.0 million as of June 30, 2021[96]. - The total liabilities decreased from RMB 1,198,006 thousand at the end of 2020 to RMB 1,154,981 thousand as of June 30, 2021[141]. Strategic Focus - The strategic focus includes high-quality expansion across all business areas while leveraging market opportunities[18]. - The company is committed to fulfilling social responsibilities and enhancing service quality while seizing market opportunities for national expansion[17]. - The company aims to integrate social, cultural, and public service functions into its business model for long-term development[25]. - The company is committed to enhancing its brand moat and market independence through strategic acquisitions and operational improvements[20]. Employee and Shareholder Engagement - The company has approved a stock option plan, granting a total of 594,000 options to eligible participants as of June 30, 2021, which remain unexercised[111]. - A share award plan was approved, with a total of 1,444,000 shares awarded to 16 selected participants, including 5 related parties and 11 employees[112]. - As of June 30, 2021, the company had approximately 10,000 employees, an increase from about 9,380 employees as of December 31, 2020[126].

Company Information and Financial Calendar [Company Information](index=3&type=section&id=Company%20Information) This section provides core corporate governance structure information including the company's basic registration details, board members, committee compositions, company secretary, legal advisors, principal place of business, and share registrar - The Chairman of the Board is **Mr. Kong Jianmin** (Non-executive Director), and the CEO is **Mr. Kong Jiannan** (Executive Director)[5](index=5&type=chunk) - The chairpersons of the Audit Committee, Remuneration Committee, and Nomination Committee are all Independent Non-executive Directors, complying with corporate governance requirements[5](index=5&type=chunk) [Financial Calendar](index=3&type=section&id=Financial%20Calendar) This section lists key financial event dates for 2021, including the announcement of full-year results, the Annual General Meeting, and the final dividend payment schedule 2021 Key Financial Calendar | Event | Date | | :--- | :--- | | Full-year Results Announcement | March 22, 2021 | | Annual General Meeting | June 3, 2021 | | Final Dividend Payment | On or about August 6, 2021 | Company Profile [Company Profile](index=4&type=section&id=Company%20Profile) Kaisa Prosperity Holdings Limited, a leading integrated smart property management service operator in China listed on the Hong Kong Stock Exchange on October 30, 2020, strategically focuses its core business in the Greater Bay Area and Yangtze River Delta, serving diverse property types and leveraging technology to enhance service quality, with future plans for rapid scale growth through M&A, external expansion, and asset-light output strategies - The company was listed on the Main Board of the Hong Kong Stock Exchange on **October 30, 2020**, with stock code **3913**[7](index=7&type=chunk) - Core business regions include the Greater Bay Area, Yangtze River Delta, and Central and Western China, serving diverse property types such as residential, shopping malls, office buildings, hospitals, and schools[7](index=7&type=chunk) - The company's future growth strategies include active mergers and acquisitions, market expansion, and asset-light output, while providing diversified value-added services based on owner needs[8](index=8&type=chunk) Financial Highlights [Financial Highlights](index=5&type=section&id=Financial%20Highlights) In FY2020, the company achieved strong growth, with total revenue increasing by **34.9%** year-on-year to **RMB 1.517 billion**, gross profit growing by **52.1%**, and profit for the year significantly increasing by **75.0%**, while total assets grew by **115.5%** and total liabilities decreased by **21.1%**, primarily due to capital structure optimization from the listing, leading to a substantial **653.2%** increase in total equity FY2020 Key Financial Data (For the year ended December 31) | Indicator | 2020 (RMB thousands) | 2019 (RMB thousands) | Change | | :--- | :--- | :--- | :--- | | Revenue | 1,517,227 | 1,124,878 | 34.9% | | Gross Profit | 638,548 | 419,828 | 52.1% | | Profit for the Year | 323,689 | 184,987 | 75.0% | | Profit attributable to owners of the parent | 323,083 | 184,887 | 74.7% | | Basic earnings per share (RMB cents) | 19 | 11 | 72.7% | FY2020 Key Balance Sheet Data (As at December 31) | Indicator | 2020 (RMB thousands) | 2019 (RMB thousands) | Change | | :--- | :--- | :--- | :--- | | Total Assets | 4,228,532 | 1,962,186 | 115.5% | | Total Liabilities | 1,235,057 | 1,564,758 | -21.1% | | Total Equity | 2,993,475 | 397,428 | 653.2% | Honors and Awards [Residential Property Management Service Awards](index=6&type=section&id=Residential%20Property%20Management%20Service%20Awards) In 2020, the company received multiple authoritative industry recognitions in residential property management, including "Top 17 China Property Service Top 100 Enterprises" and "Top 10 China Property Service Top 100 Service Quality Leading Enterprises" by China Index Academy, demonstrating its leading position in service quality and market-oriented operations - Awarded **Top 17 China Property Service Top 100 Enterprises** in 2020[14](index=14&type=chunk) - Awarded **Top 10 China Property Service Top 100 Service Quality Leading Enterprises** in 2020[14](index=14&type=chunk) - Ranked **Top 9** among leading enterprises in the Greater Bay Area property service market[14](index=14&type=chunk) [Non-residential Property Management and Commercial Operation Service Awards](index=7&type=section&id=Non-residential%20Property%20Management%20and%20Commercial%20Operation%20Service%20Awards) In the non-residential and commercial operation sectors, the company also received numerous accolades, including "Top 8 China Commercial Real Estate Company Brand Value 2020" and "Top 10 China Commercial Office Operator 2020", with its projects like Chengdu Youfang and Suzhou Youfang also winning multiple awards, reflecting its excellent commercial real estate operation capabilities - Awarded **Top 8 China Commercial Real Estate Company Brand Value 2020**[19](index=19&type=chunk) - Rated **Top 10 China Commercial Office Operator 2020** by Guandian Index Academy[22](index=22&type=chunk) - Its projects, Chengdu Youfang and Suzhou Youfang, respectively won awards such as "**Top 8 China Commercial Real Estate Project Brand Value 2020**" and "**2020–2021 China Commercial Real Estate Benchmark Project**"[19](index=19&type=chunk)[22](index=22&type=chunk) Chairman's Report [Chairman's Report](index=10&type=section&id=Chairman%27s%20Report) The Chairman's report highlights that despite the challenges of the COVID-19 pandemic in 2020, the company successfully listed and achieved rapid performance growth, emphasizing four core strategies: rapid expansion of GFA under management through M&A, forming a diversified full-spectrum business layout, enhancing service efficiency and customer satisfaction through digitalization, and market recognition of commercial property management and operation services, with confidence in future development and a target of **200 million sq.m.** GFA under management in 2021 2020 Annual Performance Highlights | Indicator | Amount (RMB millions) | Year-on-year Growth | | :--- | :--- | :--- | | Revenue | 1,517.2 | 34.9% | | Gross Profit Margin | 42.1% | Increased by 4.8 percentage points | | Net Profit attributable to parent (excluding listing expenses) | 350.5 | 86.4% | - After listing, through the acquisition of Guangzhou Runtong and the agreement to acquire Xuesong Zhilian, the GFA under management is expected to reach approximately **127 million sq.m.**, nearly **double** the size at the end of 2020[29](index=29&type=chunk) - The company has set a target of **200 million sq.m.** for GFA under management in 2021, to be achieved through a dual-driven strategy of M&A and external expansion[33](index=33&type=chunk) - Through digital mid-platform and IoT technology, customer satisfaction increased to over **90%**, and gross profit margin increased to **42.1%**. Revenue from community value-added services increased by **86.6%** year-on-year to **RMB 290 million**[37](index=37&type=chunk)[38](index=38&type=chunk) - Non-residential property management and commercial operation service revenue reached **RMB 455 million**, with commercial operation revenue increasing by **126.9%** year-on-year to **RMB 96.6 million**, and the successful launch of the first third-party asset-light output project[39](index=39&type=chunk)[43](index=43&type=chunk) Management Discussion and Analysis [Business Review](index=17&type=section&id=Business%20Review) The Group's business is primarily divided into two segments: residential property management services and non-residential property management and commercial operation services, both achieving steady growth in 2020 with significant expansion in total GFA under management, notably strengthening public construction service capabilities through the acquisition of Guangzhou Runtong 2020 Revenue by Business Segment | Business Segment | 2020 Revenue (RMB thousands) | 2019 Revenue (RMB thousands) | | :--- | :--- | :--- | | Residential Property Management Services | 1,062,367 | 759,234 | | Non-residential Property Management and Commercial Operation Services | 454,860 | 365,644 | | **Total** | **1,517,227** | **1,124,878** | [Residential Property Management Services](index=19&type=section&id=Residential%20Property%20Management%20Services) In 2020, residential property management service revenue increased by **39.9%** year-on-year to **RMB 1.062 billion**, accounting for **70.0%** of total revenue, with GFA under management growing to **29.12 million sq.m.** and community value-added services showing strong potential with **86.6%** revenue growth to **RMB 290 million**, primarily driven by the Greater Bay Area and Yangtze River Delta regions Residential Property Management Service Revenue Details | Service Line | 2020 Revenue (RMB thousands) | 2019 Revenue (RMB thousands) | | :--- | :--- | :--- | | Pre-sale Management Services | 258,921 | 221,810 | | Property Management Services | 513,573 | 382,047 | | Community Value-added Services | 289,873 | 155,377 | | **Total** | **1,062,367** | **759,234** | - As of the end of 2020, residential property GFA under management reached **29.121 million sq.m.**, a year-on-year increase of **58.7%**; total contracted GFA reached **39.371 million sq.m.**[60](index=60&type=chunk) - Community value-added service revenue increased by **86.6%** year-on-year, primarily due to increased GFA under management and diversification of service types[76](index=76&type=chunk) [Non-residential Property Management and Commercial Operation Services](index=22&type=section&id=Non-residential%20Property%20Management%20and%20Commercial%20Operation%20Services) In 2020, non-residential segment revenue increased by **24.4%** year-on-year to **RMB 455 million**, with GFA under management significantly growing to **12.45 million sq.m.** mainly due to the acquisition of Guangzhou Runtong, expanding into public construction, while commercial operation service revenue grew rapidly by **126.9%** to **RMB 96.61 million**, and the company began providing asset-light output services to third-party developers Non-residential Property Management and Commercial Operation Service Revenue Details | Service Line | 2020 Revenue (RMB thousands) | 2019 Revenue (RMB thousands) | | :--- | :--- | :--- | | Pre-sale Management Services | 24,794 | 21,342 | | Property Management Services | 279,740 | 259,766 | | Commercial Operation Services | 96,606 | 42,570 | | Other Value-added Services | 53,720 | 41,966 | | **Total** | **454,860** | **365,644** | - As of the end of 2020, non-residential property GFA under management reached **12.45 million sq.m.**, a year-on-year increase of **281.1%**, including **5.40 million sq.m.** of commercial properties and **7.10 million sq.m.** of public construction[82](index=82&type=chunk)[84](index=84&type=chunk) - Through the acquisition of **80%** equity in Guangzhou Runtong, the company's capabilities in public construction services such as hospitals and schools have been strengthened[82](index=82&type=chunk) - The company has signed an asset-light output project with a third-party developer (Tangshan Cai Lifang), providing pre-opening and post-opening commercial operation and property management services[106](index=106&type=chunk) [Financial Review](index=29&type=section&id=Financial%20Review) In 2020, the company's overall financial performance was outstanding, with total revenue increasing by **34.9%** year-on-year, gross profit by **52.1%**, and gross profit margin improving from **37.3%** to **42.1%**, while cost of sales growth (**24.6%**) was lower than revenue growth, administrative expenses increased by **17.8%** due to expansion and listing fees, and the company maintained a healthy financial position with a current ratio improving from **1.11** to **3.15** and no outstanding borrowings - Cost of sales increased by **24.6%**, lower than the revenue growth rate (**34.9%**), mainly due to efficiency improvements and cost savings from technological means[129](index=129&type=chunk) - Gross profit increased by **52.1%** year-on-year to **RMB 639 million**, with gross profit margin improving by **4.8 percentage points** to **42.1%**, primarily benefiting from energy-saving and efficiency-enhancing measures[130](index=130&type=chunk) - Administrative expenses increased by **17.8%** year-on-year to **RMB 194 million**, mainly due to business expansion and **RMB 27.4 million** in listing expenses[132](index=132&type=chunk) - As of the end of 2020, the company had no outstanding borrowings, and the current ratio improved from **1.11** in 2019 to **3.15**[134](index=134&type=chunk)[141](index=141&type=chunk) Environmental, Social and Governance (ESG) Report [Employee Care and Development](index=39&type=section&id=Employee%20Care%20and%20Development) The company highly values employee growth and well-being, strictly adhering to labor laws, prohibiting child and forced labor, and has established a comprehensive health and safety management system (ISO 45001 certified) providing commercial insurance, while also setting up multi-level training programs and an online learning platform to support continuous employee development and ensure effective communication channels - The company strictly adheres to recruitment management systems, prohibiting the use of child labor and forced labor, with no violations found during the reporting period[179](index=179&type=chunk) - The company holds **ISO 45001** Occupational Health and Safety Management System certification, providing annual physical examinations and commercial accident and critical illness insurance for all employees[174](index=174&type=chunk)[180](index=180&type=chunk) - Established "New Force," "Navigator," "Elite," and "Leader" four-level talent development programs targeting new employees, middle management, trainees, and senior management[183](index=183&type=chunk)[184](index=184&type=chunk) [Customer Service and Supply Chain Management](index=43&type=section&id=Customer%20Service%20and%20Supply%20Chain%20Management) The company is committed to providing high-quality services, holding ISO 9001 quality management system certification, actively promoting intelligent management through various technological systems to enhance operational efficiency and customer experience, and has established strict supplier screening, evaluation, and management systems prioritizing environmental protection and compliance, along with pandemic response plans to ensure supply chain stability - The company holds **ISO 9001** Quality Management System and **ISO 14001** Environmental Management System certifications[195](index=195&type=chunk) - Utilizes intelligent systems such as the "Yihe" APP, ERP system, facility management system, "Vehicle Management Cloud," and "Juntian Eye" to enhance operational efficiency and customer experience[198](index=198&type=chunk)[199](index=199&type=chunk) - Established a supplier management system including qualification review, on-site inspection, annual evaluation, and a blacklist to ensure supply chain sustainability and compliance[212](index=212&type=chunk)[213](index=213&type=chunk)[214](index=214&type=chunk) [Anti-Corruption and Integrity Building](index=50&type=section&id=Anti-Corruption%20and%20Integrity%20Building) The company maintains a zero-tolerance stance on corruption, formulating internal policies like the "Supervision and Management System" and "Employee Conflict of Interest Management Regulations," establishing multiple reporting channels, and regularly conducting integrity education training to strengthen employees' awareness of integrity and self-discipline, with no corruption incidents or related lawsuits found during the reporting period - The company has zero tolerance for corruption, bribery, money laundering, and other acts, and has established a comprehensive internal supervision and reporting mechanism[223](index=223&type=chunk)[224](index=224&type=chunk) - A total of **8** anti-corruption training sessions were arranged this year, covering approximately **335** participants[225](index=225&type=chunk) [Environmental Protection and Climate Change Response](index=50&type=section&id=Environmental%20Protection%20and%20Climate%20Change%20Response) The company is committed to reducing its environmental impact through waste sorting and paperless office practices, implementing various measures to conserve electricity and water resources, and has begun assessing climate change risks while deploying strategies for extreme weather events and supply chain stability - The company has standardized treatment processes for kitchen fumes, wastewater, solid waste, and hazardous waste, and encourages paperless office practices[228](index=228&type=chunk)[232](index=232&type=chunk) - Implemented multiple energy and water saving measures, such as using LED lights, controlling air conditioning temperatures, installing water-saving fixtures, and utilizing rainwater harvesting systems for landscaping irrigation[234](index=234&type=chunk)[236](index=236&type=chunk)[240](index=240&type=chunk) 2020 Key Environmental Performance Indicators | Indicator | Unit | 2020 | | :--- | :--- | :--- | | Total Greenhouse Gas Emissions | tons | 18,414.00 | | Total Hazardous Waste | tons | 0.15 | | Total Non-hazardous Waste | tons | 62.25 | | Total Energy Consumption | thousand kWh | 81,601.00 | | Total Water Consumption | cubic meters | 396,166.00 | [Community Contribution and Public Welfare Activities](index=55&type=section&id=Community%20Contribution%20and%20Public%20Welfare%20Activities) The company actively fulfills its social responsibilities, especially during the 2020 COVID-19 pandemic, by rapidly formulating epidemic prevention plans to ensure resident safety and daily necessities supply, utilizing technological means for smart epidemic control, and actively engaging in community welfare through various activities including caring for the elderly and children, environmental protection, poverty alleviation, and education support, with its "Yijia Chuangsheng Volunteer Service Team" providing continuous convenient services - During the pandemic, ensured residents' material supply through community group purchases and online platforms, serving over **70,000** times throughout the year, benefiting over **20,000** households[249](index=249&type=chunk) - Utilized technological means such as drone patrols, robot meal delivery, and smart access control for epidemic prevention, with approximately **93.6 million** temperature checks at gates and **37,000** park disinfections throughout the year[249](index=249&type=chunk) - Actively carried out community welfare activities, including caring for autistic children and lonely elderly, participating in "Earth Hour" environmental activities, and establishing a volunteer service team for poverty alleviation, education support, and convenient community services[262](index=262&type=chunk)[263](index=263&type=chunk)[265](index=265&type=chunk)[266](index=266&type=chunk) Corporate Governance Report [Board and Committees](index=70&type=section&id=Board%20and%20Committees) The company is committed to high standards of corporate governance, with a **7-member** Board of Directors comprising **3** executive, **1** non-executive, and **3** independent non-executive directors, complying with listing rules, where the Chairman and CEO roles are separated, and the Board's Remuneration, Nomination, and Audit committees meet independence requirements to oversee specific matters - The company has adopted and complied with the code provisions of the HKEX Corporate Governance Code from its listing date to the end of 2020[311](index=311&type=chunk) - The Board of Directors consists of **7** members, of whom **3** are independent non-executive directors, exceeding one-third, complying with listing rule requirements[314](index=314&type=chunk)[319](index=319&type=chunk) - The roles of Chairman (**Mr. Kong Jianmin**) and CEO (**Mr. Kong Jiannan**) are clearly separated, ensuring a balance of power[326](index=326&type=chunk) [Risk Management and Internal Control](index=75&type=section&id=Risk%20Management%20and%20Internal%20Control) The Board is responsible for maintaining a sound and effective risk management and internal control system, adopting a "three lines of defense" model where operational units manage daily risks, functional departments provide support for cross-domain risks, and the risk control center conducts independent evaluations and monitoring, with the Board having reviewed and deemed the system fully effective as of the end of 2020 - The company adopts a "**three lines of defense**" model as the basic framework for its risk management and internal control system[348](index=348&type=chunk) - The Board has reviewed and assessed the risk management and internal control system for the year ended December 31, 2020, and considers it to be adequate and effective[352](index=352&type=chunk) Directors' Report [Business Review, Risks and Dividends](index=78&type=section&id=Business%20Review%2C%20Risks%20and%20Dividends) This report reviews the principal business activities in 2020, confirming the company's main business as investment holding with subsidiaries engaged in property management and commercial operations, outlining major risks such as government regulation, macroeconomic conditions, and industry competition, and recommending a final dividend of **RMB 6 cents** per share for the year ended December 31, 2020 - The Board recommends a final dividend of **RMB 6 cents** per share for the year ended December 31, 2020[368](index=368&type=chunk) - The report lists major risks faced by the company, including policy changes, macroeconomic uncertainties, intense industry competition, and talent shortage[366](index=366&type=chunk)[367](index=367&type=chunk) [Significant Acquisitions and Post-Reporting Period Events](index=79&type=section&id=Significant%20Acquisitions%20and%20Post-Reporting%20Period%20Events) During the reporting period, the Group acquired **80%** equity in Guangzhou Runtong, a property management company, for **RMB 214.4 million** in cash, completed in December 2020, and subsequent to the reporting period, the company entered into an agreement in January 2021 to acquire **80%** equity in Xuesong Zhilian for **RMB 1.316 billion**, expected to increase GFA under management to **127 million sq.m.** - In December 2020, the Group acquired **80%** equity in Guangzhou Runtong for **RMB 214.4 million** in cash, with the seller committing to revenue and net profit for the next three years[371](index=371&type=chunk) - Post-reporting period event: On **January 17, 2021**, the company entered into an agreement to acquire **80%** equity in Xuesong Zhilian for **RMB 1.316 billion**, which is expected to increase GFA under management to **127 million sq.m.**[420](index=420&type=chunk) [Major Customers, Suppliers and Use of Listing Proceeds](index=80&type=section&id=Major%20Customers%2C%20Suppliers%20and%20Use%20of%20Listing%20Proceeds) In 2020, transactions with the Group's largest customer (Hopson Development Holdings Limited and its associates) accounted for **49.9%** of total revenue, while purchases from the top five suppliers accounted for **8.0%** of total purchases, indicating low concentration, and the company's October 2020 listing raised net proceeds of approximately **RMB 2.526 billion**, primarily for strategic acquisitions and investments, upgrading smart service systems, and diversifying value-added services - The largest customer was Hopson Development Holdings Limited and its associates, accounting for **49.9%** of total revenue in 2020[382](index=382&type=chunk) - The top five suppliers accounted for **8.0%** of total purchases, with the single largest supplier accounting for **2.5%**, indicating low supplier concentration[382](index=382&type=chunk) Use of Net Proceeds from Listing (As at December 31, 2020) | Intended Use | Percentage | Net Proceeds (RMB thousands) | Amount Utilized (RMB thousands) | | :--- | :--- | :--- | :--- | | Strategic acquisitions and investments | 60.0% | 1,515,800 | 80,000 | | Upgrading smart service systems | 25.0% | 631,600 | — | | Diversified value-added services | 10.0% | 252,600 | — | | General corporate purposes | 5.0% | 126,300 | — | | **Total** | **100.0%** | **2,526,300** | **80,000** | Biographies of Directors and Senior Management [Biographies of Directors and Senior Management](index=89&type=section&id=Biographies%20of%20Directors%20and%20Senior%20Management) This section provides detailed personal biographies of the company's executive directors, non-executive directors, independent non-executive directors, and senior management members, including their age, position, responsibilities, industry experience, educational background, and appointments in other companies - **Mr. Kong Jiannan**, Executive Director and CEO, has over **20 years** of experience in the real estate industry, responsible for the Group's overall management and operations[429](index=429&type=chunk) - **Mr. Kong Jianmin**, Non-executive Director and Chairman of the Board, is the founder of Hopson Development Holdings Limited, with over **25 years** of experience in property development and investment[439](index=439&type=chunk) - **Ms. Liu Xiaolan**, **Mr. Feng Zhiwei**, and **Ms. Wu Qiqin**, Independent Non-executive Directors, all possess extensive experience in real estate, accounting and finance, and corporate governance[444](index=444&type=chunk)[451](index=451&type=chunk)[457](index=457&type=chunk) Independent Auditor's Report [Independent Auditor's Report](index=96&type=section&id=Independent%20Auditor%27s%20Report) Ernst & Young, the auditor, issued an unqualified opinion on the company's consolidated financial statements for the year 2020, stating that the statements fairly and truly reflect the Group's financial position and performance and have been properly prepared in accordance with relevant accounting standards and regulations, specifically highlighting two key audit matters: impairment assessment of goodwill and other intangible assets, and impairment assessment of trade receivables - Auditor Ernst & Young issued an **unqualified opinion** on the consolidated financial statements for the year ended December 31, 2020[473](index=473&type=chunk) - Key audit matters include: * Impairment assessment of goodwill and other intangible assets[475](index=475&type=chunk)[478](index=478&type=chunk) * Impairment assessment of trade receivables[483](index=483&type=chunk) Consolidated Financial Statements [Consolidated Statement of Profit or Loss](index=102&type=section&id=Consolidated%20Statement%20of%20Profit%20or%20Loss) For the year 2020, the Group's revenue was **RMB 1.517 billion**, gross profit was **RMB 639 million**, profit for the year was **RMB 324 million** after expenses and taxes, with **RMB 323 million** attributable to owners of the parent, and basic and diluted earnings per share were **RMB 19 cents** 2020 Consolidated Statement of Profit or Loss Summary | Item | Amount (RMB thousands) | | :--- | :--- | | Revenue | 1,517,227 | | Gross Profit | 638,548 | | Profit before tax | 445,626 | | Profit for the year | 323,689 | | Profit attributable to owners of the parent | 323,083 | [Consolidated Statement of Financial Position](index=104&type=section&id=Consolidated%20Statement%20of%20Financial%20Position) As of December 31, 2020, the Group's total assets were **RMB 4.229 billion**, total liabilities were **RMB 1.235 billion**, and net assets were **RMB 2.993 billion**, with non-current assets at **RMB 456 million**, current assets at **RMB 3.772 billion**, and cash and cash equivalents reaching **RMB 2.960 billion**, demonstrating healthy liquidity and a robust capital structure 2020 Consolidated Statement of Financial Position Summary | Item | Amount (RMB thousands) | | :--- | :--- | | **Assets** | | | Total Non-current Assets | 456,113 | | Total Current Assets | 3,772,419 | | **Total Assets** | **4,228,532** | | **Liabilities and Equity** | | | Total Current Liabilities | 1,198,006 | | Total Non-current Liabilities | 37,051 | | **Total Liabilities** | **1,235,057** | | **Total Equity** | **2,993,475** | [Consolidated Statement of Cash Flows](index=108&type=section&id=Consolidated%20Statement%20of%20Cash%20Flows) For the year 2020, net cash generated from operating activities was **RMB 274 million**, net cash used in investing activities was an outflow of **RMB 142 million** primarily for subsidiary acquisitions, and net cash generated from financing activities was an inflow of **RMB 2.485 billion** mainly from share issuance proceeds, resulting in a significant increase in year-end cash and cash equivalents to **RMB 2.960 billion** 2020 Consolidated Statement of Cash Flows Summary | Item | Amount (RMB thousands) | | :--- | :--- | | Net cash generated from operating activities | 273,549 | | Net cash used in investing activities | (142,417) | | Net cash generated from financing activities | 2,485,376 | | Net increase in cash and cash equivalents | 2,616,508 | | Cash and cash equivalents at end of year | 2,959,619 | Four-Year Financial Summary [Four-Year Financial Summary](index=181&type=section&id=Four-Year%20Financial%20Summary) This section provides a summary of the Group's key performance and financial position data for the four fiscal years from 2017 to 2020, showing consistent high growth in revenue, gross profit, and profit for the year, along with significant expansion in asset scale and total equity, reflecting the company's strong development momentum 2017-2020 Performance Trends (RMB thousands) | Indicator | 2020 | 2019 | 2018 | 2017 | | :--- | :--- | :--- | :--- | :--- | | Revenue | 1,517,227 | 1,124,878 | 659,136 | 463,381 | | Gross Profit | 638,548 | 419,828 | 182,961 | 104,270 | | Profit for the Year | 323,689 | 184,987 | 79,682 | 44,148 | 2017-2020 Assets, Liabilities and Equity Trends (RMB thousands) | Indicator | 2020 | 2019 | 2018 | 2017 | | :--- | :--- | :--- | :--- | :--- | | Total Assets | 4,228,532 | 1,962,186 | 1,216,350 | 1,197,802 | | Total Liabilities | 1,235,057 | 1,564,758 | 1,016,531 | 1,077,665 | | Total Equity | 2,993,475 | 397,428 | 199,819 | 120,137 |