Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company reported a revenue of 15.06 billion yuan for 2023, representing a year-on-year growth of 10.0%, and a net profit attributable to shareholders of 1.38 billion yuan, which is a 24.0% increase compared to the previous year, slightly exceeding market expectations [3] - Revenue growth is steady, with a recovery in gross margin. The property management service revenue reached 10.15 billion yuan, up 20.5% year-on-year, accounting for 67.4% of total revenue. Non-owner value-added service revenue decreased by 4.6% to 2.09 billion yuan, while community value-added service revenue fell by 8.1% to 2.82 billion yuan, mainly due to the company's strategic adjustments [3] - The company has a clear external expansion strategy, focusing on third-party projects and deepening its presence in key cities. The contracted area in 2023 was 920 million square meters, an increase of 150 million square meters from 2022, with a new contract amount of 2.97 billion yuan, up 7.4% year-on-year [3] - The company is reducing the influence of related parties and moving towards sustainable internal development. By the end of 2023, third-party projects accounted for 64.7% of the managed area, an increase of 3.4 percentage points from 2022 [3] - Cash flow has significantly improved, with operating net cash flow reaching 2.42 billion yuan, a 63.9% increase year-on-year, and a dividend payout ratio of 40%, up 15 percentage points from 2022 [3] - The profit forecast for 2024-2025 has been adjusted to 1.67 billion yuan and 2.01 billion yuan respectively, with an expected net profit of 2.37 billion yuan in 2026. The corresponding EPS is projected to be 3.02, 3.64, and 4.28 yuan, with P/E ratios of 11.7X, 9.7X, and 8.2X [3] Financial Summary - Total revenue for 2023 was 15,061 million yuan, with a year-on-year growth of 10.05% [2] - Net profit attributable to shareholders for 2023 was 1,380 million yuan, reflecting a year-on-year increase of 24.01% [2] - The company’s gross margin for 2023 improved to 19.6%, up 0.8 percentage points from 2022 [3] - The operating cash flow for 2023 was 2,419.76 million yuan, indicating a strong cash position [10] - The company’s total assets for 2023 were 14,877.26 million yuan, with a debt-to-equity ratio of 40.33% [10]

证券研究报告 | 2024年03月27日 保利物业（06049.HK） 买入 业绩稳健增长，分红比例提升 核心观点 公司研究·海外公司财报点评 归母净利同增24%，盈利能力稳中有升。2023年公司实现营业收入150.6 房地产·房地产服务 亿元，同比增长10.0%；实现归母净利润13.8亿元，同比增长24.0%。分业 证券分析师：任鹤 证券分析师：王粤雷 务板块看，公司物业管理服务收入101.5亿元，同比增长20.5%；社区增值 010-88005315 0755-81981019 renhe@guosen.com.cn wangyuelei@guosen.com.cn 服务收入28.2亿元，同比下降8.1%；非业主增值服务收入20.9亿元，同比 S0980520040006 S0980520030001 下降4.6%。2023年公司整体毛利率为19.6%，同比增长0.8pct，盈利能力 证券分析师：王静 稳中有升；净利率为9.3%，同比增长1pct。公司分红比例稳步提高，2023 021-60893314 wangjing20@guosen.com.cn 年分红比例增长15pct至40%。 S0980522 ...

Investment Rating - Maintain "Buy" rating for Poly Property Services (06049 HK) [2][3] Core Views - Poly Property Services achieved steady growth in 2023 with significant improvement in dividend payout ratio [2] - Revenue reached RMB 15 06 billion (+10 0% YoY) - Gross profit was RMB 2 95 billion (+14 7% YoY) - Net profit attributable to shareholders was RMB 1 38 billion (+24 0% YoY) - Dividend per share increased 98 4% YoY to RMB 0 998 with payout ratio reaching 40% (+15pct YoY) - The company demonstrated strong growth in managed area and third-party contracts [2] - Managed area reached 720 million sqm (+24 9% YoY) - Contracted area reached 920 million sqm (+19 5% YoY) - New third-party contract value increased 61% YoY to RMB 2 77 billion - Property management service revenue maintained steady growth while value-added service gross margin continued to improve [3] - Property management service revenue reached RMB 10 15 billion (+20 5% YoY) - Community value-added service gross margin improved 6 4pct YoY to 38 4% Financial Performance - Key financial metrics for 2023 [2] - Gross margin: 19 6% (+0 8pct YoY) - Net margin: 9 3% (+1 0pct YoY) - ROE: 16 9% (+1 5pct YoY) - Administrative expenses ratio: 8 1% (-0 7pct YoY) - Financial projections [4] - 2024E revenue: RMB 16 83 billion (+11 7% YoY) - 2024E net profit: RMB 1 60 billion (+16 1% YoY) - 2024E EPS: RMB 2 90 - 2024E PE: 7 8x (vs industry average of 11 1x) Business Development - Diversified property portfolio with strong non-residential exposure [2] - Residential: 40% of managed area - Public services: 56% of managed area - Commercial: 4% of managed area - Non-residential properties accounted for 60% of managed area - Steady improvement in property management fees [2] - Average residential property fee increased to RMB 2 31/sqm/month (+RMB 0 03 YoY) - Third-party property fee increased to RMB 1 82/sqm/month (+RMB 0 02 YoY) Industry Comparison - Poly Property Services shows superior growth compared to peers [6] - 2023 net profit growth: 24 0% (vs industry average of 20 2%) - 2024E net profit growth: 16 2% (vs industry average of 22 2%) - 2024E PE: 7 8x (vs industry average of 11 1x)

Investment Rating - The investment rating for Poly Property (6049.HK) is "Recommended" [2][7] Core Views - The company reported a revenue of 15.062 billion yuan in 2023, representing a year-on-year growth of 10%, and a net profit of 1.38 billion yuan, which is a 24% increase compared to the previous year [4][5] - The company plans to distribute a final dividend of 0.998 yuan per share (before tax) [4] - The management efficiency has improved, with a decrease in management expense ratio by 0.7 percentage points, leading to an increase in gross margin and net margin by 0.8 percentage points and 1 percentage point, respectively [5] - The company has a strong market position, with its total contracted area and managed area reaching 920 million square meters and 720 million square meters, respectively, both showing significant growth [5] Financial Summary - In 2023, the company's gross margin was 19.6%, and the net margin was 9.3%, with both margins showing an upward trend [6][9] - The earnings per share (EPS) for 2023 was 2.49 yuan, with forecasts for 2024, 2025, and 2026 being 2.91 yuan, 3.29 yuan, and 3.68 yuan, respectively [6][7] - The price-to-earnings (P/E) ratio is projected to be 7.8 times for 2024, 6.9 times for 2025, and 6.1 times for 2026 [6][7] Business Development - The company is focusing on enhancing its value-added services and has seen a 27.6% increase in revenue from third-party property management services, which now accounts for 41.1% of total revenue [5] - The company is actively optimizing its service offerings by exiting low-margin projects and enhancing its core product capabilities [5] - The company has increased its dividend payout ratio to 40%, up by 15 percentage points from the previous year, reflecting its commitment to returning value to shareholders [5]

Financial Performance - For the year ended December 31, 2023, the company reported revenue of RMB 15,061.9 million, an increase of 10.0% compared to RMB 13,686.7 million in 2022[2]. - Gross profit for the year was RMB 2,953.1 million, up 14.7% from RMB 2,573.8 million in the previous year, with a gross margin of 19.61%, an increase of 0.80 percentage points[3]. - Net profit for the year reached RMB 1,397.2 million, representing a 23.3% increase from RMB 1,133.3 million in 2022, with a net profit margin of 9.3%, up 1.0 percentage points[3]. - Profit attributable to owners of the company was RMB 1,380.1 million, a 24.0% increase from RMB 1,112.9 million in the prior year[3]. - Basic earnings per share increased to RMB 2.505, up 24.4% from RMB 2.014 in 2022[3]. - The total comprehensive income for the year was RMB 1,398.3 million, compared to RMB 1,133.3 million in 2022[7]. - Total revenue for the year ended December 31, 2023, was RMB 15,061,858 thousand, an increase of 10% from RMB 13,686,662 thousand in 2022[18]. - The company's profit attributable to shareholders for the year ended December 31, 2023, was RMB 1,380,140,000, an increase from RMB 1,112,933,000 in 2022, representing a growth of approximately 24.0%[27]. - The company's net profit for the year was approximately RMB 1,397.2 million, representing a 23.3% increase from RMB 1,133.3 million in 2022[81]. Cash Flow and Assets - Cash and cash equivalents as of December 31, 2023, were RMB 11,011.5 million, a 22.9% increase from RMB 8,956.3 million in 2022[3]. - Net cash generated from operating activities was RMB 2,415.9 million, reflecting a significant increase of 63.9% compared to RMB 1,474.3 million in the previous year[3]. - The company's total assets less current liabilities amounted to RMB 8,955.9 million, up from RMB 7,924.5 million in the previous year[9]. - Current assets as of December 31, 2023, were approximately RMB 14,228.1 million, an increase of about 17.3% from RMB 12,132.9 million in 2022[82]. - Trade receivables increased to approximately RMB 2,340.6 million, up about RMB 77.4 million from RMB 2,263.2 million in 2022, driven by an expansion in managed area and project numbers[86]. Revenue Breakdown - Revenue from property management services increased by 20.5% to approximately RMB 10,152.2 million, while non-owner value-added services and community value-added services saw declines of 4.6% and 8.1%, respectively[3]. - Property management services generated revenue of RMB 10,152,181 thousand, up 20% from RMB 8,428,388 thousand in the previous year[18]. - Non-owner value-added services revenue was RMB 1,705,115 thousand, slightly down from RMB 1,787,099 thousand in 2022[18]. - Community value-added services revenue decreased to RMB 2,816,361 thousand from RMB 3,063,633 thousand in 2022, reflecting a decline of approximately 8%[18]. - Revenue from residential communities was approximately RMB 5,923.8 million, a year-on-year increase of about 16.5%[60]. - Revenue from commercial and office properties was approximately RMB 1,610.0 million, a year-on-year increase of about 25.8%[61]. - Revenue from public and other properties was approximately RMB 2,618.4 million, a year-on-year increase of about 27.0%, accounting for approximately 25.8% of total property management service revenue[62]. - Revenue from non-owner value-added services was approximately RMB 2,093.3 million, a year-on-year decrease of about 4.6% due to a decline in the number of projects for property sales services[65]. Employee and Cost Management - Total employee costs decreased to RMB 4,352,468,000 in 2023 from RMB 4,677,113,000 in 2022, reflecting a reduction of about 6.9%[23]. - The company had no significant investments, acquisitions, or disposals during the year ended December 31, 2023, and no special plans for major investments or acquisitions[90]. - As of December 31, 2023, the total employee cost was approximately RMB 4,352.5 million, with 33,902 employees, down from 43,433 employees as of December 31, 2022[94]. Dividends and Shareholder Returns - The company declared a total dividend of RMB 552,226,733 for the year 2023, compared to RMB 278,326,700 for 2022, indicating an increase of approximately 98.0%[26]. - A proposed annual dividend of RMB 0.998 per share has been recommended, with a payout ratio of approximately 40%, subject to shareholder approval at the annual general meeting on May 27, 2024[96]. Strategic Initiatives and Market Position - The company emphasizes the importance of quality and operational capabilities in the property management industry, showcasing strong cash flow and resilience in a challenging market environment[42]. - The company focused on deepening its presence in 50 core cities, with these cities accounting for approximately 72.8% of the new signed project contract amount, an increase of about 8.5 percentage points year-on-year[43]. - The company launched the "Star Shield Model" in the state-owned commercial office sector, enhancing key service capabilities in energy management, asset management, and integrated facility management[45]. - The company established the I-TRUST customer experience evaluation system, which aims to improve service quality and customer satisfaction, ranking second in the national property service strength list[46]. - The company is committed to optimizing service quality and enhancing customer experience, focusing on understanding customer needs and improving service responsiveness[46]. - The company is exploring new professional, efficient, and green service capabilities to drive high-quality development in the property management industry[48]. - The company aims to innovate service models and optimize service processes to provide more precise and effective services to customers[48]. - The company plans to deepen its market presence in 50 core cities with a tailored market expansion strategy, focusing on high-potential economic areas[69]. Compliance and Governance - The company has adopted the Corporate Governance Code and has complied with all applicable code provisions as of December 31, 2023[102]. - The audit committee has reviewed the audited consolidated financial statements for the year ended December 31, 2023, ensuring compliance with accounting principles and internal controls[100].

Financial Performance - The company's revenue for the six months ended June 30, 2023, was RMB 7,141.2 million, an increase of approximately 10.7% compared to RMB 6,449.4 million for the same period in 2022[10]. - Gross profit for the same period was RMB 1,511.5 million, with a gross margin of 21.17%, up from 20.23% in 2022[10]. - Net profit attributable to shareholders was RMB 763.5 million, representing a net margin of 10.9%, compared to 9.9% in the previous year[10]. - The total revenue for the six months ended June 30, 2023, was RMB 4,818.1 million, compared to RMB 3,954.9 million for the same period in 2022[25]. - The net profit for the period was approximately RMB 776.8 million, a 22.2% increase from RMB 635.5 million in 2022, with a net profit margin of 10.9%, up by 1.0 percentage point[46]. - The company reported a total comprehensive income of RMB 777,954 thousand for the period, compared to RMB 633,533 thousand in 2022, an increase of 22.8%[80]. - Basic and diluted earnings per share for the period were RMB 1.38, compared to RMB 1.14 in the same period last year, an increase of 21.1%[80]. Revenue Breakdown - Revenue from property management services accounted for approximately 67.5% of total revenue, amounting to RMB 4,818.1 million, a year-on-year increase of about 21.8%[19]. - Revenue from commercial and office properties reached RMB 757.9 million, a year-on-year increase of approximately 25.4%[26]. - Revenue from public and other properties was RMB 1,224.3 million, growing approximately 30.9% year-on-year, accounting for about 25.4% of total property management service revenue[26]. - Revenue from non-owner value-added services was approximately RMB 1,050.6 million, a decrease of about 3.8% compared to RMB 1,092.2 million in the same period of 2022, primarily due to a decline in the number of projects for agency services[30]. - Community value-added services generated revenue of approximately RMB 1,272.5 million, with community asset operation services increasing by 4.5% year-on-year to RMB 397.1 million, while community life services decreased by 14.4% to RMB 875.4 million[32]. Assets and Liabilities - The total assets as of June 30, 2023, were RMB 14,626.4 million, compared to RMB 13,109.5 million at the end of 2022[11]. - The company's cash and cash equivalents decreased to RMB 6,895.9 million from RMB 8,956.3 million at the end of 2022[11]. - Trade receivables increased to approximately RMB 2,961.5 million as of June 30, 2023, from RMB 2,263.2 million at the end of 2022, primarily due to the expansion of managed area and project numbers[51]. - Total liabilities increased to RMB 6,222,461 thousand from RMB 5,185,062 thousand, indicating a rise of approximately 20.0%[82]. - The company's net asset value as of June 30, 2023, was RMB 8,328,553 thousand, up from RMB 7,844,829 thousand, representing an increase of about 6.2%[82]. Strategic Initiatives - The company is actively promoting a "big property" strategy, expanding its management services across residential, commercial, and public properties[18]. - The group focused on 48 key cities for expansion, with new contracts in these areas accounting for about 80.8% of the total[24]. - The company aims to enhance market share and service capabilities by focusing on high-quality development and operational efficiency in response to economic fluctuations[33]. - Continuous management innovation will focus on cost management, talent organization, and digital application to support sustainable development[37]. - The company plans to upgrade community value-added services by optimizing product design and enhancing customer service experiences[35]. Shareholder Information - As of June 30, 2023, the total number of issued shares of the company is 553,333,400, with 400,000,000 domestic shares and 153,333,400 H shares[70]. - Major shareholders include China Poly Group Corporation, holding 400,000,000 shares, representing 72.29% of the total issued shares[73]. - The company declared dividends amounting to RMB 168,767 thousand during the period[85]. - The company does not recommend the distribution of an interim dividend for the six months ended June 30, 2023[63]. Governance and Compliance - The group has adopted the Corporate Governance Code and complied with all applicable provisions during the reporting period[64]. - The company aims to enhance governance structure and establish a mechanism for shared interests and risk-sharing among employees, shareholders, and the company[68]. - The company has adopted the Restricted Stock Incentive Plan, which is effective for ten years, approved on February 18, 2022[68].

Financial Performance - For the six months ended June 30, 2023, the company reported revenue of RMB 7,141.2 million, an increase of 10.7% compared to RMB 6,449.4 million in the same period of 2022[2]. - Gross profit for the period was RMB 1,511.5 million, up 15.8% from RMB 1,304.9 million in the previous year, with a gross margin of 21.17%, an increase of 0.94 percentage points[3]. - The profit for the period was RMB 776.8 million, representing a 22.2% increase from RMB 635.5 million in the same period last year, with a net profit margin of 10.9%, up by 1.0 percentage points[3]. - The profit attributable to owners of the company was RMB 763.5 million, an increase of 21.5% from RMB 628.3 million in the previous year[3]. - Basic earnings per share were RMB 1.383, up 21.7% from RMB 1.136 in the same period of 2022[3]. - Total comprehensive income for the period was RMB 777.9 million, compared to RMB 633.5 million in the previous year[7]. - The company recorded a pre-tax profit of RMB 1,033.2 million, compared to RMB 856.6 million in the same period of 2022[5]. Revenue Breakdown - The property management services revenue increased by approximately 21.8% to RMB 4,818.1 million, while non-owner value-added services revenue decreased by 3.8% to RMB 1,050.6 million, and community value-added services revenue decreased by 9.3% to RMB 1,272.5 million[3]. - Revenue from property management services reached RMB 4,818,132 thousand, up from RMB 3,954,900 thousand in the previous year, indicating a growth of about 22%[18]. - Non-owner value-added services generated revenue of RMB 852,603 thousand, slightly down from RMB 892,129 thousand, reflecting a decrease of approximately 4.4%[18]. - Community value-added services revenue was RMB 1,272,451 thousand, compared to RMB 1,402,296 thousand in the prior year, showing a decline of around 9.2%[18]. - The group’s revenue from non-owner value-added services for the six months ended June 30, 2023, was approximately RMB 1,050.6 million, a decrease of about 3.8% compared to the same period in 2022, primarily due to a reduction in the number of projects for venue co-marketing services[55]. Assets and Liabilities - As of June 30, 2023, the company had cash and cash equivalents of RMB 6,895.9 million, an increase of 32.0% from RMB 5,223.9 million in the previous year[3]. - The company's total assets less current liabilities amounted to RMB 8,403.9 million, compared to RMB 7,924.5 million as of December 31, 2022[9]. - The company's total equity increased to RMB 8,328,553 thousand as of June 30, 2023, compared to RMB 7,844,829 thousand at the end of 2022, marking an increase of approximately 6.2%[10]. - The company's trade receivables amounted to RMB 2,961,538,000, an increase from RMB 2,263,249,000 as of December 31, 2022, representing a growth of approximately 31%[32]. - Trade payables to third parties increased to RMB 1,837,170 thousand as of June 30, 2023, up from RMB 1,466,941 thousand as of December 31, 2022, indicating a rise of about 25%[36]. Operational Efficiency - The total cost of goods sold for the six months ended June 30, 2023, was RMB 2,285,446,000, a decrease from RMB 2,354,082,000 in the same period of 2022, showing a reduction of about 2.9%[23]. - The company’s total employee costs, including directors' remuneration, were RMB 1,950,404,000 for the six months ended June 30, 2023, down from RMB 2,030,356,000 in the same period of 2022, a decrease of about 3.9%[23]. - The service costs for the same period were approximately RMB 5,629.7 million, an increase of about 9.4% from RMB 5,144.6 million in 2022, primarily due to the expansion in managed area and the increase in the number of projects[64]. - The company plans to continue its management innovation and lean operations to support sustainable development, focusing on cost management and digital applications[62]. Strategic Focus and Market Expansion - The company plans to continue expanding its property management and value-added services in China, leveraging its established market presence[16]. - The group aims to enhance market penetration and quality by focusing on "big property" strategies, leveraging existing scale advantages and diverse business experiences[59]. - The company secured 33 projects with annual contract amounts exceeding RMB 10 million, representing about 47.3% of new signed contracts during the period[48]. - The company signed new annual contracts amounting to approximately 80.8% in key cities, focusing on 48 targeted cities to enhance project density and optimize regional scale effects[47]. Corporate Governance and Incentives - The company has adopted the Corporate Governance Code and complied with all applicable provisions during the six months ended June 30, 2023[87]. - The company has adopted a restricted stock incentive plan approved on February 18, 2022, with a validity period of ten years[89]. - The incentive plan aims to improve corporate governance and establish a shared interest mechanism among employees, shareholders, and the company[89]. - The board of directors includes both executive and non-executive members, ensuring diverse governance[91].

Financial Performance - The total revenue for the year ended December 31, 2022, was RMB 13,686.7 million, representing a 27.0% increase from RMB 10,782.5 million in 2021[7] - The gross profit for 2022 was RMB 2,573.8 million, with a gross margin of 18.81%, slightly up from 18.68% in 2021[7] - Net profit attributable to shareholders for the year was RMB 1,112.9 million, an increase of 31.6% compared to RMB 845.7 million in 2021[7] - The total equity as of December 31, 2022, was RMB 7,844.8 million, an increase from RMB 6,888.8 million in 2021[8] - The company achieved a revenue of approximately RMB 13,686.7 million for the year ended December 31, 2022, representing an increase of about 26.9% compared to the same period in 2021[18] - Gross profit for the year was approximately RMB 2,573.8 million, an increase of about 27.8% year-on-year[18] - Net profit for the year was approximately RMB 1,133.3 million, reflecting a growth of about 30.1% compared to 2021[18] - The profit attributable to the company's owners was approximately RMB 1,112.9 million, marking a year-on-year increase of about 31.6%[18] Assets and Liabilities - The total assets as of December 31, 2022, amounted to RMB 13,109.5 million, up from RMB 11,137.9 million in 2021[8] - The company maintained a strong financial position with current assets of approximately RMB 12,132.9 million, a growth of about 21.4% from RMB 9,990.6 million in 2021[61] - Cash and cash equivalents increased to approximately RMB 8,956.3 million, up about 16.5% from RMB 7,690.6 million in 2021[61] - Trade receivables and notes receivable increased to RMB 2,263.2 million as of December 31, 2022, up RMB 838.4 million from RMB 1,424.8 million on December 31, 2021, driven by expanded managed area and increased project numbers[65] - Trade payables rose to RMB 1,574.9 million as of December 31, 2022, a growth of approximately 96.0% from RMB 803.6 million on December 31, 2021, due to increased unsettled rental payments and expanded managed area[66] - The group had no borrowings or bank loans as of December 31, 2022, and did not mortgage any assets[66] Business Operations and Services - The company managed a total area of approximately 771.6 million square meters across 2,721 projects as of December 31, 2022, covering 210 cities in China[3] - The company launched a new service brand "Poly Trust Housing" in September 2022, focusing on comprehensive property services[13] - The company introduced a new "modular" service model in June 2022, moving away from traditional emergency property service models[10] - The company is advancing the construction of a five-in-one refined operation system to enhance operational management capabilities[23] - The company is expanding its service boundaries through a comprehensive service model, transitioning from town-level to core city-level services[22] - Revenue from property management services accounted for approximately 61.6% of total revenue, with an increase of about 26.4% year-on-year to approximately RMB 8,428.4 million[27] - The total area of contracted management projects reached approximately 771.6 million square meters, with a total of 2,721 projects as of December 31, 2022[28] - The area managed from third-party projects increased by approximately 81.1 million square meters year-on-year, accounting for about 59.4% of total contracted management area[30] Market Expansion and Strategy - The company aims to transition to a high-quality development model, focusing on core product and service capabilities to enhance community living experiences[24] - Non-residential markets are expected to become a significant growth engine, driven by government policies and increasing service demands[24] - The company plans to enhance community value-added services by focusing on home services, asset services, and improving customer service experiences[24] - The company aims to deepen its service capabilities in urban management and environmental sanitation, successfully launching several strategic projects in 2022[40] - The company has expanded its market presence in first and second-tier cities, enhancing service offerings in sectors such as banking and telecommunications[38] Corporate Governance and Leadership - Wu Lanyu was appointed as the executive director and chairwoman of the company on January 11, 2023, bringing over 14 years of experience in the real estate industry[74] - The company has a strong leadership team with diverse backgrounds in finance, marketing, and property management, enhancing its strategic decision-making capabilities[74][75][76][77] - The board includes members with advanced degrees in economics, law, and business administration, contributing to a well-rounded governance structure[75][76][77] - The company emphasizes the importance of corporate governance and compliance, as evidenced by the roles of independent directors in various committees[77] - The management team is committed to driving growth and innovation within the company, leveraging their diverse expertise[82] Employee and Talent Development - The company employed 43,433 employees as of December 31, 2022, with total employee costs amounting to approximately RMB 4,677.1 million for the year[180] - The company has implemented a competitive, performance-oriented compensation plan to incentivize employee value creation, alongside various employee benefits[180] - The company has established a talent development system focusing on key personnel training and recruitment initiatives to enhance organizational capabilities[181] Risk Management and Compliance - The company has implemented a comprehensive risk management framework focusing on five key areas: market development, community value addition, management, procurement, and budget management[116] - The internal control self-assessment was completed by the end of December 2022, confirming effective risk management in operational activities[116] - The audit committee oversees the risk management and internal control systems, ensuring management fulfills its responsibilities[115] - The company has adopted a whistleblowing policy and anti-bribery measures in accordance with corporate governance codes[114] Shareholder Relations and Dividends - The proposed annual dividend for the year ended December 31, 2022, is RMB 0.503 per share, with a proposed payout ratio of approximately 25.0%[131] - The company has adopted a dividend policy that allows shareholders to share in profits while retaining sufficient reserves for future development[127] - The company emphasizes effective communication with shareholders through various channels, including annual and interim results announcements, reports, and meetings[126] - The company has established a shareholder communication policy to enhance investor relations and keep investors informed about business performance and strategies[126] Environmental and Social Responsibility - The company has committed to sustainable development and environmental protection, promoting effective resource utilization and compliance with environmental laws[189] - The company will publish an independent Environmental, Social, and Governance report to demonstrate its commitment to sustainability and transparency[190]

Financial Performance - For the year ended December 31, 2022, Poly Property Services Co., Ltd. reported revenue of approximately RMB 13,686.7 million, an increase of 26.9% compared to RMB 10,782.5 million in 2021[2][3]. - The gross profit for the same period was approximately RMB 2,573.8 million, reflecting a growth of 27.8%, with a gross margin of 18.81%, up 0.13 percentage points from the previous year[2][3]. - The net profit for the year was approximately RMB 1,133.3 million, representing a 30.1% increase from RMB 870.9 million in 2021, with a net margin of 8.3%, up 0.2 percentage points[2][3]. - The profit attributable to owners of the company was approximately RMB 1,112.9 million, an increase of 31.6% compared to RMB 845.7 million in the prior year[2][3]. - Basic earnings per share for the year were RMB 2.014, up 31.8% from RMB 1.528 in 2021[2][3]. - The total comprehensive income for the year was RMB 1,133.3 million, compared to RMB 877.9 million in 2021[7]. - The company’s total tax expense for 2022 was RMB 388,998,000, an increase from RMB 300,542,000 in 2021, reflecting higher profitability[25]. - The group's profit for the year ended December 31, 2022, was approximately RMB 1,133.3 million, representing a growth of about 30.1% from RMB 870.9 million in the same period of 2021[88]. Revenue Breakdown - Revenue contributions from the three main business segments included property management services at RMB 8,428.4 million (up 26.4%), value-added services to non-owners at RMB 2,194.6 million (up 21.2%), and community value-added services at RMB 3,063.6 million (up 33.1%) compared to 2021[3]. - Total revenue for the year ended December 31, 2022, was RMB 13,686,662 thousand, representing an increase of 27.5% from RMB 10,782,549 thousand in 2021[19]. - Property management services generated revenue of RMB 8,428,388 thousand, up 26.4% from RMB 6,670,397 thousand in the previous year[19]. - Community value-added services revenue increased to RMB 3,063,633 thousand, a rise of 33.2% compared to RMB 2,300,921 thousand in 2021[19]. - Non-owner value-added services, including event coordination services, contributed RMB 1,787,099 thousand, reflecting an increase of 18.6% from RMB 1,506,387 thousand in 2021[19]. - The revenue from community retail amounted to approximately RMB 907.5 million, accounting for about 29.6% of total community value-added services revenue[73]. - The revenue from home improvement services was approximately RMB 557.9 million, representing about 18.2% of total community value-added services revenue[72]. - The revenue from parking services was approximately RMB 325.2 million, accounting for about 10.6% of total community value-added services revenue[74]. - The revenue from space operation services reached approximately RMB 327.9 million, representing about 10.7% of total community value-added services revenue[75]. Assets and Liabilities - The total assets less current liabilities amounted to RMB 7,924.5 million, compared to RMB 7,001.8 million in the previous year[8]. - The equity attributable to owners of the company increased to RMB 7,690.6 million from RMB 6,785.7 million in 2021[10]. - The company's total assets as of December 31, 2022, were RMB 4,677,113,000, compared to RMB 4,302,489,000 in 2021, showing growth in asset base[24]. - The trade receivables from related parties and third parties amounted to RMB 620,170,000 and RMB 1,733,871,000 respectively as of December 31, 2022, compared to RMB 389,073,000 and RMB 1,092,643,000 in 2021[31]. - Trade payables as of December 31, 2022, were approximately RMB 1,574.9 million, reflecting a significant increase of about 96.0% from RMB 803.6 million as of December 31, 2021[95]. - Accrued expenses and other payables as of December 31, 2022, were approximately RMB 1,988.9 million, an increase of about 11.7% from RMB 1,780.8 million as of December 31, 2021[96]. Cash Flow and Financing - Cash and cash equivalents as of December 31, 2022, were approximately RMB 8,956.3 million, an increase of 16.5% from RMB 7,690.6 million in 2021[2][3]. - The company’s financing costs related to lease liabilities increased to RMB 4,629,000 in 2022 from RMB 2,992,000 in 2021, indicating a rise in lease obligations[24]. - The total employee cost for the year ending December 31, 2022, was approximately RMB 4,677.1 million, with 43,433 employees as of that date[100]. - The company raised approximately HKD 5,218.2 million from the issuance of H shares, with HKD 3,690.7 million utilized by December 31, 2022, leaving HKD 1,527.5 million unutilized[98]. Strategic Initiatives - The company aims to enhance service quality and brand reputation through improved service standards and quality control systems[79]. - The company plans to focus on five core industries to drive sustainable development and explore new business models[80]. - The company is committed to digital transformation to enhance operational efficiency and management precision[80]. - The company aims to enhance property management market share and deepen community value-added services through lean management and digital empowerment[76]. - The strategy includes expanding market presence by focusing on quality regions and core business areas, optimizing business structure, and enhancing customer resource development[77]. - The company is transitioning towards a high-quality development model, focusing on core product and service capabilities to improve community living standards[55]. Market Position and Growth - The group ranked third in the 2022 China Property Service Top 100 Companies and first among state-owned enterprises in property management[58]. - The total area of contracted management projects as of December 31, 2022, was approximately 771.6 million square meters, with a total of 2,721 projects, covering 210 cities across 29 provinces and municipalities[59]. - The area managed from third-party projects increased to approximately 458.4 million square meters, representing a growth of about 81.1 million square meters year-on-year, and accounted for 59.4% of total contracted management area[60]. - Non-residential markets are expected to become a significant growth engine, with increasing demand for commercial, public, and urban services[56]. Governance and Compliance - The audit committee has reviewed the audited consolidated financial statements for the year ended December 31, 2022, ensuring compliance with accounting principles and internal controls[105]. - The company has adopted the Corporate Governance Code and has complied with all applicable provisions as of December 31, 2022[107]. - The group did not have any significant investments, acquisitions, or sales during the year ended December 31, 2022[97].

Financial Performance - Revenue for the six months ended June 30, 2022, was RMB 6,449.4 million, a 25.1% increase from RMB 5,153.1 million in the same period of 2021[18]. - Gross profit for the same period was RMB 1,304.9 million, with a gross margin of 20.23%, slightly up from 20.02% in 2021[18]. - Net profit attributable to shareholders was RMB 628.3 million, representing a 27.0% increase compared to RMB 490.8 million in the previous year[18]. - The total revenue for the group was approximately RMB 3,954.9 million for the period, compared to RMB 3,143.4 million in the same period of the previous year, reflecting a strong growth trajectory[28]. - The group's gross profit for the six months ended June 30, 2022, was approximately RMB 1,304.9 million, a 26.5% increase from RMB 1,031.5 million in 2021[50]. - Profit for the period was approximately RMB 635.5 million, an increase of about 25.8% from RMB 505.1 million in the same period of 2021, with a net profit margin of approximately 9.9%[54]. - Basic and diluted earnings per share for the period were RMB 1.14, compared to RMB 0.89 in the previous year, reflecting a 28.1% increase[88]. Revenue Breakdown - The property management services segment accounted for approximately 61.3% of total revenue, generating RMB 3,954.9 million, a 25.8% increase year-on-year[24]. - Revenue from third-party property management services was approximately RMB 1,486.4 million, a significant increase of about 41.9% year-on-year, accounting for approximately 37.6% of total property management service revenue[29]. - The non-residential property management revenue reached approximately RMB 1,539.5 million, a year-on-year increase of about 37.3%, with its proportion in total property management revenue rising by approximately 3.2 percentage points to about 38.9%[30]. - The residential community management area was approximately 229.7 million square meters, accounting for about 43.9% of the total managed area, with revenue from this segment reaching approximately RMB 2,415.4 million, a year-on-year increase of about 19.5%[33]. - Non-owner value-added services generated approximately RMB 1,092.2 million in revenue, a growth of about 35.4% compared to the previous year, driven by increased scale in agency services and rapid growth in office leasing[39]. - Community value-added services revenue was approximately RMB 1,402.3 million, reflecting a growth of about 16.6% year-on-year, supported by the expansion of management scale and user growth[40]. Assets and Liabilities - The total assets of the company as of June 30, 2022, were RMB 12,419.7 million, up from RMB 11,137.9 million at the end of 2021[19]. - Current assets as of June 30, 2022, were approximately RMB 11,294.9 million, an increase of about 13.1% from RMB 9,990.6 million as of December 31, 2021[55]. - Trade receivables and notes receivable increased to approximately RMB 2,262.7 million as of June 30, 2022, up about RMB 837.9 million from RMB 1,424.8 million as of December 31, 2021[59]. - Trade payables increased to approximately RMB 1,233.4 million as of June 30, 2022, a rise of about 53.5% from RMB 803.6 million as of December 31, 2021[61]. - The company’s total liabilities increased to RMB 1,761,260,000 as of June 30, 2022, compared to RMB 1,668,510,000 as of December 31, 2021, marking a rise of 5.6%[140]. Strategic Initiatives - The company is actively promoting a "big property" strategy, expanding its management services across residential, commercial, and public properties[23]. - The company aims to enhance its service offerings through technology and innovation, positioning itself as a leading player in the property management sector in China[22]. - The company is focusing on enhancing service quality and standardization across all property management sectors to improve efficiency and effectiveness[32]. - The company is actively expanding its service offerings in commercial and office properties, public and other properties, with a focus on differentiated service products tailored to client needs[33]. - The company established joint ventures with two state-owned platforms to enhance market opportunities through resource and capability complementarity[27]. Employee and Governance - As of June 30, 2022, the total employee cost was approximately RMB 2,354.1 million, with 42,827 employees, a decrease from 44,102 employees as of June 30, 2021[71]. - The company has implemented a restricted stock incentive plan aimed at enhancing governance and retaining key employees, with the first grant executed on April 26, 2022[76]. - The company has adopted a competitive, performance-oriented compensation plan to incentivize employee value creation[71]. - The company has emphasized the recruitment of high-quality talent and continuous training programs to align with strategic goals[72]. - The company has complied with all applicable corporate governance codes during the reporting period[74]. Cash Flow and Investments - Operating cash flow for the six months ended June 30, 2022, was a net outflow of RMB 2,346,989 thousand, a significant decrease from a net inflow of RMB 626,457 thousand in the same period of 2021[94]. - The company incurred a total of RMB 93,928 thousand in cash outflow from investing activities for the six months ended June 30, 2022, compared to RMB 853,864 thousand in the same period of 2021[94]. - The company raised approximately HKD 5,218.2 million from the issuance of 153,333,400 H-shares, with HKD 3,588.1 million utilized by June 30, 2022, leaving HKD 1,630.1 million unutilized[68]. - The company has focused on strategic investment opportunities and further acquisitions, with a total of HKD 965.4 million allocated for such purposes[69]. Shareholder Information - As of June 30, 2022, the total number of issued shares of the company was 553,333,400, comprising 400,000,000 domestic shares and 153,333,400 H shares[79]. - Major shareholders include China Poly Group, which holds 400,000,000 domestic shares, representing 72.29% of the total issued shares[81]. - The beneficial owner, Poly Development Holdings, holds 380,000,000 shares, accounting for 68.68% of the total issued shares[81]. - The company has not declared an interim dividend for the six months ending June 30, 2022[73]. Market and Customer Insights - Revenue from a major customer, Poly Developments and Holdings Group, accounted for 14.7% of total revenue in 2022, up from 12.6% in 2021[101]. - The company reported service income from Poly Developments Holdings Group of RMB 60,065,000 for property management services, an increase from RMB 55,659,000 in the same period of 2021[154].