Investment Rating - The report maintains an "Accumulate" rating for the real estate service industry [1] Core Viewpoints - The long-term growth of property companies relies on high-quality third-party expansion, stable gross margins, and community value-added services [60] - The industry is experiencing a shift towards focusing on core property service revenue, with a notable increase in its share of total income [10][13] - The report emphasizes the importance of managing accounts receivable and cash flow to mitigate operational risks [61] Summary by Sections 1. Sources of Long-term Growth for Property Companies - High-quality third-party expansion is essential for sustainable growth, with a significant increase in the share of core property service revenue among sample companies [10][16] - Profitability stabilization is more critical than mere scale growth, with some companies showing signs of gross margin recovery after years of decline [20][25] - Community value-added services, while not a second growth engine, can contribute to stable revenue and profit growth during low-growth phases [57] 2. Operational Risks Facing Property Companies - The accumulation of accounts receivable and the aging of these receivables pose significant risks to cash flow, with many companies experiencing faster growth in receivables than in revenue [61][63] - The report highlights the need for property companies to control the rapid growth of receivables to maintain financial health [61] 3. Valuation Recovery Potential in the Industry - The valuation of property companies is influenced by growth potential, profitability quality, and shareholder return policies, with a focus on maintaining a dividend payout [3][24] - Companies that can achieve stable mid-term growth and manage operational risks effectively are likely to see improved valuations [4][19] 4. Investment Recommendations - The report recommends companies that demonstrate stable growth, effective risk management, and a commitment to high dividends, highlighting specific companies such as China Resources Vientiane Life, Greentown Service, and China Merchants Jinling [4][19]

Investment Rating - The report maintains a "Positive" rating for the real estate and property management sectors, emphasizing the importance of stabilizing housing prices for both the real estate market and consumer confidence [4][27]. Core Insights - The report highlights a mixed performance in the real estate market, with new home sales in 34 key cities dropping by 29% week-on-week, while second-hand home sales showed a year-on-year increase of 12% [3][12]. - The report indicates that the government is implementing a series of monetary policy measures to support market stability, including a reduction in the Loan Prime Rate (LPR) and housing provident fund rates [4][27]. - The report suggests that the competitive landscape in the real estate sector is expected to improve, particularly for companies with strong product capabilities, as the market transitions to a new development model [4][27]. Summary by Sections Industry Data - New home sales in 34 cities totaled 181.9 million square meters last week, a decrease of 29.2% compared to the previous week [5]. - In May, new home sales in 34 cities increased by 9% year-on-year, with first and second-tier cities seeing a 10.6% increase [7][8]. - The inventory of new homes in 15 cities decreased by 0.3% week-on-week, with a current available area of 89.27 million square meters [22]. Policy and News Tracking - The People's Bank of China announced a series of monetary policy measures, including a 10 basis point reduction in the LPR and a 25 basis point reduction in housing provident fund rates [4][27]. - The report notes that the government is focusing on stabilizing the real estate market and promoting domestic demand in response to external trade tensions [4][27]. Company Announcements - In April, major real estate companies reported varied sales performance, with China Overseas Development achieving sales of 202 billion yuan, down 8% year-on-year, while China Jinmao saw a 7% increase [34]. - As of April 30, 2025, China Vanke and China Merchants Shekou have initiated share buybacks, indicating confidence in their long-term prospects [34].

Financial Performance - Total revenue for the year ended December 31, 2024, reached RMB 3,868 million, a 20% increase from RMB 3,224 million in 2023[9] - Gross profit for 2024 was RMB 902 million, with a gross margin of 23.3%, down from 26.6% in 2023[9] - Net profit attributable to shareholders for 2024 was RMB 353 million, resulting in a net profit margin of 9.1%, compared to 15.1% in 2023[9] - The company reported earnings per share of RMB 0.23 for 2024, a decrease from RMB 0.32 in 2023[9] - Core net profit increased by 5.1% year-on-year to RMB 512 million[71] - The net profit for the year was RMB 285.8 million, a decrease of 42.8% compared to RMB 499.9 million in the previous year[132] - The profit attributable to the company's owners was RMB 352.9 million, down 27.5% from RMB 487.0 million year-on-year[133] - Revenue from property management services increased to RMB 1,462.9 million, a growth of 12.7% from RMB 1,298.6 million in the previous year[114] - Revenue from non-commercial property management and value-added services reached RMB 3,134.2 million, up 19.2% from RMB 2,630.1 million year-on-year[117] Assets and Equity - As of December 31, 2024, the total assets amounted to RMB 6,616 million, up from RMB 6,407 million in 2023[9] - The total equity attributable to shareholders increased to RMB 3,503 million in 2024, compared to RMB 3,444 million in 2023[9] - The group's intangible assets decreased from RMB 332.9 million as of December 31, 2023, to RMB 85.4 million as of December 31, 2024, primarily due to goodwill impairment of approximately RMB 236.9 million[137] Operational Expansion - The company managed a total area of 42.72 million square meters in residential properties, serving over 310,000 households[22] - The commercial and industrial park management area reached 11.43 million square meters as of December 31, 2024[27] - The total contracted area across various regions is 88.73 million square meters, with the Greater Bay Area accounting for 54.96 million square meters (62% of total)[54][53] - The company is actively pursuing market expansion across multiple regions, including East China, the Greater Bay Area, Northern China, and Central-Western regions[49][55] - The group signed 85 new projects in 2024, with a total contracted area of 13 million square meters, bringing the total managed projects to 437 and total managed area to 69 million square meters[75] Service Offerings and Innovations - The company plans to enhance its service offerings by integrating asset management with property management and operational services[24] - The company is expanding its service offerings to include community management services centered around residents' daily needs, such as retail and home services[37] - The asset management services include a comprehensive solution for property leasing, renovation, and management, aimed at enhancing asset value for owners[40] - The company is leveraging digital technologies like IoT and big data to transform physical spaces into smart environments, focusing on various sectors including residential and commercial[44] - The group aims to enhance service quality and customer experience through digital applications and AI tools, focusing on improving response efficiency[78] Corporate Governance - The board of directors is composed of three executive directors, three non-executive directors, and three independent non-executive directors, ensuring a balance of skills and experience[164] - The company has mechanisms in place to ensure board independence, which is crucial for good corporate governance and effective decision-making[174] - The board confirmed that there are no significant uncertainties regarding the company's ability to continue as a going concern[184] - The company has established guidelines for managing and disclosing inside information to ensure timely assessment of facts that may significantly impact the company's stock price[190] - The company emphasizes the importance of compliance with corporate governance codes and has established a written terms of reference for the Audit Committee[194] Employee and Operational Costs - The total employee cost for the year amounted to RMB 1,120.1 million, with 10,422 full-time employees as of December 31, 2024[155] - Administrative expenses rose to RMB 296.4 million, a 6.1% increase from RMB 279.3 million in the previous year[129] Recognition and Awards - The company was recognized as one of the top 12 property service companies in China for 2024 by the China Index Academy[60] - The group received multiple recognitions, including being ranked 12th in the "2024 Top 100 Property Service Companies in China" and achieving an A rating in ESG management from MSCI[76] Dividends and Financial Management - The company proposed a final dividend of HKD 0.083 per share, totaling HKD 0.183 per share for the entire year when combined with the interim dividend[71] - The proposed final dividend for the year is HKD 0.083 per share, totaling HKD 0.183 per share for the fiscal year ending December 31, 2024, which is a decrease from HKD 0.187 per share in 2023[136] - The company plans to distribute dividends of no less than 30% of the distributable net profit attributable to shareholders annually, subject to various factors including operational performance and financial condition[191]

Core Viewpoint - The real estate market has experienced a slowdown in both supply and demand, leading to increased competition in the property management sector. In this context, Yuexiu Services has focused on enhancing service quality and achieving steady operational performance, with a revenue increase of 20% year-on-year in 2024 [1] Financial Performance - In 2024, Yuexiu Services reported total revenue of 3.868 billion yuan, a 20% increase year-on-year; gross profit exceeded 900 million yuan, up 5.3%; and core net profit, excluding goodwill impairment, was 512 million yuan, reflecting a 5.1% growth [1] - The total dividend for 2024 was 0.169 yuan per share, a 5.6% increase year-on-year, with a dividend payout ratio of 50% based on core net profit [1] Strategic Development - For 2025, Yuexiu Services has set a development strategy of "Lean Services, Striving for New Heights," focusing on digital transformation and enhancing service quality to build a competitive edge [2] - The company aims to deepen service quality across all business segments in 2024, with a strong emphasis on customer needs [7] Business Segments - The non-commercial property management and value-added services segment generated revenue of 3.134 billion yuan, a 19.2% increase, accounting for 81% of total revenue. This segment includes basic property management, non-owner value-added services, and community value-added services [7] - Basic property management services, a cornerstone of Yuexiu Services, achieved revenue of 1.236 billion yuan, up 20.1% [7] - Community value-added services generated revenue of 1.217 billion yuan, with a growth rate exceeding 30%, becoming a key driver of performance [8] Market Expansion - As of the end of 2024, Yuexiu Services' contracted area reached 88.73 million square meters, a 6.3% increase, while the managed area grew to 69.31 million square meters, also up 6.3% [12] - The company has strategically focused on high-quality management projects, with significant new contracts including major national projects, enhancing brand influence and securing government public service channels [13] Regional Focus - Yuexiu Services is concentrating on strategic core cities, particularly in the Guangdong-Hong Kong-Macao Greater Bay Area, where approximately 60% of the managed area is located [14] - The company plans to expand its footprint in economically vibrant cities, targeting a revenue goal of 400 million yuan from external expansion in 2025 [14] New Business Initiatives - Yuexiu Services is exploring new business opportunities in areas such as energy management, environmental governance, and high-end housekeeping, with a focus on light asset operations [11] - The Integrated Facility Management (IFM) service system has been established to cater to B-end clients, enhancing the value of non-residential projects [9][10] Acquisition Strategy - The company is actively looking for acquisition opportunities, particularly in value-added service sectors such as smart home solutions and energy management, with 5 billion yuan of raised funds earmarked for acquisitions [15]

Investment Rating - The report maintains a "Buy" rating for the company [7]. Core Views - The company achieved a revenue of 3.87 billion yuan in 2024, representing a year-on-year growth of 20% [2]. - The core net profit attributable to shareholders increased by 5.1% year-on-year, amounting to 510 million yuan, after excluding goodwill impairment [2]. - The company actively repurchased shares, spending 7.34 million yuan to buy back 2.68 million shares, which is 0.17% of the issued shares [2][3]. Summary by Sections Financial Performance - The company reported a total revenue of 3.87 billion yuan in 2024, with non-commercial segment revenue at 3.13 billion yuan (up 19.2%) and commercial segment revenue at 730 million yuan (up 23.7%) [2]. - The gross profit margin decreased by 3.3 percentage points to 23.3%, while the net profit attributable to shareholders fell by 27.5% to 350 million yuan [2][3]. - The company recognized a goodwill impairment of 240 million yuan related to the acquisition of Guangzhou Metro Environmental Engineering Co., which is expected to have limited future impact on performance [3]. Business Segments - Revenue from property management, non-owner value-added services, community value-added services, and commercial operations reached 1.24 billion, 680 million, 1.22 billion, and 630 million yuan respectively, with year-on-year growth rates of 20.1%, 1.7%, 30.6%, and 29.7% [3]. Cash Position and Shareholder Returns - As of the end of 2024, the company had cash and cash equivalents totaling 4.7 billion yuan, indicating a strong cash position [4]. - The total dividend for 2024 was 0.169 yuan per share, amounting to 260 million yuan, which corresponds to a dividend yield of 6.4% based on the closing price on March 28, 2025 [4]. Profit Forecast and Valuation - The forecast for net profit attributable to shareholders for 2025 and 2026 has been adjusted to 610 million and 680 million yuan respectively, with a new forecast for 2027 set at 750 million yuan [5]. - The company is expected to have a price-to-earnings ratio of 7, 6, and 5 times for 2025, 2026, and 2027 respectively, indicating attractive valuation [5].

Investment Rating - The investment rating for the company is "Outperform the Market" [5] Core Insights - The company reported a revenue increase of 20% year-on-year for 2024, reaching 3.868 billion yuan, while the net profit attributable to shareholders decreased by 27.5% to 353 million yuan due to goodwill impairment [7][8] - Excluding the impact of goodwill impairment, the core net profit increased by 5.1% year-on-year to 512 million yuan [8] - The overall gross margin decreased from 26.6% in 2023 to 23.3% in 2024, primarily due to a decline in the gross margin of value-added services [7][8] Financial Performance Summary - **Revenue and Profit Forecasts**: - 2023: Revenue of 3.224 billion yuan, net profit of 487 million yuan - 2024: Revenue of 3.868 billion yuan (+20% YoY), net profit of 353 million yuan (-27.5% YoY) - 2025E: Revenue of 4.656 billion yuan (+20.4% YoY), net profit of 480 million yuan (+35.9% YoY) [6][13] - **Earnings Per Share (EPS)**: - 2024: EPS of 0.23 yuan, down 28.1% from 0.32 yuan in 2023 - 2025E: EPS expected to recover to 0.32 yuan [6][13] - **Gross Margin and Return on Equity (ROE)**: - Gross margin for 2024 is 23.3%, down from 26.6% in 2023 - ROE for 2024 is projected at 10.1%, down from 14.1% in 2023 [15] Market Expansion and Management - The company has expanded its management scale, focusing on high-quality market development, signing 85 new projects with a total contract area of 12.95 million square meters [11] - As of December 31, 2024, the company managed projects across 48 cities, with a total contract area of 88.73 million square meters, a year-on-year increase of 6.3% [11] Shareholder Returns - The board proposed a final dividend of 0.078 yuan per share for 2024, leading to a total annual dividend of 0.169 yuan per share, an increase of 5.6% year-on-year [12] - The dividend payout ratio for 2024 is 50% based on core net profit [12]

Summary of Yuexiu Services Conference Call Company Overview - **Company**: Yuexiu Services - **Fiscal Year**: 2024 - **Revenue**: 3.868 billion RMB, up 20% year-on-year - **Core Net Profit**: 512 million RMB, up 5.1% year-on-year - **Customer Satisfaction**: Maintained at a high level of 91 points Key Financial Metrics - **Property Management Revenue**: 1.236 billion RMB, up 20.1% year-on-year - **Contracted Area**: 88.73 million square meters, up 6.3% year-on-year - **Managed Area**: 69.31 million square meters, up 6.3% year-on-year - **Net Assets**: Increased by 3.5 billion RMB year-on-year - **Return on Equity (ROE)**: 14% - **Cash and Deposits**: 4.702 billion RMB - **Accounts Receivable Turnover Days**: 47 days - **Dividend Payout**: 0.169 RMB, up 5.6% year-on-year, with a payout ratio of 50% [3][4][7][20] Business Segment Performance - **Non-Commercial Revenue**: 81% of total revenue, up 19.2% to 3.134 billion RMB - **Core Property Management Revenue**: 1.236 billion RMB, up 20% - **Community Value-Added Services**: 1.217 billion RMB, up 31% - **Non-Owner Value-Added Services**: 681 million RMB, stable - **Commercial Revenue**: 19% of total revenue, up 23% to 734 million RMB - **Overall Gross Margin**: Decreased by 3 percentage points to 23% [5][6][13] Strategic Initiatives - **Project Optimization**: Removed 26 underperforming projects, increasing the proportion of projects in the Greater Bay Area from 55% to 60% [3][7] - **Focus on High-Quality Development**: Emphasis on enhancing expansion standards and regional layout, particularly in the Greater Bay Area [8] - **Digital Tools and Customer Orientation**: Implementation of digital technology to improve customer satisfaction and operational efficiency [8][9] - **New Business Ventures**: Launched integrated facility management services targeting B-end and G-end clients, achieving a contract value of 64.25 million RMB [8] Market Challenges and Responses - **Impact of Real Estate Cycle**: Non-owner value-added services affected by the real estate cycle, but early-stage and intelligent design consulting services performed well [6] - **Decline in Non-Commercial Gross Margin**: Non-commercial gross margin decreased by 3.3 percentage points, with expectations for future margins around 20% [15][16] - **Project Exit Strategy**: Exited projects primarily due to declining payment capabilities of clients and low consumer spending, with plans to exit an additional 2 million square meters in 2025 [18][19] Future Outlook - **Investment Directions**: Focus on rental income assets and mergers in value-added sectors, including community commercial developments [21] - **Strategic Goals for 2025**: Aim to become a trusted leader in smart services, enhancing service quality, digital transformation, and optimizing value-added services [14] Additional Insights - **Cash Management**: Maintained stable cash levels despite significant renovation payments, with a focus on cash management and potential special dividend plans [20] - **Commercial Operations**: Commercial operations revenue increased by approximately 24%, with an average occupancy rate of 85% across projects [13]

Investment Rating - The report maintains a "Buy" rating for the company, expecting a price increase of over 15% in the next 6-12 months [4][20]. Core Views - The company achieved a revenue of 3.868 billion RMB in 2024, representing a year-on-year growth of 20.0%, while the net profit attributable to shareholders decreased by 27.5% to 353 million RMB [1][4]. - The growth in revenue is driven by value-added services, with community value-added service revenue increasing by 30.6% to 1.217 billion RMB, and commercial operation and management service revenue rising by 29.4% to 630 million RMB [2]. - Despite the decline in net profit due to goodwill impairment, the core net profit, excluding this impairment, still grew by 5.1% year-on-year [2]. - The company has a strong cash position, with cash and deposits totaling 4.702 billion RMB, which is 0.99 times its total market value, and a dividend yield of 5% based on the latest share price [3]. - The company plans to repurchase up to 30.44 million shares, which is 2% of the total share capital, and maintains a 50% payout ratio for dividends [3]. Summary by Sections Performance Review - In 2024, the company reported a revenue of 3.868 billion RMB, a 20.0% increase year-on-year, while the net profit attributable to shareholders was 353 million RMB, down 27.5% [1]. Operational Analysis - Revenue growth was primarily driven by value-added services, with community services and commercial management services showing significant increases [2]. - The company’s gross margin decreased by 3.3 percentage points to 23.3%, attributed to declines in various service margins [2]. - The total managed area reached 69.31 million square meters, a 6.3% increase from 2023, while the contracted area also grew by 6.3% to 88.73 million square meters [2]. Profit Forecast, Valuation, and Rating - The profit forecast for 2025-2027 has been slightly adjusted, with expected net profits of 520 million RMB, 560 million RMB, and 610 million RMB, reflecting growth rates of 46.4%, 9.2%, and 8.1% respectively [4]. - The current stock price corresponds to a PE ratio of 9.13x, 8.36x, and 7.73x for the years 2025-2027 [4].

Core Viewpoint - Yuexiu Services (stock code: 6626.HK) reported a robust performance for the fiscal year 2024, achieving a revenue of 3.868 billion RMB, representing a year-on-year growth of 20.0% and a core net profit of 512 million RMB, up by 5.1% [1][2] Revenue Structure - Non-commercial revenue remains the core source of income for Yuexiu Services, totaling 3.134 billion RMB, which is a 19.2% increase year-on-year and accounts for 81% of total revenue [1] - The basic property management service, as a pillar business, generated 1.236 billion RMB in revenue, reflecting a 20.1% increase and contributing 32% to total revenue [1] - Community value-added services saw a significant growth of 30.6%, reaching 1.217 billion RMB, indicating the company's focus on community scenarios and enhancing operational capabilities [1][2] Non-Owner Value-Added Services - Non-owner value-added services generated 681 million RMB in revenue, showcasing initial success in market expansion [2] - The company is building a comprehensive facilities management (IFM) service system to enhance the operational value of non-residential projects [2] Commercial Revenue Performance - Commercial revenue reached 734 million RMB, marking a 23.7% increase, primarily from commercial operation and management services [2] - The commercial operation and management services alone generated 630 million RMB, a substantial increase of 29.7%, reflecting strong capabilities in attracting quality tenants [2] Future Outlook - The company aims to enhance service quality and organizational efficiency in 2025, focusing on core service investments and innovative service models [2] - The board declared a total dividend of 0.169 RMB per share for the fiscal year 2024, with a payout ratio of 50% based on core net profit, rewarding long-term shareholder support [2]

Financial Performance - Total revenue for the year ended December 31, 2024, was RMB 3,868 million, representing a year-on-year growth of 20.0%[2] - Revenue from non-commercial property management and value-added services was RMB 3,134 million, up 19.2% year-on-year, while revenue from commercial property management and operation services was RMB 734 million, an increase of 23.7%[2] - Profit attributable to the owners of the company was RMB 353 million, down 27.5% year-on-year, primarily due to goodwill impairment during the year[2] - Core net profit, excluding the impact of goodwill impairment, was RMB 512 million, representing a year-on-year increase of 5.1%[2] - The net profit for the year ending December 31, 2024, was RMB 285,770 thousand, compared to RMB 499,882 thousand in 2023, indicating a decrease of approximately 43%[29] - The pre-tax profit for 2024 was RMB 462,499 thousand, down from RMB 687,142 thousand in 2023, indicating a decline of about 32.7%[54] - The net profit for the year was RMB 285.8 million, a decrease of 42.8% from RMB 499.9 million in the previous year, with a net profit margin of 7.4%[150] - The profit attributable to the company's owners was RMB 352.9 million, down 27.5% from RMB 487.0 million, while core net profit increased by 5.1% to RMB 512 million[151] Assets and Liabilities - Total non-current assets increased significantly to RMB 2,617 million from RMB 533 million year-on-year[7] - Cash and cash equivalents decreased to RMB 2,004 million from RMB 4,695 million year-on-year[7] - Total equity as of December 31, 2024, was RMB 3,587 million, slightly down from RMB 3,620 million in the previous year[8] - The total assets as of December 31, 2024, amounted to RMB 6,616,335 thousand, an increase from RMB 6,407,144 thousand in 2023, reflecting a growth of about 3%[34] - The total liabilities as of December 31, 2024, were RMB 3,028,656 thousand, compared to RMB 2,786,689 thousand in 2023, which is an increase of approximately 9%[34] - The total amount of other receivables, prepayments, and deposits increased to RMB 619,046 thousand in 2024 from RMB 453,432 thousand in 2023, marking a significant growth[78] - The total accounts payable and notes payable rose to RMB 651,499 thousand in 2024, up from RMB 399,277 thousand in 2023, indicating increased operational activity[77] Dividends - The board proposed a final dividend of HKD 0.083 per share, equivalent to RMB 0.078 per share, bringing the total dividend for the year to HKD 0.183 per share, or RMB 0.169 per share[2] - The proposed final dividend for 2024 is HKD 0.083 per share, totaling approximately RMB 115 million, pending shareholder approval[60] - The company proposed a final dividend of HKD 0.083 per share, equivalent to approximately RMB 0.078 per share, down from RMB 0.079 per share in the previous year[154] Operational Highlights - The total managed area as of December 31, 2024, was 69.31 million square meters, reflecting a year-on-year growth of 6.3%[2] - The company signed 85 new projects in 2024, with a total contracted area of 13 million square meters[91] - As of December 31, 2024, the company managed 437 projects, covering a total area of 69 million square meters, representing a year-on-year increase of 6.3%[102] - The total number of contracted projects increased to 508, with a total contracted area of 88.7 million square meters, reflecting a year-on-year growth of 6.3%[102] - The company expanded its Integrated Facility Management (IFM) product system, achieving contract amounts exceeding RMB 60 million, indicating successful market expansion efforts[89] - The company maintained a high occupancy rate in community commercial properties while exploring innovative business models, such as self-operated coffee services[89] - The company achieved a customer satisfaction response rate of 99.4%, reflecting its commitment to service quality improvement[87] Financial Reporting and Governance - The company submitted its financial statements for the year ending December 31, 2023, in accordance with the Companies Ordinance[13] - The auditor's report on the group's financial statements for the two years was unqualified, with no emphasis of matter or statements made under sections 406(2), 407(2), or (3) of the Companies Ordinance[14] - The group adopted revised Hong Kong Financial Reporting Standards for the first time this year, with no significant financial impact on the consolidated financial statements[17] - The audit committee has reviewed the group's financial statements and found no disagreements with the external auditors regarding accounting principles and policies[183] - The company has complied with all provisions of the Corporate Governance Code as per the listing rules during the year[176] Market and Strategic Focus - The company plans to focus on strategic cities and high-quality sectors such as corporate headquarters and universities to optimize project quality and expand market presence[97] - The company will strengthen self-operated businesses, creating a community service platform to connect supply and demand effectively[99] - The company emphasizes sustainable development and corporate social responsibility while striving to become a trusted leader in smart services[99] - The company aims to enhance service quality through digital applications and AI tools, improving customer experience and operational efficiency[96] Employee and Shareholder Information - The group has a total of 10,422 full-time employees in China and Hong Kong as of December 31, 2024, with total employee costs amounting to RMB 1,120.1 million[175] - The company repurchased a total of 11,558,500 ordinary shares during the year, at a total cost of approximately HKD 37 million[179] - Of the repurchased shares, 10,757,500 ordinary shares were cancelled during the year, with the remaining 801,000 shares to be cancelled in January 2025[180] Impairments and Costs - The company recognized a goodwill impairment of RMB 236,866 thousand in 2024, which was not present in 2023[49] - Intangible assets decreased significantly from RMB 332.9 million to RMB 85.4 million, primarily due to goodwill impairment of approximately RMB 236.9 million[155] - The cost of subcontractors for renovation and other services increased from RMB 399,693 thousand in 2023 to RMB 555,203 thousand in 2024, an increase of approximately 38.9%[49] - Administrative expenses rose by 6.1% to RMB 296.4 million, attributed to business expansion and new investments in smart and health-related initiatives[146]