Financial Performance - The group's operating revenue for the year ended December 31, 2023, was approximately RMB 12,486.5 million, representing a year-on-year growth of about 5.7%[2] - The group's gross profit was approximately RMB 3,108.4 million, with a gross margin of about 24.9%, an increase of approximately 1.9 percentage points year-on-year[2] - The net profit for the group was approximately RMB 1,563.8 million, reflecting a year-on-year increase of about 5.8%, with a net margin of approximately 12.5%[2] - Total revenue for the year ended December 31, 2023, was RMB 12,486,544,000, an increase from RMB 11,809,176,000 in 2022, representing a growth of approximately 5.7%[15] - Revenue from third-party clients was RMB 12,372,832,000 for the year ended December 31, 2023, compared to RMB 11,668,653,000 in 2022[16] - The company reported a profit attributable to owners of RMB 1,541,199,000 in 2023, representing an increase of 8.3% compared to RMB 1,422,679,000 in 2022[31] - Basic and diluted earnings per share for 2023 were RMB 0.14, compared to RMB 0.13 in 2022, reflecting a 7.7% increase[31] - The company's net profit for the year was approximately RMB 1,563.8 million, representing a growth of about 5.8% compared to RMB 1,478.6 million in 2022, with a net profit margin of approximately 12.5%[66] Assets and Liabilities - The group's total assets as of December 31, 2023, amounted to approximately RMB 8,246.4 million, compared to RMB 7,147.8 million as of December 31, 2022[4] - The total liabilities of the group as of December 31, 2023, were approximately RMB 8,227.2 million, down from RMB 8,660.5 million as of December 31, 2022[5] - As of December 31, 2023, the group's net current liabilities were approximately RMB 1,907,269,000, compared to RMB 3,321,357,000 as of December 31, 2022[9] - The group's net assets were approximately RMB 19,211,000 as of December 31, 2023, compared to RMB 1,512,765,000 as of December 31, 2022[9] - Contract liabilities as of December 31, 2023, amounted to RMB 2,649,350,000, a slight decrease from RMB 2,688,029,000 in 2022[21] - The company's trade receivables increased to RMB 3,046,591,000 in 2023 from RMB 2,739,020,000 in 2022, representing an increase of approximately 11.2%[32] - The company's accounts payable decreased to RMB 4,115,560,000 in 2023 from RMB 4,925,270,000 in 2022, reflecting a decrease of approximately 16.4%[36] Revenue by Segment - The total revenue for property management services in 2023 reached RMB 10,318,518,000, an increase of 8.3% from RMB 9,528,653,000 in 2022[19] - Community living services revenue grew to RMB 809,252,000 in 2023, up 29.6% from RMB 624,159,000 in 2022[19] - The asset management services segment steadily progressed, achieving revenue of approximately RMB 740.4 million, reflecting a year-on-year growth of about 4.6%[48] - Community operation service revenue decreased by approximately 34.8% to RMB 618.4 million, primarily due to reduced demand for advertising placements and venue rentals in the market[74] Operational Measures and Strategies - The group has implemented cost control measures to improve its operational and financial condition[9] - The company aims to enhance service quality through continuous improvement and innovation, focusing on customer satisfaction and operational efficiency[50] - The company is committed to developing a "Golden Beauty Home" service system, enhancing property services through community group purchases and home services[50] - The company is focusing on market expansion by leveraging its "Golden Beauty" brand and collaborating with three independent brand companies to enhance brand influence[51] - The company is exploring the integration of "Party Building + Property Management" to enhance community governance and service delivery[52] - The company acknowledges external pressures and risks, emphasizing the need for continuous improvement in service quality and operational efficiency[53] Employee and Management - The total employee cost for the year was approximately RMB 5,627.7 million, with a workforce of 91,482 employees as of December 31, 2023[95] - The group implemented a training program with a total training time of 1.375 million hours, averaging 15.0 hours per employee[96] - The total remuneration for key management personnel increased from RMB 2,088 thousand in 2022 to RMB 2,666 thousand in 2023, reflecting a growth of approximately 28.0%[42] Governance and Compliance - The board of directors did not recommend the payment of any final dividend for the year ended December 31, 2023[2] - The company has adopted the Corporate Governance Code and has complied with all applicable provisions for the year ended December 31, 2023[101] - An audit committee has been established, consisting of three independent non-executive directors, to review financial reporting and risk management[103] - The financial statements for the year ended December 31, 2023, have been reviewed by the audit committee and are consistent with the audited consolidated financial statements[104]

【港股物管概念涨幅扩大 恒大物业涨26%】财联社2月26日电，物业管理港股午后涨幅扩大。截至发 稿，恒大物业(06666.HK)涨26%，雅生活服务(03319.HK)涨12%，佳兆业美好(02168.HK)涨11%，世茂 服务(00813.HK)涨7%，华润万象生活(01209.HK)涨6%，碧桂园服务(06098.HK)涨6%。中银国际发表报 告指出，在通胀较低的环境下，物业管理行业的防御性更强，并预计该行覆盖的公司都将实现正的经营 现金流。考虑到大多数公司的今年市盈率为个位数至低双位数，估值颇具吸引力，重申对行业 "增 持"评级。 ...

Core Viewpoint - Evergrande Property (06666) experienced a significant increase of over 11%, closing at 0.58 HKD with a trading volume of 5.77 million HKD, following the announcement of changes in the Hang Seng Index [1] Group 1: Company Updates - The Hang Seng Index Company announced the results of its quarterly review, effective March 4, 2024, which will see the number of constituent stocks in the Hang Seng Composite Index decrease from 518 to 514, with Evergrande Property among the 25 stocks added [1] Group 2: Industry Insights - According to Industrial Securities, the real estate industry is witnessing a series of optimization policies, with more financial support measures expected to alleviate liquidity pressures for property companies and boost buyer confidence, thereby releasing housing demand [1] - State-owned real estate companies are noted for their financial stability and smooth financing, allowing them to continue acquiring land in core cities, ensuring sales and performance [1] - The recommendation is made for high-quality property management companies in the current market environment [1]

Core Viewpoint - Evergrande Property's stock surged over 18% during trading, closing at 0.465 HKD, amid concerns regarding the company's liquidation process following a court ruling [1] Group 1: Company Developments - On January 29, the Hong Kong High Court held a hearing regarding Evergrande's liquidation petition, issuing a liquidation order against the company [1] - Three days prior, on January 26, Evergrande Property announced an internal notice regarding the forced execution of approximately 134 billion RMB in pledged deposits, with its wholly-owned subsidiary filing a lawsuit in the Guangzhou Intermediate People's Court [1] - Following the court's acceptance of the case on January 25, market speculation arose that Evergrande aimed to protect its property management segment to recover funds [1] Group 2: Market Reactions - The market and investors are closely monitoring how Evergrande Property will handle its situation in light of the liquidation order [1] - The likelihood of recovering the 134 billion RMB debt appears low after the issuance of the liquidation order [1]

Financial Performance - The group achieved a revenue of approximately RMB 6,145.1 million, representing a year-on-year growth of about 6.2%[9]. - The gross profit was approximately RMB 1,499.2 million, with a gross margin of about 24.4%, an increase of approximately 2.2 percentage points year-on-year[9]. - The net profit reached approximately RMB 790.3 million, with a net margin of about 12.9%, an increase of approximately 3.0 percentage points year-on-year[9]. - The profit attributable to the owners of the company was approximately RMB 781.3 million, with basic earnings per share of approximately RMB 0.07[9]. - The total revenue for the first half of 2023 was approximately RMB 6,145.1 million, representing a year-on-year growth of about 6.2%[24]. - The company reported a total comprehensive income of RMB 791,968,000 for the period, compared to RMB 571,669,000 in the previous year, an increase of approximately 38.5%[76]. - The net profit for the period was RMB 790,333,000, compared to RMB 570,868,000 in the previous year, reflecting an increase of approximately 38.4%[76]. - Basic and diluted earnings per share for the company were RMB 0.07, compared to RMB 0.05 in the prior year, marking a 40% increase[76]. Revenue Sources - Property management services generated revenue of approximately RMB 5,024.6 million, a year-on-year increase of about 7.4%, attributed to an increase in managed area to approximately 509 million square meters[26]. - Community value-added services revenue was approximately RMB 1,078.7 million, remaining stable compared to the previous year, with community life services increasing by about 98.5%[28]. - The company reported a revenue growth of approximately 230.8% in community group purchasing services compared to the same period in 2022[14]. - Revenue from home service offerings under the "Jinbi Daijia" brand increased by approximately 96.9% compared to the same period in 2022[14]. - The company achieved a revenue growth of approximately 66.7% in its property rental and sales business compared to the same period in 2022[15]. Operational Developments - The group successfully resumed trading on August 3, 2023, after addressing liquidity issues and other challenges[10]. - The company aims to enhance service quality and customer satisfaction by focusing on standardized service systems and personalized services[10]. - The company plans to optimize its profit model and strengthen its value-added business to support rapid development in property services[10]. - The company aims to enhance third-party management area steadily and achieve high-quality scale expansion through a diversified brand development strategy centered around "Jinbi+"[11]. - The company plans to focus on customer satisfaction by optimizing service standards and enhancing professional service capabilities[18]. Financial Position - As of June 30, 2023, the total assets amounted to RMB 7,612,905 thousand, an increase from RMB 7,147,771 thousand as of December 31, 2022, representing a growth of approximately 6.5%[77]. - The company reported a net current liabilities of approximately RMB 2,525,932,000 as of June 30, 2023, down from RMB 3,321,357,000 at the end of 2022[74]. - Total liabilities decreased to RMB 8,361,895 thousand as of June 30, 2023, down from RMB 8,660,536 thousand as of December 31, 2022, representing a reduction of about 3.5%[78]. - The company’s retained earnings increased to RMB 5,071,382 thousand as of June 30, 2023, compared to RMB 4,290,073 thousand at the end of 2022, showing a growth of approximately 18.2%[80]. - The group reported foreign currency assets of RMB 37,883,000 as of June 30, 2023, down from RMB 39,248,000 as of December 31, 2022[89]. Challenges and Risks - The group faced industry risks related to regulatory environments affecting property management fees and operational costs, which could impact profitability and business performance[45]. - The group experienced significant losses due to the "RMB 13.4 billion deposit pledge" incident, which raises concerns about its ability to maintain sufficient operating funds to meet financial obligations in the next twelve months[48]. - The group has not faced significant direct exchange rate fluctuation risks, as its operations are primarily located in China, and the management expects no major adverse impact from the RMB exchange rate on operations[47]. - The group has taken measures to address going concern uncertainties, including streamlining operating costs and negotiating payment extensions with suppliers[48]. Governance and Compliance - The company has adopted the Corporate Governance Code and has complied with all applicable provisions as of June 30, 2023[65]. - The company has confirmed compliance with the Securities Trading Standard Code during the six months ended June 30, 2023[64]. - The internal control consultant completed the assessment of the internal control system and procedures, identifying deficiencies and providing recommendations[67]. - The board believes that the implemented corrective measures are sufficient to address all major findings identified by the internal control consultant[67]. Employee and Talent Development - The company emphasizes talent development through the "Golden General Plan," enhancing the training of frontline staff and improving operational standards[17]. - The group employed approximately 82,836 employees as of June 30, 2023, with training totaling 452,000 hours, averaging 5.5 hours per employee[51][52]. - The company is committed to talent development, establishing a multi-dimensional talent evaluation system to foster high-level professionals[23]. Shareholder Information - The stock option plan allows for the issuance of up to 1,081,081,100 shares, representing 10% of the total issued shares as of the special meeting date[53][54]. - As of June 30, 2023, Dr. Xu Jiayin holds 5,590,229,000 shares, representing 51.71% of the total shares[61]. - The company did not declare any interim dividend for the six months ended June 30, 2023, consistent with the previous year[63].

Financial Performance - The group's revenue for the six months ended June 30, 2023, was approximately RMB 6,145.1 million, representing a year-on-year increase of about 6.2%[2] - Gross profit was approximately RMB 1,499.2 million, with a gross margin of approximately 24.4%, an increase of about 2.2 percentage points year-on-year[2] - Net profit for the period was approximately RMB 790.3 million, with a net margin of approximately 12.9%, an increase of about 3.0 percentage points year-on-year[2] - The profit attributable to the owners of the company was approximately RMB 781.3 million, with basic earnings per share of approximately RMB 0.07[2] - The total comprehensive income for the period was approximately RMB 791.968 million, compared to RMB 571.669 million in the same period of 2022[4] - Total other income for the six months ended June 30, 2023, was RMB 79,228,000, compared to RMB 74,372,000 for the same period in 2022, marking a 6.5% increase[15] - Employee benefit expenses amounted to RMB 2,785,702,000, slightly up from RMB 2,749,021,000, indicating a 1.3% increase in labor costs[17] - The company recorded current income tax expenses of RMB 320,027,000 for the six months ended June 30, 2023, compared to RMB 312,209,000 for the same period in 2022[18] - Deferred income tax expenses for the six months ended June 30, 2023, were RMB (85,968,000), compared to RMB (9,866,000) for the same period in 2022[18] Assets and Liabilities - The total assets as of June 30, 2023, amounted to approximately RMB 7,612.905 million, compared to RMB 7,147.771 million as of December 31, 2022[6] - The total liabilities as of June 30, 2023, were approximately RMB 8,361.895 million, compared to RMB 8,660.536 million as of December 31, 2022[7] - The group reported a net current liability of RMB 2,525,932,000 and total liabilities of RMB 748,990,000 as of June 30, 2023, compared to RMB 3,321,357,000 and RMB 1,512,765,000 respectively as of December 31, 2022[10] - The company has net current liabilities of approximately RMB 2,525,932,000 as of June 30, 2023, down from RMB 3,321,357,000 as of December 31, 2022[30] - The total amount of trade payables as of June 30, 2023, was RMB 1,847,552,000, a slight decrease from RMB 1,913,404,000 as of December 31, 2022[26] - As of June 30, 2023, the group's contract liabilities amounted to approximately RMB 2,496.8 million, a decrease of about RMB 191.2 million from RMB 2,688.0 million as of December 31, 2022[60] - The group's cash and cash equivalents totaled approximately RMB 1,672.5 million as of June 30, 2023, an increase of about RMB 16.5 million from RMB 1,656.0 million as of December 31, 2022, mainly due to increased net cash inflow from operating activities[60] Revenue Breakdown - Property management services generated RMB 5,024,605,000 in revenue, up from RMB 4,676,572,000, reflecting a growth of 7.4%[14] - The group’s community value-added services generated RMB 1,078,658,000 in revenue, remaining stable compared to RMB 1,078,649,000 in the previous year[14] - Property management services accounted for RMB 5,024.6 million, or 81.8% of total revenue, with a growth rate of 7.4% compared to the same period in 2022[47] - Community value-added services generated RMB 1,078.7 million, maintaining a stable revenue contribution of 17.5% with no growth compared to the previous year[47] - Non-owner value-added services increased by 27.5%, reaching RMB 41.9 million, contributing 0.7% to total revenue[47] - The company achieved a revenue growth of approximately 230.8% in diversified sales scenarios such as live streaming and community group buying compared to the same period in 2022[38] - Revenue from home service brand "Jinbi Daijia" grew by about 96.9% year-on-year, driven by enhanced resource integration and service quality[38] - The company expanded its property rental and sales business, achieving a revenue increase of approximately 66.7% year-on-year through self-operated and cooperative models[38] Operational Strategies - The company plans to enhance its market development by steadily increasing third-party management area and focusing on high-quality scale expansion[34] - The company aims to deepen value-added services by exploring customer consumption needs and expanding service types that align closely with customer demands[37] - The company is committed to building a standardized service system and enhancing service quality through various community engagement activities[36] - The company emphasizes talent development and management capabilities to support sustainable growth and high-quality service delivery[34] - The company will continue to pursue a strategy of "high-quality development" while maintaining operational stability and enhancing internal management[35] - The company plans to enhance service quality and customer satisfaction through systematic improvements and resource allocation, aiming for a comprehensive upgrade of its service brand[42] - The company will adjust its non-owner value-added service strategy to prioritize market-driven opportunities, enhancing service quality for real estate developers[44] Corporate Governance and Compliance - The company has adopted the Corporate Governance Code as per the Stock Exchange's listing rules and has complied with all applicable provisions as of June 30, 2023[72] - The audit committee, consisting of three independent non-executive directors, has reviewed the group's unaudited interim results for the six months ended June 30, 2023[74] - The independent auditor has reviewed the interim financial information in accordance with the relevant standards[75] - The interim results announcement has been published on the Stock Exchange and the company's website, with all required data included[76] Challenges and Risk Management - The group faced significant operational risks due to potential increases in operating costs, which could adversely affect profit margins and financial performance[63] - The group has taken measures to address going concern uncertainties, including streamlining operating costs and negotiating payment extensions with suppliers[65] - The company is implementing various measures to improve liquidity amid significant uncertainties regarding its ability to continue as a going concern[30] Employee and Training - As of June 30, 2023, the group had approximately 82,836 employees, with total training hours reaching 452,000 hours, averaging 5.5 hours per employee[67] Internal Control and Audit - The internal control assessment report identified deficiencies in the internal control system, with corrective measures being implemented to address these issues[69] - The board believes that the implemented measures and rectifications are sufficient to address all major findings from the internal control consultant[70] Dividend Policy - The company did not recommend the payment of any interim dividend for the six months ended June 30, 2023[2] - The company did not declare or pay any dividends for the six months ended June 30, 2023, consistent with the same period in 2022[19]

Financial Performance - For the year ended December 31, 2022, the company achieved revenue of approximately RMB 11,809.2 million, with a gross profit of approximately RMB 2,719.1 million and a net profit of approximately RMB 1,478.6 million[6]. - The profit attributable to the owners of the company was approximately RMB 1,422.7 million, resulting in a basic earnings per share of approximately RMB 0.13[6]. - The total revenue for the group in 2022 was approximately RMB 11,809.2 million, a decrease of 10.5% compared to RMB 13,193.5 million in 2021[13]. - Property management service revenue reached approximately RMB 9,440.6 million, representing a year-on-year growth of 3.7% due to an increase in managed area[15]. - Revenue from third-party property management services accounted for 79.8% of total revenue, amounting to RMB 9,427.9 million, with a year-on-year growth of 15.9%[11]. - Revenue from community value-added services from third parties was RMB 2,229.9 million, representing an increase of 1.8% year-on-year[11]. - The net profit for the year was approximately RMB 1,478.6 million, with profit attributable to the company's owners at approximately RMB 1,422.7 million[25]. - The company reported a basic and diluted earnings per share of RMB 0.13 for 2022, compared to a loss per share of RMB (0.03) in 2021[152]. Operational Metrics - As of December 31, 2022, the total contracted area managed by the company was approximately 819 million square meters, with an area under management of approximately 500 million square meters, an increase of approximately 27 million square meters compared to the end of 2021[6]. - The company expanded its third-party project management area to approximately 148 million square meters, accounting for about 30% of the total area managed, with new third-party management area representing about 37% of the total new management area[7]. - The total managed area as of December 31, 2022, was approximately 500 million square meters, an increase of about 27 million square meters from 2021[15]. - The total employee cost for the year was approximately RMB 5,329.4 million, with a total of 72,076 employees as of December 31, 2022[38]. Customer Satisfaction and Community Engagement - The company reported a 13.5% year-on-year decrease in customer complaint rates per thousand households, indicating improved customer satisfaction in property services[6]. - The company actively engaged in community support and social responsibility initiatives, including the establishment of nearly 200 party branches and organizing approximately 15,000 community events[7]. - The company provided employment for over 2,400 veterans, receiving recognition for its contributions to social responsibility and employment support in Guangdong Province[7]. Financial Position and Liabilities - As of December 31, 2022, trade receivables were approximately RMB 2,739.0 million, an increase of about RMB 739.3 million from RMB 1,999.7 million in the previous year[29]. - Contract liabilities decreased to approximately RMB 2,688.0 million, down from RMB 3,080.1 million as of December 31, 2021, due to a reduction in prepayments for property service fees[31]. - The group's current liabilities net value as of December 31, 2022, was approximately RMB 3,321.4 million, down from RMB 5,450.2 million on December 31, 2021, resulting in a current ratio of approximately 0.60 times[32]. - The group has approximately RMB 183.0 million in short-term borrowings and RMB 66.7 million in long-term borrowings as of December 31, 2022[32]. - The group has approximately RMB 13.4 billion in pledged deposits that were enforced by relevant banks, indicating significant financial exposure[65]. Governance and Management - The company is committed to independent oversight and management through its audit and nomination committees, ensuring compliance and governance[43]. - The company has a strong board of independent non-executive directors, including Mr. Peng Liaoyuan, who has over 30 years of experience in legal affairs[43]. - The company has established mechanisms for independent professional advice to ensure the board receives unbiased perspectives[50]. - The company has implemented appropriate insurance arrangements for its directors and senior management against legal liabilities[50]. - The company has committed to maintaining high standards of corporate governance, with further details provided in the corporate governance report[128]. Risk Management - The group has established a risk management framework with the board as the decision-making body and designated managers for execution, clarifying responsibilities and reporting lines[59]. - The audit committee continuously monitors the effectiveness of the risk management framework and oversees the management's design and implementation of risk management systems[60]. - The group believes it will have sufficient operating funds to meet its financial obligations until June 30, 2024, provided all measures are successfully implemented[162]. - The volatility of the real estate industry in China and uncertainty regarding creditor support pose significant risks to the group's plans and measures[162]. Shareholder Communication and Dividends - The company has a shareholder communication policy to ensure equal and timely access to company information for shareholders[87]. - The board aims to maintain the current proportion of female members and promote gender diversity in recruitment for senior positions[76]. - The company has adopted a dividend policy to declare dividends annually when circumstances permit, considering distributable profits and financial conditions[81]. - The board of directors has not proposed any final dividend for the year ending December 31, 2022, with no shareholders waiving or agreeing to waive any dividends[95]. Internal Controls and Compliance - The company has established a whistleblowing procedure for employees, customers, and suppliers to report misconduct anonymously[68]. - The company has established procedures to ensure compliance with applicable laws, rules, and regulations, and is aware of compliance in all significant aspects[91]. - The company has confirmed compliance with the standards for securities trading by directors during the year ended December 31, 2022[78]. - The independent auditors have confirmed that there were no issues that would lead them to believe that the related party transactions were not approved by the board or exceeded the respective caps[124]. Strategic Initiatives - The group aims to enhance its market expansion capabilities and focus on a diversified brand development strategy centered around "Jinbi+"[9]. - The group plans to deepen community group purchasing services to improve user consumption experience and increase service penetration and repurchase rates[10]. - The company is focused on enhancing community value-added services, led by Mr. Fang Shun, who has been with the group since 2015[45]. - The company has implemented a smart information platform to enhance online interaction between customers and service staff, improving customer experience and operational efficiency[93].

Financial Performance - The total revenue for the year ended December 31, 2021, was approximately RMB 13,193.5 million, representing a year-on-year growth of approximately 22.4%[12]. - The gross profit for the year was approximately RMB 3,663.9 million[8]. - The company reported a net loss of RMB 388.8 million for the year, compared to a net profit of RMB 2,646.5 million in the previous year[25]. - The gross profit for the year was approximately RMB 3,663.9 million, a decrease of 8.8% year-on-year, with a gross margin of 27.8%[18]. - Total revenue for the year was RMB 13,193.5 million, reflecting a growth rate of 22.4% compared to the previous year[13]. - The company reported a basic and diluted loss per share of RMB (0.03) for 2021, compared to earnings of RMB 0.26 per share in 2020[185]. - The company’s equity attributable to owners was RMB (3,866,551) thousand in 2021, down from RMB 9,845,648 thousand in 2020, reflecting a substantial decrease[188]. - The company’s administrative and marketing expenses for 2021 were RMB 980,053 thousand, compared to RMB 644,951 thousand in 2020, representing an increase of approximately 52%[185]. - The company recorded a loss of approximately RMB 388,794,000 for the year ended December 31, 2021[195]. Revenue Breakdown - Property management service revenue was approximately RMB 9,101.8 million, while community value-added service revenue was approximately RMB 2,288.9 million, together accounting for about 86.3% of total revenue[8]. - Property management services revenue reached RMB 9,101.8 million, a year-on-year increase of 44.0%, accounting for 69.0% of total revenue[14]. - Community value-added services revenue was RMB 2,288.9 million, up 48.9% year-on-year, representing 17.3% of total revenue[15]. - Non-owner value-added services revenue declined to RMB 1,802.7 million, a decrease of 38.3%, making up 13.7% of total revenue[16]. Market Expansion and Strategy - The company plans to accelerate market expansion by leveraging its management scale and professional service capabilities, focusing on high-quality growth through market-oriented project development[11]. - Community value-added services are expected to expand significantly, with a focus on community group buying, family services, home decoration, and insurance brokerage[10]. - The company aims to enhance customer satisfaction and service quality by implementing detailed service standards and promoting employee engagement in service delivery[10]. Corporate Governance - The company emphasizes the importance of high standards in corporate governance to enhance performance and accountability[53]. - The board of directors has adhered to the corporate governance code as per the Hong Kong Stock Exchange rules for the year ending December 31, 2021[53]. - The roles of the chairman and CEO are separated, with Duan Shengli serving as chairman and Hu Liang as CEO, ensuring clear leadership and operational management[57]. - The independent non-executive directors have confirmed their independence in accordance with the relevant regulations[55]. - The company has established appropriate insurance arrangements for its directors and senior management against legal liabilities arising from corporate activities[55]. Risk Management - The management emphasizes the importance of adapting to regulatory changes and the complex real estate market environment to achieve sustainable development in 2022[10]. - The company faced significant operational risks due to industry regulations and potential impacts on its business performance from regulatory changes in China[33]. - The risk management framework was enhanced by establishing a decision-making structure led by the board of directors and senior management[64]. - The company has established a whistleblowing procedure for employees, customers, and suppliers to report misconduct anonymously[77]. Acquisitions and Investments - The company acquired 100% equity of Ningbo Yatai Hotel Property for RMB 1,500 million on January 29, 2021, completing the registration of 80% equity on February 23, 2021[40]. - The company acquired 100% equity of Shenzhen Futian Property for approximately RMB 371.39 million on February 28, 2021, completing the registration on April 19, 2021[41]. - The company acquired 100% equity of Evergrande Insurance Brokerage Co., Ltd. for approximately RMB 39.2 million, completed on April 29, 2021[44]. - The company utilized approximately RMB 1,932.6 million for strategic acquisitions and investments, and approximately RMB 254.1 million to support operations[45]. Financial Position - As of December 31, 2021, the company's total bank deposits and cash amounted to approximately RMB 1,166.8 million, a decrease of about RMB 11,443.8 million from RMB 12,610.6 million on December 31, 2020[32]. - The company's current liabilities net value was approximately RMB 5,450.2 million as of December 31, 2021, compared to RMB 9,594.9 million on December 31, 2020, with a current ratio of approximately 0.4 times[32]. - The company’s total liabilities increased to RMB 10,104,658 thousand in 2021 from RMB 7,251,929 thousand in 2020, marking an increase of about 39.5%[188]. - The company’s cash and cash equivalents decreased to RMB 1,130,154 thousand in 2021 from RMB 10,605,396 thousand in 2020, a decline of about 89.4%[187]. Compliance and Legal Matters - The company ensured compliance with legal and regulatory requirements through regular reviews and monitoring of policies[60]. - The independent investigation committee recommended strengthening existing systems, including establishing independent document management and risk assessment procedures[75]. - The Financial Reporting Council has initiated an inquiry into the company's financial statements for the year ended December 31, 2020, and the six months ended June 30, 2021[146]. Employee and Training Initiatives - The group employed a total of 73,381 employees as of December 31, 2021, with compensation based on individual performance and market salary levels[133]. - The company has implemented comprehensive internal training programs for employees to enhance their professional and service skills[102]. Shareholder Information - The largest percentage of shares held by a major shareholder, Dr. Xu Jiayin, is 58.18%, amounting to 6,290,229,000 shares[119]. - The company has adopted a dividend policy, considering distributable profits, financial condition, and future development goals when declaring dividends[90]. - The company’s distributable reserves as of December 31, 2021, were approximately RMB -6,824.3 million, and no final dividend was recommended for the year[104].

Financial Performance - For the year ended December 31, 2022, the group's revenue was approximately RMB 11,809.2 million, with a gross profit of approximately RMB 2,719.1 million and a net profit of approximately RMB 1,478.6 million[2]. - The group reported earnings attributable to shareholders of approximately RMB 1,422.7 million, with basic earnings per share of approximately RMB 0.13[3]. - The group's net profit for the year 2022 was approximately RMB 1,478.6 million, with profit attributable to the company's owners amounting to approximately RMB 1,422.7 million[73]. - Total revenue for the group decreased from RMB 13,193,464,000 in 2021 to RMB 11,809,176,000 in 2022, a decline of approximately 10.5%[16]. - The gross profit for the year was approximately RMB 2,719.1 million, with a gross margin of 23.0%, down from 27.8% in 2021[68]. Revenue Breakdown - Revenue for property management services was RMB 9,440,560,000 in 2022, an increase from RMB 9,101,820,000 in 2021, representing a growth of approximately 3.7%[16]. - Community value-added services revenue was RMB 2,280,523,000 in 2022, slightly down from RMB 2,288,944,000 in 2021[16]. - Revenue from non-owner value-added services plummeted by 95.1% to RMB 88.1 million due to the liquidity crisis of related parties[65]. - Revenue from community value-added services was RMB 2,280.5 million, representing a slight decline of 0.4% year-on-year[64]. Assets and Liabilities - The group's total assets as of December 31, 2022, amounted to RMB 7,147.8 million, compared to RMB 6,602.1 million in 2021[6]. - Total liabilities decreased from RMB 10,104.7 million in 2021 to RMB 8,660.5 million in 2022[6]. - As of December 31, 2022, the group's net current liabilities and net liabilities were RMB 3,321,357,000 and RMB 1,512,765,000 respectively[10]. - The total liabilities as of December 31, 2022, included net current liabilities of approximately RMB 3,321,357,000 and net debt of RMB 1,512,765,000[52]. Cash Flow and Expenses - The group’s cash and cash equivalents increased from RMB 1,130.2 million in 2021 to RMB 1,568.0 million in 2022[5]. - Total expenses for the year decreased to RMB 9,867,451 thousand in 2022 from RMB 10,509,584 thousand in 2021, a decrease of 6.1%[25]. - Employee benefit expenses decreased to RMB 5,329,374 thousand in 2022 from RMB 5,767,308 thousand in 2021, a reduction of 7.6%[25]. - The current tax expense for 2022 was RMB 428,098 thousand, up from RMB 256,371 thousand in 2021, an increase of 67%[26]. Operational Developments - The total contracted area as of December 31, 2022, was approximately 819 million square meters, with a managed area of approximately 500 million square meters, maintaining a leading position in the industry[2]. - The company expanded its third-party project management area to approximately 148 million square meters, accounting for about 30% of the total managed area, with new third-party management area representing about 37% of the total new management area[55]. - The customer complaint rate decreased by 13.5% year-on-year, indicating an improvement in property service satisfaction[54]. - The company aims to enhance its market expansion capabilities and service quality, focusing on becoming a benchmark in the property service industry in China[56]. Debt and Repayment Plans - The group is actively discussing repayment plans with China Evergrande Group regarding RMB 13.4 billion of occupied funds to protect its interests[2]. - The group is negotiating a repayment plan with China Evergrande for approximately RMB 13,400,000,000 in secured notes, which is expected to have no significant impact on future cash flows[10]. - The group has reached agreements with several creditors to extend repayment periods from one to four years, with further extensions possible if necessary[10]. Governance and Compliance - The audit committee, consisting of three independent non-executive directors, reviewed the financial statements for the year ending December 31, 2022[88]. - The company's auditor confirmed that the financial data in the performance announcement aligns with the audited financial statements for the year ending December 31, 2022[89]. - The company has adopted the Corporate Governance Code as per the Hong Kong Stock Exchange rules and complied with all applicable provisions for the year ending December 31, 2022[86]. Future Outlook - The company intends to shift its third-party project expansion from "scale" to "efficiency and scale," optimizing project layout and enhancing operational competitiveness[57]. - The company will maintain a prudent operational approach in 2023, focusing on high-quality service capabilities and community value-added business potential[57]. - The company plans to develop a comprehensive service portal focusing on property services and lifestyle services, enhancing customer convenience and satisfaction[56].

Financial Performance - For the year ended December 31, 2021, the group's revenue was approximately RMB 13,193.5 million, with a gross profit of approximately RMB 3,663.9 million, and a net loss of approximately RMB 388.8 million[2]. - The company's total revenue for the year ended December 31, 2021, was approximately RMB 13,193.5 million, representing a year-on-year growth of about 22.4%[81]. - Property management services generated revenue of approximately RMB 9,101.8 million, accounting for 69.0% of total revenue, with a year-on-year increase of 44.0%[82]. - Community value-added services revenue reached approximately RMB 2,288.9 million, representing 17.3% of total revenue, and grew by 48.9% year-on-year[84]. - The overall gross profit for the company was approximately RMB 3,663.9 million, reflecting a year-on-year decrease of 8.8%[87]. - The company reported a net loss of RMB 388.8 million for the year, a shift from a net profit of RMB 2,646.5 million in the previous year, largely due to full impairment provisions for receivables from related parties[93]. Assets and Liabilities - The group's total assets as of December 31, 2021, amounted to RMB 6,602.1 million, a significant decrease from RMB 17,108.5 million as of December 31, 2020[4]. - The total liabilities of the group increased to RMB 10,104.7 million as of December 31, 2021, compared to RMB 7,251.9 million as of December 31, 2020[5]. - As of December 31, 2021, the group's net current liabilities and net debt were RMB 5,450,169,000 and RMB 3,502,530,000, respectively[9]. - The group’s non-current assets increased to RMB 2,681.6 million as of December 31, 2021, from RMB 287.9 million as of December 31, 2020[4]. - The company recognized a goodwill impairment of RMB 593,946 thousand as of December 31, 2021, compared to zero in 2020[38]. Cash Flow and Financial Position - The group's cash and cash equivalents decreased significantly to RMB 1,130.2 million from RMB 10,605.4 million in the previous year[4]. - Cash and cash equivalents totaled RMB 1,166.8 million, a decrease of approximately RMB 11,443.8 million from RMB 12,610.6 million, primarily due to pledged deposits for financing third-party companies[99]. - The company reported significant losses due to liquidity crises related to affiliated parties and a RMB 13.4 billion deposit pledge event, impacting its ability to continue as a going concern[104]. Dividends and Share Capital - The board of directors did not recommend the payment of any final dividend for the year ended December 31, 2021[2]. - The company did not declare or pay any dividends for the years ended December 31, 2021, and 2020[36]. - The company's issued share capital increased to RMB 10,810,811,000 as of December 31, 2021, from RMB 7,060,000,000 in 2020, reflecting a growth of 53.9%[45]. Employee and Operational Metrics - As of December 31, 2021, the company had 73,381 employees, with total employee costs amounting to approximately RMB 5,767.3 million for the year[105]. - Employee benefits expenses increased to RMB 5,767,308 thousand in 2021 from RMB 3,873,885 thousand in 2020, representing a growth of 48.7%[32]. Business Acquisitions and Investments - The company agreed to acquire 100% equity of Evergrande Insurance Brokerage for approximately RMB 39,198,000[14]. - The total acquisition cost for seven property management companies was RMB 2,167,981,000, with identified property management contracts and customer relationships valued at RMB 1,133,376,000 recognized as intangible assets[56]. - The net cash outflow from acquisitions for the year ended December 31, 2021, was RMB 1,101,795,000 after accounting for cash and cash equivalents acquired[59]. Debt and Restructuring Efforts - The group is actively discussing repayment plans with China Evergrande Group regarding RMB 13.4 billion of occupied funds to protect its interests[2]. - The group is negotiating a repayment plan with China Evergrande Group involving approximately RMB 13,400,000,000 in secured notes[9]. - Several creditors have agreed to extend repayment terms from one to four years, which may be further extended if necessary[10]. - The group has entered into restructuring support agreements with creditor groups to facilitate the proposed debt restructuring[70]. Compliance and Governance - The company has appointed new compliance and internal control advisors to ensure adherence to listing rules[116][115]. - An independent investigation committee was established to investigate the deposit pledge event, with findings indicating that approximately RMB 13.4 billion in deposits were enforced by banks due to the triggering of pledge realization conditions[113]. - The audit committee has reviewed the group’s accounting principles and practices, including the audited financial statements for the year ended December 31, 2021[121].