Investment Rating - The investment rating for the company is "Recommended (Maintain)" with a current stock price of 1.15 HKD [1]. Core Views - The company reported a revenue of 314 million HKD for H1 2024, representing a year-on-year growth of 8.8%, while the net profit attributable to shareholders decreased by 8.1% to 89 million HKD [3]. - The company emphasizes quality improvement and efficiency enhancement in its ongoing projects, with same-store traffic increasing by 16% and same-store sales rising by 8% in H1 2024 [3]. - The overall gross margin stands at 51.6%, with stable margins across most operational models, despite some pressure from new projects still in the cultivation phase [3]. - The company has a strong cash position, with cash increasing by 3.9% compared to the end of 2023, and a dividend payout ratio of 50% [3]. - The company has opened new projects in Guangzhou and Shanghai, continuing its strategic focus on the Greater Bay Area and national expansion [3]. - The associated company, Xinghe Holdings, maintains a stable operation with a AAA credit rating, indicating strong financial health [3]. Financial Summary - For H1 2024, the company achieved a revenue of 314 million HKD, with a gross margin of 51.6% [3]. - The projected earnings per share (EPS) for 2024-2026 are adjusted to 0.15 HKD, 0.16 HKD, and 0.16 HKD respectively, reflecting a decrease from previous estimates [3]. - The price-to-earnings (P/E) ratios for the next three years are projected at 6.9x, 6.7x, and 6.5x [4][3]. - The company’s total assets are projected to grow from 2,325 million HKD in 2023 to 2,984 million HKD by 2026 [7].

Financial Performance - For the six months ended June 30, 2024, the group's revenue was approximately RMB 313.8 million, representing a year-on-year growth of about 8.8%[1] - For the same period, the company's profit attributable to owners was approximately RMB 89.1 million, a decrease of about 8.1% year-on-year[2] - The gross profit for the six months ended June 30, 2024, was RMB 161.9 million, compared to RMB 164.6 million for the same period in 2023[2] - The company's basic earnings per share for the six months ended June 30, 2024, was RMB 8.80, down from RMB 9.54 in the previous year[2] - Operating profit for the six months ended June 30, 2024, was RMB 89,100,000, down from RMB 96,962,000 in the same period of 2023, indicating a decline of 8.2%[18] - The company's profit for the six months ended June 30, 2024, was approximately RMB 86.5 million, a year-on-year decrease of about 6.0%[76] Revenue Breakdown - Customer contract revenue for the six months ended June 30, 2024, was RMB 285,119,000, an increase from RMB 271,316,000 in the same period of 2023, representing a growth of 5.5%[11] - Revenue from entrusted management services reached RMB 209,691,000 for the six months ended June 30, 2024, compared to RMB 189,983,000 in 2023, reflecting an increase of 10.4%[10] - Total revenue from commercial property operation services was RMB 313,780,000 for the six months ended June 30, 2024, up from RMB 288,487,000 in 2023, marking a growth of 8.8%[10] - Revenue from brand and management output services was approximately RMB 43.5 million, a year-on-year decrease of about 31.4%, accounting for approximately 13.8% of total revenue[64] - Revenue from whole rental services was approximately RMB 60.6 million, a year-on-year increase of about 72.3%, accounting for approximately 19.4% of total revenue[64] Cash and Assets - As of June 30, 2024, the company's cash and cash equivalents along with short-term bank deposits totaled approximately RMB 1,465.6 million, an increase of about 3.9% compared to December 31, 2023[1] - Total assets less current liabilities amounted to RMB 1,901.3 million as of June 30, 2024, compared to RMB 1,956.8 million as of December 31, 2023[4] - The company's total equity attributable to owners was RMB 1,225.3 million as of June 30, 2024, compared to RMB 1,256.8 million at the end of 2023[4] - The company's trade and other receivables increased to RMB 58,811,000 as of June 30, 2024, from RMB 53,740,000 as of December 31, 2023, representing a growth of 9.5%[19] - The company's cash and cash equivalents were approximately RMB 332.8 million as of June 30, 2024, a decrease of about 39.1% from December 31, 2023, mainly due to the management's decision to utilize idle funds for purchasing large bank certificates of deposit[80] Liabilities and Expenses - Non-current liabilities included lease liabilities of RMB 640.9 million as of June 30, 2024, down from RMB 659.2 million at the end of 2023[4] - The company reported a decrease in administrative expenses to RMB 31.8 million for the six months ended June 30, 2024, from RMB 35.8 million in the same period of 2023[2] - The company reported a net income tax expense of RMB 27,374,000 for the six months ended June 30, 2024, compared to RMB 29,815,000 in 2023, a decrease of 8.2%[14] - The company's trade payables increased to RMB 32,982,000 as of June 30, 2024, up 21% from RMB 27,177,000 as of December 31, 2023[21] Dividends and Share Repurchase - The board declared an interim dividend of HKD 0.048 per ordinary share for the six months ended June 30, 2024[1] - The company declared an interim dividend of HKD 0.048 per share for the six months ended June 30, 2024, totaling approximately RMB 120,066,000, compared to RMB 64,802,000 for the same period in 2023[16] - A total of 761,000 shares were repurchased at a total cost of HKD 979,750, with the shares cancelled on February 29, 2024[92] Operational Strategy and Market Presence - The company provided services to 54 commercial property projects across 21 cities in China, with a total contracted building area of approximately 2.77 million square meters[25] - The company operates 29 retail commercial properties with a total operational building area of approximately 1.77 million square meters[25] - The company plans to enhance its flagship product line COCO Park, focusing on brand strength and targeting young consumer demographics[58] - The expansion strategy will focus on deepening presence in key markets such as the Greater Bay Area and Yangtze River Delta[61] - The company will implement a "One Store, One Strategy" operational approach to improve marketing and customer engagement[60] Corporate Governance and Compliance - The company has complied with the corporate governance code, except for the absence of an independent non-executive director with appropriate professional qualifications since May 8, 2024[93] - The interim financial information for the six months ended June 30, 2024, has been reviewed by the company's auditors[95]

这个倒不是很大那我们大约是整个的24年我们基本也是在24年也是在这个十五万方左右那25年26年大约基本来讲也是目前这么一个大概的体量 好的明白谢谢马总然后客户的第二个提问是关于20年的今年的外拓的面积还有数量有没有基因谢谢我们在年初的时候因为业绩汇的时候很多投资人包括股东也问过我们这个问题我们内部的其实现在对于轻资产的拓展大方向肯定是以稳健为主 不能讲叫不能为了项目拿项目就是正常的去推进然后我们整个的这种拓展的方式区域也比较聚焦合作伙伴可能也是更多的集中于国企了因为以前兴盛也能看得到历史上拓的比较猛但是很多的一些合作方都是有些资金的问题所以我们也就主动的退出了所以就是 整体来说24年我们当时预计的话是大约是在就是我们想法肯定是在稳重求进的基础上越来越好但是我们内部的话也有一个指标就是我们还是希望能够大约是在比如说两到三个项目 一个项目大概8万方到10万方这么一个情况目前因为之前业绩会上也提过我们现在有一个项目应该已经进入到最后的状态了所以如果到时候会有确定的消息我们会及时的发一个 发一个自愿性的公告也是在大湾区也是一个国企的项目而且那个项目位置也非常的好现在目前基本已经到了后期的用意大概这么一个流程了具体的金 ...

Investment Rating - The report maintains a "Buy" rating with a target price of HKD 2.05 [1][32]. Core Views - The company has shown steady revenue growth, achieving an annual revenue of HKD 635 million in 2023, a year-on-year increase of 13.0%, and a net profit attributable to the parent company of HKD 171 million, up 10.9% year-on-year [26]. - The report indicates a downward adjustment in revenue growth and gross margin forecasts for 2024-2025, with EPS estimates revised to HKD 0.17 and HKD 0.19 for 2024 and 2025 respectively, down from previous estimates of HKD 0.22 and HKD 0.27 [1][26]. - The company has successfully opened six high-quality projects in 2023, contributing to a 6.5% increase in management revenue, which accounted for 64% of total revenue [26]. Financial Summary - The company reported a revenue of HKD 635 million in 2023, with a gross margin of 52.5%, down 3.2 percentage points from the previous year [27]. - The net profit margin for 2023 was 26.9%, with a return on equity (ROE) of 13.6% [27]. - The company’s projected revenue for 2024 is HKD 702 million, with an expected growth rate of 10.5% [27]. - The company’s earnings per share (EPS) for 2024 is projected to be HKD 0.17, with a price-to-earnings (P/E) ratio of 7.4 times [27]. Business Performance - The company operates 27 retail commercial properties with a total area of approximately 1.65 million square meters, and has 20 projects in preparation, providing a solid foundation for future growth [26]. - Same-store sales increased by 18% and customer traffic grew by 39% in 2023, indicating strong operational performance [26]. - The company is well-positioned in the Greater Bay Area, with a focus on high-quality project development, supported by its parent company, Xinghe Holdings [26].

Financial Performance - Total revenue for 2023 reached RMB 635,006 thousand, an increase of 13.0% from RMB 561,854 thousand in 2022[6] - Gross profit for 2023 was RMB 333,555 thousand, up from RMB 313,039 thousand in 2022, reflecting a gross margin improvement[6] - Net profit attributable to the owners of the company increased to RMB 171,097 thousand in 2023, compared to RMB 154,275 thousand in 2022, representing an increase of 10.9%[6] - Basic earnings per share rose to RMB 16.84, up from RMB 15.15 in the previous year, indicating a growth of 11.1%[6] - The company's operating profit before tax for 2023 was RMB 238,829 thousand, an increase from RMB 208,345 thousand in 2022, representing a growth of approximately 14.7%[12] - The company reported a total comprehensive income of RMB 171,097 thousand for the year ended December 31, 2022, compared to RMB 154,275 thousand for the previous year, marking an increase of about 10.9%[10] Assets and Liabilities - Total assets as of 2023 amounted to RMB 1,956,802 thousand, compared to RMB 1,849,036 thousand in 2022, showing an increase of 5.8%[8] - Current liabilities increased to RMB 367,844 thousand in 2023 from RMB 288,486 thousand in 2022, reflecting a rise of 27.5%[7] - The company’s non-current assets totaled RMB 855,514 thousand in 2023, an increase from RMB 818,905 thousand in 2022, representing a growth of 4.5%[7] - The company’s total equity increased to RMB 1,271,670 thousand in 2023 from RMB 1,180,703 thousand in 2022, reflecting a growth of 7.7%[8] - The total equity as of December 31, 2023, was RMB 1,256,765 thousand, compared to RMB 1,154,397 thousand at the end of 2022, indicating a growth of approximately 8.9%[10] - Trade and other payables amounted to approximately RMB 287.0 million, a year-on-year increase of 37.9% from RMB 208.1 million as of December 31, 2022[153] - The asset-liability ratio as of December 31, 2023, was approximately 45.3%, relatively stable compared to 44.9% as of December 31, 2022[156] Cash Flow and Financing - The net cash generated from operating activities for 2023 was RMB 369,917 thousand, compared to RMB 236,792 thousand in 2022, reflecting an increase of approximately 56.1%[12] - The financing costs for 2023 were RMB 38,285 thousand, up from RMB 23,342 thousand in 2022, which is an increase of approximately 64%[12] - The net cash flow from financing activities decreased to RMB (85,720) thousand in 2023 from RMB (118,172) thousand in 2022, representing a reduction of approximately 27.5%[13] - The company paid dividends amounting to RMB (64,802) thousand in 2023, a decrease of 45.2% compared to RMB (118,252) thousand in 2022[13] - The company’s cash and cash equivalents decreased to RMB (436,248) thousand in 2023 from RMB (376,995) thousand in 2022, indicating a decline in liquidity[12] - The total cash and cash equivalents increased to RMB 546,914 thousand at the end of 2023, up from RMB 485,888 thousand at the end of 2022, indicating a growth of about 12.6%[13] Operational Highlights - Revenue from entrusted management services was approximately RMB 406.4 million, accounting for about 64.0% of total revenue, with a year-on-year increase of approximately 6.5%[84] - Revenue from brand and management output services was approximately RMB 145.0 million, accounting for about 22.8% of total revenue, with a year-on-year increase of approximately 5.2%[84] - Revenue from leasing services was approximately RMB 83.6 million, accounting for about 13.2% of total revenue, with a year-on-year increase of approximately 97.9%[85] - The company's gross profit for the year was approximately RMB 333.6 million, representing a year-on-year increase of about 6.6%[87] - The gross profit margin for the year was approximately 52.5%, a decrease of about 3.2 percentage points compared to the previous year[91] - The company operates under a commission management service model, which allows for higher autonomy in managing projects and potentially better operational performance[132] Strategic Initiatives - The group aims to enhance its operational quality by focusing on member strategies, tenant marketing platforms, and data strategies to improve customer shopping experiences[116] - The group plans to optimize its expansion model by concentrating on key markets, particularly in the Greater Bay Area and the Yangtze River Delta[102] - The group emphasizes a long-term approach to business, focusing on operational excellence and cultural insights to create localized commercial value[118] - The group has established a digital retail management system to drive continuous and effective business growth through data-driven decision-making[119] - The group will continue to implement a "big service system" to improve project management and service levels, aiming to provide warm and personalized services to customers[150] Employee and Market Presence - The total number of employees as of December 31, 2023, was 901, an increase from 826 in 2022[181] - As of December 31, 2023, the group has contracted to provide services for 55 commercial property projects across 21 cities in China, covering a total contracted building area of approximately 2.8 million square meters[106] - The average occupancy rate for COCO Park was 94.2% in 2023, while the overall average occupancy rate for all properties was 92.8%, an increase from 92.5% in 2022[146] - The group reported a nearly 40% year-on-year increase in foot traffic across its shopping centers in 2023, reflecting a strong consumer return to offline shopping[118] Future Outlook - The company aims to enhance its flagship product line COCO Park's brand strength in 2024, targeting a younger consumer demographic[149] - The company plans to improve member services and marketing through digitalization, aiming to enhance operational efficiency and service levels[125] - The company emphasizes a dual focus on quality and management improvement for sustainable growth in 2024[149] - The group aims to enhance its customer service system and member operations significantly in 2024, focusing on precise marketing and customer retention strategies[150]

资料来源: 公司资料, 第一上海预测 资料来源: 彭博 买入 2024 年 4 月 10 日 归母净利润同比增长 10.9%，提升派息：2023 年公司营业收入为 6.35 亿元，同比增长 13%；毛利 3.34 亿元，同比增长 6.6%；归母净利 润为 1.71 亿元，同比增长 10.9%。毛利率为 52.5%，同比下降 3.2 个 百分点，主要由于整租模式毛利率下降 7.6 个百分点（受新开业租金 减免及租赁准则影响），而品牌及输出管理模式毛利率提升 2.5 个百 分点，委托管理模式毛利率维持稳定。随着疫情结束，市场消费缓慢 复苏，公司盈利能力持续提升。公司持续加大轻资产项目应收款项催 收，全年实现经营性现金净流入 2.99 亿元，净现比为 1.75。期末在 手现金 14.37 亿元，同比增长 13%，在手现金充足。公司提升派息率 至 70%，每股派息 13 港仙，同比增长 23.8%。 在营项目表现稳健，储备充足：公司作为大湾区领先的商用物业运 营服务供应商，截至 23 年末已开业零售商业项目数量 27 个，面积达 165 万平方，筹备中项目 20 个，未来发展具备确定性。受疫情复苏、 两地通关影响，2 ...

星盛商业·公司年报点评 现金流量表 单位：百万元 | --- | --- | --- | --- | --- | |--------------------------|------------------|------------------|-------|-------| | 会计年度 | 2023A | 2024E | 2025E | 2026E | | 税后经营利润 | | 135 173 196 222 | | | | 折旧与摊销 | | 0 105 105 105 | | | | 财务费用 | | 38 -2 -3 -4 | | | | 其他经营资金 | | 126 -154 -80 -78 | | | | 经营性现金净流量 | | 299 123 219 245 | | | | 投资性现金净流量 | | 0 7 3 7 | | | | 筹资性现金净流量 | | 0 52 59 66 | | | | 现金流量净额 | | 299 181 281 318 | | | | 资料来源：同花顺 iFinD | ，平安证券研究所 | | | | | --- | --- | --- | --- | --- ...

Financial Performance - The total revenue for the year ended December 31, 2023, was RMB 635.01 million, representing a year-on-year increase from RMB 561.85 million in 2022, with a growth rate of approximately 13.0%[48]. - The group's net profit for the year ended December 31, 2023, was approximately RMB 162.3 million, an increase of about 9.0% compared to approximately RMB 148.9 million for the year ended December 31, 2022[74]. - The company's profit attributable to shareholders for the year ended December 31, 2023, was approximately RMB 171.1 million, up about 10.9% from RMB 154.3 million for the year ended December 31, 2022[167]. - The company's gross profit for the year ended December 31, 2023, was approximately RMB 333.6 million, reflecting a year-on-year increase of about 6.6%[93]. - The group's operating cash flow for the year ended December 31, 2023, was approximately RMB 299.3 million, an increase of about 84.9% compared to RMB 161.9 million for the year ended December 31, 2022[167]. Revenue Breakdown - Revenue from entrusted management services was RMB 406.37 million, accounting for 64.0% of total revenue, while brand and management output services generated RMB 145.03 million, contributing 22.8%[48]. - Revenue from entrusted management services for the year ended December 31, 2023, was approximately RMB 406.4 million, representing a year-on-year growth of about 6.5% and accounting for approximately 64.0% of total revenue[91]. - Revenue from brand and management output services for the year ended December 31, 2023, was approximately RMB 145.0 million, an increase of about 5.2% year-on-year, accounting for approximately 22.8% of the group's total revenue[65]. - Income from the leasing service model increased by approximately 97.9% year-on-year to RMB 83.61 million, driven by new projects opening in recent years[49]. Operational Metrics - The average occupancy rate for retail commercial properties was 92.8% as of December 31, 2023, slightly up from 92.5% in 2022[15]. - The company has established contracts to provide services for 55 commercial property projects, including 27 operational retail properties with a total operational area of approximately 1.7 million square meters[2]. - The company's trade receivables decreased to RMB 12,911 thousand from RMB 32,660 thousand in 2022, indicating improved collection efficiency[189]. Cost and Expenses - For the year ended December 31, 2023, the group's gross profit margin was approximately 52.5%, a decrease of about 3.2 percentage points from approximately 55.7% in the same period of 2022, primarily due to an increased revenue share from lower-margin leasing services[51]. - The gross profit margin for leasing services was approximately 7.1%, down about 7.6 percentage points from approximately 14.7% in the same period of 2022, mainly due to rent-free periods granted to merchants for newly opened leasing projects[52]. - The group's administrative expenses for the year ended December 31, 2023, were approximately RMB 75.8 million, a decrease of about 8.2% year-on-year, mainly due to reduced preparation costs for leasing projects[71]. - The company reported a total of RMB 208,642 thousand in employee costs, which is a 14.5% increase compared to RMB 182,322 thousand in 2022[185]. Strategic Plans - The company plans to enhance its customer service system and optimize its membership system to improve operational capabilities and service quality in 2024[43]. - The company aims to introduce new brands and innovative business formats to enhance project quality and attract high-quality tenants[42]. - The group plans to focus on quality improvement and strategic optimization in 2024, emphasizing product innovation and consumer experience enhancement[58]. - The company plans to allocate approximately 55% or RMB 463 million of the net proceeds for strategic acquisitions and investments in other small to medium-sized commercial property operation service providers[83]. Corporate Governance and Compliance - The company has complied with the corporate governance code and principles as outlined in the listing rules for the year ending December 31, 2023[123]. - The company aims to maintain high levels of corporate governance and compliance with statutory and regulatory requirements to maximize shareholder returns[141]. - The company's audit committee has reviewed the accounting principles and practices adopted by the group for the year ending December 31, 2023[124]. Shareholder Information - The board has proposed a final dividend of HKD 0.13 per ordinary share for the year ending December 31, 2023, subject to approval at the annual general meeting on June 7, 2024[116]. - The board proposed a final dividend of HKD 0.13 per ordinary share for the year ended December 31, 2023, with a payout ratio of approximately 70.0%[167]. - The company repurchased a total of 3,847,000 shares at a total cost of approximately HKD 5.42 million for the year ending December 31, 2023, which is expected to enhance net asset value and earnings per share[121]. Market Presence - The company is focused on expanding its market presence in the Greater Bay Area and other regions, with a strategic emphasis on high-growth potential projects[2]. - The company primarily provides commercial property management services in China, focusing on shopping centers and commercial complexes[154].

Financial Performance - The net profit attributable to the company's owners for the six months ended June 30, 2023, was RMB 96,962,000, compared to RMB 96,089,000 for the same period in 2022, representing a slight increase [10]. - The company reported overdue trade receivables totaling RMB 8,018,000 as of June 30, 2023, down from RMB 21,632,000 in 2022, indicating a significant improvement in receivables management [16]. - The total liabilities as of June 30, 2023, were RMB 200,011,000, compared to RMB 187,203,000 as of December 31, 2022, showing an increase of 6.8% [22]. - The group's revenue for the six months ended June 30, 2023, was approximately RMB 288.5 million, representing a year-on-year growth of about 11.1% [140]. - For the six months ended June 30, 2023, the group's profit was approximately RMB 92.0 million, a year-on-year decrease of about 2.5% [155]. - The core profit attributable to the owners of the company for the same period was approximately RMB 124.4 million, representing a year-on-year increase of about 12.6% [158]. - The group's gross profit for the six months ended June 30, 2023, was approximately RMB 164.6 million, representing a year-on-year growth of about 9.9% [145]. - The overall gross profit margin was approximately 57.1%, a decrease of about 0.6 percentage points compared to the same period in 2022 [146]. Dividends and Shareholder Returns - The company declared a final dividend of HKD 0.07 per share for the year ended December 31, 2022, totaling approximately HKD 71,297,000 (approximately RMB 64,802,000), which was paid on July 7, 2023 [8]. - The company has not proposed any interim dividend for the six months ending June 30, 2023 [9]. - The company did not declare an interim dividend for the six months ended June 30, 2023, compared to an interim dividend of HKD 0.035 per share for the same period in 2022 [181]. Assets and Liabilities - As of June 30, 2023, total assets amounted to RMB 1,376,912 thousand, an increase from RMB 1,322,952 thousand as of December 31, 2022, reflecting a growth of approximately 4.1% [197]. - Total liabilities were RMB 370,111 thousand, an increase from RMB 292,821 thousand, representing a growth of around 26.4% [197]. - The company's equity increased to RMB 1,204,753 thousand from RMB 1,180,703 thousand, marking a rise of about 2.0% [197]. - Trade and other payables rose to RMB 224,239 thousand, compared to RMB 208,054 thousand, reflecting an increase of approximately 7.8% [197]. - Lease liabilities increased to RMB 39,159 thousand from RMB 28,321 thousand, indicating a growth of around 38.3% [197]. Share Capital and Incentives - The weighted average number of ordinary shares used to calculate basic earnings per share was 1,016,782,000 for the six months ended June 30, 2023, slightly down from 1,018,610,000 for the same period in 2022 [10]. - The company has granted a total of 19,650,000 restricted share units during the period, with 300,000 units forfeited, resulting in 19,350,000 units remaining unexercised [33]. - The company has adopted a share incentive plan on April 17, 2023, granting a total of 54,800,000 shares to 136 eligible participants, including 19,650,000 shares to qualified participants [36]. - No stock options were granted under the stock option plan as of June 30, 2023, with a total of 100,000,000 shares available for grant, representing approximately 9.80% of the issued share capital [178]. Operational Performance - The company provides services to 58 commercial property projects across 22 cities in China, covering a total contracted area of approximately 2.95 million square meters [90]. - The average occupancy rate for retail commercial properties was 93.5% as of June 30, 2023, with COCO Park achieving 96.6% [125]. - The company aims to enhance operational performance and increase revenue through the entrusted management service model, which provides a higher level of autonomy [96]. - The company signed new commercial operation service contracts for a total of 12,000 square meters in the first half of 2023, including 7,000 square meters in Shenzhen and 5,000 square meters in Shanghai [112]. - The company is focusing on strategic and regional concentration, particularly in the Greater Bay Area and Yangtze River Delta [128]. Expenses and Costs - Selling expenses increased by approximately 208.1% to about RMB 4.9 million, primarily due to increased marketing costs for new leasing projects [150]. - Administrative expenses increased by approximately 27.5% to about RMB 35.8 million, mainly due to preparation costs for new leasing projects [151]. - Financing costs increased by approximately 312.1% to about RMB 19.1 million, primarily due to increased interest expenses related to leasing liabilities for new projects [152]. Cash Flow and Receivables - As of June 30, 2023, the group's cash and cash equivalents were approximately RMB 453.6 million, a decrease of about 6.1% compared to December 31, 2022 [160]. - The group's trade and other receivables as of June 30, 2023, were approximately RMB 26.3 million, a decrease of about 43.1% compared to December 31, 2022, due to active collection efforts [158]. - The expected credit loss reversal under the expected credit loss model for the six months ended June 30, 2023, was approximately RMB 2.4 million, compared to a net impairment loss of approximately RMB 5.2 million for the same period in 2022 [170]. Strategic Initiatives - The company is actively seeking acquisition targets but faces increased risks due to the fluctuating domestic pandemic situation and changes in the real estate market [64]. - The company’s board of directors has decided to change the intended use of the net proceeds to seize opportunities in the leasing service market [64]. - The company plans to utilize 10% of the net proceeds for general corporate purposes and working capital, amounting to RMB 84.2 million [66].

Financial Performance - Revenue for the six months ended June 30, 2023, was RMB 288,487,000, an increase of 11.1% compared to RMB 259,586,000 for the same period in 2022[3] - Gross profit for the same period was RMB 164,608,000, representing a gross margin of 57.1%, up from RMB 149,730,000 in 2022[3] - Net profit attributable to the owners of the company was RMB 96,962,000, slightly up from RMB 96,089,000 in the previous year[3] - Basic earnings per share increased to RMB 9.54 from RMB 9.43, reflecting a growth of 1.2%[3] - Other income for the period was RMB 19,556,000, slightly up from RMB 19,315,000 in the previous year[3] - The profit attributable to the owners of the company for the six months ended June 30, 2023, was RMB 96,962,000, a slight increase from RMB 96,089,000 in the same period of 2022[51] - For the six months ended June 30, 2023, the group's profit was approximately RMB 92.0 million, a year-on-year decrease of about 2.5%[162] - The core profit attributable to the company's owners for the same period was approximately RMB 124.4 million, representing a year-on-year increase of about 12.6%[162] Assets and Liabilities - Total assets as of June 30, 2023, were RMB 1,872,633,000, compared to RMB 1,849,036,000 at the end of 2022[6] - The company’s cash and cash equivalents stood at RMB 453,568,000, down from RMB 482,835,000 at the end of 2022[4] - Trade receivables as of June 30, 2023, amounted to RMB 11,794,000, reflecting a decrease from RMB 31,650,000 as of December 31, 2022[57] - Trade and other payables increased to RMB 224,239,000 as of June 30, 2023, compared to RMB 208,054,000 as of December 31, 2022[58] - The asset-liability ratio as of June 30, 2023, was approximately 46.3%, slightly up from about 44.9% on December 31, 2022[169] - The group has no bank loans or other borrowings as of June 30, 2023[168] Revenue Breakdown - The total revenue for the commercial property operation services reached RMB 271,316,000 for the six months ended June 30, 2023, representing an increase of 7.3% compared to RMB 252,804,000 for the same period in 2022[34] - The operating management services revenue decreased to RMB 169,292,000, down 3.3% from RMB 175,737,000 year-on-year[34] - The value-added services revenue increased significantly to RMB 52,774,000, up 37.7% from RMB 38,351,000 in the previous year[34] - Revenue from entrusted management services for the six months ended June 30, 2023, was RMB 189.98 million, accounting for 65.9% of total revenue, with a year-on-year increase of 0.6%[148] - Revenue from brand and management output services was RMB 63.32 million, representing a year-on-year growth of approximately 7.7% and accounting for 21.9% of total revenue[148] Operational Performance - The average occupancy rate for the group's shopping centers as of June 30, 2023, was 93.5%, compared to 92.3% in the same period of 2022[117] - The group operated a total of 58 properties with a contracted building area of 2,946,000 square meters as of June 30, 2023, compared to 65 properties with a contracted building area of 3,700,000 square meters as of December 31, 2022[133] - The group reported a total of 1,013,750 square meters of shopping center area, with 394,448 square meters of parking space, resulting in a total operational building area of 1,408,198 square meters[136] Strategic Initiatives - The company plans to expand its market presence and invest in new product development to drive future growth[3] - The group plans to enhance operational management and customer satisfaction through strategies focused on member restructuring, precision marketing, and smart retail[124] - The group aims to maintain a "one store, one policy" leasing strategy to strengthen operational management and improve project profitability and asset value[123] - The group will continue to focus on high-quality expansion, emphasizing quality over quantity in its operational models and suitable development areas[121] - The group has adjusted its strategy in response to changes in the real estate industry, resulting in the termination of contracts for five projects to focus resources on high-quality developments[88] Cost Management - The company reported a decrease in financing costs to RMB 19,094,000 from RMB 4,633,000, indicating increased financial leverage[3] - The income tax expense for the period was RMB 29,815,000, down from RMB 34,841,000 in the previous year[46] - Sales expenses for the six months ended June 30, 2023, were approximately RMB 4.9 million, a year-on-year increase of about 208.1% due to increased marketing costs for new projects[156] - Administrative expenses for the same period were approximately RMB 35.8 million, reflecting a year-on-year increase of about 27.5% due to preparation costs for new rental projects[157] Market Position and Future Outlook - The group emphasizes high-quality development and strategic focus on the Greater Bay Area and Yangtze River Delta regions[141] - The group aims to enhance brand influence by establishing new benchmark projects, including the Shenzhen Xinghe WORLD • COCO Park[143] - The group has been actively seeking acquisition targets since its listing, but faces increased risks due to the fluctuating domestic pandemic situation[171] - The board has revised the intended use of net proceeds to seize opportunities in the leasing service market, aiming for long-term sustainable income from leasing projects[171]