[Performance Highlights](index=1&type=section&id=Performance%20Highlights) This section summarizes the company's 2022 financial performance, key operational metrics, and strategic outlook. [2022 Annual Performance Overview](index=1&type=section&id=2022%20Annual%20Performance%20Overview) In 2022, total revenue slightly decreased by 1.8% to RMB 561.9 million, gross profit margin declined to 55.7%, while core profit attributable to owners increased by 6.0%. 2022 Key Financial Indicators | Indicator | 2022 | 2021 | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Revenue | RMB 561.9 million | RMB 572.2 million | -1.8% | | Gross Profit | RMB 313.0 million | RMB 330.4 million | -5.3% | | Gross Profit Margin | 55.7% | 57.7% | -2.0pp | | Profit Attributable to Owners of the Company | RMB 154.3 million | RMB 184.9 million | -16.6% | | Core Profit Attributable to Owners of the Company | RMB 198.9 million | RMB 187.6 million | +6.0% | - As of December 31, 2022, the Group's contracted GFA for commercial operation services was approximately **3.7 million sq.m.**, with **60.0%** developed or owned by independent third parties; GFA in operation was approximately **1.908 million sq.m.**[81](index=81&type=chunk) - The Board proposed a final dividend of **HKD 0.07 per share**, making the total annual dividend **HKD 0.105 per share** including the interim dividend[81](index=81&type=chunk) [Management Discussion and Analysis](index=16&type=section&id=Management%20Discussion%20and%20Analysis) This section reviews the company's 2022 business operations, strategic initiatives, and detailed financial performance. [Overview and Business Review](index=16&type=section&id=Overview%20and%20Business%20Review) The Group maintained its leading position in Greater Bay Area commercial property operations, expanding nationwide with 65 contracted projects totaling 3.7 million sq.m. - As of December 31, 2022, the Group had **65 contracted projects** covering **24 cities**, with a total contracted GFA of approximately **3.7 million sq.m.**, of which **60.0%** were developed or owned by independent third parties[160](index=160&type=chunk) - The Group possesses a comprehensive brand system, including urban "COCO Park", regional "COCO City" and "iCO", and community "COCO Garden" shopping centers[208](index=208&type=chunk) - In 2022, the Group ranked **10th** among "Top 100 Chinese Commercial Real Estate Enterprises" and received "Top 10 Chinese Commercial Real Estate Operators in 2022" awards[329](index=329&type=chunk) [Business Models](index=17&type=section&id=Business%20Models) The company offers commercial property operation services via entrusted management, brand and management output, and master lease models, each with distinct characteristics. Comparison of Three Business Models | Business Model | Role & Services | Revenue Sources | Cost Structure | Characteristics | | :--- | :--- | :--- | :--- | :--- | | **Entrusted Management Services** | Full management, including positioning, tenant sourcing, operation management, and value-added services | Fixed fees, revenue/profit sharing, management fees, value-added service fees | Bears all operating costs | High autonomy, enables ideal operational performance | | **Brand and Management Output Services** | Professional manager, dispatches core management team | Fixed fees, revenue/profit sharing | Bears only partial staff costs, owner bears main operating costs | Asset-light model, high gross profit margin, conducive to rapid regional expansion | | **Master Lease Services** | Leases properties then subleases, fully responsible for management and operation | Tenant rents, management fees, value-added service fees | Bears all operating costs and rent to property owner | Maximizes revenue, but carries higher risks | [Project Expansion and Operational Performance](index=19&type=section&id=Project%20Expansion%20and%20Operational%20Performance) In 2022, the Group added 5 third-party projects, increasing contracted area by 408,000 sq.m., while total contracted GFA decreased due to strategic terminations. - In 2022, **5 third-party commercial operation service agreements** were signed, adding **408,000 sq.m.** of contracted GFA[194](index=194&type=chunk) Changes in Contracted GFA and Project Count (as of year-end) | Indicator | 2022 | 2021 | | :--- | :--- | :--- | | Contracted Projects | 65 | 84 | | Total Contracted GFA | 3.7 million sq.m. | 3.9 million sq.m. | - The Group proactively terminated **6 projects** in 2022 to reallocate resources to high-quality projects, ensuring sustainable development[197](index=197&type=chunk) Average Occupancy Rate of Operational Retail Properties | Product Type | December 31, 2022 | December 31, 2021 | | :--- | :--- | :--- | | COCO Park | 96.0% | 98.3% | | COCO City and iCO | 91.1% | 92.4% | | Others | 94.8% | 95.0% | | **Total** | **92.5%** | **94.0%** | [2023 Work Plan](index=25&type=section&id=2023%20Work%20Plan) For 2023, the Group plans to focus on "Operation Year" initiatives, emphasizing quality, efficiency, and high-quality expansion, targeting an occupancy rate of no less than 95%. - **Focus on "Operation Year"**: Emphasizing dual improvement in quality and efficiency for high-quality development[298](index=298&type=chunk)[273](index=273&type=chunk) - **Stabilize and support merchants**: Strengthen brand reserves, introduce first-time brands and innovative formats, targeting an occupancy rate of **no less than 95%**[26](index=26&type=chunk) - **Quality openings**: Plan to complete the opening of **5-7 projects** in 2023, ensuring timely openings through a "Special Project Opening Team"[274](index=274&type=chunk) - **High-quality expansion**: Focus on acquiring premium projects in core tiered cities (4 breakthrough, 23 deep-cultivation, 8 reserve cities) under a "quality-first" strategy[300](index=300&type=chunk)[28](index=28&type=chunk)[275](index=275&type=chunk) [Financial Review](index=27&type=section&id=Financial%20Review) In 2022, total revenue slightly decreased to RMB 561.9 million, gross profit margin declined, and expenses increased, yet the company maintained a stable financial position with increased cash. [Revenue Analysis](index=27&type=section&id=Revenue%20Analysis) Total revenue decreased by 1.8% to RMB 561.9 million in 2022, driven by entrusted management growth, significant master lease expansion, and a decline in brand and management output services. 2022 Revenue Breakdown by Business Model | Business Model | 2022 Revenue (RMB thousands) | Revenue Share | 2021 Revenue (RMB thousands) | Revenue Share | Year-on-Year Change | | :--- | :--- | :--- | :--- | :--- | :--- | | Entrusted Management Services | 381,701 | 67.9% | 351,650 | 61.5% | +8.5% | | Brand and Management Output Services | 137,904 | 24.6% | 198,495 | 34.7% | -30.5% | | Master Lease Services | 42,249 | 7.5% | 22,064 | 3.8% | +91.5% | | **Total** | **561,854** | **100.0%** | **572,209** | **100.0%** | **-1.8%** | [Gross Profit and Gross Profit Margin Analysis](index=28&type=section&id=Gross%20Profit%20and%20Gross%20Profit%20Margin%20Analysis) Gross profit decreased by 5.3% to RMB 313.0 million, with overall gross profit margin falling to 55.7% due to changes in business mix and master lease services' margin decline. 2022 Gross Profit and Gross Profit Margin by Business Model | Business Model | 2022 Gross Profit (RMB thousands) | 2022 Gross Profit Margin | 2021 Gross Profit (RMB thousands) | 2021 Gross Profit Margin | | :--- | :--- | :--- | :--- | :--- | | Entrusted Management Services | 205,686 | 53.9% | 172,559 | 49.1% | | Brand and Management Output Services | 101,134 | 73.3% | 148,820 | 75.0% | | Master Lease Services | 6,219 | 14.7% | 9,053 | 41.0% | | **Total/Overall** | **313,039** | **55.7%** | **330,432** | **57.7%** | [Expense and Profit Analysis](index=28&type=section&id=Expense%20and%20Profit%20Analysis) Service, selling, administrative, and finance costs, along with expected credit losses, all increased in 2022, leading to a 19.1% decrease in profit for the year. - Service costs increased by **2.9%** year-on-year to **RMB 248.8 million**, mainly due to increased operating costs from the Jiaxing Xinghe COCO City master lease project opening[31](index=31&type=chunk) - Selling expenses increased by **41.4%** to **RMB 12.0 million**, and administrative expenses increased by **16.1%** to **RMB 82.6 million**, both related to new master lease projects[85](index=85&type=chunk)[60](index=60&type=chunk) - Finance costs surged by **503.3%** to **RMB 23.3 million**, primarily due to increased interest expenses on lease liabilities from new master lease projects[36](index=36&type=chunk) - Expected credit losses (net of reversal) increased by **108.0%** to **RMB 21.4 million**, due to higher provision rates for certain projects[59](index=59&type=chunk) - Profit for the year decreased by **19.1%** year-on-year to **RMB 148.9 million**; profit attributable to owners of the Company decreased by **16.6%** year-on-year to **RMB 154.3 million**[285](index=285&type=chunk) [Financial Position and Liquidity](index=31&type=section&id=Financial%20Position%20and%20Liquidity) As of year-end 2022, the Group's financial position remained stable, with significant growth in investment properties and an increased gearing ratio due to new master lease projects. - Investment properties increased by **1,515.0%** to **RMB 767.5 million**, mainly due to the recognition of lease assets from new Jiaxing and Xiamen master lease projects[64](index=64&type=chunk) - Bank balances and cash increased by **8.2%** to **RMB 482.8 million**, with management confident in sufficient financial resources for current operations and future expansion[91](index=91&type=chunk) - Gearing ratio significantly increased from **20.5%** (end of 2021) to **44.9%** (end of 2022), primarily due to the recognition of substantial lease assets and liabilities from master lease projects[314](index=314&type=chunk) - The Board resolved to change the use of IPO proceeds, reallocating approximately **55%** originally planned for acquisitions to lease fees and renovations under the master lease service model[68](index=68&type=chunk) [Consolidated Financial Statements](index=2&type=section&id=Consolidated%20Financial%20Statements) This section presents the company's consolidated financial statements, detailing its financial performance, position, and key accounting notes. [Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=2&type=section&id=Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) In 2022, revenue decreased to RMB 561.9 million, gross profit declined, and profit before tax fell to RMB 208.3 million, resulting in a 19.1% decrease in profit for the year. Consolidated Statement of Profit or Loss Summary (For the year ended December 31) | Item | 2022 (RMB thousands) | 2021 (RMB thousands) | | :--- | :--- | :--- | | Revenue | 561,854 | 572,209 | | Gross Profit | 313,039 | 330,432 | | Profit Before Tax | 208,345 | 252,396 | | Profit for the Year | 148,882 | 183,922 | | Profit Attributable to Owners of the Company | 154,275 | 184,924 | | Basic Earnings Per Share (RMB cents) | 15.15 | 18.48 | [Consolidated Statement of Financial Position](index=3&type=section&id=Consolidated%20Statement%20of%20Financial%20Position) As of December 31, 2022, total assets increased to RMB 2.142 billion, driven by investment properties, while total liabilities grew to RMB 961.1 million due to increased lease liabilities. Consolidated Statement of Financial Position Summary (As at December 31) | Item | 2022 (RMB thousands) | 2021 (RMB thousands) | | :--- | :--- | :--- | | **Assets** | | | | Non-current Assets | 818,905 | 112,029 | | Current Assets | 1,322,952 | 1,320,317 | | **Total Assets** | **2,141,857** | **1,432,346** | | **Liabilities** | | | | Current Liabilities | 292,821 | 230,343 | | Non-current Liabilities | 668,333 | 63,354 | | **Total Liabilities** | **961,154** | **293,697** | | **Total Equity** | **1,180,703** | **1,138,649** | [Notes to the Financial Statements (Excerpts)](index=5&type=section&id=Notes%20to%20the%20Financial%20Statements%20(Excerpts)) These notes detail the company's accounting policies, revenue breakdown, dividend distributions, and changes in trade receivables and credit loss provisions. Revenue by Operating Model Category | Operating Model | 2022 (RMB thousands) | 2021 (RMB thousands) | | :--- | :--- | :--- | | Entrusted Management Services | 381,701 | 351,650 | | Brand and Management Output Services | 137,904 | 198,495 | | Master Lease Services | 42,249 | 22,064 | | **Total** | **561,854** | **572,209** | - Total dividends distributed in 2022 amounted to **RMB 118.0 million**, comprising the 2022 interim dividend and 2021 final dividend[151](index=151&type=chunk) - Trade receivables increased from **RMB 29.14 million** in 2021 to **RMB 32.66 million** in 2022, with credit loss provisions significantly rising from **RMB 18.39 million** to **RMB 38.89 million**[153](index=153&type=chunk) [Other Company Information](index=36&type=section&id=Other%20Company%20Information) This section covers the company's dividend policy, share repurchase activities, and adherence to corporate governance standards, including the review of annual results. [Dividend Policy and Arrangements](index=36&type=section&id=Dividend%20Policy%20and%20Arrangements) The Board proposed a final dividend of HKD 0.07 per share for 2022, subject to AGM approval on June 8, 2023, with specific share transfer registration suspension dates. - The Board proposed a final dividend of **HKD 0.07 per ordinary share**[342](index=342&type=chunk) - The Annual General Meeting is scheduled for **June 8, 2023**[320](index=320&type=chunk) - Share transfer registration will be suspended from **June 5 to 8, 2023** for AGM attendance eligibility, and from **June 15 to 16, 2023** for final dividend entitlement[73](index=73&type=chunk)[344](index=344&type=chunk) [Share Repurchases](index=37&type=section&id=Share%20Repurchases) In 2022, the company repurchased 915,000 shares for approximately HKD 1.35 million, subsequently cancelled to enhance shareholder value. 2022 Share Repurchase Details | Repurchased Shares | Total Consideration (net of expenses) | Repurchase Month | Cancellation Date | | :--- | :--- | :--- | :--- | | 915,000 shares | Approximately HKD 1.35 million | November 2022 | January 17, 2023 | [Corporate Governance and Performance Review](index=37&type=section&id=Corporate%20Governance%20and%20Performance%20Review) The company maintains high corporate governance standards, with directors complying with securities trading codes, and the audit committee, along with Deloitte, reviewing annual results. - The company has adopted and complied with the **Model Code for Securities Transactions by Directors** under the Listing Rules[322](index=322&type=chunk) - The company's Audit Committee has reviewed the annual results[325](index=325&type=chunk) - Auditor Deloitte confirmed that the financial data in the preliminary announcement aligns with the audited consolidated financial statements[78](index=78&type=chunk)

Company Overview - As of June 30, 2022, the group provided services to 92 commercial property projects across 29 cities in China, covering a total contracted gross floor area of approximately 4.2 million square meters[6]. - The group operates 25 retail commercial properties with a total operational gross floor area of about 1.9 million square meters[6]. - The group was ranked 10th among the "Top 100 Commercial Real Estate Enterprises in China" and 6th among the "Top 10 Commercial Real Estate Operation Enterprises in China" as of March 2022[6]. - The group has a comprehensive brand system, including urban shopping centers "COCO Park" and community shopping centers "COCO Garden" targeting different consumer demographics[7]. Operational Models - The group employs three operational models: entrusted management, brand and management output, and whole leasing, allowing for varied levels of involvement in property management[8]. - The entrusted management model allows for higher autonomy in managing projects, potentially leading to better operational performance and increased revenue[14]. - The brand and management output model enables rapid geographic expansion with generally higher gross margins due to lower capital and human resource requirements[18]. - The company operates under three service models: entrusted management, brand and management output, and whole rental services, with the whole rental service model contributing to a contracted area of 279,000 square meters as of June 30, 2022, up from 199,000 square meters in the previous year[27]. Financial Performance - For the six months ended June 30, 2022, the company's revenue was approximately RMB 259.6 million, representing a year-on-year growth of about 0.8%[61]. - Revenue from entrusted management services was approximately RMB 188.8 million, a year-on-year increase of about 10.4%, accounting for approximately 72.7% of total revenue[62]. - The gross profit for the six months ended June 30, 2022, was approximately RMB 149.7 million, reflecting a year-on-year growth of about 2.6%[67]. - The overall gross margin increased to approximately 57.7%, up from about 56.7% in the same period of 2021, marking an increase of approximately 1.0%[69]. - For the six months ended June 30, 2022, the group's profit was approximately RMB 94.4 million, representing a year-on-year increase of about 14.4%[84]. Growth and Expansion - As of June 30, 2022, the total contracted building area reached approximately 4.2 million square meters, an increase from 3.5 million square meters as of June 30, 2021, representing a growth of 20.6%[27]. - The number of properties under management increased to 92 as of June 30, 2022, compared to 69 properties as of June 30, 2021, reflecting a growth of 33.3%[27]. - The company aims to achieve a target of no less than 700,000 square meters of contracted area for the year 2022[49]. - The company is focusing on expanding in first and second-tier cities, identifying 8 first-tier and 28 second-tier cities for future projects[48]. Revenue Sources - Revenue sources include fixed fees for consulting services, a percentage of income or profit from operational management, and management fees from tenants[13]. - The company has a diverse client base, including tenants and clients related to value-added services, generating revenue from rent, management fees, and public space usage fees[23]. - The Greater Bay Area projects account for 59 properties with a contracted construction area of 1,671,000 square meters, contributing RMB 213,091,000 in revenue, which is 82.1% of the total[36]. Cash and Assets - As of June 30, 2022, the group's cash and cash equivalents and time deposits were approximately RMB 1,310.9 million, an increase of about 4.0% compared to December 31, 2021[88]. - The total assets as of June 30, 2022, amounted to RMB 1,831,228 thousand, compared to RMB 1,202,003 thousand as of December 31, 2021[150]. - The investment property value surged to RMB 657,537 thousand from RMB 47,524 thousand, indicating significant asset growth[150]. Dividends and Share Capital - The company declared an interim dividend of HKD 0.035 per ordinary share for the six months ended June 30, 2022, compared to HKD 0 for the same period in 2021[137]. - The total issued share capital of the company was 1,020,039,000 ordinary shares as of June 30, 2022[119]. - The profit attributable to the company's owners for the six months ended June 30, 2022, was RMB 96,089,000, compared to RMB 83,065,000 for the same period in 2021, representing a year-on-year increase of approximately 15.4%[183]. Challenges and Strategic Focus - Since the fourth quarter of 2021, the real estate market has been sluggish, leading to significant valuation discrepancies during negotiations for potential acquisitions[101]. - The company has decided to shift the focus from potential acquisitions to long-term rental opportunities to ensure sustainable revenue[102]. - The company plans to maintain quality while promoting scalable expansion in the second half of 2022[48]. Employee and Governance - As of June 30, 2022, the total number of employees increased to 457 from 436 as of December 31, 2021[108]. - The company has adhered to corporate governance codes and regulations to maximize shareholder returns and enhance transparency[116]. - The interim financial information for the six months ending June 30, 2022, has been reviewed by the auditors and complies with applicable accounting standards[118].

Business Operations - As of December 31, 2021, the company provided services to 84 commercial property projects, covering 25 cities in China, with a total contracted gross floor area of approximately 3.9 million square meters[4]. - The occupancy rate of the company's properties maintained a healthy level of 94% in 2021, with same-store sales increasing by approximately 21% compared to 2020[19]. - The number of cooperative merchants exceeded 4,300, achieving a positive cycle of brand leasing, operational enhancement, and sales growth[19]. - The company has established a comprehensive and widely recognized brand system, including various shopping center formats such as "COCO Park" and "COCO City" targeting different consumer demographics[4]. - The company has successfully navigated challenges during its first year of listing, establishing a solid foundation for long-term development[19]. - The company is committed to enhancing its organizational structure, market expansion, and operational capabilities to support future growth[19]. - The company aims to create exceptional value for consumers, partners, and shareholders by focusing on competitive products and services[5]. - The company has a strategic focus on new consumption, new services, and new technologies as key drivers for future growth[19]. - The company aims to develop benchmark projects in various regions, such as Guangzhou Health Port COCO Park and Xiamen COCO Park, to meet high-quality living and shopping demands[25]. - The company conducted over 100 live broadcasts during the pandemic, accumulating over 3 million online followers, enhancing its operational capabilities[27]. Financial Performance - In 2021, the company achieved revenue of approximately RMB 572.2 million, representing a year-on-year growth of about 29.5%[21]. - The profit attributable to shareholders was approximately RMB 184.9 million, reflecting a year-on-year increase of approximately 45.8%[21]. - The total revenue from continuing operations for the year ended December 31, 2021, was RMB 572.2 million, representing a significant increase compared to RMB 442.0 million in 2020[70]. - The company's gross profit for the fiscal year was approximately RMB 330.4 million, reflecting a year-on-year growth of about 32.9%[103]. - The gross profit margin increased to 57.7%, up approximately 1.4 percentage points from 56.3% in the previous year[104]. - Other income increased by approximately 168.9% to about RMB 31.1 million, primarily due to increased bank interest income[105]. - The company's net profit for the fiscal year was approximately RMB 183.9 million, a year-on-year increase of about 44.2%[115]. - Revenue from entrusted management services was approximately RMB 351.7 million, accounting for about 61.5% of total revenue, with a year-on-year increase of approximately 13.9%[96]. - Revenue from brand and management output services was approximately RMB 198.5 million, accounting for about 34.7% of total revenue, with a year-on-year increase of approximately 74.2%[97]. Market Expansion and Strategy - The company has a strategic focus on regional expansion, particularly in the Greater Bay Area, with 57 projects in that region alone[36]. - The Greater Bay Area accounted for 86.5% of the total revenue, with a total contracted area of 1.6 million square meters[70]. - The company aims to achieve a target of no less than 700,000 square meters of contracted area in 2022, focusing on first and second-tier cities for expansion[84]. - A total of 8 projects are planned for grand openings in 2022, with a dedicated team established to ensure timely launches[85]. - The company targets a rental rate of no less than 95% in 2022 through a tiered leasing mechanism and strategic partnerships[88]. - The company plans to enhance sales growth by improving member operations and developing sales support plans for merchants[88]. - The company will focus on creating 1-2 unique features for each project to enhance quality and attractiveness[89]. - Marketing campaigns will be strategically planned to meet the increasingly personalized consumer demands, aiming to boost both foot traffic and sales[89]. Corporate Governance - The company was listed on the Hong Kong Stock Exchange on January 26, 2021, issuing 250 million new shares at an offer price of HKD 3.86 per share[176]. - The company has adopted the corporate governance code and has complied with all applicable provisions since its listing date[178]. - The company emphasizes the importance of good corporate governance to enhance investor confidence and accountability[177]. - The company has arranged appropriate liability insurance for its directors and senior management, which is reviewed annually[189]. - The company’s management structure separates the roles of the chairman and the CEO, with Mr. Huang Delin as chairman and Mr. Tao Muming as CEO[188]. - All independent non-executive directors confirmed their independence in accordance with Listing Rule 3.13, and the company considers them to be independent individuals[197]. - Each executive director has entered into a service contract with the company for an initial period of 3 years from the date of listing[198]. - Non-executive directors and independent non-executive directors have signed appointment letters with the company for an initial period of 3 years from the date of listing[199]. - The company held two general meetings during the year ended December 31, 2021[195]. Innovation and Future Outlook - The company plans to explore innovative community business models and various cooperation modes in 2022 to enhance operational efficiency and profitability[90]. - The company aims to develop a series of benchmark projects with regional and urban influence, focusing on new consumption trends and opportunities for long-term growth[91]. - The company is investing in R&D for new technologies, allocating $D million towards innovation initiatives[156]. - Market expansion plans include entering E new regions, aiming for a market share increase of F% in those areas[156]. - The company is considering strategic acquisitions to enhance its market position, with potential targets identified[156]. - A new marketing strategy is being implemented, expected to increase brand awareness by G% over the next year[156]. - The management team emphasized the importance of sustainability initiatives, with a budget of $I million allocated for green technology development[156].

Business Operations - As of June 30, 2021, the group provided services to 69 commercial property projects, covering 24 cities in China, with a total contracted gross floor area of approximately 3.5 million square meters[5]. - The group operates 22 retail commercial properties with a total operational gross floor area of about 1.7 million square meters[5]. - The group was ranked 13th in the "Top 100 Chinese Commercial Real Estate Enterprises" and 7th in the "Top 10 Chinese Commercial Property Operation Enterprises" in 2021[5]. - The group has a comprehensive brand system including urban shopping centers "COCO Park" and community shopping centers "COCO Garden" targeting different consumer demographics[6]. - The company has established five regional business units to expand its operations into the Yangtze River Delta and other economically developed cities in the central and western regions[30]. - The company plans to enhance its operational quality while expanding its business scale, focusing on high-quality expansion in the Greater Bay Area and entering the Southwest market[42]. - The company aims to actively seek acquisition targets that meet its internal standards for commercial property operation service providers[42]. Operational Models - The group employs three operational models: entrusted management, brand and management output, and full leasing services, each with varying levels of management involvement[7][19]. - The entrusted management model allows the group to have a high level of autonomy in managing projects, which is believed to enhance operational performance and increase revenue[12]. - The brand and management output model generally results in higher gross margins and facilitates rapid regional expansion due to lower capital and human resource requirements[16]. - The full leasing service model involves the group leasing commercial properties from owners and subleasing to tenants, taking full responsibility for management and operational performance[19]. - The company is focusing on diversifying its operational models, including entrusted management, brand management, and overall leasing, to acquire more commercial properties[42]. Financial Performance - The company's revenue for the six months ended June 30, 2021, was RMB 257.4 million, an increase of 27.8% compared to RMB 201.4 million for the same period in 2020[49]. - Revenue from entrusted management services was RMB 171.0 million, a growth of 21.2% from RMB 141.1 million in the previous year, driven by successful operations of newly opened projects[50]. - Revenue from brand and management output services reached RMB 74.0 million, up 44.2% from RMB 51.3 million in 2020, attributed to increased project operations and a rise in consultancy service offerings[51]. - The company's gross profit for the six months ended June 30, 2021, was RMB 145.9 million, a 29.2% increase from RMB 112.9 million in the same period last year[55]. - The gross profit margin improved to 56.7%, up 0.7 percentage points from 56.0% in 2020, mainly due to a higher proportion of revenue from higher-margin brand and management output services[56]. - The company's profit for the six months ended June 30, 2021, was RMB 82.5 million, representing a 40.3% increase from approximately RMB 58.8 million in the same period of 2020[70]. - The company reported a profit before tax of RMB 113,607,000, up from RMB 80,529,000 in the previous year, indicating a year-over-year increase of 40.9%[114]. - Net profit attributable to the owners of the company for the period was RMB 83,065,000, compared to RMB 58,084,000 in 2020, marking a growth of 42.9%[114]. Revenue Sources - The revenue from the Greater Bay Area for the six months ended June 30, 2021, was RMB 223.1 million, accounting for 86.7% of total revenue, compared to RMB 365.3 million for the entire year of 2020, which was 82.7% of total revenue[32]. - The total contracted building area in the Greater Bay Area was 1.38 million square meters, with 44 properties, contributing significantly to the company's revenue[32]. - Customer contract revenue accounted for RMB 249,629 thousand, up from RMB 196,313 thousand in the previous year[137]. - The total revenue from commercial property operation services was RMB 249,629,000, an increase of 27.1% compared to RMB 196,313,000 for the same period in 2020[139]. Cash Flow and Assets - As of June 30, 2021, the group's cash and cash equivalents were approximately RMB 416.2 million, a 193.8% increase from approximately RMB 141.7 million as of December 31, 2020, attributed to proceeds from the global offering and increased operating income[76]. - The net cash generated from operating activities for the six months ended June 30, 2021, was RMB 46,183,000, compared to RMB 23,464,000 for the same period in 2020, reflecting a 96.5% increase[121]. - The company reported a total equity of RMB 1,028,062,000 as of June 30, 2021, up from RMB 163,255,000 at the end of 2020, indicating a substantial growth in shareholder value[118]. - The total assets minus current liabilities amounted to RMB 1,094,638,000, a significant increase from RMB 232,678,000 as of December 31, 2020[116]. Expenses and Liabilities - The group's administrative expenses for the six months ended June 30, 2021, were RMB 26.2 million, a 6.9% increase from approximately RMB 24.5 million in the same period of 2020, mainly due to increased employee costs and routine administrative activities as a result of the COVID-19 pandemic recovery[67]. - The total employee costs rose to RMB 72,151,000, reflecting a 35% increase from RMB 53,432,000 in the same period of 2020[153]. - The total trade and other payables as of June 30, 2021, were RMB 132,905,000, a decrease from RMB 170,233,000 as of December 31, 2020, representing a reduction of approximately 22%[172]. - The group had no contingent liabilities as of June 30, 2021[75]. Shareholder Information - As of June 30, 2021, the total issued share capital was 1,020,640,000 ordinary shares[98]. - Major shareholders included Mr. Huang with a total of 600,000,000 shares, representing 58.79% of the issued share capital[109]. - The company did not recommend any interim dividend for the six months ended June 30, 2021, consistent with the previous year[111]. - The company declared dividends totaling RMB 50,574,000 for the year 2020, with a distribution of HKD 0.045 per share for ordinary shares[153]. Strategic Initiatives - The company plans to enhance its operational management capabilities and digital platform construction to drive efficiency and support scalable development[46]. - The company is committed to a brand strategy and digital transformation to improve operational efficiency and customer experience[48]. - The company plans to expand its operations through strategic partnerships and joint ventures in the Chinese market[200]. Compliance and Governance - The company has established an audit committee to review the interim report, ensuring compliance with applicable accounting standards[97]. - The management collaborates closely with independent valuation professionals to ensure appropriate valuation techniques and input data for financial reporting[196]. - The company has established a framework for measuring the fair value of financial instruments using observable market data[196].

E-STAR COMMERCIAL MANAGEMENT COMPANY LIMITED 星盛商業管理股份有限公司 （於開曼群島註冊成立的有限公司） 股份代號：6668 目 錄 | 集團簡介 | 2 | | --- | --- | | 公司資料 | 3 | | 獎項 | 4 | | 主席報告 | 6 | | 業務概覽 | 8 | | 管理層討論與分析 | 9 | | 董事及高級管理層 | 21 | | 企業管治報告 | 27 | | 董事會報告 | 37 | | 獨立核數師報告 | 50 | | 綜合損益及其他全面收益表 | 54 | | 綜合財務狀況表 | 55 | | 綜合權益變動表 | 57 | | 綜合現金流量表 | 59 | | 綜合財務報表附註 | 61 | | 四年財務摘要 | 124 | 集團簡介 星盛商業管理股份有限公司（「星盛商業」或「本公司」）連同其附屬公司（「本集團」）是大灣區領先的商用物業運營服務供應商，並 具有全國佈局。截至2020年12月31日，本集團訂立合約以向53個商用物業項目提供服務，覆蓋中國20個城市，總合約建築面 積（「建築面積」）約3.28百萬平方米，當中61.6%由 ...