Financial Performance - For the six months ended June 30, 2021, the company reported revenue of RMB 1,385 million, representing a 53% increase from RMB 904 million in 2020[28]. - Gross profit for the same period was RMB 441 million, up 72% from RMB 257 million in 2020, with a gross margin of 32%, an increase of 4 percentage points[28]. - The company achieved a net profit of RMB 264 million, a 71% increase from RMB 154 million in 2020, resulting in a net profit margin of 19%, up 2 percentage points[28]. - Core profit reached RMB 271 million, reflecting a significant 110% increase from RMB 129 million in 2020, with a core profit margin of 20%, up 6 percentage points[28]. - Basic and diluted earnings per share for the period were RMB 0.22, a 29% increase from RMB 0.17 in 2020[28]. - The company achieved revenue of approximately RMB 1,384.6 million for the first half of 2021, representing a year-on-year growth of 53%[41]. - Gross profit for the same period was approximately RMB 441.3 million, with a year-on-year increase of 72%[41]. - Net profit for the first half of 2021 was approximately RMB 263.5 million, reflecting a year-on-year growth of 71%[41]. - The gross margin and net margin improved by 4 and 2 percentage points year-on-year, reaching 32% and 19% respectively[41]. Operational Expansion - The number of properties under management increased to 281, with a total managed area of 57.8 million square meters as of June 30, 2021[14]. - The company has expanded its geographical coverage to 72 cities across 24 provinces, autonomous regions, and municipalities in China[11]. - The total contracted construction area reached 82.6 million square meters as of June 30, 2021[14]. - The total contracted construction area reached 82.6 million square meters, with an increase of 11.5 million square meters compared to the end of 2020[41]. - The area under management increased to 57.8 million square meters, with a growth of 12.3 million square meters since the end of 2020[41]. - The number of managed properties reached 389, including 261 residential and 128 non-residential projects, laying a solid foundation for revenue growth[60]. - The geographical coverage expanded to 72 cities across 24 provinces, with 92% of the managed area located in first- and second-tier cities[70]. Service Offerings and Innovations - The company plans to continue enhancing its community value-added services and expand its market presence in first and second-tier cities in China[11]. - The company plans to expand into urban space cleaning and public facility management to enhance its service offerings[44]. - A collaboration agreement was reached with Ocean Capital to provide customized property management services for logistics and data centers[44]. - The company aims to enhance service quality and user satisfaction while maintaining effective scale expansion in the second half of 2021[53]. - The focus will be on community life services, rental and sales services, and space resource management to optimize business structure and improve project efficiency[51]. - The company is committed to building a digital property management system to enhance operational efficiency and customer experience[52]. - The company aims to enhance community value-added services by integrating resources and leveraging digital operations to improve service capabilities[83]. - The company has established a commercial asset management platform to provide services for shopping centers, office buildings, and other investment properties starting in the second half of 2021[63][66]. Revenue Streams - Community value-added service revenue amounted to RMB 100 million, an increase of RMB 30 million year-on-year, representing a growth of 42.9%[51]. - Community value-added service revenue reached RMB 371.8 million, a 265% increase year-on-year, contributing 27% to total revenue[75]. - The community asset value-added service accounted for 49% of community value-added service revenue, totaling RMB 183.3 million, compared to RMB 84.1 million in the previous year[76]. - Non-owner value-added service revenue was RMB 268.3 million, a 74% increase year-on-year, representing 19% of total revenue[78]. - Property engineering service revenue surged 312% year-on-year to RMB 111.8 million, driven by expansion into external clients such as major hospitals[78]. - The residential property segment accounted for 66% of total revenue, with an income of RMB 491,994 thousand from 46,912 thousand square meters managed, compared to 65% and RMB 423,067 thousand from 36,921 thousand square meters in 2020[63][67]. - The commercial property management segment saw a significant increase, with a managed area of 6.9 million square meters, up 27% from the end of 2020, and a managed area of 3.8 million square meters, up 48%[63][66]. Corporate Governance and Management - The company is committed to maintaining high levels of corporate governance, which is crucial for ensuring a clean business environment and maintaining investor confidence[165]. - The management team consists of experienced individuals, including two executive directors, two non-executive directors, and three independent non-executive directors, overseeing business performance and risk management[143]. - The board of directors has established a co-chairman structure, with Mr. Yang and Mr. Cui providing leadership and oversight of the company's overall strategy and policies[168]. - The audit committee, consisting of three independent non-executive directors, is responsible for overseeing the financial reporting process and internal control systems[169]. - The company has implemented a comprehensive risk management system to enhance operational quality and promote a good risk management culture[178]. - The risk control department is responsible for organizing and coordinating risk management efforts and developing annual risk management plans[178]. - The company has established a formal risk management organizational structure involving all levels of management and staff[178]. Financial Position and Investments - As of June 30, 2021, the total cash resources of the group were RMB 2,366.2 million, with a current ratio of 2.6, slightly down from 2.7 as of December 31, 2020[119]. - The group had no significant investments or acquisitions during the first half of 2021, and no major contingent liabilities were reported[120][123]. - The group plans to utilize the unspent IPO proceeds, which are currently held in licensed banks for short-term deposits[129]. - The net proceeds from the IPO amounted to approximately RMB 1,426.3 million, with planned allocations including 60% for strategic investments and acquisitions, 20% for upgrading smart management systems, and 10% each for enhancing digital infrastructure and general corporate purposes[129]. Community Engagement and Sustainability - The company actively engages in community development and poverty alleviation initiatives, leveraging its resources to support local residents[149]. - The company has established a platform for poverty alleviation, connecting agricultural products to communities to help increase employment and income for impoverished populations[149]. - The company is committed to sustainable development by integrating environmental, economic, and social considerations into its operational strategy[146]. - The company has implemented energy-saving measures and promotes waste classification to minimize its environmental impact[147]. - The company launched the "Enjoy Life, Plus Plan" to improve community environments and promote public health initiatives[148].

Company Overview - Sino-Ocean Service managed a total contracted gross floor area of 71.1 million square meters across 62 cities in China as of December 31, 2020[10]. - The company oversees 238 property projects, with a total managed gross floor area of 45.5 million square meters, including 184 residential communities and 54 non-residential properties[11]. - Sino-Ocean Service ranked 13th and 11th in comprehensive strength and growth potential, respectively, among the top 100 property service companies in China according to the China Index Academy[9]. - The company has a total of 185 subsidiaries and branches across 24 provinces, municipalities, and autonomous regions in China as of December 31, 2020[9]. - Sino-Ocean Service's headquarters is located in Beijing, with a strong operational base in various major cities across China[9]. Financial Performance - Total revenue for 2020 was RMB 2,023 million, an increase of 11% from RMB 1,830 million in 2019[28]. - Gross profit reached RMB 511 million, representing a 36% increase from RMB 377 million in the previous year[28]. - Net profit for the year was RMB 263 million, up 28% from RMB 205 million in 2019, with a net profit margin of 13.0%[28]. - The company’s total assets decreased by 26% to RMB 3,092 million from RMB 4,157 million in 2019[29]. - Total equity increased significantly by 366% to RMB 2,051 million from RMB 440 million in the previous year[29]. - Cash resources surged by 413% to RMB 2,175 million, compared to RMB 424 million in 2019[29]. Strategic Initiatives - The company aims to enhance its service offerings and expand its market presence through strategic initiatives and potential acquisitions[9]. - Acquired 50% stakes in Chengdu Qianhao Property Services and Beijing Yiting Port Property Services in 2020[42]. - Launched strategic cooperation agreements with major groups to enhance service offerings in various sectors[44]. - The company plans to deepen its strategic planning and execution capabilities, aiming to become a leading brand in property management services in China, focusing on user needs and enhancing service quality[67]. - The company entered into a strategic cooperation agreement with China Life Insurance, aiming to leverage resources in property services and other sectors, enhancing its management area growth[72]. Service Offerings - Sino-Ocean Service provides a variety of property management services, including community value-added services and pre-delivery services for property developers[10]. - The company plans to expand its value-added services as a core business strategy[41]. - The company is focusing on developing value-added services such as home decoration, rental agency services, and community service integration to meet diverse customer needs[74]. - Community value-added service revenue reached approximately RMB 316.2 million in 2020, an increase of RMB 78.9 million or 33.2% compared to 2019[74]. - The company is actively pursuing opportunities in non-residential markets, including service stations and tourist attractions[93]. Operational Efficiency - The company is focused on developing new technologies and services to improve operational efficiency and customer satisfaction[9]. - The company is enhancing customer satisfaction through the implementation of various digital systems, including customer relationship management and business process management systems[77]. - The company has developed a digital operation capability with multiple intelligent service platforms to create a smart property ecosystem[77]. - A new incentive mechanism has been established to boost employee motivation, linking performance evaluation and income distribution to customer satisfaction metrics[78]. - The company has maintained a strong operational performance despite challenges posed by the COVID-19 pandemic, ensuring safety and service quality for property owners[78]. Market Expansion - The company has expanded its geographical coverage from the Beijing-Tianjin-Hebei region to the Bohai Rim and other areas, primarily focusing on first- and second-tier cities in China[9]. - The geographical coverage expanded to 62 cities across 24 provinces, with 90.7% of the managed building area located in first- and second-tier cities[101]. - The Beijing-Tianjin-Hebei region accounted for 30.5% of the managed area, while the Bohai Rim region contributed 29.8%[101]. - The company plans to focus on core regions, particularly the Beijing-Tianjin-Hebei and Bohai Rim areas, while expanding into East and South China to enhance market reach[121]. Employee and Human Resources - The total number of employees increased to 5,928 as of December 31, 2020, from 5,799 in the previous year, indicating stable workforce growth[182]. - Employee welfare expenses for 2020 were approximately RMB 579.3 million, a slight decrease from RMB 595.9 million in 2019[182]. - The company has implemented a differentiated employee training and incentive program to attract and retain talent, enhancing human resource efficiency[182]. Capital and Investments - The net proceeds from the company's listing on December 17, 2020, amounted to approximately HKD 1,691.7 million (equivalent to RMB 1,426.3 million), with a net amount per share of HKD 5.72 (equivalent to RMB 4.82)[183]. - Approximately 60% or HKD 1,015.0 million of the net proceeds will be used for strategic investments and acquisitions, as well as expanding the scale of property management services[183]. - About 20% or HKD 338.3 million will be allocated to upgrade the intelligent management system for building smart communities[183]. - The remaining 10% or HKD 169.2 million will be used for working capital and general corporate purposes[183].