香港交易及結算所有限公司及香港聯合交易所有限公司對本公告之內容概不 負 責，對 其 準 確 性 或 完 整 性 亦 不 發 表 任 何 聲 明，並 明 確 表 示，概 不 對 因 本 公 告 全部或任何部分內容而產生或因倚賴該等內容而引致之任何損失承擔任何責 任。 有關須予披露及關連交易的補充公告 茲提述卓越商企服務集團有限公司（「本公司」，連 同 其 附 屬 公 司 統 稱「本集團」） 日期為2025年8月25日的公告（「該公告」），內 容 有 關（其 中 包 括）本集團向卓越集 團 收 購 資 產 組 合，作 為 結 算 卓 越 集 團 應 付 本 集 團 若 干 未 償 還 貿 易 應 收 款 項 及 其 他 應 收 款 項 的 代 價。除 另 有 界 定 者 外，本 公 告 所 用 詞 彙 與 該 公 告 及 補 充 公 告 所 界 定 者 具 有 相 同 涵 義。 除 該 公 告 所 披 露 的 資 料 外，本 公 司 謹 此 補 充 以 下 詳 細 資 料，內 容 有 關 卓 越 集 團 向 本 集 團 轉 讓 抵 銷 資 產，作 為 結 算 卓 越 集 團 應 付 本 集 團 若 干 未 償 還 ...

股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 截至月份: 2025年9月30日 狀態: 新提交 致：香港交易及結算所有限公司 公司名稱: 卓越商企服務集團有限公司 呈交日期: 2025年10月3日 I. 法定/註冊股本變動 | 1. 股份分類 | 普通股 | 股份類別 | 不適用 | | | 於香港聯交所上市 (註1) | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 06989 | 說明 | | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | 法定/註冊股本 | | | 上月底結存 | | | 5,000,000,000 | HKD | | 0.01 HKD | | 50,000,000 | | 增加 / 減少 (-) | | | 0 | | | HKD | | 0 | | 本月底結存 | | | 5,000,000,000 | HKD | | 0.01 HKD | | 50,000,000 | 本月底法定/註冊股本總額： HKD 50, ...

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不 負 責，對 其 準 確 性 或 完 整 性 亦 不 發 表 任 何 聲 明，並 明 確 表 示，概 不 就 因 本 公 告 全部或任何部分內容而產生或因依賴該等內容而引致的任何損失承擔任何責 任。 EXCELLENCE COMMERCIAL PROPERTY & FACILITIES MANAGEMENT GROUP LIMITED 卓越商企服務集團有限公司 由 於 本 公 司 需 要 更 多 時 間 編 製 及 落 實 若 干 資 料 以 供 載 入 通 函，通 函 及 股 東 特 別大會通告預期將於2025年10月31日 或 之 前 寄 發 予 股 東。 承董事會命 （於 開 曼 群 島 註 冊 成 立 的 有 限 公 司） （股 份 代 號：6989） 卓越商企服務集團有限公司 延遲寄發通函 董事長 茲提述卓越商企服務集團有限公司（「本公司」）日期為2025年8月25日的公告（「該 公 告」），內 容 有 關 須 予 披 露 及 關 連 交 易。除 另 有 指 明 外，本 公 告 所 用 詞 彙 與 該 公 告 所 界 定 者 具 有 ...

[Company Information](index=2&type=section&id=2%20Company%20Information) This section details the company's board and committee structures, legal and audit advisors, and key contact information [Board of Directors and Committees](index=3&type=section&id=Board%20of%20Directors%20and%20Committees) This section outlines the composition of the Board of Directors, including executive, non-executive, and independent non-executive directors, along with members of key committees - Executive Directors include Mr. Li Xiaoping (Chairman) and Mr. Yang Zhidong[6](index=6&type=chunk) - Independent Non-executive Directors include Professor Cui Haitao (Chairman), Mr. Gan Zhicheng, and Ms. Liu Xiaolan[6](index=6&type=chunk) - Joint Company Secretary Ms. Cheng Shuhua was appointed from August 26, 2025, with Mr. Zhang Qichang resigning on the same date[6](index=6&type=chunk) [Legal Advisors and Auditor](index=3&type=section&id=Legal%20Advisors%20and%20Auditor) This section identifies the company's legal advisors in Hong Kong and China, along with its auditor, KPMG - The company's auditor is KPMG[7](index=7&type=chunk) - Hong Kong legal advisor is Dechert LLP[6](index=6&type=chunk) - China legal advisors include Guangdong Putian Ge Law Firm and Dentons (Shenzhen) Law Offices[6](index=6&type=chunk) [Company Contact Information](index=4&type=section&id=Company%20Contact%20Information) This section provides the company's key contact and registration details, including headquarters, principal place of business, stock code, website, and investor relations email - The company's stock code is **6989**[10](index=10&type=chunk) - The company's website is http://www.excepm.com[10](index=10&type=chunk) - The investor relations email is ir@exceam.com[10](index=10&type=chunk) [Management Discussion and Analysis](index=5&type=section&id=4%20Management%20Discussion%20and%20Analysis) This section provides a comprehensive review of the group's business performance, financial results, core competencies, and future outlook [Business Review](index=5&type=section&id=Business%20Review) In the first half of 2025, the Group maintained steady operations and growth by optimizing its business structure, diversifying value-added services, and advancing digital transformation despite economic pressures - The Group adheres to a long-term development strategy, operating steadily, continuously optimizing its business structure, and reducing reliance on related businesses[12](index=12&type=chunk) - Embracing the concept of synergistic development of strategic three pillars and core capabilities, the Group focuses on commercial property services and diversifies value-added services[12](index=12&type=chunk) - The Group is committed to digital transformation, building core competitiveness, and exploring industry and company changes based on customer pain points and market demands[12](index=12&type=chunk) [I. Business Overview](index=5&type=section&id=I.%20Business%20Overview) As a leading commercial real estate service operator in China, the Group offers comprehensive asset maintenance and service solutions, encompassing basic property management and diversified value-added services - The Group's main businesses include basic property management services, value-added services, and other related businesses[13](index=13&type=chunk) - Basic property management services cover various business types, including commercial, public and industrial, and residential properties[13](index=13&type=chunk) - Key development areas for value-added services include asset services, Zhuopin commercial general administrative services, and M&E services[18](index=18&type=chunk) [II. Performance Summary](index=8&type=section&id=II.%20Performance%20Summary) In the first half of 2025, the company achieved stable operating performance, met budget targets, saw robust third-party business growth, and optimized its value-added service structure - In the first half of 2025, the company's overall operating performance was stable and positive, meeting budget targets, and maintaining steady growth in third-party business and advantages in the commercial property sector[22](index=22&type=chunk) Revenue Contribution by Business Type (H1 2025) | Business Type | Contribution | | :--- | :--- | | Commercial Property | 61.1% | | Public and Industrial Property | 10.0% | | Residential Property | 18.3% | | Value-added Services | 9.7% | | Other Services | 0.9% | Business Scale Growth | Metric | 2025 (Thousand sq.m.) | 2024 (Thousand sq.m.) | Y-o-Y Growth | | :--- | :--- | :--- | :--- | | Contracted GFA | 82,500 | 80,097 | 3.0% | | GFA Under Management | 74,284 | 68,120 | 9.0% | | Third-party GFA Under Management Contribution | 62.7% | - | - | Changes in GFA Under Management (Thousand sq.m.) | Metric | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | At beginning of period | 72,200 | 64,066 | | Newly signed | 4,524 | 6,784 | | Terminated | (2,440) | (2,730) | | At end of period | 74,284 | 68,120 | - Strategic client contract retention rate was close to **100.0%**, with strategic client revenue reaching **RMB 507.7 million**, a **30.2% year-on-year increase** compared to the same period in 2024[34](index=34&type=chunk) GFA Under Management and Revenue Details (Six Months Ended June 30) | Business Type | 2025 GFA Under Management (Thousand sq.m.) | 2025 Revenue (RMB Thousand) | 2024 GFA Under Management (Thousand sq.m.) | 2024 Revenue (RMB Thousand) | | :--- | :--- | :--- | :--- | :--- | | Commercial Property | 32,195 | 1,229,380 | 27,335 | 1,110,517 | | －Excellence Group | 3,050 | 339,252 | 3,050 | 367,079 | | －Third-party Property Developers | 29,145 | 890,128 | 24,285 | 743,438 | | Public and Industrial Property | 14,290 | 201,016 | 14,737 | 275,294 | | Residential Property | 27,799 | 369,386 | 26,048 | 328,165 | | **Total** | **74,284** | **1,799,782** | **68,120** | **1,713,796** | [Core Competency Analysis](index=12&type=section&id=Core%20Competency%20Analysis) The Group's core competencies, including strong brand image, comprehensive service standards, strategic talent development, and ongoing digital transformation, reinforce its leading position in commercial property services - Awarded industry honors such as "2025 China Property Service Top 100 Enterprises (TOP11)" and "2025 China IFM Service Excellent Enterprises (TOP2)", and received a Wind ESG rating of **"AA"**[38](index=38&type=chunk) - Certified with multiple management systems including ISO9001, ISO14001, ISO45001, ISO50001, ISO41001, and is a BOMA Platinum Member, IFMA Gold Member, and RICS Member[39](index=39&type=chunk) - Established a comprehensive talent management system, cultivating talent through "New Wing Management Trainee," "Zhuo Jiang," and "Zhuo Yue Program," covering **over 2,800 key positions** for training in H1 2025[42](index=42&type=chunk) - Steadfastly advancing digital transformation, completing the initial 1.0 phase with core business systems deployed, achieving integrated business and finance management and refined operations[44](index=44&type=chunk) [Future Outlook](index=14&type=section&id=Future%20Outlook) The Group aims to become China's leading commercial real estate service operator by integrating strategic pillars with digital transformation, focusing on growth and core capability building for sustainable value creation - The Group's vision is to be "China's leading commercial real estate service operator," with a strategic direction of "combining strategic three pillars and digital transformation"[45](index=45&type=chunk) - Foundations are solidified through "organizational building, business development, and capability building," supported by "value distribution and management culture" as driving forces[45](index=45&type=chunk) [I. Strategic Planning](index=14&type=section&id=I.%20Strategic%20Planning) The Group's strategic planning aims to establish it as China's leading commercial real estate service operator, integrating strategic pillars with digital transformation, supported by organizational, business, and capability building - The Group consistently pursues the vision of becoming "China's leading commercial real estate service operator," adhering to the strategic direction of "combining strategic three pillars and digital transformation"[45](index=45&type=chunk) - Foundations are solidified through "organizational building, business development, and capability building," supported by "value distribution and management culture" as driving forces[45](index=45&type=chunk) [II. Business Development Strategy](index=14&type=section&id=II.%20Business%20Development%20Strategy) The company will pursue a long-term strategy for independent market development, focusing on strategic clients, diversified value-added services, new sector breakthroughs, and digital capability building to enhance efficiency - Adhering to a multi-engine business strategy, the Group deepens strategic client relationships, expands multi-channel resources, and increases market share[46](index=46&type=chunk) - In new business areas, the Group will build diversified business segments across public construction, new consumption, and commercial retail[47](index=47&type=chunk) - In value-added services, leveraging an integrated platform, the Group continuously optimizes service processes and provides customized service solutions[48](index=48&type=chunk) - Digital capability building is a key focus for the company's core capabilities, integrating internal systems, optimizing business processes, and building a digital platform[50](index=50&type=chunk)[51](index=51&type=chunk) [II. Financial Review](index=16&type=section&id=II.%20Financial%20Review) In H1 2025, total revenue decreased by **3.2%** to **RMB 2,015.15 million**, driven by a **43.7% decline** in value-added services, while net profit and margin also fell, and loans receivable significantly reduced due to financial services divestment - For the six months ended June 30, 2025, the Group's revenue was **RMB 2,015.15 million**, a **3.2% decrease** compared to the same period last year[52](index=52&type=chunk) Revenue Composition and Changes (Six Months Ended June 30) | Business Type | 2025 (RMB Thousand) | 2025 (%) | 2024 (RMB Thousand) | 2024 (%) | Change (RMB Thousand) | Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Property Management Services | 1,799,782 | 89.4 | 1,713,976 | 82.3 | 85,806 | 5.0 | | Value-added Services | 196,401 | 9.7 | 349,147 | 16.8 | (152,746) | (43.7) | | Other Businesses | 18,962 | 0.9 | 19,355 | 0.9 | (393) | 2.0 | | **Total Revenue** | **2,015,145** | **100.0** | **2,082,478** | **100.0** | **(67,333)** | **(3.2)** | - Value-added service revenue decreased by **43.7%**, primarily due to the reduction in M&E installation business and a decrease in leasing operation services provided[55](index=55&type=chunk)[56](index=56&type=chunk) Gross Profit and Gross Profit Margin Details (Six Months Ended June 30) | Business Type | 2025 Gross Profit (RMB Thousand) | 2025 Gross Profit Margin (%) | 2024 Gross Profit (RMB Thousand) | 2024 Gross Profit Margin (%) | Gross Profit Margin Change (Percentage Points) | | :--- | :--- | :--- | :--- | :--- | :--- | | Basic Property Management Services | 314,775 | 17.5 | 317,516 | 18.5 | (1.0) | | Value-added Services | 45,634 | 23.2 | 86,917 | 24.9 | (1.7) | | Other Businesses | 18,652 | 98.4 | 17,734 | 91.6 | 6.8 | | **Total** | **379,061** | **18.8** | **422,167** **(1.5)** | **20.3** | | - Net profit was **RMB 162.31 million**, a **11.7% decrease** year-on-year; profit attributable to equity holders of the company was **RMB 146.99 million**, a **13.8% decrease**[73](index=73&type=chunk) - Net profit margin was **8.1%** (H1 2024: 8.8%)[74](index=74&type=chunk) - Loans receivable were approximately **RMB zero**, a decrease of approximately **RMB 629.45 million** from December 31, 2024, primarily due to the divestment of the financial services business segment[81](index=81&type=chunk) - As of June 30, 2025, the Group's cash and cash equivalents were **RMB 689.34 million**, a **26.3% decrease** from December 31, 2024[91](index=91&type=chunk) [Corporate Governance / Other Information](index=23&type=section&id=22%20Corporate%20Governance%20%2F%20Other%20Information) This section details corporate governance practices, IPO proceeds utilization, significant investments, employee policies, share option schemes, and post-reporting period events [Use of Proceeds from Listing](index=23&type=section&id=Use%20of%20Proceeds%20from%20Listing) The company utilized approximately **RMB 2,333.8 million (84.5%)** of its **RMB 2,760.4 million** net listing proceeds by June 30, 2025, primarily for business expansion, talent development, and IT system development - Total net proceeds from listing were approximately **HKD 3,359.5 million (RMB 2,760.4 million)**[94](index=94&type=chunk) - As of June 30, 2025, approximately **RMB 2,333.8 million** of net proceeds had been utilized, representing **84.5%**, with **RMB 426.6 million** remaining unutilized[94](index=94&type=chunk) Planned and Actual Use of Listing Proceeds (As of June 30, 2025) | Main Category | Revised Planned Use Amount (RMB Million) | Actual Amount Utilized as of June 30, 2025 (RMB Million) | | :--- | :--- | :--- | | Business Expansion | 1,518.2 | 610.5 | | Development of Information Technology Systems | 82.8 | 6.7 | | Facility Upgrades for Properties Under Management | 110.4 | 28 | | Talent Acquisition and Cultivation | 496.9 | 244.8 | | General Corporate Purposes | 552.1 | 61.5 | - The estimated utilization period for the reallocated unutilized net proceeds is before **December 31, 2026**[99](index=99&type=chunk) [Significant Investments Held, Major Acquisitions and Disposals of Subsidiaries, Associates and Joint Ventures](index=26&type=section&id=Significant%20Investments%20Held%2C%20Major%20Acquisitions%20and%20Disposals%20of%20Subsidiaries%2C%20Associates%20and%20Joint%20Ventures) During the reporting period, the Group divested its financial services business, with no other significant investments, acquisitions, or disposals, and entered a settlement agreement post-period - During the reporting period, the Group divested its financial services business[101](index=101&type=chunk) - On August 24, 2025, Shenzhen Excellence Property Management Co., Ltd. entered into a settlement agreement with Excellence Real Estate Group Co., Ltd[102](index=102&type=chunk) [Employees and Remuneration Policy](index=26&type=section&id=Employees%20and%20Remuneration%20Policy) As of June 30, 2025, the Group employed **18,991** full-time staff in China and **88** in India, offering competitive remuneration packages including salaries, allowances, bonuses, and social benefits - As of June 30, 2025, the Group had a total of **18,991** and **88** full-time employees in China and India, respectively (December 31, 2024: 17,787 and 86 employees)[104](index=104&type=chunk) - The Group provides competitive remuneration packages to employees, including directors' fees, salaries, allowances and benefits in kind, bonuses, provident fund contributions, and social welfare[104](index=104&type=chunk) [Share Option Schemes](index=26&type=section&id=Share%20Option%20Schemes) The company's 2020 share option scheme has not granted any options, and all pre-IPO options adopted in 2020 lapsed by June 30, 2025, due to unfulfilled vesting conditions - The company's share option scheme was approved and adopted on September 28, 2020, and no share options have been granted under the scheme from the adoption date up to the date of this report[105](index=105&type=chunk) - The remaining term of the share option scheme is approximately **4 years**[106](index=106&type=chunk) - The pre-IPO share option scheme was approved and adopted on September 9, 2020, but as of June 30, 2025, all share options had lapsed due to unfulfilled vesting conditions[111](index=111&type=chunk) [Interim Dividend](index=29&type=section&id=Interim%20Dividend) The Board does not recommend an interim dividend for the six months ended June 30, 2025, prioritizing capital for business operations to ensure long-term stability and enhance shareholder value - The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2025[116](index=116&type=chunk) - This decision aims to prioritize capital investment in business operations to maintain long-term stable operations and continuous enhancement of shareholder value[116](index=116&type=chunk) [Corporate Governance Practices](index=29&type=section&id=Corporate%20Governance%20Practices) The Group maintains high corporate governance standards, complying with all applicable Listing Rules, and its Audit Committee has reviewed and approved accounting principles and interim results - The company has consistently complied with all applicable code provisions of the Corporate Governance Code[118](index=118&type=chunk) - The Audit Committee has reviewed and approved the accounting principles and practices adopted by the Group, and has reviewed the unaudited condensed consolidated interim results for the six months ended June 30, 2025[123](index=123&type=chunk) [Directors' and Major Shareholders' Interests](index=31&type=section&id=Directors'%20and%20Major%20Shareholders'%20Interests) As of June 30, 2025, directors and major shareholders held interests in the company's shares, with Mr. Li Xiaoping holding **9.68%** via spouse's interest and Mr. Li Hua holding **59.20%** via controlled corporation interest Directors' Interests in the Company's Shares (As of June 30, 2025) | Director's Name | Capacity/Nature of Interest | Number of Shares Held | Approximate Percentage | | :--- | :--- | :--- | :--- | | Mr. Li Xiaoping | Spouse's Interest | 118,120,000 | 9.68% | | | Beneficial Owner | 272,000 | 0.02% | | Ms. Guo Ying | Beneficial Owner | 75,000 | 0.01% | Major Shareholders' Interests in Shares (As of June 30, 2025) | Shareholder's Name/Entity | Capacity/Nature of Interest | Number of Shares Held | Approximate Percentage | | :--- | :--- | :--- | :--- | | Mr. Li Hua | Controlled Corporation Interest | 722,440,000 | 59.20% | | Dongrun Holdings Group Co., Ltd. | Controlled Corporation Interest | 722,440,000 | 59.20% | | Urban Hero Investments Limited | Beneficial Owner | 722,440,000 | 59.20% | | Ms. Xiao Xingping | Controlled Corporation Interest | 117,900,000 | 9.66% | | | Beneficial Owner | 220,000 | 0.02% | | | Spouse's Interest | 272,000 | 0.02% | | Ever Rainbow Holdings Limited | Beneficial Owner | 117,900,000 | 9.66% | | Mr. Li Yuan | Controlled Corporation Interest | 63,000,000 | 5.16% | | Autumn Riches Limited | Beneficial Owner | 63,000,000 | 5.16% | [Events After Reporting Period](index=33&type=section&id=Events%20After%20Reporting%20Period) Post-reporting period, the Group entered a settlement agreement for conditional asset acquisition and received a final court judgment confirming joint and several guarantee liability for a loan dispute - On August 24, 2025, Shenzhen Excellence Property Management Co., Ltd. entered into a settlement agreement with Excellence Real Estate Group Co., Ltd[131](index=131&type=chunk) - In August 2025, the Beijing High People's Court issued a final judgment on the Beijing Global dispute, ruling that the Group is jointly and severally liable for the loan principal and interest[131](index=131&type=chunk) [Review Report to the Board of Directors of Excellence Commercial Property & Facilities Management Group Limited](index=34&type=section&id=33%20Review%20Report%20to%20the%20Board%20of%20Directors%20of%20Excellence%20Commercial%20Property%20%26%20Facilities%20Management%20Group%20Limited) KPMG reviewed the interim financial report for the six months ended June 30, 2025, finding no material non-compliance with Hong Kong Accounting Standard 34 - KPMG has reviewed the interim financial report published on pages 34 to 60[133](index=133&type=chunk) - The scope of review is significantly smaller than an audit, thus it cannot guarantee that all material matters discoverable in an audit would be known, and therefore no audit opinion is expressed[134](index=134&type=chunk) - Based on the review, no matters were found to indicate that the interim financial report for the six months ended June 30, 2025, was not prepared in all material respects in accordance with Hong Kong Accounting Standard 34 – "Interim Financial Reporting"[135](index=135&type=chunk) [Consolidated Statement of Profit or Loss](index=35&type=section&id=34%20Consolidated%20Statement%20of%20Profit%20or%20Loss) This consolidated statement presents the financial performance for the six months ended June 30, 2025, with a profit of **RMB 162.31 million** and basic earnings per share of **RMB 12.05 cents** Key Data from Consolidated Statement of Profit or Loss (Six Months Ended June 30) | Metric | 2025 (RMB Thousand) | 2024 (RMB Thousand) | | :--- | :--- | :--- | | Revenue | 1,996,183 | 2,063,123 | | Cost of sales | (1,635,774) | (1,659,585) | | Gross profit | 360,409 | 403,538 | | Operating profit | 207,930 | 222,596 | | Profit before tax | 211,383 | 227,674 | | Income tax expense | (53,783) | (42,016) | | Profit for the period (continuing operations) | 157,600 | 185,658 | | Profit for the period (discontinued operations) | 4,706 | (1,859) | | **Profit for the period** | **162,306** | **183,799** | | Attributable to equity holders of the Company | 146,992 | 170,499 | | Non-controlling interests | 15,314 | 13,300 | | Basic earnings per share (RMB cents) | 12.05 | 13.97 | [Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=36&type=section&id=35%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) This consolidated statement presents the total comprehensive income for the six months ended June 30, 2025, which was **RMB 162.61 million**, including profit for the period and exchange differences Key Data from Consolidated Statement of Profit or Loss and Other Comprehensive Income (Six Months Ended June 30) | Metric | 2025 (RMB Thousand) | 2024 (RMB Thousand) | | :--- | :--- | :--- | | Profit for the period | 162,306 | 183,799 | | Other comprehensive income (Exchange differences) | 308 | 424 | | **Total comprehensive income for the period** | **162,614** | **184,223** | | Attributable to equity holders of the Company | 147,300 | 170,923 | | Non-controlling interests | 15,314 | 13,300 | [Consolidated Statement of Financial Position](index=37&type=section&id=36%20Consolidated%20Statement%20of%20Financial%20Position) This consolidated statement presents the financial position as of June 30, 2025, with total assets of **RMB 5,346.26 million** and total equity of **RMB 3,887.81 million**, noting a significant increase in trade and other receivables and zero loans receivable Key Data from Consolidated Statement of Financial Position (As of June 30) | Metric | 2025 (RMB Thousand) | December 31, 2024 (RMB Thousand) | | :--- | :--- | :--- | | **Non-current assets** | | | | Property, plant and equipment | 41,332 | 52,936 | | Right-of-use assets | 670,823 | 589,306 | | Intangible assets | 268,770 | 287,857 | | Goodwill | 225,287 | 225,287 | | Interests in associates | 51,546 | 52,861 | | Interests in joint ventures | 164,346 | 11,280 | | Deferred tax assets | 97,234 | 97,898 | | **Total non-current assets** | **1,519,338** | **1,317,425** | | **Current assets** | | | | Inventories | 416,991 | 295,338 | | Trade and other receivables | 2,428,282 | 1,808,575 | | Loans receivable | – | 629,449 | | Cash and cash equivalents | 689,337 | 935,434 | | **Total current assets** | **3,826,922** | **3,822,768** | | **Current liabilities** | | | | Contract liabilities | 168,830 | 145,758 | | Trade and other payables | 1,043,494 | 944,354 | | Financial guarantees issued | 72,433 | 72,433 | | Lease liabilities | 6,891 | 8,852 | | Current taxation | 99,074 | 97,686 | | **Total current liabilities** | **1,390,722** | **1,269,083** | | **Non-current liabilities** | | | | Lease liabilities | 3,668 | 5,681 | | Deferred tax liabilities | 64,064 | 67,916 | | **Total non-current liabilities** | **67,732** | **73,597** | | **Total equity** | **3,887,806** | **3,797,513** | [Consolidated Statement of Changes in Equity](index=39&type=section&id=38%20Consolidated%20Statement%20of%20Changes%20in%20Equity) This consolidated statement details equity changes for the six months ended June 30, 2025, with total equity increasing by **2.4%** to **RMB 3,887.81 million**, primarily driven by profit for the period Key Data from Consolidated Statement of Changes in Equity (Six Months Ended June 30) | Metric | 2025 (RMB Thousand) | 2024 (RMB Thousand) | | :--- | :--- | :--- | | Balance at beginning of period | 3,797,513 | 3,652,696 | | Profit for the period | 162,306 | 183,799 | | Other comprehensive income | 308 | 424 | | Total comprehensive income | 162,614 | 184,223 | | Dividends declared to non-controlling interests | (1,619) | (10,825) | | Final dividend declared for previous year | (70,744) | (75,569) | | **Balance at end of period** | **3,887,806** | **3,750,525** | [Condensed Consolidated Statement of Cash Flows](index=41&type=section&id=40%20Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) This condensed consolidated statement shows a net decrease of **RMB 245.71 million** in cash and cash equivalents for the six months ended June 30, 2025, mainly due to outflows from operating and investing activities Key Data from Condensed Consolidated Statement of Cash Flows (Six Months Ended June 30) | Metric | 2025 (RMB Thousand) | 2024 (RMB Thousand) | | :--- | :--- | :--- | | Net cash used in operating activities | (9,623) | (594,100) | | Net cash used in investing activities | (229,698) | (464,132) | | Net cash used in financing activities | (6,389) | (19,436) | | **Net decrease in cash and cash equivalents** | **(245,710)** | **(1,077,668)** | | Cash and cash equivalents at January 1 | 935,434 | 2,156,703 | | Cash and cash equivalents at June 30 | 689,337 | 1,079,136 | [Notes to the Unaudited Interim Financial Report](index=41&type=section&id=41%20Notes%20to%20the%20Unaudited%20Interim%20Financial%20Report) This section provides detailed notes to the unaudited interim financial report, covering accounting policies, non-continuing operations, revenue, profit before tax, income tax, and financial instruments [1 Basis of Preparation](index=42&type=section&id=1%20Basis%20of%20Preparation) This interim financial report is prepared in accordance with HKAS 34 and Listing Rules, and has been reviewed by KPMG, though it remains unaudited - This interim financial report has been prepared in accordance with the applicable disclosure provisions of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited and Hong Kong Accounting Standard 34 "Interim Financial Reporting" issued by the Hong Kong Institute of Certified Public Accountants[150](index=150&type=chunk) - This interim financial report is unaudited but has been reviewed by KPMG in accordance with Hong Kong Standard on Review Engagements 2410[151](index=151&type=chunk) [2 Changes in Accounting Policies](index=42&type=section&id=2%20Changes%20in%20Accounting%20Policies) The Group applied HKAS 21 amendments regarding exchange rate changes, which had no significant impact on this interim report as no non-exchangeable foreign currency transactions occurred - The Group has applied the amendments to Hong Kong Accounting Standard 21 "The Effects of Changes in Foreign Exchange Rates – Lack of Exchangeability" issued by the Hong Kong Institute of Certified Public Accountants to the interim financial report for the current accounting period[152](index=152&type=chunk) - As the Group has not entered into any foreign currency transactions where one foreign currency is not exchangeable into another, these amendments have no significant impact on this interim announcement[152](index=152&type=chunk) [3 Discontinued Operations](index=43&type=section&id=3%20Discontinued%20Operations) The Group divested its financial services business for **RMB 337.79 million** in equity, commercial apartments, and cash, resulting in a post-tax profit of **RMB 4.71 million** - The Group entered into an equity agreement with Excellence Group to dispose of its entire equity interest in certain wholly-owned subsidiaries ("Disposal"), for a total consideration of **RMB 337,789,000**[154](index=154&type=chunk) - The consideration was settled by equity interest in Shenzhen Excellence Real Estate Investment Co., Ltd., certain commercial apartments, and cash[154](index=154&type=chunk) - Profit/(loss) for the period from discontinued operations, net of tax, was **RMB 4,706 thousand** (2024: (RMB 1,859) thousand)[155](index=155&type=chunk) - Impact of the Disposal on the Group's financial position: net cash inflow of **RMB 52,970 thousand**[157](index=157&type=chunk) [4 Revenue and Segment Reporting](index=45&type=section&id=4%20Revenue%20and%20Segment%20Reporting) The Group's revenue primarily stems from basic property management services (**RMB 1,799.78 million**) and value-added services (**RMB 184.28 million**), with a decrease in revenue from Excellence Group and other related parties Revenue from Contracts with Customers by Major Category (Six Months Ended June 30) | Revenue Source | 2025 (RMB Thousand) | 2024 (RMB Thousand) | | :--- | :--- | :--- | | Basic property management services | 1,799,782 | 1,713,976 | | Value-added services | 184,284 | 349,147 | | Car park sales | 12,117 | – | | Financial services income (discontinued operations) | 18,962 | 19,355 | | **Total** | **2,015,145** | **2,082,478** | - For the six months ended June 30, 2025, revenue from Excellence Real Estate Group Co., Ltd. and its subsidiaries and other related parties was **RMB 162,451,000** (six months ended June 30, 2024: RMB 262,334,000)[160](index=160&type=chunk) - The Group manages its business through two reportable segments: property management services and financial services (disposed of in 2025)[163](index=163&type=chunk) [5 Profit Before Tax](index=48&type=section&id=5%20Profit%20Before%20Tax) Profit before tax is reported after accounting for finance costs, depreciation, amortization, impairment losses, and subcontracting costs, with finance costs significantly decreasing due to reduced borrowings Finance Costs (Six Months Ended June 30) | Item | 2025 (RMB Thousand) | 2024 (RMB Thousand) | | :--- | :--- | :--- | | Interest on bank loans | – | 615 | | Interest on lease liabilities | 233 | 364 | | **Total** | **233** | **979** | Depreciation and Amortization Expenses (Six Months Ended June 30) | Item | 2025 (RMB Thousand) | 2024 (RMB Thousand) | | :--- | :--- | :--- | | Owned property, plant and equipment | 5,313 | 8,089 | | Right-of-use assets for property, plant and equipment | 5,462 | 7,360 | | Right-of-use assets for car parks | 9,413 | – | | Intangible assets | 20,301 | 25,092 | | **Total** | **40,489** | **40,541** | - Impairment losses on receivables and financial guarantees issued were **RMB 31,084 thousand** (2024: RMB 23,990 thousand)[169](index=169&type=chunk) - Subcontracting costs were **RMB 328,421 thousand** (2024: RMB 308,328 thousand)[169](index=169&type=chunk) [6 Income Tax](index=49&type=section&id=6%20Income%20Tax) Income tax expense for the six months ended June 30, 2025, increased to **RMB 53.78 million**, mainly due to deferred tax asset recognition in 2024, with Chinese subsidiaries subject to 25% or preferential 15% corporate income tax rates Income Tax Expense (Six Months Ended June 30) | Item | 2025 (RMB Thousand) | 2024 (RMB Thousand) | | :--- | :--- | :--- | | Current tax | 63,357 | 67,950 | | Deferred tax | (9,574) | (25,934) | | **Total** | **53,783** | **42,016** | - The increase in income tax expense was primarily due to the recognition of deferred tax assets in 2024 arising from unused tax losses expected to be utilized based on future business plans[71](index=71&type=chunk) - The Group's principal PRC subsidiaries are subject to Corporate Income Tax at a statutory rate of **25%** on their respective assessable income, with some enjoying a preferential income tax rate of **15%**[172](index=172&type=chunk) [7 Basic Earnings Per Share](index=50&type=section&id=7%20Basic%20Earnings%20Per%20Share) For the six months ended June 30, 2025, profit attributable to equity holders was **RMB 146.99 million**, resulting in basic earnings per share of **RMB 12.05 cents**, based on **1,220,348,000** weighted average ordinary shares - Basic earnings per share is calculated based on the profit attributable to equity holders of the Company of **RMB 146,992,000** for the six months ended June 30, 2025, and the weighted average of **1,220,348,000** ordinary shares in issue[173](index=173&type=chunk) - For the six months ended June 30, 2025, and June 30, 2024, the Group had no potentially dilutive ordinary shares in issue[173](index=173&type=chunk) [8 Right-of-Use Assets and Other Property, Plant and Equipment](index=50&type=section&id=8%20Right-of-Use%20Assets%20and%20Other%20Property%2C%20Plant%20and%20Equipment) For the six months ended June 30, 2025, the Group recognized an **RMB 2.08 million** increase in right-of-use assets for leased properties and acquired car park right-of-use assets for **RMB 90.93 million** from Excellence Group - For the six months ended June 30, 2025, the Group entered into several lease agreements for office space and dormitories, recognizing an increase in right-of-use assets for self-occupied leased properties of **RMB 2,082,000**[174](index=174&type=chunk) - The Group entered into multiple right-of-use transfer agreements to acquire right-of-use assets for car parks from Excellence Group for a consideration of **RMB 90,930,000**[174](index=174&type=chunk) [9 Interests in Joint Ventures](index=50&type=section&id=9%20Interests%20in%20Joint%20Ventures) For the six months ended June 30, 2025, the Group acquired a **50%** equity interest in Shenzhen Excellence Real Estate Investment Co., Ltd. for **RMB 151.48 million**, as part of the non-monetary consideration for a subsidiary disposal - For the six months ended June 30, 2025, the Group acquired a **50%** equity interest in Shenzhen Excellence Real Estate Investment Co., Ltd. for a total consideration of **RMB 151,478,000**[176](index=176&type=chunk) - This was part of the non-monetary consideration for the disposal of a subsidiary as described in Note 3[176](index=176&type=chunk) [10 Inventories](index=51&type=section&id=10%20Inventories) As of June 30, 2025, total inventories were **RMB 416.99 million**, primarily properties held for sale, with the increase mainly attributed to commercial apartments from the financial services business disposal Inventories (As of June 30) | Item | 2025 (RMB Thousand) | December 31, 2024 (RMB Thousand) | | :--- | :--- | :--- | | Properties held for sale | 403,553 | 292,059 | | Others | 13,438 | 3,279 | | **Total** | **416,991** | **295,338** | - Properties held for sale include certain commercial apartments amounting to **RMB 103,325,000**, which was part of the non-monetary consideration for the disposal of a subsidiary as described in Note 3[178](index=178&type=chunk) [11 Trade and Other Receivables](index=51&type=section&id=11%20Trade%20and%20Other%20Receivables) As of June 30, 2025, net trade and other receivables increased by **RMB 619.70 million** to **RMB 2,428.28 million**, driven by revenue growth and the disposal of financial services business - As of June 30, 2025, the Group's net trade and other receivables were approximately **RMB 2,428.28 million**, an increase of approximately **RMB 619.70 million** from December 31, 2024[80](index=80&type=chunk) - Net trade receivables increased by approximately **RMB 251.03 million**, and net other receivables increased by approximately **RMB 369.54 million**, due to the disposal of the financial services business[80](index=80&type=chunk) - Other receivables from related parties primarily include outstanding loans of **RMB 300,000,000** and dividends receivable from a disposed subsidiary of **RMB 27,059,000**[180](index=180&type=chunk) Ageing Analysis of Trade Receivables (Net of Loss Allowance) (As of June 30) | Ageing | 2025 (RMB Thousand) | 2024 (RMB Thousand) | | :--- | :--- | :--- | | Within 1 year | 1,380,463 | 1,155,913 | | 1 to 2 years | 286,914 | 278,443 | | 2 to 3 years | 49,201 | 31,194 | | **Total** | **1,716,578** | **1,465,550** | [12 Loans Receivable](index=52&type=section&id=12%20Loans%20Receivable) As of June 30, 2025, loans receivable decreased significantly to **RMB zero** from **RMB 629.45 million** at year-end 2024, due to the divestment of the financial services business - As of June 30, 2025, the Group's loans receivable were approximately **RMB zero**, a decrease from approximately **RMB 629.45 million** as of December 31, 2024[81](index=81&type=chunk) - This was primarily due to the Group's divestment of its financial services business segment during the reporting period, with all loans receivable sold as part of the disposal of a subsidiary[81](index=81&type=chunk)[182](index=182&type=chunk) [13 Financial Assets Measured at Fair Value Through Profit or Loss](index=53&type=section&id=13%20Financial%20Assets%20Measured%20at%20Fair%20Value%20Through%20Profit%20or%20Loss) As of June 30, 2025, financial assets measured at fair value through profit or loss increased to **RMB 176.42 million**, primarily comprising wealth management products and other investment products Financial Assets Measured at Fair Value Through Profit or Loss (As of June 30) | Item | 2025 (RMB Thousand) | December 31, 2024 (RMB Thousand) | | :--- | :--- | :--- | | Wealth management products | 140,214 | 30,195 | | Other investment products | 36,202 | – | | **Total** | **176,416** | **30,195** | - The fair value of wealth management products is determined based on the expected rates of return stipulated in the relevant contracts with counterparties[184](index=184&type=chunk) - Other investment products refer to investments in public money market funds, whose fair value is determined based on valuation reports provided by fund managers[185](index=185&type=chunk) [14 Restricted Deposits and Cash and Cash Equivalents](index=53&type=section&id=14%20Restricted%20Deposits%20and%20Cash%20and%20Cash%20Equivalents) As of June 30, 2025, restricted deposits totaled **RMB 108.72 million**, while cash and cash equivalents decreased by **26.3%** to **RMB 689.34 million**, primarily due to investment product and right-of-use asset purchases Restricted Deposits (As of June 30) | Item | 2025 (RMB Thousand) | December 31, 2024 (RMB Thousand) | | :--- | :--- | :--- | | Cash collected on behalf of owners' committees | 25,738 | 24,572 | | Housing maintenance funds received | 24,882 | 21,023 | | Cash frozen due to litigation | 44,014 | 57,426 | | Other restricted deposits | 14,086 | 15,836 | | **Total** | **108,720** | **118,857** | Cash and Cash Equivalents (As of June 30) | Item | 2025 (RMB Thousand) | December 31, 2024 (RMB Thousand) | | :--- | :--- | :--- | | Cash on hand | 542 | 645 | | Deposits with banks and other financial institutions | 688,795 | 934,789 | | **Total** | **689,337** | **935,434** | - As of the end of the reporting period, cash and cash equivalents held in Mainland China amounted to **RMB 671,527,000** (December 31, 2024: RMB 924,281,000)[188](index=188&type=chunk) [15 Trade and Other Payables](index=55&type=section&id=15%20Trade%20and%20Other%20Payables) As of June 30, 2025, total trade and other payables increased by **RMB 99.14 million** to **RMB 1,043.49 million**, primarily due to dividends payable to equity holders and funds collected for owners' committees Trade and Other Payables (As of June 30) | Item | 2025 (RMB Thousand) | December 31, 2024 (RMB Thousand) | | :--- | :--- | :--- | | Trade payables | 463,769 | 414,587 | | Other payables | 70,699 | 64,443 | | Consideration payable for business combinations | 15,437 | 15,437 | | Dividends payable to equity holders of the Company | 69,952 | – | | Dividends payable to non-controlling interests | 6,205 | 6,205 | | Cash collected on behalf of owners' committees | 25,738 | 24,572 | | Housing maintenance funds held on behalf of owners | 24,882 | 21,023 | | Financial liabilities measured at amortized cost | 676,682 | 546,267 | | Accrued salaries and other benefits | 200,922 | 233,197 | | Deposits | 133,738 | 129,877 | | Accrued expenses | 32,152 | 35,013 | | **Total** | **1,043,494** | **944,354** | - Trade payables primarily refer to amounts payable for subcontracting services such as cleaning, security, landscaping, engineering materials or facilities, and maintenance services provided by suppliers, as well as amounts related to facility or car park leases[190](index=190&type=chunk) Ageing Analysis of Trade Payables (As of June 30) | Ageing | 2025 (RMB Thousand) | 2024 (RMB Thousand) | | :--- | :--- | :--- | | Within 1 month | 139,448 | 136,439 | | 1 to 3 months | 165,607 | 141,990 | | 3 to 6 months | 58,996 | 37,466 | | 6 to 12 months | 42,453 | 25,223 | | Over 12 months | 57,265 | 73,469 | | **Total** | **463,769** | **414,587** | [16 Financial Guarantees Issued](index=56&type=section&id=16%20Financial%20Guarantees%20Issued) As of June 30, 2025, financial guarantees issued remained at **RMB 72.43 million**, primarily for a seller's loan, with a final court judgment in August 2025 confirming the Group's joint and several liability for the loan - Financial guarantees issued amounted to **RMB 72,433 thousand** (December 31, 2024: RMB 72,433 thousand)[192](index=192&type=chunk) - Beijing Global provided a guarantee for a seller's loan with a principal of **RMB 183,433,000**[192](index=192&type=chunk) - In August 2025, the Beijing High People's Court issued a final judgment, ruling that the Group is jointly and severally liable for the principal and interest of the aforementioned loan[192](index=192&type=chunk) [17 Capital and Dividends](index=57&type=section&id=17%20Capital%20and%20Dividends) The company's issued and paid-up share capital remained unchanged, with no interim dividend recommended for H1 2025, though a final dividend of **HKD 6.28 cents (RMB 5.80 cents)** per ordinary share was approved for the prior year - Issued and fully paid share capital consists of **1,220,348,000** ordinary shares of **HKD 0.01** each[194](index=194&type=chunk) - Interim dividend declared after the interim period was **zero HK cents** (2024: HKD 7.66 cents per ordinary share)[195](index=195&type=chunk) - A final dividend for the previous financial year of **HKD 6.28 cents** (equivalent to **RMB 5.80 cents**) per ordinary share, totaling **RMB 70,744 thousand**, was approved during the period[195](index=195&type=chunk) [18 Fair Value Measurement of Financial Instruments](index=58&type=section&id=18%20Fair%20Value%20Measurement%20of%20Financial%20Instruments) The Group's financial instruments are primarily classified as Level 2 for fair value measurement, encompassing wealth management and other investment products, with no transfers between levels during the six months ended June 30, 2025 - The Group's financial instruments are classified as Level 2 for fair value measurement, including wealth management products and other investment products[199](index=199&type=chunk) - For the six months ended June 30, 2025, there were no transfers between Level 1 and Level 2, nor any transfers into or out of Level 3[199](index=199&type=chunk) - The fair value of wealth management products is the estimated amount the Group would receive upon selling the products at the end of the reporting period, taking into account current interest rates[200](index=200&type=chunk) [19 Commitments](index=60&type=section&id=19%20Commitments) Total unfulfilled commitments not yet provided for in the interim financial report amounted to **RMB 12.73 million**, mainly for authorized but uncontracted acquisitions of property, plant, equipment, and intangible assets Commitments (As of June 30) | Item | 2025 (RMB Thousand) | December 31, 2024 (RMB Thousand) | | :--- | :--- | :--- | | Authorized but not contracted – acquisition of property, plant and equipment | 1,782 | 11,132 | | Authorized but not contracted – acquisition of intangible assets | 10,944 | 13,867 | | **Total** | **12,726** | **24,999** | [20 Contingent Liabilities](index=60&type=section&id=20%20Contingent%20Liabilities) The Group faces a contingent liability from an arbitration notice concerning a **40%** equity acquisition, for which no provision has been recognized due to an unreliable outcome estimate - Shenzhen Excellence Property Management Co., Ltd., an indirect wholly-owned subsidiary of the Company, received an arbitration notice from the Shanghai Arbitration Commission regarding a dispute over the acquisition of a **40%** equity interest in a project company[204](index=204&type=chunk) - The applicant claimed **RMB 20.8 million** in liquidated damages and other fees from the disposed subsidiary and Excellence Property Management[205](index=205&type=chunk) - As the outcome of the arbitration cannot be reliably estimated, no provision has been recognized for the arbitration[204](index=204&type=chunk) [21 Significant Related Party Transactions](index=61&type=section&id=21%20Significant%20Related%20Party%20Transactions) The Group engaged in significant related party transactions with Excellence Group, including providing property management and value-added services, procuring maintenance, leasing properties, and acquiring IT system support - For the six months ended June 30, 2025, the Group provided property management services and value-added services to Excellence Group and other related parties, with revenues of **RMB 109,380,000** and **RMB 53,071,000**, respectively[209](index=209&type=chunk) - The Group purchased IT system support services from Excellence Group for **RMB 9,405,000**[209](index=209&type=chunk) - The Group entered into lease agreements for certain leased properties from its related parties, with rent payable amounting to **RMB 11,952,000**[209](index=209&type=chunk) [22 Non-Adjusting Events After Reporting Period](index=61&type=section&id=22%20Non-Adjusting%20Events%20After%20Reporting%20Period) Post-reporting period, the Group entered a settlement agreement for conditional asset acquisition and received a civil judgment confirming joint and several guarantee liability for a loan dispute - On August 24, 2025, Shenzhen Excellence Property Management Co., Ltd. entered into a settlement agreement with Excellence Real Estate Group Co., Ltd. for the conditional acquisition of offsetting assets[209](index=209&type=chunk) - In August 2025, the Group received a civil judgment from the court regarding the Beijing Global dispute, confirming joint and several guarantee liability[209](index=209&type=chunk)

股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 截至月份: 2025年8月31日 狀態: 新提交 第 1 頁 共 10 頁 v 1.1.1 FF301 II. 已發行股份及/或庫存股份變動 致：香港交易及結算所有限公司 公司名稱: 卓越商企服務集團有限公司 呈交日期: 2025年9月2日 I. 法定/註冊股本變動 | 1. 股份分類 | 普通股 | 股份類別 | 不適用 | | 於香港聯交所上市 (註1) | | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 06989 | 說明 | | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | 法定/註冊股本 | | | 上月底結存 | | 5,000,000,000 | | HKD | | 0.01 HKD | | 50,000,000 | | 增加 / 減少 (-) | | | 0 | | | HKD | | 0 | | 本月底結存 | | | 5,000,000,000 | HKD | | 0. ...

Core Insights - The company is facing a "growth dilemma" with both revenue and profit declining despite some recovery in the property management sector [1] - The decline in value-added services, which were previously a key growth area, has negatively impacted overall performance [1][2] - The company has opted not to distribute interim dividends due to ongoing cash flow challenges [2] Revenue and Profit Summary - For the first half of 2025, the company reported revenue of 2.015 billion yuan, a year-on-year decrease of 3.2% [1] - Basic property management service revenue increased by 5.0% to 1.8 billion yuan, accounting for approximately 89.4% of total revenue [1] - Value-added service revenue dropped from 349 million yuan in 2024 to 196 million yuan, a decline of 43.7%, representing about 9.7% of total revenue [1] - Gross profit for the first half of 2025 was 379 million yuan, down 10.2% year-on-year, while net profit fell by 11.7% to 162 million yuan [2] Cash Flow and Financial Position - The company has experienced a marginal improvement in operating cash flow, which remains negative at -10 million yuan for the first half of 2025 [2] - The board has decided against paying interim dividends to prioritize operational capital for long-term stability [2] - A significant transaction involving the transfer of assets worth 363 million yuan from a related party has raised concerns about the company's reliance on its affiliates [3][4] Related Party Transactions - The company entered into a settlement agreement with a related party, involving the conditional transfer of assets to offset debts [3] - This transaction is seen as a "debt repayment alternative" due to the ongoing financial strain in the real estate market [3][5] - While the transaction reduces accounts receivable by 363 million yuan, it does not provide actual cash inflow, leaving the company’s cash flow situation unchanged [4] Business Structure and Strategy - The company is making efforts to reduce its dependence on related parties, with third-party managed property area increasing to 62.7% [5][6] - Non-affiliated business revenue has risen to 92%, with third-party self-developed income growing by 26.9% [5] - The company views the acquired assets as strategically valuable, aiming to leverage them for better asset management in a challenging market [6]

Core Insights - The company reported a revenue of approximately 2.015 billion yuan and a net profit attributable to shareholders of 147 million yuan for the first half of 2025, indicating stable performance in core business operations [1] - The revenue from third-party basic property services (excluding acquired companies) reached about 933 million yuan, representing a year-on-year growth of 26.9% [1] Group 1: Business Performance - The company focuses on building digital capabilities, expanding service ecosystems, and promoting ESG sustainable development to establish a differentiated competitive advantage for long-term growth [1] - Significant progress has been made in the construction of smart parks, communities, and platforms, with the deployment of numerous devices and systems for real-time monitoring and analysis of equipment operation data [1] - The ability to monitor equipment data in real-time has effectively reduced unexpected asset depreciation and failures, lowered operational costs, and improved the stability and efficiency of building operations [1] Group 2: Service and Product Development - The company continues to enhance its product and service matrix, creating an ecosystem service system that includes corporate administration, community retail, space resources, and commercial planning and management, thereby increasing customer expectations and satisfaction with value-added services [1] - The mechanical and electrical business strategy focuses on healthy cash flow through government-enterprise cooperation projects, leveraging core business to promote regional collaboration and actively exploring the small-scale rectification and engineering operation and maintenance market [1] Group 3: New Business Initiatives - In new business areas, the company is closely following industry trends, rapidly enhancing professional service capabilities, integrating quality resources, and expanding into public construction, education, and commercial retail sectors, particularly in first-tier and new first-tier cities [2] - The company successfully acquired projects in first-tier cities, including commercial complexes and high-end office buildings, through a "commercial management + property management" full-chain service model, continuously enhancing asset value [2]

Core Viewpoint -卓越商企服务集团 reported strong financial performance for the first half of 2025, demonstrating resilience and growth in its core business despite market fluctuations [1][2]. Financial Performance - The company achieved revenue of approximately RMB 2.015 billion, with a gross profit of RMB 379 million and a net profit attributable to shareholders of RMB 147 million [1]. - Third-party basic property service revenue (excluding acquired companies) grew by 26.9% year-on-year to RMB 933 million, indicating robust core business performance [1]. Business Scale and Client Base - The total contracted property area reached 82.5 million square meters, a year-on-year increase of 3.0%, while the managed area grew by 9.0% to 74.28 million square meters [1]. - The proportion of third-party managed area reached 62.7%, reflecting the company's strong market position [1]. - The company maintained a near 100% retention rate for strategic client contracts, with strategic client revenue reaching approximately RMB 508 million, a 30.2% increase compared to the same period in 2024 [2]. Digital Transformation and Service Diversification - The company focused on digital capability development, launching six key business systems covering core modules such as work orders, revenue, and human resources during the reporting period [2]. - Significant progress was made in smart park and community construction, enhancing operational efficiency and reducing costs through real-time monitoring and analysis of equipment data [2]. - The service product matrix was diversified, enhancing customer satisfaction and expectations for value-added services [3]. ESG and Sustainable Development - The company's ESG management has been continuously optimized, with its Wind ESG rating improving to AA level, ranking third in the property industry [3]. - The company aims to combine strategic pillars with digital transformation to enhance core competitiveness and sustainable development capabilities, creating long-term value for shareholders [3].

Core Insights - The company reported a revenue of approximately RMB 2.015 billion for the first half of 2025, with a gross profit of RMB 379 million and a net profit attributable to shareholders of RMB 147 million [1] - The revenue from third-party basic property services (excluding acquired companies) increased by 26.9% year-on-year to RMB 933 million, indicating a strong performance in core business [1] - The total contracted property area reached 82.5 million square meters, a year-on-year growth of 3.0%, while the managed area increased by 9.0% to 74.28 million square meters, with third-party managed area accounting for 62.7% [1] Business Strategy - The company is focusing on integrating AI into its short- to mid-term strategy, with plans to deploy AI technology across various scenarios, including inspections and customer service [1] - The CEO emphasized the importance of combining AI technology with practical applications to explore its potential for continuous business growth and innovation [1] Client Expansion - The company has served several leading enterprises in the new consumption sector, which is seen as a key driver of economic growth and high-quality development, thereby optimizing its client structure and enhancing business resilience and growth potential [1]

Market Overview - The Hong Kong stock market experienced a significant decline, with the Hang Seng Index dropping by 1.27%, closing at 25,201.76, down 323.16 points [1][2] - The Hang Seng Tech Index and the Hang Seng China Enterprises Index also fell by 1.47% and 1.4%, respectively, with the China Enterprises Index barely holding above the 9,000-point mark [1][2] Sector Performance - Major technology stocks saw a downturn, with companies like Kuaishou and Meituan falling over 3%, while JD.com dropped by 2.5% [5][6] - Financial sectors, including banks and insurance stocks, collectively underperformed, contributing to the overall market decline [2][5] - The biopharmaceutical sector faced significant losses, particularly after former President Trump announced plans to impose tariffs on drugs, leading to a broad sell-off in biotech stocks [2][5] Real Estate and Property Management - Property management stocks experienced sharp declines, with companies like Excellence Commercial Services dropping 16% and Country Garden Services falling over 11% [7] - Recent real estate policies in major cities like Beijing and Shanghai are expected to stabilize the market, with analysts optimistic about recovery in core cities [7] Brokerage Firms - Chinese brokerage stocks also fell, with Shenwan Hongyuan down over 6% and other major firms like Dongfang Securities and Huatai Securities declining more than 5% [8] - Despite the downturn, there is optimism regarding the brokerage sector's performance due to increased market activity and potential earnings growth [8] Biopharmaceutical Sector - The biopharmaceutical and innovative drug sectors saw significant declines, with stocks like CanSino Biologics and Innovent Biologics dropping over 7% [9] - Analysts suggest that recent changes in liquidity conditions may support a rebound in the Hong Kong stock market, narrowing the gap with the rapidly rising A-share market [9] Consumer Sector - New consumption concept stocks also faced declines, with companies like Nayuki's Tea and Bubble Mart dropping over 5% [10] - The Chinese Ministry of Commerce plans to introduce policies to boost service consumption, indicating a shift towards a balanced consumption model [10] Apple-Related Stocks - Apple-related stocks performed well, with Lens Technology rising nearly 8% ahead of the upcoming iPhone 17 launch event scheduled for September 9 [3][12] Capital Inflows - Southbound capital saw a net inflow of 15.371 billion HKD, indicating continued interest in Hong Kong stocks from mainland investors [12] Hedge Fund Activity - Recent reports indicate that global hedge funds have increased their bets on Chinese stocks, with significant inflows observed in consumer staples and industrial sectors [14]