Financial Performance - For the six months ended June 30, 2023, the group's revenue was approximately RMB 1,839.34 million, a decrease of 1.3% compared to RMB 1,862.93 million for the same period in 2022[1]. - Gross profit for the same period was RMB 393.48 million, down from RMB 529.76 million in the previous year, indicating a significant decline in profitability[3]. - Operating profit decreased to RMB 259.69 million from RMB 456.94 million year-on-year, reflecting a decline of approximately 43.3%[3]. - The profit for the period attributable to equity shareholders was RMB 170.34 million, compared to RMB 311.01 million in the prior year, representing a decrease of about 45.1%[3]. - Basic and diluted earnings per share were both RMB 13.96, down from RMB 25.49 in the same period last year, indicating a decline of approximately 45.1%[3]. - The group's profit for the six months ended June 30, 2023, was approximately RMB 187.29 million, a decrease of 43.0% compared to RMB 328.39 million for the same period in 2022[24]. - The profit attributable to equity shareholders for the same period was approximately RMB 170.34 million, down 45.2% from RMB 311.01 million in 2022[24]. - The total comprehensive income for the period ended June 30, 2023, was RMB 186.10 million, compared to RMB 319.04 million for the same period in 2022[188]. Revenue Breakdown - Revenue from property management services for residential properties was RMB 1,565.87 million, up from RMB 1,358.39 million, indicating a growth of about 15.3%[11]. - Revenue from value-added services decreased significantly to RMB 262.85 million from RMB 475.63 million, reflecting a decline of approximately 44.7%[11]. - Revenue from basic property management services increased by 15.3% to RMB 1,565.87 million, up from RMB 1,358.39 million in the same period of 2022[122]. - Value-added services revenue decreased by 44.7% to RMB 262.85 million, down from RMB 475.63 million in the same period last year, representing approximately 14.3% of total revenue[142]. - Other business revenue fell by 63.3% to RMB 10.62 million, compared to RMB 28.91 million in the previous year[141]. - The company's value-added services revenue decreased by 62.2% due to the downturn in the real estate economy, while owner value-added services revenue increased significantly by 65.1%[123]. Assets and Liabilities - Total assets less current liabilities as of June 30, 2023, were RMB 3,899.91 million, an increase from RMB 3,787.63 million as of December 31, 2022[7]. - The net asset value increased to RMB 3,697.49 million from RMB 3,589.30 million, showing a growth of approximately 3.0%[7]. - The report segment assets as of June 30, 2023, were RMB 4,764.35 million, an increase from RMB 4,504.50 million at the end of 2022[37]. - The report segment liabilities increased to RMB 1,307.10 million from RMB 1,138.08 million in the previous year[37]. - As of June 30, 2023, total trade receivables amounted to RMB 170,087,000, an increase from RMB 85,459,000 as of December 31, 2022[70]. - The company's trade receivables (net of impairment losses) as of June 30, 2023, were RMB 151,242,000, compared to RMB 67,821,000 as of December 31, 2022[70]. - The total accounts payable increased to RMB 430,044 thousand as of June 30, 2023, compared to RMB 400,781 thousand as of December 31, 2022, indicating a growth of approximately 7.3%[76]. Strategic Initiatives - The group is focusing on integrating resources with partners like Huang Jin Industrial and Beijing Global Wealth Property Management for collaborative growth[23]. - The group aims to drive performance growth through technology and green development initiatives[24]. - The company aims to enhance its operational capabilities in government public construction projects through specialized, international, innovative, and technological services[60]. - The company is focusing on digital transformation and value creation to strengthen its operational independence and sustainability[79]. - The company plans to adopt innovative market expansion strategies to increase market share and enhance customer trust[91]. - The company is committed to providing customized and intelligent value-added services to meet diverse customer needs[85]. - The company is leveraging advanced technologies such as IoT, big data, and AI to improve project management efficiency and create maximum value for clients[82]. - The company aims to strengthen its market organization framework and expand into government public construction and urban service sectors[105]. - The company will leverage strategic acquisitions to enhance its capabilities in new business areas and improve overall risk resistance[115]. Customer Focus and Satisfaction - The company aims to enhance customer satisfaction by ensuring timely delivery and improving service quality throughout the project lifecycle[92]. - The company continues to focus on strategic customer cultivation and talent development to support its core business expansion[160]. - The company emphasizes the importance of maintaining strong customer relationships to ensure ongoing satisfaction and business growth[160]. - The company will continue to focus on customer needs, enhance basic operations, and optimize talent support to improve customer satisfaction and establish strong strategic partnerships[113]. Dividends and Shareholder Returns - The company declared an interim dividend of RMB 11.17 cents per share, down from RMB 12.74 cents per share in the previous year, reflecting a decrease of approximately 12.4%[77]. - The company proposed an interim dividend of HKD 0.1218 per share for the six months ended June 30, 2023, down from HKD 0.1460 for the same period in 2022[186]. Market Position and Recognition - The company has been recognized as a top performer in various industry rankings, including being named one of the "Top 12 Property Management Listed Companies in China" by Kearney[128]. - The company has established a comprehensive business property service operation model and has received multiple ISO certifications, enhancing its operational capabilities[130]. - The company is focused on strategic talent development to support rapid business expansion and maintain core competitiveness[131]. Future Outlook - Future strategic planning revolves around becoming a leading commercial real estate service operator in China, emphasizing organizational, business, and capability development[135]. - The company aims to optimize its governance structure and deepen digital transformation to create sustained value amidst a complex external environment[139]. - The company plans to continue implementing the "Focus on Growth" external strategy in the second half of 2023, enhancing organizational efficiency through internal drivers[154].

目錄 戰略及ESG委員會 公司資料 中國總部及註冊辦事處 主席報告 2022年我們直面挑戰，內外兼修，夯實中長期業務增長，主航道業務拓展依然保持強勁的勢頭，與多行業的戰略客戶合作 也卓有成效，通過收併購、合資助力新賽道業務佈局和突破；內修能力建設，深度佈局戰略人才培養與儲備；持續探索數 字化在經營管理、業務運營中的應用與實踐；通過COE加強業務賦能，持續提升本公司核心競爭力，夯實業務中長期增長。 主席報告 面向未來，卓越商企服務集團有限公司（「卓越商企服務」）將持續堅持以客戶為中心，優化公司治理架構，深耕數字化轉 型，持續聚焦價值創造，來克服外部環境的不確定性，保持本公司業績穩健增長。 董事長 管理層討論與分析 管理層討論與分析 1) 資產服務 本公司聯合旗下盛恒達機電有限公司（「盛恒達機電」）打造「綠色&智慧機電」專項服務，通過 「硬件+軟件+平台+服務」的綜合解決方案，構建小區生態圈，多板塊成體系化發展，奠定大機 電生態圈，以科技與綠色發展驅動業績增長。 附註： 本公司提供前期物業顧問諮詢服務，從項目的規劃設計、建設管理和驗收移交的不同階段給 出合理化建議，滿足客戶期望使用功能、提高後期物業運行效率，規避 ...

Financial Performance - The company's profit attributable to owners for 2022 was approximately RMB 403.49 million, a decrease of 20.9% compared to RMB 510.09 million in 2021[13]. - The core net profit for 2022 was RMB 495.15 million, representing a year-on-year decline of about 6.0%[13]. - Total revenue for 2022 was approximately RMB 3,527.40 million, an increase of 1.7% from RMB 3,467.07 million in 2021[17]. - The company's net profit for the year was RMB 426.46 million, down from RMB 547.48 million in 2021, with basic earnings per share decreasing from 41.7 to 33.1[30]. - The company's total comprehensive income for the year was RMB 403.70 million, compared to RMB 481.46 million in 2021[32]. - The company reported a revenue of RMB 3,527.40 million for 2022, with a cost of sales of RMB 2,683.05 million, resulting in a gross profit of RMB 844.35 million[31]. - The gross profit was RMB 844.35 million, a decrease of 12.0% compared to the same period last year, with a comprehensive gross profit margin of 23.9%, down 3.8 percentage points from 2021[171]. - The net profit attributable to the parent company was RMB 403.49 million, a decline of 20.9%, with a net profit margin of 12.1%, down 3.7 percentage points from 2021[171]. Dividends and Shareholder Returns - The proposed final dividend for the year ended December 31, 2022, is HKD 0.0609 per share, with a total annual dividend of HKD 0.2069 per share, down 42.5% from HKD 0.3600 in 2021[14]. - The proposed final dividend for the year attributable to ordinary equity shareholders was RMB 172,801,000, representing a per share dividend of HKD 0.1738, an increase from HKD 0.0951 in 2021[95]. - The company maintained a high dividend payout ratio of 70% for the year-end dividend, reflecting a commitment to providing stable returns to shareholders[155]. Assets and Liabilities - Cash and cash equivalents as of December 31, 2022, amounted to RMB 2,564.43 million, a decrease from RMB 3,007.30 million in the previous year[21]. - The total assets minus current liabilities as of December 31, 2022, were RMB 3,787.63 million, compared to RMB 3,598.66 million in 2021[35]. - Total assets as of December 31, 2022, were RMB 5,012,132 thousand, a decrease of 1.18% from RMB 5,072,136 thousand in 2021[43]. - Total liabilities decreased to RMB 1,422,833 thousand in 2022, down 11.36% from RMB 1,605,704 thousand in 2021[43]. - The company's non-current assets, including investment properties, totaled RMB 942.06 million, compared to RMB 559.12 million in 2021[21]. Revenue Streams - Property management service revenue was RMB 2,814,793,000, up from RMB 2,630,752,000 in 2021, representing a growth of 6.98%[58]. - Business property services accounted for 61.4% of total revenue, while value-added services contributed 19.0%[144]. - The revenue from property management services was RMB 2,814.79 million, representing a 7.0% increase from RMB 2,630.75 million in 2021[195]. Corporate Governance and Compliance - The company has established an audit committee to oversee financial reporting and risk management[4]. - The company has adopted corporate governance practices to enhance shareholder value and accountability[2]. - The company maintained compliance with all applicable corporate governance codes throughout the year[25]. - The company plans to continue reviewing and monitoring its corporate governance practices to ensure compliance with the corporate governance code[25]. Strategic Initiatives and Future Outlook - The company anticipates a robust recovery growth in 2023, with management confident in achieving strong performance[106]. - The company plans to deepen strategic customer relationships and expand into new business sectors through acquisitions, aiming to establish 1-2 new business lines[105]. - The company is focusing on talent development and digital transformation to enhance overall profitability[105]. - The company aims to enhance governance levels and promote business transformation through digital transformation to improve operational efficiency[156]. - The company is actively pursuing mergers and acquisitions to strengthen its market presence and enhance competitive advantages in various sectors[170]. Operational Metrics - The company experienced a 23% year-over-year increase in contracted area, reaching approximately 70 million square meters, with 661 projects[146]. - The managed area increased by 30% year-over-year to approximately 53.8 million square meters, with 587 projects under management[146]. - The number of new strategic customer contracts increased to 28, contributing 52.6% to the total contract amount of RMB 996.5 million[151]. - The company signed new acquisitions totaling 4,505 thousand square meters in 2022, increasing the total area under management to 53,760 thousand square meters by year-end[173].

Business Operations and Services - The company managed over 68.94 million square meters of contracted area across 2 countries and 15 provinces, with 530 management projects in 43 key cities[4]. - The company focuses on providing customized one-stop integrated operation management services, covering the entire life cycle of asset maintenance and comprehensive service solutions[3]. - The company serves numerous landmark office buildings and high-tech enterprises, offering services from marketing management to equipment management and business management[6]. - The company has established a smart cloud platform for facility management, integrating hardware and IT systems for intelligent lifecycle management and cost control[6]. - The company aims to enhance profitability through value-added services and innovative high-end business services, focusing on the development and practice of commercial real estate[3]. - The company is expanding into new sectors such as healthcare, urban services, and government public construction through mergers and acquisitions[3]. - The company primarily serves Fortune 500 companies and high-tech enterprises, providing customized facility management solutions[6]. - The company emphasizes the establishment of an ecosystem for the growth of people, enterprises, and real estate through professional services and innovative mechanisms[4]. - The company has a comprehensive property management service model that includes commercial property management, public property, and residential apartments[5]. - The company is committed to achieving asset preservation and appreciation through a complete business chain of real estate lifecycle operation management[3]. - The company has successfully entered the healthcare sector, managing multiple hospital logistics projects, providing intelligent and efficient clinical support services[12]. - The company has integrated modern technology into its operations, launching the "Zhuo Yi Hui" software system for hospital management, enhancing data management and operational efficiency[12]. - The company is expanding its public property services, focusing on government, education, and healthcare sectors, offering comprehensive operational solutions[6]. - The company has introduced the "Five Hearts" service model, aiming to enhance customer satisfaction and improve living experiences in residential properties[8]. - The company is developing value-added services, including asset management and building mechanical and electrical services, to enhance operational efficiency and customer satisfaction[9]. - The company is pursuing a dual growth strategy through both organic growth and mergers and acquisitions, focusing on enhancing regional brand influence[11]. - The company has established a market organization framework to explore new sectors, including urban services and healthcare logistics, to drive growth[12]. - The company is leveraging its real estate development experience to provide systematic property management services across various cities[6]. - The company is focusing on creating a green and intelligent mechanical and electrical service ecosystem to drive performance growth[9]. - The company has partnered with local property management firms to enhance service capabilities and foster collaborative growth[11]. Financial Performance - For the six months ended June 30, 2022, the company's operating revenue reached RMB 1,862.93 million, representing a year-on-year growth of 12.7%[16]. - The gross profit was RMB 529.76 million, with a year-on-year growth of 8.4%, resulting in a gross margin of 28.4%, a decrease of 1.2 percentage points compared to the same period in 2021[16]. - The company's net profit attributable to shareholders was RMB 311.01 million, reflecting a year-on-year increase of 15.0%, maintaining a net profit margin of 17.6%[16]. - The total contracted area as of June 30, 2022, was approximately 68.94 million square meters, a year-on-year increase of about 35.1%[17]. - The managed area reached approximately 50.08 million square meters, representing a year-on-year growth of about 42.3%[17]. - Revenue from the Greater Bay Area accounted for 51.3% of total revenue, with a total income of RMB 696.1 million for the six months ended June 30, 2022[20]. - The company’s strategic focus on business property management resulted in a 12.9% increase in revenue from business properties compared to the same period in 2021[23]. - The proportion of value-added services in total revenue increased to 25.5%[16]. - Revenue from third-party business property management increased by 17.4% compared to the same period in 2021, reaching RMB 1,061,228 thousand[24]. - Public property revenue decreased by 47.8% compared to the same period in 2021, indicating challenges in this segment[24]. - Residential property revenue increased by 36.0% compared to the same period in 2021, driven by the growth in real estate development[24]. - Value-added services revenue reached approximately RMB 475.63 million, representing a year-on-year growth of about 32.5% and accounting for approximately 25.5% of total revenue[28]. - Building electromechanical services revenue grew by RMB 118.89 million, with a growth rate of 125.0% compared to the previous year[29]. - High-end service brand "Zhuopin Business" revenue increased by 81.3%, indicating strong demand in the market[29]. - The company aims to enhance market share and project density among top-tier internet clients, exemplified by securing a global headquarters project with a total construction area of 960,000 square meters[27]. - The strategic customer division was established to deepen relationships and optimize development mechanisms, leading to exponential business growth[26]. - The overall data indicators improved by 31.0% year-on-year as of June 30, 2022[35]. - The company aims to enhance market share and contract retention rate through lifecycle management of strategic clients in FM integrated facility management services[37]. - The company plans to focus on three main business areas: FM integrated facility management, PM high-end office services, and residential property services to drive steady business growth[37]. Investments and Acquisitions - The company is actively promoting joint ventures and acquisitions, focusing on reasonable valuations and historical performance of partners[39]. - The company completed the acquisition of 75% of Beijing Global for a cash consideration of RMB 225,000,000, which was finalized in January 2022[166]. - The company acquired an additional 2% stake in Henan Huangjin for RMB 2,080,000, gaining control over the property management service provider[167]. - The fair value of identifiable net assets acquired from the recent acquisitions was RMB 94,816,000, with goodwill recognized amounting to RMB 139,376,000[168]. - The company raised approximately HKD 3,359.5 million from the issuance of new shares, with HKD 854.7 million utilized by June 30, 2022[78]. - Strategic acquisitions and investments account for 70% of the planned use of funds, with a total of HKD 2,351.7 million allocated[78]. - As of June 30, 2022, HKD 369.7 million has been utilized for strategic acquisitions, leaving HKD 1,646.1 million unutilized[78]. - The company plans to invest HKD 134.3 million in developing the FM smart management information platform over the next two to three years[79]. - The company is cautious in strategic expansion due to the downturn in the domestic real estate market, impacting acquisition activities[84]. Employee and Talent Management - The company has established a talent academy in 2017 to continuously cultivate strategic talents and professional project teams[34]. - The group employed a total of 15,610 full-time employees in China and 66 in India, representing an increase from 12,550 and 75 employees respectively as of June 30, 2021, indicating a growth of approximately 24% in China[86]. - The group provides competitive compensation packages, including salaries, bonuses, and various social insurance benefits for its employees[86]. - The stock option plan aims to incentivize eligible participants to enhance performance and retain talent contributing to the group's long-term development[93]. - 5% of the total funds are designated for talent acquisition and training, with HKD 168.0 million planned for strategic recruitment[83]. Governance and Compliance - The company has adopted the Corporate Governance Code and has complied with all applicable provisions during the reporting period[107]. - The audit committee, consisting of four members, is responsible for reviewing and supervising the company's financial reporting system and internal controls[110]. - The independent auditor's review was conducted under the Hong Kong Institute of Certified Public Accountants' standards[119]. - The company is required to prepare interim financial reports in accordance with the relevant provisions of the Hong Kong Listing Rules[118]. Shareholder Information - The company declared an interim dividend of HKD 0.146 per ordinary share for the six months ended June 30, 2022, to be distributed on November 29, 2022[104]. - Major shareholder Mr. Li Hua controls 722,440,000 shares, accounting for 59.20% of the company's equity[115]. - Mr. Li Xiaoping holds 118,120,000 shares through spousal interest, representing approximately 9.68% of the company's equity[112]. - Ms. Xiao Xingping holds 117,900,000 shares, which is approximately 9.66% of the company's equity[115]. - The total number of shares available for issuance under the share option plan is 120,000,000 shares, representing approximately 9.83% of the issued share capital as of the report date[97]. - The stock option plan allows for participation from full-time employees, directors, and other qualified individuals deemed to contribute to the company[95]. Financial Position and Assets - The total assets as of June 30, 2022, amounted to RMB 4,971,408 thousand, compared to RMB 4,513,019 thousand as of December 31, 2021[122]. - The company’s equity attributable to shareholders was RMB 3,582,624 thousand as of June 30, 2022, compared to RMB 3,445,548 thousand at the end of 2021[123]. - The company reported a total comprehensive income of RMB 319,037 thousand for the period, compared to RMB 259,038 thousand in the same period of 2021[46]. - The company’s cash and cash equivalents were RMB 3,407.30 million, an increase of 13.3% from RMB 3,007.30 million as of December 31, 2021[76]. - The company’s total equity as of June 30, 2022, was RMB 3,658,894,000, an increase from RMB 3,466,432,000 at the beginning of the year[125]. - The company’s retained earnings increased to RMB 645,030,000 as of June 30, 2022, up from RMB 506,822,000 at the start of the year[125]. - The company’s financial liabilities measured at amortized cost increased to RMB 841,624,000 from RMB 482,670,000, representing a growth of 74.5%[163]. Cash Flow and Financial Activities - Operating cash generated was RMB 265,727,000, a decrease of 53.8% from RMB 576,185,000 in the same period of 2021[126]. - Net cash generated from operating activities was RMB 155,467,000, down 69.8% compared to RMB 513,979,000 in the prior year[126]. - Cash flows from investing activities showed a net inflow of RMB 334,699,000, compared to a net outflow of RMB 64,267,000 in the previous year[126]. - The company did not incur any bank loans or borrowings in the current period, compared to RMB 78,763,000 in the previous year[127]. - The company recognized a loss provision of RMB 16,509,000 for trade and other receivables for the six months ended June 30, 2022, compared to RMB 4,687,000 in the same period of 2021, indicating a significant increase in credit risk[142].

Industry Growth and Market Focus - The property management industry has experienced rapid growth due to continuous policy support, with commercial property management becoming a key focus area [5]. - As of December 2021, commercial properties accounted for 45% of the third-party market expansion in the property management sector, significantly outpacing residential properties [6]. - The commercial property management sector is characterized by rational growth and controllable capital expenditures, reflecting its market-oriented nature [8]. - The integration and differentiation in the commercial property sector are expected to accelerate, driven by the involvement of leading property management companies [7]. Company Strategy and Services - The company aims to extend the lifespan of commercial assets, reduce depreciation costs, and lower operating expenses, achieving asset preservation and appreciation [8]. - The company focuses on providing comprehensive facility management services, aiming to deliver full lifecycle asset maintenance and service solutions [7]. - The company focuses on commercial real estate management, providing services such as marketing management, equipment selection, and facility management for high-end office buildings and business parks [12]. - The company has established a recognized service system and business logic over 20 years, gaining the trust and ongoing cooperation of leading enterprises [8]. - The company emphasizes user-centric and customized service innovations to enhance competitive advantages and brand influence [8]. Financial Performance - In 2021, the company's operating revenue reached RMB 3,467.1 million, representing a year-on-year growth of 37.3% [23]. - The gross profit was RMB 959.6 million, with a year-on-year increase of 44.6%, resulting in a gross margin of 27.7%, up 1.4 percentage points from 2020 [23]. - The net profit attributable to shareholders was RMB 510.1 million, reflecting a year-on-year growth of 57.0% and a net profit margin of 15.8%, an increase of 1.7 percentage points from 2020 [23]. - Business property services accounted for 56.6% of total revenue, while value-added services contributed 22.5% [23]. - Revenue from business property management increased by 22.3% in 2021 compared to 2020 [31]. Expansion and Market Presence - The company managed over 56.8 million square meters of contracted area across 521 management projects in 50 key cities in China [10]. - The company expanded its geographical presence to 50 cities across China, focusing on economically developed regions such as the Greater Bay Area and Yangtze River Delta [26]. - The company aims to enhance market share and project density in target cities through strategic client expansion [34]. - The company is expanding into new sectors such as healthcare, education, and urban services through acquisitions to capture emerging market opportunities [51]. Talent and Organizational Development - The company plans to double its employee count from 12,277 in 2021 to over 25,000 by 2025, with a key talent reserve increasing from over 200 to over 1,000 [47]. - The company is committed to talent development, establishing a structured training mechanism to support rapid business expansion and enhance management capabilities [54]. - The company has established a competitive compensation package for employees, including bonuses, salaries, allowances, and retirement contributions [140]. Governance and Management - The board consists of 2 executive directors, 2 non-executive directors, and 3 independent non-executive directors [193]. - The independent non-executive directors confirmed their independence and will not participate in the daily operations of the group [136]. - The company adopted a board diversity policy to enhance efficiency and maintain high standards of corporate governance [194]. - The roles of the chairman and the CEO are clearly separated, with Mr. Li serving as chairman and Ms. Guo as CEO [200]. Sustainability and Corporate Responsibility - The management team emphasized a focus on sustainability initiatives, aiming for a 30% reduction in carbon footprint by 2025 [108]. - The company emphasizes sustainable development as a key component of its business strategy, integrating this philosophy into every operational detail [128]. - The company has faced various risks and uncertainties, which are discussed in the annual report, indicating a proactive approach to risk management [128]. Future Outlook and Projections - The company provided a positive outlook for the next fiscal year, projecting a revenue growth of 10% to 12% [103]. - New product launches are expected to contribute an additional $50 million in revenue in the upcoming year [104]. - The company plans to enhance customer engagement through digital platforms, expecting a 15% increase in customer retention rates [109].

Financial Data and Key Metrics - Revenue in 2021 reached RMB 3.47 billion, with a year-on-year growth of 37.3% and a three-year CAGR of 37.4% [2] - Gross profit increased to RMB 960 million, up 44.6% YoY, with a gross margin of 27.7%, up from 26.3% in 2020 [3] - Net profit grew to RMB 547 million, a 53.7% YoY increase, with a net profit margin of 15.8%, up 1.7 percentage points from 2020 [3] - Operating cash flow improved significantly, with a cash flow to net profit ratio of 1.48x [3] - Total contracted area reached 56.77 million sqm, up 27% YoY, while managed area increased to 41.20 million sqm, up 29% YoY [3] Business Line Data and Key Metrics - Basic property services contributed 75.9% of total revenue, while value-added services accounted for 22.5%, up from previous years [2] - Commercial property services contributed 57% of total revenue, with public and industrial property services at 10%, and residential property services at 9% [2] - Value-added services revenue grew 118% YoY to RMB 781 million, driven by asset services, building electromechanical services, enterprise services, and professional value-added services [9][10] - Building electromechanical services revenue reached RMB 230 million, up 109% YoY, becoming a key growth driver [10] Market Data and Key Metrics - 85% of managed areas are located in Tier 1 and new Tier 1 cities in China [4] - The Greater Bay Area and Yangtze River Delta regions accounted for 66% of managed areas [4] - The company expanded into key cities such as Wuhan, Hefei, Changsha, and Qingdao, leveraging its major client strategy [8] Company Strategy and Industry Competition - The company focuses on dual growth drivers: FM (Facility Management) and PM (Property Management) services, with new contracts worth RMB 527 million in 2021, up 47% YoY [6] - Strategic clients like Tencent and Alibaba contributed significantly, with Tencent's new contracts doubling in size and Alibaba's projects achieving high satisfaction ratings [7][8] - The company plans to explore new business areas such as healthcare, education, and government projects, while continuing to expand value-added services [16] - Digital transformation and talent development are key priorities, with investments in IoT and smart management platforms to enhance operational efficiency [11] Management Commentary on Operating Environment and Future Outlook - The company expects a 35% CAGR in net profit from 2020 to 2024, driven by market expansion, acquisitions, and value-added services [24] - The management emphasized the importance of sustainable growth, leveraging the company's brand reputation, client resources, and operational capabilities [21] - The company aims to achieve unique market competitiveness by 2026-2027, focusing on organizational efficiency, platform sharing, and professional business development [14] Other Important Information - The company maintained a high dividend payout ratio of 70% in 2021, with a commitment to a minimum 50% payout ratio over the next three years [5][28] - Major shareholders and management increased their holdings by 3.68 million shares, investing RMB 32.77 million, demonstrating confidence in the company's future [5] - The company actively participated in social responsibility initiatives, including donations of RMB 625 million and involvement in 402 public welfare projects [5] Q&A Session Summary Question: What are the company's growth targets for the next 2-3 years? - The company expects a 35% CAGR in net profit from 2020 to 2024, driven by market expansion, acquisitions, and value-added services [24] Question: What is the average market share in new demand from key clients? - The company holds a 30% market share in major client segments, with some clients contributing over 71% of new contracts [19] Question: How does the company plan to differentiate itself in the competitive property management industry? - The company focuses on high-quality services, digital transformation, and strategic client relationships to maintain its competitive edge [20][21] Question: What are the future plans for dividend payouts and value-added services? - The company plans to maintain a dividend payout ratio of at least 50% over the next three years, with value-added services expected to grow significantly [28][29] Question: How does the company view the impact of the real estate market on its business? - The company believes that its focus on non-residential property services and strategic client relationships will mitigate risks associated with the real estate market [39][40]

Revenue and Growth - The total revenue for the six months ended June 30, 2021, was RMB 1,652.85 million, representing a 42.2% increase from RMB 1,162.04 million for the same period in 2020[13]. - Revenue from property management services in the Greater Bay Area was RMB 682.85 million, accounting for 53.8% of total revenue for the six months ended June 30, 2021[6]. - The revenue from basic property management services was RMB 1,269.18 million, up 25.6% from RMB 1,010.41 million in the previous year[14]. - The revenue from value-added services surged to RMB 359.01 million, a 200.4% increase compared to RMB 119.53 million in the same period last year, accounting for 21.7% of total revenue[12][15]. - The property management services segment generated revenue of RMB 1,431,020 thousand, up from RMB 1,120,395 thousand, reflecting a growth of 27.7%[98]. - The company reported a pre-tax profit of RMB 397,244 thousand for the six months ended June 30, 2021, compared to RMB 240,569 thousand for the same period in 2020, an increase of 65.2%[99]. Managed Area and Contracts - The total managed area as of June 30, 2021, was approximately 35.20 million square meters, representing a 32.6% increase compared to the same period in 2020[7]. - The contracted area as of June 30, 2021, was approximately 51.04 million square meters, reflecting a growth of 37.8% year-over-year[7]. - The company added 3,931 thousand square meters of new contracts during the six months ended June 30, 2021, compared to 3,046 thousand square meters in the same period of 2020[5]. - The company reported a termination of contracts amounting to 751 thousand square meters during the reporting period[5]. - The total area managed in the Yangtze River Delta was 8,595 thousand square meters, contributing RMB 276.36 million to revenue, which is 21.8% of total revenue[6]. - The total area managed in other regions was 12,587 thousand square meters, generating RMB 309.97 million in revenue, accounting for 24.4% of total revenue[6]. Profitability and Expenses - The gross profit for the group was RMB 488.88 million, a 56.5% increase from RMB 312.43 million in 2020, with a gross margin rising from 26.9% to 29.6%[19]. - The sales cost for the group was RMB 1,163.97 million, a 37.0% increase from RMB 849.61 million in the previous year, primarily due to the expansion of managed areas[18]. - The gross margin for basic property management services was 24.7%, slightly down from 25.1% in the previous year, attributed to the cessation of social insurance contribution relief policies[20]. - Selling and marketing expenses rose by 157.8% to RMB 81.2 million, mainly due to increased costs associated with seeking quality business targets and expanding third-party business through acquisitions[23]. - Administrative expenses increased by 5.4% to RMB 899.8 million, attributed to the hiring of new staff to support rapid business growth[24]. Cash Flow and Financial Position - As of June 30, 2021, the group's cash and cash equivalents amounted to RMB 3,513.11 million, a 6.0% increase from RMB 3,314.13 million as of December 31, 2020, primarily due to increased operating cash inflows[42]. - The net cash generated from operating activities for the six months ended June 30, 2021, was approximately RMB 513.98 million, compared to RMB 153.63 million for the same period in 2020, attributed to expanded operational scale and increased operating profits[44]. - The net cash outflow from investing activities for the six months ended June 30, 2021, was approximately RMB 64.27 million, a significant decrease from RMB 860.28 million in the same period of 2020, primarily due to prior year repayments from related parties[44]. - The company's debt-to-asset ratio increased to 35.2% from 33.9% at the end of the previous year[39]. - The group's total equity as of June 30, 2021, was RMB 3,394.35 million, reflecting a 4.24% increase from RMB 3,256.29 million as of December 31, 2020, mainly due to profits generated during the year[42]. Employee and Corporate Governance - As of June 30, 2021, the company had a total of 12,550 full-time employees in China and 75 in India, compared to 11,532 and 72 respectively at the end of 2020[55]. - The company aims to provide training for key staff and strategically recruit personnel to support business growth[16]. - The company has maintained compliance with all applicable corporate governance codes during the reporting period[62]. - No significant changes in the board of directors' information have been reported as of the date of the interim report[66]. Shareholder Information and Dividends - Major shareholder Li Hua holds 721,115,000 shares, representing approximately 58.99% of the company's equity[76]. - The interim dividend declared is HKD 0.1862 per share, to be distributed on November 29, 2021[59]. - The company declared dividends amounting to RMB 97,793 thousand for the previous year, impacting retained earnings[85]. - The company declared dividends payable to equity shareholders amounting to RMB 189,773,000 for the six months ended[134]. Strategic Plans and Investments - The company aims to enhance management efficiency and strengthen technology applications to improve profitability in the future[11]. - The company plans to strategically acquire or invest in service providers to enhance value-added services, including mechanical and electrical services, indoor air treatment, and smart building services[48]. - The planned use of net proceeds from the IPO includes 70.0% for business expansion, amounting to RMB 2,351.7 million, with RMB 638.5 million already utilized as of June 30, 2021[48]. - The company plans to invest 10.0% of the net proceeds, approximately RMB 134.3 million, in developing the FM Smart Management Information Platform over the next two to three years[49].

卓越商企服務集團有限公司 EXCELLENCE COMMERCIAL PROPERTY & FACILITIES MANAGEMENT GROUP LIMITED 年度報告 Annu al Repo rt 2020 Excellence 卓越商企服務集團有限公司 EXCELLENCE COMMERCIAL PROPERTY & FACILITIES MANAGEMENT GROUP LIMITED 股份代號 : 6989 （於開曼群島註冊成立的有限公司） 年度報告 2020 目錄 2 公司資料 4 董事長報告 6 管理層討論及分析 21 董事及高級管理層 28 董事會報告 49 企業管治報告 64 獨立核數師報告 73 綜合損益及其他全面收益表 75 綜合財務狀況表 77 綜合權益變動表 79 綜合現金流量表 81 綜合財務報表附註 179 四年財務概要 卓越商企服務集團有限公司 年報 2020∣ 2 劉曉蘭女士 公司資料 | --- | --- | |-----------------------|---------------------------------------| | | | | 董事 | 授 ...