Investment Rating - The investment rating for the company is "Outperform the Market" [6] Core Views - The company's revenue growth is driven by an increase in managed area, with property management service revenue reaching HKD 1,713.98 million in the first half of 2024, accounting for 82.3% of total revenue, representing a year-on-year increase of 9.5% [3] - The company has a strong presence in high-value cities, with 75.4% of its managed area located in first-tier and new first-tier cities, and 62.9% in the core economic regions of the Greater Bay Area and Yangtze River Delta [3] - The company has proposed an interim dividend of HKD 0.0766 per share, yielding a dividend rate of 5.63% [6] Summary by Sections Financial Performance - In the first half of 2024, the company achieved revenue of HKD 2,082.48 million, a year-on-year increase of 13.2%, with net profit attributable to shareholders at HKD 170.5 million, remaining stable compared to the same period in 2023 [6] - The gross profit margin slightly decreased from 21.4% in 2023 to 20.3% in 2024, primarily due to a decline in the gross margin of commercial services [6] - The company expects EPS for 2024 and 2025 to be HKD 0.27 and HKD 0.30, respectively, with a target valuation range of HKD 2.36 to HKD 2.95 [6] Revenue Breakdown - The company's value-added services revenue increased by 32.8% year-on-year to approximately HKD 349.15 million, accounting for 16.8% of total revenue [4] - Other business revenue surged by 82.2% year-on-year to HKD 19.36 million, representing 0.9% of total revenue [4] Market Position - The company is well-positioned in the property management sector, with a focus on high-quality growth in the Greater Bay Area and Yangtze River Delta [3] - The company’s managed area reached approximately 68.12 million square meters, a year-on-year increase of 12.7% [3]

Financial Performance - For the six months ended June 30, 2024, the group's revenue was approximately RMB 2,082.48 million, an increase of 13.2% compared to RMB 1,839.34 million for the same period in 2023[1]. - The group's gross profit for the same period was approximately RMB 422.17 million, reflecting a growth of 7.3% from RMB 393.48 million in the previous year[1]. - The group's profit for the period was approximately RMB 183.80 million, a decrease of 1.9% from RMB 187.29 million in the same period last year[1]. - The profit attributable to equity shareholders of the company was approximately RMB 170.50 million, remaining relatively stable compared to RMB 170.34 million in the previous year[1]. - The operating profit for the six months ended June 30, 2024, was approximately RMB 220.12 million, compared to RMB 259.69 million in the previous year[2]. - Total comprehensive income for the period was RMB 184.22 million, slightly down from RMB 186.10 million in the same period last year[3]. - The company reported a basic earnings per share of RMB 0.139 for the six months ended June 30, 2024, slightly up from RMB 0.139 in the same period of 2023[19]. - Net profit for the reporting period was RMB 183.80 million, a decrease of 1.9% from RMB 187.29 million in the same period last year, with a net profit margin of 8.8% compared to 10.2% last year[87]. Revenue Breakdown - For the six months ended June 30, 2024, total revenue reached RMB 2,050,313,000, representing a 14% increase from RMB 1,801,949,000 in the same period of 2023[14]. - Revenue from property management services was RMB 1,713.98 million, up 9.5% from RMB 1,565.87 million in the previous year[73]. - Value-added services revenue increased by 32.8% to RMB 349.15 million, accounting for approximately 16.8% of total revenue, compared to 14.3% in the same period last year[74]. - Revenue from commercial properties accounted for 64.8% of the basic property service revenue, with third-party basic property services contributing 59.8%[52]. - Revenue from public and industrial properties increased by 11.8% compared to the same period in 2023[52]. - Revenue from residential properties grew by 22.4% year-on-year during the reporting period[53]. Dividends - The board proposed an interim dividend of HKD 0.0766 per share for the six months ended June 30, 2024, down from HKD 0.1218 for the same period in 2023[1]. - The company declared an interim dividend of HKD 0.0766 per share (equivalent to RMB 0.0699), totaling RMB 85,302 thousand, down 37.5% from RMB 136,313 thousand in the same period of 2023[35]. - The company approved a final dividend of HKD 0.0682 per share (equivalent to RMB 0.0619) for the previous fiscal year, amounting to RMB 75,569 thousand, an increase of 16.5% from RMB 64,740 thousand in the previous year[36]. Assets and Liabilities - As of June 30, 2024, total assets less current liabilities amounted to RMB 3,841.56 million, an increase from RMB 3,746.43 million as of December 31, 2023[5]. - The net asset value of the company as of June 30, 2024, was RMB 3,750.53 million, compared to RMB 3,652.70 million at the end of 2023[5]. - Total assets as of June 30, 2024, amounted to RMB 5,437,752,000, an increase from RMB 5,198,390,000 as of December 31, 2023[15]. - Total liabilities as of June 30, 2024, were RMB 1,687,227,000, compared to RMB 1,545,694,000 as of December 31, 2023[15]. - The asset-liability ratio as of June 30, 2024, was 31.0%, compared to 29.7% on December 31, 2023[102]. Cash Flow and Financial Position - The company reported cash and cash equivalents of RMB 4,025.33 million as of June 30, 2024, down from RMB 4,271.89 million at the end of 2023[4]. - Cash and cash equivalents as of June 30, 2024, were RMB 1,079.14 million, a decrease of 50.0% from RMB 2,156.70 million on December 31, 2023[105]. - The company’s income tax expense for the six months ended June 30, 2024, was RMB 41,396,000, down from RMB 70,806,000 in 2023[17]. - Income tax expenses decreased by 41.5% to RMB 41.40 million from RMB 70.81 million in the same period last year, mainly due to tax incentives from the Western Development policy and recognition of deferred tax assets from unused tax losses[86]. Operational Highlights - The company is focusing on providing comprehensive property management services across various sectors, including commercial, public, industrial, and residential properties[39]. - The company aims to enhance its service offerings by integrating advanced technologies such as IoT, big data, and AI into its facility management solutions[41]. - The company is actively pursuing joint ventures and acquisitions to leverage government resources and enhance market development, collaborating with entities like Huang Jin Property and Beijing Global Wealth Property Management[47]. - The company is implementing a "green and smart electromechanical" service model, integrating hardware, software, platforms, and services to drive performance growth[46]. - The company is enhancing its core operational capabilities through digital transformation, improving decision-making efficiency and fostering organic business growth[49]. Employee and Governance - The group employed a total of 17,163 full-time employees as of June 30, 2024, an increase from 16,437 on December 31, 2023[108]. - The company adheres to high standards of corporate governance to protect shareholder interests and enhance corporate value[113]. - The audit committee, consisting of four members, is responsible for reviewing and supervising the company's financial reporting system and risk management[115]. Strategic Initiatives - The company is focusing on high-quality growth in the Greater Bay Area and Yangtze River Delta regions, with these areas accounting for 62.9% of the total managed area[50]. - The company aims to enhance customer satisfaction and establish long-term strategic partnerships to drive sustainable business growth[56]. - The company is committed to optimizing its value-added service platform to provide more precise and efficient service experiences for customers[69]. - The company is focusing on digital transformation to enhance business decision-making efficiency and strengthen its competitive edge in digital platforms[62].

9 卓越商企服務集團有限公司 年報 2023 1. 業務規模持續增長 (3) 我們為(i)中國其他地區城市（包括北京、西安、青島、鄭州、重慶、成都、武漢、天津、濟南、石家莊、 長沙、福州、南昌、晉江等）的物業；以及(ii)印度的項目提供物業管理服務。 13 卓越商企服務集團有限公司 年報 2023 核心競爭力分析 增值服務平台通過打通全鏈路服務，實現了採購效率、管理效率提升，帶來顯著客戶價值實現。 3) 增值服務聚力提速 年報 2023 卓越商企服務集團有限公司 18 截至12月31日止年度 下表為所示期間，按照本集團業務板塊劃分的毛利及毛利率明細： 管理層討論及分析 年報 2023 卓越商企服務集團有限公司 22 2. 增值服務 公司持續為客戶提供個性化、定制化、智能化的增值服務創新，深入挖掘客戶多維度需求，實現從單 一服務向多元服務的轉變，重點發展方向包括資產服務、卓品商務、建築機電服務等多種專業增值服 務。 在新賽道業務方面，通過收併購擴大業務規模，建立細分醫療及公建領域競爭力，構建第二增長曲線。 | --- | --- | --- | --- | --- | --- | --- | --- | --- ...

Investment Rating - The investment rating for the company is "Outperform the Market" [2] Core Insights - The company's revenue for 2023 reached 3,926.81 million, representing a year-on-year increase of 11.3%. However, the profit attributable to shareholders decreased by 25% to 302.69 million [4][6] - The management area has increased, driving steady growth in property management revenue, which amounted to 3,221.36 million, accounting for 82.0% of total revenue, with a year-on-year increase of 14.4% [1][4] - The company expects EPS for 2024 and 2025 to be 0.27 and 0.31 respectively, with a target valuation range of 2.16 to 2.70 RMB (2.38 to 2.98 HKD) based on a dynamic PE of 8-10X for 2024 [5] Summary by Sections Market Performance - The company managed an area of approximately 64.07 million square meters by the end of 2023, a year-on-year increase of 19.2%. The contract area was about 76.7 million square meters, up by 9.5% [1] - Business property accounted for 40% of the managed area, while residential and public/industrial properties accounted for 38.7% and 21.3% respectively [1] Financial Performance - The gross profit margin decreased from 23.9% in 2022 to 19.0% in 2023, primarily due to increased competition in the market [16] - The company's operating income is projected to grow steadily, with estimates of 4,378.76 million for 2024 and 4,925.04 million for 2025, reflecting growth rates of 11.5% and 12.5% respectively [6][9] Value-Added Services - Revenue from value-added services was approximately 679.27 million, a year-on-year increase of 1.6%, with owner value-added services seeing a significant rise of 105.4% [3][4] - Other business revenue decreased by 40.4% to 26.18 million, mainly due to a reduction in financial services revenue [3]

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。 截 至2023年12月31日止年度的全年業績公告 1. 2023年本集團收入約為人民幣3,926.81百 萬 元，較2022年約人民幣3,527.40百 萬元增長11.3%。 3. 2023年本公司擁有人應佔利潤約為人民幣302.69百 萬 元，較2022年約人民 幣403.49百萬元下降25.0%。 業 績 基 本 24.8 33.1 綜合損益表 截 至2023年12月31日止年度 （以 人 民 幣 呈 列） 綜合損益及其他全面收益表 截 至2023年12月31日止年度 （以人民幣呈列） 綜合財務狀況表 於2023年12月31日 （以 人 民 幣 呈 列） – 4 – 總資產減流動負債 3,746,431 3,787,626 EXCELLENCE COMMERCIAL PROPERTY & FACILITIES MANAGEMENT GROUP ...

Revenue Performance - As of December 31, 2022, Beijing Global Wealth's property management projects generated revenue of approximately RMB 65.37 million, exceeding the guaranteed revenue of RMB 58.63 million for the same period[5] - The guaranteed revenue remains effective until December 31, 2025, with a 10% fee increase not implemented before December 31, 2021[2] - If actual revenue from property management projects falls below the guaranteed revenue during the specified period, Beijing Global Wealth will compensate the difference to the sellers and shareholders[4]

Financial Performance - The net profit for the reporting period was RMB 187.29 million, a decrease of 43.0% compared to RMB 328.39 million in the same period last year[8]. - The profit attributable to shareholders was RMB 170.34 million, down 45.2% from RMB 311.01 million year-on-year[8]. - The gross profit margin decreased from 28.4% in the same period last year to 21.4%[23]. - The gross profit for the group was RMB 393.48 million, with a gross profit margin of 21.4%, down from 28.4% in the same period last year[43]. - Total revenue for the six months ended June 30, 2023, was RMB 1,839.34 million, a decrease of 1.3% compared to RMB 1,862.93 million in the same period of 2022[90]. - Revenue from property management services was RMB 1,565.87 million, representing a 15.3% increase from RMB 1,358.39 million in the previous year[112]. - Revenue from value-added services dropped 44.7% to RMB 262.85 million, down from RMB 475.63 million, accounting for approximately 14.3% of total revenue[95]. - The company's cost of sales increased by 8.5% to RMB 1,445.86 million, compared to RMB 1,333.18 million in the same period of 2022, mainly due to rising personnel and subcontracting costs[96]. Operational Metrics - The total contracted area for the group was approximately 73.30 million square meters, representing a year-on-year increase of about 6.3% compared to the same period in 2022[36]. - The managed area reached approximately 60.42 million square meters, which is a 20.6% increase year-on-year, with 63.6% of the managed properties coming from third-party sources[36]. - The managed area at the end of the reporting period was 60,419 thousand square meters, up from 50,084 thousand square meters in the previous year[37]. - The group signed new contracts worth RMB 253.30 million with strategic clients, achieving a 100% retention rate for these clients[41]. - The group expanded its high-end business brand "Zhuopin Business," achieving a revenue of RMB 92.61 million, which is a 26.6% year-on-year increase[52]. - The group acquired new third-party project contracts totaling RMB 762.51 million during the reporting period, with an annualized contract value of RMB 309.77 million[46]. - The group reported a 162.7% increase in revenue from public and industrial properties compared to the same period last year[46]. Expenses and Losses - Selling and marketing expenses increased by 111.8% to RMB 23.04 million, primarily due to increased costs for business development[32]. - Administrative expenses rose by 32.1% to RMB 111.64 million, mainly due to increased personnel costs and the impact of acquiring a stake in Shanghai Yaozhan Enterprise Management Co., Ltd.[33]. - Other income for the reporting period was RMB 25.46 million, a decrease of 17.2% from RMB 30.74 million in the previous year[29]. - The impairment loss on receivables and contract assets was RMB 24.57 million, up from RMB 13.04 million in the same period last year[31]. - Other business revenue decreased from RMB 28.91 million in the same period of 2022 to approximately RMB 10.62 million, primarily due to a reduction of about RMB 17.07 million in financial services revenue[113]. Assets and Liabilities - Investment properties amounted to RMB 96.05 million as of June 30, 2023, a decrease of RMB 5.45 million from RMB 101.50 million on December 31, 2022, primarily due to depreciation[81]. - Net property, plant, and equipment decreased to RMB 44.59 million as of June 30, 2023, down RMB 9.16 million from RMB 53.75 million on December 31, 2022, mainly due to depreciation[82]. - Intangible assets amounted to RMB 354.88 million as of June 30, 2023, a decrease of RMB 12.58 million from RMB 367.46 million on December 31, 2022, primarily due to amortization of property management contracts[83]. - As of June 30, 2023, the company's cash and cash equivalents were RMB 2,468.68 million, a decrease of 3.7% from RMB 2,564.43 million as of December 31, 2022[110]. - The company maintained a stable financial position with no bank borrowings as of December 31, 2022, but had RMB 24.00 million in bank and other borrowings as of June 30, 2023[107]. - Contract liabilities were approximately RMB 164.62 million, a slight increase from RMB 163.82 million as of December 31, 2022[106]. - As of June 30, 2023, the group's debt-to-asset ratio was 29.9%, an increase from 28.4% on December 31, 2022[119]. - The group has issued financial guarantees amounting to RMB 62.37 million as of June 30, 2023, unchanged from December 31, 2022[126]. - Lease liabilities recognized under new leasing standards amounted to RMB 12.73 million due within one year and RMB 108.03 million due beyond one year[127]. Strategic Initiatives - The company emphasizes talent development and reserves to support rapid business expansion, focusing on cultivating integrated management talents through training programs[58]. - The company aims to enhance market share through innovative market expansion strategies and establishing a solution platform to support bidding processes[67]. - The company is committed to digital transformation to improve decision-making efficiency and enhance core competitiveness[73]. - The company plans to implement a "focus on growth" external strategy in the second half of 2023, aiming to strengthen organizational efficiency and long-term strategic goals[75]. - The group is focusing on enhancing its medical property service platform to capture broader market opportunities in the healthcare sector[118]. - The group aims to develop and optimize its "O+" platform to improve internal controls and management efficiency[137]. - The group is actively pursuing opportunities to acquire or invest in third-party service providers to enhance specific value-added services[134]. - The group plans to strategically acquire or invest in companies with operational scale or profit prospects, with a planned usage amount of RMB 2,351.7 million, representing 70% of the total[121]. Human Resources - The group employed a total of 20,747 full-time employees in China and 44 in India as of June 30, 2023, compared to 15,676 and 66 respectively as of December 31, 2022[171]. - The group plans to strategically recruit and develop professional talent to enhance service quality for clients, with an estimated utilization timeline for unutilized net proceeds by December 31, 2026[153]. Corporate Governance - The company has become a platinum member of BOMA and a member of IFMA and RICS, aligning with international standards in service delivery[63]. - The company is a leading business real estate service operator in China, providing full lifecycle asset maintenance and comprehensive service solutions[199]. - The core property management services target various business types, including commercial, public, industrial, and residential properties[200]. - The company aims to enhance performance and maintain ongoing business relationships through its pre-IPO share option plan[187]. - The board has the discretion to grant share options to qualified participants, including full-time and part-time employees, executives, and directors[182]. - The company is focused on achieving comprehensive value expectations for clients and supporting their business visions[199].

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].

[Chairman's Statement](index=5&type=section&id=Chairman's%20Statement) The Chairman acknowledges 2022 was challenging due to the pandemic, economic downturn, and property market decline, leading to missed performance targets - The company acknowledges that its 2022 performance did not meet expectations, primarily due to the triple pressures of the pandemic in China, economic recession, and the real estate downturn[29](index=29&type=chunk) - The company's future strategy will focus on deepening cooperation with strategic clients, building a second growth curve through M&A, and accelerating digital transformation and talent development[22](index=22&type=chunk)[47](index=47&type=chunk)[5](index=5&type=chunk) - The Board of Directors resolved to maintain a high dividend payout policy, with a **final dividend payout ratio of 70% for 2022** to reward shareholder support[61](index=61&type=chunk) - Management is optimistic about business in 2023, expecting a good growth momentum from the beginning of the year and a solid recovery in annual performance[63](index=63&type=chunk) [Management Discussion and Analysis](index=7&type=section&id=Management%20Discussion%20and%20Analysis) This section analyzes the company's 2022 business and financial performance, highlighting revenue growth, profit decline, and business expansion [Business Overview](index=7&type=section&id=Business%20Overview) The company operates as a leading commercial property service provider in China, with core businesses in basic property management and value-added services [Basic Property Management Services](index=7&type=section&id=Basic%20Property%20Management%20Services) This core business focuses on commercial, public, industrial, and residential properties, with a strategic emphasis on commercial real estate - The company's basic property management services primarily target three types of properties: **commercial, public and industrial, and residential**[51](index=51&type=chunk) - Commercial property management is the company's main development track, serving clients mainly from **Fortune 500 and high-tech enterprises** with customized integrated facility management (FM) and commercial office building (PM) services[52](index=52&type=chunk)[31](index=31&type=chunk)[66](index=66&type=chunk) - The company is actively exploring new tracks in public and industrial properties, focusing on government public buildings, urban services, education, and healthcare facilities[35](index=35&type=chunk)[53](index=53&type=chunk) [Value-added Services](index=10&type=section&id=Value-added%20Services) The company's value-added services aim to meet diverse client needs, focusing on asset services, Zhuopin business services, and M&E engineering services - Key development areas for value-added services include **asset services, Zhuopin business services, and M&E engineering services**[73](index=73&type=chunk)[24](index=24&type=chunk) - Zhuopin business services adopt a **B to B for C model**, providing one-stop support services such as high-end business solutions, corporate value-added services, and digital empowerment for high-tech and Fortune 500 companies[74](index=74&type=chunk)[36](index=36&type=chunk) - M&E engineering services, through its subsidiary Shenghengda M&E, offer an integrated solution of **"hardware + software + platform + service"** to build a green and smart M&E ecosystem[10](index=10&type=chunk)[86](index=86&type=chunk) [Operating Performance Review](index=11&type=section&id=Operating%20Performance%20Review) In 2022, revenue grew slightly, but profits declined due to the real estate downturn's impact on non-owner value-added services, while business scale expanded significantly [Performance Overview](index=11&type=section&id=Performance%20Overview) In 2022, total revenue was RMB 3.53 billion, but net profit declined due to non-owner value-added services, while business scale expanded Key Financial Indicators for FY2022 | Indicator | 2022 (RMB million) | 2021 (RMB million) | YoY Change | | :--- | :--- | :--- | :--- | | **Revenue** | 3,527.40 | 3,467.07 | +1.7% | | **Gross Profit** | 844.35 | 959.63 | -12.0% | | **Overall Gross Profit Margin** | 23.9% | 27.7% | -3.8 p.p. | | **Net Profit Attributable to Owners** | 403.49 | 510.09 | -20.9% | | **Net Profit Margin** | 12.1% | 15.8% | -3.7 p.p. | | **Core Net Profit Attributable to Owners (excluding non-owner value-added services)** | - | - | +17.4% | Changes in Gross Floor Area (GFA) Under Management ('000 sqm) | Item | 2022 | 2021 | | :--- | :--- | :--- | | **Opening GFA Under Management** | 36,635 | 32,018 | | **New Engagements** | 17,066 | 11,091 | | **New Acquisitions** | 4,505 | – | | **Terminations/Disposals** | (4,446) | (6,474) | | **Closing GFA Under Management** | 53,760 | 36,635 | Revenue and GFA Under Management by Geographical Region (2022) | Region | GFA Under Management ('000 sqm) | GFA Share (%) | Revenue (RMB '000) | Revenue Share (%) | | :--- | :--- | :--- | :--- | :--- | | **Greater Bay Area** | 23,378 | 43.5 | 1,616,597 | 57.4 | | **Yangtze River Delta** | 10,591 | 19.7 | 391,693 | 13.9 | | **Other Regions** | 19,790 | 36.8 | 806,503 | 28.7 | | **Total** | 53,760 | 100.0 | 2,814,793 | 100.0 | Gross Profit Margin of Basic Property Services Segment | Property Type | 2022 (%) | 2021 (%) | | :--- | :--- | :--- | | **Commercial Properties** | 23.1 | 25.5 | | **Public and Industrial Properties** | 11.0 | 13.8 | | **Residential Properties** | 15.9 | 17.0 | | **Total** | 21.1 | 22.9 | [Core Competency Analysis](index=15&type=section&id=Core%20Competency%20Analysis) The company's core strengths lie in its premium brand, standardized services, strategic talent development, and continuous digital innovation - The company has established a **premium brand image** by winning numerous industry awards for its leading comprehensive strength and service quality[493](index=493&type=chunk)[508](index=508&type=chunk) - The company has formed a **comprehensive service standard** by obtaining multiple international management system certifications like ISO 9001 and ISO 14001, and memberships in associations like BOMA and IFMA[494](index=494&type=chunk) - The company deeply invests in **strategic talent cultivation and reserves**, supporting business development through programs like the Management Trainee Program, Zhuo Jiang Program, and COE Forum[496](index=496&type=chunk) - The company is committed to **digital innovation**, leveraging its E+FM smart dual platforms with IoT and big data to reduce costs and increase efficiency, and enhancing management efficiency through its "business-finance integration" platform[509](index=509&type=chunk)[533](index=533&type=chunk)[497](index=497&type=chunk) [Financial Review](index=19&type=section&id=Financial%20Review) Total revenue grew 1.7% to RMB 3.53 billion, driven by basic property services, while profits fell due to declining value-added services and increased impairment losses Revenue Composition and Changes (RMB million) | Business Segment | 2022 Revenue | Share (%) | 2021 Revenue | Share (%) | YoY Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | **Basic Property Management Services** | 2,814.8 | 79.8 | 2,630.8 | 75.9 | +7.0% | | **Value-added Services** | 668.7 | 19.0 | 780.5 | 22.5 | -14.3% | | **Other Businesses** | 43.9 | 1.2 | 55.8 | 1.6 | -21.3% | | **Total Revenue** | 3,527.4 | 100.0 | 3,467.1 | 100.0 | +1.7% | Gross Profit and Gross Profit Margin Composition (RMB million) | Business Segment | 2022 Gross Profit | Gross Profit Margin (%) | 2021 Gross Profit | Gross Profit Margin (%) | | :--- | :--- | :--- | :--- | :--- | | **Basic Property Management Services** | 593.2 | 21.1 | 602.2 | 22.9 | | **Value-added Services** | 221.3 | 33.1 | 323.6 | 41.5 | | **Other Businesses** | 29.8 | 68.0 | 33.8 | 60.7 | | **Total** | 844.3 | 23.9 | 959.6 | 27.7 | - **Impairment losses** on receivables, contract assets, and financial guarantees amounted to **RMB 84.18 million**, a significant increase from RMB 12.9 million last year, mainly due to stricter provisions for trade receivables and credit impairment on a financial guarantee for Beijing Universal[574](index=574&type=chunk) - **Administrative expenses decreased by 14.4% YoY** to RMB 174 million, primarily due to reduced staff costs[576](index=576&type=chunk) - As of the end of 2022, the company held **RMB 2.56 billion in cash and equivalents** with a gearing ratio of 28%, maintaining a sound financial position[241](index=241&type=chunk)[237](index=237&type=chunk) [Future Prospects](index=16&type=section&id=Future%20Prospects) The company will focus on growth and cost efficiency in 2023 by deepening client relationships, expanding through M&A, and driving digital transformation [Strategic Planning](index=16&type=section&id=Strategic%20Planning) The company's long-term strategy focuses on organizational, business, and capability building, driven by value distribution and management culture - The company's long-term strategic direction is **"Three Constructions (Organization, Business, Capability) and Two Drivers (Value Distribution, Management Culture)"**[534](index=534&type=chunk) - The core of the 2023 business deployment is **"Focus on Growth, Reduce Costs and Increase Efficiency,"** supported by talent development and digital transformation[535](index=535&type=chunk) [Business Development Strategy](index=17&type=section&id=Business%20Development%20Strategy) The company will drive growth by deepening its main business, expanding through M&A, and productizing value-added services while improving efficiency via digitalization - **Main Business Track**: Continue to deepen relationships with strategic clients through full life-cycle management, aligning with their development to create value and expand market share[513](index=513&type-chunk)[536](index=536&type=chunk) - **Extended Business**: Adhere to a multi-engine drive, continuing to expand into new tracks through joint ventures and M&A, focusing on quality targets in first-tier and new first-tier cities[515](index=515&type=chunk)[537](index=537&type=chunk) - **Value-added Business**: Focus on productizing professional value-added services, targeting the needs of property owners' living circles and corporate administrative demands to enhance overall profitability[516](index=516&type=chunk) - **Cost Reduction and Efficiency Improvement**: Achieve transparent project management and improve operational efficiency through digital transformation; enhance organizational effectiveness and achieve flatter management through business and functional integration[518](index=518&type=chunk)[539](index=539&type=chunk) [Use of IPO Proceeds](index=28&type=section&id=Use%20of%20IPO%20Proceeds) The company utilized approximately HK$1.09 billion of its net IPO proceeds by year-end 2022 and reallocated the remaining funds for business expansion Use of IPO Proceeds and Utilization Status (as of December 31, 2022) | Main Category | Reallocated Planned Use (HK$ million) | Reallocated Share (%) | Amount Utilized (HK$ million) | Unutilized Amount (HK$ million) | | :--- | :--- | :--- | :--- | :--- | | **Business Expansion** | 1,853.8 | 55.00% | 522.4 | 1,331.4 | | **Development of IT Systems** | 402.7 | 12.00% | 91.2 | 311.5 | | **Facility Upgrades** | 168.0 | 5.00% | 131.1 | 36.9 | | **Talent Acquisition and Training** | 601.7 | 18.00% | 131.4 | 470.3 | | **Working Capital and General Purposes** | 336.0 | 10.00% | 209.2 | 126.8 | | **Total** | **3,362.2** | **100.00%** | **1,085.3** | **2,276.9** | [Material Investments, Acquisitions, and Disposals](index=31&type=section&id=Material%20Investments,%20Acquisitions,%20and%20Disposals) During the reporting period, the company terminated an agreement to sell its entire equity interest in Shenzhen Zhuotou Microfinance Co, Ltd - The company terminated the plan to sell its equity in Shenzhen Zhuotou Microfinance Co, Ltd, due to the failure to obtain approval from the industry's competent authority[101](index=101&type=chunk) - According to the termination agreement, the company has refunded the total consideration of **RMB 305.1 million** to the buyer without interest[101](index=101&type=chunk) [Directors and Senior Management](index=32&type=section&id=Directors%20and%20Senior%20Management) This chapter details the backgrounds of the company's Board of Directors and senior management team, showcasing their extensive professional experience - Executive Directors Mr Li Xiaoping (Chairman) and Ms Guo Ying are responsible for the company's overall strategic planning and daily operations[103](index=103&type=chunk)[665](index=665&type=chunk) - Non-executive Directors Mr Wang Dou and Mr Wang Yinhu primarily provide guidance on the Group's overall development[640](index=640&type=chunk)[641](index=641&type=chunk) - Independent Non-executive Directors Mr Huang Mingxiang, Mr Kam Chi Shing, and Ms Liu Xiaolan are responsible for providing independent advice on the Group's operations and management[643](index=643&type=chunk)[644](index=644&type=chunk)[645](index=645&type=chunk) - The senior management team includes COO Mr Yang Zhidong, CFO Mr Jia Jie, and CHRO Ms Zhang Yan, who possess extensive industry experience in their respective fields[675](index=675&type=chunk)[702](index=702&type=chunk)[649](index=649&type=chunk) [Report of the Directors](index=38&type=section&id=Report%20of%20the%20Directors) This report covers statutory disclosures for 2022, including business performance, dividend policy, share capital, and connected transactions [Business Review and Dividends](index=38&type=section&id=Business%20Review%20and%20Dividends) The Board recommends a final dividend of HK 6.09 cents per share and discloses customer and supplier concentration for the year - The Board recommends the payment of a final dividend of **HK 6.09 cents per share**, subject to approval at the Annual General Meeting[143](index=143&type=chunk) - As of the end of 2022, the **top five customers accounted for 32.7% of total revenue**, with the largest customer contributing 18.1%; the **top five suppliers accounted for 27.4% of total purchases**, with the largest supplier at 7.3%[124](index=124&type=chunk)[147](index=147&type=chunk) [Share Capital, Reserves, and Directors](index=41&type=section&id=Share%20Capital,%20Reserves,%20and%20Directors) The company's distributable reserves amounted to approximately RMB 3.086 billion, and all independent non-executive directors met independence requirements - As of December 31, 2022, the company's distributable reserves amounted to approximately **RMB 3.086 billion**[688](index=688&type=chunk) - The company has received confirmation of independence from each Independent Non-executive Director and considers them all to be independent[129](index=129&type=chunk) [Directors' and Shareholders' Interests](index=44&type=section&id=Directors'%20and%20Shareholders'%20Interests) This section discloses the interests of directors and substantial shareholders, with the controlling shareholder Mr Li Hua holding a 59.04% interest Substantial Shareholders' Interests (as of December 31, 2022) | Shareholder Name | Capacity/Nature of Interest | Number of Shares Held | Approximate Percentage (%) | | :--- | :--- | :--- | :--- | | **Mr Li Hua** | Interest in a controlled corporation | 721,801,000 | 59.04 | | **Ms Xiao Xingping** | Controlled corporation/Beneficial/Spouse interest | 129,192,000 | 10.58 | | **Mr Li Yuan** | Interest in a controlled corporation | 63,000,000 | 5.30 | - The company has a Pre-IPO Share Option Scheme, under which a total of **28,200,000 share options** were granted on September 9, 2020[178](index=178&type=chunk) - The vesting of share options is linked to the profit growth attributable to the Group's shareholders; as the vesting conditions for 2022 were not met, the corresponding one-third of the options for that year have lapsed[164](index=164&type=chunk)[180](index=180&type=chunk)[184](index=184&type=chunk) [Connected Transactions](index=56&type=section&id=Connected%20Transactions) This section details ongoing connected transactions with related parties, primarily the controlling shareholder, which were confirmed to be fair and reasonable Major Continuing Connected Transactions and Actual Amounts for 2022 (RMB) | Transaction Type | 2022 Actual Amount (million) | Counterparty | | :--- | :--- | :--- | | **Property Management Services** | 400.51 | Mr Li's Companies | | **System Supply and Installation Services** | 172.65 | Mr Li's Companies | | **Trading of Construction Materials** | 126.81 | Mr Li's Companies | | **Leasing of Commercial Properties** | 78.92 | Mr Li's Companies | | **Marketing and Promotion Services** | 49.45 | Mr Li's Companies | | **Acquisition of Parking Space Usage Rights** | 33.53 | Mr Li's Companies | - The Independent Non-executive Directors have reviewed all non-exempt continuing connected transactions and confirmed they were conducted on normal commercial terms in the ordinary course of business and are in the overall interests of the shareholders[352](index=352&type=chunk) - The company's auditor has issued a letter on the continuing connected transactions in accordance with the Listing Rules, confirming that the transactions were approved by the Board, consistent with the pricing policy, conducted under the relevant agreements, and did not exceed the annual caps[332](index=332&type=chunk)[352](index=352&type=chunk) [Corporate Governance Report](index=64&type=section&id=Corporate%20Governance%20Report) This report confirms the company's compliance with the Corporate Governance Code and details its governance structure, board committees, and risk management systems [Board of Directors and Governance Structure](index=64&type=section&id=Board%20of%20Directors%20and%20Governance%20Structure) The company complied with the Corporate Governance Code, with a board structure that meets independence and diversity requirements and ensures a clear separation of roles - The company has complied with all applicable code provisions of the Corporate Governance Code throughout 2022[359](index=359&type=chunk) - The Board consists of 7 members, including **3 Independent Non-executive Directors (over one-third)**, meeting Listing Rules requirements; **women comprise 29% of the Board**[377](index=377&type=chunk)[407](index=407&type-chunk)[404](index=404&type=chunk) - The roles of Chairman and General Manager are held by different individuals with clear responsibilities, in compliance with the Corporate Governance Code[406](index=406&type=chunk) - A total of **18 board meetings** were held during the year, with **100% attendance** from all directors[411](index=411&type=chunk) [Board Committees](index=71&type=section&id=Board%20Committees) The company has established Audit, Nomination, and Remuneration Committees, each with a majority of independent directors, to assist the Board - The **Audit Committee**, chaired by Mr Kam Chi Shing, consists of one non-executive director and three independent non-executive directors, and oversees financial reporting, risk management, and internal controls[393](index=393&type=chunk)[416](index=416&type=chunk) - The **Nomination Committee**, chaired by Mr Li Xiaoping, consists of the chairman and three independent non-executive directors, and is responsible for reviewing the board structure and nominating directors[397](index=397&type=chunk)[398](index=398&type=chunk) - The **Remuneration Committee**, chaired by Mr Huang Mingxiang (an INED), consists of Mr Li Xiaoping and two other independent non-executive directors, and is responsible for reviewing and recommending remuneration policies for directors and senior management[420](index=420&type=chunk)[400](index=400&type=chunk) [Risk Management and Internal Control](index=75&type=section&id=Risk%20Management%20and%20Internal%20Control) The company has a four-tier risk management framework, with the Board holding ultimate responsibility for maintaining and reviewing the system's effectiveness - The company has established a **four-tier risk management and internal control framework** comprising the Board, Audit Committee, Senior Management, and Risk Control Department[444](index=444&type=chunk) - The Board has **ultimate responsibility for the effectiveness of the system** and has conducted an annual review covering financial, operational, and compliance controls[595](index=595&type=chunk)[425](index=425&type=chunk) - The Group has an internal audit function (performed by the Risk Control Department) to supervise and evaluate the establishment and implementation of the internal control system[448](index=448&type=chunk) [Auditor and Shareholder Communication](index=78&type=section&id=Auditor%20and%20Shareholder%20Communication) Total remuneration paid to the auditor KPMG was RMB 6.225 million, and the company maintains effective communication with shareholders through various channels Auditor's Remuneration for FY2022 (RMB '000) | Service Category | Amount | | :--- | :--- | | **Audit Services** | 3,000 | | **Other Services** | 3,225 | | **Total** | 6,225 | - The company has adopted a shareholder communication policy to ensure effective communication with shareholders through channels such as the company website and general meetings[452](index=452&type=chunk)[453](index=453&type=chunk) [Independent Auditor's Report](index=80&type=section&id=Independent%20Auditor's%20Report) The auditor issued an unmodified opinion on the financial statements, highlighting three key audit matters related to expected credit losses and goodwill impairment [Audit Opinion](index=80&type=section&id=Audit%20Opinion) The auditor, KPMG, concluded that the consolidated financial statements give a true and fair view of the Group's financial position and performance - The auditor issued an **unmodified (clean) opinion** on the consolidated financial statements[458](index=458&type=chunk) [Key Audit Matters](index=80&type=section&id=Key%20Audit%20Matters) The audit identified three key matters: expected credit loss on trade receivables, potential goodwill impairment, and credit loss on a financial guarantee - **Key Audit Matter 1**: Expected credit loss provision for trade receivables; the net balance was **RMB 936 million**, and its impairment assessment involves significant management judgment[460](index=460&type=chunk) - **Key Audit Matter 2**: Potential impairment of goodwill; the carrying amount was **RMB 253 million**, and its impairment assessment relies on significant estimates of future cash flows, with an impairment of **RMB 28.16 million** recognized this year[463](index=463&type=chunk) - **Key Audit Matter 3**: Expected credit loss provision for a financial guarantee issued; arising from the acquisition of Beijing Universal, an expected credit loss of **RMB 62.37 million** was measured, involving significant judgment on the collateral's liquidation value[486](index=486&type=chunk) [Consolidated Financial Statements](index=89&type=section&id=Consolidated%20Financial%20Statements) This section presents the audited consolidated financial statements for the year ended December 31, 2022, including all primary statements and detailed notes [Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=89&type=section&id=Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) The company generated revenue of RMB 3.53 billion and profit attributable to equity holders of RMB 403 million in 2022 2022 Consolidated Income Statement Summary (RMB '000) | Item | 2022 | 2021 | | :--- | :--- | :--- | | **Revenue** | 3,527,396 | 3,467,066 | | **Gross Profit** | 844,346 | 959,627 | | **Operating Profit** | 606,818 | 777,603 | | **Profit Before Tax** | 600,028 | 765,735 | | **Profit for the Year** | 426,455 | 547,481 | | **Attributable to Equity Holders of the Company** | 403,494 | 510,088 | | **Basic Earnings Per Share (RMB Cents)** | 33.1 | 41.7 | [Consolidated Statement of Financial Position](index=91&type=section&id=Consolidated%20Statement%20of%20Financial%20Position) As of December 31, 2022, the company's total assets were RMB 5.01 billion, with total liabilities of RMB 1.42 billion and net assets of RMB 3.59 billion 2022 Consolidated Statement of Financial Position Summary (RMB '000) | Item | 2022 | 2021 | | :--- | :--- | :--- | | **Non-current Assets** | 942,057 | 559,117 | | **Current Assets** | 4,070,075 | 4,513,019 | | **Total Assets** | 5,012,132 | 5,072,136 | | **Current Liabilities** | 1,224,506 | 1,473,479 | | **Non-current Liabilities** | 198,327 | 132,225 | | **Total Liabilities** | 1,422,833 | 1,605,704 | | **Total Equity** | 3,589,299 | 3,466,432 | [Consolidated Statement of Changes in Equity](index=93&type=section&id=Consolidated%20Statement%20of%20Changes%20in%20Equity) Total equity increased from RMB 3.47 billion to RMB 3.59 billion, driven by profits for the year, partially offset by dividend payments [Consolidated Statement of Cash Flows](index=95&type=section&id=Consolidated%20Statement%20of%20Cash%20Flows) Net cash from operating activities decreased significantly to RMB 192 million, and year-end cash stood at RMB 2.56 billion 2022 Consolidated Statement of Cash Flows Summary (RMB '000) | Item | 2022 | 2021 | | :--- | :--- | :--- | | **Net Cash from Operating Activities** | 192,087 | 810,056 | | **Net Cash Used in Investing Activities** | (165,134) | (412,240) | | **Net Cash Used in Financing Activities** | (447,066) | (638,623) | | **Net Decrease in Cash and Cash Equivalents** | (420,113) | (240,807) | | **Cash and Cash Equivalents at End of Year** | 2,564,428 | 3,007,300 | [Notes to the Consolidated Financial Statements](index=96&type=section&id=Notes%20to%20the%20Consolidated%20Financial%20Statements) The notes provide detailed explanations of accounting policies and breakdowns of items in the primary financial statements [Five-Year Financial Summary](index=176&type=section&id=Five-Year%20Financial%20Summary) This section presents key financial data from 2018 to 2022, showing sustained revenue growth and a significant expansion in assets post-IPO Five-Year Financial Data Summary (RMB million) | Indicator | 2018 | 2019 | 2020 | 2021 | 2022 | | :--- | :--- | :--- | :--- | :--- | :--- | | **Revenue** | 1,223.2 | 1,836.0 | 2,525.1 | 3,467.1 | 3,527.4 | | **Gross Profit** | 294.2 | 433.4 | 663.8 | 959.6 | 844.3 | | **Profit for the Year** | 156.6 | 233.6 | 355.9 | 547.5 | 426.5 | | **Profit Attributable to Equity Holders of the Company** | 125.8 | 178.5 | 325.0 | 510.1 | 403.5 | | **Total Assets** | 1,380.8 | 2,551.9 | 4,930.0 | 5,072.1 | 5,012.1 | | **Total Equity** | 362.8 | 455.9 | 3,256.3 | 3,466.4 | 3,589.3 |

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].