2024年4月26日 公司研究 减值计提较为充分，现金流进一步改善 ——金科服务（9666.HK）跟踪报告 要点 增持（维持） 事件：公司在二级市场积极回购股份，2023年度归母净利润同比减亏。 当 前价：9.09港元 2023年，公司累计在资本市场回购2882.62万股股份，回购金额约2.66亿元； 截至4月25日，公司在2024年内合计回购54.5万股，回购金额约449万元。 作者 2023年公司实现收入49.8亿元，同比持平；毛利9.3亿元，同比减少 1.6%， 分析师：何缅南 毛利率18.6%，同比下降0.2pct；归母净利润为亏损9.5亿元，同比减亏。 执业证书编号：S0930518060006 021-52523801 点评：聚焦核心业务，优化在管项目组合，现金流改善，静待盈利企稳。 hemiannan@ebscn.com 1)聚焦核心业务，提升发展质量。经历外部经济环境变化、关联地产业务冲击和 股权结构调整，公司从过去高速增长转向高质量发展，聚焦核心业务。2023年， 联系人：韦勇强 021-52523810 物业管理/非业主增值/本地生活/社区增值/数智科技分别实现收入 weiyongqian ...

2024 年 3月 27日，公司发布 2023 年业绩：实现营收49.8 亿元， 同比-0.51%；实现归母净亏损 9.51 亿元，而 2022 年同期为归母 净亏损18.19 亿元。 23年业绩不及预期，24年卸下包袱轻装上阵。公司2023年营收 略低于预期，主要由于公司退出部分低效项目，在管面积增速下 降，导致物管服务收入增速放缓。归母净利润仍处于亏损状态， 主要由于公司考虑金科集团最新经营情况，再次对其未偿的应收 账款计提减值拨备。截至 2023 年末，金融资产减值亏损净额约 14.71 亿元。本次计提后，公司应收款项主要为第三方小业主的物 业费，因此2024 年公司业绩有望轻装上阵。 港币(元) 成交金额(百万元) 物业管理服务提质增效，收缴率提升。截至2023 年末，公司在管 14.00 70 面积2.68亿方，同比+5.14%；合约面积 3.51亿方，同比-2.49%。 13.00 60 12.00 50 2023 年公司为提升经营效率，优化物业组合，终止在管面积0.36 11.00 40 亿方，终止合约面积0.43 亿方，均较2022 年有所提升。2023 年 10.00 30 9.00 20 ...

Financial Performance - The total revenue for 2023 was approximately RMB 4,979.7 million, remaining stable compared to RMB 5,005.1 million in 2022[1] - The annual gross profit was approximately RMB 928.2 million, a slight decrease of about 1.6% from RMB 943.2 million in 2022, maintaining a gross margin of 18.6%[1] - The annual loss was approximately RMB 981.7 million, with a loss attributable to owners of approximately RMB 951.0 million[1] - The company reported a basic and diluted loss per share of RMB 1.49, compared to RMB 2.80 in 2022[2] - For the year ended December 31, 2023, total revenue reached RMB 4,979,741,000, a slight decrease from RMB 5,005,059,000 in 2022, representing a year-over-year decline of approximately 0.51%[16] - The company reported a loss attributable to owners of RMB 951,038,000 for the year ended December 31, 2023, compared to a loss of RMB 1,818,545,000 for the previous year, representing a 47.7% improvement[30] - Basic and diluted loss per share for the year ended December 31, 2023, was RMB 1.49, an improvement from RMB 2.80 in 2022, indicating a 46.8% reduction in losses per share[30] Revenue Breakdown - Revenue from property management services was approximately RMB 4,092.0 million, slightly down from RMB 4,101.2 million in 2022, with core property management services revenue increasing by about 7.1% to RMB 3,936.7 million[1] - Revenue from space property services was RMB 4,092,028,000, showing a marginal increase from RMB 4,088,782,000 in the previous year[16] - Local life services revenue increased significantly to RMB 64,879,000 from RMB 30,191,000, marking a growth of approximately 115.5%[16] - Community value-added services revenue rose to RMB 253,540,000, up from RMB 160,842,000, reflecting an increase of about 57.4%[16] - Revenue from local life services rose by approximately 5.3% to about RMB 513.9 million, primarily due to a 73.8% increase in meal service revenue to about RMB 344.4 million, while external meal supply chain services decreased by approximately 86.2% to about RMB 20.6 million[60] - Revenue from community value-added services decreased by approximately 4.7% to about RMB 317.1 million, attributed to a focus on sustainable and cash flow-secured businesses, leading to a decline in certain self-operated services[60] - Revenue from smart technology services decreased to RMB 44,980,000 from RMB 52,782,000, a decline of approximately 14.8%[16] Cash and Liquidity - As of December 31, 2023, the company had cash and cash equivalents of approximately RMB 2,905.5 million, with a net cash inflow from operating activities of approximately RMB 451.1 million during the year[1] - Cash and cash equivalents decreased to RMB 2,905,545,000 as of December 31, 2023, from RMB 3,069,784,000 in 2022, representing a decline of 5.3%[40] - The company had no borrowings as of December 31, 2023, maintaining a capital debt ratio of zero[97] Assets and Liabilities - The total assets decreased from RMB 8,356.8 million in 2022 to RMB 7,657.3 million in 2023[5] - The total liabilities increased from RMB 2,956.4 million in 2022 to RMB 3,560.1 million in 2023[7] - Trade receivables from third parties increased to RMB 2,235,628,000 as of December 31, 2023, up from RMB 1,916,515,000 in 2022, reflecting a growth of 16.7%[33] - The company recognized an impairment provision of RMB 1,369,516,000 against trade receivables as of December 31, 2023, compared to RMB 1,029,509,000 in 2022, marking a 33.1% increase in provisions[37] - The total current portion of trade receivables and other receivables was RMB 2,093,827,000 as of December 31, 2023, down from RMB 2,388,742,000 in 2022, reflecting a decrease of 12.3%[34] Shareholder Information - The board is unable to declare any final dividend for the year ended December 31, 2023, but aims to stabilize cash dividends in the future[2] - The company did not declare any dividends for the year ending December 31, 2023[52] - The company emphasizes the importance of shareholder returns and aims to balance performance with shareholder satisfaction[57] Strategic Focus and Future Outlook - The company aims to focus on high-quality development and sustainable growth amidst challenges in the real estate market, emphasizing a strategy of "service + ecology, service + technology"[54] - The company plans to enhance its business collection capabilities and aims for sustainable and healthy development in the property management sector[54] - The company is transitioning to an independent professional service provider, focusing on core business areas and high-quality service delivery[53] - The forecasted revenue growth rate for the company’s services is projected at 0.2% for the upcoming period, with a long-term growth rate of 2.2%[49] - The company plans to seek selective strategic investments and acquisitions, with approximately 56.3% of the net proceeds allocated for this purpose[101] Operational Efficiency - The company aims to enhance operational efficiency and reduce costs through digital technology and AI integration[57] - The company is exploring new growth models in community services and asset management to enhance customer engagement[56] - The company has shifted to a development model focusing on independent third-party growth, supplemented by Kincai Group, in response to market changes[65] Employee Information - The company has approximately 12,955 employees as of December 31, 2023, an increase from 12,227 employees in the previous year[105] - The total employee costs recognized for the year amount to approximately RMB 1,938.2 million, compared to RMB 2,038.3 million in the previous year[105]

Business Strategy and Development - The company emphasizes a customer satisfaction-oriented strategy, focusing on the "Service + Technology, Service + Ecology" development approach to enhance quality and scale [25]. - The company has established a differentiated product matrix covering high-end catering and large-scale mid-to-high-end group meals, enhancing synergy between property services and integrated facility management [25]. - The company is actively exploring scaled operations in branded dining, having launched the "Yuqian Dou Dou" hotpot brand, which has received multiple top ratings on various platforms [25]. - The company aims to strengthen resource and business collaboration across its core residential and enterprise services, accelerating the development of asset management, hotel catering, facility maintenance, and energy management products [25]. - The company aims to enhance its local life service capabilities, focusing on catering services, hotel management, and food supply chain services [31]. - The company plans to strengthen its community value-added service ecosystem, targeting high-profit and cash flow business models [31]. - The company will continue to implement a "street community grid" expansion strategy to enhance market development channels [29]. - The company emphasizes the integration of property services with catering and smart technology to provide comprehensive solutions [31]. - The company is focused on improving its operational efficiency through intelligent management systems to reduce costs and increase profitability [31]. - The company aims to consolidate its leading position in core markets along the Yangtze River and southwestern regions [29]. Market Position and Recognition - The company has been recognized as a leading enterprise in the Chinese property service industry, ranking in the top 10 for comprehensive strength and market expansion capabilities [21][23]. - The company has been recognized as a top 10 property service provider in China for eight consecutive years and maintains the leading market share in the western region for seven years [27]. - In 2023, the company was awarded the Top 5 in comprehensive strength and growth potential among listed property service companies in China [27]. Financial Performance - Total revenue for the six months ended June 30, 2023, was approximately RMB 2,464.8 million, a decrease of about 3.9% compared to RMB 2,565.3 million in the same period of 2022 [34]. - Revenue from space property services increased slightly by 0.2% to approximately RMB 2,029.9 million, driven by property management services which grew by approximately 10.8% to RMB 1,944.7 million [35]. - Non-owner value-added services revenue decreased significantly by approximately 68.6% to RMB 85.2 million, primarily due to the real estate industry's liquidity crisis [35]. - Revenue from local life services grew by approximately 10.5% to RMB 242.1 million, largely due to a significant increase in food service revenue, which surged by approximately 287.8% to RMB 159.4 million [37]. - Community value-added services revenue decreased by approximately 43.9% to RMB 160.0 million, impacted by a shift to high-growth, high-repayment-rate businesses [37]. - Revenue from digital technology services slightly decreased by approximately 5.9% to RMB 32.8 million, with non-related party revenue accounting for about 56.4% [37]. - The company's gross profit decreased by approximately 17.0% to about RMB 563.5 million, with the gross profit margin declining by 3.6 percentage points to approximately 22.9% [63]. - The gross profit from community value-added services dropped from approximately RMB 196.3 million to about RMB 92.4 million, with the gross profit margin decreasing from approximately 68.8% to about 57.7% [65]. - The company reported a significant decline in non-owner value-added service income, which fell to RMB 85.2 million in 2023 from RMB 271.4 million in 2022, a decrease of approximately 68.6% [52]. - The company reported a profit of RMB 189,479 thousand for the six months ended June 30, 2023, compared to a profit of RMB 357,233 thousand for the same period in 2022, representing a decline of 47.0% [122]. Operational Efficiency and Cost Management - The company is focusing on enhancing technological empowerment and cost reduction through smart equipment upgrades and digital transformation initiatives [33]. - The company aims to improve internal control systems and employee incentive mechanisms to promote sustainable development [33]. - The company continues to adapt to industry changes by reducing the number of projects provided to developers facing liquidity crises, focusing instead on cash flow and guaranteed returns [52]. - The company actively reduced low-margin external catering supply chain services, leading to a decrease in revenue from this segment to RMB 7.3 million, down from RMB 112.8 million in the previous year [56]. Acquisitions and Investments - The company completed the acquisition of Chengdu Shuchuan Property Service Co., enhancing management density in core regions [41]. - The company launched a "Residential Development Plan" targeting the stock market, acquiring 18 high-quality third-party residential projects in 2023 [39]. - The company has identified HKD 2,032.0 million (30.5%) for investments or acquisitions in property management companies that meet its quality standards by December 2025 [87]. - The company completed the acquisition of 51% of Sichuan Services and has a forward contract to purchase an additional 49% by January 2024, reflecting 100% economic interest in Sichuan Services [189]. - The total purchase consideration for acquiring 100% of Sichuan Services and New Oriental Services amounted to RMB 159,272,000, with identifiable net assets valued at RMB 77,469,000 [190]. Shareholder and Corporate Governance - The company is committed to enhancing its corporate governance practices and has adopted a corporate governance code [94]. - The audit committee has been established according to the corporate governance code, consisting of four members, including Mr. Liang Zhongtai and Ms. Yuan Lin [96]. - The company will issue further announcements regarding the appointment of independent non-executive directors as necessary [96]. - The company has confidence in its business outlook, as reflected in its share repurchase strategy [112]. - The company declared no interim dividend for the six months ended June 30, 2023, consistent with the previous year [188]. Market Challenges - The real estate market in China is facing significant challenges, with new home sales and development investments continuing to decline in the first half of 2023 [27]. - The company continues to monitor trade receivables and enhance risk control measures due to tight cash flow from major clients in the real estate sector [71].

Financial Performance - The total revenue for the six months ended June 30, 2023, was approximately RMB 2,464.8 million, a decrease of about 3.9% compared to RMB 2,565.3 million for the same period in 2022[2]. - Revenue from property management services was approximately RMB 1,944.7 million, representing a growth of about 10.8% from RMB 1,754.5 million in the same period of 2022[2]. - The gross profit for the period was approximately RMB 563.5 million, down about 17.0% from RMB 678.6 million in the same period of 2022, resulting in a gross profit margin of 22.9%[2]. - The net profit for the period was approximately RMB 216.1 million, with profit attributable to the owners of the company being approximately RMB 189.5 million[2]. - Earnings per share for the period were RMB 0.29, down from RMB 0.55 in the same period of 2022[4]. - The company reported a decrease in operating profit to approximately RMB 239.2 million from RMB 411.9 million in the same period of 2022[4]. - The company reported a net loss of RMB 3,086 thousand for other income/expenses, compared to a gain of RMB 4,596 thousand in the previous year[21]. - The actual income tax expense for the six months ended June 30, 2023, was RMB 50,168 thousand, with an effective tax rate of 18.8%, up from 12.3% in the previous year[22][23]. Assets and Liabilities - The total assets as of June 30, 2023, amounted to approximately RMB 8,608.0 million, compared to RMB 8,356.8 million as of December 31, 2022[5]. - The total liabilities as of June 30, 2023, were approximately RMB 3,036.7 million, compared to RMB 2,956.4 million as of December 31, 2022[7]. - As of June 30, 2023, the company had cash and cash equivalents of approximately RMB 2,851.5 million[2]. - The company's cash and cash equivalents as of June 30, 2023, totaled RMB 2,851,471,000, down from RMB 3,069,784,000 as of December 31, 2022, representing a decrease of approximately 7.11%[38]. - The provision for expected credit losses on trade receivables was RMB 1,148,988,000 as of June 30, 2023, compared to RMB 1,029,509,000 as of December 31, 2022, reflecting an increase of about 11.56%[37]. Revenue Breakdown - Revenue is derived from space property services, local living services, community value-added services, and digital technology services, with detailed revenue analysis provided for the six-month periods ending June 30, 2023, and 2022[16]. - Revenue from spatial property services was RMB 2,029,877 thousand, slightly up from RMB 2,013,850 thousand, while local life services dropped to RMB 9,204 thousand from RMB 13,103 thousand[17]. - Non-owner value-added services revenue decreased by approximately 68.6% to about RMB 85.2 million, primarily due to the severe liquidity crisis in the real estate sector[48]. - Local living services revenue grew by approximately 10.5% to about RMB 242.1 million, driven by a significant increase in meal service revenue, which surged by approximately 287.8% to about RMB 159.4 million[49]. - Community value-added services revenue decreased by approximately 43.9% to about RMB 160.0 million, influenced by a shift to high-growth, high-repayment rate businesses and a decline in advertising business due to economic recovery issues[49]. Acquisitions and Investments - The company has acquired two entities during the reporting period, which primarily provide space property services and community value-added services, enhancing its operational capabilities[15]. - The company acquired 100% of Chengdu Shuchuan Property Service Co., Ltd. and 100% of Shijiazhuang New Oriental Property Service Co., Ltd., with identifiable net assets totaling RMB 77,469,000, including recognized customer relationships valued at RMB 89,300,000[43]. - The company is cautious about acquisition opportunities despite having ample cash on hand, focusing on independent third-party quality property targets[54]. - The group plans to allocate approximately 60% of the net proceeds for selective strategic investments and acquisitions, amounting to HKD 3,996.5 million[93]. Market and Strategy - The company maintained its position as a leading third-party service provider in China, achieving top rankings in various categories, including Top 5 for comprehensive strength and growth potential in property services[44]. - The real estate market in China faced significant challenges, with new home sales and development investments declining, impacting the property service industry[44]. - The company is committed to a strategy of "profitable revenue and cash flow profit," focusing on high-quality, sustainable, and differentiated development[44]. - The company aims to enhance its service capabilities and market expansion efforts while navigating the industry's transition from rapid growth to high-quality development[44]. Operational Efficiency and Governance - The company has adopted new accounting standards effective from January 1, 2023, which may impact its financial reporting but are not expected to have a significant effect on the consolidated financial statements[10]. - The company’s major operating segments have been integrated into a single operating segment, streamlining resource allocation and performance assessment[15]. - The company is enhancing its internal control systems and employee incentive mechanisms to promote sustainable development and improve governance capabilities[47]. - The audit committee has been established to oversee the financial reporting process and internal control systems[105]. Employee and Administrative Costs - Employee benefit expenses were RMB 894,309 thousand, a decrease of 4.7% from RMB 938,476 thousand in the previous year[19]. - Administrative expenses increased by approximately 9.6% to about RMB 252.2 million for the six months ended June 30, 2023, driven by an increase in high-level employee numbers and related intermediary fees from acquisition due diligence[78]. - As of June 30, 2023, the group had approximately 12,661 employees, a slight decrease from 12,688 employees as of June 30, 2022[99]. Shareholder and Dividend Information - The company declared a dividend of RMB 424,351,000, with no interim dividend proposed for the six months ended June 30, 2023[43]. - The company repurchased a total of 2,682,200 H-shares at a total cost of RMB 26,766,000 during the six months ended June 30, 2023, with 1,556,800 shares subsequently canceled[103]. - No interim dividend was declared for the period, consistent with the previous year[105].

Financial Performance - Total revenue for 2022 was RMB 5,005.1 million, a decrease of 16.1% from RMB 5,968.4 million in 2021[11]. - Gross profit for 2022 was RMB 943.2 million, with a gross margin of 18.8%, down from 30.9% in 2021[11]. - The net loss for 2022 was RMB 1,839.9 million, resulting in a net loss margin of 36.8% compared to a profit margin of 18.0% in 2021[11]. - The weighted average return on equity for 2022 was (34.1%), a significant decline from 13.8% in 2021[11]. - Basic loss per share for 2022 was RMB (2.80), compared to earnings of RMB 1.62 per share in 2021[11]. - The company's total gross profit fell by approximately 48.9% to RMB 943.2 million in 2022, down from RMB 1,846.4 million in 2021, with the gross margin decreasing from 30.9% to 18.8%[61]. - The gross profit from space property services decreased from RMB 1,141.9 million in 2021 to RMB 730.8 million in 2022, with the gross margin dropping from 29.3% to 17.8%[62]. - The gross profit from community value-added services declined from RMB 621.8 million in 2021 to RMB 92.7 million in 2022, with the gross margin decreasing from 41.6% to 27.9%[62]. Assets and Equity - Total assets as of December 31, 2022, were RMB 8,356.8 million, down from RMB 10,439.5 million in 2021[12]. - Cash and cash equivalents decreased to RMB 3,069.8 million from RMB 4,922.3 million in 2021[12]. - Total equity as of December 31, 2022, was RMB 5,400.4 million, a decline from RMB 7,730.0 million in 2021[12]. Revenue Breakdown - Revenue from space property services increased by about 5.2% to RMB 4,101.2 million, driven by business expansion with an additional managed area of approximately 44.5 million square meters[33]. - Property management service revenue rose by approximately 28.2% to RMB 3,675.7 million, compared to RMB 2,866.6 million in 2021[33]. - Non-owner value-added service revenue decreased by about 58.8% to RMB 425.5 million, primarily due to the macroeconomic environment affecting the real estate industry[33]. - Community value-added service revenue dropped to RMB 332.9 million, down from RMB 1,494.7 million in 2021[33]. - Local life service revenue increased slightly to RMB 487.9 million from RMB 474.0 million in 2021[33]. Strategic Initiatives - The company aims to enhance its market expansion capabilities, being recognized in the top 10 for community value-added services among listed property service companies[13]. - The company aims to implement a "Service + Ecology, Service + Technology" strategy in 2023 to enhance its business matrix and sustainable development[21]. - The company plans to enhance its community value-added services, focusing on asset operation and sustainable community services to drive rapid business development[24]. - The company will strengthen its local life services, particularly in the catering sector, to tap into the trillion-level market[23]. - The company aims to provide integrated solutions combining property services, catering, and smart technology to enhance operational cash flow and profitability[28]. Awards and Recognition - The company received multiple awards in 2022, including being ranked among the top 10 in operational performance and service quality in China's property service industry[13]. - Kins Services has been recognized as a top 10 property service company in China for seven consecutive years, highlighting its sustainable growth and service quality[4]. - In 2022, the company was recognized as a top 10 comprehensive service provider in China and maintained the number one market share in Southwest China for six consecutive years[26]. Community Engagement - The company actively participated in firefighting efforts during a rare drought in Chongqing, demonstrating its commitment to community support[10]. - Kins Services provided comprehensive support during the Beijing Winter Olympics, receiving high praise from the International Olympic Committee[1]. Governance and Management - The company has appointed new non-executive directors to enhance its governance and strategic direction[90]. - The financial management team has undergone significant changes, with key personnel holding advanced qualifications and extensive experience in finance[89]. - The company has a strong focus on compliance with legal and regulatory requirements, reviewing policies and practices regularly[106]. - The board consists of at least three independent non-executive directors, ensuring strong independence[111]. Employee and Workforce - As of December 31, 2022, the group had approximately 12,227 employees, an increase from 11,700 employees as of December 31, 2021[85]. - Employee costs recognized for the year amounted to RMB 2,038.3 million, compared to approximately RMB 1,541.7 million for the previous year[85]. - The company has established talent management and training programs to provide career development guidance and promotion opportunities[129]. Future Outlook - The company anticipates a slowdown in industry growth due to external market changes and aims to focus on high-quality growth rather than blind expansion[27]. - The company plans to explore and evaluate quality acquisition targets to strengthen its market position in core regions[28]. - The company is committed to leveraging data-driven management to improve operational efficiency and enhance service quality for long-term customer satisfaction[28]. Related Party Transactions - The company has engaged in non-exempt continuing connected transactions during the year ended December 31, 2022[172]. - Independent non-executive directors confirmed that the ongoing related party transactions were conducted in the ordinary course of business and on normal commercial terms[182]. - The auditor confirmed that there were no issues regarding the compliance of ongoing related party transactions with the company's pricing policy and relevant agreements[183].

Financial Performance - The total revenue for 2022 was approximately RMB 5,005.1 million, a decrease of about 16.1% compared to RMB 5,968.4 million in 2021[2] - The annual gross profit was RMB 943.2 million, down approximately 48.9% from RMB 1,846.4 million in 2021, resulting in a gross margin of 18.8%[2] - The annual loss amounted to RMB 1,839.9 million, with a loss attributable to owners of RMB 1,818.5 million[2] - The net loss per share for the year was RMB (2.80), compared to earnings of RMB 1.62 per share in 2021[4] - The company reported a pre-tax loss of RMB (2,001,393) thousand for the year ended December 31, 2022, compared to a profit of RMB 1,320,853 thousand in 2021[29] - The company's net loss attributable to shareholders for the year ended December 31, 2022, was RMB 1,818,545,000, resulting in a basic and diluted loss per share of RMB (2.80) compared to a profit of RMB 1.62 in 2021[32][33] Revenue Breakdown - Revenue from space property services increased to RMB 4,101.2 million, up approximately 5.2% from RMB 3,900.2 million in 2021, with property management services generating RMB 3,675.7 million, a 28.2% increase from RMB 2,866.6 million in 2021[2] - Revenue from community value-added services revenue significantly decreased to RMB 160,842,000 in 2022 from RMB 995,419,000 in 2021, a decline of 83.8%[18] - Revenue from space property services was RMB 4,088,782,000 for 2022, up 7.3% from RMB 3,809,295,000 in 2021[18] - Revenue from community value-added services dropped by approximately 77.7% to RMB 332.9 million, primarily due to the impact of pandemic lockdowns and reduced consumer demand[64] - Local life service revenue increased by about 2.9% to RMB 487.9 million, with meal services experiencing over 300% growth to RMB 338.5 million[64] - Revenue from digital technology services decreased by approximately 16.5% to RMB 83.1 million, with a significant drop in income from services provided to the Jinke Group[64] Assets and Liabilities - The total assets decreased to RMB 8,356.8 million from RMB 10,439.5 million in 2021[5] - The total liabilities increased to RMB 2,956.4 million from RMB 2,709.5 million in 2021[7] - The company reported contract liabilities of RMB 740,199,000 as of December 31, 2022, compared to RMB 586,192,000 in 2021, an increase of 26.2%[19] - Trade receivables as of December 31, 2022, amounted to RMB 2,513,957,000, with an impairment provision of RMB 1,029,509,000, compared to RMB 2,082,210,000 and RMB 78,183,000 respectively in 2021[35][39] - The company reported trade payables of RMB 810,511,000 as of December 31, 2022, an increase from RMB 586,941,000 in 2021[42][43] Cash Flow and Liquidity - As of December 31, 2022, the company had cash and cash equivalents of approximately RMB 3,069.8 million[2] - Cash and cash equivalents as of December 31, 2022, totaled RMB 3,069,784,000, a decrease from RMB 4,922,276,000 in 2021[40] - The company's cash flow discount rate for customer relationships ranged from 11.7% to 14.5%, with an expected useful life of 10 years[51] - The company’s cash and cash equivalents in RMB decreased by approximately 25.5% from the previous year, reflecting a significant liquidity contraction[40] Employee and Administrative Expenses - Employee benefits expenses totaled RMB 2,038,331 thousand for the year ended December 31, 2022, compared to RMB 1,541,748 thousand in 2021, reflecting an increase of 32.3%[24] - Administrative expenses increased by 15.9% from approximately RMB 481.3 million to approximately RMB 557.9 million, driven by an increase in high-level employee numbers and due diligence costs related to acquisitions[94] Strategic Focus and Future Plans - The company continues to focus on expanding its space property services and digital technology services despite the overall revenue decline[17] - The company aims to focus on high-quality, sustainable, and differentiated growth, emphasizing profitable revenue and cash flow[57] - The company plans to deepen its presence in four key service areas: space property services, local life services, community value-added services, and digital technology services[57] - The company is strategically expanding its local life services, particularly in the catering sector, with a three-pronged development structure focusing on government and enterprise catering, high-end dining, and community dining[59] - The company aims to accelerate the pace of asset liquidation to improve cash flow while enhancing its asset operation capabilities in real estate, parking spaces, and retail shops[60] Governance and Compliance - The company has adopted and applied the corporate governance code, ensuring compliance with applicable provisions[114] - The audit committee has reviewed the annual performance for the year ended December 31, 2022, and reached an agreement with management on the financial results[119] - The financial statements for the year ended December 31, 2022, have been agreed upon by the external auditor, PwC, confirming consistency with the audited financial reports[120]

Company Performance - In the first half of 2022, the company maintained its position as a leading comprehensive smart property management service provider in China, ranking in the top 10 for comprehensive strength among property service companies for seven consecutive years [28]. - The company achieved a top 2 ranking in service quality and customer satisfaction among the top 100 property service companies in China, reflecting its industry-leading service capabilities [28]. - The total revenue for the first half of 2022 was RMB 2,565.3 million, a slight decrease of approximately 0.89% compared to RMB 2,588.2 million in the same period of 2021 [34]. - The company reported a profit of RMB 357,233 thousand for the six months ended June 30, 2022, compared to the previous period, contributing to the overall equity changes [129]. - Basic and diluted earnings per share were RMB 0.55, compared to RMB 0.80 in the same period last year [122]. - Total comprehensive income for the period was RMB 372,310 thousand, a decrease of 30.7% from RMB 536,257 thousand in the same period of 2021 [122]. Revenue Breakdown - Revenue from space property services increased by approximately 14.6% to RMB 2,026.0 million, driven by a 34.0% increase in property management service revenue to RMB 1,754.5 million [34]. - Revenue from community value-added services decreased by approximately 56.1% to RMB 285.3 million, primarily due to the impact of the COVID-19 pandemic on the tourism business [34]. - Revenue from local life services surged by approximately 93.2% to RMB 219.1 million, attributed to the rapid growth of meal service projects and acquisitions of professional meal service companies [34]. - Revenue from digital technology services decreased by approximately 38.8% to RMB 34.9 million, mainly due to reduced demand for smart site solutions [34]. - Revenue from residential property management services accounted for 79.9% of total property management revenue, down from 81.4% in the same period of 2021, reflecting a decrease of 1.5 percentage points [41]. Growth Strategies - The company is focusing on four growth curves: Space property services, Life value-added services, Catering local life services, and Technology digital intelligence services to enhance market competitiveness [29]. - The company plans to integrate high-quality resources and strengthen ecological collaboration to enhance its value-added service capabilities [26]. - The company aims to become a top local life service hotel operator by accelerating the layout of catering and hotel services [26]. - The company is committed to a differentiated development path, focusing on "service + ecology" and "service + technology" strategies [29]. - The company aims to deepen technology empowerment and promote digital transformation through innovative community consumption models and enhanced intelligent energy consumption control systems [65]. Financial Health - The company's gross profit decreased by approximately 19.3% from approximately RMB 841.4 million for the six months ended June 30, 2021, to approximately RMB 678.6 million for the six months ended June 30, 2022 [69]. - The gross margin dropped by about 6 percentage points from 32.5% for the six months ended June 30, 2021, to 26.5% for the six months ended June 30, 2022, mainly due to increased epidemic prevention costs and a decline in non-owner value-added service revenue [69]. - The company has established a cash flow planning mechanism to adjust its survival base to focus on real profits with cash flow [27]. - Cash and cash equivalents were approximately RMB 3,936.2 million as of June 30, 2022, down from RMB 4,922.3 million as of December 31, 2021 [84]. - Net cash outflow from operating activities was approximately RMB 307.2 million for the six months ended June 30, 2022, primarily due to decreased operating profit and slower cash collection from major clients [85]. Corporate Governance - The company has adopted and applied the corporate governance code as its own governance guidelines, ensuring high standards of corporate governance are maintained [104]. - The audit committee has been established according to the corporate governance code, with responsibilities including reviewing financial reporting procedures and internal control systems [106]. - The company aims to achieve a high level of corporate governance, which is crucial for its development and safeguarding shareholder interests [104]. - The company’s governance practices are designed to enhance responsiveness, efficiency, and effectiveness in business strategy formulation and execution [104]. - The company has confirmed compliance with all applicable provisions of the corporate governance code, except for the separation of the chairman and CEO roles [104]. Employee and Operational Metrics - As of June 30, 2022, the company had approximately 12,688 employees, an increase from 11,700 employees as of December 31, 2021 [101]. - The confirmed employee costs for the period amounted to RMB 938.5 million, compared to approximately RMB 697.8 million for the same period in 2021 [101]. - The company actively adjusted its community value-added service business model in response to market changes, shifting from self-operated to platform models to maintain profitability [52]. - The company focused on enhancing core business areas such as park operations and community group buying to improve competitiveness and penetration rates [52]. - The company added approximately 22.9 million square meters of contract management area during the period, with 48.4% of new managed area being non-residential projects [38]. Acquisitions and Investments - The company completed the acquisition of 100% equity in Chongqing Jinke Jincheng Hotel Management Co., Ltd. in 2021, impacting financial reporting [136]. - The company plans to invest or acquire property management companies that meet its quality standards, with an estimated allocation of HKD 1,532.0 million (23% of net proceeds) [96]. - The company acquired 100% of Sichuan Ruide Property Development Co., Ltd., 80% of Zhuzhou Gaoke Property Management Co., Ltd., and 51% of Guizhou Jinke Qingyun Property Management Co., Ltd. during the six months ended June 30, 2022 [177]. - Approximately 60% (HKD 3,996.5 million) of the net proceeds will be used for selective strategic investments and acquisitions to expand the company's business scale and geographical coverage [94]. - About 10% (HKD 666.1 million) will be allocated to upgrade the company's digital and intelligent management systems [96].

Company Information, Awards and Honors [Company Information](index=2&type=section&id=Company%20Information) This section provides the company's fundamental details, including board members, committees, headquarters, auditor, legal counsel, bankers, investor relations, website, and stock code - The company's Chairman is **Mr. Xia Shaofei**[5](index=5&type=chunk) - The company's auditor is **PricewaterhouseCoopers**[6](index=6&type=chunk) - The company's stock code on the Hong Kong Stock Exchange is **09666**[6](index=6&type=chunk) [Awards and Honors](index=4&type=section&id=Awards%20and%20Honors) This section highlights the company's numerous industry accolades in H1 2021, demonstrating its comprehensive strength, service quality, technological application, and market leadership in property services - The company was honored as one of the "**2021 China Property Service Top 100 Enterprises Comprehensive Strength TOP10**"[9](index=9&type=chunk) - The company received the title of "**2021 China Property Technology Empowerment Leading Enterprise**" for its technology application[9](index=9&type=chunk) - The company was recognized as one of the "**2021 China Property Service Listed Companies Comprehensive Strength TOP10**" for its outstanding capital market performance[10](index=10&type=chunk) Chairman's Statement [Chairman's Statement](index=6&type=section&id=Chairman's%20Statement) Chairman Mr. Xia Shaofei reviewed strong H1 2021 growth amidst a complex environment, reiterating the "Service + Technology, Service + Ecosystem" strategy and outlining progress in urban space, quality life, and smart technology services for high-quality growth and shareholder returns 2021 H1 Key Performance Indicators | Indicator | 2021 H1 | YoY Growth | | :--- | :--- | :--- | | Total Revenue | Approx. **RMB 2.586 billion** | Approx. **89%** | | Of which: Community Value-added Services Revenue | Approx. **RMB 652 million** | Approx. **419%** | | Net Profit | Approx. **RMB 542 million** | Approx. **79%** | | Net Profit attributable to owners | Approx. **RMB 530 million** | Approx. **80%** | - As of June 30, 2021, GFA under management was approximately **187 million sq.m.**, with independent third parties accounting for approximately **52%**; contracted GFA was approximately **315 million sq.m.**, with independent third parties accounting for approximately **58%**[12](index=12&type=chunk) - The company firmly implements the "**Service + Technology, Service + Ecosystem**" strategy, collaboratively building three major business segments: urban space services, quality life services, and smart technology services[13](index=13&type=chunk)[14](index=14&type=chunk) - Future plans include continuously strengthening three core capabilities—new services, new ecosystem, and new technology—and enhancing urban density, deep collaboration, and concentration[14](index=14&type=chunk) Management Discussion and Analysis [Business Overview](index=8&type=section&id=Business%20Overview) The company is a leading, top-ranked integrated smart property service provider in Southwest China, consistently among China's top ten, covering property management, non-owner value-added, community value-added, and smart technology services with a "Service + Technology, Service + Ecosystem" strategy - The company has been ranked among China's Top 10 Property Service Enterprises by CIH for **six consecutive years** and maintained the **largest market share in Southwest China** for six consecutive years[15](index=15&type=chunk) - In 2021, the company was included in the **Hang Seng Composite Index** and **FTSE Russell Flagship Index** constituents, gaining capital market recognition[15](index=15&type=chunk) [Financial Review](index=8&type=section&id=Financial%20Review) This section reviews the company's H1 2021 financial performance, showing an 88.8% revenue increase, 94.0% gross profit growth, and a slight gross margin rise to 32.5%, with detailed analysis of business segments, costs, financial position, and cash flow, reflecting strong growth and robust financial health [Revenue Analysis](index=8&type=section&id=Revenue) For the six months ended June 30, 2021, the Group's total revenue reached **RMB 2.586 billion**, a year-on-year increase of **88.8%**, primarily driven by all four business segments, with community value-added services revenue soaring by **419.0%** 2021 H1 Revenue Composition (by Business Line) | Business Line | 2021 H1 Revenue (RMB thousand) | Proportion (%) | 2020 H1 Revenue (RMB thousand) | Proportion (%) | | :--- | :--- | :--- | :--- | :--- | | Property Management Services | 1,309,579 | 50.6 | 925,381 | 67.6 | | Non-owner Value-added Services | 567,387 | 21.9 | 292,227 | 21.3 | | Community Value-added Services | 651,744 | 25.2 | 125,568 | 9.2 | | Smart Technology Services | 57,030 | 2.3 | 26,428 | 1.9 | | **Total** | **2,585,740** | **100.0** | **1,369,604** | **100.0** | - Community value-added services revenue significantly increased by **419.0%** year-on-year, primarily due to an increase in customer base and expansion of service types[18](index=18&type=chunk) [Property Management Services Analysis](index=9&type=section&id=Property%20Management%20Services) Property management services revenue grew **41.5%** to **RMB 1.310 billion**, with GFA under management increasing **44.0%** to **187 million sq.m.**, and non-residential property revenue rising **59.4%** - As of June 30, 2021, GFA under management was approximately **187 million sq.m.**, a year-on-year increase of **44.0%**; contracted GFA was approximately **315 million sq.m.**[20](index=20&type=chunk) GFA Under Management and Revenue (by Developer Type) | Developer Type | 2021 H1 GFA Under Management (thousand sq.m.) | 2021 H1 Revenue (RMB thousand) | 2020 H1 GFA Under Management (thousand sq.m.) | 2020 H1 Revenue (RMB thousand) | | :--- | :--- | :--- | :--- | :--- | | Jinke Group Projects | 78,936 | 723,343 | 60,481 | 559,021 | | Jinke Group Joint Ventures and Associates Projects | 11,025 | 63,983 | 6,396 | 33,122 | | External Expansion Projects | 96,832 | 522,253 | 62,867 | 333,238 | | **Total** | **186,793** | **1,309,579** | **129,744** | **925,381** | - Non-residential property GFA under management increased to **34 million sq.m.**, accounting for **18.2%** of total GFA under management[23](index=23&type=chunk) [Non-owner Value-added Services Analysis](index=12&type=section&id=Non-owner%20Value-added%20Services) Non-owner value-added services revenue increased **94.2%** to **RMB 567 million**, driven by increased sales assistance services and significant growth in consulting and other services, particularly property agency sales Non-owner Value-added Services Revenue Composition | Service Type | 2021 H1 (RMB thousand) | Proportion (%) | 2020 H1 (RMB thousand) | Proportion (%) | | :--- | :--- | :--- | :--- | :--- | | Sales Assistance Services | 369,802 | 65.2 | 246,890 | 84.5 | | Pre-delivery Services | 85,346 | 15.0 | 42,388 | 14.5 | | Consulting and Other Services | 112,239 | 19.8 | 2,949 | 1.0 | | **Total** | **567,387** | **100.0** | **292,227** | **100.0** | [Community Value-added Services Analysis](index=13&type=section&id=Community%20Value-added%20Services) Community value-added services experienced explosive growth, with revenue surging **419.0%** to **RMB 652 million**, significantly increasing its contribution to total revenue from **9.2%** to **25.2%**, primarily driven by travel and integrated services and park operation services Community Value-added Services Revenue Composition | Service Segment | 2021 H1 (RMB thousand) | Proportion (%) | 2020 H1 (RMB thousand) | Proportion (%) | | :--- | :--- | :--- | :--- | :--- | | Family Life Services | 132,110 | 20.3 | 62,798 | 50.0 | | Park Operation Services | 205,255 | 31.5 | 32,767 | 26.1 | | Home Renovation Services | 48,759 | 7.5 | 14,587 | 11.6 | | Travel and Integrated Services | 265,620 | 40.7 | 15,416 | 12.3 | | **Total** | **651,744** | **100.0** | **125,568** | **100.0** | - Core community value-added businesses, such as community group buying (**Jinke Jinxuan**), home renovation (**Jinke Yuejia**), and travel and integrated services (**Kangcheng Guolu**), all achieved significant growth[32](index=32&type=chunk) [Smart Technology Services Analysis](index=14&type=section&id=Smart%20Technology%20Services) Smart technology services revenue increased significantly by **115.8%** to **RMB 57 million**, maintaining a high gross margin of **49.4%**, empowering property management for cost reduction and efficiency while exporting digital solutions - In H1 2021, smart technology services revenue was approximately **RMB 57 million**, a year-on-year increase of **115.8%**[34](index=34&type=chunk) - This business segment maintained a high gross margin of **49.4%**[34](index=34&type=chunk) [Gross Profit and Gross Margin Analysis](index=17&type=section&id=Gross%20Profit%20and%20Gross%20Margin) The Group's overall gross profit increased **94.0%** to **RMB 840 million**, with the overall gross margin slightly rising from **31.6%** to **32.5%**, and smart technology services achieving the highest gross margin at **49.4%** 2021 H1 Gross Profit and Gross Margin (by Business Line) | Business Line | 2021 H1 Gross Profit (RMB thousand) | Gross Margin (%) | 2020 H1 Gross Profit (RMB thousand) | Gross Margin (%) | | :--- | :--- | :--- | :--- | :--- | | Property Management Services | 372,541 | 28.4 | 257,656 | 27.8 | | Non-owner Value-added Services | 210,036 | 37.0 | 116,512 | 39.9 | | Community Value-added Services | 229,502 | 35.2 | 45,995 | 36.6 | | Smart Technology Services | 28,162 | 49.4 | 12,871 | 48.7 | | **Total** | **840,241** | **32.5** | **433,034** | **31.6** | [Liquidity and Capital Resources Analysis](index=20&type=section&id=Liquidity%20and%20Capital%20Resources) As of June 30, 2021, the Group maintained a robust financial position with **RMB 6.265 billion** in cash and cash equivalents, a significant increase in operating cash flow to **RMB 673 million**, and a zero capital gearing ratio with no bank borrowings - As of June 30, 2021, cash and cash equivalents were approximately **RMB 6.265 billion**[52](index=52&type=chunk) - Net cash inflow from operating activities was approximately **RMB 673 million**, compared to **RMB 10.7 million** in the same period last year, primarily due to increased operating profit and enhanced collection management[53](index=53&type=chunk) - As of June 30, 2021, the Group had **no borrowings**, and the capital gearing ratio was **zero**[53](index=53&type=chunk)[54](index=54&type=chunk) [Prospects and Future Plans](index=15&type=section&id=Prospects%20and%20Future%20Plans) The company will continue to develop its space, life, and technology services, focusing on urban density and M&A for space, expanding community ecosystem businesses for life, and increasing R&D for technology to enhance barriers and smart city initiatives - **Space Services**: Solidify urban density strategy, consolidate core competitive advantages in Southwest China, actively respond to M&A opportunities, and develop the non-residential segment[35](index=35&type=chunk) - **Life Services**: Thoroughly develop community value-added businesses, focus on the mass consumption sector, vigorously develop community group buying, home renovation and beautification, property brokerage, group meal catering, and travel services[35](index=35&type=chunk) - **Technology Services**: Increase product R&D investment, upgrade the "**Tianqi Cloud City**" smart system, leverage technological advantages to empower business expansion, and actively participate in smart city construction[36](index=36&type=chunk) [Material Acquisitions and Disposals](index=22&type=section&id=Material%20Acquisitions%20and%20Disposals%20of%20Significant%20Investments%2C%20Subsidiaries%2C%20Associates%20and%20Joint%20Ventures) During the reporting period, the company completed two key acquisitions: 100% equity in Chongqing Meilishan Property to boost its high-end residential market share in Chongqing, and 100% equity in Baotou Smart Property to enter the Inner Mongolia market and expand its national footprint - In May 2021, acquired **100% equity** in Chongqing Meilishan Property for a total consideration of approximately **RMB 102.5 million** (including assumed liabilities), aligning with the company's urban density strategy[57](index=57&type=chunk) - In February 2021, acquired **100% equity** in Baotou Smart Property for a transfer consideration of **RMB 57 million**, contributing to the expansion into the Inner Mongolia market[58](index=58&type=chunk) [Use of Net Proceeds from Listing](index=23&type=section&id=Use%20of%20Net%20Proceeds%20from%20Listing) The company disclosed the utilization of approximately **HKD 6.615 billion** net proceeds from its November 2020 listing, with **HKD 1.118 billion** used by June 30, 2021, primarily for strategic investments, value-added services development, and general working capital, consistent with prospectus plans Summary of Use of Net Proceeds from Listing (as of June 30, 2021) | Planned Use | Planned Amount (HKD million) | Utilized Amount (HKD million) | Unutilized Amount (HKD million) | | :--- | :--- | :--- | :--- | | Strategic investments and acquisitions | 3,968.94 | 434.27 | 3,534.67 | | Upgrading digital and smart management systems | 661.49 | 0.49 | 661.00 | | Development of value-added services | 1,322.98 | 178.12 | 1,144.86 | | General business operations and working capital | 661.49 | 505.46 | 156.03 | | **Total** | **6,614.9** | **1,118.34** | **5,496.56** | [Employees and Remuneration Policy](index=27&type=section&id=Employees%20and%20Remuneration%20Policy) As of June 30, 2021, the Group employed approximately **9,029** individuals, implementing a remuneration package including salaries, bonuses, and allowances with regular performance appraisals, resulting in total staff costs of **RMB 691.5 million** for the period - As of June 30, 2021, the Group had approximately **9,029** employees[67](index=67&type=chunk) - In H1 2021, total staff costs amounted to **RMB 691.5 million**, compared to **RMB 499.3 million** in the same period last year[67](index=67&type=chunk) Corporate Governance [Corporate Governance](index=28&type=section&id=Corporate%20Governance) The company adopted the Corporate Governance Code, complying with all provisions except for the non-separation of Chairman and CEO roles, and the Audit Committee reviewed the interim report and unaudited financial results - The roles of Chairman and Chief Executive Officer are both held by Executive Director **Mr. Xia Shaofei**, which deviates from Rule A.2.1 of the Corporate Governance Code[69](index=69&type=chunk) - The Audit Committee, together with management and external auditor **PricewaterhouseCoopers**, discussed and reviewed the unaudited interim results for the period[72](index=72&type=chunk) Other Information [Other Information](index=30&type=section&id=Other%20Information) This section details shareholdings of directors, supervisors, chief executives, and major shareholders as of June 30, 2021, noting the Board's decision not to declare an interim dividend for 2021, following the payment of the 2020 final dividend on June 25 - As of June 30, 2021, controlling shareholder **Jinke Property** held approximately **52.33%** of the company's total share capital[77](index=77&type=chunk) - The company paid a final dividend of **RMB 0.5 per share** (before tax) for the year ended December 31, 2020, on June 25, 2021[86](index=86&type=chunk) - The Board resolved **not to declare any interim dividend** for the six months ended June 30, 2021[86](index=86&type=chunk) Interim Financial Information [Review Report on Interim Financial Information](index=37&type=section&id=Review%20Report%20on%20Interim%20Financial%20Information) The independent auditor, PricewaterhouseCoopers, reviewed the interim financial information according to HKSRS 2410, concluding no material issues regarding its preparation under HKAS 34 "Interim Financial Reporting" - Auditor **PricewaterhouseCoopers** issued a review conclusion on the interim financial information, finding **no material issues**[89](index=89&type=chunk) [Financial Statements](index=38&type=section&id=Financial%20Statements) This section presents the condensed consolidated interim statements for the six months ended June 30, 2021, including comprehensive income, financial position, equity changes, and cash flows, showing a **RMB 542 million** profit, **RMB 9.586 billion** total assets, and strong operating cash flow 2021 H1 Financial Summary | Indicator | Amount (RMB thousand) | | :--- | :--- | | **Comprehensive Income Statement:** | | | Revenue | 2,585,740 | | Gross Profit | 840,241 | | Operating Profit | 642,829 | | Profit for the period | 541,761 | | Profit attributable to owners of the Company | 529,813 | | **Statement of Financial Position (Period End):** | | | Total Assets | 9,585,911 | | Total Liabilities | 2,110,805 | | Total Equity | 7,475,106 | - Basic and diluted earnings per share were **RMB 0.81**, higher than **RMB 0.64** in the same period last year[90](index=90&type=chunk) [Notes to the Condensed Consolidated Interim Financial Information](index=43&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Interim%20Financial%20Information) This section provides detailed explanations and supplementary information for the interim financial statements, covering preparation basis, accounting policies, segment information, revenue and cost breakdowns, asset and liability composition, business combinations, and related party transactions, essential for understanding the financial reports - During the reporting period, the Group completed business combinations of **seven companies**, with a total purchase consideration of **RMB 139 million**, resulting in goodwill of **RMB 133 million**[146](index=146&type=chunk) - Newly acquired businesses contributed **RMB 35.865 million** in revenue and **RMB 4.337 million** in net profit to the Group from the acquisition date to the end of the period[148](index=148&type=chunk) - The notes detail transactions with the ultimate controlling company, **Jinke Group**, and its associates, including service provision, goods procurement, and fund transfers[160](index=160&type=chunk)[162](index=162&type=chunk) Glossary and Definitions [Glossary and Definitions](index=82&type=section&id=Glossary%20and%20Definitions) This section defines specific terms and abbreviations used throughout the report, such as "Jinke Property," "Jinke Group," "H Shares," and "the Period," ensuring accurate comprehension of the content