Financial Performance - The total revenue from property management and services reached RMB 359.1 million, remaining stable compared to the previous year[8]. - For the year ended 31 December 2024, the total revenue was approximately RMB359.1 million, a slight increase from RMB358.9 million in 2023[37]. - Gross profit for the year was RMB107.2 million, up from RMB97.2 million in 2023, resulting in a gross profit margin of 29.8%, compared to 27.1% in the previous year[25]. - Net profit for the year increased to RMB45.1 million, compared to RMB40.2 million in 2023, leading to a net profit margin of 12.6%, up from 11.2%[25]. - Revenue from property management services was RMB297.3 million, representing 82.8% of total revenue, an increase from RMB274.1 million (76.4%) in 2023[39]. - Revenue from property engineering services decreased to RMB20.9 million (5.9%) from RMB40.5 million (11.3%) in 2023[39]. - Revenue from property management and value-added services increased by approximately RMB24.6 million or 8.8% to approximately RMB302.8 million for the year ended 31 December 2024[43]. - Other revenue decreased by approximately RMB4.9 million or 12.2% to approximately RMB35.3 million, primarily due to fewer intermediary services provided[47]. - Cost of services decreased by approximately RMB9.8 million or 3.7% to approximately RMB251.9 million, attributed to cost reduction control measures[48]. - Profit for the year increased by approximately RMB4.9 million or 12.2% to approximately RMB45.1 million[59]. Operational Developments - The company aims to transform into a modern, digital, platform-based enterprise, focusing on property services and powered by life and commercial services[7]. - The company has successfully expanded its service scope, particularly in the non-residential sector, covering various business segments including healthcare and education[10]. - The company has made significant progress in the hotel sector, with multiple key construction milestones on schedule, expected to drive capital effectively upon completion[14]. - The company is expanding its presence in industrial parks across various sectors, including technology and heavy industry[10]. - The company entered into 57 new property engineering contracts with a total contract amount of approximately RMB37.4 million during the year[32]. - As of 31 December 2024, the total contract sum for contracted engineering services with remaining performance obligations amounted to RMB49.7 million[32]. - The portfolio of properties under management expanded from approximately 8.5 million sq.m. as of 31 December 2023 to approximately 11.0 million sq.m. as of 31 December 2024[30]. Strategic Focus - The company emphasizes high-quality development as a core competitive advantage, focusing on delivering exceptional services to meet customer demands[9]. - The company is focused on precise marketing by analyzing customer consumption behaviors and tailoring services accordingly[13]. - The company aims to maintain a vision of "Making Cities Better" while steering towards high-quality development through innovation and responsibility[16]. - The Group aims to enhance service quality and deepen expertise in non-residential property services, focusing on high-growth projects and selective mergers and acquisitions[112]. - The Group plans to leverage artificial intelligence and digital transformation to improve operational efficiency and service quality[113]. - The company is committed to building a smart ecosystem and enhancing brand awareness while fulfilling social responsibilities[116]. - The company aims to adapt to rapid market changes and achieve superior performance to reward shareholders and investors[117]. - The company is focused on technological innovation as a driving force for its mission[117]. Leadership and Governance - Mr. Wang has over 31 years of experience in the real estate and property management industry, serving as the managing director of Xingye IOT Management since May 2017[131]. - Mr. Liu has more than 20 years of experience in the property management and real estate industry, currently serving as a non-executive director since August 2019[133]. - Mr. Xu has over 20 years of experience in the real estate industry, appointed as an independent non-executive director in September 2019[139]. - The company has a strong leadership team with extensive experience in real estate development and management, contributing to strategic decision-making[133][139][144]. - The leadership structure includes a mix of executive and independent directors, ensuring a balanced approach to governance and strategy[133][139][144]. - The management team has a diverse educational background, including advanced degrees from prestigious institutions such as Tsinghua University[142][143]. Financial Position and Assets - Total assets increased to RMB716.1 million in 2024 from RMB699.1 million in 2023, while total liabilities decreased to RMB216.2 million from RMB244.0 million[27]. - The net carrying value of property, plant, and equipment increased by approximately RMB16.9 million or 9.0% to approximately RMB205.4 million as at 31 December 2024[67]. - Properties under development increased by approximately RMB10.3 million or 7.9% to approximately RMB141.0 million as at 31 December 2024[68]. - Total trade receivables decreased to approximately RMB59.7 million, down from approximately RMB102.2 million as at 31 December 2023, due to increased repayments[69]. - Cash and cash equivalents increased by approximately RMB13.2 million or 6.3% to RMB223.9 million as of December 31, 2024, compared to RMB210.7 million as of December 31, 2023[89]. - The current ratio improved to 2.4 times as of December 31, 2024, compared to 2.1 times as of December 31, 2023[94]. Risk Management and Compliance - The Group continues to implement internal controls and strategies to manage potential risks and uncertainties affecting its business[188]. - The Group's growth may be impacted by general economic conditions affecting the real estate market and changes in laws and regulations in the PRC[185]. - The Group recognizes employees, customers, and suppliers as key stakeholders and is dedicated to maintaining good relationships with them[193]. - The Group's financial risks and management objectives are detailed in notes 34 and 36 to the consolidated financial statements[187].

Financial Performance - For the fiscal year ending December 31, 2024, revenue was approximately RMB 359.1 million, showing a slight increase from RMB 358.9 million for the fiscal year ending December 31, 2023[4] - Gross profit for the fiscal year was approximately RMB 107.2 million, representing an increase of about 10.3% from RMB 97.2 million in the previous year[4] - Profit attributable to equity holders was approximately RMB 45.1 million, up about 12.2% from RMB 40.2 million for the fiscal year ending December 31, 2023[4] - Basic earnings per share for the fiscal year were approximately RMB 11.3 cents, compared to RMB 10.0 cents for the previous year[4] - The total comprehensive income for the year was RMB 44.9 million, compared to RMB 41.5 million in the previous year[6] - The group reported a profit before tax of RMB 60,983,000 for the year, compared to RMB 56,875,000 in the previous year, an increase of 5.5%[16] - Net profit for the year increased by approximately RMB 4.9 million or 12.2% to RMB 45.1 million[68] Assets and Liabilities - Non-current assets increased to RMB 209.4 million from RMB 191.9 million in the previous year[7] - Current assets totaled RMB 506.7 million, slightly down from RMB 507.1 million in the previous year[7] - The total assets of the group as of December 31, 2024, amounted to RMB 716,135,000, compared to RMB 5,245,000 in non-current liabilities, indicating a strong asset base[17] - The total liabilities of the group were RMB 216,164,000, with non-current liabilities including lease liabilities of RMB 1,595,000, down from RMB 1,938,000 in 2023[8] - The net asset value increased to RMB 499,971,000 in 2024 from RMB 455,030,000 in 2023, marking an increase of 9.8%[8] Revenue Segmentation - The segment revenue from property management and value-added services was RMB 302,826,000, up from RMB 278,245,000 in the previous year, reflecting a growth of 8.9%[16] - Revenue for property management and value-added services reached RMB 302,826,000, while property engineering services generated RMB 20,947,000, leading to a total revenue of RMB 359,074,000 for the year[22] - Revenue from independent third parties was RMB 306.1 million, representing 85.3% of total revenue, an increase from RMB 289.3 million (80.6%) in the previous year[57] - The property management and value-added services segment generated revenue of RMB 302.8 million, accounting for 84.3% of total revenue, an increase from RMB 278.2 million (77.5%) in the previous year[56] Expenses and Costs - The company reported a decrease in administrative expenses to RMB 39.1 million from RMB 42.2 million in the previous year[5] - Employee costs, including director remuneration, rose to RMB 85,111,000 from RMB 63,251,000, indicating a significant increase of about 34.6%[24] - The company incurred financial and contract asset impairment losses of RMB 5,772,000, compared to RMB 1,342,000 in the previous year, representing a substantial increase[24] Corporate Governance and Compliance - The group has maintained compliance with the International Financial Reporting Standards, ensuring accurate financial reporting and transparency[11] - The company emphasizes the importance of good corporate governance to enhance management and protect shareholder interests[98] - The audit committee consists of three independent non-executive directors, responsible for reviewing financial reports and internal controls[101] - The company has adopted the standard code for securities trading by directors, confirming compliance for the current year[100] Future Plans and Developments - The company has plans for market expansion and new product development, although specific details were not disclosed in the earnings call[3] - The group anticipates the completion of property development projects by the end of 2025, with no impairment expected on the carrying value of development properties[34] - The company aims to enhance its position in property management and engineering services by improving service quality and focusing on non-residential property services[92] - The company plans to continue its digital transformation by leveraging artificial intelligence to improve operational efficiency and service quality[93] Shareholder Information - The company did not recommend the payment of a final dividend for the years ending December 31, 2024, and December 31, 2023[29] - The board does not recommend the payment of a final dividend for the current year[104] - The annual general meeting is scheduled for June 6, 2025, with a suspension of share transfer registration from June 2 to June 6, 2025[105][106] Miscellaneous - The company has not engaged in any buybacks, sales, or redemptions of its listed securities during the year[97] - There were no significant acquisitions or disposals of subsidiaries, associates, or joint ventures during the year[89] - The company has issued 100,000,000 new shares at a price of HKD 1.99 per share during its global offering, resulting in net proceeds of approximately HKD 167.8 million[95]

[Corporate Information](index=3&type=section&id=Corporate%20Information) The company's board comprises executive, non-executive, and independent non-executive directors, supported by audit, remuneration, and nomination committees to ensure sound corporate governance [Board of Directors and Committees](index=3&type=section&id=Board%20of%20Directors%20and%20Committees) The board includes one executive, three non-executive, and three independent non-executive directors, with specific chairs for audit, remuneration, and nomination committees - Board members include 1 executive director (Qiu Ming), 3 non-executive directors (Zhang Huiqi, Wang Jinhu, Liu Zhenqiang), and 3 independent non-executive directors (Xu Chun, Feng Zhidong, Zhou Sheng)[3](index=3&type=chunk) - The Audit Committee is chaired by Feng Zhidong, the Remuneration Committee by Zhou Sheng, and the Nomination Committee by Qiu Ming[3](index=3&type=chunk) [Key Corporate Details](index=3&type=section&id=Key%20Corporate%20Details) The company has appointed authorized representatives and a company secretary, with audit services provided by Zhong Shen Zhong Huan (Hong Kong) CPA Limited, and China Construction Bank as its principal banker - Authorized representatives and company secretaries are Zhang Shize and Qiu Ming[3](index=3&type=chunk) - The auditor is Zhong Shen Zhong Huan (Hong Kong) CPA Limited[3](index=3&type=chunk) - The principal banker is China Construction Bank (Hanghai East Road Branch)[4](index=4&type=chunk) - The company's stock code is **9916**[5](index=5&type=chunk) [Management Discussion and Analysis](index=5&type=section&id=Management%20Discussion%20and%20Analysis) The company, a prominent property management service provider in Henan, significantly expanded its managed area and ventured into property development by acquiring Zheng Zhi Yue for the Zhengshang Center project [Business Overview](index=5&type=section&id=Business%20Overview) Established in 1999, the company is a leading property management service provider in Henan, expanding its managed GFA to 25.5 million sqm and entering property development with the Zhengshang Center project - Established in 1999, the company is a well-known property management service provider in Henan Province, focusing on property management and value-added services including security, cleaning, landscaping, parking management, maintenance, and customer service[6](index=6&type=chunk) - The gross floor area (GFA) of properties under management significantly expanded from approximately **8.5 million sqm** as of December 31, 2023, to approximately **25.5 million sqm** as of June 30, 2024[6](index=6&type=chunk) - As of June 30, 2024, the total GFA of contracted property portfolio was approximately **37.0 million sqm**[7](index=7&type=chunk) - During the period, the company signed **28 new property management service contracts** with a total contract value of approximately **RMB 18.7 million**[7](index=7&type=chunk) - In 2023, the company acquired Henan Zheng Zhi Yue Real Estate Co., Ltd. to develop property development business, currently holding the Zhengshang Center project in Zhengzhou, expected to be completed by the end of 2025[8](index=8&type=chunk)[9](index=9&type=chunk) [Financial Review](index=7&type=section&id=Financial%20Review) Total revenue increased by 4.7% to RMB 167.2 million in H1, driven by property management services, while gross profit margin slightly declined, but profit attributable to equity holders grew by 15.9% Revenue Overview (RMB thousand) | Indicator | H1 2024 | H1 2023 | YoY Change | Change Rate | | :--- | :--- | :--- | :--- | :--- | | **Total Revenue** | **167,201** | **159,733** | **+7,468** | **+4.7%** | | Property Management and Value-Added Services | 148,201 | 136,197 | +12,004 | +8.8% | | Property Engineering Services | 2,668 | 6,987 | -4,319 | -61.8% | | Others | 16,332 | 16,549 | -217 | -1.3% | - Revenue growth in property management and value-added services was primarily due to the continuous expansion of the property portfolio under management[14](index=14&type=chunk)[17](index=17&type=chunk) - The decrease in property engineering services revenue was mainly affected by the overall downturn in China's real estate market, leading to a reduction in new project numbers and scale[15](index=15&type=chunk)[18](index=18&type=chunk) Profit Metrics (RMB thousand) | Indicator | H1 2024 | H1 2023 | YoY Change | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Cost of Services | 117,213 | 109,224 | +7,989 | +7.3% | | Gross Profit | 49,988 | 50,509 | -521 | -1.0% | | Gross Profit Margin | 29.9% | 31.6% | -1.7% | - | | Profit Attributable to Equity Holders of the Company | 24,084 | 20,766 | +3,318 | +15.9% | - The slight decrease in gross profit margin was mainly due to lower contract prices for projects undertaken during the period compared to the same period last year[20](index=20&type=chunk) - Administrative expenses decreased by **10.3%** to **RMB 15.7 million**, primarily due to reduced professional fees[21](index=21&type=chunk) - The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2024[21](index=21&type=chunk) [Financial Position](index=11&type=section&id=Financial%20Position) As of June 30, 2024, total trade receivables significantly decreased due to active collection efforts, while the current ratio remained healthy with no interest-bearing borrowings, and capital structure is equity-dominated Key Balance Sheet Items (RMB thousand) | Indicator | Jun 30, 2024 | Dec 31, 2023 | Change | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Net Property, Plant and Equipment | 188,113 | 188,536 | -423 | -0.2% | | Properties Under Development | 130,803 | 130,738 | +65 | +0.05% | | Gross Trade Receivables | 69,800 | 102,200 | -32,400 | -31.7% | | Net Trade Receivables | 67,674 | 99,675 | -32,001 | -32.1% | | Trade Payables | 34,952 | 54,959 | -20,007 | -36.4% | | Other Payables and Accruals | 72,949 | 96,079 | -23,130 | -24.1% | | Contract Liabilities | 78,840 | 85,423 | -6,583 | -7.7% | | Cash and Cash Equivalents | 217,372 | 210,684 | +6,688 | +3.2% | | Current Assets | 481,903 | 507,118 | -25,215 | -5.0% | | Current Ratio | **2.6 times** | **2.1 times** | +0.5 times | - | - The decrease in gross trade receivables and net trade receivables (after deducting loss allowance) was mainly due to the company's proactive implementation of trade receivables recovery and management measures, leading to increased repayments[22](index=22&type=chunk) - Gross trade receivables from related parties decreased by **51.8%** to **RMB 35.7 million**, reflecting the company's efforts in recovering related party balances[23](index=23&type=chunk) - Trade payables decreased by **36.4%**, primarily due to timely settlement during the period[24](index=24&type=chunk)[27](index=27&type=chunk) - The company has no outstanding borrowings or unutilized bank facilities, with a zero debt-to-asset ratio, maintaining a sound financial position[30](index=30&type=chunk) [Contingent Liabilities](index=15&type=section&id=Contingent%20Liabilities) As of June 30, 2024, the Group had no significant contingent liabilities - As of June 30, 2024, the Group had no significant contingent liabilities[31](index=31&type=chunk)[35](index=35&type=chunk) [Capital Commitments](index=15&type=section&id=Capital%20Commitments) As of June 30, 2024, the Group had capital expenditure commitments of RMB 280.2 million, primarily related to properties under development - As of June 30, 2024, the Group had capital expenditure commitments of **RMB 280.2 million** related to properties under development[32](index=32&type=chunk)[35](index=35&type=chunk) [Foreign Exchange Risks](index=15&type=section&id=Foreign%20Exchange%20Risks) Operating primarily in China with most transactions settled in RMB, the Group faces insignificant foreign exchange risk and currently does not hedge, except for minor HKD-denominated bank balances - The Group primarily operates in China, with most transactions settled in RMB, thus not facing significant foreign exchange risk[33](index=33&type=chunk)[36](index=36&type=chunk) - Except for certain HKD-denominated bank balances held by the Company, the Group has not entered into contracts to hedge its foreign exchange risk[33](index=33&type=chunk)[36](index=36&type=chunk) [Employment and Remuneration Policy](index=15&type=section&id=Employment%20and%20Remuneration%20Policy) As of June 30, 2024, the company had 726 employees, with remuneration based on qualifications, position, seniority, and performance, participating in various social security schemes, and total employee-related costs were RMB 40.2 million - As of June 30, 2024, the Group had **726 employees**[37](index=37&type=chunk) - Employee remuneration is determined based on qualifications, position, seniority, and performance, with participation in pension, medical, maternity, work injury, and unemployment benefit schemes[37](index=37&type=chunk) - Total employee-related costs (including directors' emoluments) for the period were approximately **RMB 40.2 million**[37](index=37&type=chunk) [Material Acquisitions and Disposals of Subsidiaries, Associates and Joint Ventures](index=15&type=section&id=Material%20Acquisitions%20and%20Disposals%20of%20Subsidiaries%2C%20Associates%20and%20Joint%20Ventures) During the period, the Group had no material acquisitions or disposals of subsidiaries, associates, or joint ventures - During the period, the Group had no material acquisitions or disposals of subsidiaries, associates, or joint ventures[37](index=37&type=chunk) [Significant Investments](index=15&type=section&id=Significant%20Investments) As of June 30, 2024, the Group had no significant investments accounting for more than 5% of its total assets - As of June 30, 2024, the Group had no significant investments accounting for more than **5%** of its total assets[37](index=37&type=chunk) [Future Plans for Material Investments or Capital Assets](index=16&type=section&id=Future%20Plans%20for%20Material%20Investments%20or%20Capital%20Assets) As of June 30, 2024, the company had no specific plans for material investments or capital assets, and any future plans will be announced in due course - As of June 30, 2024, there were no specific plans for material investments or capital assets[38](index=38&type=chunk)[40](index=40&type=chunk) - Should the Group engage in any material investment or capital asset plans, the Company will make timely announcements and comply with relevant Listing Rules[38](index=38&type=chunk)[40](index=40&type=chunk) [Future Outlook](index=16&type=section&id=Future%20Outlook) The company aims to enhance its position in property management through diversification, M&A, service empowerment, digitalization, and community value-added services, striving to become an "all-scenario service expert" and deliver high-quality development to shareholders - The company will continue to enhance its position in the property management service sector, with strategies including undertaking more property management projects, deepening non-residential business, selectively seeking M&A opportunities, enhancing professional coverage, expanding service empowerment, continuously upgrading smart and digital capabilities, and focusing on developing community value-added services[39](index=39&type=chunk) - The company is committed to high-quality development, achieving customer-centric service transformation, and striving for stability and predictability in service quality[39](index=39&type=chunk) - The company will launch three major service systems: "Standard+, Community Operations+, Smart Technology+", to create a high-quality, standardized, and warm property service experience, building a leading brand in high-quality property management[39](index=39&type=chunk) - The company aims to become an "all-scenario service expert," building a "grand property" management system that integrates urban public spaces and resources, rewarding shareholders with excellent performance[41](index=41&type=chunk) [Other Information](index=18&type=section&id=Other%20Information) This section details directors' and substantial shareholders' interests, capital raising activities, corporate governance, and other relevant disclosures [Directors' and Chief Executive's Interests and Short Positions in Securities](index=18&type=section&id=Directors'%20and%20Chief%20Executive's%20Interests%20and%20Short%20Positions%20in%20Securities) As of June 30, 2024, non-executive director Ms. Zhang Huiqi indirectly held 56.59% of the company's shares through a family trust and had 100% equity in related companies Directors' Long Positions in Shares | Director Name | Capacity | Number of Shares Held | Approximate Percentage of Issued Share Capital (%) | | :--- | :--- | :--- | :--- | | Ms. Zhang Huiqi | Interest in controlled corporation (Note) | 226,350,000 | 56.59 | - Ms. Zhang Huiqi indirectly controls **226,350,000 shares** held by Foison Amber Development Limited through Blossom Trust[44](index=44&type=chunk)[45](index=45&type=chunk) - Ms. Zhang Huiqi holds **100%** equity interest in related corporations including Glory Reach, Fast Achieve, and Foison Amber Development[46](index=46&type=chunk)[47](index=47&type=chunk) [Substantial Shareholders](index=20&type=section&id=Substantial%20Shareholders) As of June 30, 2024, Vistra Trust (BVI) Limited and its controlled entities (Glory Reach, Fast Achieve, Foison Amber Development) were the largest shareholders, holding 56.59% of shares, while Eco-Victory Limited held 18.41% Substantial Shareholders' Long Positions in Company Shares | Shareholder Name | Nature of Interest | Number of Shares Held | Approximate Percentage of the Company's Issued Share Capital (%) | | :--- | :--- | :--- | :--- | | Vistra Trust (BVI) Limited | Trustee of a trust (Note) | 226,350,000 | 56.59 | | Glory Reach | Interest in controlled corporation (Note) | 226,350,000 | 56.59 | | Fast Achieve | Interest in controlled corporation (Note) | 226,350,000 | 56.59 | | Foison Amber Development | Beneficial owner (Note) | 226,350,000 | 56.59 | | Eco-Victory Limited | Beneficial owner | 73,650,000 | 18.41 | - Vistra Trust (BVI) Limited, as trustee of Blossom Trust, indirectly holds **56.59%** of the company's shares through its wholly-owned subsidiaries Glory Reach, Fast Achieve, and Foison Amber Development[52](index=52&type=chunk) [Capital Raising Activities and the Use of Proceeds from Global Offering](index=22&type=section&id=Capital%20Raising%20Activities%20and%20the%20Use%20of%20Proceeds%20from%20Global%20Offering) The company raised approximately RMB 149.6 million net from its 2020 IPO, with RMB 75.0 million utilized by June 30, 2024, mainly for business expansion and property management service enhancement, and remaining funds expected to be used by end of 2025 - The company was listed on March 9, 2020, with net proceeds from the global offering of approximately **RMB 149.6 million**[55](index=55&type=chunk)[56](index=56&type=chunk) Use of Proceeds from Global Offering (RMB million) | Intended Use | Net Proceeds Planned for Intended Use | Utilized as of Dec 31, 2023 | Utilized During the Period | Unutilized as of Jun 30, 2024 | Expected Timeframe for Unutilized Net Proceeds | | :--- | :--- | :--- | :--- | :--- | :--- | | Selective acquisitions to expand business | 60.0 | 60.0 | – | – | On or before Dec 31, 2025 | | Enhancement of property engineering services | 30.2 | 21.2 | 5.3 | 3.7 | On or before Dec 31, 2025 | | Enhancement of property management services | 44.5 | 26.7 | 6.9 | 10.9 | On or before Dec 31, 2025 | | General working capital | 14.9 | 14.9 | – | – | Not applicable | | **Total** | **149.6** | **122.8** | **12.2** | **14.6** | - | - As of June 30, 2024, the Group had utilized approximately **RMB 75.0 million** of the raised funds (RMB 62.8 million as of December 31, 2023, with RMB 12.2 million utilized during the period)[56](index=56&type=chunk) [Purchase, Sale or Redemption of Our Company's Listed Securities](index=23&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20Our%20Company's%20Listed%20Securities) Neither the company nor its subsidiaries purchased, sold, or redeemed any of the company's listed securities during the period - Neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities during the period[57](index=57&type=chunk) [Corporate Governance Code](index=23&type=section&id=Corporate%20Governance%20Code) The company adopted and complied with the Corporate Governance Code during the period, with the exception of the combined roles of Chairman and CEO, which the Board deems appropriate for power balance - The company has adopted corporate governance practices based on the principles and code provisions of the Corporate Governance Code set out in Appendix C1 of the Listing Rules[57](index=57&type=chunk) - The company has complied with the relevant code provisions of the Corporate Governance Code during the period, except for the deviation from code provision C.2.1 (roles of Chairman and Chief Executive should be separate)[57](index=57&type=chunk) - The Board believes that Mr. Qiu Ming serving as both Chairman and Chief Executive is in the best interest of the company, and the current Board composition and structure are sufficient to ensure a balance of power and authority[57](index=57&type=chunk) [Model Code for Securities Transactions by Directors and Relevant Employees](index=24&type=section&id=Model%20Code%20for%20Securities%20Transactions%20by%20Directors%20and%20Relevant%20Employees) The company adopted the Model Code from Appendix C3 of the Listing Rules and confirmed all directors and relevant employees complied with it during the period - The company has adopted the Model Code set out in Appendix C3 of the Listing Rules, and all directors have confirmed compliance with the required standards[58](index=58&type=chunk)[59](index=59&type=chunk) - The company has adopted a code of conduct for securities transactions by relevant employees who may possess inside information, and all relevant employees have fully complied[58](index=58&type=chunk)[59](index=59&type=chunk) [Audit Committee](index=24&type=section&id=Audit%20Committee) The Audit Committee, composed of three independent non-executive directors, reviews financial reporting, risk management, and internal control systems, and has reviewed the unaudited interim condensed consolidated financial results for the period - The Audit Committee comprises three independent non-executive directors: Feng Zhidong (Chairman), Zhou Sheng, and Xu Chun[58](index=58&type=chunk) - The Audit Committee is primarily responsible for assisting the Board in reviewing and monitoring financial reporting processes, risk management, and internal control systems, and overseeing the audit process[58](index=58&type=chunk) - The Audit Committee has reviewed the accounting principles and practices adopted by the Group with management and has reviewed the unaudited interim condensed consolidated financial results for the period[58](index=58&type=chunk) [Changes Since 31 December 2023](index=25&type=section&id=Changes%20Since%2031%20December%202023) Except as disclosed in this interim report, there have been no other significant changes to the Group's financial position or information disclosed in the management discussion and analysis section of the 2023 annual report - Except as disclosed in this interim report, there have been no other significant changes to the Group's financial position or information disclosed in the management discussion and analysis section of the company's 2023 annual report[60](index=60&type=chunk)[64](index=64&type=chunk) [Changes in Information of Directors](index=25&type=section&id=Changes%20in%20Information%20of%20Directors) No other director information is required to be disclosed under Rule 13.51B(1) of the Listing Rules - No other director information is required to be disclosed under Rule 13.51B(1) of the Listing Rules[61](index=61&type=chunk)[65](index=65&type=chunk) [Events After the Reporting Period](index=25&type=section&id=Events%20After%20the%20Reporting%20Period) There have been no significant events after the reporting period and up to the date of this interim report - There have been no significant events after the reporting period and up to the date of this interim report[62](index=62&type=chunk)[66](index=66&type=chunk) [Acknowledgement](index=25&type=section&id=Acknowledgement) The company extends its sincere gratitude to management, all employees, and shareholders - The company expresses its sincere gratitude to management and all employees for their tireless dedication and service to the Group, and to shareholders for their continuous strong support[63](index=63&type=chunk)[67](index=67&type=chunk) [Interim Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=26&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) For the six months ended June 30, 2024, the company's revenue increased by 4.7% to RMB 167.2 million, with profit for the period growing by 15.6% to RMB 24.0 million [Profit or Loss](index=26&type=section&id=Profit%20or%20Loss) For H1 2024, revenue grew 4.7% to RMB 167.2 million, while profit for the period increased 15.6% to RMB 24.0 million Profit or Loss Key Data (RMB thousand) | Indicator | H1 2024 | H1 2023 | YoY Change | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Revenue | 167,201 | 159,733 | +7,468 | +4.7% | | Cost of Services | (117,213) | (109,224) | (7,989) | +7.3% | | Gross Profit | 49,988 | 50,509 | (521) | -1.0% | | Profit Before Tax | 33,512 | 31,153 | +2,359 | +7.6% | | Income Tax Expense | (9,495) | (10,380) | +885 | -8.5% | | Profit for the Period | 24,017 | 20,773 | +3,244 | +15.6% | [Other Comprehensive Income](index=27&type=section&id=Other%20Comprehensive%20Income) Other comprehensive income for the period was RMB 750 thousand, primarily from exchange differences on translating overseas operations, resulting in total comprehensive income of RMB 24.8 million Other Comprehensive Income (RMB thousand) | Indicator | H1 2024 | H1 2023 | YoY Change | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Exchange differences on translating overseas operations | 750 | 2,870 | (2,120) | -73.9% | | Total other comprehensive profit for the period | 750 | 2,870 | (2,120) | -73.9% | | Total comprehensive income for the period | 24,767 | 23,643 | +1,124 | +4.8% | [Attributable to Equity Holders and Non-controlling Interests](index=27&type=section&id=Attributable%20to%20Equity%20Holders%20and%20Non-controlling%20Interests) Profit attributable to equity holders of the company for the period was RMB 24.1 million, while loss attributable to non-controlling interests was RMB 67 thousand Profit and Comprehensive Income Attributable (RMB thousand) | Indicator | H1 2024 | H1 2023 | | :--- | :--- | :--- | | Profit for the period attributable to equity holders of the Company | 24,084 | 20,766 | | Profit for the period attributable to non-controlling interests | (67) | 7 | | Total comprehensive income for the period attributable to equity holders of the Company | 24,834 | 23,636 | | Total comprehensive income for the period attributable to non-controlling interests | (67) | 7 | [Earnings Per Share](index=27&type=section&id=Earnings%20Per%20Share) Basic and diluted earnings per share for the period were RMB 6.02 cents, an increase from RMB 5.19 cents in the prior year Earnings Per Share (RMB cents) | Indicator | H1 2024 | H1 2023 | | :--- | :--- | :--- | | Basic and diluted earnings per share | 6.02 | 5.19 | [Interim Condensed Consolidated Statement of Financial Position](index=28&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Financial%20Position) This statement presents the Group's financial position, including non-current assets, current assets, current liabilities, and equity, as of June 30, 2024 [Non-Current Assets](index=28&type=section&id=Non-Current%20Assets) As of June 30, 2024, total non-current assets were RMB 191.1 million, a slight decrease from year-end 2023, primarily comprising property, plant, and equipment Non-Current Assets (RMB thousand) | Indicator | Jun 30, 2024 | Dec 31, 2023 | Change | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Property, Plant and Equipment | 188,113 | 188,536 | (423) | -0.2% | | Right-of-use assets | 1,967 | 2,139 | (172) | -8.0% | | Deferred tax assets | 1,034 | 1,261 | (227) | -18.0% | | **Total Non-Current Assets** | **191,114** | **191,936** | **(822)** | **-0.4%** | [Current Assets](index=28&type=section&id=Current%20Assets) As of June 30, 2024, total current assets were RMB 481.9 million, a 5.0% decrease from year-end 2023, with a significant reduction in trade receivables and a slight increase in cash and cash equivalents Current Assets (RMB thousand) | Indicator | Jun 30, 2024 | Dec 31, 2023 | Change | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Properties Under Development | 130,803 | 130,738 | +65 | +0.05% | | Trade Receivables | 67,674 | 99,675 | (32,001) | -32.1% | | Contract Assets | 38,847 | 39,202 | (355) | -0.9% | | Prepayments, Other Receivables and Other Assets | 24,985 | 25,232 | (247) | -1.0% | | Cash and Cash Equivalents | 217,372 | 210,684 | +6,688 | +3.2% | | **Total Current Assets** | **481,903** | **507,118** | **(25,215)** | **-5.0%** | [Current Liabilities](index=28&type=section&id=Current%20Liabilities) As of June 30, 2024, total current liabilities were RMB 188.0 million, a significant 21.2% decrease from year-end 2023, mainly due to reductions in trade payables and other payables Current Liabilities (RMB thousand) | Indicator | Jun 30, 2024 | Dec 31, 2023 | Change | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Trade Payables | 34,952 | 54,959 | (20,007) | -36.4% | | Other Payables and Accruals | 72,949 | 96,079 | (23,130) | -24.1% | | Contract Liabilities | 78,840 | 85,423 | (6,583) | -7.7% | | Lease Liabilities | 462 | 1,107 | (645) | -58.3% | | **Total Current Liabilities** | **188,044** | **238,779** | **(50,735)** | **-21.2%** | [Net Current Assets and Total Assets Less Current Liabilities](index=28&type=section&id=Net%20Current%20Assets%20and%20Total%20Assets%20Less%20Current%20Liabilities) As of June 30, 2024, net current assets increased to RMB 293.9 million, and total assets less current liabilities increased to RMB 485.0 million, indicating improved liquidity Liquidity Indicators (RMB thousand) | Indicator | Jun 30, 2024 | Dec 31, 2023 | Change | Change Rate | | :--- | :--- | :--- | :--- | | Net Current Assets | 293,859 | 268,339 | +25,520 | +9.5% | | Total Assets Less Current Liabilities | 484,973 | 460,275 | +24,698 | +5.4% | [Non-Current Liabilities](index=29&type=section&id=Non-Current%20Liabilities) As of June 30, 2024, total non-current liabilities were RMB 5.2 million, largely consistent with year-end 2023 Non-Current Liabilities (RMB thousand) | Indicator | Jun 30, 2024 | Dec 31, 2023 | Change | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Provisions | 2,652 | 2,717 | (65) | -2.4% | | Lease Liabilities | 1,934 | 1,938 | (4) | -0.2% | | Deferred tax liabilities | 590 | 590 | 0 | 0.0% | | **Total Non-Current Liabilities** | **5,176** | **5,245** | **(69)** | **-1.3%** | [Net Assets and Total Equity](index=29&type=section&id=Net%20Assets%20and%20Total%20Equity) As of June 30, 2024, net assets and total equity both increased to RMB 479.8 million, reflecting strengthened financial position Net Assets and Total Equity (RMB thousand) | Indicator | Jun 30, 2024 | Dec 31, 2023 | Change | Change Rate | | :--- | :--- | :--- | :--- | | Net Assets | 479,797 | 455,030 | +24,767 | +5.4% | | Total Equity | 479,797 | 455,030 | +24,767 | +5.4% | | Equity attributable to equity holders of the Company | 479,833 | 454,999 | +24,834 | +5.5% | | Non-controlling interests | (36) | 31 | (67) | -216.1% | [Interim Condensed Consolidated Statement of Changes in Equity](index=30&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) This statement outlines the changes in the Group's equity for the periods presented, reflecting profit, other comprehensive income, and transfers [Equity Changes for H1 2024](index=30&type=section&id=Equity%20Changes%20for%20H1%202024) As of June 30, 2024, total equity increased to RMB 479.8 million, primarily driven by profit for the period of RMB 24.0 million and an increase in exchange reserves of RMB 750 thousand H1 2024 Equity Changes Overview (RMB thousand) | Indicator | Share Capital | Share Premium | Merger Reserve | Statutory Surplus Reserve | Exchange Reserve | Other Reserve | Retained Profits | Total (Parent Company) | Non-controlling Interests | Total Equity | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Jan 1, 2024 | 3,572 | 246,327 | (15,894) | 28,810 | 3,713 | 1,890 | 186,581 | 454,999 | 31 | 455,030 | | Profit for the period | - | - | - | - | - | - | 24,084 | 24,084 | (67) | 24,017 | | Exchange differences | - | - | - | - | 750 | - | - | 750 | - | 750 | | Total comprehensive income for the period | - | - | - | - | 750 | - | 24,084 | 24,834 | (67) | 24,767 | | Transfer from retained profits | - | - | - | 2,747 | - | - | (2,747) | 0 | 0 | 0 | | **Jun 30, 2024** | **3,572** | **246,327** | **(15,894)** | **31,557** | **4,463** | **1,890** | **207,918** | **479,833** | **(36)** | **479,797** | [Equity Changes for H1 2023](index=31&type=section&id=Equity%20Changes%20for%20H1%202023) As of June 30, 2023, total equity was RMB 437.1 million, with profit for the period of RMB 20.8 million and an increase in exchange reserves of RMB 2.9 million H1 2023 Equity Changes Overview (RMB thousand) | Indicator | Share Capital | Share Premium | Merger Reserve | Statutory Surplus Reserve | Exchange Reserve | Other Reserve | Retained Profits | Total (Parent Company) | Non-controlling Interests | Total Equity | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Jan 1, 2023 | 3,572 | 246,327 | (15,894) | 23,899 | 2,361 | 1,890 | 151,319 | 413,474 | 23 | 413,497 | | Profit for the period | - | - | - | - | - | - | 20,766 | 20,766 | 7 | 20,773 | | Exchange differences | - | - | - | - | 2,870 | - | - | 2,870 | - | 2,870 | | Total comprehensive income for the period | - | - | - | - | 2,870 | - | 20,766 | 23,636 | 7 | 23,643 | | Transfer from retained profits | - | - | - | 3,021 | - | - | (3,021) | 0 | 0 | 0 | | **Jun 30, 2023** | **3,572** | **246,327** | **(15,894)** | **26,920** | **5,231** | **1,890** | **169,064** | **437,110** | **30** | **437,140** | [Interim Condensed Consolidated Statement of Cash Flows](index=32&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) This statement presents the Group's cash flows from operating, investing, and financing activities for the periods presented [Operating Activities](index=32&type=section&id=Operating%20Activities) Net cash flow from operating activities for the period was RMB 7.0 million, a decrease from RMB 9.2 million in the prior year, mainly due to changes in working capital Operating Activities Cash Flow (RMB thousand) | Indicator | H1 2024 | H1 2023 | Change | | :--- | :--- | :--- | :--- | | Profit Before Tax | 33,512 | 31,153 | +2,359 | | Operating cash flow before working capital changes | 34,735 | 34,236 | +499 | | Change in trade receivables | +24,217 | (19,419) | +43,636 | | Change in trade payables | (20,007) | (7,820) | (12,187) | | Cash generated from operations | 17,419 | 18,353 | (934) | | Income tax paid | (10,388) | (9,196) | (1,192) | | **Net cash flow from operating activities** | **7,031** | **9,157** | **(2,126)** | [Investing Activities](index=33&type=section&id=Investing%20Activities) Net cash flow used in investing activities for the period was RMB 383 thousand, primarily for purchasing property, plant, and equipment, contrasting with a net inflow in the prior year Investing Activities Cash Flow (RMB thousand) | Indicator | H1 2024 | H1 2023 | Change | | :--- | :--- | :--- | :--- | | Purchase of property, plant and equipment items | (613) | (1,827) | +1,214 | | Interest income received | 230 | 3,561 | (3,331) | | **Net cash flow (used in) generated from investing activities** | **(383)** | **1,734** | **(2,117)** | [Net Increase in Cash and Cash Equivalents](index=33&type=section&id=Net%20Increase%20in%20Cash%20and%20Cash%20Equivalents) The net increase in cash and cash equivalents for the period was RMB 6.6 million, with an ending balance of RMB 217.4 million Cash and Cash Equivalents Movement (RMB thousand) | Indicator | H1 2024 | H1 2023 | Change | | :--- | :--- | :--- | :--- | | Net increase in cash and cash equivalents | 6,648 | 10,891 | (4,243) | | Cash and cash equivalents at beginning of period | 210,684 | 467,723 | (257,039) | | Effect of exchange rate changes | 40 | 108 | (68) | | **Cash and cash equivalents at end of period** | **217,372** | **478,722** | **(261,350)** | [Notes to Interim Condensed Consolidated Financial Information](index=34&type=section&id=Notes%20to%20Interim%20Condensed%20Consolidated%20Financial%20Information) This section provides detailed notes to the interim condensed consolidated financial information, covering corporate details, accounting policies, segment information, and specific financial statement items [Corporate Information (Notes)](index=34&type=section&id=Corporate%20Information%20(Notes)) The company, incorporated in the Cayman Islands in 2019 and listed on the HKEX in 2020, primarily engages in property management, engineering, and development services - The company was incorporated in the Cayman Islands on August 12, 2019, and listed on the Main Board of the Stock Exchange on March 9, 2020[78](index=78&type=chunk) - The Group is principally engaged in property management and value-added services, property engineering services, and property development[78](index=78&type=chunk) - The company's ultimate controlling company is Vistra Trust (BVI) Limited, as trustee of Blossom Trust, with Ms. Zhang Huiqi as the protector and discretionary beneficiary of the trust[78](index=78&type=chunk) [Basis of Preparation](index=34&type=section&id=Basis%20of%20Preparation) The interim condensed consolidated financial information is prepared in accordance with IAS 34, approved for issue by the Board on August 29, 2024, and presented in RMB - The interim condensed consolidated financial information has been prepared in accordance with International Accounting Standard 34 "Interim Financial Reporting"[79](index=79&type=chunk)[80](index=80&type=chunk) - The financial information was approved for issue by the Board of Directors on August 29, 2024, and is presented in RMB[86](index=86&type=chunk)[88](index=88&type=chunk) [Changes in Accounting Policies and Disclosures](index=35&type=section&id=Changes%20in%20Accounting%20Policies%20and%20Disclosures) Several new and revised IFRS standards, including amendments to IAS 1, IFRS 16, IAS 7, and IFRS 7, were adopted for the first time during the period but had no significant impact on the Group's interim condensed consolidated financial information - Several new and revised International Financial Reporting Standards were adopted for the first time during the period, including amendments to IAS 1 (Classification of Liabilities as Current or Non-current, Non-current Liabilities with Covenants), IFRS 16 (Lease Liability in a Sale and Leaseback), and IAS 7 and IFRS 7 (Supplier Finance Arrangements)[87](index=87&type=chunk)[89](index=89&type=chunk)[90](index=90&type=chunk)[91](index=91&type=chunk)[92](index=92&type=chunk)[93](index=93&type=chunk) - All adopted amendments had no significant impact on the Group's interim condensed consolidated financial information[90](index=90&type=chunk)[91](index=91&type=chunk)[92](index=92&type=chunk)[93](index=93&type=chunk) [Operating Segment Information](index=38&type=section&id=Operating%20Segment%20Information) The Group operates four reportable segments: property management and value-added services, property engineering services, property development, and others, with property management being the primary revenue source, but property engineering services recorded a loss - The Group is divided into four reportable operating segments: property management and value-added services, property engineering services, property development, and others[94](index=94&type=chunk) Segment Revenue (RMB thousand) | Segment | H1 2024 | H1 2023 | | :--- | :--- | :--- | | Property Management and Value-Added Services | 148,201 | 136,197 | | Property Engineering Services | 2,668 | 6,987 | | Property Development | – | – | | Others | 16,332 | 16,549 | | **Total** | **167,201** | **159,733** | Segment Results (RMB thousand) | Segment | H1 2024 | H1 2023 | | :--- | :--- | :--- | | Property Management and Value-Added Services | 35,954 | 39,523 | | Property Engineering Services | (2,335) | (942) | | Property Development | (117) | – | | Others | 2,064 | (2,804) | | **Total Segment Results** | **35,566** | **35,777** | - The property engineering services segment recorded a loss of **RMB 2.3 million** in H1 2024, an increase from the loss in the prior year[96](index=96&type=chunk) - No geographical analysis of operations is presented as the Group operates solely in Mainland China[99](index=99&type=chunk)[100](index=100&type=chunk) [Revenue (Notes)](index=42&type=section&id=Revenue%20(Notes)) Total revenue for the period was RMB 167.2 million, primarily from property management and value-added services, with property management services recognized over time and other services at a point in time Revenue by Service Type (RMB thousand) | Service Type | H1 2024 | H1 2023 | | :--- | :--- | :--- | | Property Management and Value-Added Services | 148,201 | 136,197 | | Property Engineering Services | 2,668 | 6,987 | | Club House Services | 6,881 | 7,761 | | Charging Pile Services | 6,281 | 3,538 | | Agency Services | 870 | 3,119 | | Others | 2,300 | 2,131 | | **Total** | **167,201** | **159,733** | Revenue by Timing of Recognition (RMB thousand) | Timing of Revenue Recognition | H1 2024 | H1 2023 | | :--- | :--- | :--- | | At a point in time (Value-added services, Club house services, Charging pile services, Agency services, Others) | 19,062 | 17,446 | | Over time (Property management, Property engineering services) | 148,138 | 142,287 | | **Total** | **167,201** | **159,733** | - Property management and value-added services are primarily provided to properties under management developed by related parties (Yongzuan Group, Zhengshang Industrial Group, Zhengshang Development Group)[103](index=103&type=chunk)[104](index=104&type=chunk) [Other Income, Other Gains and Losses, Net (Notes)](index=43&type=section&id=Other%20Income%2C%20Other%20Gains%20and%20Losses%2C%20Net%20(Notes)) Net other income, other gains and losses for the period was a loss of RMB 400 thousand, primarily due to exchange losses, with both government grants and interest income decreasing Other Income, Other Gains and Losses, Net (RMB thousand) | Indicator | H1 2024 | H1 2023 | | :--- | :--- | :--- | | Government grants | 18 | 84 | | Interest income | 230 | 1,599 | | Exchange differences | (645) | (2,585) | | Other (losses) gains | (3) | 381 | | **Total** | **(400)** | **(521)** | - Decreased government grants and reduced exchange losses collectively led to a decrease in net other income, other gains and losses[20](index=20&type=chunk) [Profit Before Tax (Notes)](index=44&type=section&id=Profit%20Before%20Tax%20(Notes)) Profit before tax for the period was RMB 33.5 million, with increased staff costs, decreased R&D expenses, and a reversal of impairment losses on financial and contract assets Profit Before Tax Adjustment Items (RMB thousand) | Item | H1 2024 | H1 2023 | | :--- | :--- | :--- | | Staff costs (including directors' emoluments) | 40,154 | 34,005 | | Cost of services provided | 117,213 | 109,224 | | Depreciation of property, plant and equipment | 1,036 | 614 | | Research and development expenses | 884 | 2,306 | | Impairment losses (reversal of impairment losses) on financial and contract assets | (405) | 650 | - Staff costs increased primarily due to business expansion[20](index=20&type=chunk) - Research and development expenses decreased from **RMB 2.3 million** to **RMB 884 thousand**[107](index=107&type=chunk) [Income Tax Expense (Notes)](index=45&type=section&id=Income%20Tax%20Expense%20(Notes)) The Group operates mainly in Mainland China, subject to a 25% corporate income tax rate, with some subsidiaries enjoying preferential rates of 5% or 15%; income tax expense for the period was RMB 9.5 million - The Group is subject to income tax on profits generated or earned in the jurisdictions where its Mainland China operations are located, on an entity basis[109](index=109&type=chunk)[111](index=111&type=chunk) - Some subsidiaries (e.g., Zhengshang Haoshenghuo) enjoy a preferential corporate tax rate of **5%**, Henan Wuxiang Intelligent Technology Co., Ltd. enjoys a **15%** preferential tax rate for high-tech enterprises, while other Chinese operating subsidiaries are subject to a **25%** corporate income tax rate[110](index=110&type=chunk)[111](index=111&type=chunk) Income Tax Expense (RMB thousand) | Indicator | H1 2024 | H1 2023 | | :--- | :--- | :--- | | Current tax (PRC corporate income tax) | 9,266 | 10,097 | | Deferred tax (origination and reversal of temporary differences) | 229 | 283 | | **Total** | **9,495** | **10,380** | [Dividends (Notes)](index=46&type=section&id=Dividends%20(Notes)) The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2024 - The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2024 (H1 2023: nil)[114](index=114&type=chunk)[115](index=115&type=chunk) [Earnings Per Share Attributable to Equity Holders of the Company (Notes)](index=46&type=section&id=Earnings%20Per%20Share%20Attributable%20to%20Equity%20Holders%20of%20the%20Company%20(Notes)) Basic and diluted earnings per share for the period were RMB 6.02 cents, calculated based on profit attributable to equity holders of RMB 24.1 million and 400,000,000 weighted average ordinary shares Earnings Per Share Calculation Basis (RMB thousand) | Indicator | H1 2024 | H1 2023 | | :--- | :--- | :--- | | Profit for the period attributable to equity holders of the Company used in calculating basic earnings per share | 24,084 | 20,766 | | Weighted average number of ordinary shares in issue during the period | 400,000,000 | 400,000,000 | - The Group had no potential dilutive ordinary shares in issue during H1 2024 and H1 2023[116](index=116&type=chunk) [Trade Receivables (Notes)](index=47&type=section&id=Trade%20Receivables%20(Notes)) As of June 30, 2024, net trade receivables were RMB 67.7 million, a significant 32.1% decrease from year-end 2023, primarily due to increased repayments from related parties Trade Receivables (RMB thousand) | Indicator | Jun 30, 2024 | Dec 31, 2023 | Change | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Net trade receivables from third parties | 33,121 | 27,362 | +5,759 | +21.0% | | Net trade receivables from related parties | 34,553 | 72,313 | (37,760) | -52.2% | | **Total Net Trade Receivables** | **67,674** | **99,675** | **(32,001)** | **-32.1%** | Ageing Analysis of Trade Receivables (RMB thousand) | Ageing | Jun 30, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | Within 1 year | 39,053 | 52,585 | | 1 to 2 years | 22,160 | 42,863 | | 2 to 3 years | 6,134 | 4,040 | | 3 to 4 years | 327 | 187 | | **Total** | **67,674** | **99,675** | - Gross trade receivables from related parties decreased by approximately **51.8%**, mainly due to the Group's efforts in recovering trade receivables and implementing management measures[23](index=23&type=chunk)[123](index=123&type=chunk) [Trade Payables (Notes)](index=48&type=section&id=Trade%20Payables%20(Notes)) As of June 30, 2024, trade payables were RMB 35.0 million, a 36.4% decrease from year-end 2023 due to timely settlement; these are non-interest bearing and typically settled within three months Ageing Analysis of Trade Payables (RMB thousand) | Ageing | Jun 30, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | Within 1 year | 28,832 | 51,856 | | Over 1 year | 6,120 | 3,103 | | **Total** | **34,952** | **54,959** | - The decrease in trade payables was due to timely settlement of trade payables during the period[27](index=27&type=chunk) - Trade payables are non-interest bearing and generally settled within three months, with their carrying amounts approximating fair values[121](index=121&type=chunk) [Share Capital (Notes)](index=49&type=section&id=Share%20Capital%20(Notes)) As of June 30, 2024, the company's authorized share capital was 10,000,000 thousand shares, with 400,000,000 fully paid-up shares issued, each with a par value of HKD 0.01, totaling RMB 3,572 thousand Share Capital Structure (RMB thousand) | Indicator | Jun 30, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | Authorized share capital (10,000,000 thousand shares, HKD 0.01 each) | 89,858 | 89,858 | | Issued and fully paid share capital (400,000,000 shares, HKD 0.01 each) | 3,572 | 3,572 | - All shares issued during the period rank pari passu in all respects with the existing issued shares[123](index=123&type=chunk) [Contingent Liabilities (Notes)](index=49&type=section&id=Contingent%20Liabilities%20(Notes)) The Group had no significant contingent liabilities at the end of the reporting period - The Group had no significant contingent liabilities at the end of the reporting period[124](index=124&type=chunk) [Commitments (Notes)](index=50&type=section&id=Commitments%20(Notes)) As of June 30, 2024, the Group had capital expenditure commitments of RMB 280.2 million contracted but not yet provided for property development expenses Capital Expenditure Commitments (RMB thousand) | Item | Jun 30, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | Contracted but not yet provided for property development expenses | 280,171 | 311,454 | [Related Party Transactions](index=50&type=section&id=Related%20Party%20Transactions) During the period, the company's sales of services to related parties totaled RMB 7.8 million, primarily for property management and engineering services, with various outstanding balances and active management of receivables Sales of Services to Related Parties (RMB thousand) | Service Type | H1 2024 | H1 2023 | | :--- | :--- | :--- | | Provision of property management and value-added services to related parties | 5,094 | 12,880 | | Provision of property engineering services to related parties | 2,668 | 5,700 | | **Total** | **7,762** | **18,580** | - Sales of services to related parties are conducted under agreements mutually agreed upon by the parties[127](index=127&type=chunk) - Related parties include Yongzuan Global Group, Zhengshang Industrial Group, and Zhengshang Development Group, all associated with non-executive director Ms. Zhang Huiqi[127](index=127&type=chunk) - As of June 30, 2024, receivables from related parties included in contract assets amounted to **RMB 39,178 thousand**[128](index=128&type=chunk) - As of June 30, 2024, payables to related parties included in contract liabilities, other payables and accruals, and lease liabilities amounted to **RMB 2,869 thousand**, **RMB 6,224 thousand**, and **RMB 2,396 thousand**, respectively[128](index=128&type=chunk) Key Management Personnel Remuneration (RMB thousand) | Item | H1 2024 | H1 2023 | | :--- | :--- | :--- | | Short-term employee benefits | 1,037 | 886 | | Post-employment benefits | 80 | 66 | | **Total** | **1,117** | **952** | [Fair Value and Fair Value Hierarchy of Financial Instruments](index=53&type=section&id=Fair%20Value%20and%20Fair%20Value%20Hierarchy%20of%20Financial%20Instruments) Management assesses that the fair values of financial instruments like cash and cash equivalents, trade receivables, and trade payables approximate their carrying amounts due to their short-term maturity, with the finance department overseeing fair value measurement policies - Management has assessed that the fair values of financial instruments such as cash and cash equivalents, trade receivables, and trade payables approximate their carrying amounts, primarily due to the short-term maturity of these instruments[130](index=130&type=chunk)[132](index=132&type=chunk) - The Group's finance department, led by the finance manager, is responsible for determining policies and procedures for fair value measurement of financial instruments, reporting directly to the Chief Financial Officer and the Audit Committee[130](index=130&type=chunk)[132](index=132&type=chunk)

Financial Performance - For the six months ended June 30, 2024, revenue was approximately RMB 167.2 million, an increase of about 4.7% compared to RMB 159.7 million for the same period in 2023[1]. - Gross profit for the same period was approximately RMB 50.0 million, a decrease of about 1.0% from RMB 50.5 million in the prior year[1]. - Profit attributable to equity holders was approximately RMB 24.1 million, representing an increase of about 15.9% from RMB 20.8 million in the same period of 2023[1]. - Basic earnings per share for the period were approximately RMB 6.02, compared to RMB 5.19 for the same period in 2023[1]. - The total comprehensive income for the period was RMB 24.767 million, compared to RMB 23.643 million in the previous year[4]. - The company reported a pre-tax profit of RMB 33,512,000 for the six months ended June 30, 2024, compared to RMB 31,153,000 for the same period in 2023, reflecting an increase of 7.6%[14]. - Profit attributable to equity holders increased by approximately RMB 3.3 million or 15.9% to about RMB 24.1 million for the six months ended June 30, 2023[48]. Revenue Breakdown - For the six months ended June 30, 2024, the revenue from property management and value-added services was RMB 148,201,000, an increase of 8.8% compared to RMB 136,197,000 for the same period in 2023[13]. - The revenue from property engineering services decreased significantly to RMB 2,668,000, down 61.8% from RMB 6,987,000 in the previous year[18]. - The company’s property management and value-added services segment accounted for the largest share of revenue, contributing RMB 148,201,000 for the six months ended June 30, 2024[18]. - Revenue from independent third parties was RMB 159,439,000, representing 95.4% of total revenue, compared to RMB 141,153,000 or 88.4% in the previous year[37]. - Revenue from related parties decreased to RMB 7,762,000, accounting for 4.6% of total revenue, down from RMB 18,580,000 or 11.6% in the previous year[37]. Assets and Liabilities - Non-current assets amounted to RMB 191.114 million, slightly down from RMB 191.936 million as of December 31, 2023[5]. - Current assets totaled RMB 481.903 million, a decrease from RMB 507.118 million at the end of the previous year[5]. - Current liabilities decreased to RMB 188.044 million from RMB 238.779 million as of December 31, 2023[5]. - As of June 30, 2024, total assets amounted to RMB 673,017,000, a decrease from RMB 699,054,000 as of December 31, 2023[16]. - The total liabilities as of June 30, 2024, were RMB 193,220,000, down from RMB 244,024,000 as of December 31, 2023[16]. - The net asset value of the company increased to RMB 479.797 million from RMB 455.030 million at the end of the previous year[6]. Costs and Expenses - The company reported a financial cost of RMB 56, down from RMB 62 in the same period last year[3]. - Employee costs increased to RMB 40,154,000 from RMB 34,005,000, reflecting an increase of 18.9%[21]. - Administrative expenses decreased by approximately RMB 1.8 million or 10.3% to about RMB 15.7 million, mainly due to reduced professional fees incurred during the period[45]. - Service costs rose by approximately RMB 8.0 million or 7.3% to about RMB 117.2 million, consistent with revenue growth[41]. Corporate Governance and Strategy - The company has adhered to corporate governance codes, ensuring a balance of power and authority within its board structure[72]. - The company will continue to review and monitor its corporate governance practices to maintain high standards[72]. - The audit committee consists of three independent non-executive directors, responsible for reviewing financial reporting procedures and risk management systems[74]. - The company aims to enhance its position in property services by pursuing more property management projects and selectively seeking acquisition opportunities within the industry[68]. - The strategy includes deepening professional coverage, expanding service capabilities, and improving service quality, responsiveness, and customer satisfaction[69]. Future Outlook and Developments - The Zhengzhou Zhengshang Center project is currently under major construction and is expected to be completed by the end of 2025[35]. - The company continues to diversify its property management and value-added services across both residential and non-residential properties[34]. - The company is committed to high-quality development, focusing on customer satisfaction and service transformation[69]. - The company plans to implement a standardized service quality system to ensure smooth operations in residential, commercial, and public services[69]. - Approximately HKD 167.8 million (equivalent to RMB 149.6 million) was raised from the global offering, with net proceeds allocated for various strategic purposes[70]. - As of June 30, 2024, about RMB 75.0 million of the raised funds has been utilized for enhancing property engineering services and property management services[70]. Miscellaneous - The company did not recommend an interim dividend for the six months ended June 30, 2024, consistent with the previous year[24]. - The company has not reported any significant changes in its financial condition or major events since December 31, 2023[71]. - The interim results announcement is available on the Hong Kong Stock Exchange website and the company's website, containing all information required by Appendix D2 of the listing rules[75]. - The company expresses gratitude to management and employees for their dedication and to shareholders for their continued support[76].

Financial Performance - For the year ended December 31, 2023, the Group's revenue was RMB 358.9 million, an increase of approximately RMB 37.8 million compared to RMB 321.1 million in the previous year[8]. - The net profit for the year was approximately RMB 40.2 million, representing a decrease of approximately RMB 7.0 million from RMB 47.2 million in the previous year[8]. - Basic earnings per share for the year amounted to RMB 10.04 cents[8]. - Revenue for the year ended December 31, 2023, was RMB 358,943,000, an increase from RMB 321,069,000 in 2022, representing a growth of approximately 11.8%[31]. - Net profit for the year decreased to RMB 40,181,000 from RMB 47,198,000 in 2022, reflecting a decline of about 14.3%[31]. - Gross profit margin decreased to 27.1% in 2023 from 31.0% in 2022, indicating a reduction in profitability[31]. - Revenue from property management and value-added services increased by approximately RMB 21.4 million or 8.3% to approximately RMB 278.2 million, primarily due to the expansion of properties under management[50]. - Revenue from property engineering services decreased by approximately RMB 10.3 million or 20.3% to approximately RMB 40.5 million, mainly due to a downturn in the real estate market[51]. - Other revenue increased significantly by approximately RMB 26.7 million or 197.8% to approximately RMB 40.2 million, attributed to more intermediary and charging pile services provided[55]. - Gross profit decreased by approximately RMB 2.5 million or 2.5% to approximately RMB 97.2 million, with a gross margin of approximately 27.1%, down from 31.0% in the previous year[61]. Asset and Liability Management - The total assets increased to RMB 699,054,000 in 2023 from RMB 591,331,000 in 2022, showing a growth of approximately 18.2%[33]. - Cash and cash equivalents decreased significantly to RMB 210,684,000 in 2023 from RMB 467,723,000 in 2022, a decline of approximately 55.0%[33]. - Current ratio decreased to 2.1 times in 2023 from 3.4 times in 2022, indicating a reduction in short-term liquidity[33]. - Total trade receivables increased to approximately RMB 102.2 million, up from approximately RMB 83.5 million, driven by growth in properties under management[78]. - Trade payables increased by approximately RMB 13.2 million or 31.6% to approximately RMB 55.0 million, consistent with the increase in cost of sales during the year[86]. - Contract liabilities increased from approximately RMB 66.9 million as of December 31, 2022, to approximately RMB 85.4 million as of December 31, 2023, representing an increase of RMB 18.5 million or 27.7%[93]. - Current assets decreased to approximately RMB 507.1 million as of December 31, 2023, down RMB 76.8 million or 13.2% from RMB 583.9 million as of December 31, 2022[95]. Strategic Initiatives and Acquisitions - The Company successfully acquired Henan Zheng Zhi Yue Real Estate Co., Ltd., expanding into the investment, development, and construction of non-residential properties[16]. - The Group completed the acquisition of Zheng Zhi Yue for RMB 95 million on December 26, 2023, which is engaged in real estate development[114]. - The acquisition is seen as an entry into a new business segment for investment, development, and construction of non-residential properties, targeting long-term holding and management in the PRC[123]. - Future strategies include undertaking additional property management projects focused on mid to high-end non-residential properties and selectively pursuing M&A opportunities[122]. Operational Enhancements - The Company has launched the "Chief Services Officer Program" to enhance service quality and create benchmark projects[9]. - The Company is focusing on technology empowerment through the integration of IoT, cloud computing, and mobile internet to create smart communities[14]. - The Company has broadened its service scope to include projects such as exhibition halls, high-end elderly housing, and hospitals, enhancing integrated service capabilities[20]. - The Company aims to improve service efficiency and expand service depth through refined management measures and competitive service standards[21]. - The Group aims for high-quality development, focusing on customer satisfaction, product upgrades, and efficient operations[124]. - The Group plans to enhance customer service products and digitize customer data through a physical object cloud platform[127]. Governance and Management - The management team includes experienced professionals with backgrounds in real estate development and management, enhancing operational capabilities[148]. - The company has appointed independent non-executive directors to enhance governance and oversight, including Mr. Zhou Sheng since August 2019[172]. - The Group's management team has extensive backgrounds in real estate, law, and business administration, contributing to strategic decision-making[175]. - The company is committed to maintaining high standards of governance and independent oversight through its board committees[172]. Market Position and Future Outlook - The company is engaged in real estate investment and management, with a focus on expanding its market presence in the United States[142]. - The company is expanding its market presence in Southeast Asia, with plans to enter three new countries by Q3 2024[154]. - The company provided guidance for the next fiscal year, projecting revenue growth of 10% to 12%, targeting a range of $1.32 billion to $1.344 billion[154]. - The company aims to leverage its leadership's extensive industry experience to drive growth and market expansion[143].

Financial Performance - For the fiscal year ending December 31, 2023, revenue was approximately RMB 358.9 million, an increase of about 11.8% compared to RMB 321.1 million for the fiscal year ending December 31, 2022[4]. - Gross profit for the fiscal year was approximately RMB 97.2 million, a decrease of about 2.5% from RMB 99.7 million for the previous fiscal year[4]. - Net profit attributable to the parent company was approximately RMB 40.2 million, a decrease of about 14.8% compared to RMB 47.2 million for the fiscal year ending December 31, 2022[4]. - Basic earnings per share for the fiscal year were approximately RMB 10.0 cents, down from RMB 11.8 cents for the previous fiscal year[4]. - The company reported a pre-tax profit of approximately RMB 56.9 million, compared to RMB 65.0 million for the previous fiscal year[5]. - Total comprehensive income for the year was approximately RMB 41.5 million, down from RMB 51.2 million for the previous fiscal year[5]. - Other income, gains, and losses amounted to approximately RMB 5.7 million for the fiscal year[5]. - The company incurred administrative expenses of approximately RMB 42.2 million, compared to RMB 1.3 million for the previous fiscal year[5]. - The company experienced a foreign exchange gain of approximately RMB 3.4 million during the fiscal year[5]. Assets and Liabilities - Total non-current assets increased to RMB 191,936 thousand in 2023 from RMB 188,536 thousand in 2022, reflecting a growth of 1.3%[6]. - Current assets reached RMB 583,944 thousand in 2023, compared to RMB 507,118 thousand in 2022, marking a significant increase of 15.1%[6]. - The company's net asset value rose to RMB 455,030 thousand in 2023, up from RMB 413,497 thousand in 2022, representing a growth of 10%[8]. - Total liabilities decreased from RMB 238,779 thousand in 2022 to RMB 173,072 thousand in 2023, a reduction of 27.5%[6]. - Trade receivables increased to RMB 99,675 thousand in 2023, compared to RMB 82,206 thousand in 2022, indicating a growth of 21.4%[6]. - The company reported cash and cash equivalents of RMB 210,684 thousand in 2023, up from RMB 467,723 thousand in 2022, reflecting a decrease of 55%[6]. - The company’s deferred tax assets decreased slightly from RMB 1,300 thousand in 2022 to RMB 1,261 thousand in 2023, a decline of 3%[6]. - The company’s lease liabilities decreased from RMB 2,142 thousand in 2022 to RMB 1,938 thousand in 2023, a reduction of 9.5%[8]. Revenue Segments - The company’s total revenue from property management and value-added services is primarily derived from properties managed by related parties, indicating a focus on strategic partnerships for growth[10]. - Property management and value-added services generated revenue of RMB 278,245,000, up from RMB 256,775,000 in the previous year, reflecting a growth of 8.3%[23]. - The property engineering services segment reported revenue of RMB 40,469,000, a decrease of 20.5% from RMB 50,819,000 in 2022[23]. - Revenue from property engineering services decreased to approximately RMB 40.5 million, a reduction of about RMB 10.3 million or 20.3% from RMB 50.8 million for the year ended December 31, 2022[57]. - Revenue from independent third parties was RMB 289.3 million, accounting for 80.6% of total revenue, while revenue from related parties was RMB 69.7 million, accounting for 19.4%[55]. Strategic Initiatives - The company plans to continue exploring market expansion opportunities and new product development strategies in the upcoming fiscal year[4]. - The company aims to diversify its property management and value-added services across both residential and non-residential properties[51]. - The company acquired Zheng Zhi Yue to develop its property development business during the year[51]. - The company anticipates completing its property development projects by the end of 2025, indicating a strategic focus on market expansion[31]. - The company plans to focus on acquiring more property management projects, particularly in the mid-to-high-end non-residential sector, and selectively seek acquisition opportunities within the property management industry[92]. Corporate Governance - The board of directors acknowledges the importance of good corporate governance and has adopted corporate governance practices in line with the relevant codes[98]. - The audit committee consists of three independent non-executive directors, responsible for reviewing financial reports and internal controls[101]. - The company has adopted the standard code for securities trading by directors, confirming compliance for the current year[100]. - The board will continue to review and monitor the company's corporate governance practices[99]. Employee and Operational Costs - The total employee costs, including director remuneration, amounted to RMB 63,251,000 in 2023, up from RMB 50,271,000 in 2022, representing a 25.8% increase[1]. - Research and development expenses increased to RMB 4,252,000 in 2023 from RMB 3,218,000 in 2022, reflecting a growth of 32.1%[1]. - Selling and marketing expenses rose from approximately RMB 1.3 million to about RMB 2.4 million, an increase of approximately RMB 1.1 million or 84.6%, primarily related to business expansion this year[62]. - Administrative expenses increased from approximately RMB 35.5 million to about RMB 42.2 million, an increase of approximately RMB 6.7 million or 18.9%, mainly due to an increase in employee costs from expanded project management[63]. Acquisitions and Investments - The company completed the acquisition of Zhengzhi Yue Real Estate Co., Ltd. for a cash consideration of RMB 95,000,000 on December 26, 2023[42]. - The net identifiable assets acquired from Zhengzhi Yue amounted to RMB 95,000,000, with total cash outflow for the acquisition being RMB 94,854,000 after accounting for cash acquired[45]. - The group completed the acquisition of Zhengzhiyue for a total consideration of RMB 95 million on December 26, 2023[86]. Future Outlook - The company aims to enhance customer experience through the development of mobile applications and improve operational efficiency by upgrading its information technology systems[92]. - The company is committed to high-quality development, focusing on customer satisfaction and service transformation, with an emphasis on product upgrades and efficient operations[93]. - The company intends to deepen cost control and enhance value-added service revenue capabilities to promote sustainable profit models[94].

Revenue and Financial Performance - For the six months ended June 30, 2023, the Group's total revenue was approximately RMB 159.7 million, representing an increase of approximately RMB 4.1 million or 2.6% compared to RMB 155.7 million for the same period in 2022[19]. - The property management services segment generated revenue of RMB 135.3 million, accounting for 84.7% of total revenue, an increase from RMB 126.9 million or 81.5% in the previous year[21]. - Revenue from property management and value-added services rose by approximately RMB6.3 million or 4.8% to approximately RMB136.2 million for the period, driven by property portfolio expansion despite a downturn in the property market[25]. - Revenue from independent third parties increased to approximately RMB141.2 million, representing 88.4% of total revenue for the six months ended 30 June 2023, compared to 75.0% in the same period of 2022[24]. - Revenue from property engineering services was RMB 6.99 million, representing 4.4% of total revenue, a decrease from RMB 21.1 million or 13.6% in the previous year[21]. - Profit attributable to the owners of the parent decreased by approximately RMB11.2 million or 35.1% to approximately RMB20.8 million for the period[42]. - Gross profit slightly decreased by approximately RMB0.2 million or 0.5% to approximately RMB50.5 million, with a gross profit margin of approximately 31.6%, down from 32.6% in the previous year[31]. - Profit before tax decreased to RMB 31,153,000, down 27% from RMB 42,896,000 in the previous year[166]. - Total comprehensive income for the period was RMB 23,643,000, down from RMB 27,919,000 in the same period last year[167]. Assets and Liabilities - Total trade receivables increased to approximately RMB102.9 million as of 30 June 2023, up from approximately RMB83.5 million as of 31 December 2022, due to growth in properties under management and slower settlement from counterparties[51]. - Current assets increased by approximately RMB23.4 million or 4.0% to RMB607.3 million as of June 30, 2023, compared to RMB583.9 million as of December 31, 2022[66]. - Cash and cash equivalents rose by approximately RMB11.0 million or 2.4% to RMB478.7 million as of June 30, 2023, from RMB467.7 million as of December 31, 2022[66]. - Trade payables decreased by approximately RMB7.8 million or 18.7% to RMB33.9 million as of June 30, 2023, compared to RMB41.8 million as of December 31, 2022, due to timely settlements[57]. - Other payables and accruals increased by approximately RMB16.4 million or 27.1% to RMB77.0 million as of June 30, 2023, from RMB60.6 million as of December 31, 2022[58]. - Contract liabilities decreased by approximately RMB8.9 million or 13.3% to RMB57.9 million as of June 30, 2023, from RMB66.9 million as of December 31, 2022[59]. Strategic Initiatives and Market Position - The Group's strategy includes diversifying its portfolio to include both residential and non-residential properties[13]. - The Group aims to enhance the quality of property management systems through the provision of property engineering services[12]. - The property management market has intensified competition, which may hinder the Group's ability to secure new property management service contracts as planned[88]. - The Group aims to strengthen its position in property management by undertaking additional projects focused on mid to high-end non-residential properties[92]. - Future strategies include selectively pursuing merger and acquisition opportunities within the property management industry[92]. - The Group plans to enhance its property engineering services by offering new products with improved functionalities and technology[92]. - The Group sees opportunities in commercial properties, particularly in prime locations, due to market corrections allowing access to distressed sales[93][96]. - The acquisition is viewed as a strategic move into a new business segment with greater growth potential and higher profit margins in non-residential property investment and management[94][96]. Governance and Management Changes - The audit committee comprises three independent non-executive directors, responsible for reviewing financial reporting processes and risk management[136]. - Mr. Qiu Ming was appointed as an executive director, chairman, and CEO effective April 28, 2023, bringing 14 years of experience in the real estate industry[142]. - Mr. Zhu Jie resigned as executive Director, Chairman, and CEO effective April 28, 2023, to focus on other business commitments[145][147]. - The company has adopted corporate governance practices based on the Corporate Governance Code, ensuring compliance during the period[128]. Shareholder Information - As of June 30, 2023, Ms. Zhang Huiqi holds 226,350,000 shares, representing approximately 56.59% of the issued share capital[105]. - The ultimate holding company of the Company is Vistra Trust (BVI) Limited, as the trustee of the Blossom Trust[181]. - The Company was incorporated under the laws of the Cayman Islands on August 12, 2019, and its shares have been listed on the Hong Kong Stock Exchange since March 9, 2020[179]. - The company raised approximately HK$167.8 million (equivalent to RMB149.6 million) from the global offering of 100,000,000 new shares at HK$1.99 per share[119]. Future Outlook and Development Goals - The Group intends to upgrade its information technology systems to improve operational efficiency in property management[92]. - The Group aims to develop a smart internet technology platform for the entire country, focusing on enhancing technical strength in artificial intelligence and database technologies[98]. - The property management industry is entering a new era, and the Group is committed to setting clear development goals and maintaining innovation to reward stakeholders[100]. - The Group recognizes the need for innovation and substantial operations to reward shareholders and stakeholders effectively[100].

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倚賴該等內容而引致的任何損失承擔任何責任。 Xingye Wulian Service Group Co. Ltd. 興 業 物 聯 服 務 集 團 有 限 公 司 （於開曼群島註冊成立的有限公司） （股份代號：9916） 截 至 二 零 二 三 年 六 月 三 十 日 止 六 個 月 中 期 業 績 公 告 財務摘要 － 於 本 期 間，收 益 約 為 人 民 幣159.7百 萬 元，較 二 零 二 二 年 同 期 約 人 民 幣 155.7百萬元增加約2.6%。 － 於本期間，毛利約為人民幣50.5百萬元，較二零二二年同期約人民幣50.7 百萬元減少約0.5%。 － 於本期間，母公司擁有人應佔溢利約為人民幣20.8百萬元，較二零二二 年同期約人民幣32.0百萬元減少約35.1%。 － 於本期間，每股基本盈利約為人民幣5.19分，而二零二二年同期則約為 人民幣8.00分。 業績 興業物聯服務集團有限公司（「本公司」）董事（「董事」）會（「董事會」 ...

Financial Performance - In 2022, total revenue from property management and property engineering services was RMB321.1 million, an increase of approximately RMB39.4 million or 14.0% compared to RMB281.7 million in the previous year[8]. - The gross profit margin decreased from 33.3% in the previous year to 31.0% in 2022[8]. - Net profit for the year was approximately RMB47.2 million, a decrease of approximately RMB7.3 million or 13.4% compared to RMB54.5 million in the previous year[8]. - Basic earnings per share amounted to RMB11.8 cents, representing a decrease of approximately 13.5% compared to the previous year[8]. - The gross profit for the year was RMB99.7 million, with a gross profit margin of 31.0%, down from 33.3% in the previous year[34]. - The net profit for the year was RMB47.2 million, reflecting a decrease from RMB54.5 million in 2021, resulting in a net profit margin of 14.7%[34]. - Revenue from property management and value-added services increased by approximately RMB28.4 million or 12.4% from approximately RMB228.4 million in 2021 to approximately RMB256.8 million in 2022[51]. - Revenue from property engineering services rose from approximately RMB45.7 million in 2021 to approximately RMB50.8 million in 2022, representing an increase of approximately RMB5.1 million or 11.2%[52]. - The cost of sales increased by approximately RMB33.5 million or 17.9% from approximately RMB187.9 million in 2021 to approximately RMB221.4 million in 2022, in line with revenue growth[56]. - Other income, net decreased by approximately RMB13.7 million or 82.5% from approximately RMB16.6 million in 2021 to approximately RMB2.9 million in 2022, mainly due to a decrease in government grants[58]. - Profit attributable to the owners of the parent decreased by approximately RMB7.3 million or 13.4% from approximately RMB54.5 million in 2021 to approximately RMB47.2 million in 2022[68]. - The board does not recommend the payment of a final dividend for the year[69]. Assets and Liabilities - The total assets of the company as of December 31, 2022, were RMB591.3 million, an increase from RMB532.2 million in 2021[36]. - The company expanded its portfolio of properties under management from approximately 6.6 million sq.m. as of December 31, 2021, to approximately 7.2 million sq.m. as of December 31, 2022[39]. - As of December 31, 2022, the total contract sum for contracted engineering services with remaining performance obligations amounted to RMB48.7 million, which will contribute to future revenue[40]. - The company's cash and cash equivalents increased to RMB467.7 million from RMB399.1 million in the previous year[36]. - The current ratio remained stable at 3.4 times for both years[36]. - Total trade receivables amounted to approximately RMB83.5 million, an increase of approximately RMB42.9 million or 105.7% from RMB40.6 million as of December 31, 2021, attributed to growth in properties under management and slower settlements from counterparties[77]. - Trade payables amounted to approximately RMB41.8 million, an increase of approximately RMB19.3 million or 85.8% compared to RMB22.5 million as of December 31, 2021, consistent with the increase in cost of sales[80]. - Contract liabilities decreased from approximately RMB74.0 million as of December 31, 2021, to approximately RMB66.9 million as of December 31, 2022, representing a decrease of approximately RMB7.1 million or 9.6%[86]. - Current assets increased to approximately RMB583.9 million, up by approximately RMB57.9 million or 11.0% from RMB526.0 million as of December 31, 2021[88]. Strategic Focus and Future Outlook - The company focused on the "Internet of Things and Big Data Platform" strategy to enhance service efficiency and integrate intelligent hardware with CRM systems[14]. - Xingye Wulian expanded its value-added business to include building advertising, gift selection, and asset management, achieving a strategic positioning of "full coverage and broad services"[15]. - The company aims to develop a smart internet technology platform serving the whole country, enhancing technical strength in artificial intelligence and database areas[22]. - Future property management improvements will prioritize customer service and aim to exceed customer expectations[23]. - The company plans to extend its property market expansion, focusing on office buildings and public services, while building barriers against professional service entrants[18]. - The Group plans to enhance property management and engineering services to diversify income streams and mitigate risks associated with the uncertain economic environment in the PRC property industry[109]. - The future outlook includes expanding into office buildings and public services, aiming to build barriers against professional service entrants[118]. - The Group aims to develop a smart internet technology platform and enhance technical strength in areas like artificial intelligence and databases[119]. - The Group emphasizes providing services that exceed customer expectations and fulfilling social responsibilities in urban services[120]. - The Group is positioned to accelerate development amid a competitive environment, focusing on innovation and scientific management to reward stakeholders[120]. Management and Governance - The company has a strong leadership team with extensive experience in real estate development and management, enhancing its strategic capabilities[138][144]. - The management team is committed to providing strategic advice to the board, ensuring informed decision-making[138][144]. - The Group's management structure includes a Remuneration Committee, Audit Committee, and Nomination Committee, ensuring robust governance[168]. - The Group's independent directors bring diverse expertise, contributing to informed decision-making and strategic oversight[168][169]. - The Group aims to leverage its management's extensive industry experience to drive growth and innovation in its operations[173][178]. - The Group's commitment to professional development is reflected in its management's educational qualifications and ongoing training in relevant fields[165][170]. - The Group's overall management is led by experienced professionals with over 14 years in property management and engineering services[181]. - The CFO, Ms. Shi, has over 13 years of experience in accounting, auditing, and corporate finance, enhancing the Group's financial oversight[190]. - The company secretary, Mr. Chang, has over 20 years of experience in accounting and corporate governance, strengthening the Group's compliance[195]. - The Group's management structure is designed to leverage the expertise of its members for strategic decision-making[186]. Market Presence and Growth - The company is focused on business development and investor relations, aiming to strengthen its market position[131]. - The company is expanding its market presence in Southeast Asia, targeting a 20% market share by 2025[150]. - New product launches contributed to 30% of total revenue, with three major products introduced in the last quarter[150]. - The company provided guidance for the next fiscal year, projecting revenue growth of 10% to $1.32 billion[150]. - Research and development expenses increased by 18%, totaling $150 million, focusing on innovative technologies[150]. - The company completed a strategic acquisition of a competitor, enhancing its service offerings and expected to generate an additional $200 million in revenue[150]. - A new partnership with a leading tech firm is expected to drive growth in the next fiscal year, with anticipated revenue contributions of $100 million[150].

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倚賴該等內容而引致的任何損失承擔任何責任。 Xingye Wulian Service Group Co. Ltd. 興 業 物 聯 服 務 集 團 有 限 公 司 （於開曼群島註冊成立的有限公司） （股份代號：9916） 有 關 本 公 司 二 零 二 二 年 業 績 公 告 之 補 充 公 告 茲提述興業物聯服務集團有限公司（「本公司」，連同其附屬公司統稱「本集團」） 於二零二三年三月二十九日刊發的公告，內容有關本集團截至二零二二年十二 月三十一日止年度的經審核年度業績（「二零二二年業績公告」）。除文義另有所 指外，本公告所用詞彙具二零二二年業績公告所界定的相同涵義。 本公司董事會謹此就二零二二年業績公告中出現之筆誤作出澄清。 暫停辦理股份過戶登記手續 24 本公司董事會（「董事會」）注意到，二零二二年業績公告第 頁「暫停辦理股份過 戶登記手續」一段中出現無心之筆誤。董事會謹此澄清（更正處已標識下劃線， 以便參考），為符合資格出席二零二三年股東 ...