Fineland Living Services Group Limited 方 圓 生 活 服 務 集 團 有 限 公 司 (前稱 Fineland Real Estate Services Group Limited 方圓房地產服務集團有限公司) (於開曼群島註冊成立的有限公司) (股份代號：9978) 董事名單及其角色和職能 方圓生活服務集團有限公司董事會（「董事會」）成員載列如下： 執行董事 方明先生（主席） 孫立功先生（行政總裁） 韓曙光先生 謝麗華女士 | | 委員會 審核 | 薪酬 | 提名 | | --- | --- | --- | --- | | 董事 | 委員會 | 委員會 | 委員會 | | 方明先 生 | — | — | 主席 | | 孫立功先生 | — | — | — | | 韓曙光先生 | — | 成員 | — | | 謝麗華女士 | — | — | 成員 | | 梁偉雄先生 | 主席 | 成員 | 成員 | | 田秋生先生 | 成員 | 主席 | 成員 | | 杜稱華先生 | 成員 | — | 成員 | 香港，二零二五年八月二十八日 獨立非執行董事 梁偉雄先生 田秋生先生 杜稱華 ...

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， 概不對因本公告全部或任何 部分內容而產生或因倚賴該等內容而引致的任何損失承 擔任何責任。 Fineland Living Services Group Limited 方 圓 生 活 服 務 集 團 有 限 公 司 ( 前稱 Fineland Real Estate Services Group Limited 方圓房地產服務集團有限公司 ) ( 於開曼群島註冊成立的有限公司 ) (股份代號：9978) 上述變動乃因應上市規則及上市規則附錄C1所載企業管治守則的修訂而作出， 該等修訂於二〇二五年七月一日生效。董事會相信實施該等變動可以加強董 事會的成效及多元化，進一步提升本公司整體的良好企業管治常規。 董事會謹熱烈歡迎謝女士及杜先生加入提名委員會。 - 1 - 承董事會命 方圓生活服務集團有限公司 方明 主席 香港，二零二五年八月二十八日 提名委員會組成之變動 方圓生活服務集團有限公司（「本公司」董事（「董事」）會（「董事會」） 宣佈，自二零二五年八月二十八日生效，執行董事謝麗華女士（ ...

Core Viewpoint - The company, Fangyuan Life Services (09978.HK), has announced a board meeting scheduled for August 28, 2025, to consider and approve its unaudited consolidated financial results for the six months ending June 30, 2025, and to discuss the potential declaration of an interim dividend [1] Group 1 - The board meeting will focus on the approval of financial performance for the first half of 2025 [1] - The company plans to publish the relevant performance announcement on the Hong Kong Stock Exchange and its own website [1] - Consideration of an interim dividend will also be part of the agenda for the board meeting [1]

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，概不對因本公告全部或 任何部分內容而產生或因倚賴該等內容而引致的任何損失承擔任何責任。 Fineland Living Services Group Limited 方 圓 生 活 服 務 集 團 有 限 公 司 （前稱 Fineland Real Estate Services Group Limited 方圓房地產服務集團有限公司） ( 於開曼群島註冊成立之有限公司） (股份代號: 9978) 董事會會議通告 方圓生活服務集團有限公司（「本公司」）董事（「董事」）會（「董事會」） 謹此宣佈，本公司將於 2025 年 8 月 28 日（星期四）舉行董事會會議， 藉以（其中包括） 考慮及批准本公司及其附屬公司截至 2025 年 6 月 30 日止六個月之未經審核簡明綜合財務業績，並批准於香港聯合交易 所有限公司網站及本公司網站刊登之相關業績公告，以及考慮派發中期 股息（如有）。 承董事會命 方圓生活服務集團有限公司 方明 主席 香港， 2025年 8月 18日 於本公告日期，執行董事為方明 ...

股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 截至月份: 2025年7月31日 狀態: 新提交 致：香港交易及結算所有限公司 公司名稱: 方圓生活服務集團有限公司 呈交日期: 2025年8月6日 I. 法定/註冊股本變動 | 1. 股份分類 | 普通股 | 股份類別 | 不適用 | | 於香港聯交所上市 (註1) | | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 09978 | 說明 | | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | 法定/註冊股本 | | | 上月底結存 | | | 10,000,000,000 | HKD | | 0.01 HKD | | 100,000,000 | | 增加 / 減少 (-) | | | 0 | | | HKD | | 0 | | 本月底結存 | | | 10,000,000,000 | HKD | | 0.01 HKD | | 100,000,000 | 本月底法定/註冊股本總額： HKD ...

Financial Performance - The total revenue for the year ended December 31, 2024, was approximately RMB 369.1 million, a decrease of about 13.5% compared to RMB 426.8 million in the same period of 2023, primarily due to declines in real estate agency and property management services [10]. - Revenue from the real estate agency services segment was approximately RMB 6.8 million, down 76.9% from RMB 29.4 million in the same period last year [17]. - The professional property management services segment recorded revenue of approximately RMB 362.3 million, a decrease of 8.8% from RMB 397.4 million in the previous year [18]. - Revenue from property management services was approximately RMB 303.7 million, down 6.3% from RMB 324.1 million in the previous year [19]. - Non-owner value-added services generated revenue of approximately RMB 13.1 million, a decrease of 27.2% from RMB 18.0 million in the previous year [20]. - Community value-added services recorded revenue of approximately RMB 45.5 million, down 17.7% from RMB 55.3 million in the previous year [21]. - The net loss for the year was approximately RMB 1.8 million, compared to a net income of RMB 7.4 million in the previous year [26]. - The company recorded a net loss of approximately RMB 79.3 million for the year ending December 31, 2024, an increase of 38.9% compared to the net loss of approximately RMB 57.1 million for the year ending December 31, 2023 [39]. - The net profit margin decreased from -13.4% for the year ending December 31, 2023, to -21.5% for the year ending December 31, 2024, primarily due to a mismatch between the reduction in service costs and the decline in revenue [38]. Operational Strategies - The company is focusing on strict receivables management as a priority, enhancing contract management and payment processes to ensure operational stability [10]. - Future strategies will emphasize organic growth by leveraging existing resources rather than relying on acquisitions, aiming to build sustainable long-term partnerships [13]. - The company plans to continue its strategic transformation focusing on long-term value creation and sustainable development, maintaining a commitment to integrity and operational efficiency [13]. - A tiered project management system will remain a strategic core, enhancing brand recognition through benchmark projects while optimizing resource allocation for underperforming projects [13]. - The company aims to enhance customer satisfaction and brand reputation by responding quickly to customer needs and proactively solving problems [13]. - The procurement process has been optimized to reduce costs and improve operational efficiency through centralized purchasing and streamlined procedures [11]. Financial Position - As of December 31, 2024, the group's net current liabilities were approximately RMB 28.0 million, down from net current assets of approximately RMB 71.3 million as of December 31, 2023 [42]. - Total assets as of December 31, 2024, were approximately RMB 366.7 million, a decrease from approximately RMB 478.3 million as of December 31, 2023 [42]. - The group's bank balances and cash totaled approximately RMB 66.6 million as of December 31, 2024, compared to RMB 90.8 million as of December 31, 2023 [42]. - Trade receivables decreased from approximately RMB 103.9 million as of December 31, 2023, to approximately RMB 84.0 million as of December 31, 2024, primarily due to the ongoing weakness in the Chinese real estate sector [43]. - The capital debt ratio as of December 31, 2024, was 77%, up from 64% as of December 31, 2023 [47]. - The group had no short-term borrowings as of December 31, 2024, compared to RMB 19.4 million as of December 31, 2023 [44]. Governance and Management - The board currently consists of seven directors, including four executive directors and three independent non-executive directors [59]. - The company has a strong management team with diverse backgrounds in property development, finance, and strategic planning [66][67]. - The company emphasizes the importance of corporate governance, with its secretary, Ms. Chen Zhuochen, having over 17 years of experience in the field [75]. - The company has established an Audit Committee since October 23, 2017, with responsibilities including reviewing and supervising the financial reporting process and internal control systems [76]. - The Compensation Committee was formed on October 23, 2017, to review and determine the remuneration, bonuses, and other compensation terms for directors and senior management [77]. - The Nomination Committee was also established on October 23, 2017, to review the structure, size, composition, and diversity of the board and to provide recommendations on the appointment of directors [78]. - The company has made significant changes to its governance structure, including the establishment of various committees to enhance oversight and management [76][77][78]. Risk Management - The company has a strong focus on risk management, with Ms. Ouyang previously serving as the General Manager of the Risk Control Department [73]. - The board is responsible for establishing and maintaining an effective risk management and internal control system, with annual reviews conducted by the audit committee [111]. - The internal audit team has confirmed the adequacy and effectiveness of the risk management and internal control systems for the year ending December 31, 2024, with no significant issues identified [112]. Environmental and Social Responsibility - The company emphasizes environmental protection and has implemented measures such as energy conservation and waste sorting [83]. - The company actively engages in social welfare activities, reflecting its sense of social responsibility [83]. - The company is committed to environmental sustainability, focusing on reducing paper usage and energy consumption in its operations [182]. Shareholder Information - The largest customer accounted for approximately 1.3% of total revenue for the year ending December 31, 2024, while the top five customers contributed about 4.9% of total sales [129]. - The largest supplier represented approximately 23.4% of total procurement, with the top five suppliers accounting for 40.6% of total procurement for the year ending December 31, 2024 [129]. - The company has maintained compliance with listing rules regarding the appointment of at least three independent non-executive directors, with at least one possessing relevant professional qualifications [103]. - The company has established policies to ensure timely and equal dissemination of inside information to the public [114].

Financial Performance - For the fiscal year ending December 31, 2024, the total revenue was RMB 369,101,000, a decrease of 13.5% compared to RMB 426,784,000 in 2023[3] - The gross profit for the same period was RMB 59,266,000, down 32.0% from RMB 87,034,000 in 2023[3] - The net loss for the year was RMB 79,325,000, compared to a net loss of RMB 57,112,000 in 2023, indicating a worsening financial position[3] - The basic and diluted loss per share increased to RMB 19.23 in 2024 from RMB 15.15 in 2023, reflecting a higher loss per share[4] - The group reported a net loss of approximately RMB 79.3 million for the year ending December 31, 2024, an increase of 38.9% compared to a net loss of RMB 57.1 million in the previous year[61] - The net profit margin decreased to -21.5% from -13.4% in the previous year, mainly due to a mismatch between the reduction in service costs and the decline in revenue[60] Assets and Liabilities - The total assets decreased to RMB 366,742,000 in 2024 from RMB 482,291,000 in 2023, reflecting a decline of approximately 24.0%[5] - Current liabilities exceeded current assets by RMB 28,015,000, indicating liquidity challenges for the company[5] - As of December 31, 2024, the company's net current liabilities are approximately RMB 280 million, a decrease from net current assets of approximately RMB 713 million as of December 31, 2023[63] - Trade receivables decreased from approximately RMB 1,039 million as of December 31, 2023, to approximately RMB 840 million as of December 31, 2024, due to the ongoing weakness in the Chinese real estate industry[64] Revenue Breakdown - Revenue from real estate agency services decreased to RMB 6,753,000 in 2024 from RMB 29,364,000 in 2023, representing a decline of approximately 77%[20] - Property management service revenue decreased to RMB 303,733,000 in 2024 from RMB 324,118,000 in 2023, a decline of about 6.3%[20] - Non-owner value-added services revenue decreased to RMB 13,106,000 in 2024 from RMB 18,045,000 in 2023, a decline of approximately 27.5%[20] - Professional property management services generated revenue of approximately RMB 362.3 million, a decline of 8.8% from RMB 397.4 million in the previous year, mainly due to a decrease in property management service income[49] - Community value-added services recorded revenue of approximately RMB 45.5 million, down 17.7% from RMB 55.3 million in the previous year, primarily due to reduced demand from owners[52] Impairment and Losses - The company reported a significant impairment loss of goodwill amounting to RMB 7,818,000 in 2024, which was not present in 2023[3] - Financial asset impairment losses were approximately RMB 90.1 million, a decrease of 10.9% from RMB 101.1 million in the previous year[58] - Goodwill impairment losses amounted to RMB 7.8 million, with the carrying amount of goodwill after impairment being RMB 39.8 million, a decrease of 16.4% from RMB 47.6 million in the previous year[59] - The net impairment loss on financial assets for 2023 was RMB 101,062,000, with significant losses recorded in trade receivables[32] Cash Flow and Financial Support - The company has expressed concerns regarding its ability to continue as a going concern due to significant uncertainties related to its financial position[11] - The group expects to generate positive cash flow from operations in the foreseeable future, alleviating liquidity pressure and improving financial conditions[12] - The group has confirmed financial support from its direct and indirect holding companies to ensure ongoing operations and timely debt repayment in the foreseeable future[13] - The group has implemented cost-cutting measures and capital expenditure reductions, along with comprehensive cash flow monitoring policies[13] Strategic Plans and Future Outlook - The group plans to focus on long-term value creation and sustainable development, emphasizing integrity, quality service, and operational efficiency in its future strategy[68] - The group aims to leverage existing resources and explore new opportunities rather than relying on acquisitions, aligning with its philosophy of organic growth[69] Shareholder Matters - The annual general meeting is scheduled for June 20, 2025, to discuss shareholder matters[77] - The company will suspend the transfer of shares from June 17, 2025, to June 20, 2025, to determine eligibility for attending the annual general meeting[78] - No final dividend is recommended for the year ending December 31, 2024, consistent with the previous year[79] Management Changes - Changes in executive management include the appointment of Sun Ligong as CEO and the transition of Fang Ming from non-executive to executive director[84]

Financial Performance - For the fiscal year ending December 31, 2024, the total revenue was RMB 369,101,000, a decrease of 13.5% compared to RMB 426,784,000 in 2023[3] - The gross profit for the same period was RMB 59,266,000, down 32.0% from RMB 87,034,000 in 2023[3] - The net loss for the year was RMB 79,325,000, compared to a net loss of RMB 57,112,000 in 2023, indicating a worsening financial position[3] - The company reported a basic and diluted loss per share of RMB 19.23, compared to RMB 15.15 in the previous year[4] - The company reported a loss before tax of RMB 89,332,000 for the year ending December 31, 2024, compared to a loss of RMB 67,486,000 for the previous year[24][26] - The company reported a net loss attributable to owners of the company of RMB 76,931,000 for the year ending December 31, 2024, compared to RMB 60,609,000 in the previous year[33] - The group reported a net loss of approximately RMB 79.3 million for the year ending December 31, 2024, an increase of 38.9% compared to a net loss of RMB 57.1 million in the previous year[61] - The net profit margin decreased to -21.5% from -13.4% in the previous year, primarily due to a mismatch between the decrease in service costs and revenue[60] Assets and Liabilities - The total assets decreased from RMB 367,448,000 in 2023 to RMB 245,178,000 in 2024, reflecting a decline of 33.2%[5] - The company's current liabilities exceeded current assets by RMB 28,015,000, raising concerns about its ability to continue as a going concern[11] - The total equity attributable to owners of the company fell from RMB 112,765,000 in 2023 to RMB 34,055,000 in 2024, a decrease of 69.8%[6] - The company's cash and cash equivalents decreased from RMB 88,134,000 in 2023 to RMB 64,765,000 in 2024, a decline of 26.5%[5] - As of December 31, 2024, the group's net current liabilities are approximately RMB 280 million, a decrease from net current assets of approximately RMB 713 million as of December 31, 2023[63] - Trade receivables decreased from approximately RMB 1,039 million as of December 31, 2023, to approximately RMB 840 million as of December 31, 2024, due to the ongoing weakness in the Chinese real estate industry[64] Revenue Breakdown - Revenue from real estate agency services decreased to RMB 6,753,000 in 2024 from RMB 29,364,000 in 2023, a decline of approximately 77%[20] - Property management service revenue was RMB 303,733,000 in 2024, down from RMB 324,118,000 in 2023, representing a decrease of about 6.3%[20] - Non-owner value-added services revenue decreased to RMB 13,106,000 in 2024 from RMB 18,045,000 in 2023, a decline of approximately 27.5%[20] - Revenue from the real estate agency services segment was approximately RMB 6.8 million, down 76.9% from RMB 29.4 million in the same period last year[48] - The professional property management services segment recorded revenue of approximately RMB 362.3 million, a decrease of 8.8% from RMB 397.4 million in the previous year[49] - Revenue from property management services was approximately RMB 303.7 million, down 6.3% from RMB 324.1 million in the previous year[50] - Non-owner value-added services generated revenue of approximately RMB 13.1 million, a decrease of 27.2% from RMB 18.0 million in the previous year[51] - Community value-added services recorded revenue of approximately RMB 45.5 million, down 17.7% from RMB 55.3 million in the previous year[52] Impairment and Expenses - The company recorded a goodwill impairment loss of RMB 7,818,000, which was not present in the previous year[3] - Financial asset impairment losses were approximately RMB 90.1 million, a decrease of 10.9% from RMB 101.1 million in the previous year[58] - Goodwill impairment loss was approximately RMB 7.8 million, resulting in a goodwill amount of RMB 39.8 million as of December 31, 2024, down 16.4% from RMB 47.6 million in the previous year[59] - The company incurred unallocated corporate expenses of RMB 45,557,000 for the year ending December 31, 2024, which included legal and professional fees[24] Future Outlook and Strategies - The group expects to generate positive cash flow from operations in the foreseeable future, alleviating liquidity pressure and improving financial conditions[12] - The group has confirmed financial support from its direct and indirect holding companies to ensure ongoing operations and timely debt repayments[13] - The group is actively negotiating repayment arrangements with certain suppliers, who have agreed not to demand repayment of due amounts until May 31, 2026[13] - The group has implemented cost-cutting measures and capital expenditure reductions, along with comprehensive cash flow monitoring policies[13] - The group plans to focus on long-term value creation and sustainable development, emphasizing integrity, quality service, and operational efficiency in its future strategy[68] - The group aims to leverage existing resources to explore new opportunities rather than relying on acquisitions, aligning with its philosophy of organic growth[69] Corporate Governance and Shareholder Matters - The company has undergone changes in its board of directors, with Mr. Fang Ming appointed as Executive Director and Chairman, and Mr. Sun Ligong appointed as Executive Director and CEO[84] - The annual general meeting is scheduled for June 20, 2025, to discuss shareholder matters[77] - The company does not recommend the payment of a final dividend for the year ending December 31, 2024, consistent with the previous year where no dividend was paid[79] - The company signed a share transfer agreement to sell 51% of Huizhou Fangxian Jiahe Property Service Co., Ltd. for a cash consideration of RMB 255,000, with the transaction expected to be completed by June 30, 2025[80] - The company reached a settlement arrangement for the final installment of the acquisition of 60% of Guangdong Yikang Property Service Co., Ltd., with the payment contingent on achieving profit targets for the fiscal years ending December 31, 2023[81] - The annual performance announcement for the year ending December 31, 2024, has been published on the Hong Kong Stock Exchange and the company's website[85]

Financial Performance - Revenue for the six months ended June 30, 2024, was RMB 217,595,000, an increase of 16.9% compared to RMB 186,085,000 for the same period in 2023[6] - Gross profit for the period was RMB 37,991,000, down 27.4% from RMB 52,266,000 in the previous year[6] - Loss before tax was RMB 13,313,000, an improvement from a loss of RMB 20,678,000 in the same period last year[6] - Net loss for the period was RMB 12,310,000, compared to a net loss of RMB 18,555,000 in the prior year, reflecting a 33.6% reduction in losses[6] - Basic and diluted loss per share was RMB 3.67, compared to RMB 5.73 for the same period in 2023[9] - Total comprehensive income for the period was RMB (14,780,000), compared to RMB (19,790,000) in the same period last year, showing an improvement in losses[14] - The net loss for the six months ended June 30, 2024, was approximately RMB 12.3 million, an improvement from a loss of 18.6 million in the same period of 2023[111] Assets and Liabilities - Total non-current assets amounted to RMB 111,804,000 as of June 30, 2024[10] - Current assets totaled RMB 333,450,000, indicating a strong liquidity position[10] - Current liabilities were RMB 280,144,000, resulting in a current ratio of approximately 1.19[10] - Total assets decreased from RMB 182,168,000 to RMB 165,110,000, a decline of approximately 9.4%[11] - The company's equity attributable to owners decreased from RMB 112,765,000 to RMB 97,985,000, representing a reduction of about 13.1%[11] - The total liabilities decreased from RMB 70,403,000 to RMB 66,110,000, a decrease of about 6.5%[11] - The company's non-controlling interests decreased from RMB 60,161,000 to RMB 58,679,000, a decline of approximately 2.5%[11] Cash Flow and Financing - Net cash used in operating activities was RMB (22,551,000), compared to RMB (1,536,000) in the previous year, indicating a significant increase in cash outflow[17] - Cash and cash equivalents decreased from RMB 111,801,000 to RMB 54,317,000, a drop of approximately 51.4%[17] - The company paid dividends to non-controlling interests amounting to RMB 3,845,000, up from RMB 1,200,000 in the previous year[17] - The company has extended a bank loan of approximately RMB 19,930,000 at a fixed annual interest rate of 4%[11] - The group had bank borrowings of RMB 13,739,000 as of the reporting date, with a fixed annual interest rate of 4%[90] Revenue Breakdown - Revenue from real estate agency services was RMB 5,432 thousand for the six months ended June 30, 2024, down from RMB 20,089 thousand in the same period of 2023, a decrease of approximately 73.0%[33] - Property management service revenue was RMB 152,648 thousand, a slight decrease from RMB 166,911 thousand in the same period of 2023, reflecting a decline of about 8.5%[33] - The revenue for the professional property management services segment was approximately RMB 180.7 million, a decrease of 8.5% compared to RMB 197.5 million in the same period of 2023[99] - Non-owner value-added services generated revenue of approximately RMB 8.0 million, a decrease of 25.5% from RMB 10.7 million in the same period of 2023, primarily due to financing difficulties faced by property developers[101] - Community value-added services reported revenue of approximately RMB 20.0 million, a slight increase of 0.7% from RMB 19.9 million in the same period of 2023[102] Operational Insights - The management is optimistic about future growth and is focusing on expanding service offerings and enhancing operational efficiency[6] - The company adopted a more cautious approach to undertaking additional projects due to the financial difficulties faced by property developers[98] - The company plans to implement specific strategies for different project types to enhance brand image and market competitiveness[105] Shareholder Information - Major shareholders hold 56.49% of the company's shares, with Mr. Fang and Ms. Xie each holding 225,948,000 shares[119] - Mansion Green Holdings Limited holds 97,200,000 shares, representing 24.3% of the total issued shares[120] - Aspiring Vision Holdings Limited holds 64,800,000 shares, representing 16.2% of the total issued shares[122] - Huiyu Investment Holdings Limited holds 60,000,000 shares, representing 15% of the total issued shares[122] - As of June 30, 2024, the total issued share capital of the company is 400,000,000 shares[6] Compliance and Governance - The company has complied with all corporate governance codes as of June 30, 2024[10] - The Audit Committee has reviewed the unaudited interim results for the six months ending June 30, 2024, confirming compliance with applicable accounting standards and listing rules[143]

Impairment Loss and Credit Risk - For the fiscal year ending December 31, 2023, the company's net impairment loss on financial assets was approximately RMB 101.1 million, an increase of about 987.1% compared to RMB 9.3 million for the fiscal year ending December 31, 2022[5]. - The increase in impairment loss provisions was primarily due to significant increases in impairment losses on trade receivables, amounts due from subsidiaries, and amounts due from related parties, amounting to RMB 24.2 million, RMB 56.5 million, and RMB 19.9 million respectively[5]. - The assessment of expected credit loss provisions was conducted using the simplified approach under Hong Kong Financial Reporting Standard 9, considering factors such as delays in collecting trade receivables and increased credit risk due to financial difficulties faced by property developers[5]. - As of December 31, 2023, the expected credit loss provision for trade receivables was calculated based on historical default rates and forward-looking adjustments, with a total expected loss provision amounting to RMB 142.6 million[9]. - The expected credit loss for amounts due from related parties was assessed with a total expected loss provision of RMB 65.2 million, with varying loss rates based on collateral status[11]. - The company assumes that trade receivables related to real estate agency services over two years and property management services over three years are considered 100% provisioned[11]. - As of December 31, 2023, the expected loss rate for trade receivables increased significantly compared to December 31, 2022, with overdue amounts over one year rising sharply[12]. - The expected loss rate for trade receivables is 12% for amounts overdue within one year, 26% for one to two years, 56% for two to three years, and 100% for amounts overdue over three years[16]. - The expected loss rate for receivables from related parties is 21% for unsecured amounts and 25% for related companies[18]. - The group has taken measures to recover outstanding receivables, including regular communication and legal actions, with a civil lawsuit filed for approximately RMB 14.2 million against Guangzhou Fangyuan[20]. Acquisition of Yikang - The company is currently in the process of acquiring Yikang, with updates on the acquisition status provided in the supplementary announcement[2]. - The acquisition of Guangdong Yikang Property Services Co., Ltd. involves a cash payment structure, with the third and fourth installment payments contingent on achieving profit targets for the years ending December 31, 2021, 2022, and 2023[21]. - Yikang recorded a net profit of approximately RMB 5.3 million for the year ending December 31, 2023, which is below the guaranteed profit of RMB 6,153,800[25]. - The performance commitment percentage is below 100%, meaning the company will not pay any previous installment deductions as part of the fifth installment payment[28]. - The seller has committed to ensuring that the total revenue of Yikang will not be less than approximately RMB 76 million for the fiscal years ending December 31, 2021, December 31, 2022, and December 31, 2023[29]. - The board confirms that Yikang's total revenue during the specified period has exceeded RMB 76 million, thus exempting the seller from any penalty obligations to the buyer[29]. Business Focus and Market Conditions - The company continues to focus on property management and real estate agency services as its core business areas, with ongoing assessments of market conditions and credit risks impacting its financial performance[3]. - The management has indicated that there will be no significant changes in political, legal, financial, technical, market, and economic conditions that could materially affect the company's operations[11].