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].

Financial Performance - For the year ended December 31, 2023, the total revenue of Fineland Living Services Group Limited was approximately RMB 4.268 billion, a decrease of about 16.6% compared to RMB 5.119 billion for the year ended December 31, 2022[9]. - The net profit margin decreased from 6.2% for the year ended December 31, 2022, to -13.4% for the year ended December 31, 2023, primarily due to a significant increase in impairment losses on financial assets[32]. - The group reported a net loss of approximately RMB 57.1 million for the year ended December 31, 2023, compared to a net profit of approximately RMB 31.7 million for the year ended December 31, 2022[33]. - Total revenue for the year ended December 31, 2023, was approximately RMB 426.8 million, a decrease of about 16.6% compared to RMB 511.9 million for the same period in 2022[17]. - Revenue from the comprehensive real estate agency services segment was approximately RMB 29.4 million, down 73.0% from RMB 108.7 million in 2022, primarily due to a 24.4% decline in the sales area of commercial housing in Guangdong Province[18]. - Revenue from professional property management services was approximately RMB 397.4 million, a slight decrease of 1.4% from RMB 403.2 million in 2022, with non-owner value-added services decreasing by approximately RMB 24.5 million[19]. - Total service costs for the year were approximately RMB 339.8 million, a decrease of about 17.1% from RMB 409.7 million in 2022, mainly due to a reduction in frontline staff[27]. - Administrative expenses decreased by approximately 18.0% to RMB 58.5 million from RMB 71.3 million in 2022, attributed to effective cost control measures[29]. - Financial asset impairment losses increased by approximately 987.1% to RMB 101.1 million, up from RMB 9.3 million in 2022, due to increased provisions for trade receivables and related party receivables[30]. Market Conditions - The total sales area of commercial housing reached approximately 1,117.35 million square meters, a year-on-year decrease of 8.5%, with residential sales area down by 8.2%[7]. - The Chinese real estate investment dropped to approximately RMB 11.1 trillion, reflecting a year-on-year decline of 9.6%[7]. - In 2024, the Chinese government aims for a GDP growth target of 5%, with policies expected to stimulate housing demand and boost market confidence[8]. - The company faces significant risks due to strict regulations in the real estate industry, which may adversely affect business progress[55]. - The real estate agency and property management sectors are highly competitive, potentially impacting the company's operational performance[56]. Strategic Focus and Development - The company plans to focus on business development in the Greater Bay Area and maintain closer ties with clients, particularly those with government backgrounds[13]. - The property management services segment will prioritize high-quality service and customer orientation, aiming for sustainable growth without excessive expansion[13]. - The company is enhancing internal management through standardization and cost control to achieve efficient operations and profitability[13]. - As of the end of 2023, the company has accelerated the construction of a smart community platform to improve operational efficiency and service quality[12]. - The company aims to become a leading integrated service provider in China, focusing on personalized service solutions and the introduction of new technologies[101]. Corporate Governance - The company is committed to maintaining high standards of corporate governance through the involvement of independent non-executive directors[72]. - The board of directors includes members with diverse expertise in finance, law, and education, ensuring comprehensive oversight and independent judgment[70]. - The company has established a clear governance structure in accordance with relevant laws and its own articles of association[99]. - The audit committee consists of three members, with Mr. Liang Wei Xiong serving as the chairman[90]. - The remuneration committee has been revised as of December 28, 2022, and is responsible for reviewing and determining the remuneration of directors and senior management[91]. - The nomination committee is tasked with reviewing the board's structure and composition, with Mr. Fang Ming appointed as chairman[92]. - The company has complied with all provisions of the Corporate Governance Code as of December 31, 2023[99]. Human Resources - The group had 1,736 employees as of December 31, 2023, a decrease from 2,004 employees as of December 31, 2022[42]. - The company is committed to providing a safe and comfortable working environment for employees, emphasizing training and welfare[101]. - The company encourages continuous professional development for directors, confirming the importance of ongoing training for their contributions[127]. Financial Position - As of December 31, 2023, the group's current assets net value was approximately RMB 71.3 million, down from RMB 158.3 million as of December 31, 2022[34]. - The total bank balances and cash amounted to approximately RMB 90.8 million as of December 31, 2023, compared to RMB 118.8 million as of December 31, 2022[36]. - The group’s short-term borrowings were RMB 19.4 million as of December 31, 2023, down from RMB 35.7 million as of December 31, 2022[38]. - The capital to debt ratio increased to 64% as of December 31, 2023, from 59% as of December 31, 2022[41]. - As of December 31, 2023, the company has no distributable reserves[167]. Shareholder Information - The anticipated annual general meeting will be held on June 20, 2024, with a suspension of share transfer registration from June 17 to June 20, 2024[160]. - The company has not paid any bonuses or compensation to directors or senior management as an incentive to join or as severance during the reporting period[95]. - The company has not made any charitable donations for the year ended December 31, 2023, consistent with 2022[162]. - The company has not disclosed any new product or technology developments in the provided documents[158]. Transactions and Acquisitions - The acquisition of 51% equity in Ziyanghong resulted in a verified net profit of approximately RMB 4.9 million, exceeding the target profit for the year ended December 31, 2023[47]. - The acquisition of 60% equity in Yikang is expected to not meet the guaranteed profit of RMB 6,153,800 for the year ended December 31, 2023, which may result in a deduction from the payment due[49]. - The company completed the acquisition of approximately 66.31% of the equity in Fangyuan Modern Life on January 28, 2021, and signed two main property management service agreements[197]. - The company has established a main property management service agreement with Fangyuan Group Holdings, effective until December 31, 2023, to provide property management services[199]. - The company has entered into a property management service agreement with Mr. Fang, effective from January 1, 2024, to December 31, 2026[200].

Financial Performance - The total revenue for the year ended December 31, 2023, was RMB 426,784,000, a decrease of 16.67% compared to RMB 511,945,000 in 2022[4] - Gross profit for the same period was RMB 87,034,000, down 14.87% from RMB 102,265,000 in the previous year[4] - The net loss for the year was RMB 57,112,000, compared to a profit of RMB 31,712,000 in 2022, indicating a significant decline in profitability[5] - The total comprehensive loss for the year was RMB 57,583,000, compared to a comprehensive income of RMB 27,817,000 in the prior year[5] - Basic and diluted loss per share was RMB 15.15, compared to earnings of RMB 4.54 per share in 2022[5] - The overall revenue for the company decreased by 22.0% from RMB 511,945 thousand in 2022 to RMB 426,784 thousand in 2023[36] - The company reported a loss before tax of RMB 67,486,000, which includes unallocated corporate expenses of RMB 56,638,000[42] - The group reported a net loss of approximately RMB 57.1 million for the year ended December 31, 2023, compared to a net profit of approximately RMB 31.7 million for the year ended December 31, 2022[91] Revenue Breakdown - Real estate agency service revenue for 2023 was RMB 29,364 thousand, a decrease of 73.0% compared to RMB 108,713 thousand in 2022[36] - Property management service revenue increased to RMB 324,118 thousand in 2023, up 6.7% from RMB 303,663 thousand in 2022[36] - Non-owner value-added services revenue decreased to RMB 18,045 thousand in 2023, down 57.5% from RMB 42,540 thousand in 2022[36] - Community value-added services revenue increased to RMB 54,356 thousand in 2023, up 5.4% from RMB 51,517 thousand in 2022[36] - Sales of goods revenue decreased to RMB 901 thousand in 2023, down 70.6% from RMB 3,067 thousand in 2022[36] - Software service revenue was recorded at RMB 0 in 2023, compared to RMB 2,445 thousand in 2022[36] - The professional property management services segment recorded revenue of approximately RMB 397.4 million for the year ended December 31, 2023, a slight decrease of 1.4% compared to RMB 403.2 million for the year ended December 31, 2022[77] Asset and Liability Changes - Total assets decreased to RMB 182,168,000 from RMB 254,871,000 in the previous year, reflecting a decline in financial position[7] - Current liabilities decreased slightly to RMB 296,123,000 from RMB 318,967,000 in 2022[7] - Non-current liabilities decreased from RMB 17,364 thousand in 2022 to RMB 9,242 thousand in 2023, representing a reduction of 46.8%[8] - Net asset value decreased from RMB 237,507 thousand in 2022 to RMB 172,926 thousand in 2023, a decline of 27.2%[8] - Total equity decreased from RMB 237,507 thousand in 2022 to RMB 172,926 thousand in 2023, reflecting a decrease of 27.2%[8] - The company's reserves dropped from RMB 169,839 thousand in 2022 to RMB 109,362 thousand in 2023, a decrease of 35.6%[8] - Trade receivables increased to RMB 142,599 million in 2023 from RMB 121,423 million in 2022, with a decrease in impairment losses from RMB 14,495 million to RMB 38,651 million[62] Impairment and Losses - The company reported a significant increase in financial asset impairment losses, totaling RMB 101,062,000 compared to RMB 9,302,000 in the previous year[4] - The net impairment loss on financial assets was RMB 101,062,000, with RMB 48,410,000 related to property management services and RMB 52,652,000 to real estate agency services[45] - The net impairment losses on financial assets amounted to approximately RMB 101.1 million, an increase of approximately 987.1% from RMB 9.3 million for the year ended December 31, 2022[87] Future Outlook and Strategy - The company plans to focus on market expansion and new product development to improve future performance[3] - The group aims to expand its services nationwide, focusing on property management services as a core strategy[73] - The group plans to focus on business development in the Greater Bay Area and strengthen connections with clients, particularly those with government backgrounds[100] - The outlook for 2024 emphasizes the importance of stabilizing the real estate market and implementing favorable policies to boost market confidence[99] Corporate Governance and Audit - The audit committee was established on October 23, 2017, and has three members, including Mr. Leung Wai Hung as the chairman[106] - The external auditor, Hong Kong Lixin Dehao CPA Limited, confirmed that the financial figures in the consolidated financial statements for the year ended December 31, 2023, are consistent with the audited financial statements[108] Dividends and Share Transactions - The company does not recommend the payment of a final dividend for the year ended December 31, 2023, compared to zero in 2022[110] - A share transfer agreement was signed on January 24, 2024, for the sale of 60,000,000 shares, representing 15.00% of the company's issued share capital, for a cash consideration of HKD 4,998,000[117] - Aspiring Vision Holdings Limited agreed to transfer 30% equity in Mansion Green in exchange for 64,800,000 shares, representing 16.20% of the total issued share capital[118]

Financial Performance - For the six months ended June 30, 2023, the group recorded revenue of approximately RMB 217.6 million, a decrease of 21.7% compared to RMB 277.8 million for the same period in 2022[7]. - The group reported a loss attributable to owners of the company of approximately RMB 22.9 million, compared to a profit of RMB 9.8 million for the same period in 2022, primarily due to a significant increase in financial asset impairment losses of approximately RMB 46.9 million[7]. - Gross profit for the six months ended June 30, 2023, was RMB 52.3 million, down 15.8% from RMB 62.1 million in the same period of 2022[9]. - Basic and diluted loss per share for the six months ended June 30, 2023, was RMB 5.73, compared to earnings of RMB 2.44 per share in the same period of 2022[9]. - The company reported a comprehensive loss of RMB 24,146 thousand for the period, compared to a comprehensive income of RMB 7,968 thousand in the previous year[11]. - The net profit margin dropped to -8.5% for the six months ended June 30, 2023, compared to 6.3% for the same period in 2022, primarily due to the substantial increase in net impairment losses[80]. Revenue Breakdown - For the six months ended June 30, 2023, the total revenue was RMB 217,595 thousand, with real estate agency services contributing RMB 20,089 thousand and property management services contributing RMB 197,506 thousand[20]. - Revenue from real estate agency services for the six months ended June 30, 2023, was RMB 20,089,000, down from RMB 77,282,000 in the same period of 2022, representing a decline of approximately 74%[27]. - Property management service revenue increased to RMB 166,911,000 for the six months ended June 30, 2023, compared to RMB 148,356,000 in the same period of 2022, reflecting a growth of about 12.5%[27]. - Revenue from the integrated real estate agency services segment was approximately RMB 20.1 million, a decrease of 74.0% compared to RMB 77.3 million in the same period of 2022[69]. - Revenue from the professional property management services segment was approximately RMB 197.5 million, a slight decrease of 1.5% compared to RMB 200.5 million in the same period of 2022[71]. Impairment and Losses - The financial asset impairment loss for the six months ended June 30, 2023, was RMB 46.9 million, a significant increase from RMB 7.0 million in the same period of 2022[9]. - The net impairment loss on financial assets increased significantly to approximately RMB 46.9 million, up about 570.0% from RMB 7.0 million in the previous year, mainly due to increased provisions for trade receivables and related party receivables[79]. - The impairment loss on trade receivables was RMB 21,141 as of June 30, 2023, compared to RMB 14,495 as of December 31, 2022, indicating a significant increase in credit risk[39]. - The impairment loss on receivables from related companies increased to RMB 24,467 as of June 30, 2023, from RMB 1,723 as of December 31, 2022[43]. Cash and Assets - The company’s cash and cash equivalents were RMB 111.8 million as of June 30, 2023, compared to RMB 117.7 million as of December 31, 2022[10]. - Total assets less current liabilities amounted to RMB 226.6 million as of June 30, 2023, down from RMB 254.9 million as of December 31, 2022[10]. - The net current assets decreased to RMB 127.8 million as of June 30, 2023, compared to RMB 158.3 million as of December 31, 2022[10]. - Total cash and cash equivalents as of June 30, 2023, amounted to RMB 111,801,000, down from RMB 117,684,000 as of December 31, 2022, with restricted cash increasing from RMB 1,153,000 to RMB 3,448,000[50]. Dividends and Share Capital - The board of directors did not recommend the payment of any dividends for the six months ended June 30, 2023, consistent with the previous year[7]. - The issued share capital remained at 400,000,000 shares, with a total value of RMB 3,403,000 as of June 30, 2023[53]. - The company did not declare any dividends for the six months ended June 30, 2023, consistent with the previous period[32]. Strategic Focus and Adjustments - The company plans to shift its strategic focus towards the property management services segment due to significant declines in revenue from real estate agency services[65]. - The number of employees decreased to approximately 1,869 as of June 30, 2023, down from 2,121 a year earlier, due to strategic adjustments for management efficiency and cost-effectiveness[87]. Corporate Governance - The audit committee reviewed the unaudited interim results for the six months ending June 30, 2023, and found them compliant with applicable accounting standards[107]. - The company has complied with all provisions of the corporate governance code as of June 30, 2023[102]. - No conflicts of interest or competitive businesses were reported by directors or major shareholders during the six months ending June 30, 2023[106].

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FinelandRealEstateServicesGroupLimited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） 年中期業績公告 2023 方圓生活服務集團有限公司（「本公司」）董事（「董事」）會（「董事會」）欣然宣 佈本公司及其附屬公司（統稱「本集團」）截至2023年6月30日止六個月之未經 審核簡明綜合財務業績。本公告列載本集團2023年中期報告全文（「2023年 中期報告」），乃符合香港聯合交易所有限公司（「聯交所」）證券上市規則中 有關中期業績初步公告附載的資料之相關要求。本公司將於適當時候發送 2023年中期報告的印刷本予本公司股東，並將於本公司及聯交所網站可供 查閱。 承董事會命 方圓生活服務集團有限公司 ...

Financial Performance - In 2022, the total revenue of Fineland Living Services Group Limited was approximately RMB 5.119 billion, a decrease of about 10.4% compared to RMB 5.714 billion in 2021[7]. - The revenue from the real estate agency services segment significantly dropped by RMB 1.551 billion to RMB 1.087 billion, partially offset by an increase of RMB 957 million in the property management services segment[7]. - Total revenue for the year ended December 31, 2022, was approximately RMB 511.9 million, a decrease of about 10.4% compared to RMB 571.4 million for the same period in 2021[17]. - Revenue from the integrated real estate agency services segment was approximately RMB 108.7 million, a sharp decline of 58.8% from RMB 263.9 million in 2021, primarily due to decreased confidence in the real estate market[18]. - Professional property management services recorded revenue of approximately RMB 403.2 million, an increase of 31.1% from RMB 307.6 million in 2021, mainly due to acquisitions[19]. - Property management services generated revenue of approximately RMB 303.7 million, a 47.0% increase from RMB 206.6 million in 2021, attributed to acquisitions[20]. - The company achieved a net profit margin of 6.2% for the year ended December 31, 2022, up from 5.1% in 2021, primarily due to reduced administrative expenses[29]. - The company reported a profit of approximately RMB 31.7 million for the year ended December 31, 2022, compared to RMB 29.3 million in 2021[30]. Strategic Initiatives - The company has strategically shifted resources from real estate agency services to property management services, closing most agency sales offices to enhance management efficiency[10]. - The company aims to leverage synergies between real estate agency and property management services to improve customer satisfaction and profitability[12]. - The company plans to continue expanding its value-added services that complement existing offerings to ensure a robust financial position and create value for stakeholders[12]. - The company plans to focus on business development in the Greater Bay Area and strengthen relationships with reputable clients while optimizing cost control and managing credit risks[51]. - The property management division aims for moderate expansion, particularly in urban services and value-added services, while enhancing internal management through standardization and professional development[52]. - The company will explore diversified, personalized, and profitable business models to capture opportunities arising from increased market confidence[51]. Market Conditions - Real estate investment in China reached RMB 13.3 trillion in 2022, a year-on-year decline of 10.0%, with residential sales area decreasing by 26.8%[7]. - The Chinese government set a GDP growth target of 5% for 2023, with expectations of a rebound in the real estate sector contributing to economic growth[6]. - In February, numerous cities recorded a double-digit month-on-month increase in housing transaction volumes, indicating a recovery in market confidence and an improved credit environment[51]. Governance and Compliance - The company has adhered to all provisions of the Corporate Governance Code as of December 31, 2022[90]. - The board has established a clear governance structure, including the roles of the audit committee, remuneration committee, and nomination committee[90]. - The company has received annual written confirmations from independent non-executive directors regarding their independence[94]. - The board is responsible for maintaining appropriate accounting records to disclose the financial position of the group accurately[94]. - The company has established a governance framework to review and update its corporate governance policies and practices[123]. Risk Management - The company faces significant risks from regulatory changes in the real estate industry, which could adversely affect its business and financial performance[48]. - The company is subject to potential impacts from natural disasters and widespread health epidemics, which could disrupt its operations and financial stability[50]. - The company has established an internal risk management process to identify, assess, and manage major risks, with the board responsible for maintaining an effective system[125]. - As of December 31, 2022, the board believes the risk management and internal control system is sufficient and effective, with no significant issues raised by the audit committee[126]. Employee and Director Information - The company had a total of 2,004 employees as of December 31, 2022, compared to 2,071 employees in the previous year[36]. - Total remuneration paid to directors for the year ended December 31, 2022, was approximately RMB 3.9 million, an increase from RMB 3.0 million in 2021[87]. - The company emphasizes the importance of continuous professional development for directors, ensuring they receive relevant training and support[119]. Shareholder Information - The company has a significant ownership concentration, with the largest shareholder holding 55.5% of the shares[161]. - The company confirms compliance with the disclosure requirements under Chapter 14A of the listing rules regarding related party transactions[176]. - The company has maintained compliance with public float requirements as of December 31, 2022[192]. Future Outlook - The company provided guidance for the next quarter, expecting revenue to be between $A million and $B million, indicating a growth rate of C%[64]. - The company provided guidance for the next fiscal year, projecting revenue growth of 25% and aiming for $625 million[80].

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） 2022年 年 度 業 績 公 告 方 圓 生 活 服 務 集 團 有 限 公 司（「本 公 司」）董 事（「董 事」）會（「董 事 會」）欣 然 宣 佈 本 公 司 及 其 附 屬 公 司（統 稱「本 集 團」）截 至2022年12月31日 止 年 度 之 經 審 核 綜 合 財 務 業 績。本 公 告 列 載 本 集 團2022年 年 度 報 告 全 文，乃 符 合 香 港 聯 合 交 易 所 有 限 公 司（「聯 交 所」）證 券 上 市 規 則 中 有 關 年 度 業 績 初 步公告附載的資 ...

Financial Performance - For the six months ended June 30, 2022, the group recorded revenue of approximately RMB 277.8 million, an increase of 5.4% compared to RMB 264.4 million for the same period in 2021[10] - The profit attributable to owners of the company for the same period was approximately RMB 9.8 million, a decrease of 11.7% from RMB 11.1 million in the prior year[10] - Gross profit for the period was RMB 62.1 million, representing a gross margin of 22.4%, compared to RMB 53.9 million and a gross margin of 20.4% in the prior year[13] - The total comprehensive income for the period was RMB 15,646 thousand, which includes a profit of RMB 9,755 thousand attributable to owners of the company[16] - The company reported a profit before tax of RMB 17,800,000 for the six months ended June 30, 2022, compared to RMB 23,996,000 in the same period of 2021[34] - Earnings attributable to owners of the company for the six months ended June 30, 2022, were RMB 9,755,000, down from RMB 11,090,000 in the previous year[46] - The adjusted profit before tax was RMB 17,787 thousand after accounting for fair value losses on contingent consideration and unallocated corporate expenses[32] Revenue Breakdown - For the six months ended June 30, 2022, the total revenue was RMB 277,785 thousand, with RMB 77,282 thousand from real estate agency services and RMB 200,503 thousand from property management services[32] - Real estate agency service revenue decreased to RMB 77,282,000, down 43% from RMB 135,635,000 in the prior year[40] - Property management service revenue increased significantly to RMB 148,356,000, up 73% from RMB 85,547,000 in the previous year[40] - Revenue from the integrated real estate agency services segment was approximately RMB 77.3 million, a decrease of 43.0% from RMB 135.6 million in the same period of 2021, attributed to market conditions[88] - Revenue from the professional property management services segment was approximately RMB 200.5 million, an increase of 55.7% from RMB 128.7 million in the same period of 2021[89] - Non-owner value-added services revenue was approximately RMB 24.1 million, up 23.3% from RMB 19.6 million year-on-year[96] - Community value-added services generated revenue of about RMB 25.6 million, reflecting an increase of approximately 8.3% from RMB 23.6 million in the previous year[97] Assets and Liabilities - Total assets as of June 30, 2022, amounted to RMB 676.0 million, an increase from RMB 623.5 million as of December 31, 2021[14] - The company's net current assets increased to RMB 155.8 million from RMB 143.0 million at the end of the previous year, indicating improved liquidity[14] - As of June 30, 2022, the company's current liabilities amounted to RMB 489,000, while non-current liabilities were RMB 1,071,000, totaling RMB 1,560,000, a decrease from RMB 3,988,000 in the previous year[50] - The total equity attributable to owners of the company rose to RMB 166.9 million from RMB 158.8 million, reflecting a solid capital base[14] - The total equity increased to RMB 226,261 thousand as of June 30, 2022, from RMB 205,050 thousand at the beginning of the year[16] - The debt-to-capital ratio was 59% as of June 30, 2022, compared to 55% at the end of 2021[111] Cash Flow - The net cash used in operating activities was RMB (37,599) thousand, an improvement from RMB (70,245) thousand in the same period last year[17] - The net cash generated from financing activities was RMB 38,142 thousand, compared to RMB (6,813) thousand in the previous year, indicating a positive shift in financing[17] - The company reported a decrease in cash and cash equivalents by RMB 16,079 thousand, ending the period with RMB 74,301 thousand[17] - The company’s cash flow from investment activities was RMB (16,622) thousand, a significant decrease from RMB 35,156 thousand generated in the previous year[17] Acquisitions and Investments - The company acquired non-controlling interests amounting to RMB 65 thousand during the period[16] - The acquisition of Guangdong Yikang Property Service Co., Ltd. for 60% equity was completed for a cash consideration of RMB 17,199,000, with a contingent consideration of up to RMB 5,793,000 based on profit targets[75] - The acquisition of Jun Cheng Fang Yuan Property Service Co., Ltd. for 51% equity was completed for a cash consideration of RMB 5,100,000[76] - The identifiable net assets of Yikang and Jun Cheng at acquisition were valued at RMB 17,575,000, with goodwill generated amounting to RMB 18,348,000[78] - Total revenue contribution from Yikang and Jun Cheng during the period was RMB 18,328,000, with a profit contribution of RMB 2,280,000[80] Operational Metrics - The company experienced a foreign exchange loss of RMB (1,787) thousand related to the translation of overseas operations[16] - The company reported trade payables of RMB 74,133,000 due within one year as of June 30, 2022, compared to RMB 56,033,000 in the previous year, reflecting an increase of 32.3%[65] - The company recorded additional provisions for expected credit losses on trade receivables amounting to RMB 6,281,000 for the first half of 2022, compared to RMB 2,446,000 in the same period of 2021, marking an increase of 156.5%[55] - The impairment loss on trade receivables was RMB 15,780,000 for the first half of 2022, up from RMB 9,499,000 in the same period of 2021, indicating a rise of 66.5%[53] Market Conditions and Challenges - The company noted that the real estate market in China experienced unprecedented challenges due to sporadic outbreaks of COVID-19, with a significant decline in commercial property sales[85] - The ongoing COVID-19 pandemic presents uncertainties that may disrupt business operations and lead to short-term labor shortages[117] - The real estate agency and property management businesses are facing intense competition, with some competitors having stronger resources and longer business relationships[115] - The company may face adverse impacts from natural disasters or widespread health epidemics, affecting its business and financial performance[116] Corporate Governance - The board of directors did not recommend the payment of an interim dividend for the six months ended June 30, 2022, consistent with the previous year[10] - The company has adopted a code of conduct for securities trading in compliance with the listing rules[118] - The audit committee reviewed the unaudited condensed consolidated financial results for the six months ended June 30, 2022, and found them compliant with applicable accounting standards[136] - The company has complied with all code provisions of the Corporate Governance Code during the six months ended June 30, 2022[132] - No material events affecting the company occurred after June 30, 2022, up to the report date[139]

Financial Performance - In 2021, Fineland Living Services Group Limited achieved total revenue of approximately RMB 571.4 million, an increase of about 106.5% compared to RMB 276.7 million in 2020[7]. - The total revenue for the year ended December 31, 2021, was approximately RMB 571.4 million, an increase of about 106.5% compared to RMB 276.7 million for the same period in 2020, primarily due to acquisitions[21]. - The revenue from the professional property management services segment was approximately RMB 307.6 million, contributing significantly to the overall revenue growth[23]. - The revenue from non-owner value-added services was approximately RMB 48.2 million, while community value-added services generated about RMB 46.4 million, both being new business lines introduced in 2021[26][27]. - The group achieved a profit of approximately RMB 29.3 million for the year ended December 31, 2021, compared to approximately RMB 11.7 million for the same period in 2020[36]. - The net profit margin increased to 5.1% for the year ended December 31, 2021, compared to 4.2% for the previous year, driven by business expansion and significant gross profit growth[33]. - The company reported a significant increase in property sales, with a year-on-year growth of 25% in revenue for the fiscal year 2021[86]. Acquisitions and Expansion - The company completed the acquisition of approximately 66.31% of Guangzhou Fineland Modern Living Services Co., Ltd., expanding its property management services[8]. - In 2021, the company also acquired 51% of Changsha Jiyanghong Property Management Co., Ltd., entering the Hunan market[8]. - The acquisition of Guangzhou Fangheng Information Technology Co., Ltd. was completed in July 2021, enhancing the company's capabilities in smart community services[12]. - The company completed the acquisition of approximately 66.31% equity in Guangzhou Leguan Investment Co., Ltd. for a cash consideration of RMB 68,000,000[46]. - The company acquired all equity of Fangheng Technology for a cash consideration of RMB 4,500,000, making it a wholly-owned subsidiary[46]. - The company entered into an agreement to acquire 51% equity in Ziyanghong for a cash consideration of RMB 24,745,000, with performance targets set for the years ending December 31, 2021, 2022, and 2023[47]. - The acquisition of Yikang was completed in February 2022, and its financial performance will be consolidated into the group's financial statements[65]. Market Overview - Real estate investment in China reached RMB 14.8 trillion in 2021, with a year-on-year growth of 4.4%[7]. - The total sales area of commercial housing in China was 1,794.33 million square meters in 2021, with a year-on-year growth of 1.9%[7]. - The sales revenue of commercial housing reached RMB 18.2 trillion in 2021, an increase of 4.8% year-on-year[7]. - Preliminary estimates indicate that China's GDP for 2021 is approximately RMB 114.4 trillion, representing an 8.1% increase from 2020, with an average growth rate of 5.1% over two years[63]. - The government is expected to maintain relaxed real estate policies throughout the year to support developers and homebuyers, mitigating financial risks[63]. - The company operates in a highly regulated real estate market, which may impact its business due to government policies affecting property market growth[57]. Employee and Operational Growth - The number of employees increased to 2,071 as of December 31, 2021, from 687 employees as of December 31, 2020, reflecting the company's growth and expansion[42]. - The service costs for the year were approximately RMB 432.8 million, an increase of about 91.1% compared to RMB 226.5 million for the previous year, mainly due to rising employee benefits and operational costs[30]. - The company has implemented various measures to ensure employee health and safety during the COVID-19 pandemic, with limited additional costs expected[55]. Governance and Compliance - The company has established a clear governance structure, ensuring compliance with the corporate governance code as of December 31, 2021[107]. - The Audit Committee, established on October 23, 2017, is responsible for reviewing and supervising the financial reporting process and internal control systems[98]. - The Remuneration Committee is tasked with reviewing and determining the remuneration packages for directors and senior management[99]. - The Nomination Committee is responsible for reviewing the board structure and diversity policies, providing recommendations for director appointments[101]. - The company has adopted a code of conduct for directors regarding securities trading, ensuring compliance with relevant regulations[108]. - The company has established internal risk management processes to identify, assess, and manage major risks, with the board responsible for maintaining an effective risk management and internal control system[147]. Shareholder Engagement - The company aims to enhance transparency and deepen shareholder understanding of its business development[162]. - The company encourages shareholders to attend all general meetings and provides communication channels for feedback[162]. - Shareholders have the right to request the board to convene a special general meeting if they hold at least 10% of the paid-up capital with voting rights[153]. Future Outlook - The company plans to continue focusing on business development in the Greater Bay Area, expanding market coverage by undertaking more projects in cities where it has successfully entered[64]. - Future outlook remains positive, with management confident in achieving long-term growth targets amidst market challenges[72]. - The company has set a revenue guidance of approximately HKD 1.5 billion for the next fiscal year, reflecting a projected growth of 20%[86]. Risk Factors - The group's business may be adversely affected by natural disasters, widespread infectious diseases, or other epidemics, impacting overall economic and social conditions in the Greater Bay Area and other cities in South China[59]. - The real estate agency and property management sectors are highly competitive, potentially affecting the company's business performance and financial condition[58]. - The management team emphasizes a focus on risk management, with new protocols implemented to mitigate potential market volatility[86].