Company Overview - As of June 30, 2024, Central China New Life Limited is the largest property management service provider in central China by total gross floor area under management and total revenue for the six months ended June 30, 2024[50]. - The company serves over 2.6 million property owners and residents across 1,105 properties, covering all 18 prefecture-level cities in Henan and extending to provinces such as Shanxi, Hebei, Hunan, Xinjiang, and Hainan[50]. - The diversified portfolio managed includes residential and commercial properties, office buildings, gyms, special towns, rural complexes, schools, hospitals, parks, and industrial parks[50]. - The company was incorporated on October 16, 2018, and listed on the Main Board of The Stock Exchange of Hong Kong Limited on May 15, 2020[50]. - The company aims to enhance living quality and lifestyle for residents in Henan through its established brand and comprehensive service offerings[50]. Financial Performance - For the six months ended June 30, 2024, the Group achieved revenue of RMB 1,482.9 million and recorded a net profit of RMB 109.2 million, with a core net profit attributable to shareholders decreasing by approximately 27.6% to RMB 148.4 million compared to RMB 205.0 million in the same period last year[57]. - Revenue for the six months ended 30 June 2024 was RMB 1,482.9 million, a 9.6% increase from RMB 1,353.3 million in the same period of 2023[78]. - Net profit for the period was RMB 109.2 million, compared to a net loss of RMB 298.9 million for the corresponding period in 2023[85]. - Core net profit attributable to shareholders decreased by approximately 27.6% to RMB 148.4 million, down from RMB 205.0 million in the same period last year[85]. - The gross profit margin decreased to 22.8% in 2024 from 28.1% in 2023, reflecting an 11.0% decline in gross profit[78]. Market Position and Strategy - Central China New Life Limited has been ranked 11th among the Top 100 Property Management Companies in China for four consecutive years since 2021[50]. - The Group's competitive edge lies in its extensive network of goods and services, deep understanding of market demands, and capabilities in data analytics[54]. - The property management industry is expected to benefit from new development opportunities as China transitions to high-quality development, with government guidelines promoting service consumption growth[58]. - The Group aims to continuously refine its offerings to better satisfy customer needs through strong resource consolidation and online-to-offline synergy[54]. - The Group plans to focus on high-potential niche segments and allocate resources efficiently in the lifestyle service sector[67]. Service Quality and Customer Engagement - The company is committed to providing a full spectrum of services to meet diverse customer needs[50]. - The management emphasizes the importance of a trusted brand in sustaining business growth and customer satisfaction[50]. - The Group aims to enhance customer satisfaction and loyalty through service innovation and a strengthened customer feedback mechanism[67]. - A total of 5,010 community activities were held, with 475,189 participants, representing an 85% increase compared to the first half of 2023[66]. Operational Efficiency and Growth - The Group's operations have been positively impacted despite disturbances from industry policies, market environment, and public sentiment[58]. - The Group's internal management reforms have optimized operational processes and improved team professional competence[64]. - The Group is focusing on enhancing service quality and compliance for sustainable operations in the second half of 2024[96]. - The Group aims to deepen multi-industry development and strengthen value-added service innovation, particularly in non-residential areas such as commercial complexes and hospitals[97]. Employee Management and Incentives - The company has established a performance-oriented compensation incentive mechanism to enhance employee motivation and creativity[151]. - The company emphasizes the importance of professional ethics and work capability in talent management, aiming for sustainable development[152]. - The company has implemented a clear promotion pathway for employees, tailored to individual strengths and strategic development directions[152]. - The company actively encourages employees to participate in various continuing education programs to enhance their overall capabilities[152]. Share Options and Corporate Governance - The Pre-IPO Share Option Scheme was conditionally adopted on April 29, 2020, to incentivize eligible participants for their contributions to the Group[162]. - The Post-IPO Share Option Scheme was conditionally adopted on April 29, 2020, and was terminated on August 7, 2023, with immediate effect[187]. - The maximum number of Shares that may be issued upon exercise of all options under the scheme must not exceed 10% of the total number of Shares in issue as of the Listing Date, which is 120,000,000 Shares[191].

Financial Performance - For the six months ended June 30, 2024, revenue was RMB 1,482.9 million, an increase of 9.6% compared to RMB 1,353.3 million for the same period in 2023[2] - Net profit for the six months ended June 30, 2024, was RMB 109.2 million, a significant recovery from a net loss of RMB 298.9 million in the same period of 2023[2] - The profit attributable to shareholders for the six months ended June 30, 2024, was RMB 103.4 million, compared to a loss of RMB 299.6 million in the same period of 2023[2] - The company reported a basic earnings per share of RMB 0.08 for the six months ended June 30, 2024, recovering from a basic loss per share of RMB 0.23 in the same period of 2023[5] - The core net profit for the six months ended June 30, 2024, was RMB 148.4 million, down from RMB 205.0 million in the same period of 2023[2] - The company's net profit attributable to shareholders for the six months ended June 30, 2024, was RMB 103,394,000, compared to a net loss of RMB (299,610,000) in the same period of 2023[25] - Basic earnings per share for the six months ended June 30, 2024, was RMB 0.08, a recovery from a loss of RMB (0.23) per share in the same period of 2023[25] - The net profit for the period was RMB 109.2 million, compared to a net loss of RMB 298.9 million in the same period last year, resulting in a net profit margin of 7.4%[62] Assets and Liabilities - The total assets as of June 30, 2024, amounted to RMB 5,437.3 million, an increase from RMB 4,851.1 million as of December 31, 2023[6] - The group reported total liabilities of RMB 3,444,189 thousand as of June 30, 2024, an increase of 28.1% from RMB 2,688,729 thousand as of December 31, 2023[7] - The total equity attributable to shareholders decreased to RMB 1,993.1 million as of June 30, 2024, from RMB 2,162.3 million as of December 31, 2023[6] - The total equity and liabilities amounted to RMB 5,437,281 thousand as of June 30, 2024, compared to RMB 4,851,078 thousand as of December 31, 2023, indicating a growth of 12.0%[7] - As of June 30, 2024, the company’s total liabilities amounted to RMB 1,670,744,000, an increase from RMB 1,385,557,000 as of December 31, 2023[39] Revenue Breakdown - Property management and related services generated revenue of RMB 1,228,345 thousand, up from RMB 1,041,819 thousand, reflecting a growth of 17.9% year-on-year[14] - Revenue from goods sold reached RMB 154,229 thousand, an increase of 29.6% from RMB 118,960 thousand in the previous year[14] - The group’s income from installation and decoration services decreased to RMB 52,769 thousand from RMB 111,643 thousand, a decline of 52.8% year-on-year[14] - Community value-added service revenue decreased by 1.2% to RMB 294.2 million, primarily due to a decline in the number of handovers affecting smart community solution income[49] - Non-owner value-added service revenue fell by 47.5% to RMB 55.2 million, attributed to proactive adjustments in business scale based on receivables recovery[50] Expenses and Costs - The total expenses for the six months ended June 30, 2024, were RMB 1,252,351,000, an increase of 17.7% from RMB 1,064,451,000 in the same period of 2023[18] - Employee benefits expenses increased to RMB 301,848,000 for the six months ended June 30, 2024, up 13.3% from RMB 266,414,000 in the same period of 2023[18] - Administrative expenses for the period amounted to RMB 97.7 million, an increase of 19.8% compared to RMB 81.6 million in the same period last year, representing approximately 6.6% of the group's revenue, up 0.6 percentage points year-on-year[57] - Sales and marketing expenses were RMB 9.5 million, a 3.1% increase from RMB 9.3 million in the previous year, accounting for approximately 0.6% of revenue[56] Dividends - The company proposed an interim dividend of HKD 0.1059 per share, expected to be paid from the company's share premium account[2] - The interim dividend for the six months ended June 30, 2024, was declared at HKD 0.1059 per share, an increase from HKD 0.0871 per share for the same period in 2023[40] - The company declared a special dividend of HKD 0.241 per share, totaling approximately HKD 313,427,000 (equivalent to RMB 286,058,000) for the year ended December 31, 2023[40] Strategic Focus and Development - The company is focusing on diversifying its service offerings, particularly in community value-added services, to enhance customer satisfaction and service value[42] - The company plans to deepen its multi-faceted development strategy, expanding into non-residential areas such as commercial complexes, office buildings, and urban services[44] - The company aims to innovate its value-added service models, enhancing services in elderly care, catering, and housekeeping to meet growing resident demands[44] - The company is committed to improving service quality by adhering to ISO9000 standards and enhancing the cultural atmosphere within its communities[45] - The company is shifting its focus from acquisitions and expansion to promoting organic growth and enhancing customer experience due to uncertainties in the Chinese real estate market[72] Technology and Innovation - The company plans to allocate 25.0% of the unutilized net proceeds to enhance the Jianye+ platform and optimize user experience[75] - The company aims to invest 15.0% of the unutilized net proceeds in advanced information technology systems to improve management efficiency[77] - The company is committed to optimizing user interface design and backend data systems based on user needs and usage habits[75] Governance and Compliance - The board has confirmed compliance with the corporate governance code and has maintained a stable and reasonable governance system throughout the reporting period[89] - The audit committee has reviewed the unaudited interim consolidated financial statements for the six months ended June 30, 2024, confirming the group's performance during this period[94] Employee and Organizational Structure - The company has 5,320 employees as of June 30, 2024, and is continuing to streamline its organizational structure to enhance overall efficiency and responsiveness[87] - The company has adopted a performance-based compensation mechanism to closely link employee performance with remuneration, enhancing motivation and creativity[88]

Share Incentive Plan - The company adopted a 2023 share incentive plan and granted incentive shares to several directors and employees[2] - The total number of incentive shares granted in 2023 amounted to 21.8 million shares, representing 1.71% of the weighted average number of shares issued during the year[15] - The share grants were approved by shareholders on August 7, 2023[6] - The incentive shares granted to Mr. Wang Jun totaled 6 million shares, while Mr. Shi Shushan received 3 million shares[4] - Ms. Li Lin was granted 1.5 million shares, and Ms. Dai Jiling received 1 million shares[12] - The purchase price for all incentive shares listed in the table is zero[19] Performance Targets - The performance targets for the incentive shares include achieving key financial indicators, ensuring no significant cash outflow for the group[3] - The company will not incur any significant cash outflow related to the incentive shares[3] Governance and Oversight - The company’s board of directors includes both executive and independent non-executive directors, ensuring diverse governance[15] - The 2023 share incentive plan has been approved by the compensation committee, aiming to align the interests of eligible participants with the group's long-term development and profitability[16] Vesting Period - The minimum vesting period for the share incentive plan is generally set at 12 months, with potential shorter vesting periods in line with the exchange's guidelines[16] Share Availability - As of January 1, 2023, the number of shares available for grant under the plan was zero, while it increased to 106,072,600 shares by December 31, 2023[20] Fairness and Reasonableness - The company emphasizes that the 2023 incentive shares are fair and reasonable, aligning with the long-term interests of the company and its shareholders[3] - The share incentive plan does not apply to any related entities or service providers[14] Compensation Disclosure - Among the five highest-paid individuals, three are directors, and their incentive shares have been disclosed[21]

Financial Reporting Delays - The company is experiencing delays in publishing its annual results for the year ending December 31, 2023, primarily due to the need for additional information from its auditor regarding expected credit losses related to receivables from Jianye Real Estate[3]. - The expected credit loss assessment requires additional supporting information due to the deteriorating performance and liquidity of Jianye Real Estate[4]. - The company has not yet received the latest financial statements from Jianye Real Estate, which is necessary for evaluating the financial impact on its own financial statements[3]. - The company is awaiting the publication of Jianye Real Estate's audited financial statements before proceeding with its own financial disclosures[4]. Receivables Management - The company has established a committee to oversee the collection of receivables from Jianye Real Estate and to regularly assess expected credit losses, reporting findings to the executive directors[12]. - The company is closely monitoring the financial stability of Jianye Real Estate through regular meetings with its management team[5]. - The company plans to reduce related party transactions with Jianye Real Estate, continuing a practice from previous years[13]. Internal Controls and Compliance - The company will appoint accounting experts early if sufficient reliable financial information from Jianye Real Estate is not available, in accordance with Hong Kong Financial Reporting Standard No. 9[15]. - The company has implemented measures to prevent future delays in publishing annual results, including improving internal control systems[12]. Corporate Governance - The company emphasizes that all other information in the 2023 Corporate Governance Report remains unchanged despite the additional disclosures[16].

Investment Rating - The investment rating for Central China New Life is maintained as "Neutral" with a target price of HK$1.20, revised down from HK$2.30 [14][24]. Core Insights - The company reported a net loss of RMB 574 million for 2023, with total revenue declining by 9.6% year-on-year to RMB 2.8447 billion [24]. - The gross profit margin decreased by 6.5 percentage points to 26.6%, although it remains at a reasonable level within the industry [24]. - Significant impairment losses were recorded, totaling RMB 1.2224 billion for the year, reflecting ongoing risks from related developers and a weak real estate market in Henan province [24]. - The basic property management business showed robust growth, with service revenue increasing by 16.0% year-on-year to RMB 1.9922 billion, supported by a 16.0% increase in managed area [24]. Financial Summary - For 2023, the company reported total revenue of RMB 2,845 million and a net profit of RMB (574) million, resulting in an EPS of RMB (0.449) [19]. - The forecast for 2024 and 2025 EPS is adjusted to RMB 0.326 and RMB 0.360, respectively, with a new forecast for 2026 introduced at RMB 0.397 [24]. - The company’s market capitalization is approximately HK$1.3655 billion, with a free float of 25.1% [19]. Market Performance - The stock price has seen significant declines, with absolute changes of (25.2)% over the past month and (57.9)% over the past year [1]. - The average share price over the last month was HK$0.9, with a current price of HK$1.050 [14][1]. Growth Potential - The company has potential upside risks, including faster-than-expected improvements in profitability and accelerated property deliveries in Henan [24]. - The growth in property management services and the increase in managed areas present opportunities for revenue enhancement [24].

AWARDS AND HONOURS 獎項及榮譽 No. Year Honour Awarded by Awarded to 序號 獲獎年份 榮譽名稱 頒獎機構 獲獎機構╱項目 AWARDS AND HONOURS 獎項及榮譽 在這裡，本人謹代表董事會，感謝各位股東、投 資人對本集團的信任和支持，也由衷感謝全體同 事盡職盡責的努力及付出。 1. 外拓業務持續發力，核心業務穩定增長 Annual Report 2023 年報 Central China New Life Limited 建業新生活有限公司 ANNUAL REPORT 2023 CORPORATE INFORMATION 2 公司資料 AWARDS AND HONOURS 25 獎項及榮譽 MANAGEMENT DISCUSSION AND ANALYSIS 41 管理層討論及分析 CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME 146 綜合全面收益表 (Incorporated in the Cayman Islands with limited liability) （於開曼群島註冊成立的有限公司 ...

Financial Performance - For the year ended December 31, 2023, the group reported a gross profit of RMB 757.1 million, a decrease of 27.4% compared to RMB 1,043.2 million in 2022, resulting in a gross margin decline from approximately 33.1% to about 26.6%, a drop of 6.5 percentage points [20]. - Revenue for the year ended December 31, 2023, was RMB 2,844.7 million, a decrease of 9.6% compared to 2022 [36]. - Net loss for the year was RMB 577.9 million, compared to a net profit of RMB 571.2 million in 2022, resulting in a net loss margin of 20.3% [36]. - Loss attributable to shareholders for the year was RMB 574.4 million, while in 2022, profit attributable to shareholders was RMB 562.3 million [36]. - The total comprehensive income for the year was RMB (576.1) million, compared to RMB 605.9 million in 2022 [38]. - The company's loss before tax for the year ended December 31, 2023, was RMB 696,175 thousand, compared to a profit of RMB 759,180 thousand in 2022, indicating a significant decline in performance [55]. - The company reported a decrease in retained earnings to RMB 1,084,638 thousand in 2023 from RMB 1,693,148 thousand in 2022, a drop of about 36.0% [64]. - The company’s total liabilities increased to RMB 2,688,729 thousand in 2023 from RMB 2,275,689 thousand in 2022, marking an increase of about 18.2% [64]. - The company’s total assets decreased to RMB 4,851,078 thousand in 2023 from RMB 5,334,808 thousand in 2022, a reduction of approximately 9.0% [64]. Shareholder Information - The board of directors does not recommend the declaration of a final dividend for the year [36]. - The company declared an interim dividend of HKD 0.0871 per ordinary share, amounting to approximately HKD 113,275,000 (equivalent to RMB 103,089,000) for the six months ending June 30, 2023 [81]. - The company distributed dividends totaling RMB 326,261,000 to shareholders in 2023, down from RMB 604,217,000 in 2022 [91]. - The company has maintained a 5% withholding tax rate on dividends declared from profits earned after January 1, 2008, due to compliance with tax treaty arrangements between China and Hong Kong [75]. Asset Management - As of December 31, 2023, the total area under management was 181.8 million square meters, an increase of 25.1 million square meters or 16.0% from the previous year [8]. - The total constructed area was 181.8 million square meters, and the contracted construction area reached 288.3 million square meters, representing growth of 16.0% and 6.2% respectively compared to December 31, 2022 [36]. - The total net book value of goodwill as of December 31, 2023, was RMB 114,589 thousand, unchanged from the previous year [61]. - The total net book value of customer relationships as of December 31, 2023, was RMB 104,831 thousand, down from RMB 119,778 thousand in 2022, indicating a decrease in this asset category [61]. - The total net book value of property, plant, and equipment was RMB 52,419,000, a decrease from RMB 51,022,000 at the end of 2022 [82]. Operational Highlights - The group managed over 1,066 properties, serving more than 2.6 million owners and residents across 18 cities in Henan Province and seven other provinces [17]. - The average property management fee for residential projects slightly increased to approximately RMB 1.74 per square meter per month, compared to RMB 1.72 per square meter per month in 2022 [8]. - Property management service revenue reached RMB 1,992.2 million, an increase of 16.0% from RMB 1,717.4 million in 2022 [163]. - Community value-added service revenue decreased by 10.8% to RMB 658.9 million, down from RMB 738.6 million in 2022, primarily due to weak real estate sales [165]. - Non-owner value-added service revenue fell by 72.0% to RMB 193.5 million, compared to RMB 692.2 million in 2022, reflecting a strategic adjustment in focus [166]. Financial Liabilities - The group’s trade and other payables amounted to RMB 1,384.3 million, an increase from RMB 1,245.2 million in the previous year [6]. - The trade and other payables as of December 31, 2023, were RMB 604,666 thousand, compared to RMB 576,806 thousand in 2022 [124]. - Borrowings decreased by 29.7% to RMB 52.0 million as of December 31, 2023, down from RMB 74.0 million in 2022 [180]. Employee and Operational Strategy - The company’s employee benefit expenses were RMB 548,091 thousand in 2023, down from RMB 645,373 thousand in 2022, a decrease of approximately 15.1% [73]. - The company has implemented several stock option and share incentive plans to motivate and reward employees [189]. - The company emphasizes professional ethics and work capability as core standards for employee selection and recruitment [190]. - The company is committed to enhancing its internal training system and supports employees in continuing education for comprehensive growth and development [190]. - The company plans to focus on enhancing life services and expanding service categories in 2024 [129]. Future Outlook - The company plans to focus on expanding its property management services and enhancing community value-added services in the Chinese market [66]. - The company aims to leverage new technologies in its service offerings to improve operational efficiency and customer satisfaction [66]. - The company plans to enhance regional market competitiveness by improving service quality and establishing strong customer relationships in 2024 [159]. - The company aims to optimize loss-making projects while maintaining a core focus on improving project profit margins [130]. - The company has adopted a cautious development approach in business expansion due to challenges from the pandemic and real estate fluctuations [183].

Investment Rating - The investment rating for the company is adjusted to "Neutral" [1]. Core Views - The company has been recognized as the top property management company in Henan region, indicating its leading position in the Central Plains area [1]. - The company is actively expanding its business, covering 18 cities in Henan and managing over 1.7 billion square meters of property, with a significant portion of new contracts coming from third-party projects [1]. - Despite a decrease in revenue and profit in the first half of 2023, the company has improved its property management gross margin due to scale effects [1]. - The company is gradually reducing its reliance on real estate-related transactions, which is expected to stabilize trade receivables [1]. Summary by Sections Business Overview - The company operates in 18 cities in Henan, managing 953 properties and serving over 2.5 million owners, with a total managed area of 1.7 billion square meters, an increase of 10.98 million square meters from the end of 2022 [1]. - The company added 9.49 million square meters of contracted area in the first half of 2023, with 81.7% coming from third-party projects [1]. Financial Performance - In the first half of 2023, the company reported revenue of approximately 1.35 billion yuan, a year-on-year decrease of 13.5%, and a gross profit of 380 million yuan, down 23.7% [1]. - The gross margin for property management improved from 18.9% in the same period of 2022 to 25.7% in 2023 [1]. - The company recorded a net profit attributable to shareholders of -300 million yuan, primarily due to significant impairment provisions for trade receivables [1]. Profit Forecast and Valuation - The profit forecast for 2023-2024 has been adjusted to -320 million yuan and 320 million yuan respectively, with a new forecast for 2025 set at 350 million yuan [1]. - The expected EPS for 2023-2025 is -0.25, 0.24, and 0.27 yuan respectively [1].

48 Central China New Life Limited / 2023 Interim Report 5. The number of Shares available for grant under the scheme mandate limit as at 1 January 2023 was nil and as at 30 June 2023 was 106,072,600 Shares. So far as is known to any Directors or chief executives of the Company, as at 30 June 2023, other than the interests and short positions of the Directors or chief executives of the Company as disclosed in the sections headed "Directors' and Chief Executives' Interests and Short Positions in Shares, Under ...

Financial Performance - For the six months ended June 30, 2023, the revenue was RMB 1,353.3 million, a decrease of 13.5% compared to RMB 1,565.3 million in the same period of 2022[13]. - The net loss for the period was RMB 298.9 million, while in the same period of 2022, there was a net profit of RMB 301.5 million[13]. - The loss attributable to shareholders for the period was RMB 299.6 million, compared to a profit of RMB 289.8 million in the same period of 2022[13]. - The core net profit attributable to shareholders was RMB 205.0 million, down from RMB 313.2 million in the same period of 2022[13]. - The basic loss per share for the period was RMB 0.23, while in the same period of 2022, the basic earnings per share were RMB 0.23[13]. - The group reported a pre-tax profit decrease in lifestyle and commercial services due to the impact of the macroeconomic situation and a sluggish real estate market[48]. - The group’s net loss was RMB 298.9 million, compared to a net profit of RMB 301.5 million in the same period last year, resulting in a net loss margin of 22.1%[181]. - The gross profit for the group was RMB 379.7 million, a decrease of 23.7% from RMB 497.6 million in the same period last year, with a gross profit margin declining from approximately 31.8% to about 28.1%[188]. Revenue Breakdown - Property management and related services revenue increased to RMB 1,041,819 thousand, up 7.2% from RMB 971,879 thousand year-over-year[35]. - For the six months ended June 30, 2023, the group's revenue from the construction group accounted for 11% and 33% of total revenue respectively[50]. - Community value-added service revenue decreased by 12.1% to RMB 297.6 million, primarily due to weak real estate sales[171]. - Revenue from non-owner value-added services was RMB 105.1 million, a decrease of 74.2% from RMB 407.2 million in the same period last year, mainly due to proactive adjustments based on the collection situation of related party receivables[185]. Assets and Liabilities - As of June 30, 2023, the total assets amounted to RMB 5,053.1 million, a decrease from RMB 5,334.8 million as of December 31, 2022[17]. - Total liabilities increased to RMB 2,515,209 thousand as of June 30, 2023, compared to RMB 2,275,689 thousand at the end of 2022[39]. - The company's total liabilities decreased to RMB 2,916,845,000 as of June 30, 2023, from RMB 2,784,437,000 as of December 31, 2022, representing a decline of about 4.5%[120]. - The total amount of other receivables as of June 30, 2023, was RMB 726,943,000, significantly higher than RMB 247,695,000 as of December 31, 2022, marking an increase of approximately 194.5%[120]. Dividends - The board proposed an interim dividend of 8.71 HKD cents per share, to be paid from the company's share premium account[13]. - The board has proposed an interim dividend of HKD 0.0871 per share for the six months ended June 30, 2023, compared to HKD 0.211 per share for the same period in 2022[64]. - The company declared a final dividend of HKD 0.191 per share, amounting to approximately HKD 243.998 million (equivalent to RMB 223.172 million) for the year ended December 31, 2022[129]. Employee and Corporate Governance - As of June 30, 2023, the company had 5,492 full-time employees, primarily located in Henan Province[85]. - The company continues to optimize its compensation incentive system, aligning it with market salary levels and performance-based management principles[87]. - The company emphasizes employee training and career development, providing extensive career pathways and opportunities for key talent retention[85]. - The company maintains a strong commitment to corporate governance and compliance with listing rules and regulations[88]. Cash Flow and Investments - As of June 30, 2023, the group's cash and cash equivalents amounted to approximately RMB 1,538.3 million, a decrease of 25.0% from RMB 2,049.1 million as of December 31, 2022[104]. - The total amount of funds raised for strategic investments, collaborations, and acquisitions was RMB 1,253,216,000, with 60% allocated to this category[76]. - The group plans to invest RMB 313,304,000 (15% of total funds) in enhancing operations and platforms to optimize user experience[76]. - The group has not incurred any significant contingent liabilities or capital commitments as of June 30, 2023[83]. Impairment and Losses - Financial asset impairment losses for the period were RMB 641,228 thousand, significantly higher than RMB 13,857 thousand in the previous year[35]. - The group's financial asset impairment loss amounted to RMB 641.2 million, an increase of RMB 627.4 million compared to the same period last year, primarily due to credit risk arising from the real estate sector downturn[178]. - The company reported a loss attributable to shareholders of RMB 299,610,000 for the six months ended June 30, 2023, compared to a profit of RMB 289,815,000 for the same period in 2022[91]. Operational Efficiency - The company has adopted a flat organizational structure to enhance operational efficiency and responsiveness to changes[85]. - The company is focusing on enhancing service quality and expanding its service radius to improve customer satisfaction[136]. - The company aims to leverage technology to revitalize its smart service offerings[137]. - The company is focusing on diversifying its service offerings to meet the varied needs of property owners[171].