Group 1: Overall Performance During May Day Holiday - The overall foot traffic across various shopping centers during the May Day holiday exceeded 1.3 billion visits, with total sales surpassing 60 billion yuan [1][2] - Major shopping centers like Wanda Plaza, Joy City, and Aegean Shopping Center reported significant increases in both foot traffic and sales compared to the previous year [5][7] Group 2: Individual Company Performance - Wanda Group reported over 1.3 billion visits and total sales exceeding 60 billion yuan during the holiday, with a year-on-year increase of over 10% in foot traffic [2][4] - Aegean Group saw a 35.8% increase in foot traffic and a 30.3% increase in total sales during the holiday [5] - Joy City recorded over 904 million visits and total sales exceeding 20.9 billion yuan, with an average daily sales of over 4.18 billion yuan [7] Group 3: Regional Highlights - In Beijing, major shopping centers like Chaoyang Joy City and Xilongdu Shopping Center reported significant increases in foot traffic and sales, with Joy City achieving nearly 3 billion yuan in sales [13][15] - In Shanghai, shopping centers like Shanghai Vanke Plaza and Shanghai CP Jing'an reported foot traffic increases of 72% and sales growth of 65% [19][21] - In Guangzhou, sales at the 8th Warehouse Outlet increased by 35%, with foot traffic rising by 62% [39] Group 4: Specific Events and Promotions - Various shopping centers launched special events and promotions during the holiday, such as the "AI + Business" theme at Yinzuo Group, which achieved a sales target completion rate of 108.3% [8] - Aegean Shopping Center in Xiamen opened its second project, achieving a 100% occupancy rate and over 51 million visits in the first five days [5] - The "Cultural + Consumption" model was highlighted in Shanghai, where events like the "Non-Heritage Cultural Life Festival" attracted significant foot traffic and sales growth [28]

Company Overview - As of December 31, 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 year[18]. - The company serves over 2.6 million property owners and residents across 1,121 properties, covering all 18 prefecture-level cities in Henan and extending to multiple provinces[19]. - The diversified portfolio managed includes residential and commercial properties, office buildings, gyms, special towns, rural complexes, schools, hospitals, parks, and industrial parks[19]. - Central China New Life Limited has been ranked 11th among the Top 100 Property Management Companies in China for four consecutive years since 2021[19]. - 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[17]. - The company has a significant operating history of three decades, contributing to its growth and reputation in the property management sector[18]. - The total gross floor area managed by the company as of December 31, 2024, reflects its leading position in the central China property management market[18]. Financial Performance - The Group achieved revenue of RMB2,952.2 million for the year ended 31 December 2024, representing an increase of approximately 3.8% compared to RMB2,844.7 million in 2023[122]. - Net profit amounted to RMB238.2 million, a significant recovery from a net loss of RMB577.9 million in the corresponding period in 2023[122]. - Basic property management services generated revenue of RMB2,298.8 million, a year-on-year increase of 15.4%, accounting for 77.9% of total revenue[128]. - The accumulated contracted GFA reached 290.1 million sq.m., while the GFA under management increased to 196.9 million sq.m., representing growth of 0.7% and 8.3% respectively compared to 31 December 2023[134]. - A final dividend of RMB88.3 million was declared for the year ended 31 December 2024, maintaining a high level of dividend distribution[134]. - Gross profit decreased by 15.4% to RMB 640,738,000, with a gross profit margin of 21.7%, down from 26.6% in the previous year[156]. - Core net profit attributable to shareholders decreased by 27.1% to RMB 294,044,000 compared to RMB 403,203,000 in 2023[156]. Community Engagement and Initiatives - CCNL's community dining services achieved a coverage rate of 17% and generated nearly RMB 20 million in revenue within its first year[35]. - CCNL hosted over 300 "Neighbourhood Family Banquet" events, bringing together nearly 50,000 property owners to celebrate its 30th anniversary[62]. - Throughout 2024, CCNL held over 9,700 community events, attracting more than 810,000 participants[89]. - CCNL established "CCNL Starlight Book Corners" to inspire children's curiosity through a book donation campaign in April[46]. - In September, CCNL launched the "Good Life" Initiative, introducing measures such as the Good Life Pass and Good Life Rider Map to enhance delivery services[71]. - A total of 431 "Neighbourhood Family Mid-Autumn Banquets" were held, bringing together 48,690 residents[73]. - In November, CCNL's "This Is My Home" Photography Contest received 4,248 submissions, with total participation reaching 150,000 people[81]. - CCNL's "Warm Winter Action — Love for Farmers" initiative distributed over 800,000 catties of seasonal vegetables to property owners[85]. Awards and Recognition - CCNL received multiple awards, including being ranked 11th in the "2024 China Top 100 Property Management Companies" list[24]. - The company was recognized as the "2024 Outstanding Brand Enterprise in Public Property Management Services in China" at the 2024 China Real Estate Brand Value Research Conference[108]. - Henan Central China New Life Service Co., Ltd. was recognized as the "2024 Leading Property Management Companies in Central China in terms of Market Position (Top 1)" and "2024 Property Management Companies in Henan Province in terms of Market Position (Top 1)"[110]. - The company secured 23 awards in 2024, highlighting its strong performance in property management across various projects and regions[114]. - The company was recognized as a "Leading Enterprise in Property Service Quality" by the Henan Property Management Association in February 2024[114]. - The company received the "Advanced Unit for Trade" award from the Zhengzhou Finance, Trade, Light Industry and Service Industry Union for its outstanding performance in 2023[116]. Strategic Focus and Future Plans - The company aims to enhance living quality and lifestyle experiences for residents in Henan, leveraging its well-established brand and operational history[18]. - The Group focused on enhancing customer value by integrating basic standard services with customized lifestyle services, improving service response efficiency[127]. - Plans to innovate a lifestyle service ecosystem are underway, integrating property services with living needs to enhance community consumption[145]. - The Group is focusing on enhancing service quality and diversifying offerings in response to the evolving property management industry[172]. - In 2025, the Group plans to implement a regional focus strategy and high-quality expansion by identifying high-potential areas and strengthening investment in niche segments[173]. - The strategy includes a focus on high-quality investment and expansion targets, optimizing market expansion mechanisms[178]. Operational Efficiency and Innovation - The Group aims to deepen innovation in basic and lifestyle service models to create a second growth curve, focusing on sustainable and high-quality businesses[179]. - The Group plans to leverage cutting-edge technology to enhance operational efficiency and service quality through intelligent operation management and digital service processes[180]. - Organizational effectiveness was optimized through process reengineering and talent training to support sustainable development[127]. - Innovative service models, such as community group meals, were developed to broaden growth opportunities in value-added services[135].

Financial Performance - For the year ending December 31, 2024, the revenue was RMB 2,952.2 million, an increase of 3.8% compared to 2023[4] - The gross profit for the same period was RMB 640.7 million, a decrease of 15.4%, with a gross margin of 21.7%, down 4.9 percentage points from 2023[4] - The net profit for the year was RMB 238.2 million, compared to a net loss of RMB 577.9 million in 2023, resulting in a net profit margin of 8.1%[4] - Basic earnings per share for the year were RMB 0.17, while in 2023, there was a basic loss per share of RMB 0.45[5] - The core net profit attributable to shareholders was RMB 294.0 million, down from RMB 403.2 million in 2023[4] - The company reported a profit attributable to shareholders of RMB 214,594,000 for the year ended December 31, 2024, compared to a loss of RMB 574,369,000 in 2023[42] - The diluted earnings per share for 2024 was RMB 0.17, a significant improvement from a loss of RMB 0.45 per share in 2023[42] Dividends - The company proposed a final dividend of HKD 0.0736 per share, subject to shareholder approval at the 2025 Annual General Meeting[5] - A special dividend of RMB 286,262,000 was declared for the year ended December 31, 2023, with a per share amount of HKD 0.2410[45] - The interim dividend for the six months ended June 30, 2024, was proposed at RMB 125,698,000, compared to RMB 103,089,000 for the same period in 2023[44] Assets and Liabilities - As of December 31, 2024, the total assets amounted to RMB 4,726.96 million, a decrease from RMB 4,851.08 million in 2023[14] - The total equity attributable to shareholders was RMB 1,863.15 million, down from RMB 2,054.78 million in 2023[14] - Total liabilities increased to RMB 2,737,588 thousand in 2024 from RMB 2,688,729 thousand in 2023, representing a growth of 1.8%[16] - Non-current liabilities rose to RMB 179,196 thousand in 2024, up from RMB 138,798 thousand in 2023, marking a significant increase of 29.1%[16] - Contract liabilities increased to RMB 863,676 thousand in 2024 from RMB 758,678 thousand in 2023, showing a rise of 13.9%[16] - The total equity and liabilities amounted to RMB 4,726,961 thousand in 2024, down from RMB 4,851,078 thousand in 2023, a decline of 2.6%[16] Revenue Sources - Revenue from property management and related services reached RMB 2,493,824 thousand in 2024, an increase of 14.1% compared to RMB 2,185,943 thousand in 2023[26] - The company reported a decrease in installation and renovation services revenue to RMB 85,983 thousand in 2024, down 68.4% from RMB 272,177 thousand in 2023[26] - Property management services generated revenue of RMB 2,298.8 million, a 15.4% increase from RMB 1,992.2 million in 2023, driven by an increase in total managed area to 196.9 million square meters, up 8.3%[80] - Community value-added services revenue decreased by 17.3% to RMB 544.8 million from RMB 658.9 million in 2023, primarily due to a reduction in the number of handovers affecting smart community solutions[83] - Non-owner value-added services revenue fell by 43.9% to RMB 108.6 million from RMB 193.5 million in 2023, attributed to adjustments in the real estate sector and a reduction in service scale[84] Expenses - The total operating expenses for the year ended December 31, 2024, amounted to RMB 2,514,736 thousand, compared to RMB 2,303,260 thousand in 2023, reflecting an increase of 9.2%[27] - Employee benefits expenses increased to RMB 615,453 thousand in 2024 from RMB 548,091 thousand in 2023, representing a growth of 12.2%[27] - The cost of goods sold rose to RMB 278,772 thousand in 2024, up from RMB 223,537 thousand in 2023, indicating a year-over-year increase of 24.7%[27] - Selling and marketing expenses decreased by 9.1% to RMB 16.2 million, maintaining approximately 0.6% of total revenue[89] - Administrative expenses fell by 5.5% to RMB 187.0 million, accounting for about 6.3% of revenue, a decrease of 0.7 percentage points from 2023[90] Impairment and Tax - The company reported a significant reduction in financial and contract asset impairment losses, from RMB 1,222.35 million in 2023 to RMB 74.91 million in 2024[7] - The income tax expense for the year was RMB 120.8 million, with a tax rate of 33.6%, up from a tax credit of RMB 118.3 million and a tax rate of 17.0% in 2023, mainly due to a significant reduction in credit impairment losses[94] Cash Flow and Investments - Cash and cash equivalents as of December 31, 2024, were approximately RMB 1,190.1 million, down from RMB 1,620.6 million as of December 31, 2023[96] - The company has allocated a total of RMB 2,088,694,000 for various strategic investments, with RMB 596,008,000 already utilized and RMB 1,178,816,000 remaining[103] - Strategic investments include RMB 1,253,216,000 for acquisitions and partnerships, with RMB 132,723,000 already used[102] - The company plans to enhance user experience with an investment of RMB 505,889,000, of which RMB 9,959,000 has been utilized[103] Employee and Governance - The company has 5,699 full-time employees, primarily located in Henan Province[112] - The company has established a clear promotion pathway for employees, tailoring development paths based on individual strengths and strategic direction[113] - The company has implemented a performance evaluation mechanism that closely links employee performance to compensation, enhancing motivation and creativity[114] - The audit committee has reviewed the annual performance for the year ending December 31, 2024, and reached a consensus with management on the financial results[118] - The company has adhered to all corporate governance codes and disclosure requirements as of December 31, 2024[115] Future Plans - The company plans to implement a regional focus strategy in 2025, targeting high-potential areas for localized development and optimizing market expansion mechanisms[72] - The company is innovating its basic and lifestyle service models to create a dual-track operating system, enhancing service value and exploring new profit growth points[73] - The company is leveraging advanced technology to upgrade property service models, aiming for intelligent operational management and digital service processes[75] - The company is committed to building a differentiated brand by promoting its unique cultural values and enhancing customer loyalty through community cultural activities[76]

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].