Group 1 - The core viewpoint of the article highlights the performance of the China Securities Hong Kong Property Management and Services Theme Index, which has shown significant growth over the past month, three months, and year-to-date [1] - The index has increased by 6.27% in the last month, 12.78% in the last three months, and 9.84% year-to-date [1] - The index comprises 30 listed companies involved in property management services, community value-added services, and non-owner value-added services, reflecting the overall performance of the Hong Kong market in this sector [1] Group 2 - The top ten weighted companies in the index include China Resources Vientiane Life (16.07%), Country Garden Services (15.21%), Poly Property (13.82%), and others, indicating a concentration in a few key players [1] - The index is fully composed of companies listed on the Hong Kong Stock Exchange, with a 100% representation in the property management sector [1] - The index samples are adjusted biannually, with changes implemented on the next trading day following the second Friday of June and December [2]

Core Viewpoint - Sunac Services is divesting its 80% stake in Guangxi Zhangtai Rongchuang for approximately RMB 826.62 million to optimize its strategic focus on first and second-tier cities [1] Group 1: Transaction Details - The transaction involves Sunac Services' wholly-owned subsidiary, Rongyuan Investment, entering into a share transfer agreement with Guangxi Laozhangjia [1] - Following the completion of this transaction, Sunac Services will no longer hold any equity in Zhangtai Service Group [1] Group 2: Strategic Implications - The divestment is part of Sunac Services' strategy to concentrate resources and management efforts on core urban areas [1]

Financial Performance - For the year ended December 31, 2024, the Group reported total revenue of approximately RMB 6.97 billion, a slight decrease from RMB 7.01 billion in 2023[10]. - Revenue from non-related parties reached approximately RMB 6.80 billion, representing a year-on-year growth of about 5.6% and accounting for approximately 98% of total revenue[13]. - The Group's net loss for the year was RMB 433.14 million, compared to a loss of RMB 393.18 million in 2023[10]. - The gross profit for the year ended December 31, 2024, was approximately RMB 1,527.3 million, down from RMB 1,667.9 million in 2023, reflecting a decrease of about 8.4%[32]. - The gross margin decreased to approximately 21.9% in 2024 from 23.8% in 2023, a decline of about 1.9 percentage points[32]. - Community living services revenue decreased by approximately RMB 30.8 million (approximately 6.5%) to about RMB 443.0 million for the year ended December 31, 2024[23]. - The gross profit margin for property management and operation services decreased from approximately 23.8% in 2023 to 20.9% in 2024, mainly due to increased maintenance costs[33]. Assets and Liabilities - The Group's total assets as of December 31, 2024, were RMB 10.59 billion, down from RMB 11.64 billion in 2023[11]. - The total equity of the Group decreased to RMB 5.32 billion in 2024 from RMB 6.24 billion in 2023[11]. - The net amount of trade and other receivables was approximately RMB 3,590.2 million as of December 31, 2024, a decrease of about RMB 727.4 million from RMB 4,317.6 million as of December 31, 2023, primarily due to an increase in trade receivables and impairment provisions[45]. - The group's available funds totaled approximately RMB 4,068.8 million as of December 31, 2024, a decrease of about RMB 366.8 million from RMB 4,435.6 million as of December 31, 2023, mainly due to cash outflows for dividends[47]. - The current ratio was approximately 1.5 times as of December 31, 2024, compared to approximately 1.7 times as of December 31, 2023[47]. - The group has no loans or borrowings as of December 31, 2024, maintaining an asset-to-liability ratio of zero[47]. Revenue Breakdown - Property management and operation services revenue increased by approximately RMB 221.0 million (approximately 3.6%) to about RMB 6,379.6 million for the year ended December 31, 2024, driven by an increase in managed building area[22]. - The proportion of revenue from core cities in the group's contracts reached approximately 98%, an increase of about 6 percentage points year-on-year[15]. - The community living service business achieved revenue of approximately RMB 2.2 billion, representing a year-on-year growth of about 5% and accounting for about 50% of total community living service revenue[16]. - The revenue from convenience services was approximately RMB 215.84 million, remaining stable compared to RMB 216.35 million in 2023[24]. - Space operation services revenue decreased by approximately RMB 26.0 million to RMB 117.19 million, primarily due to the active reduction of non-core business operations[25]. - Non-owner value-added services revenue was approximately RMB 146.9 million, a significant decrease of about RMB 230.2 million (approximately 61.0%) from RMB 377.1 million in 2023[29]. Operational Metrics - The number of managed properties increased to approximately 2.91 million square meters, reflecting a year-on-year growth of about 7%[14]. - The number of managed households rose to approximately 1.7 million, marking an 8% increase compared to the previous year[14]. - The renewal rate of contracts increased by 4 percentage points to approximately 95%[14]. - The group invested over RMB 60 million in 541 projects in 2024 to enhance service quality and address owner concerns, resulting in over 80% improvement in collection rates[14]. Governance and Management - The management team includes experienced professionals with over 20 years in the real estate industry, enhancing strategic decision-making capabilities[54][55][56]. - The company emphasizes the importance of good corporate governance and has adopted the corporate governance code as its own[70]. - The board consists of eight members, including two executive directors, three non-executive directors, and three independent non-executive directors[73]. - The company has established various board committees, including the audit committee, remuneration committee, nomination committee, and ESG committee[71]. - The company has confirmed the independence of all independent non-executive directors in accordance with listing rules[76]. ESG and Risk Management - The group has a strong focus on environmental, social, and governance (ESG) initiatives, led by the CEO who also chairs the ESG committee[55]. - The company has committed to integrating ESG and climate-related expectations into its business decision-making processes[98]. - The company has established a clear risk management structure, with the board overseeing risk management and the audit committee reviewing its effectiveness[106]. - The company has implemented effective risk management procedures, including risk identification, analysis, response, and monitoring responsibilities[109]. Shareholder and Dividend Information - The group plans to declare a final dividend of RMB 0.143 per share for the year 2024, totaling approximately RMB 437 million, which represents about 55% of the core net profit attributable to shareholders[16]. - The company maintains a dividend policy aimed at providing stable and sustainable dividends while ensuring sufficient financial resources for business growth[137]. - The proposed final dividend for the year ending December 31, 2024, is RMB 0.143 per share, totaling approximately RMB 437 million, subject to shareholder approval[139]. Strategic Investments and Future Plans - The company plans to seek strategic investment and acquisition opportunities related to its core property management and community operations[124]. - The company has allocated HKD 1,480 million for further expansion of community value-added services, with HKD 431 million utilized to date[128]. - The company plans to upgrade its smart management service system with an allocation of HKD 768 million, of which HKD 415 million has been utilized[128].

Financial Performance - The group's revenue for the year ended December 31, 2024, was approximately RMB 6.97 billion, showing a year-on-year decrease of about 0.56%[2] - The attributable loss to the company's owners was approximately RMB 451 million, representing an increase in loss of about 3.71% year-on-year[2] - The core net profit attributable to the company's owners was approximately RMB 796 million, remaining stable compared to the previous year[2] - Non-related party revenue increased by approximately 5.63% year-on-year to about RMB 6.80 billion[2] - The company's gross profit for the fiscal year ending December 31, 2024, was approximately RMB 1,527.3 million, a decrease of about RMB 140.6 million (approximately 8.4%) from RMB 1,667.9 million in the previous year[62] - The gross margin decreased to approximately 21.9%, down 1.9 percentage points from 23.8% in the previous year, primarily due to increased maintenance costs[62] - The net loss for the year ended December 31, 2024, was approximately RMB 433.1 million, with the loss attributable to the company's owners being approximately RMB 451.2 million, compared to a net loss of approximately RMB 393.2 million for the year ended December 31, 2023[68] Dividends - The board proposed a final dividend of RMB 0.143 per share, totaling approximately RMB 437 million, which is about 55% of the core net profit attributable to the company's owners[2] - The proposed final dividend for 2024 is RMB 0.143 per share, totaling approximately RMB 437,129 thousand, consistent with the previous year's dividend[30] - The board proposed a final dividend of RMB 0.143 per share for the year ending December 31, 2024, totaling approximately RMB 437 million, subject to shareholder approval[89] - The final dividend payment is expected to be made in cash around June 6, 2025, pending shareholder approval[89] Assets and Liabilities - The total assets of the group as of December 31, 2024, were approximately RMB 10.59 billion, down from RMB 11.64 billion in the previous year[9] - The total liabilities of the group decreased to approximately RMB 5.27 billion from RMB 5.41 billion in the previous year[9] - The equity attributable to the company's owners decreased to approximately RMB 5.17 billion from RMB 6.04 billion in the previous year[9] - The total current liabilities for trade and other payables decreased to RMB 2,841.47 million in 2024 from RMB 3,036.87 million in 2023[41] - The net trade and other receivables as of December 31, 2024, were approximately RMB 3,590.2 million, a decrease of about RMB 727.4 million from approximately RMB 4,317.6 million as of December 31, 2023[71] - The group's available funds as of December 31, 2024, totaled approximately RMB 4,068.8 million, a decrease of about RMB 366.8 million from approximately RMB 4,435.6 million as of December 31, 2023[74] Revenue Breakdown - Property management and operation services generated revenue of RMB 6,379,627 thousand, up 3.6% from RMB 6,158,647 thousand in the previous year[22] - Revenue from third-party sources increased by 5.6% to RMB 6,801.7 million, accounting for 97.6% of total revenue, while revenue from related parties decreased by 70.6% to RMB 167.8 million, representing 2.4% of total revenue[47] - Community living services revenue decreased by approximately RMB 30.8 million (approximately 6.5%) to RMB 443.0 million, primarily due to a reduction in space operation services[54] - Non-owner value-added services revenue fell by approximately RMB 230.2 million (approximately 61.0%) to RMB 146.9 million, attributed to a contraction in business volume amid a lack of significant improvement in the real estate sector[58] Operational Metrics - As of December 31, 2024, the total managed area reached approximately 291 million square meters, a year-on-year increase of about 7%[81] - The number of managed owner households increased to approximately 1.7 million, representing a year-on-year growth of about 8%[81] - The renewal rate improved by 4 percentage points to approximately 95%, with residential projects accounting for about 84% of the saturated income[81] - In 2024, the signing amount in core cities accounted for about 98%, an increase of approximately 6 percentage points year-on-year, with project density in single cities increasing by about 11% compared to 2022[82] - The community service business generated revenue of approximately RMB 220 million, a year-on-year increase of about 5%, accounting for about 50% of total community service income[83] Employee and Governance - The group employed 27,051 staff as of December 31, 2024, with total employee costs amounting to approximately RMB 2.739 billion for the year[94] - The company has established a comprehensive internal training program for employees to enhance their professional and service skills[96] - The audit committee, consisting of three independent non-executive directors, reviewed the financial reporting procedures and internal controls for the year ending December 31, 2024[99] - The company has adopted the corporate governance code and complied with all applicable provisions for the year ending December 31, 2024[98] Future Outlook - The company plans to invest over RMB 60 million in 541 projects in 2024, addressing owner issues and improving project collection rates by over 80%[81] - The company aims to enhance service quality and operational stability while focusing on core business areas and developing differentiated competitive advantages[86] - The company will continue to innovate and implement new technologies to improve efficiency and service quality, while streamlining management structures[86] - The company anticipates that the scale of new property management services for Zhangtai Service will not meet previous expectations due to slower project expansion and rising service costs[36]

Financial Performance - For the first half of 2024, the Group achieved revenue of approximately RMB 3.484 billion, with a gross profit of about RMB 888 million, both showing stable growth year-on-year[7]. - The core net profit attributable to the owners of the Company was approximately RMB 455 million, remaining flat compared to the previous year[7]. - The group recorded revenue of approximately RMB 3,483.7 million for the six months ended June 30, 2024, an increase of about RMB 87.6 million (approximately 2.6%) compared to RMB 3,396.1 million for the same period in 2023[14]. - For the six months ended June 30, 2024, the total revenue was approximately RMB 3,483.7 million, representing a growth of 2.6% compared to RMB 3,396.1 million for the same period in 2023[15]. - The gross profit for the six months ended June 30, 2024, was approximately RMB 888.4 million, an increase of RMB 40.9 million (4.8%) from RMB 847.5 million in the previous year, with a gross margin of 25.5%[25]. - The company incurred a net loss of RMB 460,352 thousand for the six months ended June 30, 2024, compared to a profit of RMB 364,920 thousand in the prior year, reflecting a significant decline[74]. - The financial assets impairment loss for the period was RMB 1,136,572 thousand, a substantial increase from RMB 38,385 thousand in the previous year[74]. - The company reported a total comprehensive loss of RMB 472,234 thousand for the six months ended June 30, 2024[78]. Revenue Breakdown - Property management and operation services revenue was approximately RMB 3,172.4 million, an increase of about RMB 226.0 million (7.7%) from RMB 2,946.4 million in the previous year, driven by an increase in managed building area[17]. - Community living services revenue decreased to approximately RMB 213.1 million, down RMB 33.1 million (13.4%) from RMB 246.2 million in the previous year, primarily due to the impact of the real estate market[19]. - Non-owner value-added services revenue fell to approximately RMB 98.2 million, a decrease of RMB 105.2 million (51.7%) from RMB 203.4 million in the previous year, due to ongoing adjustments based on market principles[22]. - Revenue from third-party property developers was approximately RMB 887.2 million, accounting for about 28% of the total property management revenue[17]. Cost and Expenses - The sales cost for the six months ended June 30, 2024, was approximately RMB 2,595.3 million, an increase of RMB 46.8 million (1.8%) from RMB 2,548.5 million in the previous year[24]. - Administrative expenses for the six months ended June 30, 2024, were approximately RMB 294.5 million, a decrease of about RMB 20.9 million from RMB 315.4 million for the same period in 2023[27]. - Sales and marketing expenses decreased to approximately RMB 25.9 million for the six months ended June 30, 2024, down by about RMB 12.1 million from RMB 38.0 million for the same period in 2023[28]. - The group’s total expenses for the six months ended June 30, 2024, were RMB 4,052,285,000, an increase from RMB 2,940,310,000 in the same period of 2023[121]. Asset Management - As of June 30, 2024, the total managed area was approximately 282 million square meters, with over 1.6 million owner households under management[7]. - The total managed building area as of June 30, 2024, was approximately 282 million square meters, with residential properties accounting for about 88%[17]. - The company reported a total of RMB 1,160,394 thousand in financial assets measured at fair value through profit or loss as of June 30, 2024, significantly up from RMB 277,378 thousand as of December 31, 2023, indicating a growth of 318.5%[152]. - The total book value of trade receivables increased from RMB 2,492,497 thousand on December 31, 2023, to RMB 3,161,635 thousand on June 30, 2024, reflecting a growth of approximately 27%[93][92]. Impairment and Provisions - The net impairment loss on financial assets for the six months ended June 30, 2024, was approximately RMB 1,136.6 million, significantly higher than RMB 38.4 million for the same period in 2023[29]. - The total provision for losses on financial assets increased from RMB 2,616,727 thousand at the beginning of the year to RMB 3,708,533 thousand by June 30, 2024, showing a significant rise in credit risk management[100]. - The total provision for trade and other receivables amounted to approximately RMB 3,567 million, an increase from RMB 2,614 million as of December 31, 2023, representing a year-over-year increase of 36.4%[18]. - The company has recognized a net impairment loss of RMB 1,136,572 thousand for the six months ended June 30, 2024, indicating ongoing challenges in asset recoverability[104]. Corporate Governance - The company has adopted the corporate governance code as per the Stock Exchange Listing Rules and has complied with all applicable provisions during the six months ending June 30, 2024[37]. - The board of directors confirmed compliance with the standard code for securities transactions during the six months ending June 30, 2024[38]. - The company emphasizes the importance of good corporate governance and regularly discusses group performance and operational strategies[37]. Shareholder Information - The company holds 419,340,750 shares under the share incentive plan, representing approximately 13.72% of the issued shares as of June 30, 2024[44]. - The share incentive plan aims to align the interests of selected participants with those of shareholders[41]. - The company did not recommend any interim dividend for the six months ended June 30, 2024, which is the same as the previous year[64]. Employee and Management - The company reported a total of 26,839 employees as of June 30, 2024, an increase from 26,795 employees as of December 31, 2023[65]. - Total compensation for key management personnel decreased to RMB 12,820 thousand for the six months ended June 30, 2024, down from RMB 17,945 thousand in the same period of 2023, a decrease of 28.5%[163]. Cash Flow and Liquidity - Cash and cash equivalents decreased significantly from RMB 3,979,504 thousand to RMB 2,180,527 thousand, a drop of approximately 45.24%[75]. - Operating cash flow for the six months ended June 30, 2024, was a net cash outflow of RMB 492,112 thousand, compared to a net inflow of RMB 6,614 thousand for the same period in 2023[80]. - The company’s cash flow from operating activities was significantly impacted, with a cash outflow of RMB 344,490 thousand compared to a cash inflow of RMB 132,966 thousand in the same period of 2023[80]. Strategic Initiatives - The group remains committed to high-quality development and focuses on mid-to-high-end properties in core cities[3]. - The group is focused on expanding market share in core cities and enhancing service quality, aiming for sustainable growth and reliable returns for shareholders[12]. - The company plans to utilize net proceeds from fundraising for strategic investments in property management and community-related operations, with an expected total allocation of RMB 9,042 million[69].

Financial Performance - The group's revenue for the six months ended June 30, 2024, was approximately RMB 3.48 billion, representing a year-on-year growth of about 3%[2] - The group's gross profit for the same period was approximately RMB 888 million, reflecting a year-on-year increase of about 5%[2] - The loss attributable to the company's owners was approximately RMB 472 million, compared to a profit of RMB 340 million in the same period last year[2] - The core net profit attributable to the company's owners was approximately RMB 455 million, showing a year-on-year growth of about 4%[2] - The company's basic loss per share for the period was RMB 0.15, compared to a profit of RMB 0.11 per share in the same period last year[6] - The total revenue for the six months ended June 30, 2024, was RMB 3,483,728 thousand, compared to RMB 3,396,051 thousand for the same period in 2023, indicating a year-over-year increase of about 2.6%[16] - The company's total revenue for the first half of 2024 is approximately RMB 3,484 million, with a gross profit of approximately RMB 888 million, both showing stable growth year-on-year[53] Assets and Liabilities - The total assets as of June 30, 2024, amounted to approximately RMB 10.26 billion, down from RMB 11.64 billion as of December 31, 2023[7] - The total equity attributable to the company's owners was approximately RMB 5.29 billion, a decrease from RMB 6.24 billion as of December 31, 2023[8] - The company's total liabilities as of June 30, 2024, were RMB 5,238,710 thousand, compared to RMB 4,815,663 thousand as of December 31, 2023, representing an increase of approximately 8.8%[16] - The total equity and liabilities as of June 30, 2024, were RMB 10,263,242 thousand, up from RMB 11,644,829 thousand as of December 31, 2023, indicating a decrease of about 11.9%[16] - As of June 30, 2024, the company's available funds total approximately RMB 3,380.4 million, a decrease of about RMB 1,055.2 million from RMB 4,435.6 million as of December 31, 2023[49] - The company's current assets net value is approximately RMB 2,295.7 million, down from RMB 3,499.4 million as of December 31, 2023[49] - The company has a current ratio of approximately 1.5 times as of June 30, 2024, compared to 1.7 times as of December 31, 2023[49] Revenue Breakdown - For the six months ended June 30, 2024, the company's revenue from property management and operation services was RMB 3,172,442 thousand, an increase from RMB 2,946,418 thousand in the same period of 2023, representing a growth of approximately 7.7%[16] - Revenue from third parties was RMB 3,390.1 million, representing 97.3% of total revenue, with a growth rate of 5.8% compared to the previous year[29] - Community living services revenue decreased to approximately RMB 213.1 million, down about RMB 33.1 million (approximately 13.4%) from RMB 246.2 million for the same period in 2023[34] - Convenience service revenue for the six months ended June 30, 2024, was approximately RMB 103.8 million, a decrease of about RMB 6.8 million compared to the same period in 2023, primarily due to reduced project delivery volume[35] - Space operation service revenue was approximately RMB 58.2 million, a decrease of about RMB 15.8 million compared to the same period in 2023, mainly due to the active adjustment of non-core businesses[36] - Real estate brokerage service revenue was approximately RMB 21.1 million, a decrease of about RMB 10.8 million compared to the same period in 2023, significantly impacted by a decrease in commodity housing transaction volume[36] - Non-owner value-added service revenue was approximately RMB 98.2 million, a decrease of about RMB 105.2 million (approximately 51.7%) compared to the same period in 2023, due to ongoing market-driven adjustments[37] Expenses and Impairments - The group's administrative expenses decreased to approximately RMB 294 million from RMB 315 million in the previous year[5] - Employee benefit expenses for the six months ended June 30, 2024, were RMB 1,347,157 thousand, slightly decreasing from RMB 1,351,563 thousand in the same period of 2023[18] - The net impairment loss on financial assets for the six months ended June 30, 2024, was RMB 1,136,572 thousand, significantly higher than RMB 38,385 thousand in the same period of 2023, indicating a substantial increase in financial asset impairments[18] - Financial asset impairment losses for the six months ended June 30, 2024, were approximately RMB 1,136.6 million, significantly higher than RMB 38.4 million for the same period in 2023, primarily due to market conditions affecting receivables[44] - The company reported a deferred tax expense of RMB (298,654) thousand for the six months ended June 30, 2024, compared to RMB (56,762) thousand for the same period in 2023, reflecting a significant change in tax position[19] Corporate Governance and Compliance - The company has adopted the corporate governance code as per the listing rules and has complied with all applicable provisions for the six months ending June 30, 2024[62] - The audit committee consists of three independent non-executive directors, with Mr. Yao Ning serving as the chairman, who has professional accounting qualifications[63] - The independent auditor has reviewed the company's unaudited interim results for the six months ending June 30, 2024, in accordance with the relevant standards[63] Strategic Focus and Future Plans - The company aims to expand its market share by deepening its focus on core cities and advantageous business segments, while enhancing customer service quality[58] - The company has effectively controlled and reduced the impact of related party transactions, with related party revenue decreasing by approximately 51%, accounting for only about 3% of total revenue[53] - The company plans to maintain a healthy cash flow and focus on managing cash flow from non-related party businesses, addressing issues such as secondary fees and vacant property collections[58] - The company has invested approximately RMB 1.338 billion in financial assets, primarily in equity investments in a non-listed company and several low-risk financial products[60] - The company has established a standardized extraction mechanism for maintenance funds and public area revenues to ensure orderly usage[55] - The company emphasizes the importance of professional and differentiated service labels to break through service homogenization in the next phase[58]

Financial Performance - Total revenue for the year ended December 31, 2023, was RMB 7,009,517, a decrease from RMB 7,126,161 in 2022[9] - Gross profit for the same period was RMB 1,667,860, compared to RMB 1,604,439 in the previous year[9] - The company reported a net loss of RMB 393,183 for the year, an improvement from a loss of RMB 462,396 in 2022[9] - Basic loss per share for the year was RMB (0.14), an improvement from RMB (0.16) in 2022[9] - The company declared a dividend of RMB 0.143 per share, up from RMB 0.137 in the previous year[9] - The net loss attributable to the company was approximately RMB 435 million, but the core net profit, excluding certain impairments, was approximately RMB 793 million, representing a year-on-year increase of about 3%[12] - The gross profit of the rental and sales business increased by 11% year-on-year, with per capita efficiency rising by 47% to RMB 18,000 per person per month[14] - The company reported a revenue of approximately RMB 7,009.5 million for the year ended December 31, 2023, a decrease of about RMB 116.7 million (approximately 1.6%) compared to RMB 7,126.2 million for the year ended December 31, 2022[17] - Revenue from third-party services increased to RMB 6,439.3 million, accounting for 91.9% of total revenue, while revenue from related parties decreased by 55.6% to RMB 570.2 million, representing 8.1% of total revenue[18] Assets and Liabilities - Total assets as of December 31, 2023, amounted to RMB 11,644,829, down from RMB 12,493,457 in 2022[10] - Total equity decreased to RMB 6,237,506 from RMB 7,769,029 in the previous year[10] - Total liabilities increased to RMB 5,407,323, compared to RMB 4,724,428 in 2022[10] - The net carrying amount of trade and other receivables as of December 31, 2023, was approximately RMB 4,317.6 million, a decrease of about RMB 51.0 million from RMB 4,368.6 million as of December 31, 2022[37] - The total available funds as of December 31, 2023, were approximately RMB 4,435.6 million, a decrease of about RMB 275.3 million from RMB 4,710.9 million as of December 31, 2022[39] - The trade and other payables as of December 31, 2023, were approximately RMB 3,036.9 million, an increase of about RMB 296.2 million from RMB 2,740.7 million as of December 31, 2022[38] - The company’s equity attributable to owners decreased from RMB 7,603,703 thousand in 2022 to RMB 6,035,024 thousand in 2023, a decline of about 20.7%[172] Cash Flow - The net cash flow from operating activities was approximately RMB 862 million, covering core net profit by about 1.1 times[12] - For the year ended December 31, 2023, the group reported a net cash inflow from operating activities of approximately RMB 862.2 million, compared to a net outflow of RMB 394.8 million for the previous year[41] - The group experienced a net cash inflow from investing activities of approximately RMB 368.4 million, a significant improvement from a net outflow of RMB 519.3 million in the prior year[41] - The net cash used in financing activities was RMB (1,129,988) thousand, compared to RMB (519,702) thousand in the previous year[179] - The net increase in cash and cash equivalents was RMB 100,606 thousand, a significant recovery from a decrease of RMB (1,433,813) thousand in the prior year[179] Business Strategy and Operations - The company aims to enhance its position in the property management and commercial operational services sectors[4] - The service philosophy of "commitment to excellence and beauty" continues to guide the company's operations and customer service strategies[4] - The company aims to focus on core cities and large clients, enhancing competitive strategies and process management to improve business opportunities and conversion rates[16] - In 2024, the company plans to continue its pragmatic approach to ensure stable returns for shareholders while pursuing sustainable development[16] - The company is committed to improving service quality and focusing on core products and cities, leading to a strategic contraction of non-core business developments[25] Governance and Compliance - The company has established various committees, including ESG and remuneration committees, to ensure effective governance and strategic oversight[47] - The company has adopted a corporate governance code in compliance with the listing rules, ensuring all applicable provisions are followed as of December 31, 2023[54] - The board emphasizes the importance of good corporate governance and has implemented practices to enhance transparency and accountability[54] - The company has established an internal reporting system to monitor operational and business development conditions[54] - The audit committee has been tasked with reviewing and monitoring compliance with legal and regulatory requirements[54] Risk Management - The company has established a clear internal audit and control system to enhance governance and risk management[81] - The risk management framework includes regular audits and assessments to identify and mitigate potential business risks[83] - The board is committed to maintaining and upgrading the risk management and internal control systems to align with the company's strategic goals[80] - The group has implemented measures to monitor overdue debts and ensure adequate provisions for impairment losses on receivables[195] Shareholder Information - The company plans to maintain a cash dividend of 55% of core net profit, with a dividend per share of RMB 0.143, resulting in a dividend yield of approximately 8%[12] - The proposed final dividend for the year ending December 31, 2023, is RMB 0.143 per share, totaling approximately RMB 437 million[96] - The company has established a shareholder communication policy to enhance investor relations and ensure timely and accurate information disclosure[88] - The board confirmed that there were no significant acquisitions or disposals of subsidiaries, associates, or joint ventures during the fiscal year ending December 31, 2023[91] Employee and Management - The employee cost for the year ended December 31, 2023, was approximately RMB 2.73 billion[146] - The company employed 26,795 employees as of December 31, 2023[146] - The company has adopted a share incentive plan on June 11, 2021, to enhance employee motivation[146] - The board believes that the company has complied with the corporate governance code during the year ended December 31, 2023[141] Environmental and Social Responsibility - The company is committed to long-term sustainability and has implemented relevant environmental protection measures[143] - The group made charitable donations of approximately RMB 649,629 for the year ended December 31, 2023, compared to RMB 1,428,500 in 2022[148]

Financial Performance - The group's revenue for the year ended December 31, 2023, was approximately RMB 7.01 billion, a year-on-year decrease of about 1.6%; excluding non-owner value-added services, core business revenue grew by approximately 9.2%, accounting for about 94.6% of total revenue[2] - The group's gross profit was approximately RMB 1.67 billion, a year-on-year increase of about 4.0%; excluding non-owner value-added services, core business gross profit increased by approximately 5.2%, accounting for about 97.1% of total gross profit[2] - The loss attributable to the company's owners was approximately RMB 435 million, a year-on-year decrease of about 9.7%; core net profit attributable to the company's owners was approximately RMB 793 million, a year-on-year increase of about 3.0%[2] - The net cash flow generated from operating activities was approximately RMB 862 million, compared to a net cash outflow of approximately RMB 395 million in the same period last year; available funds amounted to approximately RMB 4.44 billion[2] - The total revenue for the year ended December 31, 2023, was RMB 7,009,517,000, slightly down from RMB 7,126,161,000 in 2022, representing a decrease of approximately 1.6%[18] - The company reported a net loss attributable to owners of the company of RMB (435,068,000) for the year ended December 31, 2023, compared to a net loss of RMB (481,902,000) in 2022, indicating an improvement of about 9.7%[23] - The company's total expenses for the year were RMB 6,888,967,000, down from RMB 7,906,953,000 in 2022, reflecting a decrease of about 12.8%[20] - The net loss for the year ended December 31, 2023, was approximately RMB 393.2 million, compared to a net loss of approximately RMB 462.4 million in the previous year[57] Assets and Liabilities - Non-current assets totaled approximately RMB 2.91 billion, a decrease from RMB 3.38 billion in the previous year[8] - Total assets amounted to approximately RMB 11.64 billion, down from RMB 12.49 billion in the previous year[8] - Total liabilities increased to approximately RMB 5.41 billion from RMB 4.72 billion in the previous year[9] - The company's equity attributable to owners decreased to approximately RMB 6.04 billion from RMB 7.60 billion in the previous year[8] - The carrying amount of goodwill as of December 31, 2023, is RMB 1,214.85 million, down from RMB 1,687.54 million at the beginning of the year, reflecting a goodwill impairment of approximately RMB 472.69 million[30] - The company's intangible assets as of December 31, 2023, were approximately RMB 1,601.3 million, a decrease of about RMB 501.1 million from RMB 2,102.4 million in the previous year[58] Revenue Breakdown - Revenue from property management and operation services was approximately RMB 6,158.6 million, an increase of about RMB 645.2 million (approximately 11.7%) compared to RMB 5,513.4 million in 2022[42] - The proportion of revenue from property management and operation services increased by 10.4 percentage points to approximately 87.8% due to an increase in managed building area[41] - Community living services revenue was approximately RMB 473.8 million, a decrease of about RMB 86.9 million (approximately 15.5%) from RMB 560.7 million in 2022[45] - Revenue from non-owner value-added services decreased significantly, contributing to the overall revenue decline[41] - The revenue from third-party sources increased by 10.2% to RMB 6,439.28 million, while revenue from related parties decreased by 55.6% to RMB 570.24 million[39] Dividends - The board proposed a final dividend of RMB 0.143 per share, totaling approximately RMB 437 million, which is about 55% of the core net profit attributable to the company's owners[2] - The proposed final dividend per share for the year ending December 31, 2023, is RMB 0.143, totaling approximately RMB 437.13 million, an increase from RMB 418.79 million in 2022[25] - The total dividend paid in 2023 was approximately RMB 1,098.61 million, with a per share dividend of RMB 0.137 and HKD 0.235, compared to RMB 381.64 million in 2022 with a per share dividend of RMB 0.124[24] Operational Efficiency - The average revenue per employee increased by 47% to RMB 18,000 per person per month, despite a slight decline in overall revenue, while gross profit rose by 11% year-on-year[67] - The active user rate of the company's digital tools increased from 23% in 2022 to 44% in 2023, enhancing customer satisfaction and operational efficiency[66] - The group achieved a reduction in losses exceeding RMB 40 million through various operational initiatives, with an average price increase of over 20% across multiple projects[66] Strategic Focus - The company adjusted its business direction in early 2023, focusing on sustainable development and core cities, resulting in a year-on-year revenue decline[67] - The strategic focus will remain on core cities and large clients, with an emphasis on refining competitive strategies and improving process management[68] - The company anticipates significant growth opportunities in life services, with plans to replicate successful business models in densely populated cities[68] Governance and Compliance - The company has adopted the corporate governance code as per the listing rules and has complied with all applicable provisions for the year ending December 31, 2023[77] - The audit committee consists of three independent non-executive directors, with Mr. Yao Ning serving as the chairman, who has professional accounting qualifications[78] - The audit committee has reviewed the accounting principles and practices adopted by the company and discussed matters related to audit, internal control, and risk management systems for the year ending December 31, 2023[79] - The company's auditor, PwC, has confirmed that the financial statements for the year ending December 31, 2023, are consistent with the audited consolidated financial statements[80]

Financial Performance - For the six months ended June 30, 2023, the Group achieved revenue of approximately RMB 3.396 billion, with a gross profit of approximately RMB 848 million, reflecting a decrease compared to the same period in 2022 due to a significant reduction in related party business[7]. - The Group's net profit attributable to owners was approximately RMB 340 million, with net cash flow from operating activities of approximately RMB 6.61 million, marking a turnaround from losses in the previous year[7]. - The company recorded revenue of approximately RMB 3,396.1 million for the six months ended June 30, 2023, a decrease of about RMB 592.5 million (approximately 14.9%) compared to RMB 3,988.6 million for the same period in 2022[12]. - The gross profit for the six months ended June 30, 2023, was approximately RMB 847.5 million, a decrease of about RMB 279.1 million (approximately 24.8%) compared to the same period in 2022[25]. - The net profit for the first half of 2023 was approximately RMB 364.9 million, a turnaround from a net loss of RMB 747.0 million in the same period of 2022[32]. - The total comprehensive income for the six months ended June 30, 2023, was RMB 339,925 thousand, compared to a loss of RMB 750,795 thousand for the same period in the previous year[79]. - The company reported a profit attributable to owners of RMB 339,925 thousand for the first half of 2023, a significant improvement from a loss of RMB 750,795 thousand in the same period of 2022[125]. Revenue Breakdown - Non-related party business revenue was approximately RMB 3.204 billion, representing a year-on-year growth of approximately 13%, with property management services contributing RMB 2.924 billion, an increase of about 8% compared to the previous year[7]. - Property management services accounted for 86.1% of total revenue, an increase of 18.4 percentage points year-on-year, with revenue growth of approximately 8.1% due to an increase in managed building area[14]. - Community living services revenue for the six months ended June 30, 2023, was approximately RMB 246.2 million, a decrease of about RMB 47.8 million (approximately 16.3%) compared to the same period in 2022[18]. - Non-owner value-added services revenue decreased significantly by 76.9% to RMB 203.4 million, attributed to ongoing adjustments in response to the lack of improvement in the real estate industry[14]. - Revenue from property brokerage services for the six months ended June 30, 2023, was approximately RMB 31.9 million, a decrease of about RMB 5.1 million compared to the same period in 2022[20]. - Revenue from commercial operation management services for the six months ended June 30, 2023, was approximately RMB 22.3 million, a decrease of about RMB 87.5 million compared to the same period in 2022[23]. - Revenue from convenience services for the six months ended June 30, 2023, was approximately RMB 110.6 million, a decrease of about RMB 30.8 million compared to the same period in 2022[19]. Cost and Expenses - The sales cost for the six months ended June 30, 2023, was approximately RMB 2,548.5 million, a decrease of about RMB 313.4 million (approximately 10.9%) compared to the same period in 2022[24]. - Administrative expenses for the first half of 2023 were approximately RMB 315.4 million, a decrease of RMB 63.4 million compared to RMB 378.8 million in the same period of 2022, attributed to optimized personnel structure and cost savings[28]. - Employee benefit expenses decreased to RMB 1,351,563 thousand in 2023 from RMB 1,738,201 thousand in 2022, a reduction of 22.2%[117]. Cash Flow and Liquidity - Operating cash flow for the first half of 2023 was a net inflow of approximately RMB 6.6 million, compared to a net outflow of RMB 1,008.9 million in the same period of 2022[36]. - The company’s available funds totaled approximately RMB 4,215.8 million as of June 30, 2023, a decrease of RMB 495.1 million from RMB 4,710.9 million at the end of 2022[35]. - The total cash and cash equivalents at the end of the period was RMB 3,123,176 thousand, down from RMB 3,916,103 thousand at the end of June 30, 2022[82]. - The company paid RMB (427,015) thousand in dividends to shareholders, compared to RMB (381,643) thousand in the same period last year, reflecting a 11.9% increase[82]. Market Expansion and Strategy - The Group's market expansion focused on 45 core cities, which accounted for about 80% of the managed area, with a property fee unit price reaching approximately RMB 3 per square meter per month[8]. - New annual saturated revenue from market expansion in the first half of the year was approximately RMB 200 million, with the top 5 cities accounting for 65% of the new signed contracts[8]. - The company plans to focus on 45 core cities for market expansion, emphasizing high-quality development and risk-reward balance[10]. - The company plans to allocate unutilized listing proceeds towards strategic investments and acquisitions related to property management and community operations[69]. Corporate Governance and Compliance - The company has adopted the corporate governance code as per the Stock Exchange Listing Rules and has complied with all applicable provisions as of June 30, 2023[39]. - The company emphasizes good corporate governance and regularly discusses performance and operational strategies at board meetings[39]. - The audit committee has reviewed the interim financial results for the six months ended June 30, 2023, ensuring compliance with relevant accounting standards[72]. Share Incentive Plan - The company has a share incentive plan that allows eligible participants to receive shares, with approximately 428,559,250 shares held in trust, representing about 14.02% of the issued shares as of June 30, 2023[46]. - The share incentive plan is valid for ten years from the date of the first grant, with about eight years remaining[44]. - During the six months ended June 30, 2023, 2,908,000 shares vested under the share incentive plan[54]. - The total number of shares granted to selected participants includes 2,800,000 shares for directors and 10,275,000 shares for other eligible participants[55]. Trade Receivables and Impairment - The total expected loss provision for trade and other receivables as of June 30, 2023, was RMB 1,802.68 million, up from RMB 1,777.08 million at the beginning of the year, indicating a slight increase[98]. - The expected loss provision for trade receivables (including receivables from related parties) totaled RMB 222.93 million, compared to RMB 148.22 million as of December 31, 2022, reflecting an increase of approximately 50%[93]. - The expected loss rates for third-party trade receivables as of June 30, 2023, were 4% for 1 year, 19% for 1 to 2 years, and 72% for over 5 years, indicating a significant increase in risk assessment compared to the previous year[93]. - The management believes that other receivables have low credit risk due to the strong ability of issuers to fulfill cash flow obligations[95]. Assets and Liabilities - As of June 30, 2023, total assets amounted to RMB 12,513,503 thousand, a slight increase from RMB 12,493,457 thousand as of December 31, 2022, reflecting a growth of approximately 0.16%[76]. - Total liabilities increased to RMB 4,796,291 thousand from RMB 4,724,428 thousand, marking an increase of about 1.52%[77]. - The company's equity attributable to owners decreased from RMB 7,769,029 thousand to RMB 7,717,212 thousand, a decline of approximately 0.67%[77]. - The total amount of other receivables was RMB 979,831, a decrease from RMB 1,030,203 as of December 31, 2022[139]. Future Outlook - The company plans to continue expanding its market presence and investing in new technologies to drive future growth[79]. - The company expects revenue growth rates for its cash-generating units to range from 7.77% to 13.56% for the first unit and 3.65% to 18.56% for the second unit[134].

Financial Performance - The group's revenue for the six months ended June 30, 2023, was approximately RMB 3.396 billion, a decrease of about 15% compared to the same period last year[2]. - Property management service revenue was approximately RMB 2.924 billion, an increase of about 8% year-on-year[2]. - The group's gross profit was approximately RMB 848 million, down about 25% year-on-year, while property management service gross profit increased by about 4% to RMB 726 million[2]. - The net profit attributable to the owners of the company was approximately RMB 340 million, compared to a loss of RMB 751 million in the same period last year[2]. - Total revenue for the six months ended June 30, 2023, was RMB 3,252,371 thousand, a decrease of 13.9% compared to RMB 3,777,898 thousand for the same period in 2022[13]. - Basic earnings per share for the six months ended June 30, 2023, were RMB 0.11, compared to a loss of RMB 0.24 in the same period of 2022[20]. - The company reported a profit attributable to owners of RMB 339,925 thousand for the six months ended June 30, 2023, recovering from a loss of RMB 750,795 thousand in the previous year[20]. - For the six months ended June 30, 2023, the group's net profit was approximately RMB 364.9 million, a significant improvement from a net loss of approximately RMB 747.0 million for the same period in 2022[48]. Revenue Breakdown - Revenue from property management services was approximately RMB 2,924.1 million, an increase of about RMB 220.0 million (approximately 8.1%) compared to RMB 2,704.0 million for the same period in 2022[31]. - Revenue from non-owner value-added services decreased significantly by approximately RMB 677.2 million (approximately 76.9%) to RMB 203.4 million from RMB 880.6 million in the previous year[29]. - Community service revenue for the six months ended June 30, 2023, was approximately RMB 110.6 million, a decrease of about RMB 30.8 million (approximately 21.8%) compared to the same period in 2022[35]. - Real estate brokerage service revenue was approximately RMB 31.9 million, a decrease of about RMB 5.1 million (approximately 13.8%) compared to the same period in 2022[36]. - Home service revenue was approximately RMB 29.6 million, a decrease of about RMB 13.1 million (approximately 30.5%) compared to the same period in 2022[36]. - Non-owner value-added service revenue was approximately RMB 203.4 million, a decrease of about RMB 677.2 million (approximately 76.9%) compared to the same period in 2022[37]. Cash Flow and Financial Position - The net cash flow generated from operating activities was approximately RMB 6.61 million, a significant improvement from a net cash outflow of RMB 1.009 billion in the same period last year[2]. - The group's available funds amounted to approximately RMB 4.216 billion, which includes cash and cash equivalents, restricted funds, and bank deposits maturing in over three months[2]. - The total assets of the group as of June 30, 2023, were approximately RMB 12.514 billion, compared to RMB 12.493 billion as of December 31, 2022[6]. - The total liabilities of the group were approximately RMB 4.796 billion, compared to RMB 4.724 billion as of December 31, 2022[7]. - The group's cash flow from operating activities for the six months ended June 30, 2023, was a net inflow of approximately RMB 6.6 million, a significant improvement from a net outflow of approximately RMB 1,008.9 million for the same period in 2022[52]. - The group's trade and other receivables as of June 30, 2023, amounted to approximately RMB 4.911 billion, an increase of approximately RMB 542.3 million compared to December 31, 2022[49]. - The group's trade and other payables as of June 30, 2023, were approximately RMB 2.749 billion, a slight increase of approximately RMB 7.9 million compared to December 31, 2022[50]. Cost and Expenses - Total expenses for the six months ended June 30, 2023, were RMB 2,940,310 thousand, down 42.5% from RMB 5,120,416 thousand in the same period of 2022[17]. - Employee benefit expenses decreased to RMB 1,351,563 thousand from RMB 1,738,201 thousand, reflecting a reduction of 22.2%[17]. - Administrative expenses for the six months ended June 30, 2023, were approximately RMB 315.4 million, a decrease of about RMB 63.4 million compared to RMB 378.8 million for the same period in 2022[44]. - Sales and marketing expenses for the six months ended June 30, 2023, were approximately RMB 38.0 million, a decrease of about RMB 8.3 million compared to RMB 46.3 million for the same period in 2022[45]. - Total sales cost for the six months ended June 30, 2023, was approximately RMB 2,548.5 million, a decrease of about RMB 313.4 million (approximately 10.9%) compared to the same period in 2022[40]. - Gross profit for the six months ended June 30, 2023, was approximately RMB 847.5 million, a decrease of about RMB 279.1 million (approximately 24.8%) compared to the same period in 2022[41]. - Gross margin for the six months ended June 30, 2023, was approximately 25.0%, a decrease of about 3.2 percentage points compared to 28.2% for the same period in 2022[41]. Business Operations and Strategy - The area under management as of June 30, 2023, was approximately 263 million square meters, with residential properties accounting for 82%[31]. - The company plans to continue adjusting its non-owner value-added services in response to the lack of significant improvement in the real estate industry[30]. - The market expansion focused on 45 core cities, which accounted for approximately 80% of the group's managed construction area, with property fees in these cities reaching about RMB 3 per square meter per month[56]. - In the first half of the year, the group achieved a new annual saturated income of approximately RMB 200 million from market expansion, with the top 5 cities contributing 65% of the new signed contracts[56]. - The overall penetration rate of community convenience services in core cities increased by about 1.1 percentage points, and the total value of core resources rose by approximately 124% year-on-year[57]. - The average monthly employee efficiency in real estate brokerage improved by about 60% compared to 2022, while the share of existing home business revenue increased to approximately 48%[57]. - The group emphasized digital transformation, focusing on smart services and management, with significant investments in remote monitoring systems and management dashboards[57]. - For the second half of 2023, the group plans to continue focusing on high-quality development in the 45 core cities and strengthen resource integration and public relations governance[58]. - The group will maintain a sustainable business development goal, focusing on core quality cities and optimizing the main linkage mechanism to leverage property advantages[58]. Governance and Compliance - The company has adopted the corporate governance code and has complied with all applicable provisions during the reporting period[60]. - The Audit Committee consists of three independent non-executive directors, chaired by Mr. Yao Ning, who is a qualified accountant[61]. - The Audit Committee reviewed the company's accounting principles and practices, discussing matters related to audit, internal control, and risk management systems for the six months ending June 30, 2023[61]. - The independent auditor, PwC, conducted a review of the interim financial results for the six months ending June 30, 2023, in accordance with the relevant standards[61]. - The interim report for the six months ending June 30, 2023, will be sent to shareholders and published on the company's website at an appropriate time[62]. - The board of directors includes Mr. Wang Mengde as the chairman and other executive and non-executive directors[63].