Financial Performance - For the year ended December 31, 2023, the total contracted area of the group was approximately 800 million square meters, with managed area of approximately 532 million square meters, and new third-party contracts signed amounted to approximately 23.09 million square meters[7]. - The group achieved a revenue of approximately RMB 12,486.5 million, representing a year-on-year growth of approximately 5.7%; community living services generated revenue of approximately RMB 809.3 million, up approximately 29.7% year-on-year[7]. - Gross profit for the year was approximately RMB 3,108.4 million, reflecting a year-on-year increase of approximately 14.3%, with a gross margin of approximately 24.9%, an increase of about 1.9 percentage points year-on-year[7]. - Net profit for the year was approximately RMB 1,563.8 million, with a net margin of approximately 12.5%, remaining stable compared to 2022[7]. - The group’s profit attributable to owners was approximately RMB 1,541.2 million, with basic earnings per share of approximately RMB 0.14[7]. - Community group buying revenue increased by approximately 138.7% compared to 2022[14]. - Home service brand "Jinbi Daijia" achieved a revenue growth of about 46.8% year-on-year[14]. - Property rental and sales business revenue grew by approximately 97.1% compared to 2022[15]. - Revenue from property management services was approximately RMB 10,318.5 million, a year-on-year increase of about 8.3%[26]. - Asset management services revenue was approximately RMB 740.4 million, reflecting a year-on-year growth of about 4.6%[30]. - Community operation services revenue decreased by approximately 34.8% to RMB 618.4 million, primarily due to reduced demand for advertising and venue rentals[31]. - The company's sales costs increased by approximately 3.2% to RMB 9,378.1 million, attributed to the expansion of managed areas and diversified business development[33]. - The overall gross profit for the year was approximately RMB 3,108.4 million, with a gross profit margin of about 24.9%, an increase of approximately 1.9 percentage points year-on-year[34]. - The gross profit margin for property management services increased from approximately 19.0% in 2022 to about 21.3% in 2023, a rise of approximately 2.3 percentage points[35]. - The gross profit margin for community living services rose from approximately 21.8% in 2022 to about 24.9% in 2023, an increase of approximately 3.1 percentage points[36]. - The gross profit margin for asset management services increased from approximately 48.2% in 2022 to about 56.6% in 2023, a rise of approximately 8.4 percentage points[36]. - The company's net profit for the year was approximately RMB 1,563.8 million, an increase of about 5.8% compared to RMB 1,478.6 million in 2022, with a net profit margin of approximately 12.5%[23]. - Total revenue for the year reached approximately RMB 12,486.5 million, representing a year-on-year growth of about 5.7%[24]. Business Strategy and Development - The company is focused on high-quality development and sustainable growth, emphasizing operational efficiency and service innovation[7]. - Community living services and asset management services are key growth areas, with significant revenue increases noted in these segments[7]. - The company aims to strengthen customer loyalty and meet the diverse living needs of clients through enhanced service offerings[7]. - The company is transitioning its business model from cooperative operations to self-operated services, enhancing professional service capabilities and establishing a quality management system[9]. - The company is expanding its asset management services, providing integrated operational services to help owners maintain and enhance asset value[10]. - The company is implementing a "City Partner" program to deepen resource integration in second and third-tier cities, aiming for efficient project expansion and profitability[10]. - The company aims to enhance service quality through continuous improvement and innovation, focusing on customer satisfaction and operational efficiency[9]. - The company is focused on asset management to help clients maintain and increase asset value[20]. - The company will continue to leverage its diversified brand strategy to enhance market expansion and service density[21]. - The company aims to enhance customer satisfaction through detailed service improvements and community engagement initiatives[18]. - The company plans to implement the "Urban Cloud Team" initiative in key cities to expand home service operations[19]. - The company has expanded its community service matrix to include community health and tourism services[14]. Corporate Governance - The company emphasizes high standards of corporate governance, adhering to the principles outlined in the Corporate Governance Code as per the Hong Kong Stock Exchange[64]. - The board consists of both executive and non-executive directors, ensuring a diverse range of expertise and oversight[66]. - The company has a strong focus on internal controls and risk management to enhance accountability and performance[64]. - The independent non-executive director Mr. Peng Liaoyuan has over 30 years of legal experience, contributing to the board's independent oversight[60]. - The company has established a risk management framework, with the board as the decision-making body and clear responsibilities for risk management assigned to various levels of management[79]. - The board is responsible for risk management and internal control systems, ensuring effective monitoring and evaluation of risks associated with achieving strategic objectives[78]. - The company has established a whistleblowing procedure for employees, customers, and suppliers to report misconduct anonymously[87]. - The company has mechanisms in place for directors to seek independent professional advice at the company's expense when necessary[71]. - The company has adopted a board diversity policy to ensure a balance of skills, experience, and perspectives among board members[96]. - The board believes that the gender ratio among employees is appropriately balanced and is committed to promoting gender diversity in the workforce[98]. - The company has made appropriate insurance arrangements for its directors and senior management against legal claims arising from corporate activities[67]. - The board has complied with listing rules regarding the appointment of at least three independent non-executive directors, who constitute at least one-third of the board[70]. - The board held a total of 9 meetings during the year ending December 31, 2023, with proper notice given at least 14 days prior to regular meetings[73]. - All directors participated in continuous professional development training, ensuring compliance with corporate governance code C.1.4[76]. Risk Management - The group faced significant operational risks due to industry regulatory environments and potential impacts from the liquidation of its controlling shareholder[50][51]. - The group has taken measures to address going concern uncertainties, including strict management control and negotiations for payment extensions with suppliers[53]. - The company is addressing significant uncertainties related to its ability to continue as a going concern, as highlighted in the auditor's report[154]. - The board believes that the group will have sufficient working capital to meet its financial obligations until December 31, 2024, based on cash flow forecasts and implemented measures[174]. - The group has actively negotiated with creditors regarding the repayment plans for business combination payables[174]. - The company has established a framework for handling and disclosing insider information, ensuring compliance with securities regulations[88]. - The company has implemented a fraud prevention system, prohibiting all forms of corruption, bribery, extortion, fraud, and money laundering[87]. - The risk management process includes identification, assessment, response, monitoring, and reporting of risks to systematically manage and mitigate them[82]. - The company has a robust internal audit function that monitors and evaluates the effectiveness of risk management practices[86]. - The audit committee reviewed the resources and qualifications of accounting, internal audit, and financial reporting functions, deeming them sufficient[86]. Employee and Training - The total employee cost for the year was approximately RMB 5,627.7 million, with a workforce of 91,482 employees as of December 31, 2023[55]. - The group implemented a three-tier training mechanism, achieving a total training time of 1.375 million hours, with an average of 15.0 hours of training per employee[56]. - The company aims to enhance its talent strategy by combining internal training and external recruitment to support sustainable development[22]. Shareholder and Investor Relations - The company has established a shareholder communication policy to ensure that shareholders receive company information equally and timely[108]. - The company emphasizes communication with institutional investors to enhance transparency and gather feedback[109]. - The company has adopted a dividend policy to declare dividends annually when circumstances permit, considering distributable profits, financial condition, and future development needs[101]. - As of December 31, 2023, the company's distributable reserves were approximately RMB -474.6 million, and no final dividend was recommended for the fiscal year[117]. - The largest customer accounted for approximately 0.4% of the company's revenue for the fiscal year ending December 31, 2023, while the top five customers contributed about 1.3%[118]. - Total procurement from the largest and top five suppliers represented approximately 1.5% and 4.1% of the company's total procurement for the year, respectively[118]. Financial Position and Assets - Total assets as of December 31, 2023, amounted to RMB 8,246,416 thousand, an increase from RMB 7,147,771 thousand in 2022, indicating a growth of 15.4%[166]. - Current assets totaled RMB 5,969,668 thousand, up from RMB 4,895,244 thousand in the previous year, reflecting a growth of 21.9%[166]. - Cash and cash equivalents increased to RMB 1,880,850 thousand from RMB 1,567,979 thousand, marking a rise of 19.9%[166]. - Total liabilities decreased from RMB 8,660,536 thousand in 2022 to RMB 8,227,205 thousand in 2023, a reduction of approximately 5%[167]. - Current liabilities decreased from RMB 8,216,601 thousand in 2022 to RMB 7,876,937 thousand in 2023, representing a decline of about 4%[167]. - The company’s total non-current liabilities decreased from RMB 443,935 thousand in 2022 to RMB 350,268 thousand in 2023, a reduction of approximately 21%[167]. - The carrying amount of trade receivables and other receivables as of December 31, 2023, was RMB 3,508,637,000, with a credit loss provision of RMB 140,172,000 recognized in the profit and loss statement for the year[156]. - The group’s net current liabilities and net assets were approximately RMB 1,907,269,000 and RMB 19,211,000, respectively, compared to RMB 3,321,357,000 and RMB 1,512,765,000 as of December 31, 2022[174]. Audit and Compliance - The company appointed a new auditor, Shinewing (HK) CPA Limited, effective January 16, 2023, following the resignation of PwC[151]. - The audit opinion does not cover other information included in the annual report, which is the responsibility of the company's directors[161]. - The company has confirmed that all independent non-executive directors have reviewed the related party transactions and found them to be fair and reasonable[138]. - The company has established procedures to ensure compliance with applicable laws and regulations, with the board responsible for overseeing these policies[112]. - The company has maintained sufficient public float as required by the listing rules, according to available public information[150]. - The external auditor's annual audit fee for the financial statements was RMB 4.9 million, while the fee for non-audit services was approximately RMB 2.0 million[90]. Investments and Acquisitions - There were no significant investments or acquisitions involving subsidiaries, associates, or joint ventures during the year[57]. - The company has not entered into any management or administrative contracts for the management of its business during the fiscal year ending December 31, 2023[122]. - The company has not participated in any arrangements that would allow directors to benefit from acquiring shares or bonds of the company or any other entity during the year[126]. Share Options and Equity - The company has adopted a share option plan allowing for the issuance of up to 1,081,081,100 shares, representing 10% of the total shares issued as of May 10, 2021[124]. - The maximum number of share options that can be granted under the plan is limited to 1% of the issued shares in any twelve-month period[124]. - As of December 31, 2023, the company has not granted any share options under the plan since its adoption[125]. - Major shareholder Dr. Xu Jiayin holds 5,590,229,000 shares, representing 51.71% of the total shares[133]. - The company has no outstanding equity-linked agreements other than the share option plan as of December 31, 2023[126]. - The board has the discretion to determine the exercise price of the share options, which will not be lower than the official closing price on the grant date[125]. Sustainability and Community Engagement - The company emphasizes a commitment to social responsibility, engaging in various community support activities, and receiving widespread praise from government and community stakeholders[8]. - The company is focusing on community engagement through initiatives like the "Red Property" model, integrating property management with grassroots governance[11]. - The company is actively promoting community activities to foster engagement and enhance the quality of life for residents[12]. - The company is committed to sustainable development and has adhered to relevant environmental protection laws and regulations in its operations[113]. - The company has implemented a smart information platform to enhance customer experience and operational efficiency by facilitating online interactions between customers and property managers[114].
恒大物业(06666) - 2023 - 年度财报