众安智慧生活(02271) - 2024 - 中期业绩

Financial Highlights Financial Highlights For the six months ended June 30, 2024, the company's revenue increased by 9.9% to RMB 182.15 million, while profit for the period decreased by 7.5% to RMB 14.26 million, with total assets and net assets slightly increasing compared to the end of 2023 Key Financial Indicators for Interim 2024 | Indicator | For the six months ended June 30, 2024 (RMB Thousand) | For the six months ended June 30, 2023 (RMB Thousand) | Change | | :--- | :--- | :--- | :--- | | Revenue | 182,145 | 165,760 | 9.9% | | Gross Profit | 57,711 | 55,970 | 3.1% | | Profit for the Period | 14,260 | 15,414 | -7.5% | | Profit Attributable to Owners of the Parent | 14,354 | 15,387 | -6.7% | | Indicator | As of June 30, 2024 (RMB Thousand) | As of December 31, 2023 (RMB Thousand) | Change | | Total Assets | 415,004 | 410,085 | 1.2% | | Net Assets | 276,363 | 274,756 | 0.6% | Interim Condensed Consolidated Financial Statements Consolidated Statement of Profit or Loss and Other Comprehensive Income During the reporting period, the company's revenue was RMB 182.15 million, a 9.9% year-on-year increase; however, due to increased cost of sales and administrative expenses, profit before tax decreased to RMB 19.08 million, and profit for the period ultimately fell by 7.5% to RMB 14.26 million Summary of Interim Income Statement 2024 | Item | 2024 Half-Year (RMB Thousand) | 2023 Half-Year (RMB Thousand) | | :--- | :--- | :--- | | Revenue | 182,145 | 165,760 | | Cost of Sales | (124,434) | (109,790) | | Gross Profit | 57,711 | 55,970 | | Administrative Expenses | (37,353) | (32,959) | | Profit Before Tax | 19,077 | 21,426 | | Profit for the Period | 14,260 | 15,414 | | Profit Attributable to Owners of the Parent | 14,354 | 15,387 | | Basic Earnings Per Share | RMB 2.77 cents | RMB 2.97 cents | Consolidated Statement of Financial Position As of June 30, 2024, the company's total assets were RMB 415.00 million and net assets were RMB 276.36 million, largely consistent with the end of 2023, with current assets forming the majority, primarily trade receivables and cash and cash equivalents Summary of Statement of Financial Position as of June 30, 2024 | Item | June 30, 2024 (RMB Thousand) | December 31, 2023 (RMB Thousand) | | :--- | :--- | :--- | | Total Assets | 415,004 | 410,085 | | Total Non-current Assets | 8,697 | 7,703 | | Total Current Assets | 406,307 | 402,382 | | Total Liabilities | 138,641 | 135,329 | | Net Assets | 276,363 | 274,756 | | Total Equity | 276,363 | 274,756 | Notes to the Interim Condensed Consolidated Financial Information Company Information, Operating Segments, and Revenue Analysis The company primarily provides property management, value-added services to property developers, and community value-added services in China, with all operations managed as a single segment; total revenue for the period was RMB 182.15 million, driven mainly by a 24.1% increase in property management services, while developer-focused value-added services significantly declined, and revenue from related party ZhongAn Group decreased from 25.16% to 14.02% of total revenue - The Group primarily provides property management services, value-added services mainly to property developers, and community value-added services in China[5] Revenue by Business Segment | Service Type | 2024 Half-Year Revenue (RMB Thousand) | 2023 Half-Year Revenue (RMB Thousand) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Property Management Services | 153,423 | 123,614 | +24.1% | | Value-added Services Mainly to Property Developers | 18,099 | 31,731 | -43.0% | | Community Value-added Services | 10,623 | 10,415 | +2.0% | | Total | 182,145 | 165,760 | +9.9% | - Revenue from the remaining ZhongAn Group, a related party, decreased from 25.16% of total revenue in the prior period to 14.02%[12] Profit Before Tax and Income Tax Profit before tax for the reporting period was RMB 19.08 million, with major expenses including RMB 124.43 million in cost of services and RMB 107.47 million in staff wages and salaries; income tax expense was RMB 4.82 million, resulting in an effective tax rate of 25.3% Key Expense Items | Item | 2024 Half-Year (RMB Thousand) | 2023 Half-Year (RMB Thousand) | | :--- | :--- | :--- | | Cost of Services Provided | 124,434 | 109,790 | | Staff Wages and Salaries | 107,467 | 90,810 | | Impairment of Trade Receivables | 3,862 | 2,274 | - The Group's subsidiaries in China are subject to enterprise income tax at a rate of 25%, with total income tax expense for the reporting period amounting to RMB 4.817 million[16][17] Dividends and Earnings Per Share The Board does not recommend an interim dividend for 2024; basic and diluted earnings per share attributable to ordinary equity holders of the parent for the reporting period were RMB 2.77 cents, lower than RMB 2.97 cents in the prior period - The Board does not recommend the payment of an interim dividend for the current reporting period[51] - The company approved a final dividend for 2023 in June 2024, amounting to RMB 2.45 cents per ordinary share, totaling approximately RMB 12.653 million[17] Earnings Per Share Calculation | Item | 2024 Half-Year | 2023 Half-Year | | :--- | :--- | :--- | | Profit Attributable to Ordinary Equity Holders of the Parent (RMB Thousand) | 14,354 | 15,387 | | Weighted Average Number of Ordinary Shares in Issue | 517,414,000 | 517,414,000 | | Basic Earnings Per Share | RMB 2.77 cents | RMB 2.97 cents | Trade and Other Receivables and Payables As of June 30, 2024, total trade receivables amounted to RMB 135.90 million, an increase from the end of 2023, with the largest portion aged within six months; total trade payables were RMB 3.49 million, mostly aged within three months Aging Analysis of Trade Receivables | Aging | June 30, 2024 (RMB Thousand) | December 31, 2023 (RMB Thousand) | | :--- | :--- | :--- | | Within six months | 74,076 | 64,591 | | Six months to one year | 29,609 | 25,818 | | One to two years | 27,372 | 23,040 | | Two to three years | 4,838 | 3,085 | | Total | 135,895 | 116,534 | Management Discussion and Analysis Company Overview The Group is a comprehensive property management service provider with over 25 years of experience, deeply rooted in Zhejiang Province and the Yangtze River Delta region, managing approximately 18.03 million square meters as of June 30, 2024, and improving its ranking among China's top 100 property service enterprises from 82nd in 2016 to 37th in 2024, while expanding to independent third-party clients and benefiting from ongoing support from its parent company, ZhongAn Group - The company's ranking among China's Top 100 Property Service Enterprises improved from 82nd in 2016 to 37th in 2024[23] Operational Scale as of June 30, 2024 | Item | Quantity/Area | | :--- | :--- | | Contracted Projects | 144 | | Contracted GFA | Approx. 21.76 million sq.m. | | Projects Under Management | 123 | | GFA Under Management | Approx. 18.03 million sq.m. | - The company is expanding into non-residential properties, such as commercial, office buildings, and public spaces, while continuously investing in smart service development, including smart fire safety, security, and robot applications[25][26] Future Outlook Looking ahead, the Group will adhere to its '1+9' strategy, focusing on core basic services while vigorously developing community living services, with strategic priorities including expanding business scale and market share, deepening its presence in Zhejiang Province and the Yangtze River Delta region through organic growth and M&A, and strengthening its focus on non-residential property types - Future strategies include: - Adhering to the '1+9' strategy, strengthening basic services, and developing community living services - Expanding business scale and consolidating market position in Zhejiang Province through organic growth and mergers and acquisitions - Continuously focusing on non-residential property types, such as government office buildings, industrial parks, hospitals, and schools - Leveraging brand image for extensive strategic cooperation with real estate development companies[27][28] Financial Review During the reporting period, total revenue grew by 9.9%, primarily driven by a 24.1% increase in property management service revenue; however, value-added services to developers saw a significant 43.0% decline, and rising staff costs led to cost of sales growing faster than revenue, resulting in a decrease in overall gross profit margin from 33.8% to 31.7% and a 7.5% year-on-year decline in net profit Revenue Analysis Total revenue increased by 9.9% to RMB 182.15 million, with core property management service revenue growing by 24.1% primarily due to a 25.0% increase in GFA under management, while value-added services to developers decreased by 43.0% due to reduced sales office management services, and community value-added services saw a slight 2.0% increase Revenue Breakdown by Business Line | Business Line | 2024 Half-Year Revenue (RMB Thousand) | % of Total Revenue | 2023 Half-Year Revenue (RMB Thousand) | % of Total Revenue | | :--- | :--- | :--- | :--- | :--- | | Property Management Services | 153,423 | 84.2% | 123,614 | 74.6% | | Value-added Services Mainly to Property Developers | 18,099 | 10.0% | 31,731 | 19.1% | | Community Value-added Services | 10,623 | 5.8% | 10,415 | 6.3% | | Total | 182,145 | 100.0% | 165,760 | 100.0% | - Property management service revenue increased by 24.1%, primarily due to a 25.0% year-on-year increase in total GFA under management from 14.4 million sq.m. to 18.0 million sq.m.[30] - Revenue from value-added services mainly to property developers decreased by 43.0%, primarily due to a reduction in sales office management services for property projects[36] Cost and Gross Profit Margin Analysis Cost of sales increased by 13.3% year-on-year to RMB 124.43 million, outpacing revenue growth, primarily due to a 19.9% increase in staff costs, which led to a decline in the overall gross profit margin from 33.8% in the prior period to 31.7% - Cost of sales increased by 13.3% year-on-year, mainly due to staff costs included in cost of sales rising from RMB 81.3 million to RMB 97.5 million, an increase of 19.9%[38] Gross Profit Margin by Business Line | Business Line | 2024 Half-Year Gross Profit Margin | 2023 Half-Year Gross Profit Margin | | :--- | :--- | :--- | | Property Management Services | 30.0% | 31.2% | | Value-added Services Mainly to Property Developers | 41.2% | 41.3% | | Community Value-added Services | 40.1% | 41.5% | | Total | 31.7% | 33.8% | Profitability Analysis Due to increased costs and expenses, the company's net profit decreased by 7.5% year-on-year to RMB 14.3 million, with net profit margin falling from 9.3% to 7.8%; profit attributable to owners of the parent decreased by 6.7% year-on-year to RMB 14.4 million - Net profit for the reporting period was approximately RMB 14.3 million, a 7.5% decrease from RMB 15.4 million in the prior period[43] - The net profit margin was 7.8%, a 1.5 percentage point decrease from 9.3% in the prior period[43] Liquidity and Capital Resources The company maintains a robust financial position with no bank borrowings and a zero gearing ratio as of the reporting period end; cash and cash equivalents stood at RMB 148.00 million, a decrease from the beginning of the year, while the current ratio remained healthy at 2.9 times - As of June 30, 2024, cash and cash equivalents amounted to approximately RMB 148.00 million, a 16.4% decrease from RMB 177.00 million at the end of 2023[44] - The Group has no bank borrowings, resulting in a zero gearing ratio, and its current ratio is 2.9 times[44] Employees and Remuneration Policy As of June 30, 2024, the Group had 2,991 employees, an increase from 2,845 in the prior period, offering competitive remuneration and continuous professional training - As of June 30, 2024, the Group had a total of 2,991 employees, representing a 5.1% year-on-year increase[48] Corporate Governance and Other Disclosures Corporate Governance and Audit Committee The company has adopted and complied with the Corporate Governance Code; the Audit Committee, comprising three independent non-executive directors, has reviewed the unaudited interim financial information for the period and deemed the company's risk management and internal control systems effective and adequate - The company has complied with all applicable code provisions set out in the Corporate Governance Code throughout the reporting period[52] - The Audit Committee has reviewed the unaudited interim condensed consolidated financial information for the reporting period and discussed it with management[53]