金茂服务(00816) - 2024 - 中期业绩

Company Overview and Financial Summary Interim Results Summary Jinmao Services' interim results for H1 2024 show growth in revenue, gross profit, and profit for the period, with profit up 21.9% year-on-year, expanded GFA, and an interim dividend declaration 2024 H1 Key Financial and Operational Metrics | Metric | H1 2024 (RMB million) | H1 2023 (RMB million) | Y-o-Y Growth (%) | | :--- | :--- | :--- | :--- | | Total Revenue | 1,491.4 | 1,353.3 | 10.2 | | Gross Profit | 366.4 | 357.4 | 2.5 | | Profit for the Period | 181.0 | 148.5 | 21.9 | | EPS (RMB) | 0.19 | 0.16 | 18.8 | | Contracted GFA (million sq.m.) | 117.4 | 94.5 (估算) | 24.2 | | GFA Under Management (million sq.m.) | 98.1 | 71.0 (估算) | 38.2 | | Interim Dividend (HKD/share) | 0.084 | N/A | - | Interim Condensed Consolidated Financial Statements Interim Condensed Consolidated Statement of Profit or Loss For H1 2024, Group revenue grew 10.2% to RMB 1,491.4 million, gross profit rose 2.5% to RMB 366.4 million, profit for the period increased 21.9% to RMB 181.0 million, and basic EPS was RMB 0.19 Interim Condensed Consolidated Statement of Profit or Loss Summary | Metric | H1 2024 (RMB thousand) | H1 2023 (RMB thousand) | | :--- | :--- | :--- | | Revenue | 1,491,371 | 1,353,342 | | Cost of Sales | (1,124,924) | (995,987) | | Gross Profit | 366,447 | 357,355 | | Other Income and Gains | 8,881 | 13,184 | | Selling and Distribution Expenses | (18,287) | (23,680) | | Administrative Expenses | (85,056) | (135,243) | | Other Expenses | (32,863) | (11,892) | | Finance Costs | (4,049) | (2,123) | | Profit Before Tax | 235,073 | 197,601 | | Income Tax Expense | (54,115) | (49,081) | | Profit for the Period | 180,958 | 148,520 | | Profit Attributable to Owners of the Parent | 173,436 | 145,829 | | Profit Attributable to Non-controlling Interests | 7,522 | 2,691 | | Basic and Diluted EPS | RMB 0.19 | RMB 0.16 | Interim Condensed Consolidated Statement of Comprehensive Income For H1 2024, total comprehensive income was RMB 177.3 million, up from RMB 146.4 million last year, driven by increased profit, despite other comprehensive loss from exchange differences Interim Condensed Consolidated Statement of Comprehensive Income Summary | Metric | H1 2024 (RMB thousand) | H1 2023 (RMB thousand) | | :--- | :--- | :--- | | Profit for the Period | 180,958 | 148,520 | | Exchange differences on translation of financial statements of the Company | (3,639) | (2,163) | | Other comprehensive loss for the period, net of tax | (3,639) | (2,163) | | Total comprehensive income for the period | 177,319 | 146,357 | | Total comprehensive income attributable to owners of the parent | 169,797 | 143,666 | | Total comprehensive income attributable to non-controlling interests | 7,522 | 2,691 | Interim Condensed Consolidated Statement of Financial Position As of June 30, 2024, total net assets were RMB 1,635.8 million, non-current assets increased, but a larger increase in current liabilities led to a decrease in net current assets and current ratio Interim Condensed Consolidated Statement of Financial Position Summary | Metric | June 30, 2024 (RMB thousand) | December 31, 2023 (RMB thousand) | | :--- | :--- | :--- | | Non-current Assets | | | | Property, Plant and Equipment | 102,379 | 95,943 | | Investment Properties | 136,979 | 128,206 | | Right-of-use Assets | 38,456 | 27,844 | | Goodwill | 479,874 | 249,122 | | Intangible Assets | 99,032 | 101,746 | | Total Non-current Assets | 883,311 | 615,611 | | Current Assets | | | | Trade Receivables | 1,246,583 | 900,304 | | Cash and Cash Equivalents | 1,285,588 | 1,252,038 | | Total Current Assets | 3,458,817 | 2,998,179 | | Current Liabilities | | | | Trade Payables | 708,251 | 602,850 | | Other Payables and Accrued Expenses | 975,727 | 756,495 | | Contract Liabilities | 644,701 | 486,839 | | Total Current Liabilities | 2,552,679 | 1,908,826 | | Net Current Assets | 906,138 | 1,089,353 | | Total Equity | | | | Net Assets | 1,635,793 | 1,568,017 | Notes to the Interim Condensed Consolidated Financial Information Company Information Jinmao Services, incorporated in Hong Kong in 2020, provides property management and value-added services in China, with China Jinmao as its direct holding company - The company was incorporated in Hong Kong on September 14, 2020, primarily providing property management, non-owner value-added, and community value-added services in China[8] - The direct holding company is China Jinmao Holdings Group Co., Ltd. (a Hong Kong-listed company), and the ultimate holding company is Sinochem Holdings Corporation Ltd. (a state-owned enterprise)[8] Basis of Preparation and Changes in Accounting Policies Interim financial information is prepared under HKAS 34, read with 2023 annual statements, with new HKFRSs adopted having no material financial impact - The interim condensed consolidated financial information is prepared in accordance with HKAS 34 Interim Financial Reporting and should be read in conjunction with the 2023 annual consolidated financial statements[9] - The Group has adopted HKFRS 16 (Amendments), HKAS 1 (Amendments) and HKAS 7 and HKFRS 7 (Amendments) for the first time in the current period, which had no impact on the Group’s financial position or performance[10] Operating Segment Information The Group operates in property management and value-added services, but no segment information is presented due to integrated resources, with all operations in mainland China - The Group primarily engages in providing property management services, non-owner value-added services, and community value-added services, but no operating segment information is presented due to integrated resources[11] - The Group's revenue from customers and non-current assets are derived solely from operations in mainland China[11] Analysis of Revenue, Other Income and Gains For H1 2024, total revenue was RMB 1,491.4 million, driven by property management growth, while non-owner and community value-added services revenue decreased, and other income declined Revenue Analysis (by Service Category) | Service Category | H1 2024 (RMB thousand) | H1 2023 (RMB thousand) | | :--- | :--- | :--- | | Property management services | 1,008,952 | 749,840 | | Non-owner value-added services | 177,056 | 223,571 | | Community value-added services | 295,113 | 373,642 | | Total Revenue from Contracts with Customers | 1,481,121 | 1,347,053 | | Revenue from other sources (operating leases of investment properties) | 10,250 | 6,289 | | Total Revenue | 1,491,371 | 1,353,342 | Other Income and Gains Analysis | Item | H1 2024 (RMB thousand) | H1 2023 (RMB thousand) | | :--- | :--- | :--- | | Bank interest income | 6,354 | 6,147 | | Fair value gain on investment properties | – | 2,009 | | VAT tax incentives | – | 2,919 | | Government grants | 2,214 | 1,956 | | Others | 313 | 153 | | Total | 8,881 | 13,184 | Components of Profit Before Tax Profit before tax components show increased service and goods costs, higher depreciation and amortization, a shift to investment property fair value loss, and increased trade receivables impairment Major Deductions/Additions to Profit Before Tax | Item | H1 2024 (RMB thousand) | H1 2023 (RMB thousand) | | :--- | :--- | :--- | | Cost of services provided | 1,091,472 | 893,264 | | Cost of goods sold | 33,452 | 102,723 | | Depreciation of property, plant and equipment | 16,892 | 7,383 | | Depreciation of right-of-use assets | 6,102 | 4,948 | | Amortisation of intangible assets | 7,960 | 6,466 | | Fair value loss/(gain) on investment properties | 9,386 | (2,009) | | Impairment of trade receivables | 18,427 | 9,909 | Income Tax Income tax expense increased to RMB 54.1 million for H1 2024 due to higher profit before tax, with a 25% tax rate for mainland China operations and 15% for some western subsidiaries - Income tax expense increased by approximately 10.2% from approximately RMB 49.1 million in H1 2023 to approximately RMB 54.1 million in H1 2024[17][35] - Income tax provision for operations in mainland China is calculated at a 25% tax rate, with one subsidiary in a western city enjoying a 15% preferential tax rate[16] Dividends The Board declared an interim dividend of HKD 0.084 per ordinary share for H1 2024, with no dividend declared for the same period last year - The Board declared an interim dividend of HKD 0.084 per ordinary share, totaling approximately RMB 69,319,000[18] - No interim dividend was declared for the six months ended June 30, 2023[18] Earnings Per Share Attributable to Owners of the Parent For H1 2024, basic EPS attributable to owners of the parent was RMB 0.19, up from RMB 0.16, with no potential dilutive ordinary shares EPS Calculation | Metric | H1 2024 | H1 2023 | | :--- | :--- | :--- | | Profit attributable to owners of the parent (RMB thousand) | 173,436 | 145,829 | | Weighted average number of ordinary shares in issue (shares) | 904,189,000 | 904,189,000 | | Basic and diluted EPS (RMB) | 0.19 | 0.16 | - The Group had no potential dilutive ordinary shares outstanding for the six months ended June 30, 2024 and 2023[20] Trade Receivables As of June 30, 2024, net trade receivables increased to RMB 1,246.6 million, mainly from higher third-party receivables due to property management revenue growth, while related party receivables decreased Trade Receivables Composition and Ageing Analysis | Item | June 30, 2024 (RMB thousand) | December 31, 2023 (RMB thousand) | | :--- | :--- | :--- | | Related parties | 299,097 | 361,427 | | Third parties | 993,888 | 566,852 | | Total trade receivables | 1,292,985 | 928,279 | | Less: Impairment allowance | (46,402) | (27,975) | | Net book value | 1,246,583 | 900,304 | | Ageing analysis (net book value): | | | | Within 1 year | 1,046,624 | 750,662 | | 1-2 years | 162,318 | 116,503 | | 2-3 years | 31,011 | 28,343 | | Over 3 years | 6,630 | 4,796 | - Third-party trade receivables, primarily related to property management fees, increased from RMB 566.9 million to RMB 993.9 million, mainly due to increased property management revenue from expanded GFA under management[42] Trade Payables As of June 30, 2024, total trade payables increased to RMB 708.3 million, primarily due to increased procurement of security, cleaning, and facility maintenance services driven by business expansion Trade Payables Composition and Ageing Analysis | Item | June 30, 2024 (RMB thousand) | December 31, 2023 (RMB thousand) | | :--- | :--- | :--- | | Related parties | 8,236 | 5,578 | | Third parties | 700,015 | 597,272 | | Total | 708,251 | 602,850 | | Ageing analysis (total): | | | | Within 1 year | 697,788 | 581,682 | | 1-2 years | 8,660 | 17,913 | | 2-3 years | 1,190 | 1,877 | | Over 3 years | 613 | 1,378 | - The increase in trade payables was primarily due to business expansion, reflecting increased procurement of security and cleaning services, as well as facility and equipment maintenance services[44] Management Discussion and Analysis Business Overview Jinmao Services is a leading high-end property management and urban operation provider in China, managing 582 projects across 70 cities with 98.1 million sq.m. GFA under management as of June 30, 2024 - Jinmao Services is a rapidly growing high-end property management and urban operation service provider in China, ranking 14th among the top 100 property management companies by China Index Academy[24] - As of June 30, 2024, total contracted GFA was approximately 117.4 million sq.m., and GFA under management was approximately 98.1 million sq.m., covering 582 property projects across 70 cities in 24 provinces in China[24] - Service types include property management for residential, commercial, and public properties; non-owner value-added services like sales assistance, consulting, smart parks, and unit repairs; and community value-added services such as home improvement platforms, community living, community space operations, and real estate brokerage[24] Future Outlook The company plans to prioritize high-quality services, active market expansion, optimized value-added business, refined organization, digital empowerment, and compliance for sustainable growth - Adhere to long-termism, building a sustainable development moat with high-quality services, and accelerating the 'service product standardization' project[25] - Persist in active external expansion, deeply cultivating high-tier cities, leveraging the synergies of Sinochem and China Jinmao to accelerate IFM business deployment[25] - Maintain structural optimization, narrowing the scope of value-added businesses, and enhancing product and marketing competitiveness[25] - Commit to digital intelligence empowerment, steadfastly investing in digitalization, and upgrading systems and platforms for digital operational management and service delivery[25] - Uphold compliance and safety, leverage ESG management advantages, maintain healthy cash flow, and actively promote energy saving and carbon reduction[25] Financial Review This section reviews the Group's H1 2024 financial performance, detailing changes in revenue, costs, profit, expenses, and key balance sheet items Revenue Analysis Total revenue grew 10.2% to RMB 1,491.4 million, driven by a 34.6% increase in property management services, while non-owner and community value-added services declined Total Revenue by Business Line | Business Line | H1 2024 (RMB thousand) | Proportion (%) | H1 2023 (RMB thousand) | Proportion (%) | Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | Property management services | 1,008,952 | 67.7 | 749,840 | 55.4 | 34.6 | | Non-owner value-added services | 177,056 | 11.9 | 223,571 | 16.5 | -20.8 | | Community value-added services | 305,363 | 20.4 | 379,931 | 28.1 | -19.6 | | Total | 1,491,371 | 100.0 | 1,353,342 | 100.0 | 10.2 | - Property management services revenue increased by 34.6%, primarily due to the Group's GFA under management increasing from approximately 71.0 million sq.m. to approximately 98.1 million sq.m.[26] - Non-owner value-added services revenue decreased by 20.8%, mainly due to reduced income from new project services. Community value-added services revenue decreased by 19.6%, primarily affected by renovation commencement rates, inventory parking space sales cycles, and owner consumption power[27] Cost of Sales Cost of sales increased 12.9% to RMB 1,124.9 million, consistent with revenue growth, primarily due to more properties under management - Cost of sales increased by approximately 12.9% from approximately RMB 996.0 million to approximately RMB 1,124.9 million[28] - This increase is consistent with the revenue growth trend for the period, mainly due to the increased number of properties under management[28] Gross Profit and Gross Profit Margin Gross profit increased 2.5% to RMB 366.4 million, but gross profit margin decreased to 24.6% due to reduced revenue from higher-margin non-owner value-added services Gross Profit and Gross Profit Margin by Business Line | Business Line | H1 2024 Gross Profit (RMB thousand) | H1 2024 Gross Profit Margin (%) | H1 2023 Gross Profit (RMB thousand) | H1 2023 Gross Profit Margin (%) | | :--- | :--- | :--- | :--- | :--- | | Property management services | 181,756 | 18.0 | 125,156 | 16.7 | | Non-owner value-added services | 55,457 | 31.3 | 84,957 | 38.0 | | Community value-added services | 129,234 | 42.3 | 147,242 | 38.8 | | Total | 366,447 | 24.6 | 357,355 | 26.4 | - Overall gross profit margin decreased by 1.8 percentage points to 24.6%, mainly due to reduced revenue from higher-margin non-owner value-added services[29] - Property management services gross profit margin increased to 18.0%, mainly due to improved efficiency from intensive management and synergies from acquiring quality projects. Non-owner value-added services gross profit margin decreased to 31.3%, primarily due to reduced income from new project services. Community value-added services gross profit margin increased to 42.3%, mainly due to increased parking space management service revenue[29][30] Other Income and Gains Other income and gains decreased 32.6% to RMB 8.9 million, mainly due to reduced VAT tax incentives and a shift from investment property fair value gain to loss - Other income and gains decreased by approximately RMB 4.3 million or 32.6% from approximately RMB 13.2 million to approximately RMB 8.9 million[31] - This decrease was mainly due to reduced VAT tax incentives and a fair value change in investment properties resulting in a loss of RMB 9.4 million for H1 2024, compared to a gain of RMB 2.0 million for H1 2023[31] Selling and Distribution Expenses Selling and distribution expenses decreased 22.8% to RMB 18.3 million, attributed to the company's ongoing cost-saving and control measures - Selling and distribution expenses decreased by approximately 22.8% from approximately RMB 23.7 million to approximately RMB 18.3 million[32] - This decrease was mainly due to the company's continuous cost-saving and control measures, leading to reductions in marketing and promotion expenses[32] Administrative Expenses Administrative expenses decreased 37.1% to RMB 85.1 million, primarily due to the company's continuous cost-saving and control measures - Administrative expenses decreased by approximately 37.1% from approximately RMB 135.2 million to approximately RMB 85.1 million[33] - This decrease was mainly due to the company's continuous cost-saving and control measures[33] Finance Costs Finance costs increased 90.5% to RMB 4.0 million, mainly due to higher interest expenses from lease liabilities as leased projects increased - Finance costs increased by approximately 90.5% from approximately RMB 2.1 million to approximately RMB 4.0 million[34] - This increase was due to increased interest expenses from lease liabilities resulting from more leased projects[34] Income Tax Expense Income tax expense increased 10.2% to RMB 54.1 million, primarily driven by the increase in profit before tax - Income tax expense increased by approximately 10.2% from approximately RMB 49.1 million to approximately RMB 54.1 million[35] - This increase was mainly due to profit before tax increasing from approximately RMB 197.6 million to approximately RMB 235.1 million[35] Profit for the Period Profit for the period increased 21.9% to RMB 181.0 million, with net profit margin rising from 11.0% to 12.1%, indicating improved profitability - Profit for the period increased by approximately 21.9% from approximately RMB 148.5 million to approximately RMB 181.0 million[36] - Net profit margin increased from approximately 11.0% to approximately 12.1%[36] Property, Plant and Equipment As of June 30, 2024, property, plant and equipment totaled RMB 102.4 million, a slight increase from the end of 2023 - As of June 30, 2024, property, plant and equipment amounted to approximately RMB 102.4 million, an increase from approximately RMB 95.9 million as of December 31, 2023[37] Investment Properties Investment properties increased to RMB 137.0 million, mainly due to new recognition of Zhonghao Jiayuan residential properties, partially offset by fair value decreases in other investment properties - Investment properties increased from approximately RMB 128.2 million to approximately RMB 137.0 million[38] - This increase was mainly due to the new recognition of Zhonghao Jiayuan residential properties under new leases as investment properties during the period, while other investment property projects experienced fair value decreases due to shorter remaining lease terms[38] Right-of-use Assets Right-of-use assets increased to RMB 38.5 million, primarily due to additional assets from subsidiary acquisitions during the period - Right-of-use assets increased from approximately RMB 27.8 million to approximately RMB 38.5 million[39] - This increase was mainly due to additional right-of-use assets from the acquisition of subsidiaries during the period[39] Intangible Assets Intangible assets slightly decreased to RMB 99.0 million, mainly due to amortization during the period - Intangible assets decreased from approximately RMB 101.7 million to approximately RMB 99.0 million[40] - This decrease was mainly due to amortization of intangible assets during the period[40] Inventories Inventories slightly increased to RMB 4.6 million, primarily comprising consumable materials, spare parts, and general merchandise - Inventories, primarily comprising consumable materials, spare parts, and general merchandise, amounted to approximately RMB 4.6 million as of June 30, 2024, a slight increase from approximately RMB 4.3 million as of December 31, 2023[41] Trade Receivables Related party trade receivables decreased, while third-party trade receivables significantly increased due to business expansion and higher property management revenue - Trade receivables from related parties decreased from approximately RMB 361.4 million to approximately RMB 299.1 million[42] - Trade receivables from third parties increased from approximately RMB 566.9 million to approximately RMB 993.9 million, mainly due to increased property management revenue from expanded GFA under management[42] Prepayments, Other Receivables and Other Assets Total prepayments, other receivables, and other assets increased to RMB 858.5 million, mainly due to higher third-party prepayments and payments on behalf of residents for remuneration-based projects - Prepayments, other receivables and other assets increased from approximately RMB 816.8 million to approximately RMB 858.5 million[43] - This increase was mainly due to increased prepayments to third parties and payments made on behalf of residents and tenants for remuneration-based projects[43] - Receivables from related parties amounted to approximately RMB 555.4 million, primarily including refundable performance deposits for parking space sales paid to related parties of approximately RMB 500.5 million[43] Trade Payables Trade payables increased to RMB 708.3 million, primarily due to business expansion leading to increased procurement of security, cleaning, and facility maintenance services - Trade payables increased from approximately RMB 602.9 million to approximately RMB 708.3 million[44] - This increase was mainly due to business expansion, reflecting increased procurement of security and cleaning services, as well as facility and equipment maintenance services[44] Other Payables and Accrued Expenses Other payables and accrued expenses increased to RMB 975.7 million, including amounts due to related parties, funds collected for residents, deposits, and accrued salaries - Other payables and accrued expenses increased from approximately RMB 756.5 million to approximately RMB 975.7 million[45] - Mainly includes amounts due to related parties, amounts collected on behalf of residents and tenants, deposits and temporary receipts, and accrued salaries and benefits[45] Contingent Liabilities and Pledge of Assets As of June 30, 2024, the Group had no outstanding guarantees or significant contingent liabilities, and no assets were pledged - As of June 30, 2024, the Group had no outstanding guarantees or other significant contingent liabilities[46] - As of June 30, 2024, none of the Group's assets were pledged[46] Foreign Exchange Risk The Group's primary operations in China limit significant foreign exchange risk, except for HKD-denominated proceeds, with ongoing monitoring and no hedging instruments used - The Group's principal operations are conducted in China, and it does not face any significant risks directly related to foreign exchange fluctuations, except for certain net proceeds from the global offering in March 2022 which are denominated in HKD[47] - The Group will continue to monitor foreign exchange risk and take prudent measures to mitigate it, with no financial instruments used for hedging during the period[47] Material Investments and Acquisitions The Group held no material investments as of June 30, 2024, but acquired Beijing Runwu Jiaye to expand business and strengthen non-cyclical operations, with future investments aligned with global offering proceeds Material Investments Held As of June 30, 2024, the Group held no material investments - As of June 30, 2024, the Group held no material investments[48] Acquisitions and Disposals of Subsidiaries, Associates and Joint Ventures On January 18, 2024, the company acquired Beijing Runwu Jiaye for RMB 323.8 million to expand high-end property management, achieve economies of scale, and strengthen non-cyclical businesses - On January 18, 2024, Jinmao Property Management, a wholly-owned subsidiary of the Company, acquired the entire equity interest in Runwu Jiaye for a total cash consideration of RMB 323,800,000[48] - The acquisition of Runwu Jiaye aims to align with the Group's strategic positioning in managing high-end projects, facilitate regional intensive management, achieve economies of scale and create synergies, and strengthen non-cyclical businesses[48] - A portion of the acquisition consideration, HKD 139.1 million, was paid in cash using the reallocated net proceeds from the global offering for acquiring property management companies, with the remainder funded by the Group's own resources[48] Future Plans for Material Investments or Capital Asset Purchases The Group will continue to use global offering proceeds as planned, with no other material investment or capital asset purchase plans beyond what is disclosed - The Group will continue to utilize the net proceeds from the global offering according to its planned uses[49] - As of the date of this announcement, the Company has no other plans for material investments or capital asset purchases[49] Capital Structure and Liquidity The Group maintains strong liquidity and financial health with no borrowings as of June 30, 2024, increased cash, significant operating cash flow growth, and a 0% debt-to-asset ratio Capital Commitments and Capital Expenditures As of June 30, 2024, the Group had no capital commitments, with 2024 capital expenditures expected to be funded by global offering proceeds and operating working capital - As of June 30, 2024, the Group had no capital commitments[50] - The Group's capital expenditures for the year ending December 31, 2024, are expected to be primarily funded by proceeds from the global offering and working capital from the Group's operating activities[50] Liquidity and Capital Resources, Current Assets and Current Ratio The Group maintains strong liquidity with no borrowings as of June 30, 2024, cash and cash equivalents at RMB 1,285.6 million, operating cash flow at RMB 153.1 million, a 1.35 current ratio, and 0% debt-to-asset ratio - As of June 30, 2024, the Group had no borrowings[51] - Cash and cash equivalents amounted to approximately RMB 1,285.6 million, an increase from approximately RMB 1,252.0 million at the end of 2023, mainly due to net cash flow from operating activities[51] - Net cash flow from operating activities increased from approximately RMB 86.3 million to approximately RMB 153.1 million. The current ratio was approximately 1.35 times, and the debt-to-asset ratio was 0%[51] Use of Proceeds from Global Offering Of the HKD 781.9 million net proceeds from the global offering, 98.3% (HKD 768.9 million) was used as planned by June 30, 2024, primarily for strategic investments and acquisitions - The net proceeds from the global offering amounted to approximately HKD 781.9 million[52] - As of June 30, 2024, approximately HKD 768.9 million (98.3%) of the net proceeds had been utilized as stated in the prospectus and announcements[55] - Approximately HKD 530.1 million (67.8%) was used for identifying strategic investment and acquisition opportunities, including the acquisition of Runwu Jiaye. Approximately HKD 101.6 million (13.0%) was fully utilized for developing community value-added services. Approximately HKD 78.2 million (10.0%) was fully utilized for working capital and general corporate purposes[55][57] Interim Dividend The Board declared an interim dividend of HKD 0.084 per ordinary share for H1 2024, totaling approximately HKD 75.95 million, payable on September 30, 2024, with share transfer registration suspended from September 10-12 - The Board declared an interim dividend of HKD 0.084 per ordinary share, totaling approximately HKD 75.95 million[58] - The interim dividend is expected to be paid on September 30, 2024, to shareholders whose names appear on the register of members at the close of business on September 12, 2024[58] - Share transfer registration will be suspended from September 10, 2024, to September 12, 2024[58] Employees and Remuneration Policy As of June 30, 2024, the Group had 2,800 full-time employees with total staff costs of approximately RMB 300 million, and it continuously reviews remuneration and development programs - As of June 30, 2024, the Group had 2,800 full-time employees, an increase from 2,225 as of June 30, 2023[61] - For the six months ended June 30, 2024, total staff costs amounted to approximately RMB 300 million[61] - The Group regularly reviews its remuneration policies and welfare schemes, exploring the establishment of a compensation and benefits system suitable for corporate executives and high-caliber talent, and providing long-term development programs and promotion channels[62] Subsequent Events After Reporting Period No other significant events affecting the Group occurred after the reporting period up to the date of this announcement, beyond those already disclosed - Except as disclosed in this announcement, there were no other significant events after June 30, 2024, and up to the date of this announcement that could affect the Group[63] Corporate Governance and Other Information Audit Committee and Review of Interim Results The Audit Committee reviewed the Group's unaudited H1 2024 interim results and discussed internal control, with Ernst & Young conducting the review per HKSAE 2410 - The Audit Committee has reviewed the Group's unaudited interim results for the six months ended June 30, 2024, and discussed internal control and risk management matters[59] - The interim results are unaudited but have been reviewed by Ernst & Young in accordance with Hong Kong Standard on Review Engagements 2410[59] Purchase, Sale or Redemption of the Company's Listed Securities For H1 2024, neither the company nor its subsidiaries purchased, sold, or redeemed any listed securities, and the company held no treasury shares - Neither the Company nor its subsidiaries purchased, sold, or redeemed any of the Company's listed securities during the six months ended June 30, 2024[60] - As of June 30, 2024, the Company held no treasury shares[60] Corporate Governance Code The company adopted and complied with the Corporate Governance Code in Appendix C1 to the Listing Rules for H1 2024 - The Company has adopted the Corporate Governance Code set out in Appendix C1 to the Listing Rules[64] - The Board is satisfied that the Company has complied with the code provisions set out in the Corporate Governance Code for the six months ended June 30, 2024[64] Standard Code for Securities Transactions by Directors The company adopted the Model Code for Securities Transactions by Directors in Appendix C3 to the Listing Rules, with all directors confirming compliance for H1 2024 - The Company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers set out in Appendix C3 to the Listing Rules[65] - All Directors have confirmed their compliance with the Model Code for the six months ended June 30, 2024[65] Publication of Interim Results Announcement and Interim Report This interim results announcement is published on the HKEX and company websites, with the full interim report to be dispatched to shareholders and available online - This interim results announcement is published on the HKEX website www.hkexnews.hk and the Company's website www.jinmaowy.com[66](index=66&type=chunk) - The Company's interim report for the six months ended June 30, 2024, containing all data required by the Listing Rules, will be dispatched to shareholders and made available on the aforementioned websites in due course[66]