众安智慧生活(02271) - 2024 - 中期财报

Management Discussion and Analysis Company Overview and Business Scale The company, a comprehensive property management service provider, expanded its business to manage 123 projects and 18.03 million square meters by June 2024, supported by its parent company and third-party clients - The company's ranking among "China's Top 100 Property Service Enterprises" improved from 82nd in 2016 to 37th in 2024, indicating enhanced comprehensive strength and management capabilities[9][11] Business Scale Overview (As of June 30, 2024) | Metric | Quantity | | :--- | :--- | | Contracted Projects | 144 | | Contracted Area | Approx. 21.76 million sq.m. | | Projects Under Management | 123 | | Area Under Management | Approx. 18.03 million sq.m. | | Business Coverage | 20 cities, 8 provinces | - Parent company Zhong An Group (Remaining Group) holds approximately 29 projects under construction or development with a total GFA of 5.95 million square meters, of which the company has secured service agreements for 17 projects (total GFA 3.04 million square meters), ensuring stable future growth[10][12] Business Strategy and Services The company offers diversified services, balancing residential and non-residential properties, expanding through strategic partnerships and consulting, while investing in smart services and community value-added offerings - The company's business covers both residential and non-residential properties, including commercial office buildings, serviced apartments, government office buildings, industrial parks, hospitals, and schools, aiming for balanced development and enhanced brand reputation[13][15] - In smart services, the company is actively building a smart management platform to integrate existing equipment for intelligent management, services, and decision-making, while promoting smart fire safety, security systems, and various service robots[14] Future Outlook The company plans to adhere to its "1+9" strategy, focusing on core property services and expanding nine value-added businesses, aiming for continued growth in Zhejiang and the Yangtze River Delta through organic expansion and M&A, particularly in non-residential sectors - Adhering to the "1+9" strategy, the company will focus on basic services while integrating community resources around "people, assets, and scenarios" to vigorously develop community living services and build a multi-format, full-lifecycle service product platform[18] - The company plans to consolidate its market position in Zhejiang Province and expand market share in operating cities through organic business development and acquisitions of quality property management enterprises, while also expanding into non-residential formats such as government office buildings, industrial parks, and hospitals[18] Financial Review In H1 2024, total revenue grew 9.9% to RMB 182.1 million, driven by a 24.1% increase in property management services, but a 43.0% decline in value-added services for developers and rising staff costs led to a gross margin decrease from 33.8% to 31.7% and a 7.5% net profit decline to RMB 14.3 million, despite a robust financial position with no bank borrowings Revenue Analysis Total revenue for the period was RMB 182.1 million, up 9.9% year-on-year, primarily driven by a 24.1% increase in property management services to RMB 153.4 million, while value-added services for developers significantly declined by 43.0% Revenue Composition (Six Months Ended June 30) | Business Segment | 2024 Revenue (RMB thousands) | 2024 Share | 2023 Revenue (RMB thousands) | 2023 Share | YoY Change | | :--- | :--- | :--- | :--- | :--- | :--- | | Property Management Services | 153,423 | 84.2% | 123,614 | 74.6% | +24.1% | | Value-added Services to Property Developers | 18,099 | 10.0% | 31,731 | 19.1% | -43.0% | | Community Value-added Services | 10,623 | 5.8% | 10,415 | 6.3% | +2.0% | | Total | 182,145 | 100.0% | 165,760 | 100.0% | +9.9% | - The growth in property management service revenue was primarily due to a 25.0% increase in total GFA under management, from 14.4 million square meters in the prior period to 18.0 million square meters, mainly driven by projects delivered by the Remaining Group[21][22] - The significant decrease in value-added services for developers was primarily due to reduced management services for property sales offices and fewer such services provided to the Remaining Group[30][31] Portfolio of Properties Under Management Analysis As of June 30, 2024, the company managed a total GFA of 18.03 million square meters, with over half of the managed area and nearly 70% of property management revenue originating from the Remaining Group and its associates, while residential properties remain dominant, accounting for 85.2% of managed area and 72.9% of revenue, as the company continues to expand non-residential properties Property Management Business by Developer Source (H1 2024) | Source | Projects Under Management | Area Under Management (million sq.m.) | Revenue (RMB thousands) | Revenue Share | | :--- | :--- | :--- | :--- | :--- | | Remaining Group | 57 | 8.862 | 98,270 | 64.1% | | Joint Ventures/Associates of Remaining Group | 6 | 0.881 | 9,426 | 6.1% | | Independent Third-Party Developers | 60 | 8.287 | 45,727 | 29.8% | | Total | 123 | 18.030 | 153,423 | 100.0% | Property Management Business by Property Type (H1 2024) | Property Type | Projects Under Management | Area Under Management (million sq.m.) | Revenue (RMB thousands) | Revenue Share | | :--- | :--- | :--- | :--- | :--- | | Residential Properties | 96 | 15.361 | 111,910 | 72.9% | | Non-Residential Properties | 27 | 2.669 | 41,513 | 27.1% | | Total | 123 | 18.030 | 153,423 | 100.0% | Profitability and Financial Position During the reporting period, gross profit slightly increased by 3.1% to RMB 57.7 million, but the gross margin decreased from 33.8% to 31.7% due to higher staff costs, leading to a 7.5% year-on-year decline in net profit to RMB 14.3 million and a net margin of 7.8%, while the company maintained a healthy financial position with RMB 148 million in cash and cash equivalents, a current ratio of 2.9 times, and no bank borrowings Gross Margin by Business Segment | Business Segment | H1 2024 | H1 2023 | | :--- | :--- | :--- | | Property Management Services | 30.0% | 31.2% | | Value-added Services to Property Developers | 41.2% | 41.3% | | Community Value-added Services | 40.1% | 41.5% | | Overall Gross Margin | 31.7% | 33.8% | - Cost of sales increased by 13.3% year-on-year, outpacing revenue growth, primarily due to a 19.9% increase in staff costs to RMB 97.5 million, which was the main driver of the overall gross margin decline[33][35][39] Key Profitability Indicators (Six Months Ended June 30) | Metric (RMB thousands) | 2024 (Unaudited) | 2023 (Unaudited) | YoY Change | | :--- | :--- | :--- | :--- | | 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% | | Basic Earnings Per Share | RMB 2.77 cents | RMB 2.97 cents | -6.7% | - As of June 30, 2024, the Group had no bank borrowings, a zero debt-to-equity ratio (total borrowings/total equity), and a current ratio of 2.9 times, indicating a robust financial structure and ample liquidity[44] Corporate Governance and Other Information Use of Proceeds from Global Offering The company received net proceeds of approximately HKD 104 million from its global offering and partial exercise of the over-allotment option, with HKD 1.2 million utilized by June 30, 2024, primarily for software/hardware upgrades and community value-added services, while the remaining funds, largely for strategic acquisitions, are expected to be fully used by December 2025 Use of Proceeds and Progress (As of June 30, 2024) | Purpose | Percentage | Available Amount (HKD millions) | Utilized Amount (HKD millions) | Unutilized Amount (HKD millions) | Expected Full Utilization | | :--- | :--- | :--- | :--- | :--- | :--- | | Strategic Acquisitions and Investments | 55.0% | 57.2 | 0 | 57.2 | Before December 2025 | | Software and Hardware Upgrades | 30.0% | 31.2 | 0.9 | 30.3 | Before December 2025 | | Expansion of Community Value-added Services | 15.0% | 15.6 | 0.3 | 15.3 | Before December 2025 | | Total | 100.0% | 104.0 | 1.2 | 102.8 | - | Interests of Directors and Shareholders As of June 30, 2024, Mr. Shi Zhong'an, the company's Chairman, indirectly held 380 million shares, representing 73.4% of the issued share capital through his wholly-owned companies and Zhong An Group, making him the controlling shareholder, with no other directors or chief executives holding disclosable interests beyond what is disclosed - Mr. Shi Zhong'an (Mr. Shi), the company's Chairman, is deemed to be interested in 380,000,000 shares of the company through corporations controlled by him (e.g., Zhong An BVI), representing approximately 73.4% of the total share capital[63][70] Employees and Remuneration Policy As of June 30, 2024, the Group had 2,991 employees, an increase from 2,845 in the prior year, and implements a performance-based remuneration system offering competitive packages including basic salary, performance bonuses, and year-end dividends, alongside continuous systematic training - As of June 30, 2024, the Group's total number of employees was 2,991, an increase of approximately 5.1% compared to 2,845 as of June 30, 2023[75][79] Dividends The Board of Directors does not recommend the payment of an interim dividend for the reporting period ended June 30, 2024, consistent with the policy for the same period last year - The Board does not recommend the payment of an interim dividend for 2024 (2023 interim: nil)[82] Interim Condensed Consolidated Financial Statements Interim Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income This statement presents the company's operating results for the reporting period, showing revenue of RMB 182.1 million and gross profit of RMB 57.71 million in H1 2024, with profit before tax decreasing to RMB 19.08 million and net profit for the period declining 7.5% to RMB 14.26 million due to increased administrative expenses and impairment losses on financial assets Statement of Profit or Loss Summary (Six Months Ended June 30) | Item (RMB thousands) | 2024 (Unaudited) | 2023 (Unaudited) | | :--- | :--- | :--- | | 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 | | Income Tax Expense | (4,817) | (6,012) | | Profit for the Period | 14,260 | 15,414 | | Profit Attributable to Owners of the Parent | 14,354 | 15,387 | Interim Condensed Consolidated Statement of Financial Position This statement reflects the company's financial position at the end of the reporting period, showing total assets of RMB 415.0 million, total liabilities of RMB 138.6 million, and net assets of RMB 276.4 million as of June 30, 2024, with a healthy net current asset position of RMB 268 million Statement of Financial Position Summary (RMB thousands) | Item | June 30, 2024 (Unaudited) | December 31, 2023 (Audited) | | :--- | :--- | :--- | | Non-current Assets | 8,697 | 7,703 | | Current Assets | 406,307 | 402,382 | | Total Assets | 415,004 | 410,085 | | Current Liabilities | 138,641 | 135,329 | | Total Liabilities | 138,641 | 135,329 | | Net Assets | 276,363 | 274,756 | | Total Equity | 276,363 | 274,756 | Interim Condensed Consolidated Statement of Cash Flows This statement details the company's cash inflows and outflows for the reporting period, indicating a net cash outflow from operating activities of RMB 28.58 million in H1 2024, primarily due to increased trade receivables and amounts due from related companies, resulting in a period-end cash and cash equivalents balance of RMB 148.22 million, a decrease of RMB 29.08 million from the beginning of the period Statement of Cash Flows Summary (Six Months Ended June 30, RMB thousands) | Item | 2024 (Unaudited) | 2023 (Unaudited) | | :--- | :--- | :--- | | Net Cash Flows Used in Operating Activities | (28,578) | (2,941) | | Net Cash Flows Used in Investing Activities | (505) | (177) | | Net Cash Flows Used in Financing Activities | – | – | | Net Decrease in Cash and Cash Equivalents | (29,083) | (3,118) | | Cash and Cash Equivalents at Beginning of Period | 177,306 | 44,724 | | Cash and Cash Equivalents at End of Period | 148,223 | 41,606 |