Revenue and Financial Performance - The group's revenue for the year ended December 31, 2024, was approximately RMB 1,530.2 million, an increase of about 0.1% compared to RMB 1,528.2 million for the year ended December 31, 2023[3]. - Revenue from property urban services was approximately RMB 879.5 million, accounting for about 57.5% of total revenue, an increase of approximately 0.8% from RMB 872.1 million for the previous year[3]. - Revenue from integrated services in foreign affairs, technology, and healthcare was approximately RMB 437.1 million, accounting for about 28.5% of total revenue, an increase of approximately 0.7% from RMB 434.1 million for the previous year[4]. - The gross profit was approximately RMB 207.9 million, a decrease of about 2.3% from RMB 212.9 million for the previous year, with a gross profit margin of approximately 13.6%[4]. - The reported loss for the period was approximately RMB 61.6 million, with a loss attributable to the company's owners of approximately RMB 66.9 million[4]. - The total equity attributable to the owners of the company was approximately RMB 383.2 million, down from RMB 482.5 million in the previous year[7]. - The total comprehensive income for the year ended December 31, 2023, was reduced by RMB 18,488,000 due to the merger accounting adjustments[63]. - The company reported a basic and diluted earnings per share of RMB 0.038 for the year ended December 31, 2023, after accounting adjustments[63]. - The company reported a loss attributable to equity holders of RMB (66,882,000) in 2024, compared to a profit of RMB 2,529,000 in 2023[49]. - Basic loss per share for 2024 was RMB (0.998), a decline from earnings of RMB 0.038 per share in 2023[49]. Dividends and Shareholder Information - The board proposed a final dividend of RMB 0.03 per share (tax included) for the year ended December 31, 2024, unchanged from the previous year[4]. - The total dividends declared for 2024 were RMB 4,421,000, significantly lower than RMB 9,379,000 in 2023[51]. - The proposed final dividend will be paid in Hong Kong dollars based on the average exchange rate of RMB to HKD published by the People's Bank of China seven days prior to the annual general meeting[140]. - A withholding tax of 10% will be applied to dividends distributed to non-resident corporate shareholders[141]. - Individual shareholders from Hong Kong or Macau will have a personal income tax withheld at a rate of 10%[142]. - The record date for attending the annual general meeting and voting rights is set for May 29, 2025[146]. - The record date for eligibility to receive the proposed final dividend is June 13, 2025[146]. - The annual general meeting will be held on June 10, 2025, to approve the dividend distribution plan[145]. Acquisitions and Business Combinations - The company acquired approximately 90.73% of Shanghai Changqing's equity, which has been accounted for as a business combination under common control[2]. - The group acquired 90.73% of Shanghai Changqing Society from Di Ma Industrial for RMB 28,000,000, classified as a business combination under common control[19]. - The company completed the acquisition of approximately 90.73% of Shanghai Evergreen Community Health Development Co., Ltd. for RMB 28.0 million, which operates over 14 elderly care institutions and manages more than 3,000 beds, serving over 20,000 users[128]. - The company also acquired 100% of Chengdu Dongyu Hong Commercial Management Co., Ltd. for RMB 59.5 million, which holds approximately 83.48% ownership of a property used as a nursing home[129]. - The acquisition of Chengdu Dongwu Hong has been accounted for as an acquisition of assets[68]. - The total cash consideration for the acquisition was RMB 59,500,000, with acquisition-related costs being insignificant[69]. Assets and Liabilities - Non-current assets totaled approximately RMB 484.1 million, a decrease from RMB 494.3 million in the previous year[6]. - Current liabilities amounted to approximately RMB 976.3 million, an increase from RMB 922.1 million in the previous year[7]. - The company's non-current assets increased to RMB 494,309,000 after merger accounting adjustments, up from RMB 378,535,000[64]. - The total liabilities increased to RMB 922,145,000 after adjustments, reflecting an increase of 5.4%[65]. - The total intangible assets increased to RMB 331,671,000 as of December 31, 2024, up from RMB 328,387,000 as of December 31, 2023, reflecting a growth of 0.4%[54]. - Trade receivables and notes receivable amounted to RMB 713,822,000 as of December 31, 2024, compared to RMB 680,278,000 as of December 31, 2023, representing an increase of 4.9%[55]. - The provision for impairment of trade receivables increased significantly to RMB 118,820,000 in 2024 from RMB 43,477,000 in 2023, indicating a rise of 173.5%[55]. - The aging analysis of trade receivables shows that receivables within one year increased to RMB 555,961,000 in 2024 from RMB 419,737,000 in 2023, a growth of 32.4%[56]. - The company's total equity remains stable with 66,991,000 shares issued at a par value of RMB 1 per share as of December 31, 2024, unchanged from the previous year[60]. - The group's debt-to-equity ratio increased from approximately 19.8% on December 31, 2023, to about 22.2% as of December 31, 2024[110]. Operational Performance and Strategy - The company aims to enhance its service capabilities and expand its business scope through organic growth, strategic acquisitions, and investments[76]. - The company plans to continue expanding its geographic footprint, managing projects in 60 cities across China[81]. - The group aims to enhance market penetration and quality improvement through a "four modernization" strategy, focusing on standardization and branding[116]. - The group plans to explore new business opportunities in integrated facility management (IFM) and health services, targeting industrial parks and healthcare institutions[118]. - The "Evergreen Society" sub-brand focuses on providing comprehensive solutions for elderly care, including high-quality living arrangements for seniors[119]. - The company launched the "Shining Sea Technology" sub-brand, leveraging AIoT technology to enhance traditional industries and provide comprehensive smart solutions across various scenarios, including security management and public services[120]. - The organization will implement an "Amoeba" management model to empower frontline business units, improving resource allocation and operational efficiency[122]. - The company is committed to talent development through a structured management and training system, ensuring new employees meet competency standards within one year[123]. - The company will strengthen cultural identity through digital tools and platforms, fostering a cohesive and motivated organizational environment[124]. Compliance and Governance - The consolidated financial statements are prepared in accordance with all applicable Hong Kong Financial Reporting Standards and the Companies Ordinance[16]. - The audit committee confirmed compliance with applicable accounting principles and standards for the financial year ending December 31, 2024[136]. - The company has adhered to all applicable corporate governance codes during the reporting period, ensuring compliance with legal and regulatory requirements[134]. - The board of directors includes both executive and independent non-executive members, ensuring diverse governance[149]. Employee and Training - As of December 31, 2024, the company had 5,903 employees, with total employee costs amounting to approximately RMB 735.2 million for the reporting period[132]. - The company plans to enhance employee training programs using internal and external resources to improve skills in key operational areas[132]. Financial Reporting and Accounting - The consolidated financial statements are presented in Renminbi (RMB), with all values rounded to the nearest thousand[18]. - The group is currently analyzing new accounting requirements and assessing their impact on financial statements[15]. - The group has adopted new or revised Hong Kong Financial Reporting Standards effective from January 1, 2024, with no significant impact on current or past performance[10]. - The group assesses receivables impairment based on default risk and expected loss rates, which may affect the carrying amounts of trade and other receivables[21]. - The group tests goodwill and customer relationships for impairment annually, using value-in-use calculations that require estimates[23]. - The consolidated financial statements are measured on a historical cost basis, except for financial liabilities measured at fair value[17]. - The group has not early adopted any new or revised Hong Kong Financial Reporting Standards that are not yet effective[11]. Risks and Challenges - The group is subject to corporate income tax in China, requiring judgment in determining tax provisions and related payments[22]. - The company is actively monitoring foreign exchange risks and exploring hedging options with major banks due to its operations in RMB and the impact of HKD fluctuations since its H-share listing[130]. - The net impairment loss on financial assets was approximately RMB 79.3 million, compared to RMB 9.5 million for the year ended December 31, 2023, primarily due to the ongoing weakness in the real estate sector[99].
东原仁知服务(02352) - 2024 - 年度业绩