Financial Performance - In 2024, the company achieved revenue of approximately RMB 951.5 million, an increase of about 10.4% compared to 2023[21] - The profit for 2024 was approximately RMB 61.1 million, reflecting a growth of about 19.8% year-on-year[21] - The profit attributable to shareholders was approximately RMB 59.0 million, which is an increase of about 18.7% from the previous year[21] - The group's total revenue for the year ended December 31, 2024, was approximately RMB 951.5 million, an increase of about 10.4% compared to RMB 862.2 million for the year ended December 31, 2023[31] - Net profit for the year ended December 31, 2024, was approximately RMB 61.1 million, an increase of about 19.8% compared to RMB 51.0 million for the year ended December 31, 2023[32] - Gross profit for the year ended December 31, 2024, was approximately RMB 143.2 million, representing a 21.4% increase from RMB 118.0 million in the previous year, with a gross margin of 15.1%, up from 13.7%[31] - Other income increased by approximately 123.7% from about RMB 3.8 million for the year ended December 31, 2023, to about RMB 8.5 million for the year ended December 31, 2024, mainly due to increased government subsidies[54] - Administrative expenses and R&D costs rose approximately 23.1% from RMB 53.3 million for the year ended December 31, 2023, to about RMB 65.6 million for the year ended December 31, 2024[55] - Trade and other receivables impairment losses increased by 192.3% from approximately RMB 3.9 million for the year ended December 31, 2023, to approximately RMB 11.4 million for the year ending December 31, 2024, primarily due to the increase in trade receivables resulting from business scale expansion[56] - Financial costs decreased by approximately 73.3% from about RMB 1.5 million for the year ended December 31, 2023, to approximately RMB 0.4 million for the year ending December 31, 2024, mainly due to the appreciation of the HKD against RMB and foreign exchange gains offsetting financial costs[57] Market Position and Expansion - The company was recognized as a "National High-tech Enterprise" and a "National-level Technology-based SME" in 2024[20][16] - The company was listed on the Hong Kong Stock Exchange on July 3, 2024, marking its entry into the capital market as the first property service company in Northwest China[20][15] - The group is actively expanding its service offerings beyond residential property management to include administrative offices, commercial buildings, hospitals, schools, and industrial parks, enhancing its comprehensive business matrix[25] - The company aims to expand its market presence in Northwest China through joint ventures, acquisitions, and project expansions[48] - The company has established a significant market position in the urban services and property management industry in Shaanxi Province, with ongoing efforts to expand its footprint in Northwest China[35] Service Quality and Innovation - The company focused on enhancing service quality through a comprehensive property service quality system, emphasizing owner needs and satisfaction[22] - The company implemented smart property digital management to innovate service scenarios and restructure organizational management[23] - The company launched community cultural activities to foster a warm and harmonious community atmosphere[22] - The company aims to leverage technology to enhance operational efficiency and service innovation, ensuring a competitive edge in the market[27] - The company plans to enhance its standardized service system and optimize customer experience to improve bidding success rates and service area expansion[48] Employee and Talent Management - As of December 31, 2024, the company employed 7,833 full-time employees, with employee costs recognized at approximately RMB 527.5 million, an increase from RMB 490.1 million in the previous year[88] - The group is committed to optimizing its talent ecosystem through various training programs and initiatives to ensure a high-quality talent pool for sustainable growth[26] - The company will recruit professional talent and participate in targeted industry training to enhance the professional level of its development team[48] Governance and Compliance - The company confirmed compliance with relevant laws and regulations, with no significant misstatements or misleading information in financial reports[171] - The company has adhered to the corporate governance code since its listing date, ensuring transparency and accountability in operations[177] - The board of directors is composed of 3 executive directors, 2 non-executive directors, and 3 independent non-executive directors, maintaining a balanced composition for effective independent judgment[179] - The company has complied with regulations regarding the appointment of independent non-executive directors, ensuring at least one has appropriate professional qualifications[182] - The roles of the chairman and the CEO are separated, with Mr. Wu Suozheng serving as chairman and Mr. Sun Qi as general manager[184] - The company established an Audit Committee on May 23, 2024, to oversee financial reporting and internal control systems[190] - The supervisory board will focus on monitoring the company's financial status and major issues in 2025, enhancing risk awareness and corporate governance[175] Related Party Transactions - The company has entered into a catering service agreement with Jingfa Holdings, with a maximum annual fee of RMB 6.5 million and RMB 6.7 million for the years ending December 31, 2024, and 2025, respectively[119] - The total fee payable to the company for catering services is estimated at RMB 6.4 million, representing 0.7% of total revenue[122] - The company has signed a parking management service agreement with Jingfa Holdings, with maximum annual fees of RMB 5.1 million and RMB 5.3 million for the years ending December 31, 2024, and 2025, respectively[124] - The total fee payable for parking management services for the year ending December 31, 2024, is estimated at RMB 1.6 million, accounting for 0.2% of total sales costs[126] - The company has established a property management service agreement with Jingfa Holdings, with maximum annual fees of RMB 65.4 million and RMB 69.2 million for the years ending December 31, 2024, and 2025, respectively[128] - The total fees payable by the group to Jingfa Holdings for property management services for the year ending December 31, 2024, amount to RMB 52.0 million, representing 5.5% of the group's total revenue[131] - The independent non-executive directors have confirmed compliance with the relevant agreements governing the related party transactions, ensuring that all transactions were conducted on normal commercial terms[134] Financial Position - Cash and cash equivalents increased by approximately 65.1% from about RMB 258.5 million as of December 31, 2023, to approximately RMB 426.9 million as of December 31, 2024, mainly due to net proceeds from the global offering[68] - Current assets net value increased from approximately RMB 18.4 million as of December 31, 2023, to approximately RMB 148.5 million as of December 31, 2024, primarily due to increases in prepaid expenses and cash[69] - The company had no bank borrowings as of December 31, 2024, consistent with the previous year[71] - The total distributable reserves available to equity shareholders as of December 31, 2024, amount to RMB 115.4 million[153] Risks and Challenges - The company faces risks related to reliance on local government prospects and potential adverse developments in the business environment in Xi'an, where a significant portion of its operations are concentrated[97] - The company reported a credit risk primarily from cash, trade receivables, and other receivables, with a credit loss provision of RMB 11,004,000 as of December 31, 2023, compared to RMB 5,474,000 in the previous year[80] - The expected credit loss rate for non-trade receivables is calculated at 0.5%, indicating a low credit risk based on historical settlement records and forward-looking data[81] Corporate Events - There are no major events affecting the company from December 31, 2024, until the report date[85] - The company has not adopted any share incentive plans as of December 31, 2024[89] - The company did not issue any debt securities during the reporting period[150] - The board does not recommend the payment of a final dividend for the reporting period[152] - There were no significant events occurring after December 31, 2024, up to the report date[161] - The auditor for the financial statements for the year ended December 31, 2024, is KPMG, with no changes since the date of listing[162]
经发物业(01354) - 2024 - 年度财报