永升服务(01995) - 2025 - 中期业绩

Summary This section provides key financial highlights for the first half of 2025, including revenue, gross profit, and profit attributable to owners, along with dividend declarations Key Financial Highlights for H1 2025 | Metric | H1 2025 (RMB Million) | H1 2024 (RMB Million) | YoY Growth/Decrease (%) | | :--- | :--- | :--- | :--- | | Revenue | 3,460.8 | 3,371.0 | 2.7% | | Gross Profit | 645.4 | 716.8 | -10.0% | | Profit | 270.2 | 325.4 | -17.0% | | Profit Attributable to Owners of the Company | 213.8 | 265.1 | -19.4% | - The Board resolved to declare an interim dividend of HKD 0.0678 per share for the six months ended June 30, 2025 (H1 2024: HKD 0.0839 per share)[3] - The Board further resolved to declare a special dividend of HKD 0.0271 per share for the six months ended June 30, 2025 (H1 2024: HKD 0.0336 per share) to reward shareholder support[3] Financial Statements Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income This section presents the unaudited consolidated profit or loss and other comprehensive income of Yongsheng Services Group for the six months ended June 30, 2025, showing a slight increase in revenue but a decrease in gross profit and profit compared to the same period in 2024 Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (RMB Thousand) | Metric | 2025 (Unaudited) | 2024 (Unaudited) | | :--- | :--- | :--- | | Revenue | 3,460,843 | 3,371,025 | | Cost of Services | (2,815,409) | (2,654,268) | | Gross Profit | 645,434 | 716,757 | | Other Income and Other Gains and Losses | 31,211 | 14,637 | | Administrative Expenses | (175,324) | (193,791) | | Selling Expenses | (52,263) | (47,477) | | Net Expected Credit Loss on Financial Assets | (96,251) | (64,610) | | Profit Before Tax | 348,129 | 417,887 | | Income Tax Expense | (77,971) | (92,528) | | Profit and Total Comprehensive Income for the Period | 270,158 | 325,359 | | Profit Attributable to Owners of the Company | 213,778 | 265,053 | | Basic and Diluted Earnings Per Share (RMB) | 0.12 | 0.15 | Condensed Consolidated Statement of Financial Position This section outlines the assets, liabilities, and equity of Yongsheng Services Group as of June 30, 2025, indicating growth in total assets and equity but a decrease in cash and cash equivalents compared to December 31, 2024 Condensed Consolidated Statement of Financial Position (RMB Thousand) | Metric | June 30, 2025 (Unaudited) | December 31, 2024 (Audited) | | :--- | :--- | :--- | | Non-Current Assets | | | | Property, Plant and Equipment | 88,865 | 96,775 | | Investment Properties | 548,715 | 549,125 | | Intangible Assets | 290,320 | 297,557 | | Goodwill | 1,488,171 | 1,488,171 | | Total Non-Current Assets | 3,236,587 | 3,241,675 | | Current Assets | | | | Trade and Bills Receivables | 2,861,187 | 2,445,015 | | Cash and Cash Equivalents | 2,241,313 | 2,617,846 | | Total Current Assets | 6,076,502 | 5,974,978 | | Current Liabilities | | | | Trade and Bills Payables | 1,518,921 | 1,307,537 | | Contract Liabilities | 732,224 | 940,075 | | Total Current Liabilities | 3,704,140 | 3,752,531 | | Equity | | | | Equity Attributable to Owners of the Company | 5,108,359 | 5,001,126 | | Total Equity | 5,522,254 | 5,386,041 | Notes to the Financial Statements Basis of Preparation The condensed consolidated financial statements are prepared in accordance with HKAS 34 and HKEX Listing Rules, applying consistent accounting policies and methods as the 2024 annual financial statements - The condensed consolidated financial statements are prepared in accordance with Hong Kong Accounting Standard 34 "Interim Financial Reporting" issued by the Hong Kong Institute of Certified Public Accountants and the applicable disclosure requirements of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited[12] - The accounting policies and methods of computation adopted in preparing these condensed consolidated financial statements are consistent with those applied in the Group's financial statements for the year ended December 31, 2024[12] Application of Amendments to HKFRSs During this interim period, the Group first applied amendments to HKFRSs, which did not cause significant changes to its accounting policies, financial position, or performance presentation - During this interim period, the Group first applied amendments to Hong Kong Financial Reporting Standards (HKFRSs) issued by the Hong Kong Institute of Certified Public Accountants, including HKAS 21 (Amendment) Lack of Exchangeability[13] - The application of these amendments did not result in significant changes to the Group's accounting policies, the presentation of the Group's financial position and performance for the current and prior periods, and/or the disclosures contained in these condensed consolidated financial statements[13] Revenue and Segment Information The Group's revenue primarily derives from property management, community value-added, value-added services to non-property owners, and city services, all generated within China, with management reviewing the business as a single operating segment - The Group's revenue refers to income from property management services, community value-added services, value-added services to non-property owners, and city services[14] - The Group's principal operating entities are all located in the People's Republic of China ("China"), thus all revenue is derived from China[14] Revenue Analysis by Category (RMB Thousand) | Revenue Category | 2025 (Unaudited) | 2024 (Unaudited) | | :--- | :--- | :--- | | Property Management Services | 2,668,749 | 2,462,483 | | Community Value-Added Services | 396,403 | 399,398 | | Value-Added Services to Non-Property Owners | 269,609 | 356,613 | | City Services | 125,474 | 149,021 | | Others | 608 | 3,510 | | Total | 3,460,843 | 3,371,025 | Revenue Analysis by Timing of Recognition (RMB Thousand) | Timing of Recognition | 2025 (Unaudited) | 2024 (Unaudited) | | :--- | :--- | :--- | | At a point in time | 146,934 | 156,326 | | Over time | 3,313,301 | 3,211,189 | | Total | 3,460,235 | 3,367,515 | Profit Before Tax This section details the main expenses affecting profit before tax, including depreciation, amortization, lease expenses, and staff costs, providing insight into profit composition Expense Details Affecting Profit Before Tax (RMB Thousand) | Expense Item | 2025 (Unaudited) | 2024 (Unaudited) | | :--- | :--- | :--- | | Depreciation of Property, Plant and Equipment | 18,377 | 26,061 | | Amortization of Intangible Assets | 18,331 | 23,084 | | Expenses related to short-term leases - leased properties | 3,448 | 3,495 | | Expenses related to leases of low-value assets - plant and machinery | 741 | 703 | | Staff Costs (including directors' emoluments) - Wages, salaries and other benefits | 1,041,538 | 1,065,460 | | Staff Costs (including directors' emoluments) - Bonuses | 70,431 | 78,301 | | Staff Costs (including directors' emoluments) - Contributions to retirement schemes | 156,696 | 158,210 | Income Tax Expense This section discloses the Group's income tax expense for the six months ended June 30, 2025, comprising PRC corporate income tax and deferred tax Income Tax Expense Details (RMB Thousand) | Tax Category | 2025 (Unaudited) | 2024 (Unaudited) | | :--- | :--- | :--- | | PRC Corporate Income Tax - Current tax | 105,304 | 114,070 | | PRC Corporate Income Tax - Under-provision in prior periods | 478 | 582 | | Deferred Tax - Credited to profit or loss for the period | (27,811) | (22,124) | | Total Income Tax Expense | 77,971 | 92,528 | Dividends This section details the final dividends declared and paid, along with interim and special dividends resolved by the Board, to reward shareholder support - For the year ended December 31, 2024, a final dividend of HKD 0.0668 per share was declared and paid to owners of the Company (for the six months ended June 30, 2024: HKD 0.0914 per share)[21] - The Board has resolved to declare an interim dividend of HKD 0.0678 per share and a special dividend of HKD 0.0271 per share for the six months ended June 30, 2025[21] - The interim dividend for the six months ended June 30, 2024, was HKD 0.0839 per share, and the special dividend was HKD 0.0336 per share[21] Earnings Per Share This section provides the basis and specific values for basic and diluted earnings per share attributable to the Company's equity holders, reflecting changes in profitability Earnings Per Share Calculation (RMB Thousand) | Metric | 2025 (Unaudited) | 2024 (Unaudited) | | :--- | :--- | :--- | | Profit Attributable to Owners of the Company | 213,778 | 265,053 | | Weighted Average Number of Ordinary Shares (Thousand Shares) | 1,728,554 | 1,737,452 | | Basic and Diluted Earnings Per Share (RMB) | 0.12 | 0.15 | Trade and Bills Receivables This section discloses the composition and aging analysis of the Group's trade and bills receivables, showing an increase primarily due to slower collection speeds amid a downward market trend Trade and Bills Receivables (RMB Thousand) | Item | June 30, 2025 (Unaudited) | December 31, 2024 (Audited) | | :--- | :--- | :--- | | Trade Receivables - Related Parties | 942,710 | 878,789 | | Trade Receivables - Third Parties | 2,343,629 | 1,907,086 | | Bills Receivable | 6,633 | 4,093 | | Less: Provision for Credit Losses | (431,785) | (344,953) | | Total | 2,861,187 | 2,445,015 | Aging Analysis of Trade and Bills Receivables (RMB Thousand) | Aging | June 30, 2025 (Unaudited) | December 31, 2024 (Audited) | | :--- | :--- | :--- | | Within 1 year | 1,782,741 | 1,589,620 | | 1 to 2 years | 542,219 | 510,796 | | 2 to 3 years | 332,292 | 229,695 | | 3 to 4 years | 136,330 | 76,949 | | 4 to 5 years | 67,605 | 37,955 | | Total | 2,861,187 | 2,445,015 | Trade and Bills Payables This section discloses the composition and aging analysis of the Group's trade and bills payables, showing an increase primarily due to business expansion Trade and Bills Payables (RMB Thousand) | Item | June 30, 2025 (Unaudited) | December 31, 2024 (Audited) | | :--- | :--- | :--- | | Trade Payables - Related Parties | 31,728 | 25,132 | | Trade Payables - Third Parties | 1,469,920 | 1,257,593 | | Bills Payable | 17,273 | 24,812 | | Total | 1,518,921 | 1,307,537 | Aging Analysis of Trade and Bills Payables (RMB Thousand) | Aging | June 30, 2025 (Unaudited) | December 31, 2024 (Audited) | | :--- | :--- | :--- | | Within 1 year | 1,163,372 | 959,602 | | 1 to 2 years | 156,309 | 180,289 | | 2 to 3 years | 104,797 | 121,511 | | 3 to 4 years | 50,937 | 44,644 | | 4 to 5 years | 43,506 | 1,491 | | Total | 1,518,921 | 1,307,537 | Business Review Overview Yongsheng Services Group is a rapidly growing integrated property management service provider in China, covering 100 cities with approximately 253.7 million sqm under management, serving over 1.12 million households across four business segments - As of June 30, 2025, the Company provides property management services, value-added services, and city services in 100 cities in mainland China, with a total contracted GFA of approximately 354.9 million sqm and a total GFA under management of approximately 253.7 million sqm, serving over 1.12 million households[26] - Business covers residential and non-residential properties, including office buildings, shopping malls, schools, hospitals, scenic spots, government buildings, highway service stations, rail transit, and ferry terminals[26] - The Company has four major business segments: property management services, community value-added services, value-added services to non-property owners, and city services[27] Business Development and Scale The Group adheres to a city-deepening strategy, achieving high-quality growth in contracted and GFA under management through multi-driven approaches, with approximately 7.7% and 7.4% year-on-year increases respectively as of June 30, 2025 - As of June 30, 2025, contracted GFA was approximately 354.9 million sqm with 1,966 contracted projects, representing increases of approximately 7.7% and 13.6% respectively compared to June 30, 2024[28] - As of June 30, 2025, GFA under management was approximately 253.7 million sqm with 1,531 projects under management, representing increases of 7.4% and 7.4% respectively compared to June 30, 2024[28] Changes in Contracted GFA and GFA Under Management (Thousand Sqm) | Metric | 2025 Contracted GFA | 2025 GFA Under Management | 2024 Contracted GFA | 2024 GFA Under Management | | :--- | :--- | :--- | :--- | :--- | | At beginning of period | 350,935 | 250,642 | 308,265 | 221,408 | | New additions | 20,756 | 18,778 | 37,588 | 24,464 | | Terminations | (16,837) | (15,679) | (16,323) | (9,526) | | At end of period | 354,854 | 253,741 | 329,530 | 236,346 | GFA Under Management and Property Management Service Revenue by Geographical Region (June 30, 2025) | Region | GFA (Thousand Sqm) | Revenue (RMB Thousand) | Revenue Share (%) | | :--- | :--- | :--- | :--- | | Eastern Region | 142,492 | 1,568,920 | 58.8 | | Northern Region | 35,244 | 359,743 | 13.5 | | Central-Southern Region | 37,429 | 337,362 | 12.6 | | Western Region | 28,448 | 302,813 | 11.4 | | Northeastern Region | 10,128 | 99,911 | 3.7 | | Total | 253,741 | 2,668,749 | 100.0 | Market Strategy and Cooperation Amid a challenging real estate market, the Company maintains market-oriented business with CIFI Group, continuously enhancing independent third-party market development and significantly increasing external expansion contract saturated revenue this period - The Company adheres to the principle of "conducting business with CIFI Group on market-oriented principles," effectively mitigating the negative impact of the severe real estate market[34] - The Company is committed to developing third-party markets through diversified approaches, primarily targeting regional property developers, existing residential properties, government bidding projects, and industrial parks and office buildings for commercial clients[35] - During this period, the Company's saturated revenue from external expansion contracts significantly increased year-on-year, achieving its best performance in history[36] Strategic Acquisitions Strategic acquisitions are a key part of the Company's history, adhering to 'pre-acquisition selection, post-acquisition management' principles to boost market share and expand business, with no acquisitions in H1 2025 - The Company adheres to the principle of "careful selection before investment and refined management after investment" in acquisitions, aiming to increase market share, expand regional business scale, and break industry barriers through strategic acquisitions[37] - Since 2022, due to external environmental disturbances and internal risk control requirements, the Company has significantly reduced the number of acquisition projects[37] - In the first half of 2025, the Company did not undertake any project acquisitions, but historical acquisition projects have achieved good integration and met performance targets[37][38] Property Portfolio Analysis The Group's GFA under management is detailed by property developer type, property type (residential/non-residential), and revenue model (lump-sum/commission), showing increasing contributions from third-party developers and non-residential properties Total GFA Under Management by Property Developer Type (Thousand Sqm) | Developer Type | June 30, 2025 (Thousand Sqm) | 2025 Share (%) | June 30, 2024 (Thousand Sqm) | 2024 Share (%) | | :--- | :--- | :--- | :--- | :--- | | CIFI Group | 58,857 | 23.2 | 60,477 | 25.6 | | Third-Party Property Developers | 194,884 | 76.8 | 175,869 | 74.4 | | Total | 253,741 | 100.0 | 236,346 | 100.0 | Total GFA Under Management and Property Management Service Revenue by Property Type | Property Type | 2025 GFA (Thousand Sqm) | 2025 Revenue (RMB Thousand) | 2025 Revenue Share (%) | 2024 GFA (Thousand Sqm) | 2024 Revenue (RMB Thousand) | 2024 Revenue Share (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Residential Properties | 154,368 | 1,334,666 | 50.0 | 151,779 | 1,457,526 | 59.2 | | Non-Residential Properties | 99,373 | 1,334,083 | 50.0 | 84,567 | 1,004,957 | 40.8 | | Total | 253,741 | 2,668,749 | 100.0 | 236,346 | 2,462,483 | 100.0 | Total GFA Under Management and Property Management Service Revenue by Revenue Model | Revenue Model | 2025 GFA (Thousand Sqm) | 2025 Revenue (RMB Thousand) | 2025 Revenue Share (%) | 2024 GFA (Thousand Sqm) | 2024 Revenue (RMB Thousand) | 2024 Revenue Share (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Lump-Sum | 251,450 | 2,664,929 | 99.9 | 234,476 | 2,460,204 | 99.9 | | Commission | 2,291 | 3,820 | 0.1 | 1,870 | 2,279 | 0.1 | | Total | 253,741 | 2,668,749 | 100.0 | 236,346 | 2,462,483 | 100.0 | Community Value-Added Services Amid a weak macroeconomy and property market, community value-added service revenue slightly decreased by 0.8% this period, prompting the Company to focus on higher-margin businesses and optimize services for sustainable development - During this period, revenue from community value-added services was approximately RMB 396.4 million, a decrease of approximately 0.8% compared to approximately RMB 399.4 million in the same period of 2024[43] - The Company is more focused on the development of community value-added services and has exited some low-margin and less sustainable businesses[43] Community Value-Added Service Revenue Details (RMB Thousand) | Service Category | 2025 (RMB Thousand) | 2025 Share (%) | 2024 (RMB Thousand) | 2024 Share (%) | | :--- | :--- | :--- | :--- | :--- | | Home Life Services | 207,433 | 52.3 | 221,493 | 55.4 | | Parking Space Management and Leasing Services | 72,576 | 18.3 | 76,153 | 19.1 | | Property Brokerage Services | 67,662 | 17.1 | 62,270 | 15.6 | | Value-Added Services for Public Areas | 48,732 | 12.3 | 39,482 | 9.9 | | Total | 396,403 | 100.0 | 399,398 | 100.0 | Value-Added Services to Non-Property Owners Revenue from value-added services to non-property owners significantly decreased by approximately 24.4% this period due to the weak Chinese real estate market, leading the Company to adopt a more cautious strategy and exit lower-expected-return projects - Revenue from value-added services to non-property owners decreased by approximately 24.4% to approximately RMB 269.6 million compared to RMB 356.6 million in the same period of 2024, primarily due to the weak Chinese real estate market[47] - The Company is more cautious in providing value-added services to non-property owners and has exited some service projects with relatively low expected returns[47] Value-Added Services to Non-Property Owners Revenue Details (RMB Thousand) | Service Category | 2025 (RMB Thousand) | 2025 Share (%) | 2024 (RMB Thousand) | 2024 Share (%) | | :--- | :--- | :--- | :--- | :--- | | Co-selling Services | 79,097 | 29.3 | 109,069 | 30.6 | | Additional Specialized Customization Services | 130,795 | 48.5 | 151,115 | 42.4 | | Early-stage Planning and Design Consulting Services | 10,943 | 4.1 | 18,615 | 5.2 | | Property Repair Services | 39,404 | 14.6 | 58,636 | 16.4 | | Pre-delivery Inspection Services | 9,370 | 3.5 | 19,178 | 5.4 | | Total | 269,609 | 100.0 | 356,613 | 100.0 | City Services The Company actively explores city services, enhancing professional capabilities through acquisitions and positioning itself as a municipal service manager, urban asset operator, and future development partner, aiming to be the preferred smart city service brand - The Company has gradually expanded from traditional residential property to non-residential areas and extended to urban service operations, actively exploring and accumulating experience since 2020[49] - Through the acquisition of Meizhong Environment in 2021, the Company further enhanced its professional capabilities in urban services[49] - The Company's city services are positioned as: urban municipal service manager (environmental sanitation and greening, renovation of old communities), urban asset operation assistant (management of idle urban spaces and regional resources), and urban future development partner (smart city construction)[49] Future Outlook Business Expansion Strategy The Company will pursue high-quality development, steadily expanding management area and service types, optimizing market expansion, deepening presence in key regions, and exploring high-potential non-residential sectors while strengthening cooperation with state-owned enterprises - The Company will be guided by high-quality development, steadily expanding its management area and service types, promoting simultaneous growth in scale and density[51] - Focus on deeply cultivating key regions such as the Yangtze River Delta, Guangdong-Hong Kong-Macao Greater Bay Area, and Beijing-Tianjin-Hebei, which have concentrated populations and active economies, gradually achieving a hundred-city layout and regional intensive operation[51] - Continuously expand non-residential businesses, with particular attention to high-potential sectors such as commercial complexes, medical and elderly care, logistics parks, and urban public buildings[51] - Deepen strategic cooperation with state-owned construction platforms, urban investment companies, and high-quality real estate enterprises, exploring integrated models of "build-operate-transfer + operation" and "government + market-oriented" approaches[52] Enhancing Value-Added Service Capabilities The Company will refine pre-delivery consulting, construction inspection, delivery acceptance, and property repair services to enhance overall solution delivery, transitioning from single to full-chain management, and exploring management output and digitalization for smaller property companies - Actively improve service modules such as pre-delivery consulting, construction inspection, delivery acceptance, and property repair management to enhance overall solution delivery capabilities and consolidate market advantages in value-added services to non-property owners[53] - Promote the transformation of services from single management to full-chain management to achieve greater value co-creation[53] - Explore providing management output and digital transformation services for small and medium-sized regional property companies, realizing a shift from "property manager" to "property solution provider"[53] Deepening Community Value-Added Services Community value-added services remain a strategic core, with the Company strengthening business unit models, iterating services around high-frequency, essential owner needs, and building a full-lifecycle service system for 'people, things, and spaces' to achieve sustainable growth through 'deep service, light assets, strong stickiness' - Community value-added services will remain the strategic core of "building a larger and stronger platform, optimizing and thoroughly developing the ecosystem," strengthening the business unit model and optimizing the independent operation of owner service lines[54] - Focus on continuously iterating services around high-frequency, essential owner needs, such as community housekeeping, space renovation, age-friendly renovation, neighborhood commerce, and community live-streaming sales[54] - Adopt "deep service, light assets, strong stickiness" as the community operation strategic direction, continuously exploring potential market demand to achieve sustainable growth in service revenue[54] Talent and Organizational Development The Company will build a stable and efficient core team through campus recruitment and external talent acquisition, implement a 'cage-for-birds' strategy for senior management, and promote flat organizational reform to enhance cross-departmental synergy and a 'results-oriented, accountability-driven' culture - Build a stable, efficient, and professional grassroots and middle-level core team through a dual-driven approach of "Yongdongli" campus recruitment and external talent introduction[55] - Adhere to the "cage-for-birds" strategy for the senior management team, focusing on managers with consistent values, strong execution, and systemic thinking[55] - Promote flat organizational reform, enhance cross-departmental collaboration efficiency, and strengthen a "results-oriented, accountability-driven" culture to improve overall organizational resilience and response speed[55] Technology and Smart Operations The Company will increase investment in smart technology R&D, enhance AI, IoT, and big data applications in property management, upgrade internal systems, and establish a 'centralized command center' to transition property management from 'human governance' to 'digital governance' - Continuously increase investment in smart technology companies and R&D, strengthening the integrated application of artificial intelligence, Internet of Things, and big data in property management service scenarios[56] - Comprehensively upgrade internal management systems, financial data platforms, HR cloud, contract management cloud, and other basic infrastructures to build a data foundation and enhance management efficiency and risk controllability[56] - Plan to build a "centralized command center" integrating smart central control, data decision-making, and remote collaboration, achieving centralized operation and real-time monitoring of city-level projects[56] Financial Analysis Revenue Analysis The Group's total revenue increased by 2.7% to RMB 3,460.8 million this period, with property management services as the largest contributor at 77.1%, while community value-added and city services saw slight declines, and value-added services to non-property owners significantly decreased due to the weak real estate market - During this period, the Group recorded revenue of approximately RMB 3,460.8 million, an increase of approximately 2.7% compared to approximately RMB 3,371.0 million in the same period of 2024[57] Revenue by Business Line (RMB Thousand) | Business Line | 2025 (RMB Thousand) | 2025 Share (%) | 2024 (RMB Thousand) | 2024 Share (%) | | :--- | :--- | :--- | :--- | :--- | | Property Management Services | 2,668,749 | 77.1 | 2,462,483 | 73.1 | | Community Value-Added Services | 396,403 | 11.4 | 399,398 | 11.8 | | Value-Added Services to Non-Property Owners | 269,609 | 7.8 | 356,613 | 10.6 | | City Services | 125,474 | 3.6 | 149,021 | 4.4 | | Others | 608 | 0.1 | 3,510 | 0.1 | | Total Revenue | 3,460,843 | 100.0 | 3,371,025 | 100.0 | Property Management Service Revenue by Property Developer Type (RMB Thousand) | Developer Type | 2025 (RMB Thousand) | 2025 Share (%) | 2024 (RMB Thousand) | 2024 Share (%) | | :--- | :--- | :--- | :--- | :--- | | CIFI Group | 614,349 | 23.0 | 717,025 | 29.1 | | Third-Party Property Developers | 2,054,400 | 77.0 | 1,745,458 | 70.9 | | Total Revenue | 2,668,749 | 100.0 | 2,462,483 | 100.0 | - Revenue from value-added services to non-property owners decreased by approximately 24.4% to RMB 269.6 million, primarily due to the weak Chinese real estate industry[60] - City services revenue decreased by approximately 15.8% to RMB 125.5 million, mainly due to the Company's strategy of reallocating resources and exiting some low-profit businesses[61] Costs and Gross Profit Service costs increased by 6.1% to RMB 2,815.4 million this period, leading to a 10.0% decrease in gross profit to RMB 645.4 million. The overall gross profit margin fell by 2.7 percentage points to 18.6%, primarily due to declines in property management and value-added services - Cost of services increased by approximately 6.1% from approximately RMB 2,654.3 million in the same period of 2024 to approximately RMB 2,815.4 million in this period, mainly due to the expansion of business scale[62] - Gross profit decreased by approximately 10.0% from approximately RMB 716.8 million in the same period of 2024 to approximately RMB 645.4 million in this period[63] Gross Profit Margin by Business Line (%) | Business Line | 2025 (%) | 2024 (%) | | :--- | :--- | :--- | | Property Management Services | 18.5 | 20.5 | | Community Value-Added Services | 28.2 | 37.1 | | Value-Added Services to Non-Property Owners | 8.9 | 12.4 | | City Services | 12.3 | 11.7 | | Total | 18.6 | 21.3 | - The Group's gross profit margin was 18.6%, a decrease of 2.7 percentage points from 21.3% in the same period of 2024, mainly due to a decrease in gross profit margins for property management services and value-added services[65] Other Income and Other Gains/Losses This period, the Group's other income and other gains and losses significantly increased by 113.7% to RMB 31.2 million, primarily due to a reduction in fair value losses on financial assets at fair value through profit or loss - The Group's other income and other gains and losses were approximately RMB 31.2 million, an increase of approximately 113.7% compared to approximately RMB 14.6 million in the same period of 2024[66] - The increase was mainly due to a decrease in fair value losses on financial assets at fair value through profit or loss during this period[66] Administrative and Selling Expenses The Group's total administrative and selling expenses decreased by approximately 5.7% to RMB 227.6 million this period compared to RMB 241.3 million in the same period of 2024 - The Group's total administrative and selling expenses were approximately RMB 227.6 million, a decrease of approximately 5.7% compared to approximately RMB 241.3 million in the same period of 2024[67] Other Expenses The Group recorded other expenses of approximately RMB 4.5 million this period, a decrease from approximately RMB 6.0 million in the same period of 2024 - The Group recorded other expenses of approximately RMB 4.5 million, a decrease from approximately RMB 6.0 million in the same period of 2024[68] Profit Before Income Tax Expense The Group's profit before income tax expense for this period was approximately RMB 348.1 million, a decrease of approximately 16.7% from RMB 417.9 million in the same period of 2024 - Profit before income tax expense was approximately RMB 348.1 million, a decrease of approximately 16.7% compared to approximately RMB 417.9 million in the same period of 2024[69] Income Tax Expense The Group's income tax expense for this period was approximately RMB 78.0 million, representing 22.4% of profit before income tax expense, a slight decrease compared to the same period in 2024 - The Group's income tax expense was approximately RMB 78.0 million, accounting for 22.4% of profit before income tax expense[70] - In the same period of 2024, income tax expense was approximately RMB 92.5 million, accounting for 22.1% of profit before income tax expense[70] Profit Attributable to Owners of the Company For the six months ended June 30, 2025, profit attributable to owners of the Company was approximately RMB 213.8 million, a decrease of approximately 19.4% from RMB 265.1 million in the same period of 2024 - Profit attributable to owners of the Company was approximately RMB 213.8 million, a decrease of approximately 19.4% compared to approximately RMB 265.1 million in the same period of 2024[71] Assets and Liabilities Analysis This section analyzes the Group's asset and liability structure, showing decreases in non-current assets like property, plant and equipment, investment properties, and intangible assets, while goodwill remained stable; trade and bills receivables increased, cash and cash equivalents decreased, and trade and bills payables increased while contract liabilities decreased - Property, plant and equipment were approximately RMB 88.9 million, a decrease from approximately RMB 96.8 million as of December 31, 2024[72] - Investment properties were approximately RMB 548.7 million, a decrease from approximately RMB 549.1 million as of December 31, 2024, mainly due to changes in fair value[73] - Intangible assets were approximately RMB 290.3 million, a decrease from approximately RMB 297.6 million as of December 31, 2024, mainly due to amortization of intangible assets during this period[74] - Goodwill was approximately RMB 1,488.2 million, remaining unchanged compared to December 31, 2024[75] - Trade and bills receivables were approximately RMB 2,861.2 million, an increase from approximately RMB 2,445.0 million as of December 31, 2024, mainly due to slower collection speeds amid a downward market trend[76] - Cash and cash equivalents were approximately RMB 2,241.3 million, a decrease from approximately RMB 2,617.8 million as of December 31, 2024[78] - Trade and bills payables were approximately RMB 1,518.9 million, an increase from approximately RMB 1,307.5 million as of December 31, 2024, mainly due to business expansion[79] - Contract liabilities were approximately RMB 732.2 million, a decrease from approximately RMB 940.1 million as of December 31, 2024[81] Cash Flow Analysis This period, the Group generated a net cash outflow from operating activities of approximately RMB 229.9 million, primarily due to increased trade receivables; net cash outflow from investing activities was RMB 17.3 million, and net cash outflow from financing activities was approximately RMB 128.3 million - Net cash outflow from operating activities was approximately RMB 229.9 million (H1 2024: net inflow of approximately RMB 101.6 million), mainly due to an increase in trade and bills receivables[82] - Net cash outflow from investing activities was RMB 17.3 million (H1 2024: net inflow of approximately RMB 22.4 million), mainly due to a decrease in proceeds from the disposal of financial assets at fair value through profit or loss[82] - Net cash outflow from financing activities was approximately RMB 128.3 million (H1 2024: approximately RMB 204.8 million), mainly due to a decrease in dividend payments[82] Gearing Ratio As of June 30, 2025, the Group's gearing ratio increased to 0.85% (December 31, 2024: 0.66%), calculated as the sum of long-term and short-term interest-bearing borrowings divided by total equity - As of June 30, 2025, the Group's gearing ratio was 0.85% (December 31, 2024: 0.66%)[83] - The gearing ratio is calculated as the sum of long-term and short-term interest-bearing borrowings divided by total equity[83] Capital Structure and Liquidity The Group's cash and bank balances are held in RMB, HKD, and USD, with all borrowings denominated in RMB at fixed interest rates; both equity attributable to owners of the Company and net current assets increased, maintaining a stable financial position - The Group's cash and bank balances are held in RMB, HKD, and USD, with all borrowings denominated in RMB and at fixed interest rates[84] - Equity attributable to owners of the Company was approximately RMB 5,108.4 million (December 31, 2024: approximately RMB 5,001.1 million)[84] - The Group's net current assets were approximately RMB 2,372.4 million (December 31, 2024: approximately RMB 2,222.4 million)[84] Liquidity and Financial Resources The Group's cash is primarily used for working capital, funded mainly by operating cash flow; as of June 30, 2025, borrowings totaled RMB 46.8 million, with certain property, plant, and equipment pledged as collateral - The Group's cash is primarily used for working capital, mainly funded by operating cash flow[85] - As of June 30, 2025, the Group's borrowings amounted to RMB 46.8 million (December 31, 2024: RMB 35.5 million)[85] - The Group has pledged property, plant and equipment with a carrying amount of approximately RMB 14.9 million as collateral for borrowings with a balance of approximately RMB 13.9 million[86] Contingent Liabilities As of June 30, 2025, the Group had no significant unquantified contingent liabilities, and legal claims are not expected to materially adversely affect its business, financial position, or operating results - As of June 30, 2025, the Group had no significant unquantified contingent liabilities[87] - The Group is involved in certain legal claims arising in the ordinary and daily course of business, which, after considering relevant legal advice, are not expected to have any material adverse effect on its business, financial position, or operating results[87] Material Investments and Future Plans As of June 30, 2025, the Group held no material investments, made no significant acquisitions or disposals of subsidiaries, associates, or joint ventures, and had no immediate future plans for material investments or capital assets - As of June 30, 2025, the Group held no material investments[88] - For the six months ended June 30, 2025, the Group did not have any material acquisitions or disposals of subsidiaries, associates, or joint ventures[89] - As of June 30, 2025, the Group had no immediate plans for any material investments and capital assets[90] Interest Rate Risk The Group's interest rate risk is limited to market risk from interest rate changes, primarily related to floating-rate bank balances, which management mitigates through monitoring and prudent measures - The Group's interest rate risk is limited to market risk arising from changes in interest rates, which is primarily related to floating-rate bank balances[91] - Management monitors interest rate risk and takes prudent measures to mitigate it[91] Foreign Exchange Risk The Group's primary operations are in China, with most revenue and expenses denominated in RMB, while some bank balances are in HKD and USD; no contracts are currently in place to hedge foreign exchange risk, but management continuously monitors and takes prudent measures - The Group's principal operations are conducted in China, and the majority of the Group's revenue and expenses are denominated in RMB[92] - Certain bank balances are denominated in HKD and USD[92] - Currently, the Group has not entered into any contracts to hedge its foreign exchange risk, but management will continue to monitor foreign exchange risk and take prudent measures to mitigate it[92] Employment and Remuneration Policies The Group adopts remuneration policies comparable to industry peers, based on responsibilities, market levels, and performance, and contributes to social welfare schemes; as of June 30, 2025, the Group employed 22,072 staff - The Group adopts remuneration policies similar to its peers, with employee remuneration determined by reference to their responsibilities and current market levels in the region[93] - Discretionary performance bonuses are paid to employees after evaluation, and the Group participates in various social welfare schemes in accordance with applicable statutory requirements in China[93] - As of June 30, 2025, the Group employed 22,072 staff (December 31, 2024: 25,734 staff)[93] Other Information Use of Proceeds from Initial Public Offering This section reviews the planned and actual use of net proceeds from the Company's IPO; as of June 30, 2025, most funds were utilized as planned, with remaining amounts primarily for developing a one-stop service community platform and 'Yue Life' online service platform - The Company raised net proceeds of approximately HKD 619.8 million from its initial public offering and an additional approximately HKD 63.2 million from the partial exercise of the over-allotment option on January 4, 2019[94] - The net proceeds were originally planned for strategic acquisitions and investment opportunities (55%), establishing smart communities and utilizing internet technology (26%), developing a one-stop service community platform (9%), and general corporate purposes (10%)[95] Use of Net Proceeds from Initial Public Offering (HKD Million) | Use | Net Proceeds Percentage | Net Proceeds Allocated (as of Jan 1, 2025) | Amount Utilized During Period (up to June 30, 2025) | Amount Utilized (as of June 30, 2025) | Unutilized Amount | Expected Timeline for Unutilized Net Proceeds | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Strategic acquisitions and investment opportunities | 55% | 375.6 | — | 375.6 | — | Not applicable | | Utilizing latest internet and information technology and establishing smart communities | 26% | 177.6 | — | 177.6 | — | Not applicable | | Developing a one-stop service community platform and our "Yue Life" online service platform | 9% | 61.5 | 17.8 | 48.3 | 13.2 | Before December 31, 2025 | | General corporate purposes and working capital | 10% | 68.3 | — | 68.3 | — | Not applicable | | Total Net Proceeds | 100% | 683.0 | 17.8 | 669.8 | 13.2 | | 2020 Placing and Subscription This section details the completion of the 2020 Placing and Subscription, where the Company received net proceeds of approximately HKD 1,564.5 million, primarily allocated for strategic acquisitions, IT-related development, and working capital/general corporate purposes - The 2020 Placing and 2020 Subscription were completed on June 8, 2020, and June 16, 2020, respectively, with a placing price of HKD 11.78 per share[99] - The Company received net proceeds of approximately HKD 1,564,476,000 from the 2020 Subscription[100] Use of Net Proceeds from 2020 Subscription (HKD Million) | Use | Net Proceeds Percentage | Net Proceeds Allocated (HKD Million) | Unutilized Amount (as of Jan 1, 2025) | Amount Utilized During Period (up to June 30, 2025) | Amount Utilized (as of June 30, 2025) | Unutilized Amount (as of June 30, 2025) | Expected Timeline for Unutilized Net Proceeds | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Strategic acquisitions and investment opportunities | 80% | 1,251.6 | — | — | 1,251.6 | — | Not applicable | | Information technology related development | 5% | 78.2 | 36.8 | 0.9 | 42.3 | 35.9 | Before December 31, 2025 | | Working capital and general corporate purposes | 15% | 234.7 | — | — | 234.7 | — | Not applicable | | Total | 100% | 1,564.5 | 36.8 | 0.9 | 1,528.6 | 35.9 | | Dividend Policy The Board resolved to declare an interim dividend of HKD 0.0678 per share and a special dividend of HKD 0.0271 per share for the six months ended June 30, 2025; share transfer registration will be suspended from September 4 to September 8, 2025, to determine dividend entitlements - The Board has resolved to declare an interim dividend of HKD 0.0678 per share and a special dividend of HKD 0.0271 per share for the six months ended June 30, 2025, totaling approximately HKD 117.2 million and approximately HKD 46.8 million respectively[101] - The interim dividend and special dividend are expected to be paid on September 15, 2025, to shareholders whose names appear on the Company's register of members at the close of business on September 8, 2025[101] - The Company will suspend share transfer registration from September 4, 2025, to September 8, 2025 (both dates inclusive), to determine dividend entitlements[102] Corporate Governance The Company applied good corporate governance principles and complied with the Corporate Governance Code provisions in Appendix C1 Part 2 of the HKEX Listing Rules during this period - The Company has applied the principles of good corporate governance and complied with the code provisions set out in the Corporate Governance Code in Appendix C1 Part 2 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited[103] Standard Code for Securities Transactions by Directors The Company adopted the Standard Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix C3 of the Listing Rules, and all directors confirmed compliance during this period after specific inquiry - The Company has adopted the Standard Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix C3 of the Listing Rules as the code of conduct for directors' securities transactions[104] - Following specific inquiries made to all directors, all directors confirmed compliance with the Standard Code during this period[104] Audit Committee The Audit Committee, comprising three independent non-executive directors with Mr. Zhang Weicong as Chairman, reviewed the unaudited interim results for the six months ended June 30, 2025, without disagreement with the Board on auditor recommendations - The Audit Committee comprises three independent non-executive directors, namely Mr. Yu Tiecheng, Mr. Ma Yongyi, and Mr. Zhang Weicong, with Mr. Zhang Weicong serving as Chairman[105] - The Audit Committee has reviewed the unaudited interim results for the six months ended June 30, 2025, and there were no disagreements with the Board regarding any recommendations provided by the external auditors concerning their selection, appointment, dismissal, or removal[105] - The Company's auditor, BDO Limited, has reviewed the Group's unaudited condensed consolidated interim financial statements for the six months ended June 30, 2025[105] Dealings in Listed Securities During this period, neither the Company nor its subsidiaries purchased, sold, or redeemed any of the Company's listed securities, and as of June 30, 2025, the Company held no treasury shares - During this period, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities (including the sale or transfer of treasury shares)[106] - As of June 30, 2025, the Company held no treasury shares[106] Events After Reporting Period No discloseable events that could materially impact the Group's operations and financial results occurred after June 30, 2025, up to the date of this announcement - No discloseable events that could materially impact the Group's operations and financial results occurred after June 30, 2025, up to the date of this announcement[107] Publication of Interim Results The Company's interim report for the six months ended June 30, 2025, containing all information required by the Listing Rules, will be dispatched to shareholders and published on the HKEX and Company websites in due course - The Company's interim report for the six months ended June 30, 2025, containing all information required by the Listing Rules, will be dispatched to shareholders (upon request) in due course[108] - The interim report will be published on the HKEX website www.hkexnews.hk and the Company's website www.ysservice.com.cn[108](index=108&type=chunk) Acknowledgements and Board of Directors Chairman Lin Zhong, on behalf of the Board, expressed sincere gratitude to customers, suppliers, shareholders, and all management and staff for their support and contributions during this period, and listed the Board members as of the announcement date - Chairman Lin Zhong, on behalf of the Board, sincerely thanked customers, suppliers, and shareholders for their continuous support to the Group, and also expressed gratitude to all management and staff for their hard work and contributions during this period[109] - As of the date of this announcement, the executive directors are Mr. Lin Zhong, Mr. Zhou Hongbin, and Mr. Zhou Di; the non-executive directors are Ms. Cui Xiaoqing and Mr. Lin Zhubo; and the independent non-executive directors are Mr. Ma Yongyi, Mr. Yu Tiecheng, and Mr. Zhang Weicong[110]