京城佳业(02210) - 2025 - 中期业绩

Company Overview Performance Summary Revenue grew 17.5% to RMB 1,045.1 million, but significant declines in gross profit and net profit drove margins and earnings per share lower Performance Summary for the Six Months Ended June 30, 2025 | Indicator | 2025 (RMB Million) | 2024 (RMB Million) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 1,045.1 | 889.6 | +17.5% | | Gross Profit | 160.2 | 181.6 | -11.8% | | Gross Profit Margin | 15.3% | 20.4% | -5.1pp | | Profit for the Year | 24.4 | 47.0 | -48.1% | | Net Profit Margin | 2.3% | 5.3% | -3.0pp | | Profit for the Year Attributable to Owners of the Company | 22.6 | 45.3 | -50.1% | | Basic Earnings Per Share (RMB Yuan) | 0.15 | 0.31 | -51.6% | | Cash and Cash Equivalents | 585.9 | 883.0 | -33.6% | | GFA Under Management (Million sq.m.) | 47.4 | 43.5 | +9.0% | Corporate Information The company was established in China in 2020, listed on the Hong Kong Stock Exchange in 2021, and primarily provides property management services in China - The company was established in China on December 22, 2020, and its H-shares were listed on the Main Board of the Hong Kong Stock Exchange on November 10, 2021[8] - The Group is primarily engaged in providing property management and related services in China[9] Basis of Preparation and Accounting Policies The interim financial report is prepared under IAS 34, reviewed by KPMG, and includes an amendment to IAS 21 with no material impact - The interim financial report is prepared in accordance with the Listing Rules of the Hong Kong Stock Exchange and International Accounting Standard 34 "Interim Financial Reporting"[10] - The report is unaudited but has been reviewed by KPMG in accordance with Hong Kong Standard on Review Engagements 2410[11] - An amendment to IAS 21 was adopted during the period, but it had no significant impact on this report as there were no transactions involving non-convertible foreign currencies[12] Financial Performance Consolidated Statement of Profit or Loss and Other Comprehensive Income Revenue grew 17.5%, but faster cost growth, market competition, and impairment losses led to a 48.1% decline in profit for the period Abridged Consolidated Statement of Profit or Loss and Other Comprehensive Income for the Six Months Ended June 30, 2025 | Indicator | 2025 (RMB Thousand) | 2024 (RMB Thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 1,045,087 | 889,622 | +17.5% | | Operating Costs | (884,899) | (708,033) | +25.0% | | Gross Profit | 160,188 | 181,589 | -11.8% | | Other (Expenses)/Income | (13,242) | 401 | -3400% | | Administrative Expenses | (81,283) | (84,714) | -4.0% | | Operating Profit | 25,589 | 58,216 | -56.0% | | Profit Before Tax | 32,979 | 62,167 | -47.0% | | Profit for the Period | 24,403 | 46,973 | -48.1% | | Profit Attributable to Equity Shareholders of the Company | 22,624 | 45,293 | -50.1% | | Basic Earnings Per Share (RMB Yuan) | 0.15 | 0.31 | -51.6% | Revenue and Operating Costs - Total revenue increased by 17.5% year-on-year to RMB 1,045.1 million, mainly due to expanded GFA under management and an increase in projects[4][55] - Operating costs grew by 25.0% year-on-year to RMB 884.9 million, outpacing revenue growth primarily due to increased subcontracting costs from expanded GFA[4][56] Gross Profit and Gross Margin - Gross profit decreased by 11.8% year-on-year to RMB 160.2 million, with the gross margin falling from 20.4% to 15.3%[4][57] - The decline in gross margin was mainly due to intense industry competition, which required increased upfront and quality maintenance investments in property management projects to gain market share[57] Other Expenses and Income - Other (expenses)/income shifted from an income of RMB 0.4 million in the same period of 2024 to an expense of RMB 13.2 million, a decrease of approximately 3,400%[20][59] - The change was primarily due to fair value losses on investment properties and impairment losses on modular housing equipment[20][59] Operating Profit and Profit Before Tax - Operating profit decreased by 56.0% year-on-year to RMB 25.6 million, and profit before tax decreased by 47.0% to RMB 33.0 million[4] Income Tax and Profit for the Period - Profit for the period decreased by 48.1% year-on-year to RMB 24.4 million, while profit attributable to equity shareholders decreased by 50.1% to RMB 22.6 million[5][60] - The net profit margin fell to 2.3%, mainly due to increased upfront and quality maintenance investments in property management projects and impairment losses on equipment from lower rental prices for modular housing[60] - Income tax expense was RMB 8.6 million, a decrease from RMB 15.2 million in the prior-year period, primarily due to lower profits[4][25] Earnings Per Share - Basic earnings per share decreased to RMB 0.15 from RMB 0.31 in the same period of 2024[5][25] - Diluted earnings per share were the same as basic earnings per share, as the Group had no dilutive potential ordinary shares[25] Consolidated Statement of Financial Position Total assets slightly decreased, cash and cash equivalents reduced, but the debt-to-asset ratio improved, while total equity saw a minor decline due to fair value changes in other financial assets Abridged Consolidated Statement of Financial Position as of June 30, 2025 | Indicator | June 30, 2025 (RMB Thousand) | December 31, 2024 (RMB Thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Non-current Assets | 446,271 | 451,948 | -1.3% | | Current Assets | 1,996,073 | 2,089,496 | -4.5% | | Current Liabilities | 1,430,667 | 1,517,166 | -5.7% | | Net Current Assets | 565,406 | 572,330 | -1.2% | | Total Assets less Current Liabilities | 1,011,677 | 1,024,278 | -1.2% | | Non-current Liabilities | 118,376 | 124,772 | -5.1% | | Net Assets | 893,301 | 899,506 | -0.7% | | Total Equity | 893,301 | 899,506 | -0.7% | | Cash and Cash Equivalents | 585,935 | 883,012 | -33.6% | | Debt-to-Asset Ratio | 63.4% | 64.6% | -1.2pp | Assets - Non-current assets decreased slightly, mainly due to fair value losses on investment properties and impairment of property, plant and equipment[6][62][63] - Current assets decreased by 4.5%, primarily due to the allocation of some idle funds to time deposits with maturities over three months, as well as payments of prior-year dividends and supplier accounts[6][61] Liabilities - Current liabilities decreased by 5.7% and non-current liabilities decreased by 5.1%, resulting in a decline in total liabilities[6][7] - The debt-to-asset ratio improved from 64.6% as of December 31, 2024, to 63.4%, indicating a slight improvement in financial leverage[61] Equity - Total equity decreased slightly by 0.7% to RMB 893.3 million, mainly affected by fair value changes in other financial assets[7][61] Business Review and Operational Analysis Overall Business Performance Total revenue grew 17.5%, driven by growth across all three segments, with property management services remaining the primary contributor Revenue Breakdown by Business Segment for the Six Months Ended June 30, 2025 | Business Segment | 2025 (RMB Thousand) | Revenue Share (%) | 2024 (RMB Thousand) | Revenue Share (%) | Growth Rate (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | Property Management Services | 745,627 | 71.3 | 615,433 | 69.2 | 21.2 | | Value-added Services to Non-property Owners | 122,836 | 11.8 | 106,083 | 11.9 | 15.8 | | Community Value-added Services | 176,624 | 16.9 | 168,106 | 18.9 | 5.1 | | Total | 1,045,087 | 100.0 | 889,622 | 100.0 | 17.5 | - The Group's total revenue grew by 17.5% year-on-year to RMB 1,045.1 million, driven by all three business segments[55] Property Management Services Revenue from property management services grew 21.2% to RMB 745.6 million, driven by an expanded GFA of 47.4 million sq.m. and third-party market expansion - Revenue from property management services grew by 21.2% year-on-year to RMB 745.6 million, accounting for approximately 71.3% of total revenue[34][53] - GFA under management increased to 47.4 million sq.m., with GFA from third-party projects growing by 19.8% to 24.9 million sq.m[35] - Newly signed GFA was approximately 2.6 million sq.m., a year-on-year increase of 5.6%; 28 new comprehensive property management projects were added, with third-party projects accounting for 89.3%[36] Revenue and GFA Under Management Details of GFA Under Management and Number of Projects for Property Management Services as of June 30, 2025 | Project Source | 2025 GFA (Thousand sq.m.) | 2025 Share (%) | 2025 No. of Projects | 2024 GFA (Thousand sq.m.) | 2024 Share (%) | 2024 No. of Projects | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Beijing Urban Construction Group and its JVs or associates | 22,478 | 47.5 | 140 | 22,677 | 52.2 | 144 | | Third Parties | 24,887 | 52.5 | 149 | 20,778 | 47.8 | 123 | | Total | 47,365 | 100.0 | 289 | 43,455 | 100.0 | 267 | - Revenue from non-residential property management services grew significantly by 32.3% to RMB 441.8 million, accounting for 59.2% of total property management service revenue, indicating effective portfolio adjustment[37][38] Market Expansion and Project Types - Newly acquired projects featured more high-quality large-scale projects, a leading position in administrative office properties, steady progress in university and research institute business, rapid expansion in rail transit projects, and the first-time expansion into the new museum property sector[37] Revenue, GFA, and Number of Projects for Property Management Services by Property Type as of June 30, 2025 | Property Type | 2025 Revenue (RMB Thousand) | 2025 Revenue Share (%) | 2025 GFA (Thousand sq.m.) | 2025 GFA Share (%) | 2025 No. of Projects | 2024 Revenue (RMB Thousand) | 2024 Revenue Share (%) | 2024 GFA (Thousand sq.m.) | 2024 GFA Share (%) | 2024 No. of Projects | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Residential Properties | 303,865 | 40.8 | 28,333 | 59.8 | 158 | 281,562 | 45.8 | 27,675 | 63.7 | 156 | | Non-residential Properties | 441,762 | 59.2 | 19,032 | 40.2 | 131 | 333,871 | 54.2 | 15,780 | 36.3 | 111 | | Total | 745,627 | 100.0 | 47,365 | 100.0 | 289 | 615,433 | 100.0 | 43,455 | 100.0 | 267 | Service Quality and Operational Management - The Group adhered to a "people-oriented" approach to enhance service quality, revised inspection standards for various property types, upgraded university service standards, and introduced a tiered service model for university property staffing[39] - In 2025, the Group's brand value achieved breakthrough growth, rising to 16th place in the China Property Service Top 100 ranking and receiving over 20 awards[39] - In operational management, the company strengthened its project pre-planning mechanism, implemented lean management, and continued efforts in accounts receivable collection and governance of loss-making or inefficient projects[40] Digitalization - The overall plan for the company's digital platform construction was completed, integrating the "Jia Xiang Hui" platform with the finance-business integration platform, and adding modules such as visitor appointments and delivery personnel identity registration[40] - A "400 + online" dual-dimensional satisfaction survey system was established, and a smart dormitory management system was launched in school projects, enriching personalized application scenarios[40] Value-added Services to Non-property Owners Revenue from these services grew 15.8% to RMB 122.8 million, driven by engineering, sales office, and other services, though tenant and construction site services declined - Revenue from value-added services to non-property owners grew by 15.8% year-on-year to RMB 122.8 million, accounting for approximately 11.8% of total revenue[41][44][53] Service Types and Revenue Revenue Breakdown for Value-added Services to Non-property Owners for the Six Months Ended June 30, 2025 | Service Type | 2025 Revenue (RMB Thousand) | 2025 Revenue Share (%) | 2024 Revenue (RMB Thousand) | 2024 Revenue Share (%) | | :--- | :--- | :--- | :--- | :--- | | Engineering, Operation and Maintenance Services | 43,577 | 35.5 | 35,047 | 33.0 | | Tenant Sourcing and Management Services | 16,754 | 13.6 | 26,772 | 25.2 | | Sales Office and Showroom Management and Delivery Services | 26,383 | 21.5 | 17,894 | 16.9 | | Construction Site Property and Modular Housing Leasing Services | 7,498 | 6.1 | 11,134 | 10.5 | | Other Services | 28,624 | 23.3 | 15,236 | 14.4 | | Total | 122,836 | 100.0 | 106,083 | 100.0 | Engineering, Operation and Maintenance Services - Revenue from engineering, operation and maintenance services grew by 24.3% year-on-year to RMB 43.6 million, mainly benefiting from a continuous increase in IFM service projects and new client acquisition[44] - The Group secured 7 new clients from government, corporate, university, and hospital sectors, and explored IFM and energy management to reduce building energy consumption and carbon emissions through technology[44] Tenant Sourcing and Management Services - Revenue from tenant sourcing and management services was RMB 16.8 million, accounting for approximately 13.6% of revenue from value-added services to non-property owners[45] - Amid low vacancy rates in the office market, the company increased customer stickiness through diversified marketing initiatives and enhanced services[45] Sales Office and Showroom Management and Delivery Services - Revenue from sales office and showroom management and delivery services grew by 47.4% year-on-year to RMB 26.4 million, mainly due to service extensions and new project acquisitions[45] - Services covered 30 projects across multiple regions including Beijing, Hebei, Sichuan, Chongqing, and Hainan, demonstrating strengthening market expansion and service capabilities[45] Construction Site Property and Modular Housing Leasing Services - Revenue from construction site property and modular housing leasing services decreased by 32.7% year-on-year to RMB 7.5 million, mainly due to the completion of key projects and a decline in market rents for modular housing[46] - The company is focusing on service innovation, strengthening market penetration, and seeking to utilize existing modular housing to build and operate "Builders' Homes" projects to increase revenue[46] Other Value-added Services to Non-property Owners - Other non-property owner services revenue achieved significant growth of 87.9% to RMB 28.6 million, primarily driven by specialized cleaning and landscaping engineering services, particularly for metro projects[46] Community Value-added Services Revenue grew 5.1% to RMB 176.6 million, driven by the promotion of livelihood-related businesses and exploration of community facility renewal services - Revenue from community value-added services grew by 5.1% year-on-year to RMB 176.6 million, accounting for approximately 16.9% of total revenue[47][49][53] - The growth was mainly due to the company's increased promotion of livelihood-related businesses within community value-added services and the gradual exploration of community facility and equipment renewal services[49] Service Types and Revenue Revenue Breakdown for Community Value-added Services for the Six Months Ended June 30, 2025 | Service Type | 2025 Revenue (RMB Thousand) | 2025 Revenue Share (%) | 2024 Revenue (RMB Thousand) | 2024 Revenue Share (%) | | :--- | :--- | :--- | :--- | :--- | | Heating Services | 76,625 | 43.4 | 75,824 | 45.1 | | Catering Services | 37,965 | 21.5 | 42,122 | 25.1 | | Car Park Operation Services | 35,476 | 20.1 | 32,017 | 19.0 | | Other Services | 26,558 | 15.0 | 18,143 | 10.8 | | Total | 176,624 | 100.0 | 168,106 | 100.0 | Heating Services - Revenue from heating services grew by 1.1% year-on-year to RMB 76.6 million, accounting for approximately 43.4% of community value-added services[49] - The Group provided heating operation services for 36 projects, with a total heating area of nearly 4.73 million sq.m., covering over 38,000 households[49] - The company continued to improve heating equipment upgrades and renovations, using technology for energy saving and emission reduction, and exploring intelligent variable frequency heating management[49] Catering Services - Revenue from catering services decreased by 9.9% year-on-year to RMB 38.0 million, mainly affected by changes in client budgets and demand[50] - The Group signed 2 new group catering projects and continued to provide catering services to ByteDance Group, enhancing its professional capabilities and market competitiveness[50] Car Park Operation Services and Other Community Value-added Services - Revenue from car park operation services and other community value-added services grew by 23.7% to RMB 62.0 million[51] - The growth was mainly driven by the promotion of livelihood-related businesses, existing home improvement services (revenue of nearly RMB 6.0 million), and exploration of community renewal businesses (revenue of nearly RMB 4.0 million)[51] - The Group is actively exploring entry into the community elderly care service sector to meet customer needs and achieve business growth[51] Financial Position and Liquidity Current Assets and Capital Structure The Group maintains a sound financial position, though cash decreased due to fund allocation to time deposits, dividend payments, and industry payment cycles - Current assets were approximately RMB 1,996.1 million, a decrease of 4.5% from December 31, 2024[61] - Cash and cash equivalents were approximately RMB 585.9 million, a decrease of 33.6% from December 31, 2024[61] - The decrease in cash was mainly due to the allocation of some idle funds to time deposits with maturities over three months, payment of prior-year dividends and supplier accounts, and the industry practice of customers paying property fees in the second half of the year[61] Property, Plant and Equipment and Right-of-use Assets These assets decreased by RMB 14.6 million, primarily due to increased depreciation and an impairment loss recognized on modular housing equipment - Property, plant and equipment and right-of-use assets were approximately RMB 185.2 million, a decrease of RMB 14.6 million from December 31, 2024[62] - The decrease was mainly due to increased depreciation and an impairment loss recognized on modular housing equipment[62] Investment Properties Investment properties decreased by RMB 1.9 million, primarily attributable to fair value changes in investment real estate properties - Investment properties were approximately RMB 105.6 million, a decrease of RMB 1.9 million from December 31, 2024[63] - The decrease was mainly attributable to fair value changes in investment real estate properties[63] Trade and Other Receivables and Prepayments These balances increased by RMB 103.9 million, mainly due to industry payment cycles and increased bid deposits and utility advances from market expansion - Trade and other receivables and prepayments were approximately RMB 901.5 million, an increase of RMB 103.9 million from December 31, 2024[27][64] - The increase was mainly due to the industry practice of customers paying property fees in the second half of the year, leading to higher trade receivables[64] - The increase in other receivables was primarily due to higher bid deposits from market expansion and increased advances for water, electricity, and gas fees from business growth[64] Details of Trade and Other Receivables and Prepayments as of June 30, 2025 | Indicator | June 30, 2025 (RMB Thousand) | December 31, 2024 (RMB Thousand) | | :--- | :--- | :--- | | Trade Receivables (net of provision) | 822,607 | 699,608 | | Amounts due from related parties | 14,075 | 16,018 | | Interest Receivable | 3,338 | 2,400 | | Deposits | 23,433 | 18,865 | | Other Receivables (net of provision) | 10,189 | 9,357 | | Prepayments | 13,888 | 38,175 | | Deductible VAT input tax | 14,971 | 14,166 | | Total | 901,493 | 797,560 | Trade and Other Payables These balances decreased by RMB 34.2 million, mainly due to payments made to suppliers during the reporting period - Trade and other payables were approximately RMB 1,013.6 million, a decrease of RMB 34.2 million from December 31, 2024[29][65] - The decrease was mainly due to payments made to suppliers during the reporting period[65] Details of Trade and Other Payables as of June 30, 2025 | Indicator | June 30, 2025 (RMB Thousand) | December 31, 2024 (RMB Thousand) | | :--- | :--- | :--- | | Trade Payables | 591,821 | 600,963 | | Amounts due to related parties | 10,243 | 8,064 | | Accrued wages and other benefits | 23,069 | 20,071 | | Other taxes and charges payable | 45,105 | 52,393 | | Deposits | 57,433 | 62,875 | | Receipts in advance | 86,894 | 80,017 | | Housing maintenance funds payable | 131,273 | 156,376 | | Other payables and accrued expenses | 67,797 | 67,067 | | Total | 1,013,635 | 1,047,826 | Capital Expenditure Capital expenditure decreased by 39.0% year-on-year to RMB 6.9 million, mainly due to reduced payments for modular housing purchases - Capital expenditure was approximately RMB 6.9 million, a decrease of 39.0% from RMB 11.3 million in the same period of 2024[66] - The decrease was mainly due to reduced payments for modular housing purchases; capital expenditure in the current period was primarily for office equipment[66] Borrowings and Pledge of Assets As of the end of the reporting period, the Group had no borrowings or bank loans and had not pledged any assets, indicating a sound financial structure - As of the end of the reporting period, the Group had no borrowings or bank loans[67] - As of the end of the reporting period, the Group had not pledged any assets[68] Other Important Information Material Investments, Acquisitions and Disposals, and Future Plans The Group had no material investments, acquisitions, or disposals during the period and will continue to seek new business development opportunities - During the reporting period, the Group had no material investments, acquisitions, or disposals[69] - The Board has not approved other material investments or acquisitions or disposals of material capital assets but will continue to seek new opportunities for business development[69] Use of Proceeds from Listing Net proceeds of approximately HK$246.91 million from the H-share listing have been utilized as planned, with the remainder held in interest-bearing deposits - The net proceeds from the listing were approximately HK$246.91 million[70] - As of December 16, 2024, the Board approved a change in the proposed use of approximately HK$151.73 million of unutilized proceeds[70] - As of the end of the reporting period, the proceeds have been used as planned, and the unused portion has been placed as interest-bearing deposits in domestic fundraising bank accounts[70] Details on the Use of Proceeds from Listing as of June 30, 2025 | Original Planned Use | Original Planned Amount (HK$ Million) | Unutilized Proceeds as of Dec 31, 2024 (HK$ Million) | Revised Use | Actual Amount Used for the Six Months Ended June 30, 2025 (HK$ Million) | Unutilized Proceeds as of June 30, 2025 (HK$ Million) | | :--- | :--- | :--- | :--- | :--- | :--- | | Strategic investments and acquisitions | 148.15 | 91.04 | Strategic investments and acquisitions | 17.40 | 73.64 | | Enhancing digital and intelligent management systems | 24.69 | 15.17 | Enhancing digital and intelligent management systems | 1.25 | 13.92 | | Expanding value-added services | 12.35 | 7.59 | Expanding value-added services | 0.63 | 6.96 | | Working capital and general corporate purposes | 61.73 | 37.93 | Working capital and general corporate purposes | 3.48 | 34.45 | | Total | 246.91 | 151.73 | Total | 22.76 | 128.97 | Contingent Liabilities and Foreign Exchange Risk The Group had no significant contingent liabilities and does not expect significant foreign exchange risk as its operations are primarily conducted in RMB - As of the end of the reporting period, the Group had no significant contingent liabilities[72] - The Group conducts its business in RMB and does not expect to face significant risks related to exchange rate fluctuations; it currently does not employ a foreign exchange hedging policy[73] Events After the Reporting Period No significant events that could materially affect the Group's operational and financial performance have occurred since the end of the reporting period - Other than disclosed in this announcement, no significant events that could materially affect the Group's operational and financial performance occurred between the end of the reporting period and the date of this announcement[74] Employees and Remuneration Policy As of June 30, 2025, the Group had 1,869 employees and maintains a competitive, performance-oriented remuneration plan with comprehensive benefits - As of June 30, 2025, the Group had 1,869 employees (December 31, 2024: 1,871)[75] - The company has established a market-based, competitive, and performance-oriented remuneration plan, providing comprehensive benefits such as pensions and medical insurance[75] - The company emphasizes recruiting outstanding talent, providing continuous training programs and career development opportunities to build teams of executives, project managers, and professional talents[75] Corporate Governance and Securities Transactions The company has adopted and complied with the Corporate Governance Code and the Model Code for Securities Transactions by Directors as set out in the Listing Rules - The company has adopted and complied with the Corporate Governance Code contained in Appendix C1 of the Listing Rules of the Stock Exchange[76] - The company has adopted and complied with the Model Code for Securities Transactions by Directors of Listed Issuers contained in Appendix C3 of the Listing Rules, and all directors have confirmed compliance[77] Review of Accounts and Dividend The Audit Committee has reviewed the unaudited interim results, and the Board does not recommend the payment of an interim dividend for the period - The Audit Committee has reviewed the unaudited interim results for the six months ended June 30, 2025, and considers them to be in compliance with applicable accounting standards[80] - The Board of Directors does not recommend the payment of an interim dividend for the six months ended June 30, 2025[81] Publication of Interim Results The interim results announcement is available on the company's and the Stock Exchange's websites, with the interim report to be dispatched to shareholders in due course - The interim results announcement has been published on the company's website (www.bcjps.com) and the Stock Exchange's website (www.hkexnews.hk)[82](index=82&type=chunk) - The interim report will be dispatched to the company's shareholders and published on the aforementioned websites in due course[82]