卓越商企服务(06989) - 2025 - 中期业绩

Executive Summary The company's key financial data for the first half of 2025 shows a slight decline in revenue and profit compared to the previous year Key Financial Data Overview for H1 2025 | Metric | H1 2025 (RMB million) | H1 2024 (RMB million) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 2,015.15 | 2,082.48 | -3.2% | | Gross Profit | 379.06 | 422.17 | -10.2% | | Profit | 162.31 | 183.80 | -11.7% | | Profit Attributable to Equity Holders of the Company | 146.99 | 170.50 | -13.8% | Performance Consolidated Statement of Profit or Loss and Other Comprehensive Income For the reporting period, the company's revenue from continuing operations was RMB 1,996,183 thousand, with a profit attributable to equity holders of RMB 146,992 thousand Consolidated Statement of Profit or Loss and Other Comprehensive Income (Unaudited) | Metric | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Revenue from Continuing Operations | 1,996,183 | 2,063,123 | | Cost of Sales | (1,635,774) | (1,659,585) | | Gross Profit | 360,409 | 403,538 | | Operating Profit | 207,930 | 222,596 | | Profit Before Tax | 211,383 | 227,674 | | Income Tax | (53,783) | (42,016) | | Profit for the Period from Continuing Operations | 157,600 | 185,658 | | Profit/(Loss) for the Period from Discontinued Operations | 4,706 | (1,859) | | Profit for the Period | 162,306 | 183,799 | | Attributable to Equity Holders of the Company | 146,992 | 170,499 | | Attributable to Non-controlling Interests | 15,314 | 13,300 | | Basic Earnings Per Share (RMB cents) | 12.05 | 13.97 | Consolidated Statement of Financial Position As of June 30, 2025, the company's total assets less current liabilities were RMB 3,955,538 thousand, with total equity attributable to equity holders of RMB 3,804,808 thousand Consolidated Statement of Financial Position (Unaudited) | Metric | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Non-current Assets | 1,519,338 | 1,317,425 | | Current Assets | 3,826,922 | 3,822,768 | | Current Liabilities | 1,390,722 | 1,269,083 | | Net Current Assets | 2,436,200 | 2,553,685 | | Total Assets Less Current Liabilities | 3,955,538 | 3,871,110 | | Non-current Liabilities | 67,732 | 73,597 | | Net Assets | 3,887,806 | 3,797,513 | | Total Equity Attributable to Equity Holders of the Company | 3,804,808 | 3,728,252 | | Non-controlling Interests | 82,998 | 69,261 | | Total Equity | 3,887,806 | 3,797,513 | Notes Basis of Preparation The interim financial information is prepared in accordance with HKAS 34 and the Listing Rules, adopting consistent accounting policies with the 2024 annual financial statements - The interim financial information is prepared in accordance with HKAS 34 "Interim Financial Reporting" and the Listing Rules, authorized for issue on August 26, 2025[10] - Preparation of interim financial reports involves management judgments, estimates, and assumptions, where actual results may differ from estimates[11] Changes in Accounting Policies The Group has applied the HKAS 21 amendment, but it has no material impact on the interim announcement due to the absence of foreign currency non-exchangeable transactions - The Group has applied the HKAS 21 amendment "The Effects of Changes in Foreign Exchange Rates – Lack of Exchangeability", which has no material impact on this interim announcement due to the absence of foreign currency non-exchangeable transactions[12] Discontinued Operations During the period, the Group disposed of certain wholly-owned subsidiaries for a total consideration of RMB 337,789,000, resulting in a profit of RMB 4,706 thousand from discontinued operations - The Group has disposed of certain wholly-owned subsidiaries for a total consideration of RMB 337,789,000, paid by equity, commercial apartments, and cash, with the transaction completed[13] Profit/(Loss) and Basic Earnings Per Share/(Loss) from Discontinued Operations | Metric | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Profit/(Loss) for the Period from Discontinued Operations | 9,351 | (1,859) | | Loss on Disposal of Discontinued Operations | (2,152) | – | | Income Tax on Disposal of Discontinued Operations | (2,493) | – | | Profit/(Loss) from Discontinued Operations, Net of Tax | 4,706 | (1,859) | | Basic Earnings Per Share/(Loss) | 0.39 | (0.15) | Impact of Disposal on the Group's Financial Position | Current Assets | 686,744 | | :--- | :--- | | Non-current Assets | 8,445 | | Current Liabilities | (355,248) | | Net Assets Attributable to the Group | 339,941 | | Consideration | 337,789 | | Loss on Disposal of Discontinued Operations | (2,152) | | Net Cash Inflow from Disposal | 52,970 | Revenue and Segment Reporting The Group's total revenue for the period was RMB 2,015,145 thousand, a 3.2% decrease year-on-year, primarily from property management and discontinued financial services in Mainland China - The Group's principal activities are providing basic property management services, value-added services, and financial services (discontinued)[18] Classification of Revenue from Contracts with Customers by Major Category | Revenue Category | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Basic Property Management Services | 1,799,782 | 1,713,976 | | Value-added Services | 184,284 | 349,147 | | Car Park Space Sales | 12,117 | – | | Financial Services Income (Discontinued Operations) | 18,962 | 19,355 | | Total Revenue | 2,015,145 | 2,082,478 | - For the six months ended June 30, 2025, Excellence Group and other related parties contributed RMB 162,451 thousand in revenue, a 38.1% decrease year-on-year[21] - The Group manages its business based on two reportable segments: property management services and financial services (disposed of in 2025)[24] Revenue by Time of Recognition and Segment | Segment Revenue | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Property Management Services | 1,996,183 | 2,063,123 | | Financial Services (Discontinued Operations) | 18,962 | 19,355 | | Reportable Segment Revenue from External Customers | 2,015,145 | 2,082,478 | | Reportable Segment Profit/(Loss) | 225,399 | 228,090 | - The majority of the Group's revenue is generated in Mainland China[27] Income Tax Income tax expense for the period was RMB 53,783 thousand, a 27.9% increase year-on-year, with major PRC subsidiaries subject to a 25% statutory tax rate Income Tax Expense Details | Metric | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Current Tax | 63,357 | 67,950 | | Deferred Tax | (9,574) | (25,934) | | Income Tax | 53,783 | 42,016 | - Major PRC subsidiaries are subject to a 25% statutory corporate income tax rate, while some eligible small profit enterprises or those registered in western regions enjoy a 15% preferential tax rate[29] - Dividends distributed by PRC resident enterprises to non-PRC resident enterprise investors are subject to a 10% withholding tax, with eligible Hong Kong tax residents enjoying a 5% reduced tax rate[30] Basic Earnings Per Share Basic earnings per share for the six months ended June 30, 2025, was 12.05 RMB cents, based on profit attributable to equity holders of RMB 146,992 thousand Basic Earnings Per Share Calculation | Metric | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Profit Attributable to Equity Holders of the Company (RMB thousand) | 146,992 | 170,499 | | Weighted Average Number of Ordinary Shares in Issue (shares) | 1,220,348,000 | 1,220,348,000 | | Basic Earnings Per Share (RMB cents) | 12.05 | 13.97 | - The Group had no outstanding potential dilutive shares during the reporting period[31] Right-of-use Assets and Other Property, Plant and Equipment During the period, the Group recognized an increase in right-of-use assets of RMB 2,082 thousand for office and dormitory leases, and acquired parking right-of-use assets for RMB 90,930 thousand - For the six months ended June 30, 2025, the Group recognized an increase in right-of-use assets of RMB 2,082 thousand due to office space and dormitory leases[32] - The Group acquired parking right-of-use assets from Excellence Group for RMB 90,930 thousand[32] - The Group acquired property, plant and equipment at a cost of RMB 4,294 thousand, and disposed of items with a net book value of RMB 535 thousand, resulting in a disposal loss of RMB 21 thousand[33] Trade and Other Receivables As of June 30, 2025, total trade and other receivables amounted to RMB 2,428,282 thousand, with net trade receivables of RMB 1,716,578 thousand and net other receivables of RMB 567,444 thousand Trade and Other Receivables Details | Category | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Trade Receivables (Net) | 1,716,578 | 1,465,550 | | Other Receivables (Net) | 567,444 | 197,909 | | Deposits and Prepayments | 144,260 | 145,116 | | Total | 2,428,282 | 1,808,575 | - As of June 30, 2025, other receivables from related parties primarily include an outstanding loan of RMB 300,000 thousand (annual interest rate of 5%) to be settled in November 2025, and dividends receivable from disposed subsidiaries of RMB 27,059 thousand[34] Ageing Analysis of Trade Receivables (Net) | Ageing | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Within 1 year | 1,380,463 | 1,155,913 | | 1 to 2 years | 286,914 | 278,443 | | 2 to 3 years | 49,201 | 31,194 | | Total | 1,716,578 | 1,465,550 | Loans Receivable As of June 30, 2025, the Group's loans receivable were zero, a significant decrease from RMB 629,449 thousand at December 31, 2024, primarily due to the divestment of financial services business Loans Receivable Details | Category | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Gross Loans Receivable | – | 654,999 | | Less: Loss Allowance | – | (25,550) | | Net Amount | – | 629,449 | - All loans receivable were disposed of with the sale of a subsidiary[36] Trade and Other Payables As of June 30, 2025, total trade and other payables increased by RMB 99,140 thousand to RMB 1,043,494 thousand, mainly due to dividends payable to equity holders and cash collected on behalf of others Trade and Other Payables Details | Category | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Trade Payables | 463,769 | 414,587 | | Other Payables | 70,699 | 64,443 | | Consideration Payable for Business Combinations | 15,437 | 15,437 | | Dividends Payable to Equity Holders of the Company | 69,952 | – | | Dividends Payable to Non-controlling Interests | 6,205 | 6,205 | | Cash Collected on Behalf of Owners' Committees | 25,738 | 24,572 | | Housing Maintenance Funds Held on Behalf of Property Owners | 24,882 | 21,023 | | Financial Liabilities Measured at Amortized Cost | 676,682 | 546,267 | | Accrued Salaries and Other Benefits | 200,922 | 233,197 | | Deposits | 133,738 | 129,877 | | Accrued Expenses | 32,152 | 35,013 | | Total | 1,043,494 | 944,354 | - Trade payables primarily relate to subcontracting services and facility/car park lease payments[38] Ageing Analysis of Trade Payables | Ageing | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Within 1 month | 139,448 | 136,439 | | 1 to 3 months | 165,607 | 141,990 | | 3 to 6 months | 58,996 | 37,466 | | 6 to 12 months | 42,453 | 25,223 | | Over 12 months | 57,265 | 73,469 | | Total | 463,769 | 414,587 | Capital and Dividends As of June 30, 2025, the company's issued and fully paid share capital comprised 1,220,348,000 ordinary shares at HK$0.01 each, totaling RMB 10,478,929 thousand, with no interim dividend recommended Share Capital Information | Metric | June 30, 2025 (HKD) | December 31, 2024 (HKD) | | :--- | :--- | :--- | | Issued Ordinary Shares (shares) | 1,220,348,000 | 1,220,348,000 | | Par Value Per Share | HK$0.01 | HK$0.01 | | Share Capital (RMB) | 10,478,929 | 10,478,929 | - The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2025, prioritizing working capital investment for long-term stable operations and continuous enhancement of shareholder value[42][118] Dividend Distribution | Dividend Type | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Interim Dividend Declared After Interim Period | – | 85,302 | | Final Dividend for Previous Financial Year Approved During Period | 70,744 | 75,569 | Management Discussion and Analysis Business Review The Group, a leading commercial property service operator in China, maintained stable growth, optimized its business structure, and enhanced core competencies during the reporting period Business Overview The Group operates as a leading commercial property service provider in China, offering full lifecycle asset maintenance and comprehensive service solutions - The Group, as a leading commercial property service operator in China, is committed to providing full lifecycle asset maintenance and comprehensive service solutions[43] - Facing economic downturn pressure, the Group adheres to a long-term development strategy, operating steadily, optimizing business structure, reducing reliance on related businesses, and firmly pursuing digital transformation[44] - Principal businesses include basic property management services (commercial, public & industrial, residential properties) and value-added services[45] - Commercial property management services focus on CBD landmark office buildings and high-tech enterprises, providing PM commercial office building services and FM integrated facility management services, utilizing IoT, big data, and AI to build smart park systems[46][47] - Public and industrial property services continue to expand into university, medical, and government public construction businesses, offering comprehensive operational service solutions[48] - Residential property services leverage Excellence Group's experience to create a high-end residential service benchmark, innovatively introducing international service standards[49] - Value-added services include asset services (pre-consulting, leasing, and second-hand asset management), Zhuopin Business general administrative services (B to B for C model, one-stop supporting services), and M&E services (green & smart M&E business)[50][51] - The Group maintains a cautious approach to mergers and acquisitions, actively seeking government resources to jointly explore markets and improve the industry chain[52] Performance Summary In H1 2025, the company achieved stable operating performance, with steady growth in third-party business, sustained advantages in commercial property, and optimized value-added service structure Revenue Contribution by Business Type | Business Type | Revenue Share (%) | | :--- | :--- | | Commercial Property | 61.1% | | Public and Industrial Property | 10.0% | | Residential Property | 18.3% | | Value-added Services | 9.7% | | Other Services | 0.9% | - During the reporting period, the Group's contracted area was approximately 82.50 million sq.m., a 3.0% increase year-on-year; GFA under management was approximately 74.28 million sq.m., a 9.0% increase year-on-year, with third-party GFA under management accounting for 62.7%[56] Changes in GFA Under Management (thousand sq.m.) | Metric | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Beginning of Period | 72,200 | 64,066 | | Newly Signed | 4,524 | 6,784 | | Terminated | (2,440) | (2,730) | | End of Period | 74,284 | 68,120 | - The Group maintains its core competitive advantage in commercial property, with continuous efforts in third-party business expansion, serving over 70% of domestic leading high-tech internet enterprise clients[57] - During the reporting period, commercial property revenue accounted for 68.3% of basic property services revenue, and third-party basic property services accounted for 60.6% of basic property services revenue; residential property business revenue increased by 12.6% year-on-year[58][59] GFA Under Management and Revenue Comparison by Business Type | Business Type | H1 2025 GFA Under Management (thousand sq.m.) | H1 2025 Revenue (RMB thousand) | H1 2024 GFA Under Management (thousand sq.m.) | H1 2024 Revenue (RMB thousand) | | :--- | :--- | :--- | :--- | :--- | | Commercial Property | 32,195 | 1,229,380 | 27,335 | 1,110,517 | | Public and Industrial Property | 14,290 | 201,016 | 14,737 | 275,294 | | Residential Property | 27,799 | 369,386 | 26,048 | 328,165 | | Total | 74,284 | 1,799,782 | 68,120 | 1,713,796 | - Strategic client contract retention rate is close to 100.0%, with strategic client revenue reaching RMB 507.7 million, a 30.2% increase year-on-year[61][62] - The Group continues to expand its advantages in new sectors through strategic M&A and diversified joint ventures, with new business scale in Chengdu, a core western city, doubling year-on-year[62][63] - Value-added services achieved diversified rapid growth, with the high-end commercial brand "Zhuopin Business" providing B+C full-scenario solutions and customized services through a unified platform[64] Core Competitiveness Analysis The Group has received numerous industry accolades and ratings, demonstrating its strong market position and commitment to quality management and talent development - The Group has been awarded "2025 China Property Service Top 100 Enterprises (TOP11)", "2025 China IFM Service Excellent Enterprises (TOP2)", "2025 China Office Property Management Excellent Enterprises (TOP2)", and other industry honors and ratings[65] - The Group has obtained multiple management system certifications, including ISO9001, ISO14001, ISO45001, ISO50001, ISO41001, and is a BOMA Platinum Member, IFMA Gold Member, and RICS Member[66] - The Group has established a comprehensive talent management system, covering training for over 2,800 key position talents through programs like "New Wing Management Trainee", "Zhuojiang", and "Zhuoyue Plan"[67][68] - The Group is firmly advancing digital transformation, having largely completed Phase 1.0, with internal core business systems mostly deployed, facilitating integration of finance and operations, refined management, and improved human efficiency[70][71] Financial Review During the reporting period, the Group's total revenue decreased by 3.2% to RMB 2,015.15 million, gross profit decreased by 10.2% to RMB 379.06 million, and net profit decreased by 11.7% to RMB 162.31 million, primarily due to reduced value-added services Revenue Revenue Composition and Changes | Revenue Source | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | Change (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Property Management Services | 1,799,782 | 1,713,976 | 85,806 | 5.0% | | Value-added Services | 196,401 | 349,147 | (152,746) | (43.7%) | | Other Businesses | 18,962 | 19,355 | (393) | (2.0%) | | Total Revenue | 2,015,145 | 2,082,478 | (67,333) | (3.2%) | Value-added Services Value-added Services Revenue and Proportion | Metric | H1 2025 (RMB million) | H1 2024 (RMB million) | Decrease (%) | | :--- | :--- | :--- | :--- | | Value-added Services Revenue | 196.40 | 349.15 | (43.7%) | | Proportion of Total Revenue | 9.7% | 16.8% | -7.1 percentage points | - The decrease in value-added services revenue was primarily due to the reduction in M&E installation business and fewer leasing operation services provided[81] Other Businesses - Other business revenue primarily derived from the disposed financial services business[82] Other Businesses Revenue | Metric | H1 2025 (RMB million) | H1 2024 (RMB million) | | :--- | :--- | :--- | | Other Businesses Revenue | 18.96 | 19.36 | Cost of Sales Cost of Sales and Changes | Metric | H1 2025 (RMB million) | H1 2024 (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | | Cost of Sales | 1,636.08 | 1,660.31 | (1.5%) | - The decrease in cost of sales was primarily due to the reduction in M&E installation business and fewer leasing operation services provided[83] Gross Profit and Gross Profit Margin Gross Profit and Gross Profit Margin Changes | Metric | H1 2025 (RMB million) | H1 2024 (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | | Gross Profit | 379.06 | 422.17 | (10.2%) | | Gross Profit Margin | 18.8% | 20.3% | -1.5 percentage points | Gross Profit Margin Comparison by Business Segment | Business Segment | H1 2025 Gross Profit Margin (%) | H1 2024 Gross Profit Margin (%) | Change (percentage points) | | :--- | :--- | :--- | :--- | | Basic Property Management Services | 17.5% | 18.5% | (1.0) | | Value-added Services | 23.2% | 24.9% | (1.7) | | Other Businesses | 98.4% | 91.6% | 6.8 | Other Income Other Income and Changes | Metric | H1 2025 (RMB million) | H1 2024 (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | | Other Income | 5.31 | 7.83 | (32.2%) | - The decrease in other income was primarily due to lower bank interest income and government grants[86] Net Other Income Net Other Income and Loss on Disposal | Metric | H1 2025 (RMB million) | H1 2024 (RMB million) | | :--- | :--- | :--- | | Net Other Income | 2.37 | 1.30 | | Loss on Disposal of Discontinued Operations | (2.15) | – | Impairment Losses on Receivables, Contract Assets and Financial Guarantees Issued Impairment Losses and Changes | Metric | H1 2025 (RMB million) | H1 2024 (RMB million) | Change (RMB million) | | :--- | :--- | :--- | :--- | | Impairment Losses | 39.31 | 61.98 | (22.67) | - The decrease in impairment losses was primarily due to reduced credit impairment losses on loans receivable and financial guarantees issued[88] Selling and Marketing Expenses Selling and Marketing Expenses and Changes | Metric | H1 2025 (RMB million) | H1 2024 (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | | Selling and Marketing Expenses | 24.22 | 22.71 | 6.7% | Administrative Expenses Administrative Expenses and Changes | Metric | H1 2025 (RMB million) | H1 2024 (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | | Administrative Expenses | 104.88 | 126.48 | (17.1%) | - The decrease in administrative expenses was primarily due to lower staff costs and rental expenses[90] Finance Costs Finance Costs and Changes | Metric | H1 2025 (RMB million) | H1 2024 (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | | Finance Costs | 0.23 | 0.98 | (76.5%) | - The decrease in finance costs was primarily due to a reduction in bank loans and lease projects[91] Share of Profits Less Losses of Joint Ventures Share of Profits of Joint Ventures | Metric | H1 2025 (RMB million) | H1 2024 (RMB million) | | :--- | :--- | :--- | | Share of Profits of Joint Ventures | 1.59 | 1.18 | Share of Profits Less Losses of Associates Share of Profits of Associates and Changes | Metric | H1 2025 (RMB million) | H1 2024 (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | | Share of Profits of Associates | 2.10 | 4.87 | (56.9%) | - The decrease in share of profits of associates was primarily due to the disposal of Chongqing Pinpin Chuqi Business Information Consulting Co., Ltd. in 2024[93] Income Tax Expense Income Tax Expense and Changes | Metric | H1 2025 (RMB million) | H1 2024 (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | | Income Tax Expense | 54.83 | 41.40 | 32.4% | - The increase in income tax expense was primarily due to the recognition of deferred income tax assets from estimated unused tax losses that could be utilized based on future business plans in 2024[94] Profit for the Period Net Profit and Profit Attributable to Shareholders | Metric | H1 2025 (RMB million) | H1 2024 (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | | Net Profit | 162.31 | 183.80 | (11.7%) | | Profit Attributable to Equity Holders of the Company | 146.99 | 170.50 | (13.8%) | | Net Profit Margin | 8.1% | 8.8% | -0.7 percentage points | Property, Plant and Equipment Net Property, Plant and Equipment | Metric | June 30, 2025 (RMB million) | December 31, 2024 (RMB million) | Change (RMB million) | | :--- | :--- | :--- | :--- | | Net Property, Plant and Equipment | 41.33 | 52.94 | (11.61) | - The decrease was primarily due to depreciation and disposal of assets maturing during the reporting period[97] Intangible Assets Intangible Assets and Changes | Metric | June 30, 2025 (RMB million) | December 31, 2024 (RMB million) | Change (RMB million) | | :--- | :--- | :--- | :--- | | Intangible Assets | 268.77 | 287.86 | (19.09) | - The decrease was primarily due to amortization recognized during the period for property management contracts acquired through company acquisitions[98] Goodwill Goodwill Amount | Metric | June 30, 2025 (RMB million) | | :--- | :--- | | Goodwill | 225.29 | - Goodwill primarily relates to the acquisition of certain equity interests in Wuhan Huamao, Henan Huangjin, Beijing Huanqiu, and Xingyi Investment, with management finding no significant impairment risk[99] Inventories Inventories and Changes | Metric | June 30, 2025 (RMB million) | December 31, 2024 (RMB million) | Change (RMB million) | | :--- | :--- | :--- | :--- | | Inventories | 416.99 | 295.34 | 121.65 | - The increase in inventories was primarily due to the addition of commercial apartments of RMB 103.33 million (including related tax expenses) from the disposal of the financial services business[100] Right-of-use Assets Right-of-use Assets and Changes | Metric | June 30, 2025 (RMB million) | December 31, 2024 (RMB million) | Change (RMB million) | | :--- | :--- | :--- | :--- | | Right-of-use Assets | 670.82 | 589.31 | 81.51 | - The increase was primarily due to the addition of RMB 90.93 million in parking spaces during the reporting period[101] Trade and Other Receivables Net Trade and Other Receivables and Changes | Metric | June 30, 2025 (RMB million) | December 31, 2024 (RMB million) | Change (RMB million) | | :--- | :--- | :--- | :--- | | Net Trade and Other Receivables | 2,428.28 | 1,808.58 | 619.70 | - The increase was primarily due to an increase in net trade receivables of approximately RMB 251.03 million from revenue growth, and an increase in net other receivables of approximately RMB 369.54 million due to the disposal of the financial services business[102] Loans Receivable Loans Receivable and Changes | Metric | June 30, 2025 (RMB million) | December 31, 2024 (RMB million) | Change (RMB million) | | :--- | :--- | :--- | :--- | | Loans Receivable | 0 | 629.45 | (629.45) | - The decrease was primarily due to the Group's divestment of the financial services segment during the reporting period[103] Trade and Other Payables Trade and Other Payables and Changes | Metric | June 30, 2025 (RMB million) | December 31, 2024 (RMB million) | Change (RMB million) | | :--- | :--- | :--- | :--- | | Trade and Other Payables | 1,043.49 | 944.35 | 99.14 | - The increase was primarily due to dividends payable to equity holders of the company of RMB 69.95 million (paid in July 2025), and cash collected by the Group on behalf of owners' committees, housing maintenance funds, and other miscellaneous expenses[104] Financial Guarantees Issued Financial Guarantees Issued | Metric | June 30, 2025 (RMB million) | December 31, 2024 (RMB million) | | :--- | :--- | :--- | | Financial Guarantees Issued | 72.43 | 72.43 | - The primary reason is that Beijing Huanqiu, a non-wholly owned subsidiary of the company, has provided a financial guarantee for a seller's loan principal of RMB 183.43 million[105] - An expected credit loss provision of approximately RMB 72.43 million has been made for the guarantee provided by Beijing Huanqiu, considering the liquidation value of the mortgaged property[106] Lease Liabilities Lease Liabilities Composition | Category | Amount (RMB million) | | :--- | :--- | | Current Lease Liabilities | 6.89 | | Non-current Lease Liabilities | 3.67 | Contract Liabilities Contract Liabilities and Changes | Metric | June 30, 2025 (RMB million) | December 31, 2024 (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | | Contract Liabilities | 168.83 | 145.76 | 15.8% | - Contract liabilities primarily represent prepayments made by the Group's commercial operation services and residential property management services customers[108] Gearing Ratio Gearing Ratio | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Gearing Ratio | 27.3% | 26.1% | Contingent Liabilities - Shenzhen Excellence Property Management Co., Ltd. is involved in an arbitration dispute regarding the acquisition of a 40% equity interest in a project company, with the applicant claiming RMB 20.8 million in liquidated damages and equity acquisition consideration[110][112] - As the arbitration outcome cannot be reliably estimated, no provision has been recognized for the arbitration as of the date of this announcement[111] Liquidity, Reserves and Capital Structure Changes in Cash and Total Equity | Metric | June 30, 2025 (RMB million) | December 31, 2024 (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | | Cash and Cash Equivalents | 689.34 | 935.43 | (26.3%) | | Total Equity | 3,887.81 | 3,797.51 | 2.4% | - The decrease in cash and cash equivalents was primarily due to the purchase of investment wealth management products and right-of-use assets[113] - The increase in total equity was primarily due to profit contributions realized during the year[113] Exchange Rate Risk - The Group's principal operations are conducted in China and denominated in RMB, thus management believes there is no significant foreign exchange risk[114] - No forward foreign exchange contracts have been entered into to hedge foreign exchange risk, and the Group will continue to monitor it prudently[114] Future Outlook The Group will continue to pursue its vision as a leading commercial property service operator in China, focusing on growth, strategic client development, diversified value-added services, and digital transformation for long-term stable development - The Group will continue to focus on its vision of being "China's leading commercial property service operator" and adhere to the strategic direction of "combining strategic three pillars with digital transformation"[72] - The strategic plan is based on "organizational building, business building, and capability building", driven by "value distribution and management culture"[72] - Business development strategies include focusing on growth (deepening strategic client relationships, diversifying value-added services, breaking through new sector performance) and building core capabilities (digital empowerment management capabilities)[73][74][75][76] - Digital capability building is a key focus for the company's core capability development, aiming to enhance management and operational efficiency by integrating internal systems, optimizing business processes, and building a full-process digital platform for projects[76][77] Other Information Material Investments Held, Material Acquisitions and Disposals of Subsidiaries, Associates and Joint Ventures During the reporting period, the Group divested its financial services business, and other than this, held no material investments nor undertook any significant acquisitions or disposals - During the reporting period, the Group divested its financial services business[115] - Other than the disclosed matters, the company held no material investments and undertook no material acquisitions or disposals of subsidiaries, associates, or joint ventures[115] Employees and Remuneration Policies As of June 30, 2025, the Group employed 18,991 full-time employees in China and 88 in India, offering competitive remuneration packages and social insurance contributions Full-time Employee Count | Region | June 30, 2025 (Full-time Employees) | December 31, 2024 (Full-time Employees) | | :--- | :--- | :--- | | China | 18,991 | 17,787 | | India | 88 | 86 | - The Group provides competitive remuneration packages, including directors' fees, salaries, allowances, bonuses, and contributions to retirement benefit schemes, and pays various social insurance contributions for employees[116] Purchase, Redemption or Sale of the Company's Listed Securities During the reporting period, neither the company nor its subsidiaries purchased, sold, or redeemed any of the company's listed securities, including treasury shares - During the reporting period, neither the company nor its subsidiaries purchased, sold, or redeemed any of the company's listed securities[117] Interim Dividend The Board does not recommend an interim dividend for the six months ended June 30, 2025, prioritizing working capital for long-term stability and shareholder value enhancement - The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2025[118] - The decision prioritizes working capital investment to maintain long-term stable operations and continuous enhancement of shareholder value[118] Sufficiency of Public Float The company has maintained a sufficient public float as approved by the Stock Exchange and permitted by the Listing Rules since its listing date - The company has maintained a sufficient public float as approved by the Stock Exchange and permitted by the Listing Rules since its listing date up to the date of this announcement[119] Corporate Governance Practices The Group is committed to high standards of corporate governance, having adopted and complied with the Corporate Governance Code throughout the reporting period - The Group has adopted the Corporate Governance Code set out in Appendix C1 to the Listing Rules and has complied with all applicable code provisions throughout the reporting period[120] Standard Code for Securities Transactions by Directors of Listed Issuers The company has adopted the Standard Code for securities transactions by directors, and all directors have confirmed compliance throughout the reporting period - The company has adopted the Standard Code set out in Appendix C3 to the Listing Rules as the code of conduct for directors' securities transactions[121] - All directors have confirmed, after due enquiry, that they have complied with the required standards set out in the Standard Code throughout the reporting period[121] Audit Committee The Board has established an Audit Committee, comprising one non-executive director and three independent non-executive directors, chaired by Mr. Gan Zhicheng, to review financial reporting and internal controls - The Audit Committee comprises four members, including one non-executive director and three independent non-executive directors, with Mr. Gan Zhicheng serving as the committee chairman[122] - The committee's primary responsibilities are to review and supervise the company's financial reporting system, risk management, and internal controls[122] - The Audit Committee has reviewed and approved the accounting principles and practices adopted by the Group, and has reviewed the unaudited consolidated interim results for the reporting period[122] Review of Interim Results The interim financial information is unaudited but has been reviewed by KPMG in accordance with Hong Kong Standard on Review Engagements 2410 - The interim financial information is unaudited but has been reviewed by KPMG in accordance with Hong Kong Standard on Review Engagements 2410 issued by the Hong Kong Institute of Certified Public Accountants[123] Events After Reporting Period Subsequent to the reporting period, Shenzhen Excellence Property Management Co., Ltd. entered into a settlement agreement with Excellence Real Estate Group Co., Ltd., and a final judgment was rendered in a loan dispute involving Beijing Huanqiu Wealth Property Management Co., Ltd. - On August 24, 2025, Shenzhen Excellence Property Management Co., Ltd. entered into a settlement agreement with Excellence Real Estate Group Co., Ltd.[124] - In August 2025, the Beijing High People's Court rendered a final judgment in the loan dispute between China Great Wall Asset Management Co., Ltd. Beijing Branch and defendants including Beijing Huanqiu Wealth Property Management Co., Ltd.[124] Publication of Interim Results Announcement and Interim Report This interim results announcement has been published on the HKEXnews website and the company's website, and the interim report will be dispatched to shareholders and published online in due course - This interim results announcement has been published on the HKEXnews website (www.hkexnews.hk) and the company's website (www.excepm.com)[126](index=126&type=chunk) - The interim report will be dispatched to shareholders who request a printed copy and will be published on the respective websites of the Stock Exchange and the company in due course[126]