德信服务集团(02215) - 2025 - 中期业绩

Financial Summary Key Financial and Operational Highlights Dexin Services Group Co., Ltd. faced challenges in the first half of 2025, with declines in revenue, profit, and gross margin, alongside decreases in GFA under management and contracted GFA, and no interim dividend recommended Key Financial and Operational Data for H1 2025 | Indicator | H1 2025 (RMB million) | H1 2024 (RMB million) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 443.0 | 473.2 | -6.4% | | Gross Profit | 94.4 | 101.5 | -7.0% | | Gross Margin | 21.3% | 21.5% | -0.2% | | Profit | 34.6 | 42.5 | -18.6% | | Basic EPS | RMB 0.039 | RMB 0.045 | -13.3% | | GFA Under Management (million sq.m.) | 38.3 | 39.6 | -3.2% | | Contracted GFA (million sq.m.) | 41.4 | 44.8 | -7.7% | | Interim Dividend | None | None | - | Condensed Consolidated Financial Statements Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income The Group experienced declines in both revenue and profit in H1 2025, primarily due to increased cost of sales, net other losses, and a significant reduction in finance income, resulting in an 18.6% year-on-year decrease in profit for the period Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (For the six months ended June 30) | Indicator | 2025 (RMB thousand) | 2024 (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 442,992 | 473,228 | -6.4% | | Cost of sales | (348,579) | (371,697) | -6.2% | | Gross profit | 94,413 | 101,531 | -7.0% | | Other income | 818 | 1,354 | -39.6% | | Net other (losses) / gains | (1,190) | 667 | -278.4% | | Selling and marketing expenses | (2,158) | (5,908) | -63.5% | | Administrative expenses | (31,698) | (39,748) | -20.2% | | Impairment loss on trade and other receivables | (13,239) | (10,964) | 20.8% | | Operating profit | 47,122 | 46,783 | 0.7% | | Net finance income | 401 | 9,056 | -95.6% | | Profit before tax | 47,523 | 55,839 | -14.9% | | Income tax expense | (12,879) | (13,355) | -3.6% | | Profit and total comprehensive income for the period | 34,644 | 42,484 | -18.6% | | Profit attributable to owners of the Company | 34,138 | 42,169 | -19.0% | | Basic earnings per share (RMB) | 0.039 | 0.045 | -13.3% | Condensed Consolidated Statement of Financial Position As of June 30, 2025, the Group's total assets slightly decreased, and net current assets declined, but total assets less current liabilities and net assets both increased, indicating financial stability Condensed Consolidated Statement of Financial Position (As of June 30) | Indicator | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Non-current assets | 177,335 | 39,747 | 346.1% | | Current assets | 1,210,915 | 1,301,360 | -7.0% | | Current liabilities | 653,348 | 640,874 | 2.0% | | Net current assets | 557,567 | 660,486 | -15.6% | | Total assets less current liabilities | 734,902 | 700,233 | 4.9% | | Non-current liabilities | 10,135 | 10,000 | 1.3% | | Net assets | 724,767 | 690,233 | 5.0% | | Total equity | 724,767 | 690,233 | 5.0% | Notes to the Condensed Consolidated Financial Statements General Information and Accounting Policies Dexin Services Group Co., Ltd. was incorporated in the Cayman Islands in 2020, listed on the HKEX in 2021, and primarily provides property management and value-added services in China; this period's financial statements adopt 2024 accounting policies and new HKFRS effective January 1, 2025, without significant changes - The Company was incorporated in the Cayman Islands on October 22, 2020, and listed on the Main Board of the Hong Kong Stock Exchange on July 15, 2021[9] - The Group is primarily engaged in providing property management services, non-owner value-added services, and community value-added services in China[9] - The adoption of new and revised Hong Kong Financial Reporting Standards in the current period did not result in significant changes to accounting policies, financial statement presentation, or reported amounts[11] Revenue Breakdown The Group's total revenue for H1 2025 was RMB 443.0 million, a 6.4% year-on-year decrease, with property management services remaining the primary source, but non-owner and community value-added services revenue significantly declined Revenue by Service Type (For the six months ended June 30) | Service Type | 2025 (RMB thousand) | 2024 (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Property management services | 408,417 | 413,438 | -1.2% | | Non-owner value-added services | 13,813 | 19,835 | -30.4% | | Community value-added services | 20,762 | 39,955 | -48.0% | | Total | 442,992 | 473,228 | -6.4% | Revenue by Timing of Recognition (For the six months ended June 30) | Timing of Recognition | 2025 (RMB thousand) | 2024 (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Over time | 438,676 | 452,535 | -3.0% | | At a point in time | 4,316 | 20,693 | -79.1% | | Total | 442,992 | 473,228 | -6.4% | - All of the Group's revenue is derived from China[14] Segment Information Management reviews the Group's business operations as a single operating segment, with all revenue and non-current assets located in China - The Group is primarily engaged in providing property management services, community value-added services, and non-owner value-added services, which management reviews as a single operating segment[16] - All of the Group's revenue and non-current assets are located in China[16][17] Other Income and Expenses The Group's other income, primarily from government grants, decreased in H1 2025, while net other losses significantly increased due to losses from derecognizing subsidiaries and associates Other Income (For the six months ended June 30) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Government grants | 721 | 1,141 | -36.9% | | VAT deductions | 97 | 213 | -54.4% | | Total | 818 | 1,354 | -39.6% | Net Other (Losses) / Gains (For the six months ended June 30) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Exchange losses | (33) | (894) | -96.3% | | Loss on derecognition of a subsidiary | (651) | — | - | | Loss on derecognition of an associate | (524) | — | - | | Others | 18 | 1,561 | -98.8% | | Total | (1,190) | 667 | -278.4% | Net Finance Income The Group's net finance income significantly decreased by 95.6% in H1 2025, primarily due to a sharp reduction in interest income from loans Net Finance Income (For the six months ended June 30) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Interest income from bank deposits | 119 | 251 | -52.6% | | Interest income from loans | 711 | 9,378 | -92.4% | | Interest expense on borrowings | (419) | (473) | -11.4% | | Interest expense on lease liabilities | (10) | (100) | -90.0% | | Net finance income | 401 | 9,056 | -95.6% | Income Tax Expense The Group's income tax expense slightly decreased in H1 2025, mainly due to deferred tax, with the Company exempt in Cayman Islands and BVI, while mainland China operations are taxed at applicable rates, and some high-tech enterprises enjoy a 15% preferential rate Income Tax Expense (For the six months ended June 30) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Current tax | 16,189 | 16,096 | 0.6% | | Deferred tax | (3,310) | (2,741) | 20.7% | | Total | 12,879 | 13,355 | -3.6% | - The Company is exempt from income tax in the Cayman Islands and British Virgin Islands, and its Hong Kong operations have no assessable profits[21][22] - The general corporate income tax rate in mainland China is 25%, while high-tech enterprises, such as Hangzhou Xier Technology Co., Ltd., enjoy a 15% preferential tax rate[23] Profit and Total Comprehensive Income for the Period The Group's profit for the period is accounted for after deducting various expenses, including significant changes in directors' remuneration and depreciation of property, plant, and equipment Profit Deductions for the Period (For the six months ended June 30) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Directors' remuneration | 1,113 | 1,797 | -38.1% | | Depreciation of property, plant and equipment and right-of-use assets | 2,027 | 5,394 | -62.5% | | Depreciation of investment properties | 3,476 | — | - | | Amortisation of intangible assets | 327 | 291 | 12.4% | | Loss on disposal of property, plant and equipment / write-off of property, plant and equipment | 383 | 60 | 538.3% | Dividends and Earnings Per Share The Board does not recommend an interim dividend for H1 2025, and basic earnings per share were RMB 0.039, a 13.3% year-on-year decrease - The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2025 (2024 interim: none)[25] Earnings Per Share (For the six months ended June 30) | Indicator | 2025 | 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Profit for the period attributable to owners of the Company (RMB thousand) | 34,138 | 42,169 | -19.0% | | Weighted average number of ordinary shares in issue (thousand shares) | 882,554 | 930,360 | -5.1% | | Basic earnings per share (RMB) | 0.039 | 0.045 | -13.3% | - Diluted loss per share is not presented as the Company has no outstanding potential ordinary shares[26] Trade and Other Receivables and Prepayments As of June 30, 2025, total trade and other receivables and prepayments were RMB 916.2 million, a 15% decrease from year-end 2024, with increased impairment provisions for trade receivables and loans reflecting credit risk from the real estate downturn Trade and Other Receivables and Prepayments (As of June 30) | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Trade receivables (net of impairment) | 506,357 | 430,135 | 17.7% | | Other receivables (net of impairment) | 360,464 | 349,574 | 3.1% | | Prepayments | 43,999 | 50,918 | -13.6% | | Loans receivable (net of impairment) | 5,388 | 246,818 | -97.8% | | Total | 916,208 | 1,077,445 | -15.0% | Ageing Analysis of Trade Receivables (As of June 30) | Ageing | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | | 0 to 180 days | 230,020 | 223,164 | 3.1% | | 181 to 365 days | 173,042 | 61,410 | 181.8% | | 1 to 2 years | 77,631 | 120,911 | -35.8% | | 2 to 3 years | 48,726 | 78,685 | -38.0% | | 3 to 4 years | 51,875 | 14,025 | 269.9% | | Over 4 years | 18,142 | 8,081 | 124.5% | | Total | 599,436 | 506,276 | 18.4% | - Due to the borrower's failure to repay loans, the Company realized RMB 139.05 million from mortgaged parking spaces and acquired properties to offset the remaining RMB 99.04 million in loans[29] Trade and Other Payables As of June 30, 2025, the Group's total trade and other payables were RMB 417.3 million, a slight increase of 2.0% from year-end 2024 Trade and Other Payables (As of June 30) | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Trade payables | 192,992 | 195,442 | -1.2% | | Other payables | 224,343 | 213,795 | 4.9% | | Total | 417,335 | 409,237 | 2.0% | Ageing Analysis of Trade Payables (As of June 30) | Ageing | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Within 1 year | 177,727 | 185,353 | -4.1% | | 1 to 2 years | 10,471 | 4,378 | 139.2% | | 2 to 3 years | 350 | 3,504 | -90.0% | | Over 3 years | 4,444 | 2,207 | 101.4% | | Total | 192,992 | 195,442 | -1.2% | Share Capital and Repurchases As of June 30, 2025, the Company's issued and fully paid share capital comprised 917,881,000 shares with a par value of RMB 7,564 thousand; during the period, the Company repurchased 270,000 shares for a total consideration of HKD 205,200 Issued and Fully Paid Share Capital (As of June 30) | Date | Number of Ordinary Shares (shares) | Par Value of Ordinary Shares (HKD) | Equivalent Amount (RMB thousand) | | :--- | :--- | :--- | :--- | | January 1, 2024 | 937,308,000 | 9,373,080 | 7,738 | | Shares repurchased and cancelled | (19,427,000) | (194,270) | (174) | | December 31, 2024 and January 1, 2025 | 917,881,000 | 9,178,810 | 7,564 | | June 30, 2025 | 917,881,000 | 9,178,810 | 7,564 | - For the period ended June 30, 2025, the Group repurchased a total of 270,000 ordinary shares listed on the Stock Exchange for a total consideration of approximately RMB 210,000[34] Events After Reporting Period Subsequent to the reporting period, the Group, through its wholly-owned subsidiary, entered into an agreement to acquire 100% equity in Deqing Moganshan Ruijing Real Estate Co., Ltd., primarily engaged in hotel operations and management, for RMB 78 million - On July 31, 2025, a subsidiary of the Group agreed to acquire 95% and 5% equity in Deqing Moganshan Ruijing Real Estate Co., Ltd. for RMB 78 million[33] - Deqing Moganshan is primarily engaged in hotel operations and management, as well as providing catering services[33] - As of the date of this announcement, the transaction has not yet been completed[33] Chairman's Report Industry Landscape and Company Performance In H1 2025, as the property industry entered a new phase of "quality and efficiency restructuring," Dexin Services Group advanced against the trend, ranking 19th among "China's Top 100 Property Service Enterprises" for the 12th consecutive year, demonstrating resilience and vitality with multiple accolades - The property management industry is rapidly entering a new phase of "quality and efficiency restructuring," with cooling M&A activity and a surge in project exits and residential fee reductions[35] - Dexin Services has been recognized by China Index Academy as one of "China's Top 100 Property Service Enterprises" for 12 consecutive years, with its ranking rising to 19th[35] - The Group also received honors such as "Top 100 Comprehensive Strength Chinese Property Enterprises" and "Top 30 East China Property Enterprises"[35] Strategic Expansion and Diversification The Group focuses on deep cultivation in regional markets, expands high-quality second-hand residential projects, continuously diversifies into non-residential sectors, successfully bid for public construction projects like Hangzhou Xiaoshan Youth Palace, and deepens joint ventures with state-owned enterprises - The Group insists on expanding quality second-hand residential projects, forming a virtuous expansion model of "management benchmark demonstration—local reputation building—stock market competition"[36] - In the first half of the year, the Group successfully bid for key public construction projects such as Hangzhou Xiaoshan Youth Palace and customized intelligent operation and management solutions[36] - The Group deepened cooperation with Quzhou Jiaotou, a state-owned enterprise controlled by Quzhou SASAC in Zhejiang, taking over projects like Quzhou East Bus Station and the Science and Education Industrial Park canteen, expanding into transportation hubs and canteen catering sectors[37] - Professional service brand Shengjie Environment successfully bid for multiple landscaping maintenance projects, including Hangzhou Fuyang Sports Center[37] Service Innovation and Digital Transformation The Group prioritizes service, enhancing satisfaction through customer visits and quality improvement initiatives, enriching residential home services, and launching a high-end commercial property service brand in the non-residential sector; concurrently, it actively promotes green and technological transformation, implements smart service scenarios, and strengthens digitalization for operational management decisions - Adhering to the "Good House, Good Community, Good Life" philosophy, the Group completed 1,929 community upgrade projects through customer home visits and the "Zhi Ji Song Chun Feng" quality improvement initiative[38] - The residential home service system has been enriched to include in-home cleaning, plumbing and electrical repairs, and pet feeding; in the non-residential sector, the high-end commercial property service brand "Shi Pu Lian Hang" has been launched[38] - Promoting green and technological transformation, the Group has implemented smart service scenarios such as cleaning robots, smart delivery robots, and smart inspection systems in commercial office buildings and industrial parks[39] - The Hangzhou Dexin Center rooftop photovoltaic renovation project has been completed, expected to generate 700,000 kWh annually and reduce carbon emissions by 700 tons[39] - Strengthening digitalization, the Group integrated an employee digital portal to enhance agile response to emergencies and achieved data-driven management and full-lifecycle cash flow monitoring through business-finance integration[41] Organizational Development and Future Outlook The Group values employee care and development, fostering a "Zhi Ji" culture through the "Blue Ribbon" fund and star butler certification system, while enhancing efficiency through organizational reform, cost reduction, and risk compliance; looking ahead, the Company will focus on core capabilities, refine products, reasonably reduce costs, and seize opportunities from AI technology - The Group regards employees as valuable resources, caring for frontline service personnel through the "Blue Ribbon" fund and emphasizing employee development rights, encouraging learning through systems like the star butler certification[40] - Organizational reform is being carried out with a focus on "lean headquarters, strong frontline" to streamline hierarchy, enable rapid decision-making, and prioritize cost reduction and efficiency improvement, with pilot project cloud warehouses achieving efficient operation[40] - In the future, the Group will leverage its flexibility as a private enterprise to build core capabilities, refine products, reasonably reduce costs and enhance efficiency, and seize opportunities presented by the AI technology revolution[42] Management Discussion and Analysis Overview and Financial Review Dexin Services, a leading integrated property management service provider in Zhejiang Province, maintained stable operations in H1 2025, but total revenue decreased by 6.4% year-on-year, primarily due to declines in non-owner and community value-added services revenue - Dexin Services was recognized by China Index Academy as a TOP 19 China Property Service Hundred Enterprises in 2025[43] - The Group's main businesses include property management services, non-owner value-added services, and community value-added services[43] Revenue Breakdown by Business Line (For the six months ended June 30) | Business Line | 2025 (RMB thousand) | % of Total | 2024 (RMB thousand) | % of Total | Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | Property management services | 408,417 | 92.2% | 413,438 | 87.4% | -1.2% | | Non-owner value-added services | 13,813 | 3.1% | 19,835 | 4.2% | -30.4% | | Community value-added services | 20,762 | 4.7% | 39,955 | 8.4% | -48.0% | | Total | 442,992 | 100.0% | 473,228 | 100.0% | -6.4% | Property Management Services Property management services revenue decreased by 1.2% year-on-year to RMB 408.4 million, with GFA under management declining by 3.2% to 38.3 million sq.m., primarily due to project structure optimization, and independent third-party developed properties accounting for the largest share of GFA under management - Property management services revenue was approximately RMB 408.4 million, a 1.2% year-on-year decrease[46] - Total GFA under management was approximately 38.3 million sq.m., a 3.2% year-on-year decrease, primarily due to the Company optimizing its project structure to retain high-quality projects[46] Contracted GFA and GFA Under Management (As of June 30) | Indicator | 2025 (thousand sq.m.) | 2024 (thousand sq.m.) | Change (%) | | :--- | :--- | :--- | :--- | | Contracted GFA at period-end | 41,417 | 44,851 | -7.7% | | GFA under management at period-end | 38,291 | 39,563 | -3.2% | Total GFA Under Management and Revenue by Property Type (As of June 30) | Property Type | 2025 GFA (thousand sq.m.) | 2025 Revenue (RMB thousand) | 2024 GFA (thousand sq.m.) | 2024 Revenue (RMB thousand) | | :--- | :--- | :--- | :--- | | Properties developed by Dexin Group | 13,638 | 151,948 | 13,793 | 149,198 | | Jointly developed properties | 4,383 | 60,058 | 4,693 | 61,398 | | Independent third-party properties | 20,270 | 196,411 | 21,077 | 202,842 | | Total | 38,291 | 408,417 | 39,563 | 413,438 | Total GFA Under Management and Revenue by Region (As of June 30) | Region | 2025 GFA (thousand sq.m.) | 2025 Revenue (RMB thousand) | 2024 GFA (thousand sq.m.) | 2024 Revenue (RMB thousand) | | :--- | :--- | :--- | :--- | | Zhejiang Province | 26,170 | 295,602 | 26,064 | 304,742 | | Yangtze River Delta Region (excluding Zhejiang Province) | 7,169 | 69,881 | 8,439 | 67,885 | | Other regions | 4,952 | 42,934 | 5,060 | 40,811 | | Total | 38,291 | 408,417 | 39,563 | 413,438 | Total GFA Under Management and Revenue by Property Type (As of June 30) | Property Type | 2025 GFA (thousand sq.m.) | 2025 Revenue (RMB thousand) | 2024 GFA (thousand sq.m.) | 2024 Revenue (RMB thousand) | | :--- | :--- | :--- | :--- | | Residential properties | 31,139 | 300,403 | 30,405 | 283,945 | | Non-residential properties | 7,152 | 108,014 | 9,158 | 129,493 | | Total | 38,291 | 408,417 | 39,563 | 413,438 | Non-Owner Value-Added Services Non-owner value-added services revenue decreased by 30.4% year-on-year to RMB 13.8 million, primarily due to the ongoing downturn in the real estate industry, leading to a significant reduction in sales venue services revenue - Non-owner value-added services revenue was approximately RMB 13.8 million, a 30.4% year-on-year decrease, primarily due to the continuous downturn in the real estate industry and decreasing service demand from partner property developers[54] Non-Owner Value-Added Services Revenue Breakdown (For the six months ended June 30) | Service Type | 2025 Revenue (RMB thousand) | % of Total | 2024 Revenue (RMB thousand) | % of Total | Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | Sales venue services | 3,720 | 26.9% | 13,147 | 66.3% | -71.7% | | Pre-delivery inspection services | 6,934 | 50.2% | 4,735 | 23.9% | 46.4% | | Property inspection and repair services | 1,121 | 8.1% | 1,623 | 8.1% | -30.9% | | Commercial consulting services | 2,038 | 14.8% | 330 | 1.7% | 517.6% | | Total | 13,813 | 100.0% | 19,835 | 100.0% | -30.4% | Community Value-Added Services Community value-added services revenue sharply decreased by 48.0% year-on-year to RMB 20.8 million, primarily due to significant reductions in smart community solutions, home beautification services, and community retail and home services revenue, reflecting fewer property delivery projects and intensified market competition - Community value-added services revenue was approximately RMB 20.8 million, a 48.0% year-on-year decrease[56] Community Value-Added Services Revenue Breakdown (For the six months ended June 30) | Service Type | 2025 Revenue (RMB thousand) | % of Total | 2024 Revenue (RMB thousand) | % of Total | Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | Smart community solutions | 1,792 | 8.6% | 9,380 | 23.5% | -80.9% | | Property sales and co-sales services | 366 | 1.8% | 507 | 1.3% | -27.8% | | Community resource value-added services | 13,556 | 65.2% | 13,892 | 34.8% | -2.4% | | Club services | 957 | 4.6% | 815 | 2.0% | 17.4% | | Home beautification services | 342 | 1.7% | 1,482 | 3.7% | -76.9% | | Community retail and home services | 3,749 | 18.1% | 13,879 | 34.7% | -73.0% | | Total | 20,762 | 100.0% | 39,955 | 100.0% | -48.0% | - The decline in smart community solutions revenue is primarily due to a significant decrease in property delivery projects, leading to a corresponding drop in demand[57] - The decrease in home beautification services revenue is mainly due to the continuous downturn in the real estate market and a significant reduction in delivered projects[59] - The decline in community retail and home services revenue is primarily attributed to insufficient strategic positioning and resource allocation, decreased business development capabilities, and intense market competition in the retail sector[59] Cost of Sales, Gross Profit and Gross Margin Cost of sales decreased by 6.2% year-on-year to RMB 348.6 million, gross profit declined by 7.0% to RMB 94.4 million, and gross margin slightly decreased by 0.2% to 21.3%; gross margins for non-owner and community value-added services significantly increased, primarily due to personnel restructuring and cost control - Cost of sales was RMB 348.6 million, a 6.2% year-on-year decrease, primarily due to a corresponding decline in costs as business service revenue decreased[60] - Gross profit was RMB 94.4 million, a 7.0% year-on-year decrease; gross margin was 21.3%, a 0.2% year-on-year decrease[61] Gross Margin by Business Segment (For the year ended June 30) | Business Segment | 2025 Gross Margin (%) | 2024 Gross Margin (%) | Change (%) | | :--- | :--- | :--- | :--- | | Property management services | 19.1% | 19.4% | -0.3% | | Non-owner value-added services | 26.4% | 19.2% | 7.2% | | Community value-added services | 62.3% | 44.0% | 18.3% | | Total | 21.3% | 21.5% | -0.2% | - Gross margin for non-owner value-added services increased by 7.2%, and for community value-added services by 18.3%, primarily due to personnel restructuring and reduced labor costs[63] Operating Expenses and Profitability Other income decreased, and net other losses increased; selling and marketing expenses and administrative expenses both significantly declined, but impairment loss on trade and other receivables increased, while net finance income sharply reduced, leading to an 18.6% year-on-year decrease in net profit for the period - Other income decreased by 39.6% to RMB 0.8 million, primarily due to a decline in government grant income[64] - Net other losses were RMB 1.2 million (H1 2024: net gains of RMB 0.7 million), primarily due to losses from derecognizing subsidiaries and associates[65] - Selling and marketing expenses decreased by 63.5% to RMB 2.2 million, mainly due to the scaling down of non-owner value-added services and community value-added services businesses[66] - Administrative expenses decreased by 20.2% to RMB 31.7 million, primarily due to organizational restructuring and optimized staffing[67] - Impairment loss on trade and other receivables increased by 20.8% to RMB 13.2 million, primarily due to increased credit risk from the ongoing downturn in the real estate industry[68] - Net finance income decreased by 95.6% to RMB 0.4 million, mainly because there was no interest income from loans provided to third parties in the current period[69] - Net profit for the period was RMB 34.6 million, an 18.6% year-on-year decrease; net profit margin was 7.8%, a 1.2% year-on-year decrease[71] - Basic and diluted earnings per share were RMB 0.039 per share[72] Liquidity and Capital Resources As of June 30, 2025, the Group's cash and cash equivalents decreased by 16.1% to RMB 169.6 million, with a current ratio of 1.9 times and a gearing ratio of 0.01, indicating a stable financial position - Cash and cash equivalents were RMB 169.6 million, a 16.1% decrease compared to December 31, 2024[75] - The current ratio (current assets / current liabilities) was 1.9 times (December 31, 2024: 2.0 times)[75] - Borrowings were RMB 10.0 million (December 31, 2024: RMB 17.0 million), and the gearing ratio was 0.01 (December 31, 2024: 0.02)[75] Other Information Risk Management and Commitments The Group's operations are primarily denominated in RMB, with foreign exchange risk managed by closely monitoring exchange rate fluctuations; as of the reporting period, there were no capital commitments, financial guarantees, or other significant contingent liabilities - The vast majority of the Group's income and expenses are denominated in RMB, and foreign exchange risk is managed by closely monitoring exchange rate fluctuations[76] - As of June 30, 2025, the Group had no contracted capital commitments for which no provision had been made[77] - As of June 30, 2025, the Company, its subsidiaries, and associates had not provided any financial guarantees, guarantees for loans, or mortgages, nor did they have any other significant contingent liabilities[78] Significant Investments and Subsequent Events During the reporting period, the Group disposed of a 49% stake in Shandong Land Group (Heze) Dexin Asset Operation Co., Ltd., realizing RMB 0.52 million; subsequent to the period, the Group plans to use net proceeds from the global offering to acquire 100% equity in Deqing Moganshan Ruijing Real Estate Co., Ltd. to expand business scale and diversify - During the reporting period, the Group disposed of a 49% stake in Shandong Land Group (Heze) Dexin Asset Operation Co., Ltd., realizing RMB 0.52 million[79] - The Group intends to use part of the net proceeds from the listing to acquire property management companies to expand its business scale and market share[80] - On July 31, 2025, a subsidiary of the Group agreed to acquire 100% equity in Deqing Moganshan Ruijing Real Estate Co., Ltd., primarily engaged in hotel operations and management, for RMB 78 million[81] - This acquisition will utilize HKD 82.4 million (approximately RMB 75.0 million) from the unutilized net proceeds of the global offering, with the remainder funded by internal resources[81] Employees and Remuneration Policy As of June 30, 2025, the Group had 2,770 employees, with total staff costs of RMB 124.8 million for H1; the Company underwent organizational reform, optimized its structure, and established a comprehensive remuneration and multi-level training system to enhance service quality and organizational efficiency - As of June 30, 2025, the Group's total number of employees remained at 2,770, with total staff costs for the first half of the year amounting to RMB 124.8 million[83] - In 2025, the Group underwent organizational reform, merging Jiangsu, Shanghai, and Anhui city companies to form the Su-Hu-Wan Regional Company and establishing a new Zhengzhou city company to optimize organizational structure and enhance operational efficiency[83] - The Group's remuneration system comprehensively considers local salary levels, industry trends, economic inflation, company operational efficiency, and individual employee performance, while providing comprehensive social insurance coverage[84] - The Group has established a comprehensive, multi-level, and multi-dimensional training system covering the entire employee career cycle, including the "Reserve Project Manager Training Program" and "New Torchbearer Management Trainee Program," and implemented a "Star Butler Certification" system[85][86] Share Option Scheme and Use of Proceeds The Company adopted a share option scheme in 2021, but no options have been granted, exercised, cancelled, or lapsed since its adoption; the use of net proceeds from the global offering has been revised, with some allocated to loans for business partners, and remaining funds planned for business expansion and IT investments, with the expected utilization period extended to June 2026 - The Company adopted a share option scheme on June 21, 2021, but no share options have been granted, exercised, cancelled, or lapsed since its adoption date[87] - The net proceeds from the global offering were originally HKD 763.5 million, with approximately 65.0% intended for expanding business scale and market share[88] - The Company previously provided a loan of up to RMB 315 million to business partner Hangzhou Ruiyang Supply Chain Management Co., Ltd., with part repaid and the remainder offset by realizing mortgaged assets and acquiring properties[89][90] - As of December 31, 2024, unutilized net proceeds from the global offering amounted to approximately HKD 138.0 million, with HKD 82.4 million intended for business expansion and HKD 55.6 million for information technology investments[91] - The Directors believe that the acquisition of 100% equity in Deqing Moganshan Ruijing Real Estate Co., Ltd. aligns with the intended use of proceeds for business expansion and diversification[92] - The expected timetable for all utilized net proceeds has been extended to on or before June 2026[92] Use of Net Proceeds from Global Offering and Revised Status (As of June 30, 2025) | Use of Proceeds | IPO Plan (HKD million) | Revised Allocation Dec 16, 2022 (HKD million) | Unutilized Jan 1, 2025 (HKD million) | Utilized During Period (HKD million) | Unutilized June 30, 2025 (HKD million) | Expected Timetable | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Expand business scale and market share | 496.0 | 83.7 | 82.4 | 0 | 82.4 | Before June 2026 | | Diversify and expand service offerings | 76.4 | 7.1 | 0 | 0 | 0 | N/A | | Invest in information technology and internal management systems | 76.4 | 70.2 | 55.6 | 0.6 | 55.0 | Before June 2026 | | Improve human resource management | 38.3 | 12.7 | 0 | 0 | 0 | N/A | | Working capital and general corporate purposes | 76.4 | 7.5 | 0 | 0 | 0 | N/A | | Loans to borrowers | N/A | 342.9 | 0 | 0 | 0 | N/A | | Total | 763.5 | 524.1 | 138.0 | 0.6 | 137.4 | | Corporate Governance and Compliance The Board does not recommend an interim dividend, and the Company repurchased 270,000 shares during the period; the Group is committed to maintaining high corporate governance standards, complying with the Corporate Governance Code and the Model Code for Securities Transactions by Directors, and its financial statements have been reviewed by the Audit Committee - The Board does not recommend the payment of any interim dividend for the reporting period (H1 2024: none)[94] - During the reporting period, the Company repurchased a total of 270,000 shares on the Stock Exchange for a total consideration of HKD 205,200[95][96] - The Company has complied with all applicable code provisions set out in the Corporate Governance Code[97] - All Directors confirm that they have complied with the Model Code for Securities Transactions by Directors of Listed Issuers during the reporting period[98] - The Company's Audit Committee has reviewed the accounting principles and policies adopted by the Group and discussed internal controls and financial reporting matters for the reporting period[99]