领悦服务集团(02165) - 2025 - 中期业绩

Interim Results and Operations Overview Lingyue Service Group announced unaudited interim results for the six months ended June 30, 2025, with revenue increasing by 2.4% to RMB 321.0 million, but gross profit and net profit decreased by 4.5% and 12.2% respectively; managed area slightly decreased while contracted area continued to grow Interim Financial Performance | Indicator | Six Months Ended June 30, 2025 (RMB million) | Six Months Ended June 30, 2024 (RMB million) | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 321.0 | 313.3 | +2.4% | | Gross Profit | 95.1 | 99.6 | -4.5% | | Net Profit | 53.0 | 60.3 | -12.2% | - As of June 30, 2025, the Group had 257 contracted projects with a contracted gross floor area of 36.0 million square meters, and 252 managed projects with a managed gross floor area of 31.4 million square meters[4] Interim Condensed Consolidated Financial Statements Interim Condensed Consolidated Statement of Profit or Loss During the reporting period, the company's revenue slightly increased, but changes in cost of sales, impairment losses on financial assets, and income tax expense led to a year-on-year decrease in net profit Interim Consolidated Statement of Profit or Loss | Indicator | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Revenue | 320,960 | 313,294 | | Cost of sales | (225,899) | (213,732) | | Gross profit | 95,061 | 99,562 | | Other income and gains | 5,168 | 3,273 | | Administrative expenses | (28,076) | (27,475) | | Net impairment losses on financial assets and goodwill | (11,331) | (4,341) | | Other expenses | (114) | (153) | | Share of profits of a joint venture | 18 | 709 | | Profit before tax | 60,726 | 71,575 | | Income tax expense | (7,766) | (11,249) | | Profit for the period | 52,960 | 60,326 | | Profit attributable to owners of the parent | 49,076 | 58,018 | | Profit attributable to non-controlling interests | 3,884 | 2,308 | | Basic and diluted earnings per share attributable to ordinary equity holders of the parent | RMB 0.17 | RMB 0.20 | Interim Condensed Consolidated Statement of Comprehensive Income In addition to profit for the period, other comprehensive income was mainly affected by fair value changes of equity investments designated at fair value, showing a positive gain this period compared to a loss in the prior period Interim Consolidated Statement of Comprehensive Income | Indicator | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Profit for the period | 52,960 | 60,326 | | Other comprehensive income, net of tax | 785 | (15) | | Total comprehensive income for the period | 53,745 | 60,311 | | Total comprehensive income attributable to owners of the parent | 49,861 | 58,003 | | Total comprehensive income attributable to non-controlling interests | 3,884 | 2,308 | Interim Condensed Consolidated Statement of Financial Position As of June 30, 2025, the company's net current assets and total equity both increased, while non-current assets slightly decreased and current liabilities reduced Interim Consolidated Statement of Financial Position | Indicator | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Assets | | | | Total non-current assets | 34,165 | 35,793 | | Total current assets | 943,232 | 934,225 | | Liabilities | | | | Total current liabilities | 292,089 | 338,203 | | Total non-current liabilities | 834 | 936 | | Equity | | | | Net assets | 684,474 | 630,879 | | Equity attributable to owners of the parent | 665,320 | 615,460 | | Non-controlling interests | 19,154 | 15,419 | | Total equity | 684,474 | 630,879 | Notes to the Interim Condensed Consolidated Financial Information 1. Company and Group Information Lingyue Service Group, incorporated in the Cayman Islands and listed on HKEX in July 2021, primarily provides property management, value-added services to non-property owners, and community value-added services, with its ultimate controlling shareholders being six individuals including Mr. Liu Yuhui - The company was incorporated in the Cayman Islands and listed on the Main Board of The Stock Exchange of Hong Kong Limited since July 12, 2021[10] - The Group primarily engages in providing property management services, value-added services to non-property owners, and community value-added services[10] - The ultimate controlling shareholders of the company are Mr. Liu Yu Hui, Mr. Liu Ce, Mr. Liu Hao Wei, Ms. Wang Tao, Ms. Long Yi Qin, and Ms. Hou San Li[10] 2. Accounting Policies The condensed consolidated financial statements are prepared on a historical cost basis, except for equity investments designated at fair value, with no significant impact from new IFRS amendments applied this period - The condensed consolidated financial statements are prepared on a historical cost basis, except for equity investments designated at fair value through other comprehensive income[12] - The application of amendments to International Financial Reporting Standards during this interim period had no significant impact on the Group's financial performance and position for the current and prior periods[13] 3. Revenue Total revenue for the reporting period increased by 2.4% year-on-year, with significant growth in property management services revenue, while value-added services to non-property owners and community value-added services revenue both decreased Revenue by Service Type | Revenue Source | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Property management services | 296,356 | 276,291 | | Value-added services to non-property owners | 4,045 | 9,910 | | Community value-added services | 20,559 | 27,093 | | Total | 320,960 | 313,294 | 4. Profit Before Tax Profit before tax decreased during the reporting period, mainly due to increased cost of services provided, higher amortization of other intangible assets, and a significant increase in net impairment losses on trade receivables Profit Before Tax Components | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Cost of services provided | 225,899 | 213,732 | | Depreciation of property, plant and equipment | 1,711 | 1,745 | | Amortisation of other intangible assets | 1,984 | 1,038 | | Net impairment losses on financial assets: | | | | Net impairment losses on trade receivables | 13,041 | 4,654 | | Net reversal of impairment losses on amounts due from related companies | (1,058) | (106) | | Net impairment losses on financial assets included in prepayments and other receivables | (652) | (207) | 5. Income Tax Expense Income tax expense decreased by 31% year-on-year, primarily due to lower taxable profit, with the company applying 25%, 15% (western region preferential), and small-profit enterprise preferential tax rates in mainland China - Income tax expense decreased by approximately 31% from RMB 11.2 million in the prior period of 2024 to approximately RMB 7.8 million, primarily due to a decrease in taxable profit[22][61] - The Group applied three types of tax rates during the reporting period, including a 25% tax rate, a 15% tax rate under the Western Region Preferential Tax Policy, and a preferential tax rate for small-profit enterprises[20] 6. Dividends The Board of Directors resolved not to declare any interim dividend for the six months ended June 30, 2025, consistent with the prior year - The Board of Directors resolved not to declare any interim dividend for the six months ended June 30, 2025 (six months ended June 30, 2024: nil)[23] 7. Earnings Per Share Attributable to Ordinary Equity Holders of the Parent Basic earnings per share attributable to ordinary equity holders of the parent was RMB 0.17, lower than RMB 0.20 in the prior period, primarily due to decreased profit Earnings Per Share | Indicator | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Profit attributable to ordinary equity holders of the parent for the purpose of calculating basic earnings per share | 49,076 | 58,018 | | Weighted average number of ordinary shares in issue for the purpose of calculating basic earnings per share | 285,685,000 | 285,685,000 | | Basic earnings per share | RMB 0.17 | RMB 0.20 | 8. Trade Receivables As of June 30, 2025, total trade receivables increased by 4.2% to RMB 141.3 million from the end of 2024, mainly due to increased total revenue, with a notable increase in receivables aged 1-2 years Trade Receivables by Ageing | Ageing | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Within 1 year | 102,104 | 103,024 | | 1 to 2 years | 29,873 | 21,790 | | 2 to 3 years | 7,487 | 8,102 | | Over 3 years | 1,847 | 2,693 | | Total | 141,311 | 135,609 | - Trade receivables amounted to approximately RMB 141.3 million, an increase of approximately RMB 5.7 million or 4.2% compared to approximately RMB 135.6 million as of December 31, 2024, primarily due to an increase in total revenue[63] 9. Trade Payables As of June 30, 2025, total trade payables decreased by 9.6% to RMB 37.1 million, primarily due to the company's adjustment of payment schedules Trade Payables by Ageing | Ageing | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Within 1 year | 28,943 | 37,122 | | Over 1 year | 8,189 | 3,965 | | Total | 37,132 | 41,087 | - Trade payables amounted to approximately RMB 37.1 million, a decrease of approximately 9.6% compared to approximately RMB 41.1 million as of December 31, 2024, mainly due to the Group adjusting its payment schedule based on market conditions[65] Management Discussion and Analysis Development Strategy and Outlook The company adheres to its "deep cultivation in Southwest, layout in Xinjiang, and national development" strategy, forming "Sichuan + Xinjiang" as dual growth poles, steadily increasing managed scale, and expanding into diverse property types like schools, industrial parks, and public buildings - The Group adheres to its development strategy of "deep cultivation in Southwest, layout in Xinjiang, and national development," fostering "Sichuan + Xinjiang" as dual growth poles, achieving steady growth in managed scale, and deepening its presence in various property types such as schools, industrial parks, and public buildings, gradually moving towards a comprehensive and diversified market[29] - Looking ahead to the second half of 2025, the Group will steadfastly uphold its service philosophy of "Kindness and Companionship, Touching Hearts," continuously building its foundation on quality, focusing on warm services, solidifying its operational base, concentrating on creating customer value, actively expanding its service boundaries, and guiding high-quality enterprise development with a long-term perspective[30] Business Model of the Group The Group operates three business lines: property management, value-added services to non-property owners, and community value-added services, offering comprehensive services across the property management value chain - The Group operates three business lines: (i) property management services, (ii) value-added services to non-property owners, and (iii) community value-added services, providing comprehensive services covering the entire property management value chain for its customers[31] - Community value-added services typically generate higher profit margins, thus continuously enhancing the Group's financial performance[32] Property Management Services Property management services, the Group's core business, include security, cleaning, and maintenance for a diverse property portfolio; total contracted GFA increased by 1.0% while total managed GFA slightly decreased by 1.0% as of June 30, 2025 - The Group provides a wide range of property management services, including security, cleaning and landscaping, and repair and maintenance services, to property owners, residents, property developers, and tenants of managed non-residential properties[33] - The Group manages a diversified property portfolio, including residential properties, commercial properties, and public and other properties[33] - As of June 30, 2025, the Group's total contracted gross floor area was approximately 36.0 million square meters, an increase of 1.0% compared to the same period in 2024, while total managed gross floor area was approximately 31.4 million square meters, a decrease of 1.0% compared to the same period in 2024[34] Scope of Services and Property Portfolio The Group has provided property management services since 2002, managing 252 projects and contracting 257 projects as of June 30, 2025, with 4.671 million square meters of undelivered GFA expected to be delivered between August 2025 and August 2031 Property Management Portfolio | Indicator | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Number of managed properties | 252 | 267 | | Number of contracted properties | 257 | 272 | | Managed GFA (thousand sq.m.) | 31,353 | 31,680 | | Contracted GFA (thousand sq.m.) | 36,024 | 35,665 | | Undelivered GFA (thousand sq.m.) | 4,671 | 3,985 | - The estimated time for delivery and revenue generation of undelivered projects as of June 30, 2025, ranges from August 2025 to August 2031[35] Geographical Coverage and Revenue Breakdown The Group has expanded its geographical coverage to 34 cities across 9 provinces, 1 autonomous region, and 1 municipality in China, with Sichuan Province remaining the primary market contributing 78.3% of property management service revenue - The Group has expanded its geographical coverage to 34 cities, 9 provinces, 1 autonomous region, and 1 municipality in China[36] Property Management Revenue by Region | Region | 2025 Property Management Revenue (RMB thousand) | 2025 Property Management Revenue Share (%) | 2024 Property Management Revenue (RMB thousand) | 2024 Property Management Revenue Share (%) | | :--- | :--- | :--- | :--- | :--- | | Sichuan Province | 231,252 | 78.3 | 217,001 | 78.7 | | Xinjiang Uygur Autonomous Region | 24,658 | 8.3 | 22,161 | 8.0 | | Guangdong Province | 13,367 | 4.5 | 13,325 | 4.8 | | Jilin Province | 10,841 | 3.7 | 10,312 | 3.7 | | Hebei Province | 1,237 | 0.4 | 1,221 | 0.4 | | Henan Province | 3,872 | 1.3 | 4,310 | 1.6 | | Hubei Province | 3,679 | 1.2 | 3,425 | 1.2 | | Jiangsu Province | 998 | 0.3 | 762 | 0.3 | | Guizhou Province | 2,971 | 1.0 | 2,330 | 0.8 | | Chongqing Municipality | 1,980 | 0.7 | 1,444 | 0.5 | | Fujian Province | 957 | 0.3 | — | — | | Total | 295,812 | 100 | 276,291 | 100 | Source of Managed Properties The Group primarily serves properties developed by Landsea Holdings Group, but the number of managed projects and revenue contribution from non-Landsea Holdings Group and non-joint venture entities have increased, indicating enhanced third-party expansion capabilities Property Management Revenue by Developer Type | Developer Type | 2025 Property Management Revenue (RMB thousand) | 2025 Property Management Revenue Share (%) | 2024 Property Management Revenue (RMB thousand) | 2024 Property Management Revenue Share (%) | | :--- | :--- | :--- | :--- | :--- | | Landsea Holdings Group | 206,724 | 70.0 | 183,358 | 66.4 | | Joint ventures of Landsea Holdings Group | 5,469 | 1.8 | 14,722 | 5.3 | | Non-Landsea Holdings Group and non-joint ventures | 83,619 | 28.2 | 78,211 | 28.3 | | Total | 295,812 | 100 | 276,291 | 100 | Contracted Projects and GFA by Developer Type | Developer Type | 2025 Number of Contracted Projects | 2025 Contracted GFA (thousand sq.m.) | 2024 Number of Contracted Projects | 2024 Contracted GFA (thousand sq.m.) | | :--- | :--- | :--- | :--- | :--- | | Landsea Holdings Group | 94 | 19,514 | 97 | 18,169 | | Joint ventures of Landsea Holdings Group | 4 | 427 | 10 | 2,028 | | Non-Landsea Holdings Group and non-joint ventures | 159 | 16,083 | 165 | 15,468 | | Total | 257 | 36,024 | 272 | 35,665 | Types of Managed Properties Residential properties remain the dominant managed property type, contributing 81.2% of property management service revenue, with pre-delivery stage residential properties accounting for the largest share, while commercial and public/other property revenue contributions decreased Property Management Revenue by Property Type | Property Type | 2025 Property Management Revenue (RMB thousand) | 2025 Property Management Revenue Share (%) | 2024 Property Management Revenue (RMB thousand) | 2024 Property Management Revenue Share (%) | | :--- | :--- | :--- | :--- | :--- | | Residential properties | 240,242 | 81.2 | 206,108 | 74.6 | | —Pre-delivery stage | 196,740 | 66.5 | 170,479 | 61.7 | | —Owners' committee stage | 43,502 | 14.7 | 35,629 | 12.9 | | Commercial properties | 27,379 | 9.3 | 38,133 | 13.8 | | Public and other properties | 28,191 | 9.5 | 32,050 | 11.6 | | Total | 295,812 | 100 | 276,291 | 100 | Value-Added Services to Non-Property Owners Revenue from value-added services to non-property owners, including preliminary planning and sales office management, significantly decreased by 59.2% year-on-year to RMB 4.0 million, primarily due to a decline in sales office management services - Revenue from value-added services to non-property owners decreased by 59.2% to approximately RMB 4.0 million compared to approximately RMB 9.9 million in the prior period of 2024[49] - The decrease in revenue was primarily due to a decline in sales office management services[49] Revenue from Value-Added Services to Non-Property Owners | Service Type | 2025 (RMB thousand) | 2025 Share (%) | 2024 (RMB thousand) | 2024 Share (%) | | :--- | :--- | :--- | :--- | :--- | | Preliminary planning and design consultancy services | 2,148 | 53.1 | 2,110 | 21.3 | | Sales office management services | 1,702 | 42.1 | 6,500 | 65.6 | | Pre-delivery services | 9 | 0.2 | 525 | 5.3 | | Repair and maintenance services | 153 | 3.8 | 505 | 5.1 | | Property transaction assistance services | 33 | 0.8 | 270 | 2.7 | | Total | 4,045 | 100 | 9,910 | 100 | Community Value-Added Services Revenue from community value-added services, including community space management and renovation, decreased by 22.1% year-on-year to RMB 21.1 million, mainly due to a decline in "move-in ready" services, despite significant growth in convenience living and community retail services - Revenue from community value-added services decreased by 22.1% to approximately RMB 21.1 million compared to approximately RMB 27.1 million in the prior period of 2024[51] - The decrease in revenue was primarily due to a decline in "move-in ready" services[51] Revenue from Community Value-Added Services | Service Type | 2025 (RMB thousand) | 2025 Share (%) | 2024 (RMB thousand) | 2024 Share (%) | | :--- | :--- | :--- | :--- | :--- | | Community space management services | 3,164 | 15.0 | 3,915 | 14.4 | | Renovation and "move-in ready" services | 6,397 | 30.3 | 16,766 | 61.9 | | Convenience living services | 9,592 | 45.5 | 6,314 | 23.3 | | Community retail services | 1,950 | 9.2 | 98 | 0.4 | | Total | 21,103 | 100 | 27,093 | 100 | Financial Review During the reporting period, the Group's total revenue slightly increased, but higher cost of sales led to a decrease in gross profit and gross profit margin; administrative expenses rose due to increased labor costs, while income tax expense decreased due to lower taxable profit, resulting in a 14% year-on-year decline in profit attributable to owners of the parent - The Group's revenue was approximately RMB 321.0 million, an increase of approximately 2.4% compared to RMB 313.3 million in the prior period of 2024[54] - The Group's gross profit decreased by 4.5% from approximately RMB 99.6 million in the prior period of 2024 to approximately RMB 95.1 million, and the gross profit margin decreased by 2.2 percentage points from 31.8% to 29.6%[58] - Profit and total comprehensive income attributable to owners of the parent was approximately RMB 49.9 million, a decrease of approximately 14% compared to RMB 58 million in the prior period of 2024[62] Revenue Analysis Total revenue increased by 2.4% year-on-year to RMB 321.0 million, with property management services remaining the largest revenue source at 92.1%, driven by higher average unit prices for newly delivered properties, while non-property owner and community value-added services revenue both declined Revenue by Business Segment | Business Segment | 2025 (RMB thousand) | 2025 Revenue Percentage (%) | 2024 (RMB thousand) | 2024 Revenue Percentage (%) | | :--- | :--- | :--- | :--- | :--- | | Property management services | 295,812 | 92.1 | 276,291 | 88.2 | | Value-added services to non-property owners | 4,045 | 1.3 | 9,910 | 3.2 | | Community value-added services | 21,103 | 6.6 | 27,093 | 8.6 | | Total | 320,960 | 100 | 313,294 | 100 | - The increase in property management services revenue was attributable to higher average unit prices for newly delivered properties[56] - The decrease in revenue from value-added services to non-property owners was mainly due to a reduction in sales office management services; the decrease in revenue from community value-added services was mainly due to a decline in "move-in ready" services[56] Cost of Sales Cost of sales increased by 5.7% year-on-year to RMB 225.9 million, primarily due to increased operational costs from greater investment in infrastructure to enhance property management quality - The Group's cost of sales was approximately RMB 225.9 million, an increase of approximately 5.7% compared to approximately RMB 213.7 million in the prior period of 2024[57] - The main reason for the increase in cost of sales was the Group's increased investment in infrastructure to enhance property quality, leading to higher operating costs[57] Gross Profit and Gross Profit Margin Gross profit decreased by 4.5% year-on-year to RMB 95.1 million, and the gross profit margin declined by 2.2 percentage points to 29.6%, mainly due to increased operating costs, with community value-added services experiencing the largest margin decrease - The Group's gross profit decreased by 4.5% from approximately RMB 99.6 million in the prior period of 2024 to approximately RMB 95.1 million[58] - The Group's gross profit margin decreased by 2.2 percentage points from 31.8% in the prior period of 2024 to 29.6%, primarily due to increased operating costs[58] Gross Profit Margin by Business Segment | Business Segment | 2025 Gross Profit Margin (%) | 2024 Gross Profit Margin (%) | Gross Profit Margin Change (%) | | :--- | :--- | :--- | :--- | | Property management services | 29.4 | 30.2 | -0.8 | | Value-added services to non-property owners | 31.1 | 33.3 | -2.2 | | Community value-added services | 38.0 | 46.9 | -8.9 | | Total | 29.6 | 31.8 | -2.2 | Administrative Expenses Administrative expenses increased by 2.2% year-on-year to RMB 28.1 million, primarily attributable to higher labor costs - The Group's administrative expenses increased by approximately 2.2% from approximately RMB 27.5 million in the prior period of 2024 to approximately RMB 28.1 million, mainly due to increased labor costs[60] Income Tax Expense Income tax expense decreased by 31% year-on-year to RMB 7.8 million, mainly due to a reduction in taxable profit - The Group's income tax expense decreased by approximately 31% from RMB 11.2 million in the prior period of 2024 to approximately RMB 7.8 million, primarily due to a decrease in taxable profit[61] Profit Attributable to Owners of the Parent Profit and total comprehensive income attributable to owners of the parent decreased by 14% year-on-year to RMB 49.9 million - Profit and total comprehensive income attributable to owners of the parent was approximately RMB 49.9 million, a decrease of approximately 14% compared to RMB 58 million in the prior period of 2024[62] Trade Receivables Trade receivables increased to RMB 141.3 million, up 4.2% from the end of 2024, primarily driven by an increase in total revenue - As of June 30, 2025, the Group's trade receivables were approximately RMB 141.3 million, an increase of approximately RMB 5.7 million or 4.2% compared to approximately RMB 135.6 million as of December 31, 2024, primarily due to an increase in total revenue[63] Prepayments, Deposits and Other Receivables Prepayments, deposits, and other receivables decreased by 15.6% to RMB 44.6 million, mainly due to a significant reduction in cash in transit balances - As of June 30, 2025, the Group's prepayments, deposits, and other receivables were approximately RMB 44.6 million, a decrease of approximately 15.6% compared to approximately RMB 52.8 million as of December 31, 2024, primarily due to a significant decrease in cash in transit balances[64] Trade Payables Trade payables decreased by 9.6% to RMB 37.1 million, primarily due to the company's adjustment of payment schedules based on market conditions - As of June 30, 2025, the Group's trade payables were approximately RMB 37.1 million, a decrease of approximately 9.6% compared to approximately RMB 41.1 million as of December 31, 2024, mainly due to the Group adjusting its payment schedule based on market conditions[65] Liquidity and Financial Resources The Group maintains prudent financial management, closely monitoring its liquidity to ensure future funding needs are met, with cash primarily used for investments, information technology, and working capital - The Board of Directors closely monitors the Group's liquidity position to ensure that the liquidity structure of the Group's assets, liabilities, and other commitments can meet its funding needs in the foreseeable future[66] - During the reporting period, the Group's cash was primarily used for investments, information technology construction, and working capital, mainly funded by proceeds from the company's operations[66] Interest Rate Risk The Group faces no significant direct risks from market interest rate fluctuations as it has no material interest-bearing assets or liabilities - As the Group has no material interest-bearing assets and liabilities, it does not face significant direct risks related to changes in market interest rates[67] Foreign Exchange Risk Operating primarily in China with all transactions denominated and settled in RMB, the Group does not engage in foreign exchange hedging, though RMB depreciation could adversely affect the value of dividends paid to overseas shareholders - The Group primarily conducts its business operations in China, with all transactions denominated and settled in RMB[68] - Any depreciation of the RMB would adversely affect the value of any dividends paid by the company to its shareholders outside China[68] - The Group currently does not engage in hedging activities aimed at or intended to manage foreign exchange rate risk[68] Gearing Ratio The gearing ratio is not meaningful as of June 30, 2025, due to zero interest-bearing borrowings - The gearing ratio as of June 30, 2025, is not meaningful as the Group had zero interest-bearing borrowings on the same date (December 31, 2024: zero)[69] Contingent Liabilities As of June 30, 2025, the Group had no contingent liabilities - As of June 30, 2025, the Group had no contingent liabilities[70] Material Acquisitions and Disposals During the reporting period, the Group did not undertake any material acquisitions or disposals of subsidiaries, associates, or joint ventures - During the reporting period, the Group did not undertake any material acquisitions or disposals of subsidiaries, associates, or joint ventures[71] Material Investments During the reporting period, the Group held no material investments - During the reporting period, the Group held no material investments[72] Future Investments and Capital Asset Plans As of June 30, 2025, the Group had no significant future investment or capital asset plans beyond those disclosed in its prospectus - Except for those disclosed in the "Future Plans and Use of Proceeds" section of the company's prospectus dated June 29, 2021, the Group had no significant plans for investments and capital assets as of June 30, 2025[73] Pledge of Assets As of June 30, 2025, the Group's pledged deposits amounted to RMB 0.1 million, consistent with the end of 2024 - As of June 30, 2025, the Group's pledged deposits amounted to RMB 0.1 million (December 31, 2024: RMB 0.1 million)[74] Other Information Staff As of June 30, 2025, the Group had 5,260 employees, a decrease from the end of 2024, with total staff costs remaining largely stable year-on-year, and plans to enhance training and adhere to local social security and provident fund regulations - As of June 30, 2025, the Group had 5,260 employees (December 31, 2024: 5,644 employees)[75] - During the reporting period, total staff costs were approximately RMB 149.7 million, compared to approximately RMB 149.5 million in the prior period of 2024[75] - The Group will further strengthen its employee training programs using internal and external resources, adopt remuneration policies similar to its peers, and comply with local government regulations for social insurance contribution schemes or other retirement schemes[75] Significant Post-Reporting Period Events There have been no significant post-reporting period events affecting the company from June 30, 2025, up to the announcement date - There have been no significant events affecting the company from June 30, 2025, up to the date of this announcement[76] Compliance with Corporate Governance Code The Group is committed to maintaining high standards of corporate governance, having adopted and complied with all applicable provisions of the Corporate Governance Code in Appendix C1 of the HKEX Listing Rules during the reporting period - The Group is committed to maintaining and enhancing high standards of corporate governance to safeguard shareholders' interests, enhance corporate value, and improve accountability[77] - The company has adopted the Corporate Governance Code set out in Appendix C1 to the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited and has complied with all applicable code provisions during the reporting period[77] Standard Code for Securities Transactions by Directors The company has adopted the Standard Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix C3 of the Listing Rules, with all directors confirming compliance during the reporting period - The company has adopted the Standard Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix C3 to the Listing Rules[78] - Following specific enquiries made to all directors, they confirmed that they have complied with the standards for securities transactions by directors as set out in the Standard Code during the reporting period[78] Purchase, Sale or Redemption 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, and no treasury shares were held as of June 30, 2025 - During the reporting period, neither the company nor its subsidiaries purchased, sold, or redeemed any of the company's listed securities[79] - As of June 30, 2025, the company held no treasury shares[79] Interim Dividends The Board of Directors resolved not to declare any interim dividend for the six months ended June 30, 2025, consistent with the prior year - The Board of Directors resolved not to declare any interim dividend for the six months ended June 30, 2025 (six months ended June 30, 2024: nil)[80] Audit Committee Review of Unaudited Interim Results The Audit Committee reviewed the Group's unaudited interim results for the six months ended June 30, 2025, agreeing with management on accounting principles, risk management, internal controls, and financial reporting, with the committee comprising three independent non-executive directors, including a professionally qualified chair - The Audit Committee has reviewed the Group's unaudited interim results for the six months ended June 30, 2025, and has agreed with the company's management on the accounting principles and practices adopted by the Group, risk management, internal controls, and financial reporting matters[81] - The Audit Committee comprises three independent non-executive directors, Ms. Luo Ying, Mr. Hu Ning, and Ms. Zou Dan, with Ms. Zou Dan appointed as the chairperson of the Audit Committee, possessing the appropriate professional qualifications or relevant financial management expertise as required by Rule 3.10(2) of the Listing Rules[81] Publication of Interim Results Announcement and Interim Report on HKEX and Company Website The interim results announcement has been published on the websites of HKEX and the company, with the interim report to be made available to shareholders in due course - This interim results announcement will be published on the websites of Hong Kong Exchanges and Clearing Limited (www.hkexnews.hk) and the company (www.lingyue-service.com) respectively[82] - The company's interim report for the six months ended June 30, 2025, will be provided to shareholders in due course and will be available on the aforementioned websites[82] Board of Directors As of the announcement date, the Board of Directors includes executive directors Mr. Liu Yuqi and Ms. Luo Hongping; non-executive directors Ms. Wang Tao and Ms. Hou Sanli; and independent non-executive directors Ms. Luo Ying, Mr. Hu Ning, and Ms. Zou Dan - As of the date of this announcement, the Board of Directors comprises executive directors Mr. Liu Yuqi and Ms. Luo Hongping; non-executive directors Ms. Wang Tao and Ms. Hou Sanli; and independent non-executive directors Ms. Luo Ying, Mr. Hu Ning, and Ms. Zou Dan[84]