方圆生活服务(09978) - 2025 - 中期财报

Company Information Board of Directors and Key Personnel This section outlines Fangyuan Life Services Group Co., Ltd.'s corporate details, including board changes, auditors, and key operational information - Board member changes include Mr. Fang Ming's re-designation as Executive Director, Mr. Sun Ligong's appointment as CEO, Mr. Cao Bingchang's resignation, and the appointment or re-designation of Ms. Chen Zhuoman, Ms. Xie Lihua, and Mr. Du Chenghua[4] - The auditor is Zhongrui Hexin Certified Public Accountants Co., Ltd[5] - Major banks include Industrial Bank, Agricultural Bank of China, and Shanghai Pudong Development Bank[5] Unaudited Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income Profit or Loss Overview For H1 2025, the Group's net loss significantly narrowed to RMB 6.52 million, a 47.0% improvement from the prior year, primarily due to reduced financial asset impairment losses | Metric | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Revenue | 168,431 | 186,085 | | Service Costs | (135,000) | (148,094) | | Gross Profit | 33,431 | 37,991 | | Loss Before Income Tax | (9,212) | (13,313) | | Loss for the Period | (6,520) | (12,310) | | Loss Per Share (RMB cents) | (1.50) | (3.67) | - Net impairment losses on financial assets significantly decreased from RMB 32,816 thousand in H1 2024 to RMB 23,576 thousand in H1 2025[10] Unaudited Condensed Consolidated Statement of Financial Position Balance Sheet Overview As of June 30, 2025, the Group's net current liabilities increased to RMB 36.17 million, total assets and shareholders' equity decreased, reflecting ongoing liquidity pressure | Metric | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Total Non-current Assets | 120,813 | 121,564 | | Total Current Assets | 227,426 | 245,178 | | Total Current Liabilities | 263,593 | 273,193 | | Net Current Liabilities | (36,167) | (28,015) | | Net Assets | 77,620 | 85,724 | | Equity Attributable to Owners of the Company | 29,812 | 34,055 | - Trade receivables decreased from RMB 83,956 thousand as of December 31, 2024, to RMB 79,689 thousand as of June 30, 2025[11] - Bank balances and cash decreased from RMB 64,765 thousand as of December 31, 2024, to RMB 44,036 thousand as of June 30, 2025[11] Unaudited Condensed Consolidated Statement of Changes in Equity Equity Movement Analysis For H1 2025, equity attributable to owners decreased to RMB 29.81 million, mainly due to a period loss of RMB 5.999 million and dividends paid to non-controlling interests - Equity attributable to owners of the Company decreased from RMB 34,055 thousand as of January 1, 2025, to RMB 29,812 thousand as of June 30, 2025[13] - Loss for H1 2025 was RMB 5,999 thousand, a significant narrowing from RMB 14,673 thousand in H1 2024[13] - Dividends paid to non-controlling interests in H1 2025 amounted to RMB 3,340 thousand[13] Unaudited Condensed Consolidated Statement of Cash Flows Cash Flow Overview For H1 2025, net cash used in operating activities was RMB 18.76 million, an improvement from the prior year, but net cash and cash equivalents decreased by RMB 20.73 million, with the period-end balance at RMB 44.04 million | Metric | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Net Cash Used in Operating Activities | (18,762) | (22,551) | | Net Cash Used in Investing Activities | (276) | (1,016) | | Net Cash Used in Financing Activities | (1,689) | (10,392) | | Net Decrease in Cash and Cash Equivalents | (20,727) | (33,959) | | Cash and Cash Equivalents at End of Period | 44,036 | 54,317 | - Dividends paid to non-controlling interests in H1 2025 were RMB 1,535 thousand, a decrease from RMB 3,845 thousand in the prior year[14] Notes to the Unaudited Condensed Consolidated Financial Statements 1. General Information This note outlines the company's registration, listing status, and primary business activities of providing professional property management and value-added services in China - The Company is incorporated in the Cayman Islands, with its shares listed on the Main Board of The Stock Exchange of Hong Kong Limited[15] - The Group's principal activities are providing residential and non-residential property management services and value-added services in China[15] - Mr. Fang Ming, Ms. Xie Lihua, and Mr. Huang Peng are parties acting in concert and the ultimate controlling shareholders of the Group[16] 2. Basis of Preparation This note details the basis of preparation for the consolidated financial statements, highlighting significant going concern uncertainties and management's liquidity mitigation efforts - As of June 30, 2025, the Group recorded a net loss of approximately RMB 6.52 million and its current liabilities exceeded current assets by approximately RMB 36.17 million, raising significant doubt about its ability to continue as a going concern[20] - Management has taken measures to alleviate liquidity pressure, including financial support from shareholders, negotiating repayment arrangements with suppliers, cost and capital expenditure reductions, and expecting positive cash flow from operating activities[21][23][25] 3. Significant Accounting Policies This note confirms interim financial statement accounting policies are consistent with annual statements, with new HKFRS standards expected to have no material impact - The accounting policies used in preparing these interim financial statements are consistent with those used in the 2024 annual financial statements, except for new and revised Hong Kong Financial Reporting Standards[24] - The Directors anticipate that the application of new and revised HKFRS will not have any material impact on the financial statements[24] 4. Segment Reporting This note identifies the Group's operating segments, integrated real estate agency and professional property management, detailing their revenue and profit/loss - The Group's reportable operating segments are integrated real estate agency services and professional property management services[26] | Segment | H1 2025 Revenue (RMB thousand) | H1 2024 Revenue (RMB thousand) | | :--- | :--- | :--- | | Real Estate Agency Services | 692 | 5,432 | | Property Management Services | 167,739 | 180,653 | | Total | 168,431 | 186,085 | - The chief operating decision-maker does not regularly review segment assets and liabilities, thus total assets and liabilities for each operating segment are not presented[29] 5. Revenue This note details the Group's revenue breakdown and recognition, showing property management as the primary income source, despite a decline across all service revenues | Revenue Type | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Real Estate Agency Services Revenue | 692 | 5,432 | | Property Management Services Revenue | 147,455 | 152,648 | | Non-owner Value-Added Services Revenue | 4,881 | 7,983 | | Community Value-Added Services Revenue (Other Value-Added Services) | 15,240 | 19,511 | | Community Value-Added Services Revenue (Goods Sales) | 163 | 511 | | Total | 168,431 | 186,085 | 6. Other Income, Losses and Gains, Net This note presents the Group's other income, losses, and gains, net, showing a net loss of RMB 359 thousand in H1 2025, compared to a net gain of RMB 795 thousand in the prior year | Item | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Fair Value Loss on Investment Properties | (291) | - | | Government Grants | 109 | 52 | | Interest Income | 3 | 105 | | Net Exchange Gain | (382) | 105 | | Fair Value Gain on Financial Assets at FVTPL | 148 | 199 | | Other Income, Losses and Gains, Net | (359) | 795 | - Government grants primarily refer to refunds of value-added tax and other tax incentives received from Chinese tax authorities[33] 7. Loss Before Income Tax This note details loss before income tax components, highlighting net impairment losses on financial assets as a key factor, significantly reduced in H1 2025 | Item | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Employee Benefit Expenses | 65,531 | 71,136 | | Net Impairment Losses on Financial Assets | 23,576 | 32,816 | | - Trade Receivables | 16,468 | 19,755 | | - Amounts Due from Associates | 6,894 | 4,987 | | - Amounts Due from Non-controlling Interests | 199 | 50 | | - Other Receivables | 15 | 901 | - Net impairment losses on financial assets primarily consist of impairment provisions for trade receivables and amounts due from associates[34] 8. Income Tax This note explains income tax composition, including current and deferred tax, and outlines applicable Chinese corporate income tax rates and preferential policies | Item | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Current Tax - PRC Corporate Income Tax | 1,924 | 1,431 | | Deferred Tax | (4,616) | (2,434) | | Total Income Tax | (2,692) | (1,003) | - Chinese entities are subject to a 25% income tax rate, but certain subsidiaries enjoy a 5% preferential income tax rate for qualifying as small and micro enterprises[39] 9. Dividends This note confirms the Company neither paid nor declared any dividends for H1 2025 or since the reporting period end - The Company neither paid nor declared any dividends for the six months ended June 30, 2025, nor has it proposed any dividends since the end of this reporting period[36] 10. Loss Per Share This note provides basic and diluted loss per share calculations, showing a H1 2025 loss of RMB 1.50 cents, an improvement from RMB 3.67 cents in the prior year | Metric | H1 2025 (Unaudited) | H1 2024 (Unaudited) | | :--- | :--- | :--- | | Loss for the Period Attributable to Owners of the Company (RMB thousand) | (5,999) | (14,673) | | Weighted Average Number of Ordinary Shares | 400,000,000 | 400,000,000 | | Loss Per Share (RMB cents) | (1.50) | (3.67) | - Diluted loss per share is the same as basic loss per share due to the absence of potentially dilutive ordinary shares[37] 11. Property, Plant and Equipment This note discloses the Group's property, plant, and equipment acquisitions and disposals, showing reduced acquisition costs and a loss from disposals in H1 2025 - Total cost of property, plant and equipment acquired in H1 2025 was RMB 855 thousand, a decrease from RMB 930 thousand in the prior year[38] - Disposals of property, plant and equipment in H1 2025 resulted in a loss of RMB 10 thousand, compared to a gain of RMB 202 thousand in the prior year[38] 12. Investment Properties This note clarifies the Group's purpose for holding investment properties, primarily for rental income or capital appreciation, and lists their composition as of June 30, 2025 - The Group holds investment properties, including shops, commercial properties, residential properties, and parking spaces, primarily for rental income or capital appreciation[40] 13. Leases This note details the Group's lease agreements, including property types, lease terms, and changes in right-of-use assets and lease liabilities - The Group has entered into various lease agreements for offices, shops, and parking spaces in China, with lease terms ranging from two to seven years[41] | Lease Liabilities | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Current Liabilities | 303 | 298 | | Non-current Liabilities | 564 | 696 | | Total | 867 | 994 | 14. Trade Receivables This note provides detailed information on trade receivables, including composition, aging analysis, and impairment provisions, indicating a decrease in total trade receivables | Trade Receivables | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Total Trade Receivables | 178,425 | 166,224 | | Less: Impairment Losses | (98,736) | (82,268) | | Net | 79,689 | 83,956 | | Aging Analysis (Net of Impairment Losses) | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Within One Year | 39,192 | 61,946 | | One to Two Years | 26,890 | 17,975 | | Over Two Years | 13,607 | 4,035 | - An additional provision of RMB 16,468 thousand was made for total trade receivables in H1 2025[45] 15. Amounts Due from/to Fellow Subsidiaries/Associates, Associates and Non-controlling Interests This note details the nature, aging analysis, and impairment provisions for amounts due from/to related parties, showing an increase in amounts due from associates - Amounts due from/to fellow subsidiaries/associates, associates, and non-controlling interests are trade-related, unsecured, and interest-free[46] | Amounts Due from Associates | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Total Amounts Due from Associates | 170,910 | 63,802 | | Less: Impairment Losses | (130,077) | (42,363) | | Net | 40,833 | 21,439 | - An additional provision of RMB 7,093 thousand was made for amounts due from associates and non-controlling interests in H1 2025[48] 16. Financial Assets at Fair Value Through Profit or Loss This note discloses the Group's financial assets at fair value through profit or loss, primarily unlisted partnership investments, which have increased in fair value | Financial Asset Type | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Unlisted Partnership Investments | 5,555 | 5,407 | | Unlisted Investments | - | 1,016 | | Total | 5,555 | 6,423 | - Fair value changes of partnership investments are recognized in "Other income, losses and gains, net" in the consolidated statement of profit or loss and other comprehensive income[50] 17. Restricted Bank Balances, Bank Balances and Cash This note provides details on the Group's bank balances and cash, showing a decrease in both total and cash equivalents, with most balances denominated in RMB | Bank Balances | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Total Bank Balances and Cash | 45,337 | 66,550 | | Less: Restricted Bank Balances | (1,301) | (1,785) | | Cash and Cash Equivalents | 44,036 | 64,765 | - Approximately RMB 44.57 million of bank deposits are denominated in RMB, which is not freely convertible[51] 18. Trade Payables This note presents the composition and aging analysis of trade payables, primarily commissions to real estate agents and property management suppliers, with a slight decrease in total amount | Trade Payables | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Within One Year | 61,028 | 62,696 | | Over One Year | 10,032 | 11,770 | | Total | 71,060 | 74,466 | 19. Share Capital This note provides details of the Company's issued share capital, indicating that the number and amount of share capital remained unchanged at the reporting period end | Share Capital Information | Number | Amount (RMB thousand) | | :--- | :--- | :--- | | Ordinary Shares of HKD 0.01 each (Issued and Fully Paid) | 400,000,000 | 3,403 | 20. Commitments and Contingent Liabilities This note confirms the Group had no significant capital commitments or contingent liabilities at the reporting period end - As of June 30, 2025, the Group had no significant capital commitments[55] - As of June 30, 2025, the Group had no significant contingent liabilities[55] 21. Related Party Transactions This note lists various related party transactions, including revenue from real estate agency, property management, and non-owner value-added services, all conducted on mutually agreed terms | Transaction Type | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Property Management Services Revenue from Associates | 8,297 | - | | Property Management Services Revenue from Fellow Subsidiaries/Associates | - | 2,272 | | Non-owner Value-Added Services Revenue from Associates | 2,942 | - | | Short-term Lease Expenses Paid to Associates | 1,091 | - | | Short-term Lease Expenses Paid to Fellow Subsidiaries/Associates | - | 1,708 | - All related party transactions were conducted on mutually agreed terms[56] Management Discussion and Analysis Business Review Management reviewed the Group's H1 2025 business performance, emphasizing business structure optimization and resource focus on property management services, noting declines in both real estate agency and property management revenues - The Company continues to optimize its business structure, further focusing on the development of property management services and supporting community value-added services, shifting primary resources to the property management sector[57] - Total revenue for H1 2025 was approximately RMB 168.4 million, a decrease of approximately 9.5% from the prior year, primarily due to a decrease of approximately RMB 4.7 million in real estate agency services revenue and approximately RMB 12.9 million in property management services revenue[57] - Real estate agency services revenue decreased by 87.3% year-on-year, mainly due to the continued downturn in the real estate industry and the Company's strategic decision[58] - Professional property management services segment revenue decreased by 7.1% year-on-year, primarily due to a reduction in contracted and GFA under management[59] Integrated Real Estate Agency Services Segment - Real estate agency services revenue for H1 2025 was approximately RMB 0.7 million, a 87.3% decrease from RMB 5.4 million in the prior year[58] - The decrease in revenue was primarily due to the continued downturn in the real estate industry and the Company's strategic decision to shift its main resources to property management services[58] Professional Property Management Services Segment - The professional property management services segment recorded revenue of approximately RMB 167.7 million in H1 2025, a 7.1% decrease from the prior year[59] - The decrease in revenue was primarily due to a reduction in contracted area and GFA under management[59] - Property management services revenue was approximately RMB 147.5 million, a 3.4% year-on-year decrease[60] - Non-owner value-added services revenue was approximately RMB 4.9 million, a 38.9% year-on-year decrease, mainly affected by financing difficulties faced by real estate developers[61] - Community value-added services revenue was approximately RMB 15.4 million, a 23.1% year-on-year decrease, primarily due to reduced owner demand and a decrease in contracted/GFA under management[62] Industry Review and Outlook This section analyzes China's H1 2025 economy and real estate sector, noting market stabilization amid caution, and the property service industry's shift from scale to value creation, with future competitiveness relying on service depth, operational efficiency, and technology integration - In H1 2025, China's GDP achieved the government's target growth rate of approximately 5%, with the real estate market showing initial signs of stabilization through policy intervention[63] - The property services industry is transitioning from scale-driven to value creation and operational excellence, with competitive advantage increasingly dependent on technology empowerment and value-added service capabilities[63] - Future competitiveness will depend on deepening professional services, enhancing operational efficiency, and integrating technology applications[63] - The Company actively explores intelligent service models, promotes co-management and co-governance, innovates the "property + life services" model, and introduces trust-based property services[64] Financial Review This section provides a detailed financial review of the Group's performance, including key metrics such as revenue, costs, expenses, impairment losses, net profit margin, period loss, liquidity, and financial resources, analyzing their changes and causes - Revenue for H1 2025 was approximately RMB 168.4 million, a year-on-year decrease of approximately RMB 17.7 million, primarily due to reduced revenue from real estate agency services and property management services[65] - Service costs were approximately RMB 135.0 million, a year-on-year decrease of approximately 8.8%, mainly due to reduced business scale and proactive cost optimization measures[66] - Net impairment losses on financial assets were approximately RMB 23.6 million, a year-on-year decrease of approximately 28.2%, primarily due to poor collection of trade receivables and amounts due from associates[68] - Loss for the period was approximately RMB 6.5 million, a year-on-year decrease of 47.0%, with the net profit margin narrowing to -3.9%[69][70] - As of June 30, 2025, net current liabilities were approximately RMB 36.2 million, and total bank balances and cash were approximately RMB 45.3 million, indicating ongoing liquidity challenges[72][73] - The capital gearing ratio (total liabilities divided by total assets) was 78% as of June 30, 2025, slightly higher than 77% as of December 31, 2024[78] - As of June 30, 2025, the Group had 1,478 employees, a decrease of 151 from the prior year, primarily due to reduced business demand[79] Disclosure of Interests Directors' and Chief Executive's Interests and Short Positions in Shares, Underlying Shares and Debentures This section discloses the interests of the Company's directors and chief executives in the Company's shares and confirms their compliance with the Model Code for Securities Transactions by Directors - Mr. Fang Ming and Ms. Xie Lihua beneficially own 225,948,000 shares through controlled corporations and legal/beneficial ownership, representing a 56.49% shareholding[81] - Mr. Han Shuguang beneficially owns 4,500,000 shares through a controlled corporation, representing a 1.125% shareholding[81] - All Directors confirm compliance with the Model Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix C3 of the Listing Rules for the six months ended June 30, 2025[80] Substantial Shareholders' and Other Persons' Interests and Short Positions in Shares and Underlying Shares and Debentures This section lists the interests of substantial shareholders and other persons in the Company's shares, noting that multiple parties are deemed to jointly own 56.49% of the interests due to acting in concert agreements | Name/Entity | Nature of Interest | Number of Shares Held | Approximate Percentage of Shareholding | | :--- | :--- | :--- | :--- | | Ms. He Kangkang | Interest of Spouse | 225,948,000 | 56.49% | | Mr. Zheng Muming | Interest of Spouse | 225,948,000 | 56.49% | | Mr. Huang Peng | Interest in Controlled Corporation, Interest of Spouse and Legal & Beneficial Owner | 225,948,000 | 56.49% | | Ms. Zheng Hui | Interest of Spouse and Legal & Beneficial Owner | 225,948,000 | 56.49% | | Mansion Green | Legal & Beneficial Owner | 97,200,000 | 24.3% | | Aspiring Vision | Legal & Beneficial Owner | 64,800,000 | 16.2% | | Huiyu Investment | Legal & Beneficial Owner | 60,000,000 | 15% | - Multiple substantial shareholders are deemed to have interests in the total number of shares held by Mr. Fang, Mr. Huang, and Ms. Xie due to an acting in concert agreement[83][84] Other Information Directors' Right to Acquire Shares or Debentures This section confirms that neither the Company nor its subsidiaries entered into any arrangements during the reporting period enabling directors and chief executives to benefit from acquiring the Company's shares or debentures - For the six months ended June 30, 2025, neither the Company nor any of its subsidiaries or associated corporations entered into any arrangements enabling the Company's directors and chief executives to benefit from acquiring shares or relevant shares or debentures of the Company or its associated corporations[86] Changes in Directors' Information This section discloses changes in directors' information, specifically Mr. Leung Wai Hung's resignation as an independent non-executive director of Wing Lee Engineering Holdings Limited - Mr. Leung Wai Hung resigned as an independent non-executive director of Wing Lee Engineering Holdings Limited (stock code: 9639) on July 14, 2025[87] Purchase, Sale or Redemption of the Company's Listed Securities This section confirms that neither the Company nor its subsidiaries purchased, sold, or redeemed any listed securities during the reporting period, and the Company held no treasury shares - For the six months ended June 30, 2025, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities[88] - As of June 30, 2025, the Company held no treasury shares[88] Share Option Scheme This section outlines the Company's share option scheme status, confirming no options were granted, exercised, or lapsed during the reporting period, with 40,000,000 options still available for grant - The Company adopted a share option scheme on October 23, 2017[89] - As of June 30, 2025, no share options had been granted, agreed, exercised, cancelled, or lapsed under the scheme, and no outstanding share options existed[89] - As of the date of this interim report, a total of 40,000,000 shares, representing 10% of the Company's issued share capital on the same date, remained available for issue under the scheme[89] Compliance with Corporate Governance Code This section confirms the Company's compliance with all code provisions of the Corporate Governance Code set out in Appendix C1 of the Listing Rules during the reporting period - The Board has reviewed the Group's corporate governance practices and is satisfied that the Company complied with all code provisions set out in Appendix C1 of the Listing Rules for the six months ended June 30, 2025[90] Directors' Interests in Competing Business and Conflicts of Interest This section confirms that during the reporting period, no directors, controlling shareholders, or their close associates engaged in any business competing with the Group, nor were there any other conflicts of interest - The Directors are unaware of any business or interest of the Company's Directors or controlling shareholders or their respective close associates that directly or indirectly competes or may compete with the Group's business, or any other conflicts of interest with the Group for the six months ended June 30, 2025[91][92] Pledges of Assets This section discloses that a subsidiary previously secured a bank loan using trade receivables and approximately 68.9% equity in Guangzhou Fangyuan Modern Life Services as collateral; the loan is repaid, but the equity pledge release is pending - A subsidiary of the Company previously obtained a bank loan secured by certain trade receivables of Guangzhou Fangyuan Modern Life Services Co., Ltd. up to approximately RMB 28.152 million and a pledge of approximately 68.9% of its equity interest[93] - The bank loan was fully repaid before its due date, but the relevant procedures for releasing the equity pledge had not been completed as of the date of this interim report[93] Holdings of Material Investments, Major Acquisitions and Disposals This section confirms the Group made no material acquisitions or disposals of subsidiaries, associates, or joint ventures during the reporting period - For the six months ended June 30, 2025, the Group had no material acquisitions or disposals of subsidiaries, associates, or joint ventures[94] Progress of Past Connected Transactions This section reports on the progress of connected transactions involving 23 property exchange agreements, noting that properties remain undelivered as of the interim report date, and the Company will consider legal action to recover outstanding receivables - Guangzhou Fangyuan Life Services Co., Ltd. entered into an exchange agreement with Heshan Fudu Property Development Co., Ltd. involving the transfer of 23 properties to offset outstanding receivables of approximately RMB 16.0 million[95] - As of the date of this interim report, the delivery of these 23 properties had not yet been completed[95] - Should Heshan Fudu fail to fulfill its obligations by the final deadline (November 28, 2025), the Company will consider taking necessary legal measures to recover the outstanding receivables[95] Outstanding Earnest Money Balance This section details the background and recovery progress of outstanding earnest money, including civil litigation for approximately RMB 14.18 million against Fangyuan Huijin, resulting in favorable judgments and enforcement orders, with ongoing efforts to recover the remaining balance - The outstanding earnest money balance accumulated due to industry practice in the real estate agency services business, involving upfront earnest money payments to property developers for exclusive agency rights[96] - The Company initiated civil legal proceedings for approximately RMB 14.18 million in outstanding earnest money owed by Fangyuan Huijin, obtaining favorable judgments and enforcement orders on October 23, 2024, and March 20, 2025, respectively[97] - The court will take enforcement measures against Fangyuan Huijin to fulfill its obligations as stipulated in the judgment, and the Company is still communicating and negotiating with relevant member companies of Fangyuan Group to recover the remaining balance[97][98] Interim Dividend This section confirms the Board does not recommend paying an interim dividend for the six months ended June 30, 2025 - The Board does not recommend paying an interim dividend for the six months ended June 30, 2025[99] Review by Audit Committee This section states the Audit Committee has reviewed the Group's unaudited interim results for H1 2025, deeming them compliant with applicable accounting standards and Listing Rules - The Audit Committee has reviewed the Group's unaudited interim results for the six months ended June 30, 2025[100] - The Audit Committee believes that the unaudited interim results comply with applicable accounting standards and the Listing Rules, and adequate disclosures have been made[100] Acknowledgement This section expresses the Board's sincere gratitude to shareholders, business partners, clients, and all directors, management, and staff for their support, hard work, and dedication during the reporting period - The Board extends its sincere gratitude to shareholders, business partners, and clients for their continuous support to the Group[101] - The Board also expresses its appreciation to all Directors, management, and staff for their hard work and dedication during the period[101]