建业新生活(09983) - 2025 - 中期财报

CORPORATE INFORMATION This section provides an overview of the company's key corporate details, including its board of directors, committees, executive officers, registered offices, and shareholder information BOARD OF DIRECTORS The Board of Directors comprises executive directors Mr. Wang Jun (Chairman) and Mr. Guo Liyuan, and independent non-executive directors Mr. Liang Xiang, Ms. Luo Ying, and Ms. Xin Zhu - Mr. Wang Jun serves as Executive Director and Chairman[8] - Mr. Guo Liyuan was appointed Executive Director on April 30, 2025[8] - Ms. Dai Jiling resigned as Executive Director on April 30, 2025, and Mr. Shi Shushan resigned as Executive Director on February 1, 2025[8] BOARD COMMITTEES The Board has established Audit, Remuneration, and Nomination Committees, each composed of independent non-executive and executive directors to ensure effective corporate governance - The Audit Committee is chaired by Ms. Xin Zhu[8] - The Remuneration Committee is chaired by Ms. Luo Ying[8] - The Nomination Committee is chaired by Mr. Wang Jun[9] CHIEF EXECUTIVE OFFICER Mr. Wang Jun was appointed Chief Executive Officer on April 30, 2025, succeeding Ms. Dai Jiling, who resigned on the same day - Mr. Wang Jun was appointed Chief Executive Officer on April 30, 2025[10] - Ms. Dai Jiling resigned as Chief Executive Officer on April 30, 2025[10] COMPANY SECRETARY Mr. Tam Kok Ching serves as the Company Secretary - The Company Secretary is Mr. Tam Kok Ching[10] AUTHORISED REPRESENTATIVES Mr. Wang Jun and Mr. Tam Kok Ching are the authorized representatives of the company - The authorized representatives are Mr. Wang Jun and Mr. Tam Kok Ching[10] REGISTERED OFFICE The company's registered office is located in the Cayman Islands - The registered office is located at Cricket Square, Hutchins Drive, P.O. Box 2681, Grand Cayman, KY1–1111, Cayman Islands[12] PRINCIPAL PLACE OF BUSINESS IN THE PRC The company's principal place of business in the PRC is located in Zhengzhou, Henan Province - The principal place of business in the PRC is located at Room 411, 4th Floor, Building 2, Jianye Headquarters Port, No. 19 Dirun Road, Zhengdong New District, Zhengzhou, Henan Province[12] PRINCIPAL PLACE OF BUSINESS IN HONG KONG The company's principal place of business in Hong Kong is located in Harbour City, Canton Road, Tsim Sha Tsui, Kowloon - The principal place of business in Hong Kong is located at Units 1602–1605, 16th Floor, Tower 2, Gateway, Harbour City, 25 Canton Road, Tsim Sha Tsui, Kowloon, Hong Kong[13] PRINCIPAL SHARE REGISTRAR AND TRANSFER OFFICE Conyers Trust Company (Cayman) Limited serves as the principal share registrar and transfer office - The principal share registrar and transfer office is Conyers Trust Company (Cayman) Limited[14] HONG KONG BRANCH SHARE REGISTRAR AND TRANSFER OFFICE Hong Kong Central Share Registrar and Transfer Office Limited serves as the Hong Kong branch share registrar and transfer office - The Hong Kong branch share registrar and transfer office is Hong Kong Central Share Registrar and Transfer Office Limited[14] PRINCIPAL BANKERS The principal bankers include Bank of China (Hong Kong) Limited and Industrial and Commercial Bank of China (Asia) Limited - The principal bankers include Bank of China (Hong Kong) Limited and Industrial and Commercial Bank of China (Asia) Limited[14] LEGAL ADVISERS Legal advisers include Stevenson, Wong & Co. (Hong Kong Law) and Conyers Dill & Pearman (Cayman Islands Law) - The Hong Kong legal adviser is Stevenson, Wong & Co[15] - The Cayman Islands legal adviser is Conyers Dill & Pearman[15] INDEPENDENT AUDITOR The independent auditor is BDO Limited - The independent auditor is BDO Limited[15] WEBSITE OF THE COMPANY The company's official website is www.ccnewlife.com.cn - The company's website is www.ccnewlife.com.cn[15](index=15&type=chunk) SHAREHOLDERS' INFORMATION The company's shares are listed on the Main Board of The Stock Exchange of Hong Kong Limited, with 1,299,276,000 ordinary shares issued as of June 30, 2025, at HK$0.01 par value per share - The company's shares are listed on the Main Board of The Stock Exchange of Hong Kong Limited[16] - As of June 30, 2025, 1,299,276,000 shares were issued, with a par value of HK$0.01 per share[16] INVESTOR RELATIONS CONTACT The investor relations contact email address is ir@ccnewlife.com.cn - The investor relations contact email address is ir@ccnewlife.com.cn[16] STOCK CODE The company's stock code is 9983 - The stock code is 9983[16] CORPORATE PROFILE CCNL is the largest property management service provider in Central China, managing diverse properties across 18 cities in Henan and other provinces, serving over 2.8 million owners and residents - The company is the largest property management service provider in Central China by total GFA under management as of June 30, 2025, and by total revenue for the year ended June 30, 2025[19] - As of June 30, 2025, property management and value-added services covered all 18 prefecture-level cities in Henan Province and other provinces and cities in Central China, Hainan, and Xinjiang, serving over 2.8 million owners and residents in more than 1,000 properties[20] - The company has been ranked 11th among China's Top 100 Property Service Enterprises for five consecutive years since 2021[20] - The company's business lines include property management services, community value-added services, and value-added services to non-property owners[24] CHAIRMAN'S STATEMENT The Chairman's report highlights the group's financial performance for H1 2025, strategic focus on customer-centricity, service quality, and future outlook amidst a dynamic market environment - In H1 2025, the group's revenue was RMB 1,433.8 million, and net profit was RMB 112.2 million[28] - Excluding specific items, core net profit attributable to shareholders decreased by approximately 0.3% year-on-year to RMB 147.9 million[28] - The group adheres to a customer-centric service philosophy, promotes a service quality enhancement strategy, optimizes its business structure, and strengthens its core competitive advantages[33] PERFORMANCE REVIEW In H1 2025, the group achieved significant growth in basic property services, with property management revenue reaching RMB 1,154.3 million, while enhancing service quality through the "Renewal Action" - In H1 2025, property management revenue reached RMB 1,154.3 million, reflecting continuous investment in service quality improvement[34] - As of June 30, 2025, total contracted GFA reached 288.0 million sqm, and total GFA under management reached 200.1 million sqm, with 2.5 million sqm of new third-party expansion area added during the period[40] - The group received multiple brand awards, including "2025 China Top 100 Property Service Enterprises TOP 11"[45] Strong Property Management Revenue with Enhanced Quality and Efficiency in Basic Services In H1 2025, basic property management revenue significantly increased to RMB 1,154.3 million, driven by the "Renewal Action" which upgraded smart hardware, refined service standards, and branded service image - In H1 2025, property management revenue reached RMB 1,154.3 million[34] - The "Renewal Action" promotes intelligent upgrades of park hardware facilities, refinement of service standards, and branding of service image[36] Steady Advancement in Lifestyle Services through Demand-Driven Focus The group in H1 2025 accurately grasped market trends, adjusted its business layout, focused on high-potential niche markets, stabilized traditional operations, and actively explored innovative service models, achieving steady overall development - Accurately grasp market trends, focus on high-potential niche markets, and achieve efficient resource allocation and vertical development[38] - Stabilize traditional businesses such as space operations and community commerce, and actively explore innovative service models[42] Proactively Exploring Existing Market and Promoting Multi-business Deployment The group adheres to a high-quality development path, deepening its regional presence, prudently selecting investment and expansion projects, and actively exploring opportunities in the existing market - Adhere to a high-quality development path, deepen regional and vertical development strategies, and explore potential opportunities in the existing market[39] - As of June 30, 2025, GFA under management reached 200.1 million sqm, with 2.5 million sqm of new third-party expansion area added[40] Cultivating Cultural Empowerment and Elevating Brand Value In H1 2025, the group organized 4,750 community activities themed "This is My Home," engaging 398,402 residents, upgrading community governance, and earning multiple industry brand awards - Organized 4,750 community activities themed "This is My Home," with 398,402 residents participating[41] - Awarded "2025 China Top 100 Property Service Enterprises TOP 11" and "2025 China Listed Property Service Investment Value Excellent Enterprise" and other series of awards[45] OUTLOOK The group will align with policy requirements, deepen service innovation, refine service standards, optimize business layout, expand diversified partnerships, strengthen brand building, and upgrade its management system for sustainable development - Closely align with policy requirements, deepen service innovation, refine service standards, and continue the "Renewal Action"[47] - Actively respond to national urban renewal and old community renovation policies, focusing on high-potential niche markets such as community elderly care services[48] - Adhere to a high-quality development path, expand diversified cooperation models, accelerate market expansion, and strengthen brand building[52][53] - Continuously upgrade the management system, adjust departmental settings and responsibilities, and strengthen talent cultivation and team building[56] Embracing Policy Direction and Deepening Service Transformation The group will align with policy requirements, deepen service innovation, refine service standards, and continue the "Renewal Action" to build a distinctive "Good Service" system that preserves and enhances property asset value - Closely align with policy requirements, deepen service innovation, refine service standards, and continue the Renewal Action[47] - Combine deep understanding of customer needs to create a distinctive "Good Service" system that preserves and enhances the value of property assets[49] Deepening Market Insights and Optimising Business Presence Facing a complex property management market, the group will deeply analyze market demand changes, optimize its business layout, actively respond to urban renewal policies, and focus on high-potential segments like community elderly care services - Deeply analyze changes in market demand and optimize business layout[48] - Actively respond to national urban renewal and old community renovation policies, fully leveraging professional advantages to participate[50] - Focus on high-potential niche markets, such as community elderly care services, to meet the growing and diverse service needs of owners[50] Expanding Diversified Partnerships and Accelerating Market Development To achieve sustainable growth, the group will pursue high-quality development, actively expand diversified cooperation models, accelerate market expansion, deepen regional penetration, and establish a robust project evaluation system - Adhere to a high-quality development path, actively expand diversified cooperation models, and accelerate market expansion[52] - Firmly advance the regional deep cultivation strategy, increase service density, reduce operating costs, and build regional competitive advantages[54] - In investment and expansion, focus on project quality and efficiency, and establish a comprehensive project evaluation system[54] Enhancing Brand Identity and Communicating Brand Warmth In the second half of the year, the group will further strengthen brand building, intensify online and offline promotion, widely disseminate its brand philosophy, and organize themed community cultural activities to enhance owner identification and belonging - In the second half of the year, brand building will be further strengthened to comprehensively enhance brand influence[53] - Increase online and offline promotion, and enhance owners' sense of identity and belonging to the brand through various themed community cultural activities[55] - Actively participate in industry standard setting and public welfare activities, establish an industry benchmark image, and demonstrate corporate social responsibility[55] Enhancing Organisational Structure and Talent Excellence The group will continuously upgrade its management system, optimize organizational structure, adjust departmental settings and responsibilities, reduce management layers, and develop a comprehensive talent development plan to foster an excellent team - Continuously upgrade the management system, optimize organizational structure, adjust departmental settings and responsibilities, reduce management layers, and improve decision-making efficiency and execution[56][58] - Formulate a comprehensive talent development plan, increase internal training and external recruitment, and enhance employees' business capabilities and overall quality[58] FINANCIAL HIGHLIGHTS In H1 2025, Joyful Ascent New Life's revenue decreased by 3.3% year-on-year to RMB 1,433.8 million, but net profit increased by 2.8% to RMB 112.2 million, with gross profit margin declining by 2.0 percentage points to 20.8% 2025 H1 Key Financial Data (Consolidated Statement) | Indicator | 2025 (RMB thousand) | 2024 (RMB thousand) | Change | | :--- | :--- | :--- | :--- | | Income Statement: | | | | | Revenue | 1,433,780 | 1,482,932 | -3.3% | | Gross Profit | 298,669 | 337,849 | -11.6% | | Gross Profit Margin | 20.8% | 22.8% | -2.0 percentage points | | Net Profit | 112,239 | 109,179 | 2.8% | | Net Profit Margin | 7.8% | 7.4% | 0.4 percentage points | | Profit attributable to owners of the Company | 106,166 | 103,394 | 2.7% | | Core net profit attributable to owners of the Company | 147,903 | 148,398 | -0.3% | | Basic earnings per share (RMB) | 0.08 | 0.08 | 2.2% | | Diluted earnings per share (RMB) | 0.08 | 0.08 | 1.3% | | Interim dividend per share (HK cents) | 3.3 | 10.59 | -68.8% | | Balance Sheet (Period-end): | | | | | Total Cash | 833,723 | 1,198,019 | -30.4% | | Total Assets | 4,451,900 | 4,726,961 | -5.8% | | Total Liabilities | 2,437,338 | 2,737,588 | -11.0% | | Total Equity | 2,014,562 | 1,989,373 | 1.3% | | Equity attributable to owners of the Company | 1,887,482 | 1,863,154 | 1.3% | | Current Ratio | 1.6 times | 1.6 times | 0.0% | | Net asset value per share (RMB) | 1.55 | 1.53 | 1.3% | MANAGEMENT DISCUSSION AND ANALYSIS This section provides a detailed analysis of the group's operational and financial performance for H1 2025, covering revenue streams, cost structures, financial resources, and future strategies - Revenue for the period was RMB 1,433.8 million, a 3.3% decrease compared to H1 2024[67] - Net profit for the period was RMB 112.2 million, a 2.8% increase compared to H1 2024[67] - Property management service revenue increased by 1.8%, while community value-added service revenue and value-added service revenue to non-property owners decreased by 14.6% and 48.8% respectively[92][99][101] - Gross profit margin decreased from approximately 22.8% in H1 2024 to approximately 20.8%, mainly due to a decrease in gross profit margins for property management services and community value-added services[109] - Net impairment losses on financial assets increased by RMB 22.5 million to RMB 71.6 million, primarily due to the downturn in the domestic real estate sector[118] BUSINESS REVIEW The group's revenue for H1 2025 decreased by 3.3% to RMB 1,433.8 million, while net profit increased by 2.8% to RMB 112.2 million, with property management services showing growth and value-added services declining - Revenue for the period was RMB 1,433.8 million, a 3.3% decrease compared to H1 2024[67] - Net profit for the period was RMB 112.2 million, a 2.8% increase compared to H1 2024[67] - As of June 30, 2025, GFA under management increased by 1.7% compared to 2024, reaching 200.1 million sqm[70] - Community value-added service revenue decreased by 14.6% year-on-year, and value-added service revenue to non-property owners decreased by 48.8% year-on-year, mainly affected by the continuous downturn in the real estate market[99][101] Property management services The group's property management service revenue reached RMB 1,154.3 million during the period, an increase of 1.8% year-on-year, primarily due to the growth in total GFA under management - Property management service revenue for the period reached RMB 1,154.3 million, an increase of 1.8% compared to H1 2024[92] - As of June 30, 2025, total GFA under management was 200.1 million sqm, an increase of 1.7% compared to December 31, 2024[95] GFA under Management Breakdown (as of June 30, 2025) | Source | GFA ('000 sqm) | Percentage (%) | | :--- | :--- | :--- | | Central China Group and its associates or joint ventures | 79,114 | 39.5 | | Third-party property developers | 121,023 | 60.5 | | Total | 200,137 | 100.0 | Community value-added services Community value-added service revenue for the period was RMB 251.2 million, a 14.6% year-on-year decrease, mainly due to the downturn in the domestic real estate market and reduced consumer confidence - Community value-added service revenue for the period was RMB 251.2 million, a 14.6% decrease compared to the same period last year[99] - The decrease was mainly due to the continuous downturn in the domestic real estate market, leading to a decrease in the group's smart community solutions revenue[100] - Reduced consumer confidence in the domestic market led to a decrease in the group's park sales service revenue[100] Value-added services to non-property owners Value-added services to non-property owners generated RMB 28.2 million in revenue, a significant 48.8% year-on-year decrease, primarily due to the group's proactive scaling back of these services amidst real estate market adjustments - Value-added service revenue to non-property owners for the period was RMB 28.2 million, a 48.8% decrease compared to the same period last year[101] - The decrease was mainly due to the continuous adjustments in the real estate industry, leading the group to proactively adjust its value-added businesses and scale back value-added services to non-property owners[104] - Revenue from pre-delivery services and on-site sales services decreased by RMB 18.6 million[104] PROSPECTS AND STRATEGIES The group aims to extract value from the existing market, enhance customer loyalty, and achieve high-quality sustainable development by innovating lifestyle services, maintaining consistent basic service quality, strengthening community culture, and focusing on efficiency - Entering H2 2025, the industry competition intensified, with value extraction from existing markets and enhancing customer loyalty becoming core challenges[75] - Lifestyle services will seek innovation while maintaining stability, optimizing existing service structures, increasing penetration and repurchase rates, and prudently introducing new services[76] - Basic services will maintain consistent standards and stable quality, and build a multi-tiered service standard and response system[81] - Strengthen community culture building, systematically and regularly organize online and offline community activities, and cultivate community cultural brands[82] - Investment and expansion businesses will be prudently evaluated, and existing projects (especially loss-making ones) will undergo in-depth diagnosis and governance to improve efficiency and reduce costs[83][86] Seeking Innovation in Lifestyle Services While Maintaining Stability, and Building a Resilient Ecosystem The group will optimize existing lifestyle service structures, enhance penetration and repurchase rates, accurately assess owner needs, and prudently introduce new services with long-term potential, while strengthening supply chain resilience - Focus on optimizing the existing service structure to increase penetration and repurchase rates[76] - Accurately assess owner needs, prudently introduce new services with long-term potential, and ensure the sustainability and profitability of innovative businesses[79] - Continuously improve online and offline service scenarios covering the entire owner's life cycle, use data insights for precise matching, and continuously strengthen supply chain resilience[79] Maintaining Consistent Quality in Basic Services and Deepening Service Tiering The group will ensure consistent standards and stable quality in basic services, and based on project positioning, owner needs, and willingness to pay, scientifically build multi-tiered service standards and response systems - Ensure consistent standards and stable quality in basic services, and continuously invest to guarantee high-standard execution of core modules[81] - Scientifically build multi-tiered service standards and response systems based on project positioning, owner needs, and willingness to pay[84] - Consolidate the achievements of the "Quality Improvement Year" to normalize and refine quality control mechanisms[84] Strengthening Community Culture Construction and Fostering Neighbourhood Value The group will systematically and regularly plan and organize online and offline community activities, fostering a warm, vibrant, and mutually supportive community atmosphere, and actively build interactive communication platforms - Systematically and regularly plan and organize online and offline community activities to create a warm, vibrant, and mutually supportive community atmosphere[82] - Cultivate distinctive community cultural brands or event IPs by combining regional characteristics and project features[85] - Actively build online and offline interactive communication platforms to promote neighborly exchange and emotional connection, fostering community spirit[85] Continuing the Path of High-Quality Development and Focusing on Effectiveness The group will prudently evaluate investment and expansion projects for their alignment with existing layout, service capabilities, and cost structure, ensuring a healthy profit model, and optimize operations for existing projects - Prudently evaluate investment and expansion projects for their alignment with existing layout, service capabilities, and cost structure to ensure a healthy profit model[83] - For existing projects, especially loss-making ones, conduct in-depth diagnosis and governance, improve efficiency, increase revenue, and reduce expenditure to continuously optimize operating conditions[86] FINANCIAL REVIEW This section provides a detailed review of the group's financial performance for H1 2025, including revenue, gross profit, operating expenses, impairment losses, and net profit - Revenue for the period was RMB 1,433.8 million, a 3.3% decrease compared to H1 2024[87] - Gross profit was RMB 298.7 million, an 11.6% decrease compared to H1 2024; gross profit margin decreased to approximately 20.8%[109] - Selling and marketing expenses decreased by 33.4% to RMB 6.4 million, and administrative expenses decreased by 25.4% to RMB 72.9 million[116][117] - Net impairment losses on financial assets were RMB 71.6 million, an increase of RMB 22.5 million compared to H1 2024[118] - Net profit for the period was RMB 112.2 million, a 2.8% increase compared to H1 2024; income tax expense decreased by 43.0%[126][129] Revenue In H1 2025, the group's total revenue was RMB 1,433.8 million, a 3.3% year-on-year decrease, primarily derived from property management services, community value-added services, and non-property owner value-added services - Revenue for the period was RMB 1,433.8 million, a 3.3% decrease compared to H1 2024[87] Revenue Breakdown by Business Line (as of June 30, 2025) | Business Line | 2025 Revenue (RMB thousand) | 2025 Share (%) | 2024 Revenue (RMB thousand) | 2024 Share (%) | | :--- | :--- | :--- | :--- | :--- | | Property management services | 1,154,310 | 80.5 | 1,133,606 | 76.4 | | Community value-added services | 251,231 | 17.5 | 294,163 | 19.8 | | Value-added services to non-property owners | 28,239 | 2.0 | 55,163 | 3.8 | | Total | 1,433,780 | 100.0 | 1,482,932 | 100.0 | PROPERTY MANAGEMENT SERVICES Property management service revenue reached RMB 1,154.3 million, growing by 1.8% year-on-year, driven by an increase in total GFA under management, with an average residential property management fee rate of RMB 1.75/sqm/month - Property management service revenue for the period reached RMB 1,154.3 million, an increase of 1.8% compared to H1 2024[92] - As of June 30, 2025, total GFA under management was 200.1 million sqm, an increase of 1.7% compared to December 31, 2024, mainly due to an increase in third-party projects[95] - The average property management fee rate for residential property projects was approximately RMB 1.75/sqm/month[95] COMMUNITY VALUE-ADDED SERVICES Community value-added service revenue decreased by 14.6% to RMB 251.2 million, primarily due to the ongoing downturn in the domestic real estate market affecting smart community solutions and reduced consumer confidence impacting park sales services - Community value-added service revenue for the period was RMB 251.2 million, a 14.6% decrease compared to the same period last year[99] - The decrease was mainly due to the continuous downturn in the domestic real estate market, leading to a decrease in the group's smart community solutions revenue[100] - Reduced consumer confidence in the domestic market led to a decrease in the group's park sales service revenue[100] VALUE-ADDED SERVICES TO NON-PROPERTY OWNERS Value-added services to non-property owners saw a substantial 48.8% decrease in revenue to RMB 28.2 million, mainly attributed to the group's strategic reduction in business scale due to the continuous adjustments in the real estate industry - Value-added service revenue to non-property owners for the period was RMB 28.2 million, a 48.8% decrease compared to the same period last year[101] - The decrease was mainly due to the continuous adjustments in the real estate industry, leading the group to proactively adjust its value-added businesses and scale back value-added services to non-property owners[104] - Revenue from pre-delivery services and on-site sales services decreased by RMB 18.6 million[104] COST OF SALES Cost of sales for the period was RMB 1,135.1 million, a 0.9% year-on-year decrease, primarily due to a reduction in certain services provided by the group - Cost of sales for the period was RMB 1,135.1 million, a 0.9% decrease compared to H1 2024[103] - The decrease was mainly due to a reduction in some of the group's services[105] - Cost of sales primarily includes employee benefit expenses, subcontracting costs, landscaping and cleaning fees, and cost of goods sold[102] GROSS PROFIT AND GROSS PROFIT MARGIN The group's gross profit for the period was RMB 298.7 million, an 11.6% year-on-year decrease, with the gross profit margin declining to 20.8% due to lower margins in property management and community value-added services - Gross profit for the period was RMB 298.7 million, an 11.6% decrease compared to H1 2024[109] - Gross profit margin decreased from approximately 22.8% in H1 2024 to approximately 20.8% in the current period, mainly due to a decrease in gross profit margins for property management services and community value-added services[109] Gross Profit and Gross Profit Margin by Business Line (as of June 30, 2025) | Business Line | 2025 Gross Profit (RMB thousand) | 2025 Gross Profit Margin (%) | 2024 Gross Profit (RMB thousand) | 2024 Gross Profit Margin (%) | | :--- | :--- | :--- | :--- | :--- | | Property management services | 236,663 | 20.5 | 249,725 | 22.0 | | Community value-added services | 56,682 | 22.6 | 76,776 | 26.1 | | Value-added services to non-property owners | 5,324 | 18.9 | 11,348 | 20.6 | | Total | 298,669 | 20.8 | 337,849 | 22.8 | SELLING AND MARKETING EXPENSES Selling and marketing expenses for the period decreased by approximately 33.4% to RMB 6.4 million, representing about 0.4% of revenue, primarily due to strict control over sales expenditures - Selling and marketing expenses for the period were RMB 6.4 million, a decrease of approximately 33.4% compared to the same period last year[116] - This decrease was mainly due to the company's strict control over various sales expenses[119] ADMINISTRATIVE EXPENSES Administrative expenses for the period decreased by 25.4% to RMB 72.9 million, representing about 5.1% of revenue, as a result of the group's measures to control administrative costs - Administrative expenses for the period were RMB 72.9 million, a 25.4% decrease compared to H1 2024[117] - This accounted for approximately 5.1% of the group's revenue, a decrease of 1.5 percentage points compared to H1 2024[120] - The decrease was mainly due to the group's various measures to control administrative expenses, thereby reducing costs[120] NET IMPAIRMENT LOSSES ON FINANCIAL ASSETS Net impairment losses on financial assets increased by RMB 22.5 million to RMB 71.6 million, primarily due to increased credit risk on receivables amidst the downturn in the domestic real estate sector - Net impairment losses on financial assets for the period were RMB 71.6 million, an increase of RMB 22.5 million compared to H1 2024[118] - This was mainly due to the downturn in the domestic real estate sector, leading to an increase in credit risk on receivables[121] OTHER INCOME Other income for the period was RMB 2.1 million, a 34.5% year-on-year decrease, mainly attributable to reduced interest income from third-party loans - Other income for the period was RMB 2.1 million, a 34.5% decrease compared to H1 2024[123] - This was mainly due to a decrease in interest income from third-party loans obtained during the period[127] OTHER GAINS/(LOSSES) — NET Net other gains for the period amounted to RMB 3.7 million, a positive turnaround from a net loss of RMB 3.6 million in H1 2024, primarily due to gains from the disposal of subsidiaries - Net other gains for the period were RMB 3.7 million, compared to a net loss of RMB 3.6 million in the same period last year[124] - This was mainly due to gains from the disposal of subsidiaries during the period[128] INCOME TAX EXPENSES Income tax expense for the period decreased by 43.0% to RMB 40.6 million, with the effective tax rate falling to 26.6% due to increased withholding tax provisions in the prior period - Income tax expense for the period was RMB 40.6 million, a 43.0% decrease compared to the same period last year[125] - The income tax rate for the period was 26.6% (H1 2024: 39.5%), with the decrease mainly due to increased withholding tax provisions for dividends distributed by the group's domestic companies to overseas companies in H1 2024[129] PROFITS The group's net profit for the period was RMB 112.2 million, with a net profit margin of 7.8%, and core net profit attributable to shareholders remained largely stable at RMB 147.9 million - Net profit for the period was RMB 112.2 million, with a net profit margin of 7.8%[126] - Profit attributable to owners of the Company was RMB 106.2 million[130] - Core net profit attributable to owners of the Company was approximately RMB 147.9 million, largely stable compared to H1 2024[130] - Basic earnings per share were RMB 0.08[130] FINANCIAL RESOURCES MANAGEMENT AND CAPITAL STRUCTURE As of June 30, 2025, the group's cash and cash equivalents decreased, bank borrowings remained stable, and the capital-to-debt ratio was maintained, with an interim dividend declared - As of June 30, 2025, the group's cash and cash equivalents were approximately RMB 831.6 million (December 31, 2024: approximately RMB 1,190.1 million)[131] - As of June 30, 2025, the group had total bank borrowings of RMB 52.0 million, consistent with the end of 2024[131] - As of June 30, 2025, the capital-to-debt ratio was 2.6%, consistent with December 31, 2024[132] - The Board has declared an interim dividend totaling approximately RMB 39.4 million to shareholders[131] TRADE AND OTHER RECEIVABLES AND PREPAYMENTS As of June 30, 2025, total trade and other receivables and prepayments increased by 3.6% to RMB 2,955.3 million, primarily due to an increase in receivables from property owners - As of June 30, 2025, trade and other receivables and prepayments were RMB 2,955.3 million, an increase of 3.6% compared to December 31, 2024[133] - The increase was mainly due to an increase in amounts receivable from property owners as GFA under management continuously increased[136] TRADE AND OTHER PAYABLES As of June 30, 2025, total trade and other payables remained largely stable at RMB 1,304.0 million compared to the end of 2024 - As of June 30, 2025, trade and other payables amounted to RMB 1,304.0 million, largely stable compared to December 31, 2024[134][137] BORROWINGS As of June 30, 2025, total borrowings remained stable at RMB 52.0 million, primarily consisting of bank borrowings incurred by Henan Tianming Property Management Co., Ltd. before its acquisition - As of June 30, 2025, borrowings were RMB 52.0 million, remaining stable compared to December 31, 2024[139] - This borrowing was a bank loan incurred by Henan Tianming Property Management Co., Ltd. before its acquisition by the group[141] PROCEEDS FROM THE LISTING The net proceeds from the listing were approximately RMB 2,088.7 million, with RMB 655.9 million remaining unutilized, and the board has revised the allocation plan to align with business strategies - The net proceeds from the listing were approximately RMB 2,088.7 million[140] - As of June 30, 2025, the group had utilized approximately RMB 1,432.8 million of the net proceeds, with an unutilized amount of approximately RMB 655.9 million[142] - The Board resolved to change the proposed use and corresponding timetable for the unutilized net proceeds in response to recent business environment changes and the company's business strategy adjustments[142] Revised Allocation and Use of Net Proceeds from Listing (as of June 30, 2025) | Main Category | Revised Allocated Net Proceeds (RMB thousand) | Actual Use as of June 30, 2025 (RMB thousand) | Unused Net Proceeds as of June 30, 2025 (RMB thousand) | Updated Timeline | | :--- | :--- | :--- | :--- | :--- | | 1. Strategic investments, collaborations, and acquisitions | 132,723 | 132,723 | – | – | | 2. Strengthening the Jianye+ platform to optimize user experience | 505,889 | 146,303 | 359,586 | Before end of December 2025 | | 3. Investing in advanced information technology systems | 346,575 | 192,022 | 154,553 | Before end of December 2025 | | 4. General working capital | 656,189 | 656,189 | – | Before end of December 2025 | | 5. Renovation and upgrading of old communities | 149,106 | 7,359 | 141,747 | Before end of December 2025 | | 6. Developing value-added service businesses | 298,212 | 298,212 | – | Before end of December 2025 | | Total | 2,088,694 | 1,432,808 | 655,886 | | PLEDGE OF ASSETS As of June 30, 2025, the group had not pledged any assets as security for loans - As of June 30, 2025, the group had not pledged any assets as security for loans[150][156] MAJOR ACQUISITION AND DISPOSALS The group did not undertake any major acquisitions or disposals of subsidiaries and associates during the period - The group did not undertake any major acquisitions or disposals of subsidiaries and associates during the period[151][157] MAJOR INVESTMENT As of June 30, 2025, the group did not hold any major investments - As of June 30, 2025, the group did not hold any major investments[152][157] CONTINGENT LIABILITIES AND CAPITAL COMMITMENT As of June 30, 2025, the group had no significant contingent liabilities or capital commitments - As of June 30, 2025, the group had no significant contingent liabilities or capital commitments[153][158] FOREIGN EXCHANGE RISK The group's primary operations are in China, with most revenues and expenses denominated in RMB, thus not exposed to significant foreign exchange fluctuation risks - The group's primary operations are in China, with most revenues and expenses denominated in RMB, and is not exposed to significant risks directly related to foreign exchange rate fluctuations[154][159] - Currently, no contracts have been entered into to hedge foreign exchange risk, but management will continue to monitor and take prudent measures to mitigate foreign exchange risk[159] EMPLOYEES AND REMUNERATION POLICY As of June 30, 2025, the group had 5,516 employees and continued to optimize its organizational structure, talent management, and remuneration policies to enhance overall efficiency and competitiveness - As of June 30, 2025, the group had 5,516 employees[161] - The company continues to promote the flattening of its organizational structure to enhance overall organizational efficiency and responsiveness[161] - In talent management, the group adheres to the principle of balancing professional ethics and work ability, strengthens internal training, encourages continuous education, and designs clear career progression paths[162][164] - The remuneration structure closely monitors external market dynamics, establishes an efficient performance appraisal mechanism, and closely links employee performance with remuneration[163][165] DISCLOSURE OF INTERESTS This section details the interests and short positions of directors, chief executives, and substantial shareholders in the company's shares, along with information on the 2023 Share Award Scheme - As of June 30, 2025, directors and chief executives held long positions in the company's shares and underlying shares[167][168] - The 2023 Share Award Scheme aims to align the interests of eligible participants with the group through share ownership, dividends, and share appreciation, and to encourage and retain their contributions to the group's long-term development and profitability[173][177] - As of June 30, 2025, substantial shareholder Mr. Hu Baosen and his controlled corporation, Joyful Ascent Limited, held a 65.27% equity interest in the company[218] DIRECTORS' AND CHIEF EXECUTIVES' INTERESTS AND SHORT POSITIONS IN SHARES, UNDERLYING SHARES OR DEBENTURES OF THE COMPANY OR ITS ASSOCIATED CORPORATIONS As of June 30, 2025, the company's directors and chief executives held long positions in the company's shares and underlying shares, including awards granted under the 2023 Share Award Scheme Long Positions of Directors or Chief Executives in the Company's Shares and Underlying Shares (as of June 30, 2025) | Name of Director or Chief Executive | Capacity and Nature of Interest | Number of Shares Held | Approximate Percentage of the Company's Issued Share Capital | | :--- | :--- | :--- | :--- | | Mr. Wang Jun | Interest in controlled corporation | 44,640,000 | 3.44% | | Mr. Wang Jun | Beneficial owner | 4,358,000 | 0.34% | | Mr. Guo Liyuan | Beneficial owner | 852,236 | 0.07% | | Mr. Shi Shushan | Beneficial owner | 900,000 | 0.07% | - These share interests include share awards of the company granted and vested to each director under the 2023 Share Award Scheme[178] SHARE AWARD SCHEME The 2023 Share Award Scheme aims to incentivize and retain eligible participants through share ownership, with a total share pool not exceeding 10% of issued shares and vesting subject to performance targets - The 2023 Share Award Scheme aims to align the interests of eligible participants with the group through share ownership, dividends, and share appreciation, and to encourage and retain their contributions to the group's long-term development and profitability[173][177] - The total number of shares that can be issued under the scheme will not exceed 127,872,600 shares, representing no more than 10% of the total issued shares as of the adoption date[180][183] - The vesting of awarded shares is subject to the fulfillment and/or waiver of all vesting conditions and performance targets stated in the award letter, including financial and management objectives[188][191] - During the period, 6,060,000 awarded shares vested, and a total expense of RMB 4.6 million was recognized for employee services under the 2023 Share Award Scheme[203][201] 2023 Share Award Scheme The 2023 Share Award Scheme was adopted and approved on August 7, 2023, with awarded shares to be settled through new share allotments or market purchases of existing shares - The 2023 Share Award Scheme was adopted and approved by shareholders on August 7, 2023[172] - Awarded shares will be settled by new shares allotted and issued by the company to the trustee or by existing shares acquired by the trustee in the market at prevailing market prices[176] Purpose The 2023 Share Award Scheme aims to align eligible participants' interests with the group through share ownership, dividends, and share appreciation, while encouraging and retaining their contributions to long-term development and profitability - Aims to align the interests of eligible participants with the group through share ownership, dividends and other distributions paid on shares, and/or share appreciation[173][177] - To encourage and retain eligible participants to contribute to the long-term development and profitability of the group[177] Participants Eligible participants include directors and employees who have contributed or will contribute to the group, excluding those who have resigned or whose employment contracts have been terminated, or those prohibited by local laws - Eligible participants include only directors and employees of the group who, in the absolute discretion of the Board, have contributed (and will continue to contribute) or will contribute to the group[179][182] - Excludes employees or directors who have tendered their resignation or whose employment contracts have been terminated, and individuals whose participation is prohibited or deemed inconvenient by local laws or regulations or the Board[182] Award of Shares and pool of awarded Shares The total number of shares that can be issued under the 2023 Share Award Scheme and other share schemes will not exceed 10% of the total issued shares as of the adoption date, capped at 127,872,600 shares - The total number of shares that may be issued for all awards under the 2023 Share Award Scheme and other share schemes of the company will not exceed 127,872,600 shares[180] - This represents no more than 10% of the total issued shares as of the adoption date of the 2023 Share Award Scheme[183] Maximum entitlement of each participant The number of shares awarded to a selected participant within any 12-month period, including options, shall not exceed 1% of the company's issued share capital at the scheme's adoption date, subject to Listing Rules - The maximum number of shares that may be awarded to a selected participant within any 12-month period ending on the award date, together with any shares granted under any share option scheme, shall not exceed 1% of the company's issued share capital as of the adoption date of the 2023 Share Award Scheme[181][184] - Any award of shares to any director, chief executive, or substantial shareholder of the company or any of their respective associates requires prior approval from the independent non-executive directors[186] - If the award of shares results in the total exceeding 0.1% of the issued shares, it requires approval from shareholders in a general meeting[186] Vesting of the awarded Shares and performance targets Awarded shares will vest according to the vesting schedule in the award letter, contingent upon meeting specified conditions and performance targets, which may include financial and management objectives - Each awarded share will vest to the selected participant according to the applicable vesting schedule set out in the award letter, provided that all vesting conditions contained therein have been met and/or waived[188][191] - Performance targets may include financial targets and management targets, which will be determined based on individual performance, group performance, and/or the performance of the business groups, business units, business lines, functional departments, projects, and/or geographical regions managed by the selected participant[189][191] - The vesting date for any award shall not be less than 12 months from the award date, except for employees, where it may be less than 12 months under specific circumstances[193][194] Purchase price of awarded Shares The purchase price of awarded shares, if any, will be determined by the Board based on factors such as the prevailing closing price, award purpose, and participant characteristics, balancing incentives with shareholder interests - The purchase price (if any) of the awarded shares will be determined by the Board from time to time based on considerations such as the prevailing closing price of the shares, the purpose of the award, and the characteristics and profile of the selected participant[195][199] - This discretion provides the Board with flexibility to stipulate a purchase price for awarded shares when necessary, while balancing the purpose of the award and the interests of shareholders[199] Remaining life The 2023 Share Award Scheme is valid for ten years from its adoption date of August 7, 2023, with approximately 8 years remaining as of the interim report date - The 2023 Share Award Scheme will be valid and effective for a period of ten years from its adoption date, which was August 7, 2023[196][200] - As of the date of this interim report, the remaining life of the 2023 Share Award Scheme is approximately 8 years[200] Movements of awarded Shares On May 29, 2023, the Board resolved to award 21,800,000 shares to 16 employee participants; during the period, 6,060,000 shares vested, 1,120,000 lapsed, and RMB 4.6 million in expenses were recognized - On May 29, 2023, the Board resolved to award a total of 21,800,000 awarded shares to a total of 16 employee participants (including 4 directors) free of charge[197][201] - During the period, 6,060,000 shares vested, and 1,120,000 shares lapsed[203][215] - For the six months ended June 30, 2025, a total expense of RMB 4.6 million was recognized for employee services under the 2023 Share Award Scheme[198][201] Movements of 2023 Awarded Shares During the Period (as of June 30, 2025) | Selected Participant | Unvested as of January 1, 2025 | Granted During the Period | Vested During the Period | Lapsed/Cancelled During the Period | Unvested as of June 30, 2025 | | :--- | :--- | :--- | :--- | :--- | :--- | | Directors | 7,720,000 | – | (3,480,000) | – | 4,240,000 | | Other employee participants | 8,440,000 | – | (2,580,000) | (1,120,000) | 4,740,000 | | Total | 16,160,000 | – | (6,060,000) | (1,120,000) | 8,980,000 | SUBSTANTIAL SHAREHOLDERS' INTERESTS IN THE SHARE CAPITAL OF THE COMPANY As of June 30, 2025, Mr. Hu Baosen and his controlled corporation, Joyful Ascent Limited, held 65.27% of the company's issued share capital, with other substantial shareholders also disclosed Long Positions of Substantial Shareholders in the Company's Shares (as of June 30, 2025) | Name of Shareholder | Capacity and Nature of Interest | Number of Shares Held | Approximate Percentage of the Company's Issued Share Capital | | :--- | :--- | :--- | :--- | | Mr. Hu Baosen | Interest in controlled corporation | 848,092,944 | 65.27% | | Joyful Ascent Limited | Beneficial owner | 848,092,944 | 65.27% | | Ms. Li Lin | Spouse's interest | 848,092,944 | 65.27% | | Gaoling Fund, L.P. | Beneficial owner | 84,857,000 | 6.53% | | Hillhouse Capital Advisors, Ltd. | Interest in controlled corporation | 84,867,000 | 6.53% | - Mr. Hu Baosen holds the entire issued share capital of Joyful Ascent Limited and is deemed to have an interest in the shares held by it[223] - Ms. Li Lin, being the spouse of Mr. Hu Baosen, is deemed to have an interest in the same number of shares in which Mr. Hu Baosen has an interest[223] CORPORATE GOVERNANCE AND OTHER INFORMATION This section outlines the company's corporate governance practices, compliance with the Model Code, share repurchases, changes in director information, and interim dividend declaration - The company has complied with all code provisions and mandatory disclosure requirements of the Corporate Governance Code, except for the deviation where the roles of Chairman and Chief Executive Officer are combined[225] - The Board believes that combining the roles of Chairman and Chief Executive Officer helps ensure consistent leadership within the group and maximizes the effectiveness and efficiency of overall planning and strategy execution[226][228] - The company confirmed that all directors have complied with the Model Code for Securities Transactions by Directors of Listed Issuers during the period[229][231] - For the six months ended June 30, 2025, the company repurchased a total of 138,000 shares on the Stock Exchange[230][232] - The Board has resolved to recommend the declaration and payment of an interim dividend of HK$0.033 per share for the six months ended June 30, 2025[242][245] CORPORATE GOVERNANCE PRACTICES The company generally complies with the Corporate Governance Code, with a deviation where the Chairman and CEO roles are combined, which the board believes enhances leadership consistency and efficiency - The company has complied with all code provisions and mandatory disclosure requirements of the Corporate Governance Code, except for the deviation where the roles of Chairman and Chief Executive Officer are combined and held by Mr. Wang Jun[225] - The Board believes that combining the roles of Chairman and Chief Executive Officer helps ensure consistent leadership within the group and maximizes the effectiveness and efficiency of overall planning and strategy execution[226][228] MODEL CODE FOR SECURITIES TRANSACTIONS BY DIRECTORS The company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers, and all directors confirmed compliance during the period - The company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers as its code of conduct for directors' dealings in the company's securities[229][231] - Following specific enquiries made to each director, the company confirmed that all directors have complied with the required standards set out in the Model Code throughout the period[231] PURCHASE, SALE OR REDEMPTION OF LISTED SECURITIES OF THE COMPANY During the six months ended June 30, 2025, the company repurchased 138,000 shares on the Stock Exchange for HK$150,500, which remained uncancelled at period-end - For the six months ended June 30, 2025, the company repurchased a total of 138,000 shares on the Stock Exchange[230][232] - The total consideration paid was HK$150,500[233] - As of June 30, 2025, these 138,000 repurchased shares had not yet been cancelled[230] CHANGES OF INFORMATION IN RESPECT OF DIRECTORS Several changes in director information occurred during the period, including resignations of Mr. Shi Shushan and Ms. Dai Jiling, and appointments of Mr. Wang Jun as CEO and Mr. Guo Liyuan as Executive Director and CFO - Mr. Shi Shushan resigned as Executive Director, effective February 1, 2025[240] - Ms. Dai Jiling resigned as Executive Director and Chief Executive Officer, effective April 30, 2025[240] - Mr. Wang Jun was appointed Chief Executive Officer, effective April 30, 2025[240] - Mr. Guo Liyuan was appointed Executive Director and Chief Financial Officer, effective April 30, 2025[240] - Ms. Luo Ying resigned from all positions at GL China Equity HK Management Limited on June 30, 2025[240] REVIEW OF INTERIM RESULTS BY AUDIT COMMITTEE The company's Audit Committee discussed and reviewed the unaudited interim condensed consolidated financial statements for H1 2025 with management and approved the interim results - The company's Audit Committee discussed the accounting principles and policies adopted by the group with management and reviewed the group's unaudited interim condensed consolidated financial statements for the six months ended June 30, 2025[237][239] - The Audit Committee has agreed with the company's management on the group's interim results for the period[239] EVENTS AFTER THE REPORTING PERIOD As of the report date, no significant e