领悦服务集团(02165) - 2025 - 中期财报

Company Information This section details changes in the board of directors and company secretary, along with the company's registered and primary business locations Board of Directors and Company Secretary During the reporting period, there were changes in the company's board members and company secretary, with Mr. Hu Ning appointed as an independent non-executive director and Ms. Ma Yongyi as the new company secretary - Mr. Hu Ning was appointed as an independent non-executive director, audit committee member, remuneration committee chairman, and nomination committee member on February 14, 2025, the same day Ms. Zhang Qian resigned[7][58] - Ms. Ma Yongyi was appointed as company secretary, authorized representative, and agent for service of process on June 16, 2025, the same day Ms. Zhen Kaining resigned[7][59] Registered and Business Locations The company is registered in the Cayman Islands, with primary business locations in Wan Chai, Hong Kong, and Chengdu, Sichuan Province, China, and its shares are listed under stock code 2165 - The company's registered office and principal share registrar are located in the Cayman Islands[9] - The principal place of business in Hong Kong is in Dah Sing Financial Centre, Wan Chai, while the China headquarters and principal place of business are in Global Financial Centre, Chengdu, Sichuan Province[8] - The company's stock code is 2165, and its website is www.lingyue-service.com[9](index=9&type=chunk) Management Discussion and Analysis This section provides an overview of the group's business strategy, operational performance across various service lines, financial results, balance sheet items, liquidity, and human resources during the reporting period Business Review and Outlook The Group maintains its "deep cultivation in Southwest, layout in Xinjiang, and national development" strategy, achieving steady growth in managed scale and expanding service offerings across 34 cities in China, with a focus on quality and customer value for future development - The Group adheres to its "deep cultivation in Southwest, layout in Xinjiang, and national development" strategy, forming two growth poles in Sichuan and Xinjiang[10] - As of June 30, 2025, the Group provides property management and value-added services in 34 cities across China, with a total of 257 contracted projects (252 under management)[10] - For the second half of the year, the Group will continue to focus on quality and empathetic services, strengthen its operational foundation, create customer value, expand service boundaries, and pursue high-quality development guided by long-term principles[11] Group Business Model The Group operates three business lines—property management, value-added services to non-property owners, and community value-added services—offering integrated services across the property management value chain, with a focus on expanding high-margin community value-added services - The Group's business lines include: (i) property management services, (ii) value-added services to non-property owners, and (iii) community value-added services[12] - Community value-added services typically generate higher profit margins, significantly enhancing the Group's financial performance, and the Group will continue to strengthen this service portfolio and expand market share[13] Property Management Services As of June 30, 2025, the Group's total contracted GFA increased by 1.0% to approximately 36.0 million square meters, while GFA under management decreased by 1.0% to approximately 31.4 million square meters, with expanded coverage to 34 cities and continued project acquisition from both related and independent developers Key Indicators for Property Management Services | Indicator | June 30, 2025 | June 30, 2024 | Change | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Number of properties under management | 252 | 267 | -15 | -5.6% | | Number of contracted properties | 257 | 272 | -15 | -5.5% | | GFA under management (thousand sq.m.) | 31,353 | 31,680 | -327 | -1.0% | | Contracted GFA (thousand sq.m.) | 36,024 | 35,665 | +359 | +1.0% | | GFA not yet delivered (thousand sq.m.) | 4,671 | 3,985 | +686 | +17.2% | - The Group has expanded its geographical coverage to 34 cities, 9 provinces, 1 autonomous region, and 1 municipality[17] Revenue from Property Management Services by Region | Region | 2025 Revenue (RMB thousands) | 2025 Share (%) | 2024 Revenue (RMB thousands) | 2024 Share (%) | Change (RMB thousands) | Change Rate (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Sichuan Province | 231,252 | 78.3 | 217,001 | 78.7 | 14,251 | 6.6 | | Xinjiang Uygur Autonomous Region | 24,658 | 8.3 | 22,161 | 8.0 | 2,497 | 11.2 | | Guangdong Province | 13,367 | 4.5 | 13,325 | 4.8 | 42 | 0.3 | | Jilin Province | 10,841 | 3.7 | 10,312 | 3.7 | 529 | 5.1 | | Hebei Province | 1,237 | 0.4 | 1,221 | 0.4 | 16 | 1.3 | | Henan Province | 3,872 | 1.3 | 4,310 | 1.6 | -438 | -10.2 | | Hubei Province | 3,679 | 1.2 | 3,425 | 1.2 | 254 | 7.4 | | Jiangsu Province | 998 | 0.3 | 762 | 0.3 | 236 | 31.0 | | Guizhou Province | 2,971 | 1.0 | 2,330 | 0.8 | 641 | 27.5 | | Chongqing Municipality | 1,980 | 0.7 | 1,444 | 0.5 | 536 | 37.1 | | Fujian Province | 957 | 0.3 | — | — | 957 | — | | Total | 295,812 | 100 | 276,291 | 100 | 19,521 | 7.1 | Source of Properties Under Management and Revenue Contribution | Developer Type | 2025 Revenue (RMB thousands) | 2025 Share (%) | 2024 Revenue (RMB thousands) | 2024 Share (%) | Change (RMB thousands) | Change Rate (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Landsea Holdings Group | 206,724 | 70.0 | 183,358 | 66.4 | 23,366 | 12.7 | | Joint ventures of Landsea Holdings Group | 5,469 | 1.8 | 14,722 | 5.3 | -9,253 | -62.8 | | Non-Landsea Holdings Group and non-joint ventures | 83,619 | 28.2 | 78,211 | 28.3 | 5,408 | 6.9 | | Total | 295,812 | 100 | 276,291 | 100 | 19,521 | 7.1 | Type of Properties Under Management and Revenue Contribution | Property Type | 2025 Revenue (RMB thousands) | 2025 Share (%) | 2024 Revenue (RMB thousands) | 2024 Share (%) | Change (RMB thousands) | Change Rate (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Residential properties | 240,242 | 81.2 | 206,108 | 74.6 | 34,134 | 16.6 | | —Early stage | 196,740 | 66.5 | 170,479 | 61.7 | 26,261 | 15.4 | | —Owners' committee stage | 43,502 | 14.7 | 35,629 | 12.9 | 7,873 | 22.1 | | Commercial properties | 27,379 | 9.3 | 38,133 | 13.8 | -10,754 | -28.2 | | Public and other properties | 28,191 | 9.5 | 32,050 | 11.6 | -3,859 | -12.0 | | Total | 295,812 | 100 | 276,291 | 100 | 19,521 | 7.1 | Value-Added Services to Non-Property Owners During the reporting period, revenue from value-added services to non-property owners significantly decreased by 59.2% to approximately RMB 4.0 million, primarily due to lower sales office management service revenue, accounting for 1.3% of the Group's total revenue - Revenue from value-added services to non-property owners decreased by 59.2% to approximately RMB 4.0 million from approximately RMB 9.9 million in the same period of 2024, mainly due to a decrease in sales office management service revenue[28] - Revenue from value-added services to non-property owners accounted for 1.3% of the Group's total revenue[28] Revenue Breakdown of Value-Added Services to Non-Property Owners | Service Type | 2025 Revenue (RMB thousands) | 2025 Share (%) | 2024 Revenue (RMB thousands) | 2024 Share (%) | Change (RMB thousands) | Change Rate (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Preliminary planning and design consulting services | 2,148 | 53.1 | 2,110 | 21.3 | 38 | 1.8 | | Sales office management services | 1,702 | 42.1 | 6,500 | 65.6 | -4,798 | -73.8 | | Pre-delivery services | 9 | 0.2 | 525 | 5.3 | -516 | -98.3 | | Repair and maintenance services | 153 | 3.8 | 505 | 5.1 | -352 | -69.7 | | Property transaction assistance services | 33 | 0.8 | 270 | 2.7 | -237 | -87.8 | | Total | 4,045 | 100 | 9,910 | 100 | -5,865 | -59.2 | Community Value-Added Services During the reporting period, revenue from community value-added services decreased by 22.1% to approximately RMB 21.1 million, primarily due to a decline in move-in services revenue, accounting for 6.6% of the Group's total revenue - Revenue from community value-added services decreased by 22.1% to approximately RMB 21.1 million from approximately RMB 27.1 million in the same period of 2024, mainly due to a decrease in move-in services revenue[30] - Revenue from community value-added services accounted for 6.6% of the Group's total revenue[30] Revenue Breakdown of Community Value-Added Services | Service Type | 2025 Revenue (RMB thousands) | 2025 Share (%) | 2024 Revenue (RMB thousands) | 2024 Share (%) | Change (RMB thousands) | Change Rate (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Community space management services | 3,164 | 15.0 | 3,915 | 14.4 | -751 | -19.2 | | Decoration and move-in services | 6,397 | 30.3 | 16,766 | 61.9 | -10,369 | -61.8 | | Convenient living services | 9,592 | 45.5 | 6,314 | 23.3 | 3,278 | 51.9 | | Community retail services | 1,950 | 9.2 | 98 | 0.4 | 1,852 | 1889.8 | | Total | 21,103 | 100 | 27,093 | 100 | -5,990 | -22.1 | Financial Review During the reporting period, the Group's total revenue increased by 2.4% to RMB 321.0 million, driven by property management services, but gross profit decreased by 4.5%, with gross margin declining by 2.2 percentage points to 29.6% due to increased operating costs, and profit attributable to owners decreased by 14% to RMB 49.9 million Revenue Contribution | Business Segment | 2025 Revenue (RMB thousands) | 2025 Share (%) | 2024 Revenue (RMB thousands) | 2024 Share (%) | Change (RMB thousands) | Change Rate (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Property management services | 295,812 | 92.1 | 276,291 | 88.2 | 19,521 | 7.1 | | Value-added services to non-property owners | 4,045 | 1.3 | 9,910 | 3.2 | -5,865 | -59.2 | | Community value-added services | 21,103 | 6.6 | 27,093 | 8.6 | -5,990 | -22.1 | | Total | 320,960 | 100 | 313,294 | 100 | 7,666 | 2.4 | - Cost of sales was approximately RMB 225.9 million, an increase of approximately 5.7% compared to the same period in 2024, primarily due to increased infrastructure investment to enhance property quality, leading to higher operating costs[35] - Gross profit decreased by 4.5% from approximately RMB 99.6 million in the same period of 2024 to approximately RMB 95.1 million, with the gross profit margin declining by 2.2 percentage points from 31.8% to 29.6%, mainly due to increased operating costs[36] Gross Profit Margin by Business Line | Business Line | 2025 Gross Profit Margin (%) | 2024 Gross Profit Margin (%) | Change in Gross Profit Margin (percentage points) | | :--- | :--- | :--- | :--- | | 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 increased by approximately 2.2% from approximately RMB 27.5 million in the same period of 2024 to approximately RMB 28.1 million, primarily due to increased labor costs[38] - Income tax expense decreased by approximately 31% from RMB 11.2 million in the same period of 2024 to approximately RMB 7.8 million, mainly due to a decrease in taxable profit[39] - Profit and total comprehensive income attributable to owners of the Company was approximately RMB 49.9 million, a decrease of approximately 14% compared to RMB 58 million in the same period of 2024[40] Balance Sheet Items Analysis As of June 30, 2025, trade receivables increased by 4.2% to RMB 141.3 million due to higher total revenue, while prepayments, deposits, and other receivables decreased by 15.6% to RMB 44.6 million mainly from lower in-transit funds, and trade payables decreased by 9.6% to RMB 37.1 million due to adjusted payment schedules - Trade receivables were approximately RMB 141.3 million, an increase of approximately 4.2% compared to December 31, 2024, primarily due to an increase in total revenue[41] - Prepayments, deposits, and other receivables were approximately RMB 44.6 million, a decrease of approximately 15.6% compared to December 31, 2024, mainly due to a significant decrease in in-transit funds[42] - Trade payables were approximately RMB 37.1 million, a decrease of approximately 9.6% compared to December 31, 2024, primarily due to the Group's adjustment of payment schedules based on market conditions[43] Liquidity and Risk Management The Group maintains prudent financial management, closely monitoring liquidity, with cash primarily used for investments, information technology, and working capital, and faces no significant interest rate or foreign exchange risks due to its RMB-denominated operations in China and absence of interest-bearing borrowings or contingent liabilities as of June 30, 2025 - The Group's cash is primarily used for investments, information technology infrastructure, and working capital, mainly funded by operating cash flows[44] - The Group has no significant interest-bearing assets or liabilities, thus not facing material risks directly related to market interest rate fluctuations[45] - The Group primarily operates in mainland China, with all transactions denominated and settled in RMB, and currently does not engage in hedging activities to manage foreign exchange rate risks[46] - As of June 30, 2025, the Group had zero interest-bearing borrowings, rendering the gearing ratio meaningless, and no contingent liabilities[47][48] Investments and Asset Status During the reporting period, the Group made no significant acquisitions or disposals of subsidiaries, associates, or joint ventures, held no material investments, and had no future plans for significant investments or capital assets beyond those disclosed in the prospectus, with pledged deposits of RMB 0.1 million as of June 30, 2025 - During the reporting period, the Group made no significant acquisitions or disposals of subsidiaries, associates, or joint ventures, nor did it hold any material investments[49][50] - As of June 30, 2025, the Group had no plans for significant investments or capital assets other than those disclosed in the prospectus[51] - As of June 30, 2025, the Group's pledged deposits amounted to RMB 0.1 million[52] Employees and Remuneration Policy As of June 30, 2025, the Group had 5,260 employees with total staff costs of approximately RMB 149.7 million, and plans to enhance employee training and maintain a remuneration policy aligned with industry peers, considering responsibilities, market levels, and performance, while complying with local social insurance and housing provident fund regulations - As of June 30, 2025, the Group had 5,260 employees (December 31, 2024: 5,644 employees)[53] - During the reporting period, total staff costs were approximately RMB 149.7 million, compared to approximately RMB 149.5 million in the same period of 2024[53] - The Group will further strengthen its employee training programs using internal and external resources and adopt remuneration policies similar to industry peers, with compensation determined by responsibilities and prevailing market levels in the region[53] Corporate Governance and Other Information This section outlines the company's adherence to corporate governance standards, changes in key personnel, details of the share option scheme, interests of directors and major shareholders, dividend policy, use of listing proceeds, and the audit committee's review of financial results Corporate Governance Code and Model Code for Securities Transactions The Company is committed to high corporate governance standards, having adopted and complied with the Corporate Governance Code and the Model Code for Securities Transactions by Directors during the reporting period - The Company has adopted the principles and code provisions of the Corporate Governance Code as the basis for its corporate governance practices and complied with all applicable code provisions during the reporting period[55] - The Company has adopted the Model Code as its code of conduct for directors' securities transactions, and all directors confirmed compliance with the Model Code during the reporting period[56] Changes in Directors and Company Secretary During the reporting period, Ms. Zhang Qian resigned as an independent non-executive director, succeeded by Mr. Hu Ning, and Ms. Zhen Kaining resigned as company secretary, with Ms. Ma Yongyi appointed as her replacement and authorized representative - Ms. Zhang Qian resigned as an independent non-executive director, audit committee member, remuneration committee chairman, and nomination committee member, effective February 14, 2025[58] - Mr. Hu Ning was appointed as an independent non-executive director, audit committee member, remuneration committee chairman, and nomination committee member, effective February 14, 2025[58] - Ms. Zhen Kaining resigned as company secretary, authorized representative, and agent for service of process, with Ms. Ma Yongyi appointed as her successor, both effective June 16, 2025[59] Share Option Scheme The share option scheme acknowledges contributions from eligible participants, with 28,000,000 shares available for grant as of June 30, 2025, representing 9.80% of total issued shares, and no options were granted, exercised, cancelled, or lapsed during the reporting period - The share option scheme aims to recognize and reward the contributions of eligible participants, including employees, directors, and other selected individuals, to the Group[60] - As of June 30, 2025, 28,000,000 shares were available for grant under the share option scheme, representing 9.80% of the total issued shares as of the report date[61] - From the adoption date of the share option scheme until the end of the reporting period, no share options were granted, exercised, cancelled, or lapsed, and there were no outstanding share options under the scheme[61] Directors' and Major Shareholders' Interests As of June 30, 2025, Mr. Liu Yuqi, Ms. Wang Tao, and Ms. Hou Sanli held approximately 74.67% of the Company's shares through spousal or controlled company interests, with other ultimate controlling shareholders and their spouses also holding significant shares via controlled entities as parties acting in concert, and Hai Yue Holding Limited holding 7.98% of shares Directors' Interests in Shares or Underlying Shares of the Company | Director's Name | Nature of Interest | Number of Shares Held | Approximate Percentage of Interest in the Company (%) | | :--- | :--- | :--- | :--- | | Mr. Liu Yuqi | Spouse's interest | 213,313,000 (L) | 74.67 | | Ms. Wang Tao | Interest in controlled corporation | 213,313,000 (L) | 74.67 | | Ms. Hou Sanli | Interest in controlled corporation | 213,313,000 (L) | 74.67 | - Pursuant to the acting in concert deed, the ultimate controlling shareholders (including Mr. Liu Yuqi, Ms. Wang Tao, Ms. Hou Sanli, etc.) agreed and confirmed that they have been and will continue to be parties acting in concert, making joint decisions for the Group[62] Interests of Persons Other Than Directors and Chief Executive | Shareholder Name/Entity | Nature of Interest/Capacity | Number of Shares Held | Approximate Percentage of Interest in the Company (%) | | :--- | :--- | :--- | :--- | | Mr. Liu Haowei | Interest in controlled corporation | 213,313,000 (L) | 74.67 | | Tianyue Holding | Beneficial owner | 68,960,430 (L) | 24.14 | | Mr. Liu Ce | Interest in controlled corporation | 213,313,000 (L) | 74.67 | | Linghui Holding | Beneficial owner | 68,939,640 (L) | 24.13 | | Ms. Long Yiqin | Interest in controlled corporation | 213,313,000 (L) | 74.67 | | Ms. Chen Aoao | Spouse's interest | 213,313,000 (L) | 74.67 | | Ms. Lan Tian | Spouse's interest | 213,313,000 (L) | 74.67 | | Mr. Liu Yuhui | Interest in controlled corporation | 213,313,000 (L) | 74.67 | | Jin Sha Jiang | Beneficial owner | 74,352,640 (L) | 26.03 | | Mr. Liu Shan | Spouse's interest | 213,313,000 (L) | 74.67 | | Hai Yue Holding Limited | Beneficial owner | 22,781,000 (L) | 7.98 | Interim Dividend The Board does not recommend paying an interim dividend for the six months ended June 30, 2025, consistent with the prior year - The Board resolved not to declare any interim dividend for the six months ended June 30, 2025 (six months ended June 30, 2024: nil)[66] Use of Net Proceeds from Listing The Company's net proceeds from listing, approximately HKD 278.0 million, were originally allocated for strategic acquisitions (70%), information system upgrades (20%), and working capital (10%), with approximately HKD 49.7 million utilized to date, and the remaining unutilized funds held in short-term demand deposits due to a revised timeline for planned uses - The net proceeds from the Company's global offering (including partial exercise of the over-allotment option) amounted to approximately HKD 278.0 million[68] - The original planned uses were: approximately 70.0% for strategic acquisitions and investments; approximately 20.0% for upgrading information systems and equipment; and approximately 10.0% for working capital and general corporate purposes[68] - As of the date of this report, the Company had utilized approximately HKD 49.7 million of the net proceeds from listing, and the expected timeline for the planned use of proceeds has been postponed due to industry changes and current system capabilities meeting management needs[68][70] Details of Use of Net Proceeds from Listing | Planned Use | Approximate Percentage | Planned Amount (HKD millions) | Unutilized as of January 1, 2025 (HKD millions) | Actual Use as of June 30, 2025 (HKD millions) | Unutilized as of June 30, 2025 (HKD millions) | | :--- | :--- | :--- | :--- | :--- | :--- | | Strategic acquisitions and investments — Acquisition and investment in other property management companies | 70.0% | 194.6 | 193.3 | — | 193.3 | | Upgrading information systems and equipment — Upgrading Lingyue Service Smart Property Management Platform | 10.0% | 27.8 | 24.1 | 1.2 | 22.9 | | Upgrading and improving equipment and facilities in managed communities | 10.0% | 27.8 | 13.4 | 1.3 | 12.1 | | Working capital | 10.0% | 27.8 | — | — | — | | Total | 100.0% | 278.0 | 230.8 | 2.5 | 228.3 | Other Disclosures During the reporting period, neither the Company nor its subsidiaries purchased, sold, or redeemed any of the Company's listed securities, nor did they hold any treasury shares, while maintaining sufficient public float, and no significant post-reporting period events have occurred since June 30, 2025 - During the reporting period, neither the Company nor its subsidiaries purchased, sold, or redeemed any of the Company's listed securities, nor did they hold any treasury shares[71] - The Company has maintained a sufficient public float in accordance with the Listing Rules[73] - No significant events affecting the Company have occurred from June 30, 2025, up to the date of this report[74] Audit Committee The Audit Committee, comprising three independent non-executive directors with Ms. Zou Dan as chair, is responsible for reviewing and overseeing the Company's financial reporting, risk management, and internal control systems, and has reviewed the Group's unaudited interim results for the six months ended June 30, 2025 - The Audit Committee comprises three independent non-executive directors: Ms. Luo Ying, Mr. Hu Ning, and Ms. Zou Dan, with Ms. Zou Dan serving as the chair[76] - The Audit Committee is responsible for reviewing and overseeing the Company's financial reporting, risk management, and internal control systems, assisting the Board in fulfilling its audit responsibilities[75] - The Audit Committee has reviewed the Group's unaudited interim results for the six months ended June 30, 2025, and discussed accounting principles, risk management, internal controls, and financial reporting matters with management[76] Interim Condensed Consolidated Statement of Profit or Loss For the six months ended June 30, 2025, the Group's revenue increased by 2.4% to RMB 320,960 thousand, but gross profit decreased by 4.5% to RMB 95,061 thousand, and profit for the period declined by 12.2% to RMB 52,960 thousand, with basic and diluted earnings per share attributable to owners of the parent at RMB 0.17, down from RMB 0.20 in the prior year Summary of Interim Condensed Consolidated Statement of Profit or Loss | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | Change (RMB thousands) | Change Rate (%) | | :--- | :--- | :--- | :--- | :--- | | Revenue | 320,960 | 313,294 | 7,666 | 2.4 | | Cost of sales | (225,899) | (213,732) | (12,167) | 5.7 | | Gross profit | 95,061 | 99,562 | (4,501) | -4.5 | | Other income and gains | 5,168 | 3,273 | 1,895 | 57.9 | | Administrative expenses | (28,076) | (27,475) | (601) | 2.2 | | Net impairment losses on financial assets and goodwill | (11,331) | (4,341) | (6,990) | 161.0 | | Profit before tax | 60,726 | 71,575 | (10,849) | -15.2 | | Income tax expense | (7,766) | (11,249) | 3,483 | -31.0 | | Profit for the period | 52,960 | 60,326 | (7,366) | -12.2 | | Profit attributable to owners of the parent | 49,076 | 58,018 | (8,942) | -15.4 | | Profit attributable to non-controlling interests | 3,884 | 2,308 | 1,576 | 68.3 | | Basic and diluted earnings per share (RMB) | 0.17 | 0.20 | -0.03 | -15.0 | Interim Condensed Consolidated Statement of Comprehensive Income For the six months ended June 30, 2025, the Group's total comprehensive income for the period was RMB 53,745 thousand, a 10.9% decrease from RMB 60,311 thousand in the prior year, primarily due to lower profit for the period, despite a positive fair value change in equity investments designated at fair value through other comprehensive income Summary of Interim Condensed Consolidated Statement of Comprehensive Income | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | Change (RMB thousands) | Change Rate (%) | | :--- | :--- | :--- | :--- | :--- | | Profit for the period | 52,960 | 60,326 | (7,366) | -12.2 | | Equity investments designated at fair value through other comprehensive income: Fair value change | 923 | (18) | 941 | -5227.8 | | Income tax effect | (138) | 3 | (141) | -4700.0 | | Other comprehensive income for the period, net of tax | 785 | (15) | 800 | -5333.3 | | Total comprehensive income for the period | 53,745 | 60,311 | (6,566) | -10.9 | | Attributable to owners of the parent | 49,861 | 58,003 | (8,142) | -14.0 | | Attributable to non-controlling interests | 3,884 | 2,308 | 1,576 | 68.3 | Interim Condensed Consolidated Statement of Financial Position As of June 30, 2025, the Group's total net assets increased by 8.5% to RMB 684,474 thousand from December 31, 2024, with net current assets growing by 9.2% to RMB 651,143 thousand, cash and bank balances increasing by 3.5% to RMB 737,816 thousand, and total equity rising by 8.5% to RMB 684,474 thousand Summary of Interim Condensed Consolidated Statement of Financial Position | Indicator | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | Change (RMB thousands) | Change Rate (%) | | :--- | :--- | :--- | :--- | :--- | | Total non-current assets | 34,165 | 35,793 | (1,628) | -4.5 | | Total current assets | 943,232 | 934,225 | 9,007 | 1.0 | | Total current liabilities | 292,089 | 338,203 | (46,114) | -13.6 | | Net current assets | 651,143 | 596,022 | 55,121 | 9.2 | | Total assets less current liabilities | 685,308 | 631,815 | 53,493 | 8.5 | | Total non-current liabilities | 834 | 936 | (102) | -10.9 | | Net assets | 684,474 | 630,879 | 53,595 | 8.5 | | Equity attributable to owners of the parent | 665,320 | 615,460 | 49,860 | 8.1 | | Non-controlling interests | 19,154 | 15,419 | 3,735 | 24.2 | | Total equity | 684,474 | 630,879 | 53,595 | 8.5 | - Cash and bank balances increased by 3.5% from RMB 712,885 thousand as of December 31, 2024, to RMB 737,816 thousand as of June 30, 2025[80] Interim Condensed Consolidated Statement of Changes in Equity For the six months ended June 30, 2025, the Group's total equity increased from RMB 630,879 thousand at the beginning of the period to RMB 686,094 thousand at the end, primarily driven by a profit for the period of RMB 52,960 thousand and a net fair value change of RMB 2,405 thousand in equity investments designated at fair value through other comprehensive income Summary of Interim Condensed Consolidated Statement of Changes in Equity | Indicator | June 30, 2025 (RMB thousands) | June 30, 2024 (RMB thousands) | | :--- | :--- | :--- | | Total equity at beginning of period | 630,879 | 549,687 | | Profit for the period | 52,960 | 60,326 | | Other comprehensive income for the period (net of tax) | 2,405 | (15) | | Total comprehensive income for the period | 55,364 | 60,311 | | Contribution from non-controlling interests | — | 45 | | Dividends declared to non-controlling interests | (149) | (75) | | Total equity at end of period | 686,094 | 609,968 | Interim Condensed Consolidated Statement of Cash Flows For the six months ended June 30, 2025, the Group's net cash flow from operating activities was RMB 26,394 thousand, a 32.2% year-on-year decrease, with net cash used in investing activities at RMB 472 thousand and net cash used in financing activities at RMB 1,000 thousand, resulting in cash and cash equivalents of RMB 737,706 thousand at period-end, an increase of RMB 24,922 thousand from the beginning of the period Summary of Interim Condensed Consolidated Statement of Cash Flows | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | Change (RMB thousands) | Change Rate (%) | | :--- | :--- | :--- | :--- | :--- | | Net cash flows from operating activities | 26,394 | 38,891 | (12,497) | -32.1 | | Net cash flows used in investing activities | (472) | (848) | 376 | -44.3 | | Net cash flows used in financing activities | (1,000) | (956) | (44) | 4.6 | | Net increase in cash and cash equivalents | 24,922 | 37,087 | (12,165) | -32.8 | | Cash and cash equivalents at beginning of period | 712,784 | 602,193 | 110,591 | 18.4 | | Cash and cash equivalents at end of period | 737,706 | 639,280 | 98,426 | 15.4 | - The decrease in net cash flows from operating activities was primarily influenced by factors such as lower profit before tax, an increase in trade receivables, and a decrease in contract liabilities[87] Notes to the Interim Condensed Consolidated Financial Information This section provides detailed notes on the Group's company and operational information, basis of financial statement preparation, revenue breakdown, components of profit before tax, tax expenses, dividend policy, asset details, ageing analyses of receivables and payables, related party transactions, fair value measurements of financial instruments, and subsequent events Company and Group Information The Company, incorporated in the Cayman Islands and listed on the Hong Kong Stock Exchange since July 12, 2021, primarily provides property management, value-added services to non-property owners, and community value-added services, with its ultimate controlling shareholders being Mr. Liu Yuhui, Mr. Liu Ce, Mr. Liu Haowei, Ms. Wang Tao, Ms. Long Yiqin, and Ms. Hou Sanli - The Company was incorporated in the Cayman Islands, and its shares have been listed on the Main Board of The Stock Exchange of Hong Kong Limited since July 12, 2021[90] - The Group is principally engaged in providing property management services, value-added services to non-property owners, and community value-added services[90] - The ultimate controlling shareholders of the Company are Mr. Liu Yuhui, Mr. Liu Ce, Mr. Liu Haowei, Ms. Wang Tao, Ms. Long Yiqin, and Ms. Hou Sanli[90] Basis of Preparation and Accounting Policies The interim condensed consolidated financial information is prepared in accordance with IAS 34 and should be read in conjunction with the annual consolidated financial statements for the year ended December 31, 2024, with accounting policies consistent with the prior year, except for the first-time application of amendments to IAS 21 "Lack of Exchangeability," which had no significant impact on current period financial performance - The interim condensed consolidated financial information has been prepared in accordance with International Accounting Standard 34 "Interim Financial Reporting" and should be read in conjunction with the Group's annual consolidated financial statements for the year ended December 31, 2024[92] - The accounting policies adopted in the preparation of the interim condensed consolidated financial information are consistent with those applied in the preparation of the Group's annual consolidated financial statements for the year ended December 31, 2024, except for the first-time application of amendments to IAS 21 "Lack of Exchangeability"[93][94] - The application of amendments to IFRS accounting standards had no significant impact on the Group's financial performance and position for the current and prior periods[94] Operating Segment Information Management monitors the Group's operating results, including property management and value-added service revenue by project location, consolidating all locations into a single reportable operating segment due to similar economic characteristics and business nature, with all external customer revenue and non-current assets located solely in mainland China, and revenue from Landsea Holdings Group increasing to 13.97% of total Group revenue from 6.8% in the prior year - All locations are aggregated into a single reportable operating segment due to their similar economic characteristics and business nature[95] - The Group's revenue from external customers is solely derived from its operations in mainland China, and no non-current assets are located outside China, thus no geographical information is presented[96] - For the six months ended June 30, 2025, revenue from Landsea Holdings Group Company Limited and its subsidiaries accounted for 13.97% of the Group's revenue (June 30, 2024: 6.8%)[97] Revenue Analysis The Group's revenue primarily stems from property management, value-added services to non-property owners, and community value-added services, totaling RMB 320,960 thousand for the six months ended June 30, 2025, with most revenue recognized over time Revenue Analysis from Contracts with Customers | Service Type | 2025 (RMB thousands) | 2024 (RMB thousands) | Change (RMB thousands) | Change Rate (%) | | :--- | :--- | :--- | :--- | :--- | | Property management services | 296,356 | 276,291 | 20,065 | 7.3 | | Value-added services to non-property owners | 4,045 | 9,910 | (5,865) | -59.2 | | Community value-added services | 20,559 | 27,093 | (6,534) | -24.1 | | Total | 320,960 | 313,294 | 7,666 | 2.4 | Timing of Revenue Recognition | Timing of Recognition | 2025 (RMB thousands) | 2025 Share (%) | 2024 (RMB thousands) | 2024 Share (%) | | :--- | :--- | :--- | :--- | :--- | | Revenue recognized over time | 305,548 | 95.2 | 296,374 | 94.6 | | Revenue recognized at a point in time | 15,412 | 4.8 | 16,920 | 5.4 | | Total revenue from contracts with customers | 320,960 | 100 | 313,294 | 100 | Components of Profit Before Tax The Group's profit before tax is net of costs of services provided, depreciation of property, plant and equipment, amortization of other intangible assets, and net impairment of financial assets, with net impairment of trade receivables significantly increasing to RMB 13,041 thousand compared to the prior year Deductions from Profit Before Tax | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | Change (RMB thousands) | Change Rate (%) | | :--- | :--- | :--- | :--- | :--- | | Cost of services provided | 225,899 | 213,732 | 12,167 | 5.7 | | Depreciation of property, plant and equipment | 1,711 | 1,745 | (34) | -2.0 | | Amortization of other intangible assets | 1,984 | 1,038 | 946 | 91.1 | | Net impairment of trade receivables | 13,041 | 4,654 | 8,387 | 180.2 | | Net reversal of impairment of amounts due from related companies | (1,058) | (106) | (952) | 898.1 | | Net impairment of financial assets included in prepayments and other receivables | (652) | (207) | (445) | 215.0 | Income Tax The Group is subject to income tax on its profits in mainland China, with rates including 25%, a western region preferential rate of 15%, and a small low-profit enterprise preferential rate, resulting in a total income tax expense of RMB 7,766 thousand for the six months ended June 30, 2025, a 31.0% decrease from the prior year, mainly due to lower taxable profit - All of the Group's subsidiaries operating in mainland China are subject to enterprise income tax under the Enterprise Income Tax Law of the People's Republic of China, with tax rates including 25%, a western region preferential tax rate of 15%, and a preferential tax rate for small low-profit enterprises[102] Income Tax Expense | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | Change (RMB thousands) | Change Rate (%) | | :--- | :--- | :--- | :--- | :--- | | Current — Mainland China: Expense for the period | 7,868 | 11,627 | (3,759) | -32.3 | | Deferred tax | (102) | (378) | 276 | -73.0 | | Total tax expense for the period | 7,766 | 11,249 | (3,483) | -31.0 | Dividends and Earnings Per Share The Board does not recommend an interim dividend for the six months ended June 30, 2025, and basic earnings per share attributable to ordinary equity holders of the parent decreased to RMB 0.17 from RMB 0.20 in the prior year, with no dilutive adjustments as no potentially dilutive ordinary shares were issued during these periods - The Board resolved not to declare any interim dividend for the six months ended June 30, 2025[104] - Basic earnings per share attributable to ordinary equity holders of the parent was RMB 0.17 (June 30, 2024: RMB 0.20)[105] - No adjustments were made to the basic earnings per share amounts presented for the six months ended June 30, 2025, and June 30, 2024, for dilution, as the Group had no potentially dilutive ordinary shares in issue during these periods[105] Property, Plant and Equipment For the six months ended June 30, 2025, the Group acquired assets at a cost of RMB 466,000, a decrease from RMB 512,000 in the same period last year - For the six months ended June 30, 2025, the Group acquired assets at a cost of RMB 466,000 (June 30, 2024: RMB 512,000)[107] Trade Receivables Ageing Analysis As of June 30, 2025, the Group's total trade receivables amounted to RMB 141,311 thousand, with the largest portion, RMB 102,104 thousand, due within one year, and an increase in receivables aged one to two years compared to December 31, 2024 Trade Receivables Ageing Analysis | Ageing | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | Change (RMB thousands) | Change Rate (%) | | :--- | :--- | :--- | :--- | :--- | | Within 1 year | 102,104 | 103,024 | (920) | -0.9 | | 1 to 2 years | 29,873 | 21,790 | 8,083 | 37.1 | | 2 to 3 years | 7,487 | 8,102 | (615) | -7.6 | | Over 3 years | 1,847 | 2,693 | (846) | -31.4 | | Total | 141,311 | 135,609 | 5,702 | 4.2 | Trade Payables Ageing Analysis and Share Capital As of June 30, 2025, the Group's total trade payables amounted to RMB 37,132 thousand, with the largest portion due within one year, showing a decrease from December 31, 2024, while the Company's issued and fully paid share capital remained consistent at 285,685,000 ordinary shares of HKD 0.01 each, totaling RMB 2,382 thousand Trade Payables Ageing Analysis | Ageing | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | Change (RMB thousands) | Change Rate (%) | | :--- | :--- | :--- | :--- | :--- | | Within 1 year | 28,943 | 37,122 | (8,179) | -22.0 | | Over 1 year | 8,189 | 3,965 | 4,224 | 106.5 | | Total | 37,132 | 41,087 | (3,955) | -9.6 | - The Company's issued and fully paid share capital consists of 285,685,000 ordinary shares with a par value of HKD 0.01 each, totaling RMB 2,382 thousand, consistent with December 31, 2024[109] Related Party Transactions During the reporting period, the Group generated RMB 45,047 thousand in revenue from property management and value-added services to related companies, a 96.2% year-on-year increase primarily from companies controlled by the controlling shareholder, while amounts due from related companies totaled RMB 11,963 thousand, a decrease from the end of 2024, and key management personnel remuneration decreased by 15.4% to RMB 601 thousand Revenue from Services Provided to Related Companies | Related Party Type | 2025 (RMB thousands) | 2024 (RMB thousands) | Change (RMB thousands) | Change Rate (%) | | :--- | :--- | :--- | :--- | :--- | | Companies controlled by controlling shareholders | 42,795 | 21,247 | 21,548 | 101.4 | | Joint ventures of Landsea Holdings Group | 2,252 | 1,190 | 1,062 | 89.2 | | Associates of Landsea Holdings Group | — | 526 | (526) | -100.0 | | Total | 45,047 | 22,963 | 22,084 | 96.2 | Outstanding Balances with Related Parties (Receivables) | Related Party Type | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | Change (RMB thousands) | Change Rate (%) | | :--- | :--- | :--- | :--- | :--- | | Companies controlled by controlling shareholders | 16,026 | 32,688 | (16,662) | -51.0 | | Joint ventures of Landsea Holdings Group | 1,029 | 3,393 | (2,364) | -69.7 | | Associates of Landsea Holdings Group | 188 | 188 | 0 | 0.0 | | Joint ventures | 1 | — | 1 | — | | Impairment | (5,281) | (6,339) | 1,058 | -16.7 | | Net amounts due from related companies | 11,963 | 29,930 | (17,967) | -60.0 | - Total remuneration for key management personnel was RMB 601 thousand, a 15.4% decrease from RMB 711 thousand in the same period of 2024[114] Fair Value and Fair Value Hierarchy of Financial Instruments The fair value of the Group's unlisted equity investments is estimated using the market approach, incorporating a discount for lack of marketability, with equity investments designated at fair value through other comprehensive income totaling RMB 4,090 thousand as of June 30, 2025, an increase from the beginning of the period, and all fair value measurements are classified as Level 3 with no transfers between levels during the period - The fair value of unlisted equity investments is estimated using the market approach, taking into account a discount for lack of marketability[115] - An increase/decrease of 5% in the discount for lack of marketability would result in a decrease/increase in fair value of RMB 223,000[115] Equity Investments Designated at Fair Value Through Other Comprehensive Income | Date | Amount (RMB thousands) | | :--- | :--- | | As of June 30, 2025 | 4,090 | | As of December 31, 2024 | 3,241 | | As of January 1, 2025 | 3,241 | | Total gains/(losses) recognized in other comprehensive income | 849 | | As of June 30, 2025 | 4,090 | - All of the Group's fair value measurements are classified as Level 3, with no transfers between Level 1 and Level 2, or into or out of Level 3 for financial assets and liabilities during the period[116][117] Events After Reporting Period and Approval of Financial Information No significant subsequent events have occurred since June 30, 2025, and the unaudited interim condensed consolidated financial information was approved and authorized for issue by the Company's Board of Directors on August 30, 2025 - No significant subsequent events have occurred after June 30, 2025[118] - The unaudited interim condensed consolidated financial information was approved and authorized for issue by the Company's Board of Directors on August 30, 2025[119] Definitions This section provides definitions for key terms and expressions used throughout the report to ensure a clear understanding of its content