众安智慧生活(02271) - 2025 - 中期财报

Corporate Information This section details the company's governance structure, including board and committee compositions, and provides essential contact and financial information Board of Directors and Committees This chapter outlines the composition of the company's Board of Directors and its committees (Audit, Remuneration, Nomination), along with changes in director appointments - Ms. Ding Shuchun was appointed CEO on January 18, 2025, while Mr. Yang Guang resigned on the same day[4] - Ms. Xu Jianying resigned as Executive Director and ceased to be a member of the Remuneration Committee on June 17, 2025[4][5] - Mr. Zhong Chuangxin chairs the Audit Committee, Mr. Liang Xinjun chairs the Remuneration Committee, and Mr. Shi Zhong'an chairs the Nomination Committee[5][6] Company Contact and Financial Details This section provides essential contact and financial information, including the company's registered office, headquarters, stock code, website, and auditors - The company's stock code is 2271, and its website is www.zazhsh.com[9](index=9&type=chunk)[10] - Key relationship banks include Bank of China (Hong Kong) Limited, Xiaoshan Rural Commercial Bank, and Agricultural Bank of China[10][11] - The auditor is Ernst & Young, a registered public interest entity auditor[10][11] Definitions This section provides definitions for key terms and abbreviations used throughout the report to ensure clarity and consistent understanding Key Terms and Abbreviations This section defines key terms and abbreviations used in the report, such as "2024 Interim Period," "the Company," "the Group," "Listing Date," and "RMB," for clear understanding - "2024 Interim Period" refers to the six months ended June 30, 2024[13] - "The Company" refers to Zhong An Smart Living Services Limited, incorporated in the Cayman Islands on November 16, 2020, with shares listed on the Main Board of the Stock Exchange (Stock Code: 2271)[13] - "Reporting Period" refers to the six months ended June 30, 2025[15] Management Discussion And Analysis This section provides an overview of the Group's operational performance, strategic outlook, and detailed financial review for the reporting period Business Review The Group, a comprehensive property management service provider established in 1998, has grown into a regional leader in Zhejiang Province and the Yangtze River Delta, managing approximately 20.69 million square meters as of June 30, 2025, with significant progress in service upgrades, business innovation, and cost optimization - The Group has been listed among China's Top 100 Property Service Enterprises since 2016, rising from 82nd in 2016 to 36th in 2025[19][22] - As of June 30, 2025, the Group had 146 contracted projects, covering approximately 22.39 million square meters across 22 cities and eight provinces in China[21][23] - As of June 30, 2025, the Group managed 138 projects, covering approximately 20.69 million square meters across 22 cities and seven provinces in China[21][23] - In 2025, the Group successfully bid for the Deqing Moganshan General Airport property service project, extending non-residential services to the aviation hub sector[27][28] - The information platform achieved an overall coverage rate of approximately 85%, with usage rates of 100% for billing, approximately 94.6% for inspection, and approximately 92.3% for work order modules, significantly enhancing management efficiency[31][33] Future Outlook The Group will adhere to its core philosophy of "service creates value," focusing on "returning to service essence and reshaping the quality-price matching system" through strategic expansion, quality enhancement, technological empowerment, and social responsibility to drive sustainable development and build a leading smart living service brand - The Group will continue to deepen its strategic layout in the Yangtze River Delta region, enhancing service density and quality across its three core business segments: residential, commercial office, and public buildings[36][38] - Actively promote the implementation of services in non-residential sectors such as transportation hubs, industrial parks, and commercial complexes to enhance the resilience and revenue diversification of the business portfolio[36][38] - Fully implement the "Service Quality Leap Plan" to enhance service quality across three dimensions: demand response, service standards, and personnel training[37][39] - Increase investment in smart IoT platform construction and data middle-ground capabilities, promoting intelligent upgrades for scenarios such as fire safety, parking, and equipment management to build 24-hour online service capabilities[41][43] Financial Review During the reporting period, the Group's revenue increased by 17.8% to RMB 214.5 million, driven primarily by strong growth in property management services; however, gross profit margin and net profit declined due to reduced value-added services for property developers and increased operating costs Revenue Breakdown (Six Months Ended June 30) | Business Segment | 2025 (RMB '000) | 2025 Share | 2024 (RMB '000) | 2024 Share | | :--- | :--- | :--- | :--- | :--- | | Property management services | 186,521 | 87.0% | 153,423 | 84.2% | | Value-added services primarily for property developers | 14,259 | 6.6% | 18,099 | 10.0% | | Community value-added services | 13,705 | 6.4% | 10,623 | 5.8% | | Total | 214,485 | 100.0% | 182,145 | 100.0% | - Property management service revenue reached approximately RMB 186.5 million, an increase of approximately 21.6% compared to the 2024 interim period[49][51] - As of June 30, 2025, the Group's total GFA under management was approximately 20.7 million square meters, an increase of approximately 2.7 million square meters or 15.0% compared to the 2024 interim period[49][51] - Revenue from value-added services primarily for property developers was approximately RMB 14.3 million, a decrease of approximately 21.0% compared to the 2024 interim period, mainly due to reduced sales office management services[67][70] - Community value-added service revenue was approximately RMB 13.7 million, an increase of approximately 29.2% compared to the 2024 interim period, primarily due to increased public area management services and parking space co-sales revenue[69][71] Gross Profit Margin (Six Months Ended June 30) | Business Segment | 2025 | 2024 | | :--- | :--- | :--- | | Property management services | 29.1% | 30.0% | | Value-added services primarily for property developers | 40.9% | 41.2% | | Community value-added services | 39.5% | 40.1% | | Total | 30.5% | 31.7% | - Net profit for the reporting period was approximately RMB 10.9 million, a decrease of approximately 23.5% compared to the 2024 interim period, with net profit margin at 5.1%, down 2.7% from 7.8% in the 2024 interim period[83][89] - Basic and diluted earnings per share attributable to ordinary equity holders of the parent was RMB 2.21 cents per share (2024 interim period: RMB 2.77 cents per share)[84][89] Liquidity and Capital Resources The Group maintains a prudent treasury management policy, with liquidity primarily derived from business operations; as of June 30, 2025, cash and cash equivalents were approximately RMB 164.1 million, with a current ratio of 2.6 times and a low gearing ratio of 9.3% - As of June 30, 2025, cash and cash equivalents amounted to approximately RMB 164.1 million, an increase of approximately 19.6% compared to December 31, 2024[93][100] - As of June 30, 2025, the Group's current ratio was 2.6 times (December 31, 2024: 2.8 times)[94][100] - As of June 30, 2025, the Group's bank borrowings amounted to RMB 28.0 million, with a low gearing ratio of 9.3%[94][100] - The vast majority of the Group's income and expenditures are denominated in RMB, with no hedging transactions entered into, and foreign exchange risk is managed by closely monitoring exchange rate fluctuations[95][101] Capital Commitments As of June 30, 2025, the Group had no capital commitments - As of June 30, 2025, the Group had no capital commitments[96][102] Contingent Liabilities and Pledge of Assets As of June 30, 2025, the Company, its subsidiaries, and associates had no financial guarantees, loan guarantees, mortgages, or other significant contingent liabilities - As of June 30, 2025, the Company, its subsidiaries, and associates had no financial guarantees, loan guarantees, mortgages, or other significant contingent liabilities[97][103] Significant Investments, Material Acquisitions and Disposals of Subsidiaries, Associates and Joint Ventures During the reporting period, the Group made no significant investments, material acquisitions, or disposals of subsidiaries, associates, or joint ventures - During the reporting period, the Group made no significant investments, material acquisitions, or disposals of subsidiaries, associates, or joint ventures[98][104] Future Plans for Material Investments The Group plans to use a portion of its net proceeds from the listing for acquisitions or investments in other property management companies to expand its business scale and market share, with no other future plans for material investments or capital asset acquisitions - The Group intends to use a portion of the net proceeds from its listing to acquire or invest in other property management companies to expand its business scale and market share[99][105] - As of the date of this report, the Group has no other future plans for material investments or acquisitions of capital assets[99][105] Corporate Governance and Other Information This section covers the company's corporate governance practices, use of global offering proceeds, director and shareholder interests, and other compliance-related disclosures Use of Proceeds from the Global Offering The company's global offering generated net proceeds of approximately HK$104 million, primarily allocated for strategic acquisitions, software and hardware upgrades for community development, and expanding community value-added services; as of June 30, 2025, HK$4.8 million was utilized, with the remaining HK$94.0 million expected to be fully used by December 2025 - The total net proceeds from the global offering amounted to approximately HK$104 million[107][109] Use of Net Proceeds from Global Offering (As of June 30, 2025) | Purpose | Percentage | Available as of December 31, 2024 (HK$ million) | Utilized for Six Months Ended June 30, 2025 (HK$ million) | Unutilized as of June 30, 2025 (HK$ million) | Expected Time for Full Utilization of Remaining Balance | | :--- | :--- | :--- | :--- | :--- | :--- | | Strategic acquisitions and investments | 55.0% | 57.2 | – | 57.2 | By December 2025 | | Investment and upgrade of software and hardware for community development of the Company's managed projects | 30.0% | 27.7 | 3.7 | 24.0 | By December 2025 | | Expansion of service types, scope, and efficiency of the Group's community value-added services | 15.0% | 13.9 | 1.1 | 12.8 | By December 2025 | | Total | 100% | 98.8 | 4.8 | 94.0 | | Change of Directors' Information During the reporting period, there were no changes in directors' information required to be disclosed pursuant to Rule 13.51B(1) of the Listing Rules - During the reporting period, there were no changes in directors' information required to be disclosed pursuant to Rule 13.51B(1) of the Listing Rules[111][114] Continuing Disclosure Obligation Pursuant to the Listing Rules Except as disclosed in this report, the Company has no other disclosure obligations under Rules 13.20, 13.21, and 13.22 of the Listing Rules - Except as disclosed in this report, the Company has no other disclosure obligations under Rules 13.20, 13.21, and 13.22 of the Listing Rules[112][115] Interests and Short Positions of Directors and Chief Executive in Shares, Underlying Shares and Debentures of the Company and Its Associated Corporations As of June 30, 2025, Mr. Shi Zhong'an held approximately 73.4% equity interest in the Company through controlled corporations and significant interests in associated corporations such as Zhong An and China New City Directors' Interests in Shares of the Company (As of June 30, 2025) | Name of Director | Nature of Interest | Number of Shares Interested | Approximate Percentage of Interest | | :--- | :--- | :--- | :--- | | Mr. Shi Zhong'an | Interest in controlled corporation | 380,000,000(L) | 73.4% | - Mr. Shi Zhong'an indirectly holds approximately 57.89% interest in Zhong An through wholly-owned Whole Good, and is thus deemed to have an interest in the Company's shares held by Zhong An BVI[117] Directors' Interests in Associated Corporations of the Company (As of June 30, 2025) | Name of Director | Name of Associated Corporation | Nature of Interest | Number of Shares Interested | Approximate Percentage of Interest | | :--- | :--- | :--- | :--- | | Mr. Shi Zhong'an | Zhong An | Interest in controlled corporation | 3,262,411,200(L) | 57.89% | | Mr. Shi Zhong'an | China New City | Interest in controlled corporation | 1,358,859,594(L) | 67.58% | | Mr. Shi Zhong'an | Whole Good | Beneficial owner | 1(L) | 100% | Substantial Shareholders' Interests and Short Positions in Shares and Underlying Shares As of June 30, 2025, Zhong An BVI, Zhong An, Whole Good, and Mr. Shi Zhong'an were all deemed substantial shareholders of the Company, each holding approximately 73.4% equity interest in the Company Substantial Shareholders' Interests in Shares of the Company (As of June 30, 2025) | Name of Corporation/Person | Nature of Interest | Number of Shares Interested | Approximate Percentage of Interest | | :--- | :--- | :--- | :--- | | Zhong An BVI | Beneficial owner | 380,000,000(L) | 73.4% | | Zhong An | Interest in controlled corporation | 380,000,000(L) | 73.4% | | Whole Good | Interest in controlled corporation | 380,000,000(L) | 73.4% | | Mr. Shi Zhong'an | Interest in controlled corporation | 380,000,000(L) | 73.4% | - Zhong An BVI is wholly-owned by Zhong An, approximately 57.89% of Zhong An's interest is owned by Whole Good, and Whole Good is directly wholly-owned by Mr. Shi Zhong'an; therefore, Zhong An BVI, Zhong An, Whole Good, and Mr. Shi Zhong'an are each deemed to have an interest in the shares held by Zhong An BVI[125] Significant Events After the End of the Reporting Period No significant events occurred from the end of the reporting period up to the date of this report - No significant events occurred from the end of the reporting period up to the date of this report[128][135] Employees and Remuneration Policy As of June 30, 2025, the Group had 2,866 employees and adopted a performance-based remuneration system, offering competitive compensation including basic salary, performance-based incentives, and year-end bonuses, along with social insurance and systematic training - As of June 30, 2025, the Group had a total of 2,866 employees (June 30, 2024: 2,991 employees)[129][136] - The Group adopts a system to determine employee remuneration based on performance, offering competitive compensation packages including basic salary, performance-based incentives, and year-end bonuses[129][136] - The Group contributes to social insurance for employees (medical, work injury, pension, maternity, unemployment insurance, and housing provident fund) and provides continuous and systematic training[129][136] Sufficiency of Public Float The Company confirms that throughout the reporting period and up to the date of this report, at least 25% of its total issued shares were held by the public, complying with the Stock Exchange's minimum public float requirement - At all times during the reporting period and up to the date of this report, at least 25% of the Company's total issued shares were held by the public, in compliance with the minimum public float percentage approved by the Stock Exchange and permitted by the Listing Rules[130][137] Purchase, Sale or Redemption of the Company's Listed Securities During the reporting period, neither the Company nor its subsidiaries purchased, redeemed, or sold any of the Company's listed securities - During the reporting period, neither the Company nor its subsidiaries purchased, redeemed, or sold any of the Company's listed securities[131][138] Interim Dividends The Board does not recommend the payment of an interim dividend for the reporting period - The Board does not recommend the payment of an interim dividend for the reporting period (2024 interim period: nil)[132][139] Compliance with the CG Code The Company has adopted the Corporate Governance Code provisions in Appendix C1 of the Listing Rules and complied with all applicable code provisions throughout the reporting period - The Company has adopted the code provisions of the Corporate Governance Code set out in Appendix C1 of the Listing Rules and has complied with all applicable code provisions throughout the reporting period[133][134][140] Compliance with the Model Code The Company has adopted the Model Code in Appendix C3 of the Listing Rules as the code of conduct for directors' dealings in the Company's securities, with all directors confirming compliance during the reporting period - The Company has adopted the Model Code set out in Appendix C3 of the Listing Rules as the code of conduct for directors' dealings in the Company's securities[141][144] - All directors have confirmed compliance with the required standards set out in the Model Code during the reporting period[141][144] Audit Committee and Review of Interim Results The Audit Committee, comprising three independent non-executive directors, reviewed and discussed the unaudited interim condensed consolidated financial information for the reporting period, deeming the company's risk management and internal control systems effective and adequate - Mr. Zhong Chuangxin chairs the Audit Committee, with Mr. Liang Xinjun and Mr. Zhao Yan as members, all of whom are independent non-executive directors[142][145] - The Audit Committee has reviewed and discussed with management the unaudited interim condensed consolidated financial information for the reporting period, including accounting principles and practices[142][145] - The Audit Committee considers the company's risk management and internal control systems to be effective and adequate[142][145] Approval of the Interim Condensed Financial Information The interim condensed financial information was approved and authorized for issue by the Board on August 22, 2025 - The interim condensed financial information was approved and authorized for issue by the Board on August 22, 2025[143][146] Independent Review Report This section presents the independent review report on the interim financial information, outlining the scope and conclusion of the review conducted by Ernst & Young Review Scope and Conclusion Ernst & Young reviewed the interim financial information in accordance with Hong Kong Standard on Review Engagements 2410, concluding that nothing came to their attention to suggest the interim financial information was not prepared, in all material respects, in accordance with IAS 34, noting that the scope of review is less than an audit, thus no audit opinion is expressed - Ernst & Young reviewed the interim financial information in accordance with Hong Kong Standard on Review Engagements 2410[150][152] - The scope of review is substantially less than an audit, and therefore no audit opinion is expressed[150][152] - Nothing came to our attention that causes us to believe the accompanying interim financial information is not prepared, in all material respects, in accordance with International Accounting Standard 34[151][153] Interim Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income This statement presents the Group's financial performance, including revenue, gross profit, profit for the period, and earnings per share for the six months ended June 30, 2025 Consolidated Financial Performance For the six months ended June 30, 2025, the Group reported revenue of RMB 214,485 thousand, gross profit of RMB 65,484 thousand, profit for the period of RMB 10,904 thousand, and basic and diluted earnings per share attributable to owners of the parent of RMB 2.21 cents Summary of Interim Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (Six Months Ended June 30) | Metric | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Revenue | 214,485 | 182,145 | | Cost of sales | (149,001) | (124,434) | | Gross profit | 65,484 | 57,711 | | Profit before tax | 15,965 | 19,077 | | Income tax expense | (5,061) | (4,817) | | Profit for the period | 10,904 | 14,260 | | Profit attributable to owners of the parent | 11,419 | 14,354 | | Profit attributable to non-controlling interests | (515) | (94) | | Basic and diluted earnings per share attributable to ordinary equity holders of the parent | RMB 2.21 cents | RMB 2.77 cents | Interim Condensed Consolidated Statement of Financial Position This statement provides a snapshot of the Group's financial position, detailing non-current assets, current assets, current liabilities, and total equity as of June 30, 2025 Consolidated Financial Position As of June 30, 2025, the Group's total non-current assets were RMB 12,052 thousand, total current assets were RMB 502,078 thousand, net current assets were RMB 312,317 thousand, and total equity was RMB 300,278 thousand Summary of Interim Condensed Consolidated Statement of Financial Position (As of June 30) | Metric | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Non-current assets | | | | Property and equipment | 4,455 | 4,348 | | Intangible assets | 52 | 70 | | Investment in an associate | 87 | 57 | | Deferred tax assets | 7,458 | 5,051 | | Total non-current assets | 12,052 | 9,526 | | Current assets | | | | Inventories | 702 | 719 | | Trade receivables | 195,359 | 153,294 | | Amounts due from related companies | 81,316 | 104,625 | | Prepayments, other receivables and other assets | 60,650 | 61,602 | | Cash and cash equivalents | 164,051 | 137,178 | | Pledged deposits | – | 2,902 | | Total current assets | 502,078 | 460,320 | | Current liabilities | | | | Trade payables | 20,227 | 24,530 | | Other payables, deposits received and accrued charges | 72,832 | 57,433 | | Contract liabilities | 48,523 | 49,950 | | Tax payable | 27,866 | 32,980 | | Dividends payable | 9,779 | – | | Deferred tax liabilities | 2,534 | 2,241 | | Interest-bearing bank borrowings | 8,000 | – | | Total current liabilities | 189,761 | 167,134 | | Net current assets | 312,317 | 293,186 | | Total assets less current liabilities | 324,369 | 302,712 | | Non-current liabilities | | | | Contract liabilities | 4,091 | 3,369 | | Interest-bearing bank borrowings | 20,000 | – | | Total non-current liabilities | 24,091 | 3,369 | | Net assets | 300,278 | 299,343 | | Total equity | 300,278 | 299,343 | Interim Condensed Consolidated Statement of Changes in Equity This statement outlines the changes in the Group's total equity, including profit for the period, transfers to statutory reserves, and dividends declared, for the six months ended June 30, 2025 Consolidated Equity Movements For the six months ended June 30, 2025, the Group's total equity increased from RMB 299,343 thousand at the beginning of the period to RMB 300,278 thousand at the end, primarily reflecting the impact of profit for the period, transfers from retained earnings, and dividends declared Summary of Interim Condensed Consolidated Statement of Changes in Equity (Six Months Ended June 30) | Metric | Share Capital (RMB '000) | Share Premium (RMB '000) | Statutory Reserve (RMB '000) | Retained Earnings (RMB '000) | Total Attributable to Owners of the Parent (RMB '000) | Non-controlling Interests (RMB '000) | Total Equity (RMB '000) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | As of January 1, 2025 (Audited) | 4,731 | 65,512 | 19,786 | 208,193 | 298,222 | 1,121 | 299,343 | | Profit and total comprehensive income for the period | – | – | – | 11,419 | 11,419 | (515) | 10,904 | | Transfer from retained earnings | – | – | 290 | (290) | – | – | – | | Dividends paid to non-controlling shareholders | – | – | – | (190) | (190) | – | (190) | | Dividends declared | – | – | – | (9,779) | (9,779) | – | (9,779) | | As of June 30, 2025 (Unaudited) | 4,731 | 65,512 | 20,076 | 209,353 | 299,672 | 606 | 300,278 | | As of January 1, 2024 (Audited) | 4,731 | 65,512 | 17,951 | 184,715 | 272,909 | 1,847 | 274,756 | | Profit and total comprehensive income for the period | – | – | – | 14,354 | 14,354 | (94) | 14,260 | | Transfer from retained earnings | – | – | 429 | (429) | – | – | – | | Dividends declared | – | – | – | (12,653) | (12,653) | – | (12,653) | | As of June 30, 2024 (Unaudited) | 4,731 | 65,512 | 18,380 | 185,987 | 274,610 | 1,753 | 276,363 | Interim Condensed Consolidated Statement of Cash Flows This statement details the Group's cash flows from operating, investing, and financing activities, and the resulting change in cash and cash equivalents for the six months ended June 30, 2025 Consolidated Cash Flow Activities For the six months ended June 30, 2025, the Group generated RMB 39 thousand in net cash from operating activities, used RMB 585 thousand in net cash for investing activities, generated RMB 27,420 thousand in net cash from financing activities, with cash and cash equivalents totaling RMB 164,051 thousand at period-end Summary of Interim Condensed Consolidated Statement of Cash Flows (Six Months Ended June 30) | Source of Cash Flow | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Net cash flows generated from/(used in) operating activities | 39 | (28,578) | | Net cash flows used in investing activities | (585) | (505) | | Net cash flows generated from financing activities | 27,420 | – | | Net increase/(decrease) in cash and cash equivalents | 26,874 | (29,083) | | Cash and cash equivalents at beginning of period | 137,178 | 177,306 | | Net effect of foreign exchange rate changes | (1) | – | | Cash and cash equivalents at end of period | 164,051 | 148,223 | Notes to Interim Condensed Consolidated Financial Information This section provides detailed explanatory notes to the interim condensed consolidated financial information, covering company details, accounting policies, segment information, and specific financial line items Corporate Information (Note 1) The Company, an investment holding company, was incorporated in the Cayman Islands on November 16, 2020, with the Group primarily providing property management, value-added services for property developers, and community value-added services in China - The Company was incorporated in the Cayman Islands on November 16, 2020, and is an investment holding company[164][165][169] - The Group primarily provides property management services, value-added services mainly for property developers, and community value-added services in the People's Republic of China[166][169] Basis of Preparation and Changes in Accounting Policies (Note 2) The interim condensed consolidated financial information is prepared in accordance with IAS 34 and is consistent with the accounting policies adopted in the annual consolidated financial statements for the year ended December 31, 2024, with amendments to IAS 21 having no significant impact on the Group's financial information - The interim condensed consolidated financial information has been prepared in accordance with International Accounting Standard 34 "Interim Financial Reporting"[167][170] - The accounting policies are consistent with those applied in the annual consolidated financial statements for the year ended December 31, 2024[171][174] - Amendments to International Accounting Standard 21 "Lack of Exchangeability" had no impact on the interim condensed consolidated financial information[172][174] Operating Segment Information (Note 3) Management views the Group's business as a single operating segment, with all revenue derived from mainland China and no non-current assets located outside mainland China; revenue from the remaining Zhong An Group accounted for 16.92% of the Group's total revenue - Management reviews the operating results of the Group's business as one operating segment to make decisions about resource allocation and performance assessment[173][175] - All of the Group's revenue from external customers is derived from mainland China operations, with no non-current assets located outside mainland China[176][178] - For the six months ended June 30, 2025, revenue from Zhong An and its subsidiaries (collectively, the "Remaining Zhong An Group"), excluding the Group, accounted for 16.92% of the Group's revenue (2024: 14.02%)[177][179] Revenue (Note 4) The Group's revenue primarily stems from property management services, value-added services for property developers, and community value-added services, all generated from mainland China; most revenue is recognized over time, while some community value-added service revenue is recognized at a point in time Analysis of Revenue from Contracts with Customers (Six Months Ended June 30) | Type of Service | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Property management services | 186,521 | 153,423 | | Value-added services primarily for property developers | 14,259 | 18,099 | | Community value-added services | 13,705 | 10,623 | | Total | 214,485 | 182,145 | - All revenue is derived from the mainland China market[183] - For the six months ended June 30, 2025, revenue recognized over time was RMB 208,879 thousand, and revenue recognized at a point in time was RMB 5,606 thousand[183] Profit Before Tax (Note 5) The Group's profit before tax is stated after deducting items such as cost of services provided, impairment of trade receivables, depreciation of property and equipment, amortization of intangible assets, and staff costs; for the six months ended June 30, 2025, total staff costs amounted to RMB 105,817 thousand Summary of Deductions from Profit Before Tax (Six Months Ended June 30) | Item | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Cost of services provided | 149,001 | 124,434 | | Impairment of trade receivables | 10,503 | 3,862 | | Depreciation of property and equipment items | 478 | 460 | | Amortisation of intangible assets | 18 | 18 | | Total staff costs | 105,817 | 122,147 | Income Tax (Note 6) The Group is subject to income tax on profits arising in or derived from the tax jurisdictions on an entity basis, with mainland China corporate income tax provided at a rate of 25%; for the six months ended June 30, 2025, total tax expense for the period was RMB 5,061 thousand - Mainland China corporate income tax has been provided at a rate of 25% on the assessable profits of the Group's subsidiaries in China[187][188] Analysis of Income Tax Expense (Six Months Ended June 30) | Item | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Current tax—Mainland China | 7,175 | 5,416 | | Deferred tax | (2,114) | (599) | | Total tax expense for the period | 5,061 | 4,817 | Dividend (Note 7) On June 5, 2025, shareholders approved a final dividend of RMB 1.89 cents per ordinary share for the year ended December 31, 2024, totaling approximately RMB 9,779,000 - On June 5, 2025, the Company's shareholders approved at the annual general meeting a final dividend of RMB 1.89 cents per ordinary share for the year ended December 31, 2024, totaling approximately RMB 9,779,000[190][191] Earnings Per Share Attributable to Ordinary Equity Holders of the Parent (Note 8) For the six months ended June 30, 2025, basic earnings per share attributable to ordinary equity holders of the parent was RMB 2.21 cents, calculated based on profit for the period of RMB 11,419,000 and a weighted average of 517,414,000 ordinary shares Calculation of Basic Earnings Per Share (Six Months Ended June 30) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Profit attributable to ordinary equity holders of the parent (RMB '000) | 11,419 | 14,354 | | Weighted average number of ordinary shares in issue during the period | 517,414,000 | 517,414,000 | | Basic earnings per share | RMB 2.21 cents | RMB 2.77 cents | - The Group had no potentially dilutive ordinary shares in issue during the period ended June 30, 2025[194][196] Property and Equipment (Note 9) For the six months ended June 30, 2025, the Group's cost of purchasing property and equipment was RMB 585,000 - For the six months ended June 30, 2025, the Group's cost of purchasing property and equipment was RMB 585,000 (2024: RMB 505,000)[195][197] Trade Receivables (Note 10) As of June 30, 2025, total trade receivables amounted to RMB 195,359 thousand, with the largest proportion due within six months Ageing Analysis of Trade Receivables (As of End of Reporting Period) | Ageing | June 30, 2025 (RMB '000) | December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Within 6 months | 81,478 | 71,555 | | Over 6 months but within 1 year | 32,567 | 28,601 | | Over 1 year but within 2 years | 61,645 | 42,514 | | Over 2 years but within 3 years | 19,669 | 10,624 | | Total | 195,359 | 153,294 | Cash and Cash Equivalents (Note 11) As of June 30, 2025, total cash and cash equivalents amounted to RMB 164,051 thousand, primarily denominated in RMB Analysis of Cash and Cash Equivalents Balance (As of End of Reporting Period) | Item | June 30, 2025 (RMB '000) | December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Cash and bank balances | 164,051 | 137,178 | | Pledged deposits | – | 2,902 | | Total | 164,051 | 140,080 | | Denominated in: | | | | RMB | 164,008 | 140,053 | | HKD | 43 | 27 | | Total | 164,051 | 140,080 | Trade Payables (Note 12) As of June 30, 2025, total trade payables amounted to RMB 20,227 thousand, with the largest proportion due within three months Ageing Analysis of Trade Payables (As of End of Reporting Period) | Ageing | June 30, 2025 (RMB '000) | December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Within 3 months | 17,670 | 22,822 | | 3 to 12 months | 1,982 | 1,532 | | 12 to 24 months | 478 | 170 | | Over 24 months | 97 | 6 | | Total | 20,227 | 24,530 | Share Capital (Note 13) As of June 30, 2025, the Company's authorized share capital comprised 1,000,000,000 ordinary shares of HK$0.01 each, with 517,414,000 issued and fully paid shares, amounting to RMB 4,731 thousand in share capital Overview of Share Capital Movements (As of June 30, 2025) | Item | Number of Shares Issued | Share Capital (HK$) | Share Capital (RMB '000) | | :--- | :--- | :--- | :--- | | As of January 1, 2024, December 31, 2024, and June 30, 2025 | 517,414,000 | 5,174,140 | 4,731 | Related Party Transactions (Note 14) The Group engaged in various related party transactions, including property management revenue, value-added services revenue for property developers, and community value-added services revenue; as of June 30, 2025, amounts due from related parties totaled RMB 81,316 thousand Summary of Significant Related Party Transactions (Six Months Ended June 30) | Type of Transaction | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Property management income from related parties | 21,980 | 10,238 | | Value-added services income from related parties for property developers | 10,996 | 15,864 | | Community value-added services income from related parties | 5,044 | 2,136 | | Lease expenses | 153 | – | Amounts Due from Related Parties (As of End of Reporting Period) | Type of Related Party | June 30, 2025 (RMB '000) | December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Fellow subsidiaries of the Group | 77,176 | 99,875 | | Associates of fellow subsidiaries of the Group | 2,876 | 2,807 | | Joint ventures of fellow subsidiaries of the Group | 1,264 | 1,943 | | Total | 81,316 | 104,625 | - Total remuneration for the Group's key management personnel amounted to RMB 1,560 thousand (2024: RMB 2,276 thousand)[213] Contingent Liabilities (Note 15) As of June 30, 2025, and December 31, 2024, the Group had no significant contingent liabilities - As of June 30, 2025, and December 31, 2024, the Group had no significant contingent liabilities[214][215] Events After the Reporting Period (Note 16) No significant events requiring additional disclosure or adjustment occurred after the end of the reporting period - No significant events requiring additional disclosure or adjustment occurred after the end of the reporting period[214][216]