金融街物业(01502) - 2025 - 中期财报

Company Information During the reporting period, the company's board of directors saw changes, with Ms. Lü Min appointed as an employee representative director, Mr. Meng Chunying and Mr. Han Fengxiang as non-executive directors, and Ms. Xue Rui, Ms. Hu Yuxia, and Mr. Li Liang retiring as directors; the registered office is in Beijing, China, and the principal place of business in Hong Kong is at Hopewell Centre, Wan Chai - Board members changed, with Ms. Lü Min, Mr. Meng Chunying, and Mr. Han Fengxiang appointed, while Ms. Xue Rui, Ms. Hu Yuxia, and Mr. Li Liang retired[4][64] - The company's registered office is located at No. 33 Financial Street, Xicheng District, Beijing, China[4] - The principal place of business in Hong Kong is located at 46/F, Hopewell Centre, 183 Queen's Road East, Wan Chai, Hong Kong[6] - The auditor is Grant Thornton Hong Kong Limited[6] Chairman's Statement Chairman Mr. Sun Jie presented the unaudited consolidated results for the six months ended June 30, 2025, highlighting stable development, business expansion in high-tier regions, diversified service offerings, technology empowerment for efficiency, and a focus on service quality - In the first half of 2025, the property management industry maintained diversified development, with high-quality services and standardized governance becoming key focuses[7] - The Group continued to deepen its presence in key regions such as Beijing-Tianjin-Hebei, Yangtze River Delta, and Greater Bay Area, as well as first and second-tier high-tier cities' property management markets[8] - New projects include the Huairou Party School and Disaster Recovery Center of China Development Bank, the Management Cadre College of the National Forestry and Grassland Administration, and the Chinese People's Liberation Army Navy Museum[8] - A "1+N" business layout has been formed, with property management as the core business and value-added services developing synergistically, optimizing the operating mechanism for value-added services[9] - Increased application of digital technology, upgraded the headquarters budget system's permission management module, and promoted intelligent transformation of power distribution rooms in managed projects[10] - Awarded "2025 China Property Service Top 100 Enterprises TOP14" and "2025 China Office Property Management Excellent Enterprise" among other honors[11] Management Discussion and Analysis This chapter reviews the Group's business operations and financial performance for the first half of 2025, noting significant growth in managed area and projects, particularly in non-residential and independent third-party segments, alongside increased revenue but decreased gross margin due to market competition and cost pressures - The Group's managed area was approximately 49.59 million square meters, a year-on-year increase of 12.8%, with 391 managed projects, an increase of 65 year-on-year[14] - Non-residential property managed area was approximately 28.49 million square meters, accounting for approximately 57.4%[14] - Among the newly added managed area in the first half of the year, projects from independent third parties accounted for 90.7%[14] - Revenue increased from RMB813.69 million in the first half of 2024 to RMB951.38 million in the first half of 2025, an increase of approximately 16.92%[38][39] - Overall gross margin decreased from 15.71% in the first half of 2024 to 13.51% in the first half of 2025, a decrease of 2.20 percentage points[42] Business Review As a comprehensive property management service provider for commercial properties, the Group continued to expand in first and second-tier cities and key regional markets in the first half of 2025, consolidating its advantages in commercial office and public building sectors, achieving significant growth in managed area and projects, with independent third-party projects contributing prominently - The Group has provided property management services for over 31 years, with operations extending to 26 provinces and cities across seven major regions[14] - As of June 30, 2025, the managed area was approximately 49.59 million square meters, a year-on-year increase of 12.8%[14] - There were 391 managed projects, an increase of 65 year-on-year[14] - Non-residential property managed area was approximately 28.49 million square meters, accounting for approximately 57.4%[14] - In the first half of the year, newly added managed area from independent third-party projects accounted for 90.7%[14] Overview and Business Development The Group, as a leading comprehensive property management service provider for commercial properties, continues to deepen its presence in first and second-tier cities and key regional markets, excelling in commercial office and public building sectors, successfully expanding with new projects across various property types - The Group specializes in high-end property management services, with over 31 years of experience[14] - Operations cover seven major regions: North China, Southwest, East China, South China, Northeast, Central China, and Northwest[14] - Newly added representative projects include the Huairou Party School and Disaster Recovery Center of China Development Bank, the Management Cadre College of the National Forestry and Grassland Administration, the Chinese People's Liberation Army Navy Museum, China Industrial and Commercial Bank Huaian Branch, and Hong Kong Fu Bao Garden project[15][18][19][20][24] Property Management and Related Services As of June 30, 2025, the Group's property management and related services covered 26 provinces, municipalities, autonomous regions, and special administrative regions across seven major regions of China, with a total managed gross floor area of 49.59 million square meters and 391 managed properties, showing growth in both contracted and managed areas, with independent third-party projects exceeding 57% Managed Gross Floor Area and Number of Properties (as of June 30) | Indicator | 2025 | 2024 | | :--- | :--- | :--- | | Contracted Gross Floor Area (thousand square meters) | 50,892 | 45,912 | | Managed Gross Floor Area (thousand square meters) | 49,586 | 43,956 | | Number of Managed Properties | 391 | 326 | Managed Gross Floor Area and Number of Properties by Region (as of June 30, 2025) | Region | Managed Gross Floor Area (thousand square meters) | Number of Managed Properties | | :--- | :--- | :--- | | North China | 20,656 | 172 | | Southwest | 6,932 | 37 | | East China | 7,339 | 48 | | South China | 9,474 | 105 | | Northeast | 2,020 | 14 | | Central China | 1,566 | 9 | | Northwest | 1,599 | 6 | | Total | 49,586 | 391 | Managed Gross Floor Area and Number of Properties by Property Type (as of June 30, 2025) | Property Type | Managed Gross Floor Area (thousand square meters) | Percentage (%) | Number of Managed Properties | | :--- | :--- | :--- | :--- | | Retail Commercial Buildings and Hotels | 461 | 0.9 | 9 | | Office Buildings | 8,319 | 16.8 | 77 | | Integrated Complexes | 1,200 | 2.4 | 5 | | Residential Properties | 21,100 | 42.6 | 150 | | Public Properties, Hospitals, Educational Properties and Others | 18,506 | 37.3 | 150 | | Total | 49,586 | 100 | 391 | Managed Gross Floor Area by Revenue Model (as of June 30) | Revenue Model | 2025 (thousand square meters) | Percentage (%) | 2024 (thousand square meters) | Percentage (%) | | :--- | :--- | :--- | :--- | :--- | | Lump Sum Basis | 45,143 | 91.0 | 39,875 | 90.7 | | Commission Basis | 4,443 | 9.0 | 4,081 | 9.3 | | Total | 49,586 | 100 | 43,956 | 100 | Managed Gross Floor Area and Number of Properties by Property Developer (as of June 30) | Developer Type | 2025 (thousand square meters) | Percentage (%) | 2025 Number of Properties | 2024 (thousand square meters) | Percentage (%) | 2024 Number of Properties | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Financial Street Affiliated Group | 20,976 | 42.3 | 141 | 20,066 | 45.7 | 136 | | Independent Third Parties | 28,610 | 57.7 | 250 | 23,890 | 54.3 | 190 | | Total | 49,586 | 100 | 391 | 43,956 | 100 | 326 | Value-Added Services The Group's value-added services comprise six segments, including operational business, consulting services, asset operation, resource management, customized services, and other income, with its own brand "IZEE" covering property brokerage, lifestyle services, and business support, leveraging the "Financial Street Property Life Online" platform to enhance customer engagement - Value-added services consist of six segments: operational business, consulting services, asset operation, resource management, customized services, and other income[36] - Established its own value-added service brand "IZEE", covering property brokerage, lifestyle services, and business support[36] - Built the "Financial Street Property Life Online" platform to integrate smart operations with value-added services[36] Future Outlook The Group will continue to prioritize service, consolidate and deepen its core advantages in commercial office and public building sectors, strengthen market expansion in core city clusters, enhance service quality through refined operations, standards improvement, and process optimization, and build a unique and competitive value-added service system for commercial properties to promote long-term healthy and stable development - Adhere to service-oriented principles, deepening core advantages in commercial office and public building sectors[37] - Focus on first and second-tier core city clusters, strengthening market expansion efforts[37] - Enhance customer satisfaction through refined operations, standards improvement, and process optimization[37] - Explore and build a unique and competitive value-added service system tailored for commercial property types[37] Financial Review The Group's revenue increased by 16.92% in the first half of 2025, primarily driven by property management services, but catering service revenue declined; cost of sales and services increased with business expansion, leading to a decrease in gross margin, while profit and total comprehensive income for the period slightly decreased due to market conditions, rising costs, and exchange losses, though the Group's financial position remains stable with sufficient cash and bank balances, despite increases in trade and other receivables and payables Key Financial Indicators Comparison (for the six months ended June 30) | Indicator | 2025 (RMB thousand) | 2024 (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 951,377 | 813,694 | +16.92% | | Cost of Sales and Services | (822,842) | (685,829) | +19.98% | | Gross Profit | 128,535 | 127,865 | +0.52% | | Gross Margin | 13.51% | 15.71% | -2.20pp | | Administrative Expenses | (42,657) | (37,983) | +12.32% | | Income Tax Expense | (22,171) | (20,848) | +6.35% | | Profit for the Period | 70,134 | 71,345 | -1.71% | | Total Comprehensive Income | 68,419 | 71,572 | -4.40% | - As of June 30, 2025, cash and bank balances were approximately RMB1,603.17 million, a decrease of approximately RMB36.04 million compared to December 31, 2024[48] - Net current assets were approximately RMB1,151.26 million, and the current ratio was approximately 2.13 times[48] - Bills and trade receivables were approximately RMB458.03 million, an increase of 32.52% compared to December 31, 2024[50] - Trade payables balance was approximately RMB289.14 million, an increase of 17.98% compared to December 31, 2024[51] Revenue The Group's revenue primarily derives from property management and related services, as well as catering services; for the six months ended June 30, 2025, total revenue increased by 16.92% to RMB951.38 million, driven by property management and value-added services, while catering service revenue decreased due to business model optimization Revenue Breakdown (for the six months ended June 30) | Service Type | 2025 (RMB thousand) | Percentage (%) | 2024 (RMB thousand) | Percentage (%) | Change (RMB thousand) | Change Rate (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Property Management Services | 765,341 | 80.45 | 631,968 | 77.67 | 133,373 | 21.10 | | Value-Added Services | 153,653 | 16.15 | 147,446 | 18.12 | 6,207 | 4.21 | | Leasing Services | 4,088 | 0.43 | 4,638 | 0.57 | (550) | (11.86) | | Catering Services | 28,295 | 2.97 | 29,642 | 3.64 | (1,347) | (4.54) | | Total | 951,377 | 100 | 813,694 | 100 | 137,683 | 16.92 | - Revenue from property management and related services increased by 17.73%, primarily due to an increase in managed projects[39] - Catering service revenue decreased due to optimization and adjustment of the catering business model[40] Cost of Sales and Services The Group's cost of sales and services, primarily comprising subcontracting costs, employee benefits, utilities, and raw materials, increased by 19.98% to RMB822.84 million for the six months ended June 30, 2025, reflecting business expansion - Cost of sales and services increased from RMB685.83 million in the first half of 2024 to RMB822.84 million in the first half of 2025, an increase of approximately 19.98%[41] - Costs increased with business expansion[41] Gross Profit and Gross Margin The Group's overall gross profit increased by 0.52% to RMB128.54 million for the six months ended June 30, 2025, but the overall gross margin decreased by 2.20 percentage points to 13.51%, primarily due to market conditions and increased competition, despite an improvement in catering service gross margin Gross Profit and Gross Margin (for the six months ended June 30) | Service Type | 2025 Gross Profit (RMB thousand) | 2025 Gross Margin (%) | 2024 Gross Profit (RMB thousand) | 2024 Gross Margin (%) | Change Amount (RMB thousand) | Gross Margin Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Commercial Properties | 94,127 | 21.00 | 96,162 | 22.57 | (2,035) | (1.57) | | Non-Commercial Properties | 34,731 | 7.31 | 34,065 | 9.52 | 666 | (2.21) | | Catering Services | (323) | (1.14) | (2,362) | (7.97) | 2,039 | 6.83 | | Total | 128,535 | 13.51 | 127,865 | 15.71 | 670 | (2.20) | - Revenue continued to grow, but gross margin remained under pressure due to market conditions and increased competition[42] Administrative Expenses The Group's administrative expenses increased by approximately 12.32% to RMB42.66 million for the six months ended June 30, 2025, primarily due to the expansion of business scale - Administrative expenses increased from RMB37.98 million in the first half of 2024 to RMB42.66 million in the first half of 2025, an increase of approximately 12.32%[44] - Administrative expenses increased with the expansion of business scale[44] Income Tax Expense The Group's income tax expense increased from RMB20.85 million in the first half of 2024 to RMB22.17 million in the first half of 2025, despite profit before tax remaining largely stable, due to varying applicable tax rates across companies and tax adjustments - Income tax expense increased from RMB20.85 million in the first half of 2024 to RMB22.17 million in the first half of 2025[45] - Profit before tax remained largely stable, with the slight increase in income tax expense influenced by varying applicable tax rates across companies and tax adjustments[45] Profit for the Period The Group's profit for the period decreased by approximately 1.71% to RMB70.13 million for the six months ended June 30, 2025, primarily due to market conditions, rigid cost increases, and a decline in gross margin, leading to lower profitability - Profit for the period decreased from RMB71.35 million in the first half of 2024 to RMB70.13 million in the first half of 2025, a decrease of approximately 1.71%[46] - The decrease in profitability was mainly due to market conditions, rigid cost increases, and a decline in gross margin[46] Total Comprehensive Income for the Period The Group's total comprehensive income for the period decreased by approximately 4.40% to RMB68.42 million for the six months ended June 30, 2025, primarily due to exchange losses from the translation of foreign currency financial statements - Total comprehensive income decreased from RMB71.57 million in the first half of 2024 to RMB68.42 million in the first half of 2025, a decrease of approximately 4.40%[47] - The change was primarily due to exchange losses arising from the translation of foreign currency financial statements[47] Liquidity, Capital Structure and Financial Resources As of June 30, 2025, the Group's cash and bank balances were approximately RMB1,603.17 million, a decrease of RMB36.04 million from December 31, 2024; the Group maintained a stable financial position with net current assets of approximately RMB1,151.26 million and a current ratio of approximately 2.13 times, with no borrowings during the reporting period Liquidity Indicators (as of June 30) | Indicator | June 30, 2025 (RMB million) | December 31, 2024 (RMB million) | Change (RMB million) | | :--- | :--- | :--- | :--- | | Cash and Bank Balances | 1,603.17 | 1,639.21 | (36.04) | | Net Current Assets | 1,151.26 | 1,169.46 | (18.20) | | Current Ratio (times) | 2.13 | 2.31 | (0.18) | - As of June 30, 2025, the Group had no borrowings[49] Bills and Trade Receivables and Other Financial Assets Measured at Amortized Cost As of June 30, 2025, the Group's bills and trade receivables increased by 32.52% to approximately RMB458.03 million, mainly due to increased managed gross floor area and unexpired trade receivables; other financial assets measured at amortized cost increased by approximately RMB75.07 million to RMB155.78 million, primarily from finance lease receivables related to asset operation businesses Bills and Trade Receivables (as of June 30) | Indicator | June 30, 2025 (RMB million) | December 31, 2024 (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | | Bills and Trade Receivables | 458.03 | 345.64 | +32.52% | - The increase was mainly due to increased trade receivables from property management services resulting from the increase in total managed gross floor area, and unexpired trade receivables[50] Other Financial Assets Measured at Amortized Cost (as of June 30) | Indicator | June 30, 2025 (RMB million) | December 31, 2024 (RMB million) | Change (RMB million) | | :--- | :--- | :--- | :--- | | Total Other Financial Assets | 155.78 | 80.71 | +75.07 | - The increase was mainly due to finance lease receivables arising from undertaking asset operation businesses[50] Trade and Other Payables As of June 30, 2025, the Group's trade payables increased by 17.98% to approximately RMB289.14 million due to business expansion; salaries and welfare payables increased by 9.54% to RMB111.99 million due to accrued bonuses, and other payables increased by 0.81% to RMB326.35 million, reflecting normal business fluctuations Trade and Other Payables (as of June 30) | Indicator | June 30, 2025 (RMB million) | December 31, 2024 (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | | Trade Payables | 289.14 | 245.07 | +17.98% | | Salaries and Welfare Payables | 111.99 | 102.24 | +9.54% | | Other Payables | 326.35 | 323.72 | +0.81% | - The increase in trade payables was mainly due to the expansion of business scale[51] - The increase in salaries and welfare payables was mainly due to the accrual of bonuses during the reporting period[51] Use of Proceeds from Listing The net proceeds from the Company's H-share listing were approximately HKD710.48 million (equivalent to RMB648.36 million); the Board resolved to change the use of the unutilized portion to continue market expansion, joint ventures, and investment acquisitions; as of June 30, 2025, RMB191.49 million had been utilized, with RMB456.87 million unutilized, expected to be fully utilized by December 31, 2026 - The net proceeds from the listing were approximately HKD710.48 million (equivalent to approximately RMB648.36 million)[52] - The Board resolved to change the use of the unutilized portion of the net proceeds to continue market expansion, joint ventures, and investment acquisitions[52] Analysis of Use of Net Proceeds from Listing (as of June 30, 2025) | Use | Net Proceeds After Reallocation (RMB million) | Actual Utilized (RMB million) | Utilized During Reporting Period (RMB million) | Unutilized Net Proceeds (RMB million) | Expected Timeline for Full Utilization of Remaining Balance | | :--- | :--- | :--- | :--- | :--- | :--- | | Seeking strategic acquisition and investment opportunities and establishing new branches and subsidiaries to expand the Group's business scale | 517.87 | 142.89 | 0.16 | 374.98 | By December 31, 2026 | | Developing the Group's value-added services business | 49.12 | 40.63 | — | 8.49 | By December 31, 2026 | | Information technology and smart facility system construction and upgrade | 16.53 | 7.97 | 0.33 | 8.56 | By December 31, 2026 | | The Group's working capital and general corporate purposes | 64.84 | — | — | 64.84 | By December 31, 2026 | | Total | 648.36 | 191.49 | 0.49 | 456.87 | | Pledge of Assets As of June 30, 2025, the Group had no assets pledged - As of June 30, 2025, the Group had no assets pledged[55] Material Acquisitions and Disposals of Subsidiaries, Associates and Joint Ventures For the six months ended June 30, 2025, the Group had no material acquisitions or disposals of subsidiaries, associates, or joint ventures - For the six months ended June 30, 2025, the Group had no material acquisitions or disposals of subsidiaries, associates, or joint ventures[56] Future Plans for Material Investments, Disposals and Capital Assets For the six months ended June 30, 2025, the Group had no material investments, disposals, or additions to capital assets, nor any related plans - For the six months ended June 30, 2025, the Group had no material investments, disposals, or additions to capital assets, nor any related plans[57] Gearing Ratio As of June 30, 2025, the Group's gearing ratio was 0.45, an increase from 0.41 as of December 31, 2024; the capital gearing ratio is not applicable as the Group had no interest-bearing borrowings Gearing Ratio (as of June 30) | Indicator | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Gearing Ratio | 0.45 | 0.41 | - As of June 30, 2025, and December 31, 2024, the Group had no interest-bearing borrowings, thus the capital gearing ratio is not applicable[58] Contingent Liabilities As of June 30, 2025, the Group had no contingent liabilities - As of June 30, 2025, the Group had no contingent liabilities[59] Financial Policy The Group adopts a prudent financial management approach, maintaining a stable liquidity position throughout the year, with the Board closely monitoring liquidity to ensure the capital structure of assets, liabilities, and commitments meets funding requirements - The Group adopts a prudent financial management approach and has maintained a stable liquidity position throughout the year[60] - The Board closely monitors the Group's liquidity position to ensure that the liquidity structure of its assets, liabilities, and commitments can meet its funding requirements at all times[60] Foreign Exchange Risk and Other Risks Operating primarily in China and Hong Kong with transactions in RMB and HKD, the Group faces foreign exchange risk, currently without a hedging policy but with management monitoring and considering hedging; additionally, the property management industry's close ties to the macroeconomy and real estate sector expose the Group to external uncertainties, which it mitigates by enhancing service quality to boost competitiveness - The Group's business is primarily conducted in RMB and HKD in China and Hong Kong, facing foreign exchange risk[61] - The Group currently has no foreign currency hedging policy, but management closely monitors and considers hedging[62] - The property management industry is closely related to China's macroeconomic development and the real estate industry, and the Group may be affected by external environmental uncertainties[62] - The Group continuously strengthens service quality and enhances its competitiveness to minimize external risks[62] Employees and Remuneration Policy As of June 30, 2025, the Group employed 5,283 staff, with remuneration based on performance, skills, knowledge, experience, and market trends, subject to regular review, including discretionary bonuses; the Group also provides training to enhance employee skills and production techniques - As of June 30, 2025, the Group employed 5,283 staff[63] - Employee remuneration is based on performance, skills, knowledge, experience, and market trends, and is reviewed regularly[63] - Employees may receive discretionary bonuses based on individual performance[63] - The Group provides training to employees to acquire basic skills and enhance production techniques for new employees[63] Corporate Governance and Other Information This chapter details the company's corporate governance matters and compliance during the reporting period, including changes in the board composition, amendments to the articles of association, and changes in joint company secretaries; the company adheres to high standards of corporate governance, complying with the Listing Rules and the Model Code for Securities Transactions by Directors, and discloses interests of major shareholders, the audit committee's composition, and the decision not to declare an interim dividend - Board composition changed, with Ms. Lü Min, Mr. Meng Chunying, and Mr. Han Fengxiang appointed, while Ms. Xue Rui, Ms. Hu Yuxia, and Mr. Li Liang retired[64] - Certain clauses of the company's articles of association were approved for amendment by shareholders at the annual general meeting held on June 5, 2025[65] - Mr. Chen Xi resigned as joint company secretary, and Ms. Zhang Jing was appointed[66] - The company has complied with the code provisions set out in Appendix C1 to the Listing Rules, "Corporate Governance Code," during the reporting period[71] - The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2025[81] Significant Events During the reporting period, the company's board of directors saw changes, with Ms. Lü Min appointed as an employee representative director, Mr. Meng Chunying and Mr. Han Fengxiang as non-executive directors, and Ms. Xue Rui, Ms. Hu Yuxia, and Mr. Li Liang retiring; amendments to the articles of association were approved, and there was a change in joint company secretaries, with no other significant events post-reporting period - Board composition changed, with Ms. Lü Min elected as an employee representative director, Mr. Meng Chunying and Mr. Han Fengxiang appointed as non-executive directors, and Ms. Xue Rui, Ms. Hu Yuxia, and Mr. Li Liang retiring as directors[64] - Certain clauses of the company's articles of association were approved for amendment by shareholders at the annual general meeting held on June 5, 2025[65] - Mr. Chen Xi resigned as joint company secretary, and Ms. Zhang Jing was appointed[66] - No other significant events occurred after the reporting period and up to the date of this report[67] Purchase, Sale or Redemption of the Company's Listed Securities or Redeemable Securities For the six months ended June 30, 2025, neither the Company nor its subsidiaries purchased, sold, or redeemed any of the Company's listed securities, and as of June 30, 2025, the Company held no treasury shares - For the six months ended June 30, 2025, neither the Company nor its subsidiaries purchased, sold, or redeemed any of the Company's listed securities[69] - As of June 30, 2025, the Company held no treasury shares[69] Compliance with Corporate Governance Code The Board is committed to achieving a high standard of corporate governance to meet stakeholders' needs and promote sustainable development, believing that good governance forms the foundation for effective management, business growth, and a healthy corporate culture; during the reporting period, the Company consistently complied with the code provisions of Appendix C1 to the Listing Rules, "Corporate Governance Code" - The Board is committed to achieving a high standard of corporate governance to meet the needs of the Group's stakeholders, build their confidence in the Group, and enable the Group's sustainable development[70] - During the reporting period, the Company consistently complied with the code provisions set out in Appendix C1 to the Listing Rules, "Corporate Governance Code"[71] Compliance with Securities Dealing Code The Company has adopted Appendix C3 to the Listing Rules, "Model Code for Securities Transactions by Directors of Listed Issuers," as a code of conduct for all directors and supervisors regarding the Company's securities transactions; all directors and supervisors confirmed compliance during the reporting period, and no breaches by relevant management personnel or employees were noted - The Company has adopted Appendix C3 to the Listing Rules, "Model Code for Securities Transactions by Directors of Listed Issuers," as a code of conduct governing securities transactions by all directors and supervisors of the Company[72] - Following specific inquiries to all directors and supervisors, they confirmed compliance with the standard requirements set out in the Model Code during the reporting period[72] - The Company was not aware of any breaches of the Model Code by relevant personnel and employees during the reporting period[72] Changes in Information of Directors and Senior Management During the reporting period, the Company had no changes in information of directors and senior management requiring disclosure under Rule 13.51B(1) of the Listing Rules - During the reporting period, the Company had no changes in information of directors and senior management requiring disclosure under Rule 13.51B(1) of the Listing Rules[73] Directors' and Chief Executive's Interests and Short Positions in Shares, Underlying Shares and Debentures of the Company As of June 30, 2025, none of the Company's directors or chief executive had any interests or short positions in the shares, underlying shares, or debentures of the Company or any of its associated corporations that were required to be disclosed to the Company and the Hong Kong Stock Exchange under Part XV of the Securities and Futures Ordinance, or recorded in the register referred to in that Ordinance, or notified to the Company and the Hong Kong Stock Exchange under the Model Code - As of June 30, 2025, none of the Company's directors or chief executive had any disclosable interests or short positions in the shares, underlying shares, or debentures of the Company or any of its associated corporations[74] Substantial Shareholders' and Other Persons' Interests and Short Positions in Shares and Underlying Shares of the Company As of June 30, 2025, substantial shareholders and other persons held interests or short positions in the Company's shares or underlying shares requiring disclosure or recording under Part XV of the Securities and Futures Ordinance, including Beijing Huarong Comprehensive Investment Co., Ltd. and its affiliates, Beijing Tiantai Real Estate Co., Ltd. and its affiliates, and Beijing Rongxin Hetai Enterprise Management Co., Ltd. as major domestic shareholders, and UBS Asset Management (Hong Kong) Ltd, UBS Group AG, Barings LLC, Northern Trust Fiduciary Services (Ireland) Limited, FIL Limited, Pandanus Associates Inc., Pandanus Partners L.P., FIDELITY FUNDS, and Liu Haiyan as major H-share shareholders Substantial Shareholders' and Other Persons' Interests and Short Positions in Shares and Underlying Shares of the Company (as of June 30, 2025) | Shareholder Name | Share Class | Capacity | Number of Shares/Underlying Shares Held (shares) | Percentage of Relevant Share Class (%) | Percentage of Total Shares (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | Beijing Huarong Comprehensive Investment Co., Ltd. | Domestic Shares | Beneficial Owner | 128,299,270(L) | 47.52 | 34.35 | | Beijing Financial Street Investment (Group) Co., Ltd. | Domestic Shares | Interest in Controlled Corporation | 128,299,270(L) | 47.52 | 34.35 | | Beijing Financial Street Capital Operation Group Co., Ltd. | Domestic Shares | Interest in Controlled Corporation | 128,299,270(L) | 47.52 | 34.35 | | Beijing Tiantai Real Estate Co., Ltd. | Domestic Shares | Beneficial Owner | 79,620,438(L) | 29.49 | 21.32 | | China Life Real Estate Investment Management Co., Ltd. | Domestic Shares | Interest in Controlled Corporation | 79,620,438(L) | 29.49 | 21.32 | | China Life Investment Insurance Asset Management Co., Ltd. | Domestic Shares | Interest in Controlled Corporation | 79,620,438(L) | 29.49 | 21.32 | | China Life Insurance (Group) Company | Domestic Shares | Interest in Controlled Corporation | 79,620,438(L) | 29.49 | 21.32 | | Beijing Rongxin Hetai Enterprise Management Co., Ltd. | Domestic Shares | Beneficial Owner | 62,080,292(L) | 22.99 | 16.62 | | UBS Asset Management (Hong Kong) Ltd | H Shares | Investment Manager | 6,292,000(L) | 6.08 | 1.68 | | UBS Group AG | H Shares | Interest in Controlled Corporation | 17,547,268(L) | 16.95 | 4.70 | | Barings LLC | H Shares | Investment Manager | 6,972,000(L) | 6.73 | 1.87 | | Northern Trust Fiduciary Services (Ireland) Limited | H Shares | Trustee | 6,705,000(L) | 6.47 | 1.80 | | FIL Limited | H Shares | Interest in Controlled Corporation | 10,350,000(L) | 10.00 | 2.77 | | Pandanus Associates Inc. | H Shares | Interest in Controlled Corporation | 10,350,000(L) | 10.00 | 2.77 | | Pandanus Partners L.P. | H Shares | Interest in Controlled Corporation | 10,350,000(L) | 10.00 | 2.77 | | FIDELITY FUNDS | H Shares | Beneficial Owner | 5,532,000(L) | 5.34 | 1.48 | | Liu Haiyan | H Shares | Beneficial Owner | 7,280,000(L) | 7.03 | 1.95 | Audit Committee The Company has established an Audit Committee in compliance with the Listing Rules and the Corporate Governance Code, comprising three members: Ms. Tong Yan (Chairperson), Mr. Guo Mingming, and Mr. Song Baocheng; the Committee has reviewed the unaudited interim results and interim report for the six months ended June 30, 2025, and the condensed consolidated interim financial statements have been reviewed by the independent auditor, Grant Thornton Hong Kong Limited - The Audit Committee consists of three members: Ms. Tong Yan (Chairperson), Mr. Guo Mingming, and Mr. Song Baocheng[80] - The Audit Committee has reviewed the unaudited interim results and interim report for the six months ended June 30, 2025[80] - The independent auditor, Grant Thornton Hong Kong Limited, has reviewed the condensed consolidated interim financial statements[80] Interim Dividend The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2025 - The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2025[81] Independent Review Report Grant Thornton Hong Kong Limited reviewed the condensed consolidated interim financial statements of Financial Street Property Co., Ltd. and its subsidiaries for the six months ended June 30, 2025, in accordance with Hong Kong Standard on Review Engagements 2410; the review scope is less than an audit, thus no audit opinion is expressed, and based on the review, no matters were found to suggest that the condensed consolidated interim financial statements are not prepared in all material respects in accordance with Hong Kong Accounting Standard 34 - The auditor has reviewed the condensed consolidated interim financial statements in accordance with Hong Kong Standard on Review Engagements 2410[84] - The scope of a review is substantially less than that of an audit conducted in accordance with Hong Kong Standards on Auditing, and consequently, no audit opinion is expressed[84] - The auditor has not found anything that causes them to believe that the condensed consolidated interim financial statements are not prepared, in all material respects, in accordance with Hong Kong Accounting Standard 34[85] Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income For the six months ended June 30, 2025, the Group's revenue was RMB951.38 million, a 16.92% year-on-year increase, but rising cost of sales and services led to a decrease in gross margin; profit for the period was RMB70.13 million, down 1.71% year-on-year, and total comprehensive income was RMB68.42 million, down 4.40% year-on-year, with basic earnings per share at RMB0.154 Summary of Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (for the six months ended June 30) | Indicator | 2025 (RMB thousand) | 2024 (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 951,377 | 813,694 | +16.92% | | Cost of Sales and Services | (822,842) | (685,829) | +19.98% | | Gross Profit | 128,535 | 127,865 | +0.52% | | Operating Profit | 86,689 | 86,969 | -0.32% | | Profit Before Income Tax | 92,305 | 92,193 | +0.12% | | Profit for the Period | 70,134 | 71,345 | -1.71% | | Profit Attributable to Owners of the Company for the Period | 57,607 | 63,467 | -9.10% | | Basic Earnings Per Share (RMB) | 0.154 | 0.170 | -9.39% | | Total Comprehensive Income for the Period | 68,419 | 71,572 | -4.40% | - Other comprehensive loss for the period mainly arose from exchange differences on translation of financial statements of overseas operations[89] Condensed Consolidated Statement of Financial Position As of June 30, 2025, the Group's total assets were RMB2,484.79 million, a 6.67% increase from December 31, 2024, driven by a 17.97% rise in non-current assets due to increased investment properties and other financial assets measured at amortized cost, and a 5.20% increase in current assets, notably bills and trade receivables; total equity was RMB1,375.91 million, and total liabilities were RMB1,108.88 million, up 15.46% from year-end Summary of Condensed Consolidated Statement of Financial Position (as of June 30) | Indicator | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Total Non-Current Assets | 315,962 | 267,829 | +17.97% | | Total Current Assets | 2,168,829 | 2,061,672 | +5.20% | | Total Assets | 2,484,791 | 2,329,501 | +6.67% | | Total Equity | 1,375,912 | 1,369,073 | +0.50% | | Total Non-Current Liabilities | 91,311 | 68,213 | +33.85% | | Total Current Liabilities | 1,017,568 | 892,215 | +14.05% | | Total Liabilities | 1,108,879 | 960,428 | +15.46% | - Investment properties increased to RMB32.28 million, while property, plant and equipment decreased to RMB43.48 million[91] - Bills and trade receivables increased to RMB458.03 million[91] - Trade and other payables (current) increased to RMB844.90 million[92] Condensed Consolidated Statement of Changes in Equity For the six months ended June 30, 2025, total equity attributable to owners of the Company was RMB1,295.63 million, a slight decrease from the beginning of the period; profit for the period was RMB57.61 million, but dividends declared of RMB58.64 million and other comprehensive losses led to a small reduction in total equity, while non-controlling interests increased Summary of Condensed Consolidated Statement of Changes in Equity (for the six months ended June 30) | Indicator | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Balance at January 1, 2025 (Attributable to Owners of the Company) | 1,297,861 | 1,245,824 | | Profit for the Period (Attributable to Owners of the Company) | 57,607 | 63,467 | | Total Comprehensive Income/(Loss) for the Period (Attributable to Owners of the Company) | 56,407 | 63,592 | | Dividends Declared (Attributable to Owners of the Company) | (58,640) | (64,616) | | Balance at June 30, 2025 (Attributable to Owners of the Company) | 1,295,628 | 1,244,800 | | Non-Controlling Interests (End of Period) | 80,284 | 54,484 | | Total Equity (End of Period) | 1,375,912 | 1,299,284 | - Dividends declared of RMB58.64 million led to a decrease in retained earnings attributable to owners of the Company[94] - Exchange reserve decreased due to other comprehensive loss for the period[94] Condensed Consolidated Statement of Cash Flows For the six months ended June 30, 2025, net cash used in operating activities was RMB(22.30) million, a deterioration from net cash generated of RMB36.45 million in the prior year; net cash generated from investing activities was RMB8.41 million, and net cash used in financing activities was RMB(19.29) million, resulting in a decrease in cash and cash equivalents to RMB1,424.37 million at period-end Summary of Condensed Consolidated Statement of Cash Flows (for the six months ended June 30) | Indicator | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Net Cash (Used in)/Generated from Operating Activities | (22,297) | 36,453 | | Net Cash Generated from Investing Activities | 8,413 | 68,209 | | Net Cash Used in Financing Activities | (19,287) | (17,547) | | Net (Decrease)/Increase in Cash and Cash Equivalents | (33,171) | 87,115 | | Cash and Cash Equivalents at End of Period | 1,424,365 | 1,403,839 | - Operating cash flow shifted from net inflow to net outflow, mainly due to decreased cash generated from operations and increased income tax paid[95] - Net cash generated from investing activities significantly decreased, primarily due to an increase in bank deposits with maturities over three months reducing cash inflow, and dividend income from associates in the prior period[95] Notes to the Condensed Consolidated Financial Statements This chapter provides detailed notes to the condensed consolidated interim financial statements, covering the basis of preparation, accounting policy revisions, key accounting estimates and judgments, financial risk management, segment information, revenue composition, other income and gains, finance income, income tax expense, dividends, earnings per share, investment properties and property, plant and equipment, interests in associates and joint ventures, bills and trade receivables, other financial assets, share capital, reserves, and trade and other payables, along with disclosures on related party transactions and balances - The condensed consolidated interim financial statements are prepared in accordance with the applicable disclosure requirements of the Listing Rules of the Stock Exchange and Hong Kong Accounting Standard 34 "Interim Financial Reporting" issued by the Hong Kong Institute of Certified Public Accountants[99] - For the six months ended June 30, 2025, there was only one operating segment[106] - For the six months ended June 30, 2025, transactions with Financial Street Affiliated Group accounted for 6% of the Group's revenue (2024: 9%)[107] - Expected credit loss provision for trade receivables increased by RMB4.095 million during the period[114][131] - As of June 30, 2025, the present value of finance lease receivables was RMB77.10 million, a significant increase from RMB16.97 million as of December 31, 2024[132][134] Basis of Preparation of Interim Financial Statements The condensed consolidated interim financial statements for the six months ended June 30, 2025, are prepared in accordance with the applicable disclosure requirements of the Listing Rules of the Stock Exchange and Hong Kong Accounting Standard 34 "Interim Financial Reporting"; the Group adopted revised Hong Kong Financial Reporting Standards effective January 1, 2025, with no significant impact on results or financial position - The condensed consolidated interim financial statements are prepared in accordance with the applicable disclosure requirements of the Listing Rules of the Stock Exchange and Hong Kong Accounting Standard 34 "Interim Financial Reporting" issued by the Hong Kong Institute of Certified Public Accountants[99] - Revised Hong Kong Financial Reporting Standards effective January 1, 2025, have been adopted, but are not expected to have any significant impact on the preparation and presentation of the Group's results and financial position for the current and prior periods[101][102] Critical Accounting Estimates and Judgements In preparing the interim financial statements, management is required to make judgments, estimates, and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income, and expenses; the significant judgments and key sources of estimation uncertainty made in these condensed consolidated interim financial statements are the same as those applied in the consolidated financial statements for the year ended December 31, 2024 - In preparing the interim financial statements, management is required to make judgments, estimates, and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income, and expenses[103] - Critical accounting estimates and judgments are the same as those applied in the consolidated financial statements for the year ended December 31, 2024[103] Financial Risk Management The Group's activities are exposed to various financial risks, including market risk (foreign exchange risk and interest rate risk), credit risk, and liquidity risk; there have been no significant changes in the Group's risk management policies since the year ended December 31, 2024 - The Group's activities are exposed to various financial risks: market risk (including foreign exchange risk and interest rate risk), credit risk, and liquidity risk[104] - There have been no significant changes in the Group's risk management policies since the year ended December 31, 2024[105] Segments The Board, as the chief operating decision-maker, identifies operating segments for resource allocation and performance assessment; for the six months ended June 30, 2025 and 2024, the Group was primarily engaged in providing property management and related services in China and Hong Kong, and the Board considers there to be only one operating segment - For the six months ended June 30, 2025 and 2024, the Group was primarily engaged in providing property management and related services in China and Hong Kong[106] - The Board considers that, in accordance with Hong Kong Financial Reporting Standard 8, there was only one operating segment for the six months ended June 30, 2025 and 2024[106] Revenue For the six months ended June 30, 2025, the Group's total revenue was RMB951.38 million, primarily from property management and related services (including lump sum and commission-based property management services, community value-added services), as well as catering services and rental income; mainland China contributed the vast majority of external revenue, and transactions with Financial Street Affiliated Group accounted for 6% of the Group's revenue Revenue Sources Breakdown (for the six months ended June 30) | Revenue Source | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Property Management Service Revenue Recognized on a Lump Sum Basis | 754,157 | 623,463 | | Property Management Service Revenue Recognized on a Commission Basis | 11,184 | 8,505 | | Community Value-Added Services | 153,653 | 147,446 | | Catering Services | 28,295 | 29,642 | | Rental Income | 4,088 | 4,638 | | Total | 951,377 | 813,694 | External Revenue by Region (for the six months ended June 30) | Region | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Mainland China | 869,352 | 755,186 | | Hong Kong | 82,025 | 58,508 | | Total | 951,377 | 813,694 | - For the six months ended June 30, 2025, transactions with Financial Street Affiliated Group accounted for 6% of the Group's revenue (2024: 9%)[107] Other Income For the six months ended June 30, 2025, the Group's other income was RMB251 thousand, primarily from government grants, a decrease compared to RMB928 thousand in the same period of 2024 Other Income Breakdown (for the six months ended June 30) | Income Type | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Government Grants | 251 | 867 | | Recognized VAT Input Deduction | — | 61 | | Total | 251 | 928 | - Government grants are discretionary receipts from local Chinese government authorities for local business development and employment[110] Other Gains/(Losses), Net For the six months ended June 30, 2025, the Group recorded net other gains of RMB6,397 thousand, primarily from gains on disposal of right-of-use assets, a significant improvement from a net loss of RMB36 thousand in the same period of 2024 Other Gains/(Losses), Net (for the six months ended June 30) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Gain on Disposal of Right-of-Use Assets | 6,413 | — | | Net Loss on Derecognition upon Early Lease Termination | — | (29) | | Net Loss on Disposal of Property, Plant and Equipment | (57) | (82) | | Others | 41 | 75 | | Total | 6,397 | (36) | Finance Income, Net For the six months ended June 30, 2025, the Group's net finance income was RMB5,564 thousand, a slight decrease from RMB5,794 thousand in the same period of 2024; finance income mainly comprised interest from bank deposits, interest income from fellow subsidiaries, and finance lease interest income, while finance costs primarily included interest expense on lease liabilities and imputed interest expense on consideration payable related to subsidiary acquisitions Finance Income, Net (for the six months ended June 30) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Interest Income from Bank Deposits | 4,302 | 5,251 | | Interest Income from a Fellow Subsidiary | 2,706 | 1,997 | | Interest Income from Finance Leases | 1,208 | 538 | | Interest Expense on Lease Liabilities | (1,960) | (1,378) | | Imputed Interest Expense on Consideration Payable Related to Acquisition of a Subsidiary | (644) | (614) | | Net Interest Expense on Retirement Benefit Obligations | (48) | — | | Finance Income, Net | 5,564 | 5,794 | Profit Before Income Tax For the six months ended June 30, 2025, the Group's profit before income tax was RMB92.31 million, largely consistent with RMB92.19 million in the same period of 2024; this profit calculation includes staff costs, cleaning, security and maintenance service costs, depreciation, amortization of intangible assets, expected credit loss provisions, catering service raw material costs, lease expenses, and professional service fees Profit Before Income Tax Components (for the six months ended June 30) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Staff Costs — Included in Cost of Sales and Services | 308,676 | 275,387 | | Staff Costs — Included in Administrative Expenses | 25,608 | 22,228 | | Cleaning, Security and Maintenance Service Costs | 407,861 | 306,413 | | Depreciation of Property, Plant and Equipment | 12,474 | 12,571 | | Depreciation of Investment Properties | 4,359 | 2,752 | | Amortization of Intangible Assets | 1,944 | 1,722 | | Expected Credit Loss Provision for Trade Receivables | 4,095 | 4,001 | | Expected Credit Loss Provision for Other Financial Assets Measured at Amortized Cost | 1,742 | (196) | | Cost of Raw Materials and Consumables Used in Catering Services | 14,509 | 16,736 | | Short-Term Lease Expenses | 3,578 | 3,800 | | Lease Expenses for Low-Value Items | 3,912 | 3,725 | | Professional Service Fees | 1,871 | 2,866 | | Taxes and Surcharges | 4,326 | 3,596 | | Auditor's Remuneration — Audit Services | 521 | 521 | | Exchange Loss/(Gain), Net | 2 | (3) | Income Tax Expense For the six months ended June 30, 2025, the Group's income tax expense increased to RMB22.17 million from RMB20.85 million in the prior year; China's corporate income tax rate is 25%, with some small and micro enterprises enjoying a 5% preferential rate and Chongqing Jiangbeizui Property Service Co., Ltd. benefiting from a 15% preferential rate under the Western Development policy, while Hong Kong profits tax is calculated at 16.5%, with a two-tiered tax system for eligible entities Income Tax Expense Breakdown (for the six months ended June 30) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | China Corporate Income Tax | 25,360 | 31,494 | | Hong Kong Profits Tax | 1,804 | 805 | | Deferred Tax | (4,993) | (11,451) | | Total Income Tax Expense | 22,171 | 20,848 | - The general corporate income tax rate in China is 25%[117] - Some small and micro enterprises are approved to enjoy a preferential income tax rate of 5%[117] - Chongqing Jiangbeizui Property Service Co., Ltd. qualifies for the Western Development income tax preferential policy and enjoys a preferential income tax rate of 15%[117] - Hong Kong profits tax provision is calculated at 16.5% of the estimated assessable profits for the period, with a two-tiered tax system applicable to certain eligible entities[118] Dividends The Board recommended a dividend distribution of RMB58.64 million on March 27, 2025, which was approved at the shareholders' meeting on June 5, 2025; the Board resolved not to declare an interim dividend for the six months ended June 30, 2025 - At the Board meeting on March 27, 2025, a dividend distribution of RMB58,640,000 was proposed and approved at the shareholders' meeting on June 5, 2025[119] - The Board of Directors resolved not to declare an interim dividend for the six months ended June 30, 2025[120] Earnings Per Share For the six months ended June 30, 2025, basic earnings per share decreased to RMB0.154 from RMB0.170 in the prior year; diluted earnings per share were the same as basic earnings per share as the Group had no potential dilutive ordinary shares during the reporting period Basic Earnings Per Share (for the six months ended June 30) | Indicator | 2025 | 2024 | | :--- | :--- | :--- | | Profit Attributable to Owners of the Company (RMB thousand) | 57,607 | 63,467 | | Weighted Average Number of Ordinary Shares Issued (thousand shares) | 373,500 | 373,500 | | Basic Earnings Per Share (RMB) | 0.154 | 0.170 | - As the Group had no potential dilutive ordinary shares for the six months ended June 30, 2025 and 2024, diluted earnings per share were the same as basic earnings per share[123] Investment Properties and Property, Plant and Equipment As of June 30, 2025, the net book value of investment properties increased to RMB32.28 million, while the net book value of property, plant and equipment decreased to RMB43.48 million; additions to investment properties during the period amounted to RMB6.26 million, and additions to property, plant and equipment were RMB4.47 million Net Book Value of Investment Properties and Property, Plant and Equipment (as of June 30) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Net Book Value of Investment Properties | 32,282 | 34,106 | | Net Book Value of Property, Plant and Equipment | 43,480 | 46,133 | - Additions to investment properties during the period amounted to RMB6,260 thousand[124] - Additions to property, plant and equipment during the period amounted to RMB4,474 thousand[124] Interests in Associates As of June 30, 2025, the Group's interests in associates increased slightly to RMB7.55 million; profit attributable to associates after acquisition for the period was RMB26 thousand Changes in Interests in Associates (for the six months ended June 30) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Beginning of Period | 7,526 | 16,204 | | Share of Post-Acquisition Profit/(Loss) and Other Comprehensive Loss, Net of Dividends Received | 26 | (6,310) | | End of Period | 7,552 | 9,894 | Interests in Joint Ventures As of June 30, 2025, the Group's interests in joint ventures increased slightly to RMB2.89 million; profit attributable to joint ventures after acquisition for the period was RMB28 thousand Changes in Interests in Joint Ventures (for the six months ended June 30) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Beginning of Period | 2,857 | 2,552 | | Share of Post-Acquisition Profit and Other Comprehensive Income, Net of Dividends Received | 28 | 153 | | End of Period | 2,885 | 2,705 | Bills and Trade Receivables As of June 30, 2025, the Group's net bills and trade receivables significantly increased to RMB458.03 million from December 31, 2024; trade receivables (before loss allowance) were RMB492.85 million, mainly from third parties, with most amounts due within one year; an expected credit loss provision of RMB4.095 million was recognized during the period Bills and Trade Receivables (as of June 30) | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Trade Receivables (Related Parties) | 112,848 | 110,745 | | Trade Receivables (Third Parties) | 380,002 | 268,406 | | Less: Expected Credit Loss Provision for Trade Receivables | (37,350) | (33,511) | | Trade Receivables, Net | 455,500 | 345,640 | | Bills Receivable | 2,532 | — | | Bills and Trade Receivables, Net | 458,032 | 345,640 | - The credit period granted to trade customers r