彩生活(01778) - 2025 - 中期财报

Company Information Board of Directors and Committees This section details the names and appointment changes of the company's board members, including executive, non-executive, and independent non-executive directors, along with the composition and chairpersons of the Audit, Remuneration, and Nomination Committees - Executive Directors include Mr. Liu Hongcai (Executive President) and Ms. Yang Lan (Chief Financial Officer)[5] - Non-Executive Directors include Mr. Zhu Jindong (Chairman), Mr. Timothy David Gildner, Mr. Sha Feng (appointed on April 17, 2025), and Mr. Chen Wenjian (resigned on March 31, 2025)[5] - Independent Non-Executive Directors include Mr. Li Enhui, Mr. Li Xinhu (appointed on August 15, 2025), Ms. Yu Shan, and Mr. Zhang Yue (resigned on June 4, 2025)[5] Company Contact and Listing Information This section provides essential contact and listing details, including the company's registered office, principal places of business in China and Hong Kong, HKEX stock code (1778), website, auditor, share registrar, and principal bankers - The company's shares are listed on The Stock Exchange of Hong Kong Limited under stock code 1778[6] - The principal place of business and headquarters in China is located at 10/F, Block B, Bojin Business Center, No. 1 Tairan 7th Road, Futian District, Shenzhen, China[6] - The auditor is BDO Limited[6] Honors and Awards Honors and Awards In the first half of 2025, the company received multiple industry honors and awards for excellent performance in property services, digitalization, service capabilities, top 100 enterprises, technology empowerment, regional excellence, and growth potential for listed companies, as well as community value-added service capabilities - Awarded "Top 50 Property Service Enterprises for Excellent Performance in 2025" and "Top 10 Property Service Enterprises for Digitalization Excellence in 2025"[8] - Continuously recognized as a "Top 100 Property Service Enterprise in China" for 17 consecutive years[21] - Received "2025 Leading Property Technology Empowerment Enterprise in China" and "2025 Top 10 Property Service Listed Companies for Growth Potential in China"[10][16] - Recognized in regional markets such as Shenzhen and Chengdu as "2025 Top 10 Excellent Property Service Enterprises in Shenzhen" and "2025 Top 10 Excellent Property Service Enterprises in Chengdu"[12][13] Chairman's Report Macroeconomic Environment and Policy Orientation The report highlights that the Chinese property management industry is undergoing a transformation amidst a weak global economic recovery and increased domestic economic downward pressure, while national "14th Five-Year Plan" and policies from the Ministry of Housing and Urban-Rural Development and the Ministry of Civil Affairs provide support and new opportunities, driving the industry towards standardization, digitalization, green development, and "property services + elderly care" - Global economic recovery is weak, domestic economic pressure is high, and the property management industry faces a period of transformation[19] - The "14th Five-Year Plan," the Ministry of Housing and Urban-Rural Development's "Guiding Opinions on High-Quality Development of the Property Management Industry," and the "Smart Community Construction Guide" promote industry transformation towards standardization, digitalization, and green development[19] - The Ministry of Civil Affairs' "Property Services + Elderly Care" action plan provides new opportunities for expanding community services[19] Financial and Operational Highlights As of June 30, 2025, the company's revenue from main operations reached RMB 1,039.4 million, net profit was approximately RMB 28.6 million, and net profit attributable to equity holders of the company was RMB 23.9 million, with a total contracted GFA of 281 million square meters, serving 1,651 communities across 118 cities and over 7 million property owners 2025 H1 Key Financial Data | Indicator | Amount (RMB million) | | :--- | :--- | | Revenue from Main Operations | 1,039.4 | | Net Profit | 28.6 | | Net Profit Attributable to Equity Holders of the Company | 23.9 | 2025 H1 Operational Data | Indicator | Value | | :--- | :--- | | Total Contracted GFA | 281 million square meters | | Number of Communities Served | 1,651 | | Number of Cities Covered | 118 | | Number of Property Owners Served | Over 7 million | Core Strategies and Technology Empowerment The company continues to deepen its four core strategies: service quality improvement, digital ecosystem construction, green and low-carbon development, and community economy innovation, significantly enhancing operational efficiency and reducing costs through its self-developed property digitalization management platform and "Color Cloud Butler" smart customer service system, while integrating AI large model technology for intelligent breakthroughs in security patrols and quality control - Continuously deepening four core strategies: service quality improvement, digital ecosystem construction, green and low-carbon development, and community economy innovation[19] - Launched "Color Cloud Butler" smart customer service system, improving work efficiency by 75%, reducing operating costs by 50%, and releasing labor resources by 45%[23] - Built a "headquarters large AI model + project small AI model" platform system leveraging AI large model capabilities, with AI image recognition technology processing over 8 million images[23] - Newly launched "Employee AI Assistant" to enhance employee work efficiency through natural language processing technology[23] Customer Service and Community Activities The company initiated the "Daily 315" quality supervision program, handling over 86,000 property owner requests in the first half of the year with an 85% satisfaction rate, and invested RMB 26.85 million in quality improvement renovations for 354 projects, while actively engaging in community activities and expanding value-added services such as "Fantasia Insurance," "Color Optimal Choice" online shopping, smart drinking water solutions, home-based elderly care, and comprehensive home services to foster a warm community atmosphere and participate in public welfare - Initiated "Daily 315" quality supervision work, handling over 86,000 property owner requests in the first half of the year, receiving 1,670 commendations, with a satisfaction rate of 85%[24] - Invested RMB 26.85 million in the first half of the year to renovate and improve quality for 354 projects across dozens of cities[24] - Its "Fantasia Insurance" internet insurance service platform saw a 60% year-on-year growth in scale and a 17-fold year-on-year growth in profit in the first half of the year[25] - Launched "Color Optimal Choice" community online shopping platform, focusing on fresh produce, grains, oils, daily chemicals, and agricultural support, and introduced convenient water stations and ice cream wholesale as special services[27] - 100 smart on-site water vending machines have been deployed, covering 93 communities, attracting over 4,900 members, with plans to add 400 more units within the year, expecting to achieve RMB 30 million in revenue[27] - Elderly care business strategically partnered with Everbright Elderly Care Health Industry Development Co., Ltd. to build a "institutional, community, home" integrated elderly care service system, which has achieved cash flow balance[28] - Expanded comprehensive home services, collaborating with platforms like JD Daojia and Fengchao Daojia, covering diverse areas such as housekeeping, maintenance, and logistics[29] - Organized community IP events like "Color Christmas Festival" and "Colorful Neighbor Festival," covering over 1.1 million property owners, and held Gaokao assistance activities[31] - Conducted "Caring for Children with Special Needs" charity event, raising RMB 110,000 in donations in the first half of the year[33] Market Strategy and Organizational Transformation Facing industry challenges, the company deepened its "regional deep cultivation" strategy and optimized its "two-and-a-half-tier" management structure, enhancing regional market share and customer satisfaction through resource decentralization, talent activation, benchmark leadership, technology empowerment, and qualification building - Adhered to the "regional deep cultivation" strategy, optimizing the "two-and-a-half-tier" management structure (Group Headquarters - Regional Business Unit - Project Frontline)[36] - Decision-making efficiency improved by 40%, labor costs reduced by 15%, and talent utilization rate increased by 30%[36] - Added 62 intellectual property patents and software copyrights, with smart property management system coverage reaching 85% and AI security system recognition accuracy improving to 98%[36] - Acquired 23 new core qualifications including 3A credit certification, with revenue share from differentiated service products increasing to 35%[36] - In the first half of 2025, regional market share increased by 12%, and customer satisfaction reached a new historical high of 91 points[38] Future Outlook The company will continue to anchor its strategic direction, driven by innovation and centered on value creation, focusing on quality upgrades, service optimization, and value creation, striving to become a warm, caring, and innovation-leading benchmark for living services, creating beautiful living experiences for millions of families, and contributing to the high-quality development of the industry - Continue to anchor strategic direction, continuously enhance development momentum, and embrace innovation[39] - Steadfastly advance a quality-led development model, accurately grasp market trends, and strive to be an industry benchmark[39] - Reshape the core value of property services, focusing on quality upgrades, service optimization, and value creation[40] - Aspire to become a warm, caring, and innovation-leading benchmark for living services, creating comfortable and beautiful lives for millions of families[40] Management Discussion and Analysis Business Model As a leading property management and community service operator in China, the company focuses on basic property management services, leveraging internet technology to build online and offline platforms, providing "four-guarantee" services, enhancing service quality and efficiency through smart community construction, and expanding value-added businesses by fostering property owner engagement through community activities and the "Color Life" online platform - Core business involves basic "four-guarantee" services (cleaning, landscaping, security, maintenance) to ensure property owners' basic living needs[41] - Deeply promotes smart community construction, applying IoT, big data, AI, and other technologies to enhance service quality and efficiency[42] - Established a robust digital "cloud" system and "Property Digital Management Platform," equipped with AI large models to improve service efficiency[42] - Created the "Color Life" community online platform, enabling online payment of property management fees, notifications, and complaints, and assigning customer managers[43] Property Management Services Property management services are primarily offered under two models: lump-sum basis and commission basis; under the lump-sum basis, the company collects all management fees and bears related expenses, while under the commission basis, the company acts as an agent for property owners, retaining an agreed percentage (typically 10%) of management fees as revenue, with the remainder used for operating expenses - Property management services are categorized into lump-sum basis and commission basis[57][58] - Lump-sum basis: The company collects all management fees and pays related expenses, with associated costs recognized as cost of sales[59] - Commission basis: The company retains an agreed percentage (typically 10%) of management fees as revenue, with the remainder used for operating expenses[60] Value-Added Services Value-added services, guided by the philosophy of "bringing community services home," utilize an online and offline service system in collaboration with third parties to provide online promotion, sales and leasing assistance, engineering services, and other value-added offerings such as shopping assistance, energy management, charging piles, community direct drinking water, and insurance brokerage - Value-added services include online promotion services, sales and leasing assistance, engineering services, and other value-added services[62] - Online promotion services: Promoting products or services through the "Color Life" platform, collecting remuneration and information system software usage fees[64] - Sales and leasing assistance: Referring property agents, selling parking spaces on behalf, and leasing physical advertising spaces[65] - Engineering services: Provided through outsourcing and subsidiaries, including smart community renovation (hardware upgrades, cloud system connectivity, AI large model applications)[66][67] - Other value-added services: Including shopping assistance, energy management services, charging pile business, community direct drinking water business, and insurance brokerage[68] Business Development Through organic new appointments, the company's total contracted GFA reached 281.15 million square meters, serving 1,651 communities as of June 30, 2025, with 146.18 million square meters generating revenue; during the reporting period, both total contracted GFA and the number of communities decreased, primarily due to contract terminations - As of June 30, 2025, total contracted GFA was 281.15 million square meters, serving 1,651 communities[46][54] - As of June 30, 2025, the total contracted GFA generating revenue was 146.18 million square meters[46] Contracted GFA and Number of Communities Movement (2025 H1 vs 2024 Full Year) | Indicator | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total GFA at beginning of year (thousand sq.m.) | 306,817 | 356,025 | | Number of communities at beginning of year | 1,759 | 1,987 | | New appointments - Total GFA (thousand sq.m.) | 2,301 | 8,905 | | New appointments - Number of communities | 27 | 88 | | Terminated - Total GFA (thousand sq.m.) | (27,971) | (58,608) | | Terminated - Number of communities | (135) | (318) | | Total GFA at end of period (thousand sq.m.) | 281,147 | 306,817 | | Number of communities at end of period | 1,651 | 1,759 | Contracted GFA and Number of Communities The company acquires property management contracts through bidding, with the agreed-upon area recorded as "Total Contracted GFA," and the area that has been sold and generates management fees as "Total GFA Generating Revenue"; as of June 30, 2025, the total contracted GFA was 281.15 million square meters and the number of communities was 1,651, a decrease from the end of 2024 primarily due to contract terminations - Total contracted GFA includes GFA generating revenue, reserve GFA, and GFA under consultancy services[45] Total Managed GFA and Number of Communities by Region (June 30, 2025 vs December 31, 2024) | Region | June 30, 2025 Total GFA (thousand sq.m.) | June 30, 2025 Number of Communities | December 31, 2024 Total GFA (thousand sq.m.) | December 31, 2024 Number of Communities | | :--- | :--- | :--- | :--- | :--- | | Shenzhen | 5,338 | 80 | 5,063 | 76 | | South China (excluding Shenzhen) | 48,281 | 345 | 53,211 | 371 | | East China | 93,299 | 551 | 95,847 | 584 | | Southwest | 42,696 | 223 | 49,498 | 237 | | Northeast | 6,058 | 42 | 7,147 | 46 | | Northwest | 10,883 | 54 | 11,763 | 57 | | North China | 13,125 | 70 | 15,883 | 78 | | Central China | 61,467 | 286 | 68,405 | 310 | | Total | 281,147 | 1,651 | 306,817 | 1,759 | Property Management Fee Range Property management fee levels vary by property type, location, and management model (commission basis/lump-sum basis) across different regions, with the report listing the fee ranges for each region under both models as of June 30, 2025, and December 31, 2024 Property Management Fee Range by Region (RMB/sq.m./month) (June 30, 2025 vs December 31, 2024) | Region | June 30, 2025 Commission Basis | June 30, 2025 Lump-Sum Basis | December 31, 2024 Commission Basis | December 31, 2024 Lump-Sum Basis | | :--- | :--- | :--- | :--- | :--- | | Shenzhen | 0.4-11.4 | 1.8-16.9 | 0.4-11.4 | 1.8-16.9 | | South China (excluding Shenzhen) | 0.5-6.0 | 0.7-16.9 | 0.5-6.0 | 0.7-16.9 | | East China | 0.4-17.0 | 1.1-16.0 | 0.4-17.0 | 1.1-16.0 | | Southwest | 0.5-6.1 | 0.3-25.0 | 0.5-6.1 | 0.3-25.0 | | Northeast | 0.4-3.3 | 2.0-18.0 | 0.4-3.3 | 2.0-18.0 | | Northwest | 0.5-4.0 | 1.4-22.7 | 0.5-4.0 | 1.4-22.7 | | North China | 0.7-5.5 | 1.2-25.0 | 0.7-5.5 | 1.2-25.0 | | Central China | 0.6-5.3 | 0.9-16.9 | 0.6-5.3 | 0.9-16.9 | Review and Analysis This section provides a detailed analysis of the company's financial performance for the first half of 2025, with total revenue increasing by 6.7% to RMB 1,039.4 million, driven by a 6.9% growth in property management services and a 1.7% growth in value-added services; gross profit margin slightly decreased due to a higher proportion of lump-sum basis services, while trade receivables significantly increased and trade payables decreased, and the company strengthened its capital reserves through a rights issue with no significant investments or liabilities Revenue Analysis Total revenue for the first half of 2025 increased by 6.7% year-on-year to RMB 1,039.4 million, with property management service revenue growing by 6.9% to RMB 994.0 million (lump-sum basis revenue up 8.2%, commission basis revenue down 54.0%), and value-added service revenue increasing by 1.7% to RMB 45.4 million, primarily driven by a significant 142.0% growth in other value-added services (e.g., insurance brokerage, water dispensers, charging pile business), offsetting declines in online promotion, sales and leasing assistance, and engineering services 2025 H1 Total Revenue Composition and Year-on-Year Change | Revenue Source | 2025 (RMB '000) | % of Total | 2024 (RMB '000) | % of Total | Change (RMB '000) | Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Property Management Services | 994,040 | 95.6% | 929,842 | 95.4% | 64,198 | 6.9% | | Value-Added Services | 45,406 | 4.4% | 44,646 | 4.6% | 760 | 1.7% | | Total Revenue | 1,039,446 | 100% | 974,488 | 100.0% | 64,958 | 6.7% | 2025 H1 Property Management Service Revenue Composition and Year-on-Year Change | Property Management Service Type | 2025 (RMB '000) | % of Total | 2024 (RMB '000) | % of Total | Change (RMB '000) | Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Lump-Sum Basis | 985,018 | 94.8% | 910,208 | 93.4% | 74,810 | 8.2% | | Commission Basis | 9,022 | 0.8% | 19,634 | 2.0% | (10,612) | (54.0%) | | Total | 994,040 | 95.6% | 929,842 | 95.4% | 64,198 | 6.9% | 2025 H1 Value-Added Service Revenue Composition and Year-on-Year Change | Value-Added Service Type | 2025 (RMB '000) | % of Total | 2024 (RMB '000) | % of Total | Change (RMB '000) | Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Online Promotion Services | 4,047 | 0.4% | 8,429 | 0.9% | (4,382) | (52.0%) | | Sales and Leasing Assistance | 20,395 | 2.0% | 24,647 | 2.5% | (4,252) | (17.3%) | | Engineering Services | 1,947 | 0.2% | 3,713 | 0.4% | (1,766) | (47.6%) | | Other Value-Added Services | 19,017 | 1.8% | 7,857 | 0.8% | 11,160 | 142.0% | | Total | 45,406 | 4.4% | 44,646 | 4.6% | 760 | 1.7% | Cost of Services and Gross Profit In the first half of 2025, cost of services increased by 8.2% year-on-year to RMB 815.8 million, primarily due to an increase in lump-sum basis managed communities; overall gross profit increased by 1.5% to RMB 223.6 million, but the overall gross profit margin decreased by 1.1 percentage points to 21.5%, mainly due to the increased proportion of lower-margin lump-sum basis services - Cost of services increased by 8.2% year-on-year to RMB 815.8 million, primarily due to an increase in lump-sum basis managed communities[77] - Overall gross profit increased by 1.5% to RMB 223.6 million[78] - Overall gross profit margin decreased by 1.1 percentage points to 21.5% (2024 H1: 22.6%)[79] - Property management service gross profit margin decreased from 19.8% to 18.9%, and value-added service gross profit margin decreased from 81.5% to 78.3%[80][81] Other Income and Expenses In the first half of 2025, other losses increased to RMB 5.0 million, and other income decreased to RMB 9.8 million; selling and distribution expenses slightly increased, administrative expenses decreased by 1.1% to RMB 111.8 million, and finance costs decreased, while income tax expense increased to RMB 15.7 million 2025 H1 Other Income and Expenses Movement | Item | 2025 (RMB '000) | 2024 (RMB '000) | Change (RMB '000) | | :--- | :--- | :--- | :--- | | Other losses | (5,045) | (2,511) | (2,534) | | Other income | 9,771 | 10,992 | (1,221) | | Selling and distribution expenses | (2,214) | (1,976) | (238) | | Administrative expenses | (111,772) | (113,105) | 1,333 | | Finance costs | (1,070) | (1,237) | 167 | | Income tax expense | (15,702) | (13,314) | (2,388) | Balance Sheet Items As of June 30, 2025, goodwill remained unchanged at RMB 880.3 million, bank balances and cash decreased to RMB 778.5 million, trade receivables increased by 23.3% to RMB 923.0 million primarily due to an increase in lump-sum basis communities and seasonal factors, and trade payables decreased by 21.9% to RMB 390.2 million mainly due to shorter payment cycles - Goodwill carrying amount remained at RMB 880.3 million[87] - Bank balances and cash decreased to RMB 778.5 million (December 31, 2024: RMB 994.1 million)[88] - Trade receivables increased by 23.3% to RMB 923.0 million (December 31, 2024: RMB 748.5 million), mainly due to an increase in lump-sum basis communities and seasonal factors[89] - Trade payables decreased by 21.9% to RMB 390.2 million (December 31, 2024: RMB 500.0 million), primarily due to shorter payment cycles[94] Share Capital and Cash Position As of June 30, 2025, the total number of issued shares increased to 1,859,407,192 shares, and share capital increased to RMB 155.1 million, primarily due to a rights issue of 371,881,438 new shares, raising net proceeds of approximately HK$60.36 million for general working capital, AI technology applications, and community value-added service development; the current ratio improved to 3.4 times, and interest-bearing debts were repaid, resulting in no net debt to equity ratio - Total number of issued shares increased to 1,859,407,192 (December 31, 2024: 1,487,525,754 shares), and share capital increased to RMB 155.1 million[93] - Net proceeds of approximately HK$60.36 million were raised through a rights issue of 371,881,438 new shares[95] Net Proceeds from Rights Issue Utilization (as of June 30, 2025) | Purpose | % of Total Amount | Net Proceeds from Rights Issue (HK$ million) | Utilized during the period (HK$ million) | Unutilized Amount (HK$ million) | Expected Timeline | | :--- | :--- | :--- | :--- | :--- | :--- | | General working capital | 40% | 24.144 | 24.144 | – | Not applicable | | AI technology applications | 20% | 12.072 | 9.779 | 2.293 | End of 2025 | | Community value-added service development | 20% | 12.072 | 4.775 | 7.297 | End of 2025 | | Working capital reserve | 20% | 12.072 | 12.072 | – | Not applicable | | Total | 100.0% | 60.36 | 50.77 | 9.59 | | - Current ratio improved to 3.4 times (December 31, 2024: 3.1 times)[98] - Interest-bearing debts were repaid, resulting in no net debt to equity ratio as of June 30, 2025[99] Other Financial Information The company primarily operates in China and faces no significant direct foreign exchange fluctuation risks; as of June 30, 2025, the number of employees was 9,463, a decrease from the end of 2024, and there were no significant investments, asset pledges, contingent liabilities, major acquisitions or disposals of subsidiaries, associates, and joint ventures during the reporting period, and the board does not recommend an interim dividend - No significant direct foreign exchange fluctuation risks[101] - As of June 30, 2025, the number of employees was 9,463 (December 31, 2024: 10,191)[102] - No significant investments, asset pledges, contingent liabilities, or major acquisitions and disposals occurred during the reporting period[103][104][105][106] - The board does not recommend the payment of an interim dividend for the six months ended June 30, 2025[108] Corporate Governance and Other Information Corporate Governance Practices The company is committed to maintaining high standards of corporate governance and complies with the Corporate Governance Code set out in Appendix C1 of the Listing Rules; during the reporting period, due to the resignation of independent non-executive director Mr. Zhang Yue, the company temporarily failed to comply with Listing Rules requirements regarding the number of independent non-executive directors and committee composition, but has since rectified this with the appointment of Mr. Li Xinhu on August 15, 2025 - The company complies with the Corporate Governance Code in Appendix C1 of the Listing Rules[109] - Due to Mr. Zhang Yue's resignation, the company temporarily failed to comply with Listing Rules 3.10(1), 3.10A, 3.21, 3.25, 3.27A, and the terms of reference for the Nomination Committee[109] - The company has re-complied with the above requirements following the appointment of Mr. Li Xinhu as an independent non-executive director on August 15, 2025[109] Securities Transactions and Share Options During the reporting period, neither the company nor its subsidiaries purchased, sold, or redeemed any listed securities, nor did they hold any treasury shares, and directors confirmed compliance with the Model Code for Securities Transactions by Directors of Listed Issuers; the share option scheme expired on June 10, 2024, precluding further grants, and as of June 30, 2025, 26,377,199 share options remained unexercised, with some having lapsed on April 29, 2025 - As of June 30, 2025, neither the company nor its subsidiaries purchased, sold, or redeemed any of the company's listed securities during the six months ended[111] - Directors have confirmed compliance with the Model Code for Securities Transactions by Directors of Listed Issuers[113] - The share option scheme expired on June 10, 2024, and no further grants can be made[116] Share Option Scheme Movement (as of June 30, 2025) | Category of Grantees | Outstanding at Jan 1, 2025 (thousand options) | Shares issued during the period (thousand options) | Lapsed during the period (thousand options) | Cancelled during the period (thousand options) | Outstanding at June 30, 2025 (thousand options) | | :--- | :--- | :--- | :--- | :--- | :--- | | Directors | 2,557 | 6 | – | (168) | 2,395 | | Employees and non-controlling shareholders of certain subsidiaries | 32,403 | 78 | – | (8,500) | 23,981 | | Total | 34,960 | 84 | – | (8,668) | 26,376 | - Share options granted on April 30, 2015, lapsed after their exercise period expired on April 29, 2025[117] Directors' and Major Shareholders' Interests As of June 30, 2025, Executive Director Mr. Liu Hongcai held 122,292 relevant shares (share options), representing 0.00% of the issued share capital; Major Shareholder Ms. Zeng Baobao, through controlled corporations Ice Apex, Fantasy Pearl International Limited, and Yao Wei Fu Enterprise Limited, collectively held 1,301,467,396 shares, representing 69.99% of the issued share capital Directors' Interests in the Company's Securities (as of June 30, 2025) | Director's Name | Capacity/Nature of Interest | Number of Relevant Shares Held | Approximate Percentage of Issued Share Capital | | :--- | :--- | :--- | :--- | | Mr. Liu Hongcai | Beneficial owner | 122,292 (share options) | 0.00% | Major Shareholders' Interests in the Company's Securities (as of June 30, 2025) | Major Shareholder Name/Entity | Capacity | Number of Shares Held | Approximate Percentage of Issued Share Capital | | :--- | :--- | :--- | :--- | | Ms. Zeng Baobao | Interest in controlled corporations | 1,301,467,396 (L) | 69.99% | | Ice Apex | Interest in controlled corporations | 1,301,467,396 (L) | 69.99% | | Fantasy Pearl International Limited | Interest in controlled corporations/Beneficial owner | 782,407,472 (L) | 42.07% | | Fantasia Holdings Group Co., Ltd. | Beneficial owner | 780,104,676 (L) | 41.95% | | Shuang Xin Limited | Interest in controlled corporations | 519,059,924 (L) | 27.92% | | Yue Mei Holdings Limited | Interest in controlled corporations | 519,059,924 (L) | 27.92% | | Yao Wei Fu Enterprise Limited | Beneficial owner | 519,059,924 (L) | 27.92% | Review Report on Condensed Consolidated Financial Statements Review Report on Condensed Consolidated Financial Statements BDO Limited reviewed the condensed consolidated financial statements for the six months ended June 30, 2025; the scope of the review is less than an audit, but no material matters were identified that would lead to a belief that the financial statements were not prepared in accordance with Hong Kong Accounting Standard 34 - BDO Limited conducted a review of the condensed consolidated financial statements[129] - The review concluded that no matters were identified that would lead to a belief that the condensed consolidated financial statements were not prepared in all material respects in accordance with Hong Kong Accounting Standard 34[128] Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income For the six months ended June 30, 2025, the company achieved revenue from services of RMB 1,039,446 thousand, with a profit for the period of RMB 28,578 thousand, and profit for the period attributable to owners of the company of RMB 23,892 thousand; basic and diluted earnings per share were both RMB 1.42 cents Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income Summary (for the six months ended June 30, 2025) | Item | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Revenue from Services | 1,039,446 | 974,488 | | Cost of Services | (815,821) | (754,141) | | Gross Profit | 223,625 | 220,347 | | Profit Before Tax | 44,280 | 46,417 | | Income Tax Expense | (15,702) | (13,314) | | Profit for the Period | 28,578 | 33,103 | | Profit for the Period Attributable to Owners of the Company | 23,892 | 24,380 | | Profit for the Period Attributable to Non-Controlling Interests | 4,686 | 8,723 | | Total Comprehensive Income for the Period | 28,967 | 33,554 | | Earnings Per Share - Basic (RMB cents) | 1.42 | 1.63 | | Earnings Per Share - Diluted (RMB cents) | 1.42 | 1.63 | Condensed Consolidated Statement of Financial Position Condensed Consolidated Statement of Financial Position As of June 30, 2025, the company's total assets less current liabilities were RMB 4,566,848 thousand, and net assets were RMB 4,552,448 thousand; total non-current assets amounted to RMB 1,549,871 thousand, total current assets were RMB 4,254,996 thousand, and total current liabilities were RMB 1,238,019 thousand Condensed Consolidated Statement of Financial Position Summary (as of June 30, 2025) | Item | June 30, 2025 (RMB '000) | December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Non-Current Assets | | | | Property, Plant and Equipment | 68,278 | 60,112 | | Right-of-Use Assets | 185,589 | 196,197 | | Investment Properties | 17,128 | 17,748 | | Goodwill | 880,344 | 880,344 | | Total Non-Current Assets | 1,549,871 | 1,554,413 | | Current Assets | | | | Trade Receivables | 922,973 | 748,522 | | Other Receivables and Prepayments | 1,618,979 | 1,530,322 | | Bank Balances and Cash | 778,536 | 994,119 | | Total Current Assets | 4,254,996 | 4,362,381 | | Current Liabilities | | | | Trade Payables | 390,166 | 500,012 | | Other Payables and Accruals | 164,161 | 217,164 | | Total Current Liabilities | 1,238,019 | 1,415,259 | | Net Assets | 4,552,448 | 4,481,311 | | Equity Attributable to Owners of the Company | 4,365,971 | 4,286,798 | | Non-Controlling Interests | 186,477 | 194,513 | | Total Equity | 4,552,448 | 4,481,311 | Condensed Consolidated Statement of Changes in Equity Condensed Consolidated Statement of Changes in Equity For the six months ended June 30, 2025, total equity attributable to owners of the company was RMB 4,365,971 thousand, an increase from RMB 4,286,798 thousand at the beginning of the year, primarily due to profit for the period and increased share capital and share premium from the rights issue Condensed Consolidated Statement of Changes in Equity Summary (for the six months ended June 30, 2025) | Item | June 30, 2025 (RMB '000) | January 1, 2025 (RMB '000) | | :--- | :--- | :--- | | Equity Attributable to Owners of the Company | 4,365,971 | 4,286,798 | | Non-Controlling Interests | 186,477 | 194,513 | | Total Equity | 4,552,448 | 4,481,311 | | Profit for the Period (Attributable to Owners of the Company) | 23,892 | 24,380 (2024 H1) | | Rights Issue (Share Capital and Share Premium) | 55,785 | – | Condensed Consolidated Statement of Cash Flows Condensed Consolidated Statement of Cash Flows For the six months ended June 30, 2025, net cash used in operating activities was RMB (234,603) thousand, net cash used in investing activities was RMB (24,817) thousand, and net cash from financing activities was RMB 43,837 thousand; cash and cash equivalents at the end of the period amounted to RMB 778,536 thousand Condensed Consolidated Statement of Cash Flows Summary (for the six months ended June 30, 2025) | Item | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Net Cash Used in Operating Activities | (234,603) | (171,895) | | Net Cash Used in Investing Activities | (24,817) | (36,753) | | Net Cash From/(Used in) Financing Activities | 43,837 | (10,555) | | Net Decrease in Cash and Cash Equivalents | (215,583) | (219,203) | | Cash and Cash Equivalents at Beginning of Period | 994,119 | 947,904 | | Cash and Cash Equivalents at End of Period | 778,536 | 728,701 | Notes to the Condensed Consolidated Financial Statements Basis of Preparation and Accounting Policies The condensed consolidated financial statements are prepared in accordance with Hong Kong Accounting Standard 34 and the Listing Rules, adopting the historical cost basis, and the first-time application of HKAS 21 (Amendment) "Lack of Exchangeability" had no significant impact on financial position or performance - The condensed consolidated financial statements are prepared in accordance with Hong Kong Accounting Standard 34 "Interim Financial Reporting" issued by the Hong Kong Institute of Certified Public Accountants and the applicable disclosure requirements of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited[145] - The condensed consolidated financial statements are prepared on the historical cost basis, except for investment properties and certain financial instruments which are measured at fair value where applicable[146] - During the interim period, the Group first applied Hong Kong Accounting Standard 21 (Amendment) "Lack of Exchangeability," but it did not have a significant impact on the Group's financial position and performance in the current and prior periods and/or the disclosures contained in these condensed consolidated financial statements[147] Revenue and Segment Information Revenue primarily derives from property management services and value-added services, disaggregated by type of goods and services and timing of revenue recognition; management reviews the business as a single operating segment, with major operating entities and revenue originating from China, and no single customer accounts for 10% or more of total revenue 2025 H1 Disaggregation of Revenue from Contracts with Customers (RMB '000) | Type of Goods and Services | Property Management Services | Value-Added Services | Total | | :--- | :--- | :--- | :--- | | Lump-Sum Basis | 985,018 | – | 985,018 | | Commission Basis | 9,022 | – | 9,022 | | Online Promotion Services | – | 4,047 | 4,047 | | Sales and Leasing Assistance | – | 20,395 | 20,395 | | Engineering Services | – | 1,947 | 1,947 | | Other Value-Added Services | – | 19,017 | 19,017 | | Total | 994,040 | 45,406 | 1,039,446 | | Timing of Revenue Recognition: At a point in time | – | 2,958 | 2,958 | | Timing of Revenue Recognition: Over time | 994,040 | 42,448 | 1,036,488 | - Management reviews the business as a single operating segment, with major operating entities and revenue originating from China[154][156] - For the periods ended June 30, 2025, and 2024, revenue from sales to a single customer did not account for 10% or more of the Group's revenue[155] Income Tax Expense Income tax expense for the first half of 2025 was RMB 15,702 thousand, an increase from RMB 13,314 thousand in the same period of 2024, primarily comprising PRC enterprise income tax and deferred tax Income Tax Expense (for the six months ended June 30, 2025) | Item | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Current tax - PRC enterprise income tax | (19,946) | (14,372) | | Deferred tax - credited to profit or loss | 4,244 | 1,058 | | Total | (15,702) | (13,314) | Profit for the Period and Dividends Profit for the period in the first half of 2025 was RMB 28,578 thousand, primarily after deducting staff costs, depreciation, and impairment losses; the board does not recommend an interim dividend Profit for the Period Key Deductions/Additions (for the six months ended June 30, 2025) | Item | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Staff Costs | 318,091 | 314,889 | | Depreciation of Property, Plant and Equipment | 13,930 | 11,342 | | Depreciation of Right-of-Use Assets | 10,608 | 9,980 | | Net Exchange Loss/(Gain) | 845 | (85) | - The directors do not recommend the payment of an interim dividend for the six months ended June 30, 2025 (for the six months ended June 30, 2024: nil)[163] Earnings Per Share For the first half of 2025, basic and diluted earnings per share were both RMB 1.42 cents, calculated using a weighted average of 1,686,821 thousand ordinary shares Earnings Per Share Calculation Data (for the six months ended June 30, 2025) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Profit for the purpose of calculating basic and diluted earnings per share (RMB '000) | 23,892 | 24,380 | | Weighted average number of ordinary shares for the purpose of calculating basic and diluted earnings per share (thousand shares) | 1,686,821 | 1,492,857 | - For the periods ended June 30, 2025, and 2024, no assumption was made regarding the exercise of certain share options granted by the company for calculating diluted earnings per share, as the exercise price of the relevant share options was higher than the average market price per share[165] Asset Movements In the first half of 2025, the carrying amount of property, plant and equipment increased to RMB 68,278 thousand, right-of-use assets decreased to RMB 185,589 thousand, and investment properties' fair value decreased to RMB 17,128 thousand; goodwill remained unchanged at RMB 880,344 thousand and was allocated to cash-generating unit groups for impairment testing, with management concluding no impairment indicators Property, Plant and Equipment Movement (as of June 30, 2025) | Item | RMB '000 | | :--- | :--- | | January 1, 2025 | 60,112 | | Additions | 22,117 | | Depreciation for the period | (13,930) | | Disposals | (21) | | June 30, 2025 | 68,278 | Right-of-Use Assets Movement (as of June 30, 2025) | Item | RMB '000 | | :--- | :--- | | January 1, 2025 | 196,197 | | Depreciation for the period | (10,608) | | June 30, 2025 | 185,589 | Investment Properties Movement (as of June 30, 2025) | Item | RMB '000 | | :--- | :--- | | January 1, 2025 | 17,748 | | Net fair value change recognized in profit or loss | (620) | | June 30, 2025 | 17,128 | - Goodwill carrying amount remained at RMB 880,344 thousand, with no impairment identified[172][174] - Goodwill impairment testing used the value-in-use method, with a discount rate of 14.6% and a five-year growth rate of 2%-8%[175][176] Trade and Other Receivables and Prepayments As of June 30, 2025, trade receivables (net of allowance for credit losses) amounted to RMB 922,973 thousand, a 23.3% increase from the end of 2024; other receivables and prepayments (net of allowance for credit losses) were RMB 1,624,179 thousand, a 5.8% increase from the end of 2024 Trade and Other Receivables and Prepayments (as of June 30, 2025) | Item | June 30, 2025 (RMB '000) | December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Trade Receivables (net of allowance) | 922,973 | 748,522 | | Other Receivables and Prepayments (net of allowance) | 1,624,179 | 1,535,804 | | Total | 2,547,152 | 2,284,326 | Trade Receivables Ageing Analysis (as of June 30, 2025) | Ageing | June 30, 2025 (RMB '000) | December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | 0 to 30 days | 182,374 | 149,984 | | 31 to 90 days | 166,064 | 118,570 | | 91 to 180 days | 186,502 | 146,846 | | 181 to 365 days | 222,029 | 176,282 | | Over 1 year | 166,004 | 156,840 | | Total | 922,973 | 748,522 | Loans Receivable As of June 30, 2025, loans receivable (net of allowance for credit losses) amounted to RMB 78,502 thousand, a decrease from RMB 103,785 thousand at the end of 2024 Loans Receivable (as of June 30, 2025) | Item | June 30, 2025 (RMB '000) | December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Fixed-rate loans | 194,737 | 194,737 | | Less: Allowance for credit losses | (116,235) | (90,952) | | Total | 78,502 | 103,785 | Amounts Paid/Received on Behalf of Property Owners As of June 30, 2025, amounts paid on behalf of property owners (net of allowance for credit losses) were RMB 702,356 thousand, and amounts received on behalf of property owners were RMB 32,986 thousand Amounts Paid/Received on Behalf of Property Owners (as of June 30, 2025) | Item | June 30, 2025 (RMB '000) | December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Amounts Paid on Behalf of Property Owners (net of allowance) | 702,356 | 820,684 | | Amounts Received on Behalf of Property Owners | 32,986 | 47,722 | Pledged/Restricted Bank Deposits As of June 30, 2025, restricted bank balances amounted to RMB 63,858 thousand, primarily consisting of balances frozen by court notices for unresolved legal proceedings - As of June 30, 2025, restricted bank balances amounted to RMB 63,858 thousand, primarily consisting of balances frozen by court notices for unresolved legal proceedings[186] Impairment Losses under Expected Credit Loss Model In the first half of 2025, total impairment losses recognized under the expected credit loss model amounted to RMB 65,793 thousand, a significant increase from RMB 33,214 thousand in the same period of 2024, primarily related to trade and other receivables, amounts due from related parties, and loans receivable Impairment Losses (for the six months ended June 30, 2025) | Item | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Trade and Other Receivables | (18,435) | (13,675) | | Contract Assets | (4,397) | (4) | | Amounts Paid on Behalf of Property Owners | (6,563) | (3,171) | | Amounts Due from Related Parties | (11,115) | (1,289) | | Loans Receivable | (25,283) | (15,075) | | Total | (65,793) | (33,214) | Trade and Other Payables and Accruals As of June 30, 2025, trade payables were RMB 390,166 thousand, and other payables and accruals were RMB 164,161 thousand, totaling RMB 554,327 thousand; trade payables decreased from the end of 2024, mainly due to shorter payment cycles Trade and Other Payables and Accruals (as of June 30, 2025) | Item | June 30, 2025 (RMB '000) | December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Trade Payables | 390,166 | 500,012 | | Other Payables and Accruals | 164,161 | 217,164 | | Total | 554,327 | 717,176 | Trade Payables Ageing Analysis (as of June 30, 2025) | Ageing | June 30, 2025 (RMB '000) | December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | 0 to 60 days | 166,346 | 240,934 | | 61 to 180 days | 151,469 | 165,423 | | 181 to 365 days | 60,745 | 81,005 | | Over 1 year | 11,606 | 12,650 | | Total | 390,166 | 500,012 | Share Capital As of June 30, 2025, the company's issued and fully paid share capital comprised 1,859,407 thousand shares, amounting to RMB 155,070 thousand, primarily due to the rights issue of 371,881,438 new shares Share Capital Movement (as of June 30, 2025) | Item | Number of Shares (thousand shares) | Amount (HK$'000) | Amount (RMB '000) | | :--- | :--- | :--- | :--- | | Issued and fully paid at January 1, 2025 | 1,487,526 | 148,753 | 120,750 | | Rights Issue | 371,881 | 37,188 | 55,785 | | Issued and fully paid at June 30, 2025 | 1,859,407 | 185,941 | 155,070 | Share Option Scheme The share option scheme expired on June 10, 2024, with no new options granted during this interim period; as of June 30, 2025, a total of 26,376 thousand share options held by directors and employees remained unexercised, some of which lapsed on April 29, 2025 Share Option Scheme Movement (for the six months ended June 30, 2025) | Category of Grantees | Outstanding at Jan 1, 2025 (thousand options) | Shares issued during the period (thousand options) | Lapsed during the period (thousand options) | Cancelled during the period (thousand options) | Outstanding at June 30, 2025 (thousand options) | | :--- | :--- | :--- | :--- | :--- | :--- | | Directors | 2,557 | 6 | – | (168) | 2,395 | | Employees and non-controlling shareholders of certain subsidiaries | 32,403 | 78 | – | (8,500) | 23,981 | | Total | 34,960 | 84 | – | (8,668) | 26,376 | - The term of the share option scheme expired on June 10, 2024, thus no further grants can be made under the scheme[116] Share Award Scheme The share award scheme was adopted on July 4, 2016, to reward employees and consultants; no shares were granted under the scheme for the periods ended June 30, 2025, and 2024 - The company's board of directors adopted a share award scheme for certain employees and consultants of the Group on July 4, 2016[200] - No shares were granted under the share award scheme for the periods ended June 30, 2025, and 2024[201] Capital and Other Commitments As of June 30, 2025, the company's contracted but not provided for commitments included RMB 20,683 thousand for the acquisition of subsidiaries and RMB 28,041 thousand for capital expenditure on property, plant and equipment Capital and Other Commitments (as of June 30, 2025) | Item | June 30, 2025 (RMB '000) | December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Contracted but not provided for in respect of acquisition of subsidiaries | 20,683 | 21,783 | | Contracted but not provided for capital expenditure in respect of property, plant and equipment | 28,041 | 25,447 | Fair Value Measurement of Financial Instruments The company's financial assets and liabilities are measured at fair value using a fair value hierarchy (Level 1 to 3); the fair value of equity instruments designated at fair value through other comprehensive income (RMB 14,084 thousand) is classified as Level 3, estimated using discounted cash flow analysis - Fair value measurements are categorized into Level 1 to 3, with Level 3 fair value measurements derived from valuation techniques that include inputs for the asset or liability not based on observable market data (unobservable inputs)[205] Equity Instruments Designated at Fair Value Through Other Comprehensive Income (as of June 30, 2025) | Item | June 30, 2025 (RMB '000) | December 31, 2024 (RMB '000) | Fair Value Hierarchy | Valuation Technique and Key Inputs | | :--- | :--- | :--- | :--- | :--- | | Equity instruments | 14,084 | 13,566 | Level 3 | Discounted cash flow – future cash flows are estimated based on further financial performance and discount rates | Related Party Disclosures This section discloses transactions and balances with related parties, including pre-delivery service income, value-added service income, and engineering service income, as well as amounts due from/to fellow subsidiaries, associates, joint ventures, and other related parties; key management personnel compensation totaled RMB 6,438 thousand Related Party Transactions (for the six months ended June 30, 2025) | Transaction Type | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Pre-delivery service income | 1,084 | 853 | | Value-added services | 104 | 172 | | Engineering service income | 1,070 | 884 | Related Party Balances (as of June 30, 2025) | Item | June 30, 2025 (RMB '000) | December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Amounts Due from Fellow Subsidiaries | 11,444 | 10,265 | | Amounts Due from Associates | 7,770 | 18,294 | | Amounts Due from Joint Ventures | 28,529 | 31,538 | | Amounts Due from Other Related Parties | 24,339 | 24,315 | | Total Amounts Due from Related Parties | 72,082 | 84,412 | | Amounts Due to Fellow Subsidiaries | 11,507 | 11,507 | | Amounts Due to Associates | 26,550 | 27,057 | | Amounts Due to Joint Ventures | 2,164 | 2,164 | | Amounts Due to Other Related Parties | 125 | 143 | | Total Amounts Due to Related Parties | 40,346 | 40,871 | Key Management Personnel Compensation (for the six months ended June 30, 2025) | Item | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Short-term benefits | 6,072 | 5,989 | | Post-employment benefits | 366 | 321 | | Total | 6,438 | 6,310 | Comparative Figures The report indicates that certain comparative figures have been reclassified to conform to the current period's presentation - Certain comparative figures have been reclassified to conform to the current period's presentation[216]