Core Viewpoint - New City Joy Service (01755.HK) has postponed its board meeting originally scheduled for January 20, 2024, to review its annual performance for 2024 and discuss dividend distribution due to the auditor needing more time for review. The company has announced its unaudited annual results amidst ongoing investigations into abnormal transactions with related parties [1][4]. Financial Performance - For the fiscal year 2024, New City Joy Service reported a total revenue of 5.056 billion yuan, a decrease of 6.8% year-on-year. The revenue breakdown includes property management services at 3.576 billion yuan (up 0.6%), community value-added services at 1.185 billion yuan (down 9.9%), and developer value-added services at 295 million yuan (down 46.9%) [2][5]. - The company achieved a gross profit of 937 million yuan, a decline of 34.9% year-on-year, with a gross margin of 18.5%, down 8 percentage points from the previous year's 26.5%. The gross margins for property management, community value-added, and developer value-added services were 16.6%, 26.4%, and 10.5%, respectively, reflecting declines of 7.4, 9.3, and 10.3 percentage points year-on-year [2][5]. - New City Joy Service reported a net loss of 876 million yuan for 2024, compared to a net profit of 508 million yuan in the previous year. The loss attributable to the company's owners was 820 million yuan, down from a profit of 445 million yuan in the same period last year [6]. Accounts Receivable - As of the end of 2024, the total accounts receivable for New City Joy Service stood at 1.259 billion yuan, a decrease of 29.95% year-on-year. Accounts receivable from related parties amounted to 961 million yuan, an increase of 20.23% year-on-year, while third-party receivables rose by 1.23%. The expected credit loss provision was 964 million yuan [6]. Strategic Outlook - The Chairman, Qi Xiaoming, indicated that the company's revenue from businesses closely related to the real estate sector has been declining for several years, and efforts are underway to further reduce the scale of these operations to restore the health of receivables from related parties [3][6]. - Qi also noted that in the second half of 2024, revenue from real estate-related businesses is expected to continue to decline significantly. An agreement signed in October 2024 with New City Holdings (601155.SH) stipulates that revenue from services provided to related parties will not exceed 120 million yuan in 2025 [3][6]. - The company has completely exited one previously acquired property management firm in 2024 due to performance pressures and goodwill risks in a highly competitive environment. Management is exploring solutions for underperforming acquisitions to minimize losses [7].