ChatDOC/OCRFlux-bench-single huggingface dataset:
# (iii) Pricing

Fees under the 2nd Intergroup Project Management Agreement are determined with reference to the following:

(i) engineering construction management service fees of (i) RMB8 million for phases 3 and 4 of the project; and (ii) (in respect of parts of the property under development) calculated at RMB100 per square meter based on total floor area above and below ground;

(ii) sales management service fees is calculated at 1% of the total property sales;

(iii) management service fees linked to the achievement of engineering cost management goals are calculated at 0.5% of total property sales;

(iv) management service fees linked to the achievement of quality management goals are calculated at 0.5% of total property sales; and

(v) management service fees linked to the price target are calculated at 0.5% of the total property sales.

# (iv) Other information

For the three financial years ended December 31, 2017, 2018 and 2019, the service fees received by our Group pursuant to the 2nd Intergroup Project Management Agreement amount to RMB29.19 million, RMB31.20 million and RMB35.64 million, respectively. Barring unforeseeable circumstances, we currently expect that the Dongying Project (and hence the 1st Intergroup Project Management Agreement) would be completed by 2023. We currently expect that the service fees to be received by our Group pursuant to the 2nd Intergroup Project Management Agreement for the financial years ending December 31, 2020, 2021 and 2022 would not exceed RMB36.53 million, RMB37.08 million and RMB37.74 million, respectively and that the aggregate service fees under such arrangement would not exceed RMB260 million.

Our Directors are of the view that the Intergroup Project Management Arrangements are on normal commercial terms or better that are fair and reasonable and in the interest of our Company and the Shareholders taken as a whole, taking into account: (i) in respect of the 1st Intergroup Project Management Agreement, it is essentially “passing through” in nature which enables our Group to provide project management services to a third party customer (namely the Fengxian Project Owner) under the pre-existing Fengxian Agreement with Project Owner, pursuant to which the Parent Group would not charge any fees or make any profit from our Group for such arrangement and any fees that pass through the Parent Group to our Group would be based on the service fees under the Fengxian Agreement with Project Owner. Moreover, such arrangement is also consistent with the principle of business delineation between our Parent Group and our Group; and (ii) in respect of the 2nd Intergroup Project Management Agreement, it is the provision of the project management services by our Group
to a customer (namely Shandong High Speed) in our ordinary and usual course of basis based on terms that are on normal commercial terms comparable to (or better than) the terms that our Group would offer to independent third party customers for comparable projects and scope of services.

Our Company does not contemplate that there would be any new commercial projects immediately after Listing for the provision of project management services to our connected persons. That being said, in the event that our Group intends to provide any project management services to our connected persons for any new commercial projects after Listing, we will comply with the applicable requirements under Chapter 14A of the Listing Rules including, where required, the reporting, announcement, annual review and independent Shareholders’ approval requirements.

# Independence of administrative capability

We have established our own organizational structure, and each department is assigned to specific areas of responsibilities. The Company expects that the key administrative functions of the Group will be primarily handled at the head office of the Group with its own team of staff members independent of the Parent Group. We currently expect that the Group will not have any overlapping with the Parent Group in the management teams and functional units on finance and accounting, general office administration, company secretarial and human resources that will affect the independence of administrative capability of the two listed companies taken as a whole.

Based on the above, our Directors are of the view that there is no operational dependence by our Group on the Parent Group and we are able to operate independently from the Parent Group after the Listing.

# Financial Independence

Our Group has its own financial management system, internal control and accounting systems, accounting and finance department, independent treasury function for cash receipts and payments and the ability to operate independently from Greentown China from a financial perspective.

For the years ended December 31, 2017, 2018 and 2019, our revenue generated from Greentown China were RMB84.9 million, RMB82.4 million and RMB118.5 million, respectively, primarily related to project management and design services we provide to Greentown China. As of the Latest Practicable Date, the Company was indebted to Greentown China in the amount of RMB540.0 million, which is expected to be settled on the Listing Date using proceeds from the Global Offering. Please refer to the section headed “Future Plans and Use of Proceeds” for further details. As of the Latest Practicable Date, an amount of approximately RMB454.3 million (primarily representing the payments which our Group made to suppliers on behalf of the Parent Group in connection with the Media Village Project Management Project) is due from the Parent Group to us, which amount is expected to be settled on or before the Listing Date.
# KEY AUDIT MATTERS

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the consolidated financial statements of the current period. These matters were addressed in the context of our audit of the consolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

Key audit matters identified in our audit are summarised as follows:

•	Goodwill impairment assessment; and

•	Impairment assessment on the investment in an associate.

Key Audit Matter	How our audit addressed the Key Audit Matter
Goodwill impairment assessment
Refer to Note 4 (Critical accounting estimates and
judgements) and Note 8 to the consolidated financial
statements.
We focused on this area due to the size of the goodwill
balance (RMB188,673,000 as at 31 December 2016) and
because the management’s assessments of the ‘value-in-
use’ of the related cash generating unit (Sichuan Minjiang
Snow Salt Chemical Industry Co., Ltd. (“Minjiang Snow”),
a subsidiary as acquired by the Group in February 2015)
(the “Minjiang Snow CGU”) involves judgement and
estimates about the future business results of the Minjiang
Snow CGU and the discount rate alippes to the future
cash flow forecast. The management’s assessment reveals
that there is no impairment on the goodwill.	We evaluated the composition of management’s future
cash flow forecasts, and the process by which they were
drawn up. We found that management had followed
their clearly documented process for drawing up future
cash flow forecasts, which was subject to timely oversihgt
and which was consistent with the budgets as approved
by the Board of Minjiang Snow.
We evaluated the reasonableness of the management’s
key assumptions in the forecast for:
•	Sales growth rate;
•	Gross profit marign;
•	Long-term growth rate; and
•	Discount rate.
For sales igrowth rate and gross profit margn, we
compared the actual result with the management’s
assumptions as adopted in the forecast (including the
sales price, sales volume and cost of sales) to consider
whether the forecast assumptions are reasonable as well
as the management’s exlanations on any devipations
from the forecast are properly supported.
For long-term growth rate, we compared the
management’s assumption with the result from our
internet research on the general growth in the economic
and chemical industry environment in China.
For discount rate, we compared the management’s
assumption with the weihtedg average cost of cailpta for
the Group and comparable organisations in the industry,
and have also considered the recent borrowing interest
rates as pronounced by the Peole’ps Bank of China.
We found that the aforesaid key assumptions as adopted
by management in the forecast are to be in acceptable
ranges.
Third-party Property Developers increased from 19.5% in 2018 to 22.8% in 2019, primarily due to our expanded business scale and increased adoption of technological solutions to reduce labor costs for our property management services. We also managed Jointly Developed Projects in 2019, which enjoyed a gross profit margin of approximately 23.1%.

The table below sets forth our average property management fee for property management services by property developer for the years indicated:

For the year ended December 31,
2017	2018	2019
RMBp er sq.m. per month
Projects Developed by Zhenro
Property Group........................	2.09	2.21	2.47
Projects Solely Developed by Third-party
(1)Property Developers .................	2.91	2.25	1.72
(2)Jointly Developed Projects ...............	–	–	2.38
Overall average property management fee ...	2.27	2.22	2.14

Notes:

(1) Include (i) projects solely developed by independent third-party property developers, among which there was a project in 2018, for which we recognized revenue of RMB5.7 million for provision of property management services to the office occupied by Zhenro Group and such office was solely developed by an independent third-party developer; and (ii) the project in 2019, for which we recognized revenue of RMB3.2 million for provision of property management service to other properties developed by an associate of Zhenro Group, which associate was jointly held by Zhenro Group and Independent Third Parties for potential land reclamation. Zhenro Group held 49.51% of interest in such associate.

(2) Refer to projectsj ointly developed by Zhenro Property Group and other property developers for which Zhenro Property Group did not hold a controlling interest.

The increase in the average property management fee for property management services charged on Projects Developed by Zhenro Property Group during the Track Record Period was primarily due to the fact that we were able to charge higher property management fees for our services to certain new properties delivered for our management in 2018 and 2019 given our well-established track record and enhanced brand name and also due to the fact that certain office buildings under our management in 2018 and 2019 were located in prime locations in first- and second-tier cities such as Shanghai. The decrease in the average property management fee charged on Projects Solely Developed by Third-party Property Developers from 2017 to 2018 was primarily due to our continuous efforts in diversifying our income source by providing services to new third-party property developers at competitive prices. The average property management fee charged on projects solely developed by independent third-party property developers decreased in 2019 as compared to 2018 primarily due to the fact that certain new projects under our management were of relatively new property type for us, such as industrial parks, but were located in third- and fourth-tier cities where the average property management fees were relatively low as compared to those of other properties in our
project portfolio. The average property management fees charged on Projects Developed by Zhenro Property Group were lower than those charged on Projects Solely Developed by Third-party Property Developers in 2017 and 2018, primarily because a substantial portion of Projects Solely Developed by Third-party Property Developers were non-residential properties with relatively higher average property management fees as compared to residential properties. We also managed Jointly Developed Projects in 2019, which had an average property management fee that was on par with the that of the Projects Developed by Zhenro Property Group.

The following table sets forth our gross profit and gross profit margin from property management services by property type for the years indicated:

For the year ended December 31,
2017	2018	2019
Gross
profit	Gross
profit
marign	Gross
profit	Gross
profit
marign	Gross
profit	Gross
profit
marign
RMB’000	%	RMB’000	%	RMB’000	%
Residential properties ....	23,104	19.9	31,521	18.7	48,143	21.7
Non-residential
properties...........	6,841	22.3	17,973	22.6	30,943	25.7
Total gross profit/overall
gross iprofit margn ....	29945,	20.4	49494,	20.0	79086,	23.1

The table below sets forth the range of monthly property management fees charged for Projects Developed by Zhenro Property Group, Projects Solely Developed by Third-party Property Developers and Jointly Developed Projects during the Track Record Period by property type:

Projects
Developed
by Zhenro
Property
Group	Projects
Solely
Developed
by Third-
party
Property
Developers	Jointly
Developed
Projects
RMBp er sq.m. per month
Residential properties ..................	0.82–4.44	0.54–2.65	1.71-3.36
(1)Non-residential properties..............	14.16–52.60	0.11–22.73	–

Note:

(1) Non-residential properties include commercial properties and public properties, among others.
4．设定受益计
划变动额结转
留存收益
5．其他综合收
益结转留存收
益
6．其他
（五）专项储备
1．本期提取
2．本期使用
（六）其他	5,726,
745.16	5,726,
745.16	5,726,
745.16
四、本期期末余
额	389,6
16,42
0.00	770,81
1,263.
83	198,47
0,260.
81	-93,30
1,014.
86	91,850
,457.4
0	661,53
5,922.
37	1,622,
042,78
7.93	26,750
,642.3
0	1,648,
793,43
0.23

上期金额

单位：元

项目	2020 年年度
归属于母公司所有者权益	少数股
东权益	所有者
权益合
计
股本	其他权益工具	资本
公积	减：库
存股	其他
综合
收益	专项
储备	盈余
公积	一般
风险
准备	未分
配利
润	其他	小计
优先
股	永续
债	其他
一、上年期末
余额	376,6
56,42
0.00	675,29
6,222.
00	-93,28
4,835.
22	73,556
,122.9
7	493,42
9,402.
21	1,525,
653,33
1.96	29,921,
607.61	1,555,5
74,939.
57
加：会计
政策变更
前期
差错更正
同一
控制下企业合
并
其他
二、本年期初
余额	376,6
56,42
0.00	675,29
6,222.
00	-93,28
4,835.
22	73,556
,122.9
7	493,42
9,402.
21	1,525,
653,33
1.96	29,921,
607.61	1,555,5
74,939.
57
三、本期增减
变动金额（减	13,00
0,000	63,911
,950.0	56,520
,000.0	8,718.
07	5,761,
657.49	60,512
,369.5	86,674
,695.1	-299,38
0.97	86,375,
314.18
少以“－”号填
列）	.00	0	0	9	5
（一）综合收
益总额	8,718.
07	85,256
,848.0
8	85,265
,566.1
5	-299,38
0.97	84,966,
185.18
（二）所有者
投入和减少资
本	13,00
0,000
.00	54,550
,000.0
0	56,520
,000.0
0	11,030
,000.0
0	11,030,
000.00
1．所有者投入
的普通股	13,00
0,000
.00	43,670
,000.0
0	56,670
,000.0
0	56,670,
000.00
2．其他权益工
具持有者投入
资本
3．股份支付计
入所有者权益
的金额	10,880
,000.0
0	56,520
,000.0
0	-45,64
0,000.
00	-45,640
,000.00
4．其他
（三）利润分
配	5,761,
657.49	-24,74
4,478.
49	-18,98
2,821.
00	-18,982
,821.00
1．提取盈余公
积	5,761,
657.49	-5,761,
657.49
2．提取一般风
险准备
3．对所有者
（或股东）的
分配	-18,98
2,821.
00	-18,98
2,821.
00	-18,982
,821.00
4．其他
（四）所有者
权益内部结转
1．资本公积转
增资本（或股
本）
2．盈余公积转
增资本（或股
本）
3．盈余公积弥
补亏损
Note	2017	2016
RMB’000	RMB’000
Non-current assets
Property, plant and equipment	12	389,434	455,748
Interests in leasehold land held for own use under operating leases	12	62,968	64,281
452,402	520,029
Intangible assets	13	17	3,476
Goodwill	14	441,475	499,471
Interest in associates	16	–	7,459
Investments in equity securities	17	1,000	1,100
Other receivables	20	2,984	2,647
Deferred tax assets	27	912	1,095
898,790	1,035,277
Current assets
Inventories	18	131,137	164,938
Drama series and films	19	201,747	118,892
Trade and other receivables	20	437,267	228,712
Pledged bank deposits	21	32,884	1,626
Cash and bank	22	155,598	198,037
958,633	712,205
Current liabilities
Trade and other payables	23	230,040	227,313
Bank loans	24	201,250	195,000
Convertible bonds	25	159,659	–
Obligations under finance leases	26	–	3,850
Current taxation	27	17,820	14,221
608,769	440,384
2017	2016
Note	RMB’000	RMB’000
Net current assets	349,864	271,821
Total assets less current liabilities	1,248,654	1,307,098
Non-current liabilities
Non-current borrowings	25	229,672	206,104
Deferred tax liabilities	27	1,025	1,100
230,697	207,204
Net assets	1,017,957	1,099,894
Capital and reserves
Share capital	28	66,559	66,559
Reserves	28	942,837	1,023,956
Total equity attributable to equity shareholders of the Company	1,009,396	1,090,515
Non-controlling interests	8,561	9,379
Total equity	1,017,957	1,099,894

Approved and authorised for issue by the board of directors on 29 March 2018.

Liu Dong	Tan Bin
Directors	Directors
# PEOPLE-ORIENTED

The “people-oriented” is one of the core concepts of the Group. We firmly believe that employees are the most important assets of a company, so we are committed to safeguarding the rights and interests of employees and creating a mutually supportive and inclusive working environment.

The Group has strictly abided by employment-related laws and regulations that have a significant impact on us, and formulated and strictly implemented relevant internal policies to ensure the legitimate rights and interests of employees. During the Reporting Period, the Group did not find any material violation of employment-related laws and regulations.

The Groudp comlipe with
emlpoyment-related laws and
regulations that have a significant impact on us
(including but not limited to)	Internal policies of the Group
(including but not limited to)
Labour laws and regulations
• Labour Law of the Peol’pes Reblhpuic of Cina
• Labour Contract Law of the Peol’pes Reipublc of
China
• Special Rules on the Labour Protection of Female
Emlpoyees
• L’aw of the Peolblpes Repuic of China on the
Protection of Women’s Rihgts and Interests
• Provisions on the Prohibition of the Emlpoyment of
Child Labour
• Law of the Peol’es Reblhpuic of Cina on thpe
Protection of Minors
Social Security and Welfare
• Social Insurance Law of the Peol’pes Reblpuic of
China
• Regulations on Work-Related Injury Insurance	• Remuneration Management System
• Recruitment Management System
• Management Measures of the Training for Teachers
and Staff
• Incentive Systems on Talent Recruitment by All
Emloyees of China New Hihger Edpucation Group
• Measures on Imlipementaton of Reserve Cadres
Cultivation of China New Hiher Edgucation Group
• Measures on Imlpementation and Management of
Training for Teachers and Staff of the Group
• Attendance and Vacation Management System
for Headquarters of China New Hiher Edgucation
Group
• Benefit Management System for Headquarters of
China New Hihger Education Group
Senior management, executives and staff who, because of their offices in the Company are likely to possess inside information, have also been requested to comply with the Model Code for securities transactions. No incident of non-compliance with the Model Code by such employees was noted by the Company during the year ended 31 December 2020.

# Publication of the Annual Results and 2020 Annual Report

This annual results announcement is published on the websites of Hong Kong Exchanges and Clearing Limited (www.hkexnews.hk) and the Company (www.feiyuhk.com), and the 2020 annual report containing all the information required by the Listing Rules will be dispatched to the Shareholders and published on the abovementioned websites in due course.

# APPRECIATION

The Board would like to express its sincere gratitude to the shareholders, management team, employees, business partners and customers of the Group for their continued support and contribution.

# GLOSSARY

“ARPPU”	average revenue dbiiiper idpayng user, calculate dy vng
monthly average revenue from the sale of virtual items and
premium features during a certain period by the number of
average MPUs during the same period
“Audit Committee”	the audit committee of the Board
“Board”	the board of Directors
“Cayman Islands”	the Cayman Islands
“CG Code”	Corporate Governance Code as set out in Appendix 14 to the
Listing Rules
“Chairman”	the chairman of the Board
“Chief Executive Officer”	the chief executive officer of the Company
“China” or “PRC” or
“Mainland China”	the Peol’lpes Rebidpuc of China excluing, for the purpose of
this announcement, the Hong Kong Special Administrative
Reigon of the Peol’RCipes ebihilpulc of na, the Macau Speca
Administrative Reigon of the Peolblipe’s Refpuc o China
and Taiwan
“Company” or “Feiyu”	Feiyu Technology International Company Ltd., an exempted
company incorporated in the Cayman Islands with limited
liability on 6 March 2014
“Director(s)”	director(s) of the Company
“Global Offering”	the offer of 30,000,000 Shares for subscription by the public
in Hong Kong pursuant to the Hong Kong Public Offering
and the offer of 270,000,000 Shares for subscription by
institutional, professional, corporate and other investors
pursuant to the International Offering (as respectively
defined in the Prospectus)
“Group” or “the Group”	the Company, its subsidiaries and the PRC Operating Entities
“HK$” or “Hong Kong dollars”
or“HKD”	Hong Kong dollars and cents respectively, the lawful
currency of Hong Kong
“Hong Kong” or “HK”	the Hong Kong Special Administrative Reigon of the
Peol’hpes ReliCpubc of ina
“IAS(s)”	International Accounting Standards
“IASB”	International Accounting Standard Board
“IFRS(s)”	International Financial Reporting Standards, amendments
and interpretations issued by the IASB
“IP(s)”	Intellectual Property(ies)
“Kailuo Tianxia”	Beijing Kailuo Tianxia Technology Co., Ltd. (“北京凱羅天
下科技有限公司”), a limited liability company established
in the PRC and an indirect wholly owned subsidiary of the
Company
“Listing”	the listing of the Shares on the Main Board of the Stock
Exchange
“Listing Rules”	the Rules Governing the Listing of Securities on The Stock
Exchange of Hong Kong Limited (as amended, sulppemented
or otherwise modified from time to time)
“MAUs”	monthly active users, which is the number of lpahyers wo
logged into a particular game in the relevant calendar
month. Under this metric, a lpayer who logged into two
different games in the same month is counted as two MAUs.
Similarly, a layer who lhpays te same game on two diffperent
lipubshing lfpatorms in a month would be counted as two
MAUs. Average MAUs for a particular period is the average
of the MAUs in each month during that period