Revenue Increased by 39.1% YoY to RMB417 Million;
Profit for the Period Significantly Increased by 182.1% YoY to RMB29.9 Million;
GFA under Management Increased by 65.2% and Contracted GFA Increased by 36.1%;
Continued the Trend of Rapid Growth with Both Scale and Performance Rising
On 20 August 2020, the leading enterprise in the property management industry in Nanjing and Jiangsu Province, the PRC, Yincheng Life Service Co., Ltd (“Yincheng Life Service” or “the Company”, together with its subsidiaries, “the Group”) (Stock code: 1922), announced its annual results for the Period ended 30 June 2020 (the “Period”).
The increase in revenue and profit for the Period by approximately 39.1% and 182.1% respectively
During the Period, the Group’s revenue increased by approximately 39.1% year-on-year (“YoY”) from approximately RMB299.7 million to approximately RMB416.9 million for the six months ended 30 June 2020. The revenue from the property management services reached RMB336.3 million, representing an increase of 39.8% YoY from RMB240.6 million and accounting for 80.7% of total revenue. The revenue from community value-added services increased by 36.4% YoY to RMB80.5 million from RMB59.0 million, accounting for 19.3% of total revenue. Profit for the Period significantly increased by 182.1% YoY to RMB29.9 million and was indicating an increase of approximately 78.0% as compared to approximately RMB16.8 million before deduction listing expenses for the same period in 2019. Net profit margin for the Period was approximately 7.2%, indicating an increase of approximately 3.7 percentage points YoY. The gross profit increased by 56.1% YoY to RMB81.5 million. Gross profit margin was 19.5%, showing an increase of 2.1 percentage points as compared to the corresponding period last year.
Continue to expand the business scale, 65.2% increase in GFA under management, exceeding 30 million sq.m. for the first time
Yincheng Life Service is a leading regional property management enterprise headquartered in Nanjing and deeply engaged in the Yangtze River Delta Megalopolis. It has expanded its business operations to the Jiangsu Province and several core cities in the Yangtze River Delta Megalopolis. During the Period, the Group successfully penetrated into Suqian City and Yancheng City in the Jiangsu Province. As at 30 June 2020, the Group’s property management services covered 16 PRC cities, and managed 307 properties (+50.5% YoY), including 142 residential properties and 165 non-residential properties, serving over 190,000 households and covering over one million customers.
In tandem with its good reputation in the Yangtze River Delta, trusted brand image and strong operating ability, Yincheng Life Services has developed rapidly in recent years. The Group which provides high quality services has had its original customers to renew the contacts with it, where the renewal rate during the Period was approximately 92.9%. In addition, the Group actively acquired new customers from three channels including direct appointment by customers, acquisition of property management companies and winning public tenders. During the Period, the Group had a net increase of 68 new projects. During the Period, the Group’s contracted GFA was approximately 37.3 million sq.m., representing an increase of approximately 36.1% YoY and the Group’s GFA under management reached approximately 33.7 million sq.m., representing a significant increase of 65.2% YoY. It is the first time to exceed 30 million sq.m. of GFA under management by the Group.
The proportion of non-residential business increased, helps to drive the overall gross profit margin
Residential and non-residential GFA under management amounted to approximately 77.4% and 22.6% of the Group’s total GFA under management, respectively. Non-residential GFA under management increased by approximately 89.9% to approximately 7.6 million sq.m. as compared to the corresponding period last year, revealing the strategy of the Group in the expansion of its non-residential property projects has been effectively implemented and started to bear fruit. In particular, the Group entered into the field of hospital property management by completing the acquisition of Huiren HengAn in March this year. This not only enriches the Group’s non-residential business portfolio and enhances its professional service capability, but also demonstrates its merger, acquisition and integration capability, which provides experience for the Group’s further expansion in the non-residential sector in the future. Meanwhile, the gross profit margin of non-residential products is higher than that of residential products, which will be conducive to further increase the overall gross profit margin of the Company in the future. During the Period, average gross profit margin of non-residential properties of the Group is approximately 20.0%.
The market-oriented development strategy has made rapid progress
As a property management company with distinctive market-oriented characteristics, the Group has always insisted on striving for more market share while securing stable project sources from the “Yincheng series”. As at 30 June 2020, the proportion of the Group’s GFA under management from third party property developers reached approximately 81.8%, exceeding 80% for the first time, representing an increase of approximately 68.9% YoY. This represents the recognition of the Group’s brand name and operational capability in the market, and will further strengthen its position and encourage the Group to continuously enhance its exogenous expansion capability, so as to maintain a long-term and stable development.
Highly recognised by the industry and promoted to 24th in China Top 100 Property Management Companies
Leveraging on the Group’s business scale, operational efficiency, excellent service quality, development potential and social responsibility, the Group won several awards in 2020. The Group ranked 24th among the top 100 property service enterprises in China in 2020, and was recognised as a leading enterprise in market-oriented operation in the property service industry of China in 2020, an outstanding listed property service enterprise worthy of investment in China in 2020 etc.
XIE Chenguang, Chairman of Yincheng Life Service CO., Ltd, said “Looking back to the recent years and the first half of 2020, there were unprecedented social concerns and development opportunities for the whole property management industry in China. The impact and influence of the outbreak of the coronavirus disease (“COVID-19″), in particular during the first half of the year, which the society has been facing has provided a litmus test to the property management industry. The outbreak highlighted the role and value of the property management industry and caused the industry to be widely valued and recognised. There was a significant increase in the owners’ value and perception of and satisfaction with the property management during the outbreak, thus increases the demand for the property management services provided by companies with brand name which are able to provide high quality and professional services. The Group seized the opportunity to further consolidate our position as a regional leader in the industry. Looking forward, the property management industry is in the golden period of rapid growth and development, with its prospects being highly recognized. The Group will continue to expand its business scale and the scope of community value- added services, maintain a good reputation and customer satisfaction, with a focus on market expansion and through mergers and acquisitions aiming to achieve steady progress. Meanwhile, the Group will improve its profitability with a focus on methods including talent motivation and strict cost control, so as to deliver greater returns to the shareholders of the Company.”
Today, Yincheng Life Service 2020 Interim Results briefing was held offline and online simultaneously. Over 250 fund managers, equity analysts and reporters participated in the event. The management gave the introduction of interim results and answered the participants’ questions.