Endeavour at The Right Time: Excellent and Solid Business Performance Are Widely Recognized in the Market, will Continue Strive to Become the Regional Leading Property Management Company
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) is pleased to celebrate the 1st anniversary of its listing on the main board of HKEx.
With the effective expansion of business scale and continuous deep cultivation in the industry, the Company is providing more diversified and value-added services
Yincheng Life Service’s listing on the Hong Kong Stock Exchange on November 6, 2019 ushered in a golden period of development as the Company seizes good opportunities, implements a multi-pronged strategies, achieves record highs in various operating indicators, and attaining remarkable development in operational scale. From 2016 to 2019, the CAGR of the Company’s contracted GFA and GFA under management were 45.6% and 58.0%, respectively, reaching 37.3 million sq.m. and 33.7 million sq.m. as of June 30, 2020. The CAGR of revenue and core net profit from 2016 to 2019 were 44.9% and 25.4%, respectively.
Yincheng Life Service consistently promotes regional deep cultivation and deeply engages in developed cities in the Yangtze River Delta Megalopolis with Nanjing as the regional focus. Within a year of its listing, the Company’s business coverage has expanded from the original 10 cities to the current four provinces and 16 cities, serving nearly 190,000 households covering over one million customers. The number of properties under management has increased significantly from 63 in 2016 to 307 as of June 30, 2020.
In addition to providing high-quality property management services to residential customers, the Company is also committed to promoting diversified property management services and increasing the development of non-residential projects. In March 2020, the Company completed its first strategic merger and acquisition after listing. It acquired 51% of Nanjing Huiren Hengan for RMB45.9 million to tap into the hospital property management field and improve its comprehensive strength.
Standing out from the industry with unique characteristic
Yincheng Life Service adheres to the business philosophy of “Exceeding customer expectations with valuable services”, and insists on “Strict service quality control, complete complaint mechanism, and continuous customer experience enhancement”. The Company allocates one life consultant for every 300 households, the proportion is far exceeding industry standards. Currently, the Company has 450 life consultants in total to respond to customer needs in a timely manner; the Company adheres to at least two customer satisfaction surveys per year to maintain industry benchmarks level. After listing, the Company was even stricter in self-discipline, and continue to maintain high-quality services and reputation with refined management system.
As a pioneer of marketization in the industry, Yincheng Life Service actively obtains the appointment from third-party real estate developers and property owners’ association while the parent group provides stable business growth. The Company’s GFA under management from third party property developers has continued to increase from 54% in 2016 to the current 82%. As a second-hand property management expert, relying on the Company’s solid and high-quality services and market reputation, the Company has been appointed to replace existing property management service providers for completed projects, and through effective operations, these projects are attaining sustainable profitability. As one of the few companies in the industry who owns self-established professional companies, Yincheng Life Service has 4 subsidiary companies with qualified licenses, covering installation, repair and maintenance of elevators and escalators and courtyard greening, etc., which enables the Company to save costs and improve efficiency for customers and let the Company to stand out in the process of acquiring new projects. The high-quality services also enable the Company to be appointed by other property companies, expanding the revenue streams.
Affirmed by the market in the first year since its listing
Since its listing, the investment value of Yincheng Life Service is continuously being recognized by the industry and the capital market. In 2020, Yincheng Life Service was ranked among the “Top 100 Property Services Companies in China”, and its ranking jumped from 34th in 2019 to 24th. In the first year of listing, the Company’s highest stock price has risen four times the issue price and has received a “buy” or “strong recommendation” rating by a number of investment institutions. The Company actively communicates with investors and shareholders through various channels in a timely manner to demonstrate transparent and efficient corporate governance. In order to return shareholders’ long-term support, the Company has made a 30% dividend payout ratio after the first annual resulted was announced.
Focusing on Community and Employee Development
As a socially responsible company, Yincheng Life Service made full use of its understanding of property owner’ needs, organized various community activities throughout the year. During the CONVID-19 breakout, the Company stood on the front line and quickly launched a number of new services for property owner’ convenience. Yincheng Life Service attaches great importance to talent cultivation, continuously improves the talent system. After the listing, the Company also fulfilled its commitment to provide share incentives to employees. Today, on this special day of the first anniversary of listing, the Company organizes a series of meaningful activities such as charity hiking and group running to show employees its appreciation for their hard work during the year and to make some contribution to the society.
XIE Chenguang, Chairman of Yincheng Life Service CO., Ltd, said “2020, is our first year of listing on the Hong Kong Exchange, it will also be a year remembered by the world. Faced with various challenges of public health, domestic economy, and international environment, Yincheng Life Service responded quickly with the united power of our employees and customers. We proactively stepped out of the comfort zone, steadily fought against all the difficulties with the expectation and support of the public, and finally achieved success in all areas. Our aim is to become a century-old company, we are proud to have just completed the first step in the coming-of-age ceremony. The way ahead is fill with challenges, but also full of hope and opportunities. Looking forward to the future, we will continue to adhere to our initiatives and maintain consistent growth as we pursue our goal of becoming a leading regional property management company.”