GFA Under Property Management Services Increases 46.5% to 18.7 Million sq.m.;
Collaborates Balanced Development of Residential and Commercial Projects;
Continues to Provide a Full Range of Diversified Services
Redsun Services Group Limited (“Redsun Services” or the “Group”), a fast-growing comprehensive community services provider focusing on the Yangtze River Delta, announced its interim results for the six months ended 30 June 2020 (“1H2020”). With strong and balanced property management capability in terms of managing residential and commercial properties, the Group continued to develop steadily in terms of scale and performance. The group delivered an outstanding first interim results after its successful listing on the main board of the HKEX on 7 July 2020.
Highlights:
– Total revenue was RMB323.2 million, representing an increase of 60.4% as compared with RMB201.5 million for the corresponding period of 2019
– Revenue from property management services was RMB225.8 million, accounting for 69.9% of total revenue, representing an increase of 52.9% as compared with RMB147.7 million for the corresponding period of 2019
– Revenue from value-added services to non-property owners was RMB69.0 million, accounting for 21.3% of total revenue, representing an increase of 50.1% as compared with RMB46.0 million for the corresponding period of 2019
– Revenue from community value-added services was RMB28.4 million, accounting for 8.8% of total revenue, representing a significant increase of 261.3% as compared with RMB7.9 million for the corresponding period of 2019
– The Group’s GFA under property management services as at 30 June 2020 was approximately 18.7 million sq.m., representing an increase of approximately 46.5% as compared with approximately 12.8 million sq.m. as at 30 June 2019
– Gross profit margin was 26.3%, representing an increase of 1.1 percentage points as compared with 25.2% for the corresponding period of 2019
– Excluding the listing expenses, the adjusted profit for the period attributable to equity shareholders of the Company was RMB37.3 million, representing an increase of 64.3% as compared with RMB22.7 million for the corresponding period of 2019
Collaborated balanced development of residential and commercial projects
Community value-added services drove gross profit margin
The Group maintained sustainable growth in 1H2020. The Group’s revenue reached RMB323.2 million, an increase of 60.4% from RMB201.5 million in the same period in 2019. The Group’s gross profit margin was 26.3%, representing an increase of 1.1 percentage points from 25.2% for the corresponding period in 2019. The increase was mainly attributable to the further optimization of the Group’s business structure and active promotion on the development of community value-added services which have higher gross profit margin. Excluding listing expenses, the adjusted profit for the period attributable to the equity owners of the company was RMB37.3 million, a significant increase of 64.3% as compared to the same period in 2019.
The business of the Group covers a variety of property types, including residential properties and non-residential properties such as commercial buildings, school and public buildings, and also covers other specialized high-quality consulting services, resulting in collaborated balanced development of residential and commercial projects. As of 30 June 2020, the Group had provided property management services and value-added services to 41 cities in China, with 112 projects under management and contracted GFA of approximately 31.0 million sq.m., which included GFA under management of approximately 18.7 million sq.m., representing an increase of approximately 46.5% as compared with 30 June 2019.
During the period under review, the Group’s revenue from providing property management services reached RMB225.8 million. This was mainly attributable to the rapid increase in total GFA under management in line with the Group’s business expansion. In terms of GFA under management, as of 30 June 2020, the GFA of residential properties and commercial properties under management increased 39.1% and 73.4% respectively, reached 14.9 million sq.m. and 3.5 million sq.m. respectively; the GFA of other properties under management surged 675.0%, reached 312,000 sq.m.
The Group’s revenue from value-added services to non-property owners reached RMB69.0 million, representing an increase of 50.1% for the corresponding period in 2019 (2019: RMB46.0 million). The increase in revenue from value-added services to non-property owners was mainly attributable to the increase in the revenue from sales assistance services at sales venues. The Group’s community value-added services recorded a significant increase during the period under review. The revenue during the period reached RMB28.4 million, representing a significant increase of 261.3% for the corresponding period in 2019 (RMB7.9 million). The Group’s assets management business developed rapidly during the period, bringing a revenue of RMB16.7 million.
The Group has a healthy cash position with cash and equivalents amounted to RMB381.2 million, representing an increase of 112.8% as at 31 December 2019 (31 December 2019: RMB179.1 million). The Group was at a sound level of liquidity during the period with a current ratio of 1.66 times as at 30 June 2020, representing an increase from 1.57 times as at 31 December 2019.
Further expansion of business scale and market share
Looking forward, the Group will maintain quality growth and increase the number of properties and GFA under management, in order to further consolidate market position in Jiangsu Province and expand market share in the cities they operate and to further expand the types of property management. The Group will continue to build up brand reputation of the Group and leverage the brand image, in order to establish extensive strategic cooperation with real estate development companies and provide property management services to their property projects. The Group will also seek development opportunities brought by the expansion of business coverage of Hong Yang Group, its parent company, actively participate in bidding, expand management radius, and ensure stable growth in scale.
Further building happy lives covering the whole life cycle for customers
On the other hand, the Group will further diversify the offerings of value-added services to major customers, achieve vertical expansion in the industry to create more opportunities of obtaining property management projects. While providing property developers with the type of value-added services to non-property owners, the Group also plan to provide consultancy services to local property management companies to expand its business and enhance brand recognition. Through building product line covering the whole life cycle of property service and creating online images of panoramic plan, the Group accurately capture the demand for service based on the actual demands of property owners, which allow it to build happy lives for customers.
Further realization of the establishment of intelligent technology community
The Group will further increase investment in intelligent technology to improve quality and operational efficiency of the community. The Group intend to optimize the intra-enterprise ultra-smart system, management and control platform of panoramic plan, community commercial online mall and online management and control platform of investment and development, continue to improve product standardization, centralization, digitalization and automation to ensure consistent provision of high-quality services, and improve management efficiency while controlling operation costs.
Looking forward to the future, Redsun Service will adhere to the original vision of “making lives warmer” and make the company a venerable good life operator by providing customers with high-quality services with sincerity.
About Redsun Services Group Limited
Established in Nanjing in 2003, Redsun Services Group Limited is a fast-growing comprehensive community service provider focusing on the Yangtze River Delta. With a vision of “making lives warmer,” the Group has provided and endeavor to continue to “provide customers with high-quality services with sincerity” to serve its customers. The Group has established the regional leading position in the property management market of Jiangsu province and is well-recognised nationwide. The Group was recognized as one of the Top 100 Property Management Companies by CIA for four consecutive years since 2017 and ranked 25th among the 2020 Top 100 Property Management Companies in terms of overall strength.