We are a comprehensive property management service provider deeply rooted in the Bohai Economic Rim with a service network across China strategically covering core geographical areas such as the Yangtze River Delta region and the Greater Bay Area. As of June 30, 2020, we had a total of 272 property management projects under our management with an aggregate GFA under management of 52.4 million sq.m., covering 30 cities across 14 provinces, municipalities and autonomous regions in China. As of June 30, 2020, we were contracted to manage 380 property management projects with an aggregate contracted GFA of 80.6 million sq.m., covering 53 cities across 19 provinces, municipalities and autonomous regions in China. According to CIA, we had a market share of 0.2% in the overall PRC property management industry as measured by GFA under management as of December 31, 2019.
We provide diversified services through three business lines, namely, property management services, value-added services to non-property owners and community value-added services. Our portfolio of managed properties comprises (i) residential properties, and (ii) non-residential properties, including (a) commercial properties, such as shopping malls, office buildings and serviced apartments, and (b) public and other properties, such as industry parks, schools, factories and parks.
We have maintained a long-standing strategic business relationship with RiseSun Development Group, a leading property developer in China. We have been contracted to manage the properties developed by RiseSun Development Group since 2000. During the Track Record Period, we were initially engaged to provide property management services to all of the properties developed by RiseSun Development Group. As of the Latest Practicable Date, except for certain holiday resort properties as detailed in “Relationship with Controlling Shareholders” section, we were managing 99.7% of the properties developed by RiseSun Development Group during the Track Record Period. In 2017, 2018 and 2019 and the six months ended June 30, 2019 and 2020, our revenue derived from services provided to RiseSun Development Group and its associates amounted to RMB220.5 million, RMB280.0 million, RMB498.7 million, RMB181.0 million and RMB304.0 million, respectively, accounting for approximately 30.1%, 31.1%, 38.9%, 32.5% and 39.8%, respectively, of our total revenue. During the Track Record Period, a significant portion of our revenue from property management services was derived from properties developed by RiseSun Development Group, which accounted for 100.0%, 99.9%, 99.8%, 99.9% and 99.3%, respectively, of our revenue from property management services in 2017, 2018 and 2019 and the six months ended June 30, 2019 and 2020. The growth in our GFA under management during the years and periods comprising the Track Record Period was substantially in line with the GFA completed and delivered by RiseSun Development Group during the respective years or periods. In 2018, in order to diversify our customer base, we began to expand our business to manage properties developed by Independent Third Party property developers by leveraging our well-established market position and brand awareness.
Our long-term cooperation relationship with RiseSun Development Group has enabled us to reduce communication costs and build mutual trust with RiseSun Development Group. Over years of cooperation, we have developed an in-depth understanding of RiseSun Development Group's stringent demands and requirements for property management services, allowing us to constantly provide high quality services to property owners and residents, which in turn add value to the marketability of the properties developed by RiseSun Development Group. Considering that we have been managing substantially all of the properties developed by RiseSun Development Group and the amount of time and efforts required to identify and engage a new service provider with comparable experience and ability to provide services of comparable standard and scope, our Directors are of the view that our mutually beneficial and complementary relationship with RiseSun Development Group will continue to enable us to secure future engagements from RiseSun Development Group, and it would be difficult for RiseSun Development Group to select and engage a new service provider to replace us. Going forward, while we expect that the business relationship between our Group and RiseSun Development Group will continue to be mutually beneficial and complementary and in turn, is unlikely to be terminated or materially or adversely changed, and properties developed by RiseSun Development Group will remain a primary source of our property management portfolio, we believe that we will be able to expand our cooperation with Independent Third Party property developers, which would reduce our reliance on RiseSun Development Group and diversify our customer base. Please refer to “Business—Our Strategic Business Relationship with and Reliance on RiseSun Development Group” and “Relationship with Controlling Shareholders” for details.
We achieved robust growth during the Track Record Period in terms of business scale and financial performance. Our GFA under management grew from 36.2 million sq.m. as of December 31, 2017 to 41.6 million sq.m. as of December 31, 2018, and further to 50.3 million sq.m. as of December 31, 2019, representing a CAGR of 17.9% from 2017 to 2019. As of June 30, 2020, our GFA under management further grew to 52.4 million sq.m. Our contracted GFA grew from 56.8 million sq.m. as of December 31, 2017 to 63.4 million sq.m. as of December 31, 2018, and further to 77.4 million sq.m. as of December 31, 2019, representing a CAGR of 16.7% from 2017 to 2019. As of June 30, 2020, our contracted GFA further grew to 80.6 million sq.m. Our revenue increased from RMB732.0 million in 2017 to RMB901.9 million in 2018, and further to RMB1,282.0 million in 2019, representing a CAGR of 32.3% from 2017 to 2019. Our revenue increased by 37.4% from RMB556.6 million for the six months ended June 30, 2019 to RMB764.9 million for the same period in 2020. Our profit and total comprehensive income increased from RMB38.3 million in 2017 to RMB72.3 million in 2018, and further to RMB113.2 million in 2019, representing a CAGR of 71.8% from 2017 to 2019. Our profit and total comprehensive income increased by 98.1% from RMB52.9 million for the six months ended June 30, 2019 to RMB104.8 million for the same period in 2020.
Source: Roiserv Lifestyle (02146) Prospectus (IPO Date : 2020/12/31) |