We are a leading commercial property operational service provider in the Greater Bay Area with a national presence. According to China Index Academy, as of September 30, 2020, we were ranked first in terms of the number of shopping centers in operation in Shenzhen, second in terms of GFA in operation in Shenzhen, fourth in terms of the number of shopping centers in operation in the Greater Bay Area and seventh in terms of GFA in operation in the Greater Bay Area. According to China Index Academy, we were ranked 14th among the “2020 Top 100 Commercial Property Companies in China” in terms of overall strength. As of the Latest Practicable Date, we entered into contracts to provide services for 53 commercial property projects located in 20 cities in China, with an aggregate contracted GFA of approximately 3,284,000 sq.m., 61.6% of which was developed or owned by Independent Third Parties.
We own a comprehensive and highly-recognized brand system, primarily including “COCO Park” for city shopping centers (城市型購物中心) targeting consumers in the city, “COCO City” and “iCO” for regional shopping centers (區域型購物中心) targeting consumers within a five-kilometer radius from such shopping centers, “COCO Garden” for community shopping centers (社區型購物中心) targeting consumers within a one-to-three-kilometer radius from such shopping centers and “Top Living (第三空間)” for our high-end home furnishing shopping center. In addition, we own various brands for themed shopping areas (主題館) within commercial properties, covering home living, family and children, women and fashion, sports and fitness, as well as catering and socializing scenarios. According to China Real Estate Top 10 Research Team, we have been ranked as 2020 China Top 10 Commercial Property Operator (2020年中國商業地產運營十強企業), and we won the “2020 Outstanding Commercial Property Operational Service Brand in the Greater Bay Area (2020年粵港澳大灣區商業運營品牌優秀企業).”
We have close business relationship with Galaxy Holding and its associates, as our expertise and service capability have consistently met their high requirements on quality. As a result, properties developed or owned by Galaxy Holding and its associates have been our stable source of revenue, contributing RMB250.9 million, RMB290.6 million, RMB346.5 million and RMB264.8 million in the years ended December 31, 2017, 2018 and 2019 and the nine months ended September 30, 2020, respectively, accounting for 90.2%, 88.4%, 89.5% and 86.6% of our total revenue, respectively. For the years ended December 31, 2017, 2018 and 2019 and the nine months ended September 30, 2020, our revenue generated from provision of commercial property operational services to, and management services to certain tenants owned by, Galaxy Holding and its associates amounted to RMB63.3 million, RMB66.6 million, RMB95.2 million and RMB90.8 million, respectively, accounting for 22.8%, 20.3%, 24.6% and 29.7%, respectively, of our total revenue, and we purchased services from Galaxy Holding and its associates in the amount of RMB39.7 million, RMB45.1 million, RMB57.2 million and RMB42.0 million, accounting for 28.5%, 28.4%, 30.7% and 30.7%, respectively, of our total cost of services, primarily including the property management services from Galaxy Smart Living Group.
We have created a number of benchmark projects which enjoy wide market acceptance. According to China Index Academy, our signature project, Shenzhen Futian Galaxy COCO Park (North) (深圳福田星河COCO Park（北區）), is the first “experiential shopping park (公園情景式購物中心)” and one of the most popular shopping destinations in Shenzhen. The brand “Galaxy COCO Park (星河COCO Park)” was ranked fourth in the “2019 Top 10 Commercial Property Brands in China (2019年中國商業地產項目品牌價值TOP 10)” by China Real Estate Top 10 Research Team.
We believe our successful experience accumulated through benchmark projects is replicable through our flexible operational models, namely the entrusted management service model, the brand and management output service model and the sublease service model. Such models enable us to adapt to different client requirements and achieve steady growth. We provide customers with comprehensive commercial property operational services, including (i) positioning, construction consultancy and tenant sourcing services, (ii) operational management services, (iii) property leasing services and (iv) value-added services. With our flexible operational models and comprehensive services, we are able to provide consumers with premium shopping experience, provide tenants with effective management services and provide property owners with high operating income.
We achieved steady growth during the Track Record Period. For the years ended December 31, 2017, 2018 and 2019 and the nine months ended September 30, 2019 and 2020, our revenue from continuing operations was RMB278.1 million, RMB328.7 million, RMB387.3 million, RMB286.7 million and RMB305.9 million, respectively, and our profit and total comprehensive income for the year/period from continuing operations was RMB50.4 million, RMB85.1 million, RMB95.6 million, RMB78.8 million and RMB90.1 million, respectively.
Source: E-Star CM (06668) Prospectus (IPO Date : 2021/01/14) |