We are a city service and property management service provider deeply rooted in the Yangtze River Delta Region, especially in Suzhou. We were ranked 46th among the 2022 Top 100 Property Management Companies in China in terms of Overall Strength (2022中國物業服務百強企業) by CIA. In 2021, we ranked first in both the property management service market in Suzhou in terms of our total revenue and the city service market in Suzhou in terms of revenue from city services, and also ranked third and fifth in terms of revenue from city services in Jiangsu Province and revenue from non-residential property management services in Jiangsu Province, respectively, according to F&S.
We are a property management service provider offering city services for public infrastructure and facilities, as well as basic property management services and value-added services to commercial properties and residential communities. We assist local governments and public authorities in their provision of city services to improve local residents’ living experience and environment. Our city services include (i) municipal infrastructure services; (ii) public facility management services; and (iii) operation of waste collection centers. In addition, we also offer basic property management and value-added services to our managed commercial properties such as industrial parks and manufacturing plants, office buildings, apartments and commercial complexes, and residential communities. As of April 30, 2022, we were contracted to provide public facility management services, basic commercial property management services and basic residential property management services to 78 projects in China, with a total contracted GFA of 8.0 million sq.m., among which 77 projects with a total GFA of over 6.8 million sq.m. were under our management. As of the same date, we were contracted to offer municipal infrastructure services to 13 projects. As of the Latest Practicable Date, we had constructed and operated two waste collection centers in Suzhou with the maximum capacity to process 800 tons of household waste per day and 50 tons of bulky waste per day in aggregate. Meanwhile, we were also in the process of constructing one additional waste collection center in Suzhou which are expected to be put into operation in the early 2023. Such three waste collection centers in aggregate would be capable of processing a total of 1,200 tons of household waste per day and 50 tons of bulky waste per day.
Customer-centric Culture
Our focus on city environment, citizen wellbeing and commitment to customer satisfaction have shaped our brand image for high-caliber services. Our customer-centric culture has guided us to forge ahead and explore new ways to better serve our customers. For example, we have implemented an intelligent city service system that utilizes information and intelligent technologies to facilitate real-time location and inspection, online interactions with staffs, and data analysis to enhance service quality, reduce reliance on manual labor and improve operating efficiency in the following ways: (i) through the data monitoring system, we will be able to (a) have real-time access to the location, cleaning mileage and operation trajectory of working vehicles performing cleaning services; (b) facilitate real-time monitoring on cleaning staff on duty and their working status, as well as any occurrence of emergency; and (c) record and snapshot the vehicles that enter or exit waste collection centers and supervise the entire process of waste transfer on screen; and (ii) through the administrative support and management system, we will be able to process and analyze the operational data through the data analysis and visualization system in helping adjust the working schedule and labor dispatch.
Strategic Business Relationship with SND Group
We believe that underpinned by our close cooperation with SND Group, our parent group, a leading city developer and operator in Suzhou with rich experience in city operation, comprehensive property development and industrial investment, the diverse property portfolio of SND Group provides us with a large potential pipeline of high-quality projects. We have maintained a long and close strategic relationship with SND Group, whose diverse property portfolio provides a large potential pipeline of high-quality projects to us. We have been providing city services, commercial property management services, residential property management services and property leasing services to properties developed by SND Group since our establishment in 1994.
SND Group and its joint ventures and associates together were our second largest customer during the Track Record Period. SND Group has developed various types of properties including but not limited to, residential properties, commercial complexes, office buildings, industrial parks, amusement parks and hotels, while it cooperates with local governments in developing resettlement housing and public facilities within the Suzhou Gaoxin District, and engages in tap water supply and sewage treatment. SND Group also from time to time conducts investments through its subsidiaries, in particular, in science and technology enterprises and industrial parks.
In 2019, 2020 and 2021 and the four months ended April 30, 2021 and 2022, revenue derived from SND Group and its joint ventures and associates amounted to RMB39.3 million, RMB37.1 million, RMB49.3 million, RMB17.7 million and RMB16.0 million respectively, accounting for 9.0%, 8.5%, 10.7%, 11.6% and 9.9% of our total revenue, respectively. As of April 30, 2022, 41 properties under our management was developed by SND Group, its joint ventures and associates with a total GFA of 4.2 million sq.m., representing 61.6% of our total GFA under management. See “—Our Strategic Business Relationship with SND Group” for details.
Active Business Outreach
We also endeavor to expand our business scale by managing more properties developed by independent third-party property developers. In 2019, 2020 and 2021 and the four months ended April 30, 2022, our bidding success rate with respect to properties developed by Independent Third Parties was 94.1%, 88.9%, 92.3% and 100.0%, respectively. In the four months ended April 30, 2021, we did not submit any bids for properties developed by Independent Third Parties. In 2019, 2020 and 2021 and the four months ended April 30, 2021 and 2022, our revenue generated from property management services provided to properties solely developed by independent third-party property developers accounted for approximately 45.8%, 44.6%, 44.5%, 45.6% and 50.7% of our total commercial property management service revenue, and approximately 13.7%, 19.7%, 20.1%, 18.4% and 23.0% of our total residential property management service revenue, respectively.
Our quality services generated robust results of operations during the Track Record Period. In 2019, 2020 and 2021 and the four months ended April 30, 2021 and 2022, our total revenue was RMB435.9 million, RMB436.8 million, RMB462.0 million, RMB152.5 million and RMB161.6 million respectively, and our profit for the year/period amounted to RMB43.6 million, RMB48.1 million, RMB56.5 million, RMB18.7 million and RMB19.1 million respectively.
We have been recognized as one of the Top 100 Property Management Companies of China for seven consecutive years since 2016 and were ranked 46th among the 2022 Top 100 Property Management Companies of China (2021中國物業服務百強企業) by CIA in terms of overall strength. We were honored as one of the “Leading City Services Companies in China” (中國城市服務領先企業) by CIA in 2022 and a “Leading Brand in the PRC Property Management Industry in Specialized Operations” (中國物業服務專業化運營領先品牌企業) by CIA in 2018, 2019 and 2020. As we are headquartered in Suzhou, the Yangtze River Delta Region has always been and will continue to be our strategic development focus. The Yangtze River Delta Region, which, according to F&S, is one of the most populous and economically prosperous regions in China, and Suzhou ranked second in terms of the urban population and total GDP among all cities in the Yangtze River Delta Region and sixth in terms of total GDP among all cities in China.
Source: Suxin Services (02152) Prospectus (IPO Date : 2022/08/11) |