We are an integrated property management services and commercial operational services provider, ranking the fifth in terms of revenue generated in Chengdu among all companies which provide both property management services and commercial operational services in Chengdu in 2020 with a market share of 0.5%. We strive to provide property management services and commercial operational services for mid- to high-end residential properties and commercial properties. Our commercial operational services include providing market research services, tenant sourcing services, and shopping streets management services to developers and tenants.
As at 31 May 2021, our GFA under management was approximately 4.2 million sq.m., among which, total GFA of residential properties under management was approximately 1.9 million sq.m., accounting for 44.7% of our GFA under management; total GFA of non- residential properties under management was approximately 2.3 million sq.m., accounting for 55.3% of our GFA under management. Our GFA under management grew from approximately 0.5 million sq.m. as at 31 December 2018 to approximately 3.8 million sq.m. as at 31 December 2020, representing a CAGR of approximately 175.7%. Our contracted GFA grew from approximately 1.3 million sq.m. as at 31 December 2018 to 6.8 million sq.m. as at 31 December 2020, representing a CAGR of approximately 128.7%. Since the selling price of residential properties developed by Desun Group was higher than the average selling price of residential properties in Chengdu due to its mid- to high- end nature, the average property management fee of our properties under management was RMB3.9 in FY2020, 50.0% higher than the average property management fee of RMB2.6 for properties in Chengdu and 105.3% higher than the average property management fee of RMB1.9 for properties in China according to Frost & Sullivan.
Our vision is to “create desirable and blessed living” (創造美好福流生活) and our mission is to “create value for customers, pursue happiness for those who strive, and proactively take the responsibility of improving the industry standard” (「為客戶創造價值、為奮鬥者謀幸福, 為行業進步勇於擔當」). We are dedicated to providing property management services along the real estate development chain and providing value service. We are headquartered in Cheng-Yu city cluster – the economic development driver of PRC southwest region, we serve our customers through management and operation of three types of their properties – (i) residential properties, (ii) shopping street and other commercial properties, and (iii) industrial parks and office buildings. Our properties under management are located at Cheng-Yu city cluster with a regional coverage. We are committed to delivering quality services and have accumulated extensive experience in mid- to high-end residential property management services and shopping streets management services locally and regionally. We began to provide property management services for mid- to high-end residential properties in Chengdu since 2016 when the first mid- to high-end residential property was completed by Desun Group. As at 31 December 2020, three of the properties under our management were mid- to high-end residential properties in Chengdu and seven of our contracted projects were mid- to high-end residential properties in Chengdu. Since 2018, we have gradually entered into the property management market in Guangdong Province, Jiangsu Province and Yunnan Province by providing value-added services to the local sales offices, respectively.
The first property development project of Desun Group was delivered in 2013. Since 2010, we have established a long-standing, synergetic and on-going relationship with Desun Group, which consists of a group of companies and is a well-known property developer in China and Mr. Zou Kang (being one of our Controlling Shareholders) has control or joint control and has significant influence in it. We have been providing property management services and value-added services to Desun Group. Our revenue generated from property management services and value-added services provided to Desun Group accounted for approximately 53.4%, 51.0%, 47.3% and 38.8% of our total revenue for FY2018, FY2019, FY2020 and 5M2021, respectively. As confirmed by Frost & Sullivan, such business relationship between our Group and Desun Group is common among PRC property management companies and their related property development companies and has been mutually beneficial and complementary between these companies. Our relationship with Desun Group is expected to continue going forward. For details, please refer to the paragraph headed “Connected Transactions – Annual caps and basis of determination” in this document. We acquired Zhongneng Group in August 2020 in order to expand our business portfolio. Please refer to the paragraph headed “Acquisition of Zhongneng Group” in this section and the paragraph headed “Business – Acquisition of Zhongneng Group” in this document for details of the acquisition. Our business growth during the Track Record Period was mainly attributable to (i) more properties developed by Desun Group according to its property development schedule; and (ii) the acquisition of Zhongneng Group in August 2020.
Our goal is to build and enhance our own brand and to become a leading integrated property management service provider of mid- to high-end residential properties and commercial property operation in western China. Our objective is to strengthen our positions in Chongqing Municipality and Sichuan Province, while focusing on western China and aiming for nation-wide expansion (聚焦川渝,深耕西部,並佈局全國市場).
We offer a wide array of services to cater for different needs of customers of various types of properties, including residential properties, shopping street and other commercial properties, industrial parks and office buildings. Focusing on the needs of customers in the real estate industry chain, we provide comprehensive property management and value-added services from covering market research, tenant sourcing, management of sales offices, quality assurance and maintenance, and commercial operational services to realise properties’ asset value. We distinguish the different needs of commercial customers and residential customers based on the different scenarios of mid- to high-end residential properties, shopping street and other commercial properties. We provide customers of residential properties with real estate agent services, public space advertising and other value-added services. We provide brand planning, tenant sourcing, store display, marketing and other services for commercial customers, and provide leasing services, plants and decorations rental, hosting conferences and reception services for industrial parks and office buildings customers. In particular, we have extensive experience in serving customers in the mid- to high-end residential properties.
In recent years, we achieved notable rankings among the Top 100 in China Property Service Companies, Top 50 of Property Services Companies in western China and Top 10 Property Services Companies in Chengdu. In particular, we ranked 7th and 32nd in 2019 and 6th and 19th in 2020 among the “Top 10 Property Services Companies in Chengdu” and “Top 50 Property Services Companies in western China”, respectively. We were also awarded with “Outstanding Property Enterprise for Sales Office Services in western China” (中國西部案場 服務優秀物業企業), “Outstanding Enterprise for Commercial Property Services in western China” (中國西部商業物業服務優秀企業) and “Professional Enterprise for High-end Residential Property Services in western China” (中國西部高端住宅服務典範企業) by China Index Academy. We ranked 54th among the “Top 100 Property Services Companies in China” (中國物業服務百強企業) in 2021 and we were named as one of the “China’s Leading Enterprises for High-end Property Services” (中國高端物業服務領先企業) by China Index Academy at the same time. China Index Academy identified 12 companies as “China’s Leading Enterprises for High-end Property Services” in 2021. In 2020, we participated in the “Research on the Top 50 Real Estate Companies in western China in 2020” and the “Research on the Top 50 Real Estate Services Companies in western China in 2020” organized by the China Index Academy. According to the requirements for participation, we reported the management scale, personnel structure, and our scale of operation. Our performance was evaluated by the China Index Academy in accordance with its evaluation system.
Chengdu Desun was quoted on NEEQ on 2 August 2016 and subsequently withdrew the quotation from NEEQ voluntarily on 7 May 2020. The NEEQ Withdrawal was a decision made as part of our corporate development strategy. For details, see the paragraph headed “History, Reorganisation and Corporate Structure – Our corporate development – Prior NEEQ quotation and subsequent withdrawal from quotation” in this document.
For FY2018, FY2019, FY2020 and 5M2021, we recorded revenue of RMB64.0 million, RMB69.1 million, RMB127.9 million and RMB89.2 million, respectively, representing a CAGR of approximately 41.4% between 2018 and 2020. During the same period, our net profit was RMB31.4 million, RMB31.0 million, RMB42.9 million and RMB10.0 million, respectively, representing a CAGR of approximately 16.9% between 2018 and 2020.
Excluding the contribution of Zhongneng Group, our Group’s revenue increased from RMB64.0 million in FY2018 to RMB106.2 million in FY2020, representing a CAGR of 28.2%, our Group’s net profit increased from RMB31.4 million in FY2018 to RMB40.5 million in FY2020, representing a CAGR of 13.6%.
Source: Desun Services (02270) Prospectus (IPO Date : 2021/11/30) |