We are a property management service provider with a leading position in Jiangxi Province and a service network strategically covering core regions such as the Yangtze River Delta Region, the Greater Bay Area, the Bohai Rim Region and the Central China Region. We have been recognized as one of the Top 100 Property Management Companies in terms of overall strength by CIA since 2018, and our ranking has risen from 68th in 2018 to 40th in 2021. According to CIA, our total GFA under management as of September 30, 2021 accounted for approximately 0.12% of the total GFA under management of all Top 100 Property Management Companies in 2021. As of September 30, 2021, we had a total of 91 projects under management with an aggregate GFA under management of 15.1 million sq.m., and had been contracted to manage 133 projects with an aggregate contracted GFA of 23.5 million sq.m. located in 28 cities across 11 provinces, municipalities and autonomous regions in China. The Listing will constitute a spin-off from Redco Group.
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 residential properties, and non-residential properties, primarily including commercial properties (such as office buildings and shopping street) and public facilities. We have maintained a long-standing strategic business relationship with Redco Group. During the Track Record Period, for each of our business lines, a significant portion of our revenue was derived from properties developed by Redco Group and its joint ventures or associates. In 2018, 2019, 2020 and the nine months ended September 30, 2020 and 2021, 97.8%, 96.2%, 91.3%, 94.8% and 79.0% of our total revenue, respectively, was derived from properties developed by Redco Group and its joint ventures and associates. Specifically, for revenue from property management services, in 2018, 2019, 2020 and the nine months ended September 30, 2020 and 2021, 96.7%, 93.4%, 91.3%, 92.4% and 70.4% of our revenue from property management services, respectively, was derived from properties developed by Redco Group and its joint ventures and associates. As of December 31, 2018, 2019 and 2020 and September 30, 2021, 85.8%, 83.2%, 56.8% and 57.1% of our GFA under management, respectively, was attributable to properties developed by Redco Group and its joint ventures and associates. Among all properties developed by Redco Group and its joint ventures and associates which were delivered during the Track Record Period, approximately 66.2% of the total GFA of such properties had been under our management as of September 30, 2021. While we expect to maintain our long-standing strategic collaboration with Redco Group going forward, we have been making continuing efforts to diversify the source of the properties we manage. See “Business — Our Strengths — Strategic business relationship with Redco Group and fast-growing business development capabilities.”
We are committed to be a “dual butler” for our customers, namely, lifestyle butler and healthcare butler. Leveraging our intelligent and digitalized technology service platform, we continuously enhance our operating efficiency and customers’ experience. We were awarded the 2020 Specialized Operational Leading Brand of China Property Service Companies and 2020 Property Management Companies with Outstanding Customized Services (Healthcare Services) by CIA.
We are a property management service provider with a leading position in Jiangxi Province and a service network strategically covering core regions such as the Yangtze River Delta Region, the Greater Bay Area, the Bohai Rim Region and the Central China Region. We have been recognized as one of the Top 100 Property Management Companies in terms of overall strength1 by CIA since 2018, and our ranking has risen from 68th in 2018 to 40th in 2021. According to CIA, our total GFA under management as of September 30, 2021 accounted for approximately 0.12% of the total GFA under management of all Top 100 Property Management Companies in 2021. As of September 30, 2021, we had a total of 91 projects under management with an aggregate GFA under management of 15.1 million sq.m., and had been contracted to manage 133 projects with an aggregate contracted GFA of 23.5 million sq.m. located in 28 cities across 11 provinces, municipalities and autonomous regions in China. The Listing will constitute a spin-off from Redco Group.
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 residential properties, and non-residential properties, primarily including commercial properties (such as office buildings and shopping street) and public facilities. We have maintained a long-standing strategic business relationship with Redco Group.
During the Track Record Period, for each of our business lines, a significant portion of our revenue was derived from properties developed by Redco Group and its joint ventures or associates. In 2018, 2019, 2020 and the nine months ended September 30, 2020 and 2021, 97.8%, 96.2%, 91.3%, 94.8% and 79.0% of our total revenue, respectively, was derived from properties developed by Redco Group and its joint ventures and associates. Specifically, for revenue from property management services, in 2018, 2019, 2020 and the nine months ended September 30, 2020 and 2021, 96.7%, 93.4%, 91.3%, 92.4% and 70.4% of our revenue from property management services, respectively, was derived from properties developed by Redco Group and its joint ventures and associates. As of December 31, 2018, 2019 and 2020 and September 30, 2021, 85.8%, 83.2%, 56.8% and 57.1% of our GFA under management, respectively, was attributable to properties developed by Redco Group and its joint ventures and associates. Among all properties developed by Redco Group and its joint ventures and associates which were delivered during the Track Record Period, approximately 66.2% of the total GFA of such properties had been under our management as of September 30, 2021. While we expect to maintain our long-standing strategic collaboration with Redco Group going forward, we have been making continuing efforts to diversify the source of the properties we manage. See “Business — Our Strengths — Strategic business relationship with Redco Group and fast-growing business development capabilities.”
We are committed to be a “dual butler” for our customers, namely, lifestyle butler and healthcare butler. Leveraging our intelligent and digitalized technology service platform, we continuously enhance our operating efficiency and customers’ experience. We were awarded the 2020 Specialized Operational Leading Brand of China Property Service Companies and 2020 Property Management Companies with Outstanding Customized Services (Healthcare Services) by CIA.
We achieved steady growth during the Track Record Period in terms of business scale. Our GFA under management increased from 5.9 million sq.m. as of December 31, 2018 to 7.4 million sq.m. as of December 31, 2019, to 13.5 million sq.m. as of December 31, 2020, and further to 15.1 million sq.m. as of September 30, 2021. Our contracted GFA increased from 9.9 million sq.m. as of December 31, 2018 to 13.4 million sq.m. as of December 31, 2019, to 20.1 million sq.m. as of December 31, 2020, and further to 23.5 million sq.m. as of September 30, 2021.
Our revenue increased from RMB124.3 million in 2018 to RMB180.8 million in 2019, and further to RMB221.6 million in 2020, representing a CAGR of 33.5%. Our revenue increased by 62.5% from RMB160.3 million for the nine months ended September 30, 2020 to RMB260.5 million for the same period in 2021. Our profit for the year increased from RMB11.1 million in 2018 to RMB29.8 million in 2019, and further to RMB44.0 million in 2020, representing a CAGR of 99.1%.
Our profit for the period decreased by 16.2% from RMB32.8 million for the nine months ended September 30, 2020 to RMB27.5 million for the same period in 2021. The increase in our total revenue during the Track Record Period was primarily attributable to (i) an increase in revenue from property management services, which was primarily a result of the growth in the GFA under management of properties developed by Redco Group and its joint ventures and associates, which was 5.1 million sq.m., 6.2 million sq.m., 7.7 million sq.m. and 8.6 million sq.m. as of December 31, 2018, 2019 and 2020 and September 30, 2021, respectively; (ii) the fact that we acquired Wuhu Senlin on December 31, 2020, which added 25 projects with a total GFA under management of approximately 4.5 million sq.m. to our portfolio of projects under management as of December 31, 2020, and its financial performance as of and for the nine months ended September 30, 2021 was consolidated with our Group; and (iii) an increase in revenue from value-added services to non-property owners, which was generally in line with our business expansion, in particular, the services portfolio expansion, and the continuous growth in our GFA under management.
Source: Redco Healthy (02370) Prospectus (IPO Date : 22/03/2022) |