Revenue Achieves High-quality Growth of 27.1%
GFA Under Property Management Increases by 76.4%
HONG KONG, Aug. 26, 2022 /PRNewswire/ — New Hope Service Holdings Limited (“New Hope Service” or “the Company“, stock code: 3658.HK ), a well-established comprehensive property management and lifestyle service operator in China, has announced its interim results for the six months ended 30 June 2022 (the “Reporting Period”).
In the first half of 2022, New Hope Service grew steadily and achieved high-growth quality growth in business results. At the same time, the Company continued to intensively cultivate business in different regions and deploy multi-stream businesses, which bolstered its management service scale. During the Reporting Period, the Company recorded revenue of approximately RMB512 million, representing an increase of 27.1% against the corresponding period last year. Gross profit was RMB209 million, 21.7% more than that in the corresponding period last year. Profit attributable to equity shareholders of the Company amounted to RMB99 million, representing an increase of 25.5% when compared to the adjusted profit attributable to equity shareholders of the Company (excluding the one-off listing expenses in 2021) in the corresponding period last year.
Focus on Chengdu–Chongqing urban agglomeration and Eastern China region Management scale continues to grow
Continuing to expand gross floor area (the “GFA”) under management is one of New Hope Service’s solid development strategies. By taking over smoothly projects from related parties, continuously securing outside projects and merging and acquiring projects, the Company realized continuous expansion of management scale. Coverage of the Company’s property management services increased to 28 cities across the country. As at 30 June 2022, it had 156 projects under management involving a total GFA of 22,096 million sq.m., up by 76.4% against the corresponding period of 2021. It secured 207 property management projects with a contracted GFA of 30,961 million sq.m, a 51.9% increase year on year. The ratio of contracted GFA under management was 1.4.
While steadily scaling up management service coverage is its main goal, New Hope Service has also upheld the strategy of intensively cultivating regional markets, taking reference to the country’s development plan for city clusters to make the strategic deployment. During the Reporting Period, 89.7% of the GFA managed by the Company were in first-tier, new first-tier and second-tier cities in China, with efforts placed mainly in the Chengdu–Chongqing circle of cities in the Southwestern region and more economically-developed areas in the Eastern region in China. With the market in the Southwestern region growing and the Company completing the acquisition of Chengdu Mingyu Global Commercial Management Co., Ltd. on 10 April 2022, management service coverage of the Group recorded particularly impressive growth with GFA under management increased by 98.1% year-on-year in the Southwestern China region.
Achieves a significant improvement in independence
Steadily develops multi-dimension business and segmented business
As at 30 June 2022, the Company had a GFA of 8.6 million sq.m. under management from independent third-party property developers (excluding properties developed by associates or joint ventures of New Hope Property Group), up by 306.7% compared with the same period last year. The improvement was owed mainly to the Company’s strengthened market development capability and a series of initiatives taken during the period, which included stepping up building market expansion channels and boosting the business footprint via strategic mergers and acquisitions.
With an improvement in the independence of the Company, the proportion of its multi-mode business has increased, and notable progress has been made with achieving breakthroughs in the fine segments. As of 30 June 2022, residential GFA under management by the Company accounted for 65.9% of the total it managed, and non-residential GFA it managed accounted for 34.1% of the total. GFA managed in the fine segments of industrial parks, office buildings and public construction projects leaped by 401.0%, 155.5% and 149.0% year-on-year, respectively.
With the advantage in the differentiation of lifestyle industry chain
Drives steady growth of lifestyle services business
The Company continues to focus on the practical needs of customers and has built a complete life-cycle lifestyle services ecosystem that comprises community living services, online and offline retail and catering services, and community asset management services. On top of raising customer satisfaction, it strives to maintain a higher renewal rate of projects under management to achieve steady growth of its lifestyle services business. During the Reporting Period, the business recorded revenue of approximately RMB115 million, representing a year-on-year increase of 28.9%, accounting for 22.5% of the Company’s operating income.
Behind the high-quality growth of the business segment of New Hope Service is New Hope Group, a Fortune Global 500 company, which has well-established living services industrial chains including agricultural produces and meats, dairy and FMCG products, among others, supporting the Company in terms of product choices, supply chains, customer resources and brand value, aiding its development. Hence, the Company can build its lifestyle services ecosystem to provide comprehensive “property + lifestyle services” – “property + group meal”, “property + retail”, “property +home” and “property + centralized procurement” – building-block type lifestyle service solutions.
On the online and offline retail front, in cooperation with New Hope Group and Shede Spirits Co., Ltd. under the Fosun Group, the Company created several customized gift boxes for a B-end customers. It also signed an agreement with New Hope Group, which has enabled it to start B-end centralized procurement business. For C-end customers, via such as Big Sales for Spring Festival 020 and Button Lexuan promotional activities, it achieved for New Hope Group products a 52% year-on-year growth in coverage rate.
For the group meal business, the Company strengthened its capability to expand the business and with that doubled the number of projects landed. In the realm of group meals for hospitals, in particular, it kept up with such measures as bolstering the team, bringing in technology and perfecting the management mechanism. On top of existing oncology hospital projects, it won the bids for such as the Wenjiang Medical City Project and the Lansheng Brain Hospital, strengthening its competitiveness in the medical arena and hospital group meal business. Moreover, during the Reporting Period, the Company secured new group meal projects from railroad and subway entities in the public infrastructure sector.
Furthermore, New Hope Service stepped up lean management. Through continuously optimizing the standardized allocation of talent, standardized business development and construction of supply chain system, particularly effecting advanced control on including digitalized operations, safety and prevention, intelligent reengineering, and effectiveness of tender and procurement, the Company was able to further reduce administrative expense rate to approximately 15.8%, down by 4.2% against the same period last year.
Boasting steady development and high-quality services, in the first half of the year, the Company placed 30th among the “Top 100 Property Management Companies in China” named by the China Index Academy and ranked 15th among the “2022 Listed Property Management Companies with Outstanding Financial Performance” published by the Guandian Index Academy, and its group catering services segment made the “Top 100 Catering Service Providers in China” list of the China Cuisine Association.
Looking forward, New Hope Service will continue the development strategy of cultivating regional business and deploying business in high-energy cities, focusing on the Chengdu–Chongqing city cluster and Eastern China region, developing business in the first-tier, new first-tier, and second-tier cities with industry support and people inflow. It will continue its “organic growth + expansion+ acquisition” growth model and strengthen its sustainable development capabilities. It will adhere to the strategy of striving for balanced development of its multi-mode business, intensively develop business in the medical, education and financial sectors, as well as insist on using the “property services + lifestyle services” building-block mode to effect tight link with the industrial chain of New Hope Group, thereby continue to strengthen its lifestyle services. In addition, the Company will continue to increase investment in technology, improve service quality and operational efficiency, promote lean operations, and build excellent operational strengths to the end of rewarding investors with excellent business results.
New Hope Service Holdings Limited (stock code: 3658.HK)
New Hope Service is positioned as a lifestyle service provider. With an established base in metropolitan regions and urban clusters of the country, and with the trust of customers, it has formed a business model that is driven by the integration of property management services, daily services, commercial operation services and value-added services for non-owners, achieving the dual leadership in terms of customer satisfaction and revenue generation. In addition, leveraging the extensive layout in the people’s livelihood industry of New Hope Group, a Fortune 500 enterprise, New Hope Service has attained high-quality growth and was ranked 30th among the “2022 Top 100 Property Management Companies in China“, and awarded the ” Most Valuable Listed Property Management Company” of the 6th Gold Hong Kong Stocks.