New Share Offering | DeShang Industrial Investment Services Begins Subscription Today, Expected to List on December 17

Futu News reported on November 30 that this Tuesday$DESUN SERVICES (02270.HK)$Announce that, effective fromShare offering from November 30 to December 7The company plans to issue approximately 150 million shares, with about 15 million shares offered to the public and approximately 135 million shares offered internationally. The offer price is HK$1.10 to HK$1.46 per share, with each trading lot consisting of 2,000 shares, and the listing is expected on December 17.

Deshang Industrial Investment Services is an integrated provider of property management and commercial operations services. In 2020, based on revenue generated in Chengdu, the company ranked fifth among all providers of property management and commercial operations services in the city, with a market share of 0.5%. The company is committed to delivering property management and commercial operations services for mid-to-high-end residential and commercial properties.

As of May 31, 2021, DSM Property Services managed a total gross floor area of approximately 4.2 million square meters, of which residential properties accounted for about 1.9 million square meters, or 44.7% of the total, while non-residential properties accounted for about 2.3 million square meters, or 55.3% of the total.

The company's managed gross floor area increased from approximately 500,000 square meters as of December 31, 2018, to approximately 3.8 million square meters as of December 31, 2020, representing a compound annual growth rate of about 175.7%. The company's contracted gross floor area grew from approximately 1.3 million square meters as of December 31, 2018, to 6.8 million square meters as of December 31, 2020, with a compound annual growth rate of about 128.7%.

In terms of financial performance, the Company recorded total revenues of RMB 63.964 million, RMB 69.116 million, RMB 128.000 million, and RMB 89.159 million for the fiscal years 2018, 2019, 2020, and the first five months of 2021, respectively, representing a compound annual growth rate of approximately 41.4% from 2018 to 2020. During the same period, the Company's net profits were RMB 31.394 million, RMB 31.043 million, RMB 42.913 million, and RMB 10.003 million, with a compound annual growth rate of about 16.9% from 2018 to 2020.

In terms of industry,In 2020, property management service companies in the Sichuan–Chongqing region generated total revenues of RMB 55.1 billion, with residential and non-residential properties accounting for RMB 34.1 billion and RMB 21.0 billion, respectively. By 2025, total revenues from property management services in the Sichuan–Chongqing region are projected to reach RMB 92.4 billion, representing a compound annual growth rate of 10.9% from 2020 to 2025.

With respect to the use of proceeds, the Company intends to allocate the net proceeds from the Global Offering as follows: approximately 60% will be used for strategic investments and acquisitions to expand its property management and commercial operations businesses; approximately 20% will be allocated to investments in information technology systems and human resources supporting these systems; approximately 10% will be used for talent recruitment and development; and approximately 10% will be utilized as working capital and for general corporate expenses.

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