Xinyuan Service's 2020 performance grew steadily, with a dividend of HK10.2 HK cents per share
(August 31, 2021, Hong Kong) Xinyuan Property Services Group Limited (“Xinyuan Services” or the “Company”, together with its subsidiaries, collectively the “Group”, Hong Kong Stock Code: 1895) is pleased to announce its annual results for the year ended 31 December 2020 (the “reporting period”). Net profit surged year-on-year. The company continued to pay dividends for the year ended December 31, 2020. The Group achieved revenue of approximately RMB 653.7 million, an increase of about 22.4% over the same period last year. During the year, the Group's net profit for the year was RMB 131.9 million, an increase of 61.1% over the same period last year of RMB 81.9 million. Profit attributable to the Company's shareholders during the year was RMB 131.2 million, an increase of 61.4% over the same period last year of RMB 81.3 million. Basic earnings per share were RMB 26.34 cents. The Board recommended a final dividend of HK10.2 cents per share. Xinyuan Property Service Group is a property management service provider with extensive influence and steady growth. It is committed to becoming a leading smart operator in the pan-property industry. In 2020, it won the titles of 2020 Featured Property Service Brand Enterprise, 2020 Top 10 Property Service Brand Enterprises in Central China, and 2020 Leading Residential Property Service Enterprise by the China Real Estate Research Association, Shanghai Yiju Real Estate Research Institute, and the China Real Estate Evaluation Center. As of December 31, 2020, the Group's property management services covered 45 cities in China, with a contracted construction area of 53.0 million square meters, of which the construction area under management was about 34.7 million square meters, providing services to more than 220,000 households. The main business growth structure is gradually being optimized. The Group adheres to a steady scale growth strategy. In 2020, on the basis of the expansion of the entire traditional developer committee, the contract area and management area grew rapidly through full industry committee cooperation, mergers and acquisitions, three supply and one industry cooperation, state-owned enterprise cooperation, and small stock trading. As of December 31, 2020, the Group's contract construction area was about 53.0 million square meters, and the number of contract projects was 237, up 43.2% and 35.4%, respectively; the construction area under management reached 34.7 million square meters, and the number of projects under management was 176, up 72.8% and 46.7%, respectively. Thanks to the increase in the area under management and scope of business, the Group recorded revenue of approximately RMB 653.7 million for the full year of 2020, an increase of 22.4% over RMB 534.0 million in 2019. The Group's business structure covers a variety of property types, including residential properties and non-residential properties (such as commercial office buildings, office buildings, commercial complexes, industrial parks, etc.), through the wholly-owned acquisition of Chongqing Heavy Duty Truck Group Hongqi Property Co., Ltd. (“Chongqing Hongqi Property”) in 2020, the cooperation of Handan Iron and Steel Group Co., Ltd. in the three supply and one industry reform cooperation, and small-share trading cooperation with Henan Yicheng Holdings, not only further extended our scale development channels, but also further optimized our business structure and further extended to industrial parks, schools, hospitals, etc. We continue to expand into new businesses such as old city renovation, intelligent construction, and asset co-marketing, and continue to cultivate new management and development capabilities. While the business continues to develop and grow, we have always adhered to the “six hearts” concept and the service requirements of “high cost performance, high service experience, and high satisfaction”, and continuously innovated service content and service systems, formed seven major service systems around the three major businesses of living space, non-residential space, and urban space, continuously optimizing and enriching service systems and service brands, continuously optimizing and enriching service systems and service brands, and continuously improving basic service quality and customer service experience. Value-added services were further extended, and competitiveness increased significantly. In 2020, the scope of value-added services provided by the Group was further extended. In addition to providing owners and residents with a wide range of value-added services to enhance their living standards and living experience, it also provided a wide range of value-added services to the government and developers, such as asset co-marketing provided by developers and urban renovation services provided by the government. The value-added service business developed to a certain extent in 2020. The value-added service revenue in 2020 increased by about RMB 3.0 million to about RMB 132.0 million compared to RMB 129.0 million in 2019. In addition, relying on the Group's 22 years of professional property management experience, we provide personalized pre-delivery and consulting services to property developers to enhance the competitiveness of developed properties. Revenue from pre-delivery and consulting services in 2020 increased significantly by 56.4% to approximately RMB 141.9 million compared to about RMB 90.7 million in 2019. Mainly due to significant growth in engineering construction and asset co-marketing business, value-added service revenue from non-owners accounted for 48.4% of total revenue in 2020. Looking ahead to the next three to five years, the Group is based on the five major pillars of scale acceleration, service upgrading, business format optimization, industrial expansion, and technological empowerment, focusing on the positioning of leading smart operators in the pan-property industry, forming the three development pillars of Xinproperty, and achieving qualitative growth through the implementation of key initiatives such as quality operation, scale expansion, organizational innovation, technological development, and capacity enhancement. About Xinyuan Service Group Co., Ltd. Xinyuan Property Service Group Co., Ltd. (stock code: 01895.HK) is a rapidly developing property management service provider in China. It was founded in 1998 and has 23 years of rich property management experience. The corporate governance standard qualifies as a first-class property management enterprise in China (since 2007). More than 45 branches have been set up in cities such as Zhengzhou, Beijing, Shanghai, Jinan, and Chengdu. The business formats cover residential community services, urban public services, government public services, and industrial park commercial services. It has been awarded the top 100 enterprises in China's property industry for many years, and ranked 15th in the country in the 2020 Composite Index.
Risk Disclaimer: The above content only represents the author's view. It does not represent any position or investment advice of Futu. Futu makes no representation or warranty.
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