GFA Under Property Management Increases 83.5% to 34.4 Million Sq.m.
GFA From Third-Party Developers Accounts for 60%
Redsun Services Group Limited (Redsun Services or the Group), a fast growing comprehensive community services provider focusing on the Yangtze River Delta, has announced its unaudited interim results for the six months ended 30 June 2021 (1H2021).
— The Group’s total revenue was RMB529.1 million, representing an increase of 63.7%.
1) Revenue from property management services was RMB350.4 million, accounting for 66.3% of total revenue, representing an increase of 55.2%.
2) Revenue from value-added services to non-property owners was RMB84.8 million, accounting for 16.0% of total revenue, representing an increase of 22.9%.
3) Revenue from community value-added services was RMB93.8 million, accounting for 17.7% of total revenue, representing a significant increase of 230.0%.
— Profit for the reporting period was RMB64.0 million, representing an increase of 71.2% as compared with adjusted profit of RMB37.4 million for the corresponding period of 2020. Profit for the reporting period attributable to equity shareholders of the Company was RMB59.8 million, representing an increase of 60.4% as compared with adjusted profit attributable to equity shareholders of RMB37.3 million for the corresponding period of 2020.
— As at 30 June 2021, the Group had 327 contracted projects and contracted GFA of approximately 49.6 million sq.m., representing an increase of approximately 60.0%. These projects included 228 projects under management and GFA under management of approximately 34.4 million sq.m., representing an increase of approximately 83.5%.
The Group’s revenue was RMB529.1 million, representing an increase of 63.7% as compared with RMB323.2 million for the corresponding period of 2020. During the period, the Group further optimised the business structure and active promotion in the development of community value-added services which have higher gross profit margins, and the Group’s gross profit margin increases of 2.6 percentage points to 28.9%. Profit for the period was RMB64.0 million, representing an increase of 71.2% as compared with the adjusted profit of RMB37.4 million for the corresponding period of 2020. Profit for the reporting period attributable to equity shareholders of the Company was RMB59.8 million, representing an increase of 60.4% as compared with RMB37.3 million for the corresponding period of 2020. The Board does not recommend the payment of any interim dividend.
The Group maintained a solid financial position during the reporting period. As at 30 June 2021, the current assets amounted to RMB900.0 million, and cash and cash equivalents amounted to RMB579.7 million, thus maintaining a stable net cash condition.
The business of the Group covers a variety of property types, including both residential and non-residential properties such as commercial buildings, schools and public buildings, in addition to other specialised high-quality consulting services, resulting in collaborated balanced development of residential and commercial projects. As at 30 June 2021, the Group had provided property management services and value-added services to 42 cities in China, with 327 contracted projects and a contracted gross floor area of approximately 49.6 million sq.m., representing an increase of approximately 60.0%. Such projects included 228 projects under management with a GFA of approximately 34.4 million sq.m., representing an increase of approximately 83.5%.
Among the GFA under management in the first half of 2021, the proportion of third-party property developers substantially increased from 37.3% in the same period last year to 59.5%, which further demonstrates the Group’s external expansion capabilities. In addition, the Group’s portfolio of managed properties has become more diversified. Apart from residential and commercial, there are also public construction and other properties such as hospitals, schools, industrial parks. The total GFA under management from third-party property developers has increased five times year-on-year to 1.85 million sq. m.
The Group remained steadfast in maintaining development driven by both organic growth and external expansion. Not only did it rely on its own service quality and brand recognition to expand market and promote development in cities, it also entered into equity cooperation with strategic partners who could provide complementary advantages in regional markets to develop rapidly across different regions. In the first half of 2021, the Group completed the acquisition of Wuhan Huidehang Elite Property Services Co., Ltd., Gaoli Property Services Co., Ltd. and Jiangsu Gaoli Meijia Property Co., Ltd. It also signed a strategic cooperation agreement with the office of Xigang sub-district, Qixia District, Nanjing, with a view to deepening the development in urban services and facilitating cooperation in aspects including community comprehensive services, municipal management services and specialised facility services in corresponding administrative regions. The Group also entered into a strategic cooperation agreement with Anhui Shui’an Construction to establish comprehensive in-depth cooperation in services at property sales venues, early-stage involvement services and other services, thereby laying a solid foundation for improving quality in scale.
Further enhancement in service capability to build up core competitiveness
In the future, the Group is dedicated to create good living with its continuous effort in improving its service capability and building core competitiveness. As people are the most essential element in productivity, the Group will establish a service capability nurturing center to attract and nurture talent who measure up to the enterprise’s values, so that talent can become the primary resource in development of the Group. Service capability enables rapid development of an enterprise and is the embodiment of industry innovation, new business and new products. Based on the demands of different sectors and customers, the Group will continue to upgrade and improve a full range of lifecycle products and the design of new service products. Redsun Mode 2.0 is being implemented to create standardisation of services throughout all scenarios, leveraging technology applications to refine Hong Tu System, the Group’s intelligent management system, so as to achieve more effective application of digital management and services. Meanwhile, the Group is also conducting service innovation for improving its capability to serve customers creatively. Through systematic development of benchmark projects and protection, the ability for standardised services to be delivered is increased.
Focusing on penetrating the Greater Jiangsu Region and mapping its non-residential business portfolio, the Group will continue to further enhance its regional competitiveness through high-quality acquisitions and integration, urban services, cooperation with independent third parties and full entrustment (market-oriented bidding extension) projects. Good performance in value-added services for property owners is becoming a new track for property management companies in the next stage of competition. The Group will further increase the income- and profit-generating capabilities per capita in the segment of value-added services for property owners, so as to unleash the value of value-added services for property owners.
Further strengthening our innovative power to spark innovative momentum
The Group will make full use of the advantages of the “residential + commercial” dual-driven model, and will focus on the customers’ demand for living services to actively expand the business of value-added services for property owners. The Group will upgrade the Community Commercial 3.0 platform and keep launching subproduct packages such as the businesses of property decoration, rental and sale, community e-commerce, etc. Based on the assessment of the Red Life APP scenarios, the Group will also implement upgrades for existing service models to enable mutual growth in property and urban development.
The Group will continue to adhere to the original vision of “making lives warmer” and the customer-oriented principle, treat customers with sincerity and provide them with excellent services, and focus on its service capability, strong operations and power of innovation to more deeply explore and earnestly implement best practices, aiming at achieving rapid growth with quality, and becoming an enduring good life operator.
About Redsun Services Group Limited
Established in Nanjing in 2003, Redsun Services Group Limited is a fast-growing comprehensive community service provider focusing on the Yangtze River Delta. With a vision of “making lives warmer,” the Group has provided and endeavors to continue to “provide customers with high-quality services with sincerity” to better serve its customers. The Group has established the regional leading position in the property management market of Jiangsu province and is well-recognised nationwide. The Group was recognised as one of the Top 100 Property Management Companies by CIA for four consecutive years since 2017 and ranked 19th among the 2021 Top 100 Property Management Companies in terms of overall strength. In December 2020, the Group was included by FTSE Russell in the FTSE Global Micro-Cap Index. In 2021, the Group was selected as a constituent of the Hang Seng Property Service and Management Index.