- GFA Under Management Increases 30.6% to 44.9 Million sq.m.
- External Expansion Sees Rapid Growth
- Profitability Remains Stable
Redsun Services Group Limited (Redsun Services or the Group), a fast-growing comprehensive community services provider with a strong presence in the Yangtze River Delta region, has announced its interim results for the period ended 30 June 2022. The Group reported collaborative development in its three business lines of property management services, value-added services for non-property owners and community value-added services. The Group’s external expansion grew rapidly while profitability remained stable.
FY2022 Interim Results Highlights:
— The Group’s revenue was RMB553.9 million, representing an increase of 4.7% compared with the same period last year.
— Revenue from property management services was RMB404.2 million, representing an increase of 15.3% as compared with the corresponding period last year and accounting for 73.0% of the total revenue.
— Profitability remained stable with a gross profit margin of 27.2%, while profit attributable to equity shareholders was RMB69.3 million, an increase of 15.8%.
— As at 30 June 2022, the Group had a total of 376 contracted projects, with contracted GFA increasing approximately 14.7% to approximately 56.9 million sq.m., of which there were 307 projects under management, with GFA of approximately 44.9 million sq.m., representing an increase of approximately 30.6%.
Three-pronged business model with collaborative development
The Group recorded total revenue of RMB553.9 million, representing an increase of 4.7% compared to the same period last year. Revenue from property management services increased by 15.3%, accounting for 73.0% of the total revenue. Overall gross profit reached RMB150.8 million with a gross profit margin of 27.2%. Profit attributable to equity shareholders was RMB69.3 million, an increase of 15.8% as compared with the same period last year. The net profit margin reached 13.3%.
As at 30 June 2022, the Group provided property management services and value-added services in 62 cities in China, with 376 contracted projects and contracted GFA of approximately 56.9 million sq.m., representing an increase of approximately 14.7% when compared with 30 June 2021, of which the GFA under management was approximately 44.9 million sq.m., an increase of approximately 30.6% as compared with the same period last year, serving as proof that the Group’s management scale has reached a new level. During the period, the Group’s GFA under management from third-party developers increased to 63.0%, representing an increase of 3.6 percentage points as compared with the same period of last year.
External expansion continues at a rapid pace, and demonstrates tending capabilities
During the review period, the Group gave play to the advantage of Nanjing “home city” to expand the development tracks of urban services. The Group continued to develop service projects in Taishan Street, Jiangbei New District, Nanjing and Xigang Street, Qixia District, Nanjing. Continuously penetrating the sector of logistics management services for expressways, the Group cooperated with Hubei United Transportation Investment Co., Ltd. to provide logistics services such as cleaning environment, order maintenance and engineering maintenance for its 12 stations including Wuhan Heping-Zuoling Expressway. Leveraging its reputation and courteous and customized professional services provided during the epidemic in Shanghai, the Group successfully obtained the Shanghai Henlius Industrial Park Project through market-oriented bidding expansion to provide property management services for large-scale pharmaceutical enterprises
Adhering to integrity and innovation to promote high-quality development
In 2022, the Group insisted to think everything from the customers’ perspective and explore future demand of customers. It has upgraded the Redsun Mode 2.0 to establish “five good services” with basic service quality as the focus, which further solidified our basic service quality. The “Redsun Housekeeper” service products under this model have now been launched in full swing in the Group. The Group’s organizational efficiency has been continuously improved and its efforts to enhance quality and efficacy have achieved a satisfactory outcome.
In addition, focusing on customers’ needs and advantageous areas of property management enterprises, the Group constantly diversified the community living service ecosystem and built up professional service capabilities. It integrated premium supplier resources and continuously penetrated deeply into various segments of business including Redsun community resources value-added services, Redsun Property Decoration Centre, and Hong Life Rental & Sales Centre. While extending the professional values of the Group, Redsun Services has also upgraded the value of assets and community spaces for property owners. At the same time, in compliance with the boost of “intelligent empowerment”, the Group actively promoted digital construction and carried out smart upgrades, where it continuously iterated and upgraded the “Hongtu panoramic smart data platform”, “management and control platform of all-dimensional plan”, “Hongzhi Cloud Monitor” and “online management and control platform of investment and development”, for the purpose of enhancing management efficiency while controlling operation costs.
In the future, Redsun Services will continue to adhere to the high-quality and steady development strategies. With the support of comprehensive improvement in the organizational and cultural ability of talents, the Group will enhance its professional, standardized, high-quality, systematic service operational capabilities as well as service design and innovative capabilities, so that it can create excellent comprehensive servicing capabilities in the all-round development of “space + scenario” operational capabilities, and take this as the basis for building its healthy and sustainable development capabilities to realize the long-term value of the Group.
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-recognized nationwide. The Group was recognized as one of the Top 100 Property Management Companies by CIA for four consecutive years since 2017 and ranked 18th among the 2022 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.