Chinanews.com, Finance and Economics, Sept. 3: recently, Jinmao property Development Co., Ltd. (referred to as "Jinmao property") submitted a prospectus to the Hong Kong Stock Exchange for listing on the main board. China International Capital Corporation and HSBC act as co-sponsors.
According to the prospectus, Jinmao property is a fast-growing and leading provider of high-end property management and urban operation services in China, and its controlling shareholder is Jinmao of China. As of March 31, 2021, the total construction area of Jinmao property is about 18.1 million square meters.
Income has grown at a compound annual rate of 28.2% in the past three years.
In terms of income, the income from 2018 to 2020 was 574 million yuan, 788 million yuan and 944 million yuan respectively, with a compound annual growth rate of 28.2%; corresponding profits were 17.487 million yuan, 22.624 million yuan and 77.124 million yuan, with a compound annual growth rate of 110%. In the first three months of this year, Jinmao property had an income of 321 million yuan and a corresponding profit of 21.732 million yuan.
The business model is similar to that of listed property enterprises. The income mainly comes from property management services, non-owner value-added services and community value-added services.
As of June 30, 2021, the income of Jinmao property from property management services, non-owner value-added services and community value-added services is 185 million yuan, 106 million yuan, 79.458 million yuan, 108 million yuan and 27.825 million yuan respectively. Among them, the proportion of income is 57.7%, 33.0%, 24.7%, 33.7% and 8.6%, respectively.
Overall gross profit margin 25.1%
With regard to the change in gross profit margin of profitability indicators, Jinmao property said in the prospectus, "our overall gross profit margin fell from 20.0% in 2018 to 19.2% in 2019, mainly due to increased investment in intelligent management systems." this has led to a reduction in the gross margin of community value-added services. Our overall gross profit margin increased from 19.2% in 2019 to 24.9% in 2020, mainly due to the increase in gross profit margin of our property management business, and the increase in revenue from pre-delivery services and community space operation services. these two services usually generate higher gross margins than other services we provide. Our overall gross profit margin increased from 10.7% in the three months ended March 31, 2020 to 25.1% in the same period in 2021, mainly due to the increase in gross margin in our property management business; and the contribution of new advisory services and other value-added services with usually high gross margins (such as pre-planning and design services). "
In addition, Jinmao property said in the prospectus that it manages and operates a diversified and growing portfolio of commercial properties, mainly offices and shopping malls, as well as public properties such as schools, government facilities and other public spaces.
According to the disclosure, the property management portfolio of Jinmao property includes many types, such as residential property, commercial property and public property. As of March 1, 2021, Jinmao property has a total contract construction area of 41.3 million square meters in 45 cities, of which 71.4% are located in first-and second-tier cities. In 27 cities, Jinmao property has 101 projects under management, corresponding to a construction area of 18.149 million square meters, including 67 residential projects. the management area is 14.975 million square meters, accounting for 82.5%. There are 34 non-residential projects, with an area of 3.174 million square meters under management, accounting for 17.5% of the total.
In addition, as of the end of March 2021, 21 of Jinmao property's managed projects came from independent third-party developers, covering an area of 2.183 million square meters, accounting for about 12%.
IPO fundraising purpose
Will be used to selectively identify strategic investment and acquisition opportunities with companies engaged in property management, urban operation services, or community operations, and to expand the scale of our business and consolidate our leading industry position It will be used to upgrade the smart management service system and the development of our smart community and smart city solutions. it aims to provide our owners and residents with a more convenient and higher quality of life experience and to further improve the cost-effectiveness of property management and urban operation services; will be used to further develop our community value-added services to diversify service products and enhance profitability; will be used for working capital and general corporate purposes.
(comprehensive article on finance and economics of Chinanews.com / Wei Dong)