Comprehensive Overview

The Group is a property management service provider, providing property management and value-added services for non-residential properties. According to Savills reports, based on the construction area of managed properties in 2018, the group is the fourth largest non-residential property management service provider in Henan Province.

As of February 16, 2020, the Group's managed property association covered 17 commercial buildings, 3 government buildings and an industrial park, with a total construction area of about 2.4 million square meters, while the total construction area of the Group's contract property association was about 4.1 million square meters. For the three years ending at the end of 2018 and the nine months ending at the end of September 2019, most of the Group's managed properties were developed by its associates, Zhengshang Group.

Risk Factors

The Group's future growth is determined by the Group's prospects. As of December 31, 2018, the Group's revenue from providing property management services to Zhengshang Group's property development businesses accounted for about 88.3% of the Group's revenue from property management and value-added services. If there is any adverse development situation in the operation of Zhengshang Group or its ability to develop new properties, the Group's growth prospects may be significantly adversely affected.