On March 26, 2024, Xi'an Kingfar Property Services Co., Ltd. (“Jingfa Property”) from Xi'an, Shaanxi submitted a prospectus to the Hong Kong Stock Exchange to be listed on the Hong Kong Main Board. This is another application after its submission expired on September 20, 2023.
Jingfa Property received the China Securities Regulatory Commission's Overseas Issuance and Listing Filing Notice (State Joint Letter 2024) No. 351) on February 7, 2024, and plans to issue no more than 19.166,800 shares of overseas listed common shares.
Link to the prospectus for Jingfa Property:
Main business
Jingfa Property, founded in 2000, is a comprehensive urban service and property management service provider, providing urban services for public facilities and infrastructure, and property management services for residential areas and commercial properties. The company's brand “Jingfa Property” has established an important market position in Shaanxi and has become a well-known brand in Xi'an and Shaanxi. The business has now expanded to northwest China, covering Xi'an, Tongchuan, Hancheng and Shihezi.
In 2023, according to its comprehensive strength, Jingfa Property was rated by the China Index as one of the top 100 property service enterprises in China in 2023 and one of the leading property service enterprises with Chinese characteristics - government property services in 2023. In 2022, Jingfa Property was ranked first in the 2022 Shaanxi Provincial Top 50 Property Service Enterprises with Comprehensive Strength by Kerui and China Association of Materials Research, and was rated as one of the top 50 state-owned property service enterprises in China based on comprehensive strength. In terms of service quality and market reputation, Jingfa Property was also ranked as one of the top 20 commercial property management service providers by Clarion and Yiju.
As of December 31, 2023, Jingfa Property has contracted 149 projects, with a total contract area of 15 million square meters and a total construction area of 14.6 million square meters under management. During the track record period, Jingfa Property provided public property management services to a number of government agencies and public authorities at different levels in Shaanxi. As of December 31, 2023, Jingfa Property provides cleaning and maintenance services for a total area of about 11.3 million square meters of urban roads, overpasses and underground passages, and 148 public toilets. It also operates 3 garbage compression stations with a maximum capacity of 81,100 liters per day.
The revenue from Jingfa Property mainly comes from urban services, residential property management services, and commercial property management services.
Urban services mainly include (i) public property management services, providing public property management services for government buildings, educational institutions and hospitals, including cleaning, order maintenance, facility maintenance services, etc.; (ii) urban sanitation services, providing cleaning and maintenance services for public facilities and infrastructure, providing urban garbage collection services through garbage compaction stations operated by the company, providing domestic waste mobile phone services to enterprises, residential communities, government agencies, and public authorities; (iii) urban value-added services, including government support services, catering services and public parking fees;
Residential property management services, providing property developers, owners and residents, including basic property management services and value-added services;
Commercial property management services, providing basic property management services and value-added services for developers, owners and portfolios of commercial properties, including office buildings and industrial parks;
Shareholder structure
According to the prospectus, in the shareholder structure of Jingfa Property before listing,
The Xi'an Economic Development Zone Management Committee directly holds 10% of the shares through the wholly-owned Economic Development Holdings and 90% of the shares through the Economic Development Group, which owns 88.5%;
Other shareholders of the Economic Development Group include:
Shaanxi Financial Asset Management Co., Ltd. holds 7.10% of the Economic Development Group;
Jianxin Financial Asset Investment Co., Ltd. holds 4.40% of the shares in the Economic Development Group.
Directors and Executives
The board of directors of Jingfa Property consists of 9 directors, including 3 executive directors (Mr. Wu Suozheng, Mr. Sun Qi, Mr. Cheng Hongrang), 3 non-executive directors (Mr. Zhao Junping, Mr. Yang Gang, and Ms. Li Lingxiao), and 3 independent non-executive directors (Mr. Lin Zhaorong, Dr. Jiang Li, and Mr. Cao Yang).
3 members of the Supervisory Board (Ms. Li Li, Mr. Bai Xiong, Mr. Geng Hexiang).
In addition to executive directors, executives include Deputy General Manager Mr. Wang Gang, Deputy General Manager Mr. Liu Wei, Deputy General Manager Mr. Ren Baobin, Deputy General Manager Mr. Yang Weifeng, Deputy General Manager, Mr. Wang Lipeng, Deputy General Manager and Quality Director, Mr. Xu Fei, Chief Financial Officer, Ms. Zhu Ke, Deputy General Manager, Chief Executive Officer and Office Director, and Mr. Li Xiuyuan, Secretary of the Board of Directors and Co-Company Secretary.
Company performance
According to financial data, in the past 2021, 2022 and 2023, the operating income of Economic Development Properties was RMB 594 million, RMB 707 million and RMB 862 million, respectively, and the corresponding net profit was RMB 31.155 million, RMB 37.439 million, and RMB 51.018 million, respectively.
Intermediary team
The intermediary team for Jingfa Property's IPO mainly includes: Guangyin International as its sole sponsor; KPMG as its auditor; Guo Feng and Shengde as the company's Chinese lawyers and Hong Kong lawyers; China Commerce and Chow Chun Hsuan (China Commerce Joint Venture), respectively; Asia Pacific Asset as its property valuer; and China Index Research Institute as its industry consultant.