On July 2, Futu News reported that $KINGFARPROPERTY (01354.HK)$Today's pre-market opened high, up 12%, at HKD 8.4 with a transaction volume of HKD 1.1563 million and a total market value of HKD 560 million.
Company overview
Jingfa Property is a state-owned comprehensive urban service and property management service provider in Shaanxi Province, whose business covers northwest China. After more than 20 years of development, the company has established an important market position in the urban service and property management industry in Shaanxi Province and has become a well-known brand. According to data from China Index Academy, as of December 31, 2023, the company holds a market share of approximately 1.8% in the market value of buildings managed in Shaanxi Province, ranking third among property management service providers operating in Shaanxi Province in 2023. With the company's market position in Shaanxi Province, its presence has been extended to northwest China. As of the last practicable date, the company's business covers Xi'an, Tongchuan, Hancheng and Shihezi.
The following table lists the company's three main business lines; the main services provided by the company in each business line; the types of properties the company provides services for in each business line; and the main clients of the company in each business line during the performance period.
As of December 31, 2023, the company has signed contracts to provide public property management services, basic residential property management services, and basic commercial property management services to 149 projects in China, with a total contracted construction area of 15 million square meters and a total managed construction area of 14.6 million square meters.
The long-term strategic relationship between the company and Jingfa Holdings Group has contributed greatly to the company's development since its inception and has laid a solid foundation for its stable growth during the performance period. Looking to the future, considering the long-term cooperation between Jingfa Holdings Group and the company; the company's understanding and familiarity with Jingfa Holdings Group's standards and requirements, which helps to reduce communication costs for Jingfa Holdings Group; the shared interests of Jingfa Holdings Group and the company; the time and effort required to identify and hire new service providers with comparable experience and abilities to provide comparable standards and scope of services; and both Jingfa Holdings Group and the company are state-owned enterprises with relatively stable controlling ownership, the directors believe that the mutually beneficial relationship between the company and Jingfa Holdings Group is unlikely to have any significant adverse changes and will enable the company to continue to be employed by Jingfa Holdings Group in the future.
Financial overview
In terms of financial condition, Jingfa Property's revenue in 2021, 2022 and 2023 was RMB 594 million, RMB 707 million and RMB 862 million, respectively, with a compound annual growth rate of 20.52%; during the same period, the gross profit was RMB 86 million, RMB 101 million and RMB 118 million, respectively, with a compound annual growth rate of 17%.
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Editor/Jamie