Link to Hongying City Operation Prospectus:
https://www1.hkexnews.hk/app/sehk/2023/105483/documents/sehk23062500031_c.pdf
Main business
Hongying City Operation, founded in September 2015, is a leading provider of state-owned city services and operations, providing various services such as property management services, urban services, and commercial operation services.
According to research by the China Index Institute, in 2023, Hongying City Operations ranked 49th among the top 100 property service companies in China. In 2022, in terms of comprehensive strength, gross profit and city service revenue, Hongying City Operations ranked first among the top 100 Chinese property companies headquartered in Hunan, and is also the only company among them that provides urban lighting system operation.
Property management services, including various property management services for public, commercial and residential properties, as well as value-added services. In 2022, the total number of property management projects operated and managed by Hongying City was 63, with a total construction area of 10.3 million square meters;
Urban services, including landscaping and engineering, lighting system operation, parking lot operation, and municipal sanitation services. In 2022, the total number of projects under management was 148, including 4 lighting system operation projects, 142 parking lot operation projects, 2 municipal sanitation projects, and 98 landscaping and engineering projects completed. As of December 31, 2022, 43 projects were ongoing.
Commercial operation services to manage various commercial projects, such as commercial office buildings, commercial areas and industrial parks. As of December 31, 2022, the total number of pipeline projects was 44, and the construction area under management was 534,000 square meters.
In 2022, about 66% of the revenue from Hongying City's operations came from the controlling shareholder Chengfa Group and its related entities, and about 34% of revenue came from independent third parties.
Shareholder structure
According to the prospectus, Hongying City operated under the shareholder structure before listing,
Chengfa Group, a subsidiary of the Changsha State-owned Assets Administration Commission, directly holds 95% of the shares;
Chengfa Group holds 5% of the shares through Yuelushan Company, which is indirectly wholly-owned;
Chengfa Group holds a total of 100% of the shares.
directorates
The operating board of Hongying City consists of 8 directors, including 4 executive directors, 1 non-executive director, and 3 independent non-executive directors.
Board of Directors (8 members)
Supervisory Board (3 members)
Executives (10)
In addition to the four executive directors, Chairman Xie Yi, General Manager Mr. Yan Yongxiang, Director of Finance, and Mr. Wang Guofu, Secretary of the Board of Directors, Mr. Shen Zhouyuan, Deputy General Manager, Mr. Liu Aiguo, Deputy General Manager, Mr. Liu Yi, Deputy General Manager, Ms. Fu Yan, Assistant General Manager, Mr. Xie Ju, Assistant General Manager, and Mr. Xiong Hao, Assistant General Manager.
Company performance
According to the prospectus, in the past three fiscal years of 2020, 2021 and 2022, the operating income of Hongying City was RMB 278 million, RMB 432 million and RMB 529 million, respectively, and the corresponding net profit was RMB 34.617 million, RMB 408.41 million, and RMB 53.596 million, respectively.
Intermediary team
Hongying City operates the main intermediary team for this IPO: CICC as its sole sponsor; KPMG as its auditor; Commerce and Tianyuan (Hong Kong) as its Chinese lawyers and Hong Kong lawyers; Deheng and Kindu (Hong Kong) as its brokerage firm's Chinese lawyers and Hong Kong brokerage firm's lawyers; and China Index Research Institute as its industry advisors.