A-living Smart City Services Co., Ltd. Class H · HKEX:3319
A-living Smart City Services Co., Ltd. Class H — A-Living Services — FY2019 Earnings Presentation
30 slides from A-living Smart City Services Co., Ltd. Class H's earnings presentation, 2020
Slide 1: A-Living Services Co., Ltd FY2019 Annual Results Presentation
Lifelong Caring (3319.HK) A-Living Services Co., Ltd FY2019 Annual Results Presentation
Slide 2: Results Highlights
01 Results a. Highlights
Slide 3: Results Highlights
Results Highlights Financial performance Centered on Leapfrogging growth of scale hit record high operation management • Received continued support from shareholders, • Put great effort in the improvement of management • Revenue RMB5,127.3 mn +51.8% actively carried out third-party expansion and eff
Slide 4: Financial Summary
02 Financial y Summary
Slide 5: Financial Highlights
Financial Highlights RMB ’000 2019 % of revenue 2018 % of revenue Change Revenue 5,127,293 3,376,749 +51.8% Cost of sales (3,244,433) (63.3%) (2,086,808) (61.8%) +55.5% Gross profit 1,882,860 1,289,941 +46.0% Gross profit margin 36.7% 38.2% (1.5p.p.) Selling and marketing expenses (43,103) （0.8%） (4
Slide 6: Detailed Figures of Three Business Lines
Detailed Figures of Three Business Lines Revenue and Growth Rate (by Business Lines) Gross Profit and Gross Profit Margin (by Business Lines) (RMB million) (RMB million) 3,500 2018 GP 2019 GP 2018 GP Margin 2019 GP Margin 2018 2019 3,000 2,830 54.4% 2,500 1,500 49.8% 47.7% 50.9% 2,000 1,812 27.4% 1,
Slide 7: Other Financial Figures
Other Financial Figures RMB '000 31/12/2019 31/12/2018 Change Total assets 9,387,515 7,296,549 +28.7% Total liabilities 2,881,830 1,786,512 +61.3% Goodwill 1,370,928 1,045,362 +31.1% Trade and other receivables 2,189,347 1,164,913 +87.9% Trade and other payables 1,756,980 1,192,556 +47.3% Operating
Slide 8: Business Review
Business - Review <i.
Slide 9: Leapfrogging Growth in Scale
Leapfrogging Growth in Scale Property management services recorded a revenue of RMB2,829.7 mn, up 74.2% y-o-y, accounting for 55.2% of the total revenue, with a GP margin of 25.3%, decreased 2.1p.p. y-o-y GFA Under Management （million sq.m） Contracted GFA （million sq.m） 31/12/2018 31/12/2019 31/12/2
Slide 10: Third-party Expansion Stepped Up, Endogenous Growth in Full Swing
Third-party Expansion Stepped Up Endogenous Growth in Full Swing Support from shareholders Brand influence boosted third- Made breakthrough in non- Attached importance to Average unit fee of newly party expansion residential segments and strategic cooperation with obtained third-party projec
Slide 11: Seized the Opportunity for Industry Consolidation by Making Best Use of Funds Raised
Seized the Opportunity for Industry Consolidation by Making Best Use of Funds Raised Lanzhou Chengguan (one of the Top Harbin Jingyang (A market leader 100 property management companies in Qingdao Huaren (Listed company on in Heilongjiang province) the NEEQ) China) Acquired leading companies in Acqu
Slide 12: Joined Forces with CMIG PM and New CMIG PM
Joined Forces with CMIG PM and New CMIG PM The acquisition of 60% equity interest in CMIG PM and New CMIG PM Recorded the largest M&A deal in the industry to date, achieved remarkable growth of scale Remarkable growth of Comprehensive Optimized nationwide coverage Great potential in VAS Increasing b
Slide 13: Gradual Price Hike to Reflect High-Quality Service
Gradual Price Hike to Reflect High-Quality Service Achieved breakthroughs in price hike for Flexible price hike mechanism for Favorable policies residential buildings public buildings In 2019, Beijing, Shenzhen, Guangdong, Managed to increase the management fee of Shaanxi, Qingdao, Hunan and other p
Slide 14: Community VAS-Continuous Growth
Community VAS-Continuous Growth Community VAS recorded a revenue of RMB485.3mn, up 68.1% y-o-y, accounting for 9.5% of the total revenue, with a GP margin of 54.4%, up 3.5p.p. y-o-y Community asset Community living Home management services improvement Xiaoya Repairing Lexiang Fresh Food Parkin
Slide 15: Community VAS-Driver for Future Growth
Community VAS-Driver for Future Growth Create a 360-degree comprehensive community services platform through platformization strategy and asset-light operation Establish an efficient, mature and easily Innovate community replicable tenancy recruitment and operation commercial products model, while c
Slide 16: Extended VAS
Extended VAS Extended value-added services generated a revenue of RMB1,812.3 mn, up 23.9% y-o-y, accounting for 35.3% of the total revenue, with a GP margin of 49.8%, up 2.1p.p. y-o-y Provision of sales center management services for property developers, including • Concierge and reception Sales Cen
Slide 17: Operation Review
04 Operation afin, Review <i.
Slide 18: Improved Operation Management from Four Major Aspects
Improved Operation Management from Four Major Aspects Vertical Business Regional offices & Functional segments acquired companies division layers of Coordination of Supporting KPI Operating entities resources operation Horizontally related Quality Capital Scale Efficiency Quality • Third-party Marke
Slide 19: Acquired Companies Achieved Rapid Growth Through Post-acquisition Empowerment
Acquired Companies Achieved Rapid Growth Through Post-acquisition Empowerment Revenue Net Profit Improvement of 20%+ 25%+ business efficiency Collaborative • Integration of assessment system, salary scheme, Acquired companies achieved development coupled with incentive excellent performance in 2019,
Slide 20: Optimization of Management and Improvement of Efficiency
Optimization of Management and Improvement of Efficiency Multi-function Technology • Determined expenditure budget based with incentive Fully adoption of on income to maintain stringent mechanism information platform control over management cost • Optimized the Group’s structure and set up four majo
Slide 21: Enhancement of Collection Rate and Stringent Management of Cash Flow
Enhancement of Collection Rate and Stringent Management of Cash Flow Enhanced collection rate Managed the cash flow in in full force accordance with standards Staffs in different regions and projects worked hard to guarantee service quality, communicated frequently and adopted multiple Significant i
Slide 22: Efficient Operation Secured by Information System
Efficient Operation Secured by Information System Cash collection Complaints handling Budget control Equipment monitoring Cost control Parking Financial Finance management statement Procurement Electronic Customer Data platform invoice Center Center Operation Supplier Employee management information
Slide 23: Maintained High-Quality of Services
Maintained High-Quality of Services Earned brand reputation with high- Awards received from authorities quality of services Recognitions from capital market Strived to improve satisfaction rate Communicated with over a million of property owners and achieved a satisfaction rate of 97.48% to problem
Slide 24: Response to Novel Coronavirus Outbreak
Response to Novel Coronavirus Outbreak – Timely Response and Demonstrating Value of Service • Responded quickly with meetings at group level Standing in the frontline of pandemic prevention • Initiated contingency plan and set up a dedicated team Timely response Safeguarding the communities and prot
Slide 25: Future Outlook
05 Future Outlook
Slide 26: Attach Equal Importance to Growth and Management
Attach Equal Importance to Growth and Management Strengthen corporate governance via High-quality and sustainable multiple approaches Control operating risks from different development dimensions Attach importance to management Focus on core businesses with innovative concept and risk control
Slide 27: Performance Boosters: Endogenous Development, Expansion and Innovation
Performance Boosters: Endogenous Development, Expansion and Innovation • Increase income and decrease expenditure, Explore and improve operating efficiency Expansion Endogenous • Gradual price hike to reflect high-quality existing Development service projects • Explore potential of community value-a
Slide 28: Internal Management: Informatization, Risk Control and KPI Evaluation
Internal Management: Informatization, Risk Control and KPI Evaluation Informatization Risk Control KPI Evaluation Full coverage of Effectively manage Ensure accomplishment informatization system operating risks through assessment • Cover projects obtained from • Improve the risk indicator • Cover al
Slide 29: Capital + Talent + Technology: Join Forces to Promote Rapid Growth
Capital + Talent + Technology: Join Forces to Promote Rapid Growth Capital • Integrate resources to create a platform for comprehensive business portfolio and whole industry chain • Assist each segment in consolidating its leading position in the industry Talent Technology • Improve lean management
Slide 30: A-Living Services Co., LTD.
A-Living Services Co., LTD. Lifelong Caring