A-living Smart City Services Co., Ltd. Class H · HKEX:3319
A-living Smart City Services Co., Ltd. Class H — A-Living Services — H1 2020 Earnings Presentation
31 slides from A-living Smart City Services Co., Ltd. Class H's earnings presentation, 2020
Slide 1: FY2020 Interim Results Presentation
Lifelong Caring A-Living Services Co., Ltd. 3319.HK FY2020 Interim Results Presentation
Slide 2: Disclaimer
Disclaimer This presentation may contain forward-looking statements. Any such forward-looking statements are based on a number of assumptions about the operations of the A-Living Services Co., Ltd. (the “Company”) and factors beyond the Company's control and are subject to significant risks and unce
Slide 3: Results Highlights
01 Results Highlights
Slide 4: Results Highlights
Results Highlights Leap-frog growth GFA scale exceeded 600mn sq.m. • Consolidated CMIG PM and achieved breakthroughs in terms of • Revenue 4,001.6mn +78.5% geographical coverage and business portfolio in market expansion. Newly obtained contracted GFA through third-party expansion was 23.02mn sq.m..
Slide 5: Results Summary
02 Results Summary
Slide 6: Financial Highlights
Financial Highlights RMB ’000 1H2020 % of revenue 1H2019 % of revenue Change Revenue 4,001,627 2,241,228 +78.5% Cost of sales (2,726,261) (68.1) (1,411,776) (63.0%) +93.1% Gross profit 1,275,366 829,452 +53.8% Gross profit margin 31.9%^ 37.0% (5.1 p.p) Selling and (28,991) (0.7%) (18,173) (0.8%) +59
Slide 7: Consolidation of CMIG PM Reflected on Financial Statement
Consolidation of CMIG PM Reflected on Financial Statement Revenue Net Profit Net Profit Margin (RMB million) 78.5% 53.6% 4,002 873 Contribution from consolidation of 26.1% Contribution CMIG PM 0.7 p.p. from consolidation of 120 1,112 25.4% CMIG PM 568 2,241 NP margin excluding the contribution from
Slide 8: 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) 1H2019 GP 1H2020 GP (RMB million) 3,500 1H2019 GP Margin 1H2020 GP Margin 1H2019 1H2020 3,000 55.0% 2,620 1,500 49.2% 2,500 51.4% 48.9% 2,000 26
Slide 9: Other Financial Figures
Other Financial Figures Change (excl. Contribution RMB '000 As of 30 Jun 2020 As of 31 Dec 2019 Change contribution from from CMIG PM CMIG PM) Total assets 12,830,250 9,387,515 +36.7% 2,836,013 +6.5% Total liabilities 5,213,768 2,881,830 +80.9% 1,824,726 +17.6% Total equity 7,616,482 6,505,685 +17.1
Slide 10: Business Review
03 Business Review
Slide 11: Differentiated Positioning to Achieve Rapid Growth
Differentiated Positioning to Achieve Rapid Growth • Kept abreast of the industry trend and made a • Underscored the four indicators of “quality, foray into non-residential businesses in scale, profitability and cash flow” advance to establish its first-mover advantages in the niche markets with hig
Slide 12: Property Management Services
Property Management Services Property management services recorded a revenue of RMB2,619.6mn, up 113.4% y-o-y, accounting for 65.5% of the total revenue, with a GP margin of 21.9%, decreased by 4.7 p.p. y-o-y GFA Under Management （million sq.m） Contracted GFA （million sq.m） 31/12/2019 30/06/2020 Ove
Slide 13: Property Mgt Services – All-round Breakthrough in Expansion
Property Mgt Services – All-round Breakthrough in Expansion All-out efforts in market expansion with diversified project sources. Newly increased contracted GFA obtained through third-party expansion exceeded 23mn sq.m and newly obtained annualized contract value was over RMB690mn. Large-scale proje
Slide 14: Property Mgt Services – Boosted Non-residential Business
Property Mgt Services – Boosted Non-residential Business In 1H2020, the Group boosted its businesses in public buildings, commercial offices and other niche markets, obtained more than 10 projects with ten- million-yuan scale. Acquired companies obtained contracted GFA of 12.59mn sq. m., and newly o
Slide 15: Property Owners VAS – Operating Model Upgrade
Property Owners VAS – Operating Model Upgrade Property owners VAS recorded a revenue of RMB422.7mn, up 105% y-o-y, accounting for 10.5% of the total revenue, with a GP margin of 55%, increased by 3.6 p.p. y-o-y Community Asset Management Recorded a revenue of RMB95.1mn, up 9.3% y-o-y, accounting for
Slide 16: Property Owners VAS – Developed Economic Ecosphere
Property Owners VAS – Developed Economic Ecosphere Actively developed new retail in communities • Became an official partner of JD Alliance and connected A-Steward to JD Mall, providing owners with a more accurate, more affordable and more convenient shopping experience • Developed themed group purc
Slide 17: Extended VAS
Extended VAS Extended VAS recorded a revenue of RMB959.3mn, up 18.8% y-o-y, accounting for 24% of the total revenue, with a GP margin of 48.9%, decreased by 0.3 p.p. y-o-y Accounting for 44.6% of the Accounting for 41.2% of the Accounting for 14.2% of the Sales Center revenue from extended VAS, reve
Slide 18: Operation Review
04 Operation Review
Slide 19: Improved Quality and Efficiency in Four Major Aspects
Improved Quality and Efficiency in Four Major Aspects Laid a solid foundation with high quality • Continued to improve service quality through three-level quality control system and the export of standardized operation • Customized service products with different portfolio features to enhance custom
Slide 20: Optimized Lean Management and Remained Diligent in Receivables Collection
Optimized Lean Management and Remained Diligent in Receivables Collection Lean Management Operating profit margin of projects significantly improved Visible data monitoring Full coverage of Problem identification Operating Scale Cost Control Cash Flow business through data analysis Efficiency Expans
Slide 21: Post-Investment Integration with Remarkable Results
Post-Investment Integration with Remarkable Results Built management and control system in top level, optimized authorization structure and clearly defined the Acquired companies Clearly defined duties management responsibilities for major issues with in 1H2020 and authority • Newly increased contra
Slide 22: Innovative Management with Appropriate Incentives
Innovative Management with Appropriate Incentives Long-term incentive scheme and Partner mechanism to provide clear Adoption of market-oriented alignment of long-term interests promotion paths remuneration scheme to improve per capita performance • Implemented a long-term incentive • Formed a partne
Slide 23: Well-Recognized Brand Strength
Well-Recognized Brand Strength Ranked 4th out of “2020 Top 100 Property Management Companies in China” MSCI A member of HSCI, Ranked 1st out of “2020 China Top 100 Leading Property Management eligible stocks for ESG” Companies in terms of Growth Potential” Shenzhen-Hong Rating Kong Stock Connect and
Slide 24: Demonstration of Value in Epidemic Control and Prevention
Demonstration of Value in Epidemic Control and Prevention Responded promptly and established a three- Took the lead in the industry and Proactively responded to challenges, kept cost level prevention and control mechanism stood on the front line under control and explored potential opportunities • U
Slide 25: Future Outlook
05 Future Outlook
Slide 26: Strategic Upgrade Along the Entire Industry Chain
Strategic Upgrade Along the Entire Industry Chain Optimize business portfolio and industrial chain layout to become a leading service platform with 5 major business segments and an 18-brand matrix A-Living Smart City Services Co., Ltd Stock code：3319.HK Comprehensive services Comprehensive services
Slide 27: Intelligent City Management Platform
Intelligent City Management Platform Market outlook • City service is moving towards market-oriented development and undergoing industry consolidation, while the absence of a comprehensive city management platform indicating there is an untapped market with market size over a trillion yuan. • City c
Slide 28: Accelerate Expansion
Accelerate Expansion Develop new business segment Build multi-channel integration of – city services resources Establish the fifth strategic business Keep pace with the industry development and segment to break through scope of actively participate in the mixed ownership business, explore the blue o
Slide 29: Performance Boosters: Endogenous Development and Lean Management
Performance Boosters: Endogenous Development and Lean Management Focus on endogenous development • Strive for perfection in the service quality, improve property owners’ experience and strengthen customer stickiness • Sort out projects to be fully prepared for price hike in an orderly manner • Build
Slide 30: Innovative Operation of Community Economy
Innovative Operation of Community Economy Become a community ecosphere platform with huge traffic and a GFA of more than 600mn sq.m., convert traffic into Traffic revenue, and integrate cross-regional resources to realize platform economies of scale Make full use of information and resources to meet
Slide 31: Lifelong Caring
Lifelong Caring A-Living Services Co., Ltd.