EQS-News / 26/03/2021 / 11:26 UTC+8
Colour Life's Net Profit Increases, Debt And Financial Status Optimizes
Financial and operational highlights for 2020
? The Company took the initiative to adjust its strategies for development in pursuit of a better quality scale, and
the operation quality was significantly improved in 2020. The net profit recorded approximately RMB 542 million,
and the profit attributable to the owners of the company was approximately RMB 502 million. The net profit margin
increased by 1.2 percentage points to 15.1%,
? The Company continued to explore community value-added services, with 37.8 million registered users in Colour
Life's ecosystem and 16.7 million active users of the ecosystem.
? The Company contiued to optimized its debt and capital structure with the debt-to-asset ratio decreased by 1
percentage points to 55.8% compared with the same period in 2019, and cash flow from operating activities increased
by 51.6% to RMB 826 million year-on-year.
? The Directors recommended the payment of a final dividend of RMB 8.73 cent per share of common stock.
(26 March 2021, Hong Kong) The world's largest community service platform, Colour Life Services Group Co., Limited
("Colour Life" or the "Company", stock code: 1778.HK; together with its subsidiaries, collectively referred to as the
"Group") is pleased to announce the Group's audited annual results for 2020 (the "Period").
? Steady growth in performance; further optimization with debt structure and cash flow
The Group's annual revenue from main business recorded RMB 3,596 million in 2020. The Group enhanced profitability by
streamlining structure, reducing costs, increasing efficiency, and optimizing debt. By 31 December, 2020, Colour Life's
net profit was RMB 542 million, an increase of 1.2% year-on-year, and the net profit margin increased by 1.2 percentage
points year-on-year to 15.1%. The profit attributable to the owners of the company was RMB 502 million, an increase of
0.6% year-on-year.
Colour Life strived to optimize its debt and operating capital structure. The debt-to-asset ratio decreased by 1
percentage points to 55.8% year-on-year, and cash flow from operating activities increased by 51.6 % to RMB 826 million
year-on-year.
? Building an efficient management system in pursuit of quality scale
In the past year or so, the Group conducted a comprehensive review of its business, adjusted and integrated departments
and organizations, streamlined and optimized the management structure, promoted unified management to generate a
central pillar of strength for the Group, which was conducive to improving resource utilization, giving full play to
scale effects and cost advantages. Colour Life reform remuneration and incentive mechanisms to mobilize employees'
enthusiasm for business expansion, formulated and differentiated work and management standards for various business
types and different property fee standards, and created an efficient governance system and business management system
through series of adjustments and optimizations.
The Group adjusted its strategies for development to pursue growth in quality scale. By 31 December, 2020, the Total
Contracted GFA had reached 563.4 million square meters, and the number of corresponding communities had reached 2841.
Among them, by 31 December, 2020, the area of the Group's revenue-bearing GFA had reached 361.0 million square meters.
The Group's management projects cover 279 cities in China
? Steady growth of ecosystem users and wide application of innovative technology
With the promotion of more convenient ports such as WeChat applet, the number of users logging onto Caizhiyun (???)
through WeChat has increased steadily. By 31 December 2020, the number of registered users in Colour Life's ecosystem
surged to about 37.8 million, among which, the number of active users of the ecosystem increased to 16.7 million,
laying a user foundation for the future development of value-added services.
In addition to extending the online platform or corresponding technical guidance to other property management
companies, the Group continued to expand the scopes under which its online platform technology can be applied. For
instance, the Group developed "Changsha Gardener(????)" APP for the Changsha City Public Security Bureau to support
the "Mass Prevention and Treatment (????)" of the city. By 31 December 2020, the number of registered users of this
APP reached 6.1 million. Take service orders of patrol-controlling, since the launch of the APP on 28 March, 2019 till
31 December, 2020, a total of 3.9 million person-times took part in patrol; the platform totally dealt with 1,080,900
reports of traffic violations and 2,700 reports of drug abuse, making it an efficient window for urban residents to
participate in the construction of civilized cities.
? Recognized efforts in pandemic prevention pave way for expansion of value-added services
Anti-pandemic was an important work theme for property companies in 2020. Colour Life has not only withstood the test,
but its outstanding performance in the fight against the pandemic has been recognized by the customers and commended by
governments.
The spread of mass pandemic was under control in communities we served. Moreover, the infection rate of the property
owners of the communities in Wuhan under the Group's management was far below the city's average infection rate; Colour
Life's efforts were recognized, with 75% of its projects being commended by the government or praised by the property
owners.
On 10 March, General Secretary Xi Jinping paid a special visit to Donghu Xincheng residential communities in Wuhan. The
community is one of the 56 communities served by Colour Life in Wuhan and was awarded as "Pandemic-free Community" for
its exceptional performance in pandemic prevention and control.
During the pandemic, the bond between the property management staffs and the property owners deepened with mutual trust
and affectionate communication. The increased contacts between the staffs of the property management units and the
property owners also enabled the staffs to learn the various needs of the property owners, which can drive the
development of value-added services in the future.
? Leveraging favourable policies to develop value-added services through humanity + science and technology
The State Council proposed in the Report on the Work of the Government in 2020 to steadily advance new urbanization,
vigorously renovate urban residential communities, and establish sound community management and service mechanisms. In
January this year, 10 departments including the Ministry of Housing and Urban-Rural Development of the People's
Republic of China (MOHURD) jointly issued the "Notice on Strengthening and Improving Residential Property Management",
which put forward requirements for improving residential property management and its efficiency in terms of social
governance, governance structure of the Homeowners Association among other aspects. This is in line with Colour Life's
business development thinking. While we value customer satisfaction towards our basic property management services as
well as the promotion of neighbourhood relationship, we also never slacken to explore online businesses and value-added
services.
Colour Life and JD.com jointly promoted the implementation of a pilot business of smart parcel lockers in 2020. This
new partnership of commission generation through efficient turnover of lockers will significantly drive up
profitability compared to the fixed rental fees for the community space paid by other smart parcel locker operators. In
the meantime, property management staffs of the Group assisting in order delivery offers additional opportunities for
communication between staffs and the property owners, which is conducive to discovering the needs of the owners and
developing new businesses. The smart parcel lockers business is only one example in exploring community value-added
services. On this basis, the Group will continue to expand other types of community services, so that property services
can truly involve into the daily life of property owners.
Colour Life attached great importance to the satisfaction of property owners and endeavoured to provide diversified
product portfolios while thawing the human indifference among the residents by promoting various interaction among all
home owners in the community. In 2020, the Group held more than 8,000 events across the country, covering traditional
themed festivals such as Spring Festival, Lantern Festival, Dragon Boat Festival, Chinese Valentine's Day, Mid-Autumn
Festival, etc., as well as innovative themed activities like oriental boy scouts, street-stall economic activities,
college entrance examination supporting activities, and oriental neighbour festival, etc., totalling 550,000
person-times offline participants and 2 million person-times online participants.
Based on the in-depth understanding of the community, Colour Life will continue to discover, explore, and enhance the
value of community business, and build a beautiful community supported by the three pillars of humanity, technology and
harmony.
? Multi-dimensional efforts to support future growth
Looking ahead, Mr. PAN Jun, chairman of Colour Life Services Group Co., Limited remarked: In the past year, the
property industry has been well recognised by the society, supported by the government with relevant policies, while
ushering in a wave of capital-seeking. It is fair to say that under the influence of external environment and internal
factors, the property industry is undergoing tremendous changes, which makes it all the more important for us to stay
calm, apply ourselves to the present and contemplate our future.
The test posed by the COVID-19 pandemic and the pursuit of capital have brought challenges and opportunities to (MORE TO FOLLOW) Dow Jones Newswires
March 25, 2021 23:26 ET (03:26 GMT)