HONG KONG, Mar 23, 2021 – (ACN Newswire via SEAPRWire.com) – Redsun Services Group Limited (“Redsun Services” or the “Group”), a fast growing comprehensive community services provider focusing on the Yangtze River Delta, has announced its annual results for the year ended 31 December 2020 (“FY2020”). Under the three-dimensional development plan, which consists of property management services, value-added services to non-property owners and community value-added services, the Group has performed brilliantly as reflected by its first annual results since listing.
— The Group’s revenue was RMB767.9 million, representing an increase of 52.7% compared with FY2019.
— The Group’s revenue generated from its business lines are as follows:
1) Revenue from property management services was RMB496.2 million, accounting for 64.6% of the total revenue, representing a year-on-year increase of 39.9%
2) Revenue from value-added services to non-property owners was RMB161.2 million, accounting for 21.0% of total revenue, representing an increase of 32.8% compared with last year
3) Revenue from community value-added services surged by 3.1 times to RMB110.4 million, accounting for 14.4% of total revenue
— Gross profit margin was 27.9%, an increase of 2.6 percentage points compared with FY2019
— Excluding the impact of listing expenses, adjusted profit achieved RMB93.3 million for the reporting period, an increase of 63.5% as compared with FY2019
— As at 31 December 2020, the Group had 159 projects under management, GFA under management is approximately 27.0 million sq.m., representing an increase of approximately 71.4% as compared with 31 December 2019.
— The Board recommended its first payment of a final dividend of RMB5.2 cents (equivalent to HK6.2 cents) per share for the year ended 31 December 2020.
Three-dimensional development segments actively explored new development pathways
The Group recorded total revenue of RMB767.9 million, representing a year-on-year growth of 52.7%. Revenue from community value-added services achieved a significant growth by 3.1 times; revenue from property management services increased by 39.9% when compared with FY2019; and revenue from value-added services to non-property owners increased by 32.8%. Overall profit margin reached 27.9%, up 2.6 percentage points versus FY2019. Excluding listing expenses, profit for the year amounted to RMB93.3 million, representing an increase of 63.5% from RMB57.1 million in FY2019. Net profit margin up 0.9 percentage point from FY2019 to 12.2%. At its first annual results since the Group’s listing, has recommended payment of a final dividend of RMB5.2 cents (equivalent to HK6.2 cents) per share, dividend payout ratio reaching 31%.
The Group has a healthy cash position with cash and cash equivalents amounting to RMB826.3 million, representing an increase of 361.3% when compared with RMB179.1 million as at 31 December 2019. The Group was in a net cash position and financially sound as of 31 December 2020.
As at 31 December 2020, the Group provided property management services and value-added services to 57 cities in China, with 159 projects under management, GFA under management was approximately 27.0 million sq.m., representing a rise of approximately 71.4% when compared with 31 December 2019. During the period, the Group’s GFA under management from third parties’ developers has increased from 30.0% to 52.0%, reliance from Redsun Properties (HK.1996) has lowered from 61.8% to 43.2%. The Group actively explored opportunities to capture market developments. It also increased the scale of property management by conducting strategic acquisitions with the focus on developing regions that have high economic output value. Additionally, the Group had entered into an equity cooperation arrangement with Chuzhou Yurun Property Management Company Limited and Wuhan Huidehang Elite Property Service Co., Ltd., last year, establishing a strong alliance that complements each other in terms of regions and sectors; increasing the Group’s market share in Anhui and Hubei; and improving its overall profit margin.
In 2020, the Group provided property management services to Taishan Street Kindergarten, International School Pukou and Xiaozhuang Campus in Jiangbei New District, Nanjing, which has not only enabled the Group to fill niche sectors such as education, but has also marked the beginning of a new chapter in diversification and market expansion. As the industry and governments at all levels began exploring urban services, the Group took the lead in reaching a cooperation agreement with the Taishan Street in Pukou District, Nanjing, to serve a number of old residential communities within its administrative area of 52.6 sq.m. The Group has been intensely cultivating the professional vertical market segments by leveraging the development and expansion of projects relating to various fields, including public services and municipal management services. Consequently, through the steady and orderly engagement in such segments, the Group has benefited from a first mover advantage.
Increase business scale, expand layout across multiple sectors, further market expansion and seize market share
In the future, the Group will continue to adhere to the strategy of “penetrating into the Greater Jiangsu Region, strengthening foothold in the Yangtze River Delta Region and expanding across major metropolitan areas”. With a combination of mergers, acquisitions and full entrustment (extension of bidding), the Group aims to leap-frog development in terms of expansion scale. While consolidating its position in the Yangtze River Delta, the Group will continuously identify acquisition opportunities in central, southwestern, and the central plains of China, along with the Greater Bay Area. It will also identify property management companies with good management standards and operating conditions as potential acquisition targets.
Customer-centric philosophy with refined services to create a joyful community conducive to “making lives warmer”
Under the “customer-centric” service philosophy, the Group takes the perspective of property owners in considering their actual needs. From such considerations, the Group strengthens its product lines by continuously upgrading property service products during the entire product lifecycle, leading to precise output of deliverables via two lines of services, namely, residential and non-residential services. Moreover, the Group can rapidly replicate service standards to ensure customer satisfaction.
Empowerment of technology, diversification of the communal ecology, upgrading of life-catering
community services, and comprehensive improvement in operational efficiency
Based on the motto “making lives warmer”, the Group will further upgrade its internal management system and increase investment in intelligent technologies so as to improve the quality and operational efficiency of the communities that it serves. In addition, the continuous advancement of intra-enterprise smart system, management and control of the panoramic plan platform, cloud-eye system, community commercial online mall, and online management and control platform for investment and development, along with a system of recruitment, procurement and treasury management system, will ensure the classified launch of products, precise positioning of projects, and accurate assessment of the service needs of customers. This will also lead to the provision of prompt services and products that cater for customers’ needs and the buildup of “product prototypes of Redsun Services”, while at the same time uplift product standardization, concentration, digitization and automation, and thus ensure quality services are delivered in a consistent manner.
From the Greater Jiangsu Region to the Yangtze River Delta Region, and across the entire country, Redsun Services will provide its customers with dedicated property management services, advanced community value-added services, and sincere non-property-owner value-added services. It will also provide its staff members and shareholders with high-quality sustainable growth.
About Redsun Services Group Limited
Established in Nanjing in 2003, Redsun Services Group Limited is a fast-growing comprehensive community service provider focusing on the Yangtze River Delta. With a vision of “making lives warmer,” the Group has provided and endeavor to continue to “provide customers with high-quality services with sincerity” to serve its customers. The Group has established the regional leading position in the property management market of Jiangsu province and is well-recognised nationwide. The Group was recognized as one of the Top 100 Property Management Companies by CIA for four consecutive years since 2017 and ranked 25th among the 2020 Top 100 Property Management Companies in terms of overall strength. In December 2020, the Group was included by FTSE Russell in the FTSE Global Micro-Cap Index.
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