CHENGDU, China, December 17, 2021 / PRNewswire / – Enabled December 17, 2021, Desun Real Estate Investment Services Group Co., Ltd. (Desun Services) (02270.HK) rang the opening bell and debuted on the Hong Kong Stock Exchange (HKEX). The stock price opened up 4.5% on the first day of trading and surged to over 8% during the trading session, with intraday trading volume of nearly 17 million Hong Kong dollars.
As indicated in the Prospectus, at May 31, 2021, the GFA (gross floor area) under management was approximately 4.2 million square meters, of which, the total GFA of residential properties under management was approximately 1.9 million square meters, representing 44.7 % of GFA under management, while total GFA of non-residential properties under management was approximately 2.3 million square meters, representing 55.3% of GFA under management.
From 2018 to 2020, GFA managed by Desun Services grew from around 0.5 million square meters to around 3.8 million square meters, representing a CAGR (compound annual growth rate) of around 175, 7%; GFA contracted increased from about 1.3 million square meters to about 6.8 million square meters, representing a CAGR of about 128.7%.
In terms of commercial performance, for fiscal 2018, fiscal 2019, fiscal 2020 and 5M2021, the company recorded a turnover of 63.964 million RMB, 69.116 million RMB, 127.922 million RMB and 89.159 million RMB, respectively, representing a CAGR of approximately 41.4% between 2018 and 2020. During the same period, the net result was 31.394 million RMB, 31.043 million RMB, 42.913 million RMB and 10.003 million RMB, respectively, representing a CAGR of approximately 16.9% between 2018 and 2020.
In terms of absolute numbers, compared to leading property management service companies with revenues exceeding 10 billion RMB and with the GFA under management amounting to over 100 million square meters, Desun Services is not eye-catching in terms of revenue and GFA under management. Nevertheless, the company has experienced regular growth thanks to its strengths to embark on the path of differentiated development.
The pursuit of a differentiated development of Desun Services manifests itself mainly in two dimensions:
First, the company is headquartered in the Cheng-Yu City Cluster, the engine of economic development in the southwestern region of the PRC. On the one hand, the Cheng-Yu City Cluster is a vigorously developed economic zone by the government, and the economic boom of the economic zone can stimulate the rapid expansion of enterprise business; on the other hand, the focus on the Sichuan-Chongqing region enables Desun Services to avoid the highly competitive cities around the Yangtze River Delta and prominent coastal regions, and firmly seize the opportunities for differentiated development .
Second, the company’s business is able to respond to a variety of scenarios, and its diversified income structure has contributed to more stable performance. The company is dedicated to serving a wide range of real estate clients, spanning residential properties, shopping streets and other commercial properties, industrial parks and office buildings, among others. According to the data, for fiscal years 2018, FY2019, FY2020 and 5M2021, the revenues generated by property management services represented respectively 47.1%, 49.5%, 48% and 51.6%, while the revenues generated by value-added services accounted for 52.9%. , 50.5%, 52% and 48.4%, respectively.
At this stage, it is particularly crucial for Desun Services to follow a differentiated development trajectory. Since last year, policies such as “Enhanced supervision of pre-sale deposit”, “three red lines” and “two centralizations” have been adopted successively, putting pressure on the sales of real estate developers in general. A few large real estate companies have even suffered from a breakdown in the capital chain. In the long term, in a context of the absence of real estate speculation, the justification for a sustained and high growth of real estate developers is hardly justified.
It has also led to a fundamental shift in the logic of growth for the entire property management industry. In recent years, the rapid expansion of property development companies has resulted in a constant flow of management resources and income for property management companies. But now, as developers gradually slow down the growth of their business, real estate development is starting to disassociate itself from property management and the property management industry is becoming more and more independent.
In the context of the logical evolution of the long-term growth of the whole property management industry, the pursuit by Desun Services of the differentiated development path is perhaps the best guarantee of a robust growth of its companies. performance.
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SOURCE Desun Real Estate Investment Services Group Co., Ltd.