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FY2019 Interim Results Presentation
(3319.HK)
A-LIVING SERVICES CO., LTD.
Lifelong Caring
免责声明
2
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 uncertainties, and accordingly, actual results may differ materially from
these forward-looking statements.
The Company undertakes no obligation to update these forward-looking statements for events or circumstances that occur
subsequent to such dates. The information in this presentation should be considered in the context of the circumstances
prevailing at the time of its presentation and has not been, and will not be, updated to reflect material developments which
may occur after the date of this presentation. The slides forming part of this presentation have been prepared solely as a
support for oral discussion about background information about the Company. This presentation also contains information
and statistics relating to the China and property development industry. The Company has derived such information and
data from unofficial sources, without independent verification. The Company cannot ensure that these sources have
compiled such data and information on the same basis or with the same degree of accuracy or completeness as are found
in other industries. You should not place undue reliance on statements in this presentation regarding the property
development industry. No representation or warranty, express or implied, is made as to, and no reliance should be placed
on, the fairness, accuracy, completeness or correctness of any information or opinion contained herein. It should not be
regarded by recipients as a substitute for the exercise of their own judgment. Information and opinion contained in this
presentation may be based on or derived from the judgment and opinion of the management of the Company. Such
information is not always capable of verification or validation. None of the Company or financial adviser of the Company, or
any of their respective directors, officers, employees, agents or advisers shall be in any way responsible for the contents
hereof, or shall be liable for any loss arising from use of the information contained in this presentation or otherwise arising
in connection therewith. This presentation does not take into consideration the investment objectives, financial situation or
particular needs of any particular investor. It shall not to be construed as a solicitation or an offer or invitation to buy or sell
any securities or related financial instruments. No part of it shall form the basis of or be relied upon in connection with any
contract or commitment whatsoever. This presentation may not be copied or otherwise reproduced.
This presentation does not constitute an offer to sell or the solicitation of an offer to buy any securities in the United States
or any other jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under
the securities laws of any such jurisdiction. No securities may be offered or sold in the United States absent registration or
an applicable exemption from registration requirements. Any public offering of securities to be made in the United States
will be made by means of a prospectus. Such prospectus will contain detailed information about the company making the
offer and its management and financial statements. No public offer of securities is to be made by the Company in the
United States.
Results
Highlights01
% of revenue
• Property mgt • services
1,227.5mn 54.8%
• Community VAS 206.2mn 9.2%
• Extended VAS 807.5mn 36.0%
1H Results Highlights
4
Rapid growth in financial results
Optimized revenue structure
Unleashed potential of community VAS
Balanced scale expansion strategy
Synergetic development of four
business segments
• Revenue 2,241.2mn +59.4%
• Gross profit 829.5mn +62.6%
• Net profit 568.4mn +69.3%
• Profit attributable to shareholders
541.3mn +62.9%
Improved operating efficiency
• Total contracted GFA: 324.6mn sq.m.
• Total GFA under management: 211.2mn sq.m.
• Optimizing the multi-portfolio and whole industry chain
layout, entered into the market of public building property
services through the acquisition of Guangzhou Yuehua
• Achieved synergetic development of four business
segments, namely property management services,
community commercial services, asset management
services and public services
• Through the professional operation of the community
commercial segment, the Group deeply explored the
potential of community business, improved the utilization
rate of resources and launched new products
• Revenue of
community VAS206.2mn +157.9%
• Gross profit margin
of community VAS51.4% +4.5p.p.
Note: For the six months ended 30 June 2019 (unit: RMB)
• Further optimized the operation structure and
implemented regionalized management
• The proportion of administrative expenses to
revenue decreased by 2.1 percentage points to
5.6%
• Stably undertook the GFA from Agile Group and
Greenland Holdings, as well as actively obtained
projects from third-party property developers and
M&A to achieve stable and continuous growth in
business scale
Financial
Summary02
RMB’ 000 1H2019 % of revenue 1H2018 % of revenue Change (%)
Revenue 2,241,228 1,405,693 +59.4%
Cost of sales (1,411,776) (63.0%) (895,345) (63.7%) +57.7%
Gross profit 829,452 510,348 +62.6%
Gross profit margin 37.0% 36.3% +0.7p.p
Selling and
marketing costs (18,173) (0.8%) (15,702) (1.1%) +15.9%
Administrative
expenses (124,737) (5.6%) (108,259) (7.7%) +15.1%
Net profit for the
Period 568,391 335,771 +69.3%
Net profit margin 25.4% 23.9% +1.5p.p
Profit attributable to
the shareholders of
the Company541,314 332,332 +62.9%
Earnings per share
(RMB) 0.41 0.26 +57.7%
Financial Highlights
6
53.4%
21.1%
19.8%
5.7%
Property Mgt Services
Sales Center Property Mgt Services
Other Extended VAS
Community VAS
750
575
80
1,227
808
206
0
400
800
1,200
1,600
Property Mgt Services Extended VAS Community VAS
1H2018 1H2019
379a
297a218 255
37
326 398
106
29.0%
44.3%46.9%
26.6%
49.2%51.4%
0
500
1,000
1,500
Property Mgt Services Extended VAS Community VAS
Gross profitmargin in1H2018
Gross profitmargin in1H 2019
Detailed Figures of Three Business Lines
Revenue and Growth Rate (by Business Lines)
(RMB million)(RMB million)
7
aSales Center Property Mgt ServicesbOther Extended VAS
428b
Optimized Revenue Structure
1H2018 1H2019
54.8%
16.9%
19.1%
9.2%
279b
Gross Profit and Gross Profit Margin(by Business Lines)
RMB’ 000 As of 30 Jun 2019 As of 31 Dec 2018 Change (%)
Total assets 8,689,628 7,296,549 +19.1%
Total liabilities 2,916,945 1,786,512 +63.3%
Goodwill 1,361,906 1,045,362 +30.3%
Trade and other
receivables1,808,165 1,164,913 +55.2%
Trade and other
payables1,860,062 1,168,900 +59.1%
Operating cash flow 537,028* 207,094* +159.3%
Cash and cash
equivalents4,588,186# 4,807,993 (4.6%)
Other Financial Figures
8
*For the six months ended 30 June
#Including cash invested in wealth management products
Business Review03
229.8
137.4
70.4
22.0
324.6
217.3
73.2
34.1
0
40
80
120
160
200
240
280
320
360
31/12/2018 30/6/2019
138.1
85.2
48.2
4.7
211.2
152.9
50.5
7.8
0
40
80
120
160
200
240
31/12/2018 30/6/2019
58.7% 41.3%
Residential building
Non-residential building
By Portfolio
37.9%
18.7%
12.8%
6.1%
4.4%
20.1%
Greater Bay Area
Yangtze RiverDelta city cluster
Lanzhou-Xiningcity cluster
Harbin-Changchuncity cluster
ShandongPeninsula
Others
By Geographic Coverage
Third-party
(Incl. M&A)Agile GreenlandTotal GFA Under Mgt
10
(72.4%)(23.9%) (3.7%)
(61.7%)(34.9%) (3.4%)(% of GFA)
Agile GreenlandTotal Contracted GFA
(22.6%) (10.5%)(30.6%) (9.6%)(% of contracted GFA)
Third-party
(Incl. M&A)(66.9%)(59.8%)
1H19
M&A
63.6
1H19
M&A
64.7
Property management services recorded a revenue of RMB1,227.5 million, up 63.6% year on year, accounting for
54.8% of the total revenue, with a gross profit margin of 26.6%, decreased 2.4p.p. year on year
Property Management Services – Scale Expansion
GFA Under Management (million sq.m.) Contracted GFA (million sq.m.)
Breakdown of GFA Under Management
Gate of Hangzhou
A landmark for Hangzhou
2022 Asian Games
A Super high-rise commercial
and office building
Property Management Services – Balanced Growth
• As of 30 Jun 2019, the total contracted GFA from Agile Group amounted to 73.2million sq.m.
• The newly added contracted GFA amounted to 2.8 million sq.m. during the Period.
11
Agile Property
Management
Greenland Property
Services
• The newly increased contracted GFA from third-party expansion was 15.0 million sq.m.
during the Period.
• Deepened strategic cooperation-Joined hands with well-known property developers to
lay a solid foundation for undertaking high-quality projects.
• Explored diversified expansion mode-Proceeded the joint venture cooperation and
diversified the expansion mode by leveraging third-party’s market resources and
cooperation with the government.
• Enhancement in both quantity and quality -The management fee increased significantly
year on year for the newly obtained projects.
• Integrated market resources-Actively obtained projects from third-party developers
through region companies and enhance the market expansion capacity of the acquired
companies to explore the newly entered market.
• Improved marketing system-Improved the corresponding management system in all
aspects to facilitate sustainable development of Group’s expansion.
• As of 30 Jun 2019, the contracted GFA from Greenland Holdings reached
34.1 million sq.m.
• The newly added contracted GFA amounted to 12.1 million sq.m. during the
Period, exceeding the sum of annual committed and priority GFA in the strategic
agreement.
Stable contribution from shareholders
Northeast
City Cluster
Greater Bay Area
Yangtze River
Delta
City Cluster
Lanzhou-Xining
City Cluster
Shandong
Peninsula
Chengdu-Chongqing
City Cluster
Enhancement in both quantity and quality
for third-party expansion
Property Management Services – High-quality M&A
12
Further expanded scale
and geographic coverage
to strengthen its
nationwide presence and
multi-portfolio layout
Focused on
enhancing influence
and competitiveness
in major potential
areas
Entered into new
market by acquiring
regional leading
enterprises
Harbin Jingyang (A market leader in Heilongjiang)
Acquired 60% equity interest at a consideration of
RMB113.9 million
Portfolio: residential, commercial and office buildings
Contracted GFA : 10.52 million sq.m.
Guangzhou Yuehua (One of the Top 100 property
management companies in the PRC)
Acquired 51% equity interest at a consideration of
RMB195.3 million
Portfolio: public buildings
Contracted GFA: 30.00million sq.m.
Nanjing Zizhu
Property Services
A property management
enterprise under a leading
developer in Shenzhen
Corporate governanceGeneral manager accountability system led by the
Board of Directors
Business operationCommunications with departments of
relevant business lines
Core management
team
Established a three-layer
post-acquisition
integration system
Full integration of
financial systems
Acceleration of
informatization of
business
Synergistic
development
Exploration of
community economy
Qingdao Huaren (Listed company on the NEEQ)
Acquired 89.6643% shares at a consideration of RMB133.6
million
Portfolio: public, office and residential buildings
Contracted GFA: 6.30 million sq.m.
Lanzhou Chengguan (One of the Top 100 property
management companies in the PRC)
Acquired 51% equity interest at a consideration of
RMB147.9million
Portfolio: public, office and residential buildings
Contracted GFA : 17.87million sq.m.
Community VAS – Unleashing of Potential
13
Community VAS a generated revenue of RMB206.2million, up 157.9% year on year, accounting for
9.2% of total revenue, with a gross profit margin of 51.4%, up 4.5p.p. year on year
Community asset
management
Community
living
services
Home
improve-
ment
Residents Houses VehiclesPublic
resources
Community
asset
management
Community
living
services
Home
improvement
• Developed 68 product models of public resources to realize
the replication of business
• Developed a total of 32,000 public rental spots
• Implemented informatization and intelligentizarion of
business to fully utilize the newly obtained idle resources
• Smooth progress in the outsourcing of pools. The vacancy
rate of clubhouses decreased to 9%
Serviced
apartment
Clubhouse
operation
Car park
operation
Community
advertisement
Long- and short-
term house rental
Second-hand
houses
Rental
service
• Promoted the home improvement services at the
sales center to reach out to potential customers
• Organized meetings with property owners. The
turnkey furnishing business in Yunnan projects
achieved good performance
Turnkey
furnishing Home
decoration
Home
accessory
Xiaoya
Repairing
Xiaoya
Gardening
Xiaoya
Cleaning
Xiaoya
Agent
Xiaoya Parcel
Pickup
Group
buying
• Devoted to home services and innovatively
developed a business division partnership scheme
• Cooperated with well-known insurance companies to
promote vehicle insurance in communities. Explored
the business of car beauty and car repairing
• Cooperated with famous pet agencies to develop
various pilot pet services
14
Optimized operating process
Enhanced business management
Followed the guidance for various products and
services to realize standardized operation
Established community database and data-model to
assess the operation capability
Launched the distribution system and membership
system to realize the automatic billing
Implemented online centralized procurement
platform to control cost and improve efficiency
Focused on product R&D
Innovated product models
Explored community resources
Optimized its strategic plan for community
Initiated joint activities to create
noise, integrated resources in
different regions and arranged
marketing campaigns accordingly
Organized group buying festivals,
meetings with residents etc. to
enhance the community VAS
Set up rental and sales centers
nationwide gradually to secure
the value of assets
Monitored key steps
Assisted the implementation of new services
Assisted the sales and marketing business in early
stage
Fully utilized the newly obtained clubhouses and idle
venues, and simplified the process of fee collection
Incubated home services division and introduced home
services providers as strategic partners
Vehicle insurance
Car beauty
Broadband services
Customized services
for enterprises
Community travel
Health and elderly
care
Pet caring service
Community education
Short-term rental
apartment
Developed new products and services, and
scheduled to launch progressively in future
Community VAS – Continuous Innovation
15
Extended VAS -
Comprehensive and Full-Cycle Coverage
Extended VAS generated a revenue of RMB807.5 million, up 40.3%year on year, accounting for 36.0%
of the total revenue, with a gross profit margin of 49.2% , up 4.9p.p. year on year
Sales center property
management
Enhance the synergies among
property developers, property
management companies and residents
• Focus on the improvement of
service quality
• Implement inspection in accordance
with the standards
• Develop benchmark projects
Provide integrated sales agency services
to Agile Group and third-party developers
• Product positioning and marketing
consulting
• Property sales agency
Lay the foundation and gain advantages
for undertaking subsequent property
management services
Provide Closed-Loop, Full-Cycle Services to Property Developers
Provide sales center management
services, including
• Concierge and reception
• Security services
• Site maintenance
• Display equipment maintenance
Sales agencyHome inspection and early
stage involvement
16
Property owners-oriented services
Improvement of work efficiency
Simplified
process
Quality-based Branding
Professional
service
Standardized
management
Accurate
Timely
Effective
Accountability system
Improved the awareness of
proactive service
Formulated plans for
improving service quality
Summarized the common
problems
Optimized management standard
Multi-dimensional improvement
Maintained high satisfaction rate of the property
owners and secured the collection rate of
management fee
Laid a solid foundation for increasing management
fee progressively in future
7th of 2019 Top 100 Property Management Companies in the PRC
2019 Blue-chip Property Management Company in the PRC
Top 50 Property Management Companies in terms of Brand Value
Ranking in industry
hit a record high
Optimization of Corporate Structure to Improve Efficiency
17
Realized the sharing of resources, controlled cost and maximized the operating efficiency
Optimization of structure
• Property Management-Optimized the regional offices in
different cities into 7 region companies
• Community Commercial Services-Adjusted the business
lines and manpower
• Property Management Service Center-Built joint service
centers to realize large-scale, professional and intensive
management
Improvement of efficiency
• Adjusted administrative functions to lower level
• Optimized responsibility and accountability system and
simplified approval processes
Refined management
• Material management-Built database and centralized procurement
platform for tenders
• Energy consumption in public area-Monitored the performance of
energy-saving measures on a regular basis and reduced energy
consumption
• Outsourcing cost-Consolidated the tenders in different regions to
select the most ideal method of fee calculation
Talent development
• Rotation of talents-Rotated the core management talents
from mature projects to newly entered areas
• Directional assistance-Service centers offered help and
assistance to staff in need
• Multi-function-Streamlined redundant positions
South
China
Hainan Eastern
China
South-
west
China
Central
China
North
China
North-
west
China
FutureOutlook04
• Government office
buildings
• Schools, hospitals and
other public intuitions
• Infrastructure such as
airports and rail transits
• Cultural facilities such as
libraries, museums and
theatres
Synergetic Development of Four Business Segments
19
Stock code
3319.HK
Integrated services
for public buildings
Integrated services for
high-end commercial and
office buildings
360-degree comprehensive
community VAS
Stock code
3383.HK
Stock code
600606.SH
Integrated services for
residential buildings
• Deeply explore the community
economic ecosphere centered
on the residents, houses,
vehicles and public resources
• Cooperate with strategic
business partners to develop
new services
• Mid-to high-end residential
property includes apartments
and villas
• Vacation property
management
• Develop the brand of Johnson
Asset Management
• Position itself as an expert in
high-end commercial and office
building management
• Consolidate the foothold in
Beijing, Shanghai and
Guangzhou and enter into new
first-tier cities
Cover comprehensive portfolio and entire industry chain
Three Approaches: Quality, Scale and Efficiency
20
Service Quality
Scale Expansion
Operating Efficiency
• 400 Hotline Call Center-Respond to residents’ requests timely and
comprehensively monitor the quality of services
• Adjustment of functions-Adjust the quality control functions to the regional
level to meet property owner’s needs and provide caring services
• Property owners’ satisfaction-Ensure the service quality by adopting
satisfaction surveys carried out by internal department and authoritative third-
party
• Comprehensive-Carry out regular and random quality inspection to ensure
timely rectification
• Expand the sources of income-Continuously improve profitability based on
synergetic development of four major business segments
• Control the operating expenses-Operating expense is projected to
decrease effectively by reducing costs and improving efficiency, optimizing
structure and implementing strategies of standardized services
• Balanced development-Continuously obtain projects from two major
shareholders, M&A and third-party expansion, and actively participate in the
mixed-ownership reform of state-owned enterprises
• Endogenous growth-Focus on the improvement of endogenous growth in
the future to achieve high-speed and sustainable development
Efficiency
Scale
Quality
Lead the Development of Industry with Talents, Technology and Mechanism
21
Talents
Technology Mechanism
Supported by technology
Informatized businesses
Mobilized services
Automated operation
Intelligent application
Talent development
Upgrade the management
system
Focus on managing the talent
pool
Promote efficiency
enhancement
Operation mechanism
Simple
Flexible
Efficient
Build as a benchmark of the industry
Lead the future development
Lifelong Caring
A-LIVING SERVICES CO., LTD