金融街物业(01502) - 2020 - 年度财报

Company Information This section details the company's fundamental information, including its governance structure, registered office, and key external advisors - The report details the composition of the Board of Directors, Supervisory Committee, and various specialized committees, alongside the company's registered office, principal place of business, auditor, and main bankers[5][8] Core Management and External Advisors | Role | Key Personnel/Institution | | :--- | :--- | | Executive Directors | Mr. Sun Jie (Chairman), Ms. Xue Rui | | Independent Non-Executive Directors | Mr. Song Baocheng, Ms. Tong Yan, Ms. Lu Qing | | Chairman of Supervisory Committee | Mr. Liu Anpeng | | Auditor | PricewaterhouseCoopers | | Stock Code | 1502 | Financial Highlights In 2020, the company achieved robust performance growth with revenue up 13.43%, gross profit up 27.47%, and a significant increase in managed GFA, despite unrealized exchange losses impacting net profit - In 2020, the company achieved robust performance growth with revenue increasing by 13.43% and gross profit by 27.47%, while gross margin improved from 19.20% to 21.58%[9][10] - Managed gross floor area expanded significantly by 24.12%, and cash and cash equivalents doubled, indicating strong cash flow[9][10] - However, annual profit was impacted by approximately RMB 51.48 million in unrealized exchange losses[9][10] Key Performance Indicators for 2020 | Indicator | 2020 | 2019 | YoY Growth | | :--- | :--- | :--- | :--- | | Revenue | Approx. 1.131 billion yuan | Approx. 0.997 billion yuan | +13.43% | | Gross Profit | Approx. 0.244 billion yuan | Approx. 0.191 billion yuan | +27.47% | | Gross Margin | 21.58% | 19.20% | +2.38pp | | Net Profit Attributable to Owners | Approx. 0.104 billion yuan | N/A | N/A | | Cash and Cash Equivalents | Approx. 1.379 billion yuan | Approx. 0.666 billion yuan | +106.98% | | Managed GFA | Approx. 24.70 million sq.m. | Approx. 19.90 million sq.m. | +24.12% | | Proposed Final Dividend | RMB 0.154 per share | - | - | Annual Milestones 2020 marked a pivotal year for the company, highlighted by its successful listing on the HKEX in July, strategic business expansion through joint ventures, and enhanced brand influence via industry accolades - 2020 was a landmark year, with the most significant event being the successful listing on the Hong Kong Stock Exchange in July[16][18][20] - The company actively expanded its business footprint through joint ventures and received multiple industry honors, continuously enhancing its brand influence[16][18][20] - Successful Listing: In July, Financial Street Property H-shares were successfully listed on the Hong Kong Stock Exchange, stock code 1502.HK[14] - Business Expansion: Established a joint venture with Shenzhen World Union Junhui focusing on integrated leasing operation services; formed another joint venture with Chongqing Hongya Property to deepen presence in the Southwest property management market[16][18] - Industry Recognition: In May, ranked 16th among '2020 China Property Service Top 100 Enterprises' by China Index Academy[14] Major Honors and Awards In 2020, the Group received multiple authoritative industry awards, highlighting its leading position and service quality in China's property service sector, especially in office and commercial property management - In 2020, the Group received multiple authoritative industry awards, demonstrating its leading position and service quality in China's property service industry, particularly in office and commercial property management[35][36] Selected Major Awards for 2020 | Award Name | Awarding Body | | :--- | :--- | | 2020 China Property Service Top 100 Enterprises | China Index Academy | | 2020 China Excellent Office Property Management Enterprise | China Index Academy | | 2020 China Property Service Top 100 Service Quality Leading Enterprise | China Index Academy | | 2020 Office Building Property Service Leading Enterprise | China Property Management Institute, E-House China R&D Institute China Real Estate Appraisal Center | Chairman's Statement Chairman Mr. Sun Jie reviewed 2020, highlighting the company's successful listing and robust growth amidst the pandemic, driven by business expansion, diversified value-added services, and increased investment in technology - Chairman Mr. Sun Jie's statement reviewed 2020, emphasizing the company's successful listing and robust growth despite COVID-19 challenges[43][44][46] - He noted significant improvements in business scale, operating revenue, and brand influence, with steady expansion through both organic and inorganic strategies, alongside active development of diversified value-added services and increased investment in technology property[43][44][46] - 2021 Outlook and Strategy: - Business Expansion: Continuously expand business footprint and market share through new partnerships and M&A collaborations[51] - Value-Added Services: Enrich the operating portfolio, continue developing the 'IZEE' brand series, and explore diversified development models[52] - Technology Application: Advance the construction of a central monitoring data platform, leveraging technology to enhance efficiency and customer experience[53] - Corporate Governance: Strengthen the listed company's scientific management system to ensure compliant operations and deliver better returns to investors[51][52][53] Management Discussion and Analysis Business Review In 2020, the Group's business expanded significantly, with total managed GFA growing by 24.12% to 24.72 million sq.m., covering 13 provinces and cities, and actively expanding independent third-party projects and strategic joint ventures Changes in Managed Area and Project Count | Indicator | As of Dec 31, 2020 | As of Dec 31, 2019 | Growth Rate | | :--- | :--- | :--- | :--- | | Contracted GFA (thousand sq.m.) | 28,104 | 21,369 | +31.5% | | Managed GFA (thousand sq.m.) | 24,719 | 19,857 | +24.5% | | Number of Managed Properties | 173 | 144 | +20.1% | Managed Area by Property Developer (thousand sq.m.) | Developer Type | 2020 | 2019 | Growth Rate | | :--- | :--- | :--- | :--- | | Financial Street Affiliated Group | 16,507 | 13,189 | +25.2% | | Independent Third-Party | 8,212 | 6,668 | +23.2% | - Joint Venture Establishment: Formed Financial Street World Union with Shenzhen World Union Junhui for integrated leasing operations; established Financial Street Hongya with Chongqing Hongya Property to deepen market penetration in the Chengdu-Chongqing urban cluster[57][59] - Newly Acquired Representative Projects: Secured projects like Shanghai Shangpu Ling Shi F1D, Shanghai Jifu Building, and Beijing New Power Financial Technology Center, strengthening its market position in high-end commercial properties in core cities[60] Financial Review Total revenue grew 13.4% to RMB 1.131 billion in 2020, driven by 40.9% growth in value-added services, with gross profit up 27.5% to RMB 0.244 billion and gross margin improving to 21.6%, despite unrealized exchange losses impacting net profit Revenue Composition (RMB thousand) | Service Type | 2020 | 2019 | Change | | :--- | :--- | :--- | :--- | | Property Management Services | 825,802 | 776,915 | +6.3% | | Value-Added Services | 276,587 | 196,336 | +40.9% | | Leasing Services | 6,768 | 5,948 | +13.8% | | Catering Services | 21,722 | 17,815 | +21.9% | | Total | 1,130,879 | 997,014 | +13.4% | Gross Profit and Gross Margin | Service Type | 2020 Gross Profit (thousand yuan) | 2020 Gross Margin | 2019 Gross Profit (thousand yuan) | 2019 Gross Margin | | :--- | :--- | :--- | :--- | :--- | | Property Management and Related Services | 245,724 | 22.2% | 194,310 | 19.8% | | Catering Services | (1,707) | (7.9%) | (2,881) | (16.2%) | | Total | 244,017 | 21.6% | 191,429 | 19.2% | - Profit for the Year Impact: Net profit attributable to owners was approximately RMB 0.104 billion, after accounting for approximately RMB 51.48 million in unrealized exchange losses, primarily from Hong Kong dollar proceeds raised during the IPO due to RMB appreciation[91][93] - Liquidity: Net current assets increased by 86.85% year-on-year to RMB 1.631 billion, mainly due to IPO proceeds, with no borrowings or bank loans as of year-end 2020[94] Use of Proceeds from Listing The company listed in July 2020, raising approximately RMB 0.648 billion net proceeds, with RMB 5.56 million utilized by year-end for value-added services and technology upgrades, while the majority remains unutilized for strategic acquisitions and business expansion Analysis of Net Proceeds from Listing (As of December 31, 2020) | Purpose | Planned Amount (million yuan) | Utilized Amount (million yuan) | Unutilized Amount (million yuan) | | :--- | :--- | :--- | :--- | | Strategic Acquisitions and Investments | 389.02 | 0.15 | 388.87 | | Development of Value-Added Services | 129.66 | 4.45 | 125.21 | | Smart Technology Upgrades | 64.84 | 0.96 | 63.88 | | Working Capital and General Corporate Purposes | 64.84 | 0 | 64.84 | | Total | 648.36 | 5.56 | 642.80 | Biographies of Directors, Supervisors and Senior Management This section provides detailed biographies of the company's directors, supervisors, and senior management, including their positions, responsibilities, and extensive experience in property, hotel, finance, and accounting - This section details the personal biographies of the company's directors, supervisors, and senior management, including their age, positions, key responsibilities, and extensive experience in areas such as property management, hotel management, finance, and accounting[109][127][131] Corporate Governance Report Corporate Governance Practices and Board of Directors The company adheres to high corporate governance standards, adopting HKEX's Code, with compliance except for the Chairman and General Manager roles held by one person, and a nine-member board including three independent non-executive directors, aligning with listing rules and diversity policy - Code Deviation: A deviation exists where the Chairman and General Manager roles are held by Mr. Sun Jie concurrently; the Board believes this enhances decision-making efficiency and will review the arrangement periodically[143] - Board Composition: The Board comprises 2 executive directors, 4 non-executive directors, and 3 independent non-executive directors, meeting listing rule requirements for independent director numbers and proportion[144] - Board Meetings: As of year-end 2020, 10 Board meetings were held with good attendance by directors[158] Board Committees The company has established Audit, Remuneration, and Nomination Committees to assist the Board, overseeing financial reporting, internal controls, executive compensation, and board structure, with their compositions and meeting frequencies disclosed - Audit Committee: Composed of three members, chaired by Independent Non-Executive Director Ms. Tong Yan, held 1 meeting during the reporting period[173] - Remuneration Committee: Composed of three members, chaired by Independent Non-Executive Director Ms. Lu Qing, held 2 meetings during the reporting period[176] - Nomination Committee: Composed of three members, chaired by Executive Director Mr. Sun Jie, held no meetings during the reporting period[179] Risk Management and Internal Control Systems The Board is continuously responsible for and annually reviews the Group's risk management and internal control systems, covering all major operations, and deemed them effective and adequate as of year-end 2020 - The Board, through the Audit Committee, conducted an annual review of the risk management and internal control systems, covering financial, operational, and compliance controls, and deemed them effective and adequate[182][184] Directors' Report Dividends and Share Capital The Board proposed a final dividend of RMB 0.154 per share (pre-tax) for 2020, representing a payout ratio of approximately 55.075%, with share capital significantly increasing due to the issuance of 103.5 million H-shares from IPO and overallotment option exercise - The Board proposed a final dividend of RMB 0.154 per share (pre-tax) for 2020, with a payout ratio of approximately 55.075%, subject to shareholder approval[210] - The company's share capital changed due to its listing, with 90,000,000 H-shares issued on July 6, 2020, and 13,500,000 H-shares on July 29, 2020[219] Major Shareholders This section details the major shareholders as of December 31, 2020, including the controlling shareholder Beijing Huarong Comprehensive Investment Co., Ltd. and its associates, along with other significant shareholders like China Life Real Estate Investment Management Co., Ltd. affiliates Major Shareholder Holdings (As of December 31, 2020) | Shareholder Name | Share Class | Number of Shares Held (L) | Percentage of Total Share Capital (%) | | :--- | :--- | :--- | :--- | | Beijing Huarong Comprehensive Investment Co., Ltd. | Domestic Shares | 128,299,270 | 34.35% | | Beijing Tiantai Property Co., Ltd. | Domestic Shares | 79,620,438 | 21.32% | | Beijing Rongxin Hetai Enterprise Management Co., Ltd. | Domestic Shares | 62,080,292 | 16.62% | Continuing Connected Transactions The Group engages in continuing connected transactions with its controlling shareholder, Financial Street Group, and its associates, primarily involving property leasing, property management services, and deposits with Financial Street Finance, all reviewed for commercial terms and fairness Key Continuing Connected Transactions Performance for 2020 (RMB) | Transaction Type | Counterparty | 2020 Actual Amount | 2020 Annual Cap | | :--- | :--- | :--- | :--- | | Leasing Properties | Financial Street Group and its Associates | 8,334,000 yuan | 30,000,000 yuan | | Provision of Property Management Services | Financial Street Group and its Associates | 201,758,000 yuan | 210,000,000 yuan | | Deposit Services | Financial Street Finance | Maximum daily balance of 0.376 billion yuan | 1 billion yuan | Supervisory Committee Report The Supervisory Committee's report confirms effective oversight of the company's operations, financial status, and the performance of directors and senior management in 2020, finding compliant operations and reliable financial reporting - The Supervisory Committee's report indicates effective oversight of the company's operations, financial status, and the performance of directors and senior management during the reporting period, in accordance with relevant regulations and the Articles of Association[297] - The Supervisory Committee found the company's operations to be compliant, financial reports true and reliable, with no instances of abuse of power or harm to shareholder interests by directors or senior management, expressing satisfaction with the company's 2020 operating results[300] Independent Auditor's Report PricewaterhouseCoopers issued an unqualified opinion on the Group's 2020 consolidated financial statements, affirming their fair presentation and compliance with accounting standards - Auditor PricewaterhouseCoopers issued an unqualified opinion on the Group's 2020 consolidated financial statements, affirming they present a true and fair view of the Group's financial position and operating results, prepared in accordance with relevant accounting standards and regulations[305] - Key Audit Matter: The sole key audit matter identified by the auditor was expected credit losses on trade receivables[311] - Given the significant management judgment and estimation involved in assessing expected credit losses, the auditor performed focused procedures, including understanding internal controls, evaluating the effectiveness of the estimation process, testing key controls, and assessing the appropriateness of management's judgments, concluding that management's judgments were adequately supported[312][313] Financial Statements Consolidated Statement of Comprehensive Income In 2020, revenue reached RMB 1.131 billion (+13.4%), gross profit RMB 0.244 billion (+27.5%), and operating profit RMB 0.199 billion (+43.2%), though profit before tax saw a modest 3.1% increase to RMB 0.157 billion due to exchange losses, with profit for the year at RMB 0.116 billion Consolidated Statement of Comprehensive Income Summary (RMB thousand) | Item | 2020 | 2019 | | :--- | :--- | :--- | | Revenue | 1,130,879 | 997,014 | | Gross Profit | 244,017 | 191,429 | | Operating Profit | 199,469 | 139,275 | | Profit Before Income Tax | 156,577 | 151,875 | | Profit for the Year | 115,681 | 113,410 | | Profit Attributable to Owners of the Company | 104,438 | 105,217 | | Basic Earnings Per Share (RMB yuan) | 0.327 | 0.390 | Consolidated Statement of Financial Position As of year-end 2020, total assets surged 76.0% to RMB 1.725 billion, primarily from IPO proceeds, while total liabilities were RMB 0.643 billion, reducing the debt-to-asset ratio from 59% to 37%, and total equity increased to RMB 1.082 billion, significantly optimizing the financial structure Consolidated Statement of Financial Position Summary (RMB thousand) | Item | As of Dec 31, 2020 | As of Dec 31, 2019 | | :--- | :--- | :--- | | Non-current Assets | 93,447 | 107,123 | | Current Assets | 1,631,360 | 873,088 | | Total Assets | 1,724,807 | 980,211 | | Current Liabilities | 607,815 | 536,914 | | Non-current Liabilities | 34,726 | 43,412 | | Total Liabilities | 642,541 | 580,326 | | Total Equity | 1,082,266 | 399,885 | Consolidated Statement of Cash Flows In 2020, net cash from operating activities increased 29.6% to RMB 0.190 billion, with net cash from investing activities at RMB 21.47 million, and significant net cash from financing activities of RMB 0.553 billion due to IPO, resulting in a year-end cash and cash equivalents balance of RMB 1.379 billion Consolidated Statement of Cash Flows Summary (RMB thousand) | Item | 2020 | 2019 | | :--- | :--- | :--- | | Net Cash from Operating Activities | 189,664 | 146,350 | | Net Cash from Investing Activities | 21,471 | 94,950 | | Net Cash from Financing Activities | 552,965 | 31,071 | | Net Increase in Cash and Cash Equivalents | 764,100 | 272,371 | | Effect of Exchange Rate Changes | (51,477) | 8 | | Cash and Cash Equivalents at End of Year | 1,378,746 | 666,123 | Four-Year Financial Summary The four-year financial summary reveals consistent growth from 2017 to 2020, with revenue and total assets steadily expanding, and a significant surge in total assets and total equity post-2020 listing - The four-year financial summary indicates a continuous growth trend for the company from 2017 to 2020[658][659] - Revenue and total asset scale steadily expanded, with a significant leap in total assets and total equity after the 2020 listing[658][659] Four-Year Key Financial Indicators Trend (RMB thousand) | Indicator | 2017 | 2018 | 2019 | 2020 | | :--- | :--- | :--- | :--- | :--- | | Revenue | 756,682 | 875,199 | 997,014 | 1,130,879 | | Profit for the Year | 82,655 | 91,536 | 113,410 | 115,681 | | Total Assets | 727,707 | 754,376 | 980,211 | 1,724,807 | | Total Equity | 242,644 | 233,781 | 399,885 | 1,082,266 |