Company Overview - As of June 30, 2021, S-Enjoy Service Group has signed property management service agreements covering 156 cities across 31 provinces, with a total contracted gross floor area (GFA) of 250.1 million square meters[8]. - The total GFA under management is 122.4 million square meters, covering 113 cities[9]. - The company has improved its ranking among the top 100 Chinese property management services enterprises from 34th in 2010 to 11th in 2020[8]. - S-Enjoy Service Group has been providing property management services in China for over 25 years, establishing a strong market reputation[9]. - The company emphasizes quality and customer orientation in its property services brand[9]. Revenue and Profitability - Revenue is primarily derived from two business lines: property management services and value-added services, with the majority coming from property management services[10]. - Revenue for the six months ended June 30, 2021, was RMB 1,876,950,000, representing a 53.6% annual growth[18]. - Gross profit for the same period was RMB 574,649,000, with a gross margin of 30.6%[18]. - Net profit attributable to equity shareholders for the six months ended June 30, 2021, was RMB 286,417,000, reflecting a 51.6% annual growth[18]. - The company achieved a net profit margin of 16.2% for the six months ended June 30, 2021[18]. - The overall revenue for the first half of 2021 indicates a strong recovery and growth trajectory post-pandemic[18]. Business Segments - The value-added services include three categories: developer-related, community-related, and smart community services[12]. - Revenue from property management services for the six months ended June 30, 2021, was RMB 919,700,000, with a 73.6% annual growth[19]. - Revenue from value-added services for the same period was RMB 957,250,000, showing a 38.4% annual growth[19]. - Revenue from developer-related value-added services was RMB 390,728,000, with a 31.0% annual growth[19]. - Revenue from community-related value-added services reached RMB 292,909,000, reflecting a 58.2% annual growth[19]. - Revenue from smart community services for the six months ended June 30, 2021, was RMB 273,613,000, with a 31.3% annual growth[19]. Financial Position - Total assets as of June 30, 2021, amounted to RMB 4,882,670,000, a significant increase from RMB 2,570,108,000 as of June 30, 2020[22]. - Cash and cash equivalents increased to RMB 2,642,693,000 for the six months ended June 30, 2021, compared to RMB 1,269,384,000 in the same period of 2020[22]. - The liquidity ratio as of June 30, 2021, was 183.4%, indicating a strong financial position compared to 156.7% in the same period of 2020[22]. - The company reported a significant increase in trade receivables, which rose to RMB 820,848,000 as of June 30, 2021, compared to RMB 407,903,000 in the same period of 2020[22]. Growth and Expansion - The company continues to focus on expanding its market presence and enhancing service offerings through innovative solutions[12]. - The Group added approximately 23.4 million square meters of third-party contracted area in the first half of 2021, nearly doubling the amount from the same period in 2020[32]. - The Group entered the hospital property management sector through the acquisition of Zhejiang Liangshi Property Service Co., Ltd., marking its first entry into a high-barrier industry[32]. - The Group completed the mergers and acquisitions of three property management enterprises in the first half of the year, enhancing service capabilities in non-residential segments[50]. Shareholder and Corporate Governance - The chairman and CEO roles are held by the same individual, which the board believes provides strong and consistent leadership[84]. - The company does not recommend the payment of any interim dividend for the six months ended June 30, 2021[82]. - The audit committee has reviewed the unaudited condensed interim results of the group for the six months ended June 30, 2021[86]. - The company has adopted the Model Code for Securities Transactions by Directors and confirmed compliance during the reporting period[83]. Employee and Operational Insights - The Group had a total of 15,233 full-time employees, with total employee benefit expenses for the six months ended June 30, 2021, amounting to approximately RMB 625.6 million[67]. - Administrative expenses were approximately RMB 169.7 million, an increase of approximately 57.4% from RMB 107.8 million in 2020, mainly due to rapid growth of the Group's scale and increased equity incentives granted to employees[64]. Taxation and Financial Management - The average applicable income tax rate for the group is 20%, with a preferential tax rate of 15% for its head office in Tibet until 2030 and for the newly acquired subsidiary Chengdu Chengyue Times[175]. - The corporate income tax rate applicable to entities located in Mainland China outside Tibet and Chengdu is 25% according to the PRC Corporate Income Tax Law[175]. - The company has made a provision for PRC withholding tax at a rate of 10% on an estimated 30% of earnings generated by its PRC entities, indicating a strategic approach to tax management[178]. Asset Management - The total net book amount of property, plant, and equipment was RMB 36,204,000, an increase from RMB 14,209,000 as of January 1, 2021[183]. - The company acquired a subsidiary during the six months ended June 30, 2021, resulting in an addition of RMB 405,000 to the net book amount[183]. - The total cash outflow for leases in the six months ended June 30, 2021, was RMB 3,885,000[197]. Investment and Financing Activities - The company completed a placing of 50,000,000 new ordinary shares at a price of HK$20.80 per share, raising approximately HK$1,032 million (equivalent to approximately RMB864.3 million) after costs[95]. - The proceeds from the placing are allocated as follows: 60% for the acquisition of property management companies, 30% for acquiring downstream businesses, and 10% for upgrading IT infrastructure[96]. - The company reported total net proceeds of approximately RMB 538.4 million from its listing after deducting underwriting fees and related expenses[90].
新城悦服务(01755) - 2021 - 中期财报