金科服务(09666) - 2020 - 年度财报

Financial Highlights This section provides a concise overview of the company's strong financial performance in the reporting period Financial Highlights Summary In 2020, the company achieved robust financial growth with total revenue increasing by 44.3% to RMB 3.36 billion, gross profit by 56.9% to RMB 997 million, and gross margin improving to 29.7%, while profit attributable to owners surged by 68.5% to RMB 618 million, with total assets doubling to RMB 8.55 billion and cash and cash equivalents soaring to RMB 6.84 billion, primarily due to the H-share listing in November 2020 Comprehensive Income Statement Summary (For the year ended December 31) | Indicator | 2020 | 2019 | YoY Change | | :--- | :--- | :--- | :--- | | Revenue (RMB million) | 3,358.9 | 2,327.7 | +44.3% | | Gross Profit (RMB million) | 997.4 | 635.7 | +56.9% | | Gross Margin | 29.7% | 27.3% | +2.4pp | | Profit for the Year (RMB million) | 633.2 | 374.4 | +69.1% | | Profit Attributable to Owners of the Company (RMB million) | 617.6 | 366.5 | +68.5% | | Basic Earnings Per Share (RMB) | 1.24 | 0.8 | +55.0% | Comprehensive Balance Sheet Summary (As of December 31) | Indicator | 2020 | 2019 | YoY Change | | :--- | :--- | :--- | :--- | | Total Assets (RMB million) | 8,552.2 | 4,093.9 | +108.9% | | Cash and Cash Equivalents (RMB million) | 6,840.3 | 333.1 | +1953.5% | | Total Equity (RMB million) | 7,252.5 | 505.0 | +1336.1% | Chairman's Statement Chairman Mr. Xia Shaofei outlines the company's strategic vision and growth targets for the coming years Chairman's Statement Summary Chairman Mr. Xia Shaofei's statement establishes the first year of the company's "New Five Years, New Tenfold Growth" target, emphasizing the deepening of "Service + Technology, Service + Ecosystem" development strategies by strengthening the "Ecosystem + Technology" dual engines, iterating three major business segments—space services, life services, and technology services—and actively planning for health and cultural tourism businesses, aiming to transform the company from community services to societal services and become a world-class smart service provider, with a goal of 80% annual profit growth through enhanced external expansion, prudent M&A, focus on core value-added service tracks, and accelerated digital transformation - The company proposes a "New Five Years, New Tenfold Growth" plan, with 2021 as the inaugural year targeting 80% annual profit growth[40][44] - The core strategy involves deepening "Service + Technology, Service + Ecosystem," strengthening the "Ecosystem + Technology" dual engines, and iterating three major business segments: urban space services, beautiful life services, and smart technology services[40] - For urban space services, the company will increase expansion into non-residential formats such as commercial offices, schools, and hospitals, and extend into urban services[41] - For beautiful life services, the focus will be on advantageous businesses like travel and accommodation, family life, and home renovation, while exploring spiritual services such as culture, sports, and health[42] - For smart technology services, the company will accelerate digital transformation, promote robot applications (e.g., cleaning, patrolling), and export its technological and digital service capabilities[43] Management Discussion and Analysis This section provides an in-depth review of the company's operational performance, market conditions, and future strategies Market and Business Review In 2020, despite COVID-19 challenges, the company successfully listed on the Hong Kong Stock Exchange, leveraging the property management industry's value re-shaping and capital market recognition, achieving high-speed growth with revenue and net profit increasing by 44.3% and 69.1% respectively, while steadily expanding GFA under management and contracted GFA, with a significant proportion of independent third-party projects, maintaining a quality-first strategy with customer satisfaction exceeding 90% for nine consecutive years and enhancing community value through the "Ten Years as New Plan," optimizing project portfolios, vigorously expanding non-residential formats and urban services, and deepening presence in core regions, with significant achievements in value-added services and technology empowerment, laying a solid foundation for future development 2020 Key Performance Indicators | Indicator | 2020 | YoY Growth | | :--- | :--- | :--- | | Revenue | RMB 3.36 billion | 44.3% | | Gross Profit | RMB 997 million | 56.9% | | Net Profit | RMB 633 million | 69.1% | | Net Profit Attributable to Owners | RMB 618 million | 68.5% | | GFA Under Management | 156 million sqm | - | | Contracted GFA | 277 million sqm | - | - The company's profitability continues to improve, with gross margin reaching 29.7% (+2.4 percentage points) and net margin reaching 18.9% (+2.8 percentage points), primarily due to technology empowerment and cost reduction and efficiency improvement[46] - In business expansion, independent third-party projects account for 48.6% of GFA under management and 56.3% of contracted GFA, demonstrating strong market-oriented expansion capabilities[45] - The company emphasizes service quality, with customer satisfaction exceeding 90% for nine consecutive years and property fee collection rates remaining at a high of 90%[46][48] - Technology empowerment has yielded significant results, with the Tianqi Cloud City smart system upgraded to version 4.0, and the company holding 16 national intellectual property patents and 19 software copyrights[49] Future Outlook Looking ahead, the company will deepen its "Service + Technology, Service + Ecosystem" strategy, focusing on life, technology, and space business segments, planning to achieve simultaneous growth in scale and profitability by improving governance, optimizing talent incentive mechanisms (e.g., partnership schemes), strengthening market-oriented expansion and prudent M&A to address increasing market competition, while continuing to expand into non-residential formats like commercial offices, schools, and hospitals, extending into urban services, accelerating digital transformation and promoting robot applications in technology, and exporting smart solutions, and vigorously developing community group buying, tourism, and asset management businesses around the community ecosystem in life services, exploring cultural, sports, and health consumption, aiming to become a first-class beautiful life service provider - Talent and Incentives: The company will implement a partnership mechanism based on existing employee stock ownership plans, and carry out departmental reforms for value-added service segments[51] - Urban Space Services: Scale growth will be achieved through bidding, strategic cooperation, and prudent M&A, with a focus on expanding non-residential formats and urban services[51] - Smart Technology Services: The company will continue to upgrade smart systems, accelerate the implementation of robot applications, and export full-lifecycle smart solutions to small and medium-sized property management companies in the industry[52] - Beautiful Life Services: The company will vigorously develop businesses such as community group buying, tourism, asset management, and growth education, and actively explore cultural, sports, and health-related consumption, extending its services from communities to society[53] Financial Review In 2020, the company's total revenue increased by 44.3% to RMB 3.36 billion, driven by comprehensive growth across four major business segments, with property management services, non-owner value-added services, community value-added services, and smart technology services revenues growing by 38.1%, 46.9%, 72.3%, and 77.3% respectively, while gross profit increased by 56.9% to RMB 997 million, and overall gross margin improved from 27.3% to 29.7%, with a healthy financial position, ample cash after IPO, no borrowings at year-end, and a capital gearing ratio reduced to zero Revenue Analysis Total revenue reached RMB 3.36 billion in 2020, a 44.3% year-on-year increase, primarily driven by the synergistic efforts of four business lines: 1) Property Management Services (revenue RMB 2.02 billion, +38.1%), benefiting from an increase in GFA under management from 121 million sqm to 156 million sqm; 2) Non-owner Value-added Services (revenue RMB 876 million, +46.9%), mainly driven by increased sales venue services; 3) Community Value-added Services (revenue RMB 411 million, +72.3%), benefiting from business scale expansion and service diversification; 4) Smart Technology Services (revenue RMB 48 million, +77.3%), due to increased output of smart solutions, with property management services remaining the primary revenue source, accounting for 60.3% Total Revenue by Business Line | Business Line | 2020 Revenue (RMB thousand) | Share (%) | 2019 Revenue (RMB thousand) | Share (%) | YoY Growth | | :--- | :--- | :--- | :--- | :--- | :--- | | Property Management Services | 2,024,034 | 60.3 | 1,465,792 | 62.9 | +38.1% | | Non-owner Value-added Services | 876,082 | 26.1 | 596,391 | 25.6 | +46.9% | | Community Value-added Services | 411,100 | 12.2 | 238,603 | 10.3 | +72.3% | | Smart Technology Services | 47,728 | 1.4 | 26,871 | 1.2 | +77.3% | | Total | 3,358,944 | 100.0 | 2,327,657 | 100.0 | +44.3% | - GFA under management increased by 29.6% from 120.5 million sqm at the end of 2019 to 156.2 million sqm at the end of 2020, which was the primary driver for the growth in property management service revenue[55] - Non-residential property management area significantly increased, with the number of projects growing from 132 to 215, optimizing the structure of property management revenue[60] - Among community value-added services, family life services (including community group buying) experienced the most rapid growth, with revenue increasing from RMB 81.64 million to RMB 250 million, a year-on-year increase of 206%[68][49] Cost and Gross Profit Analysis In 2020, the Group's gross profit increased by 56.9% to RMB 997 million, with the overall gross margin improving from 27.3% to 29.7%, primarily due to economies of scale and technology empowerment for cost reduction and efficiency improvement, while gross margins varied across business segments: property management services gross margin significantly increased from 21.7% to 26.3% mainly due to an increase in high-margin non-residential projects; smart technology services gross margin increased from 48.3% to 53.6%; non-owner value-added services gross margin slightly increased to 33.4%; and community value-added services gross margin decreased from 46.1% to 35.9%, mainly affected by the increased proportion of lower-margin community group buying business Gross Profit and Gross Margin by Business Line | Business Line | 2020 Gross Profit (RMB thousand) | 2020 Gross Margin (%) | 2019 Gross Profit (RMB thousand) | 2019 Gross Margin (%) | | :--- | :--- | :--- | :--- | :--- | | Property Management Services | 531,397 | 26.3 | 318,765 | 21.7 | | Non-owner Value-added Services | 292,613 | 33.4 | 193,919 | 32.5 | | Community Value-added Services | 147,764 | 35.9 | 110,003 | 46.1 | | Smart Technology Services | 25,580 | 53.6 | 12,991 | 48.3 | | Total | 997,354 | 29.7 | 635,678 | 27.3 | - Cost of sales increased by 39.6% to RMB 2.36 billion, largely consistent with business growth[71] - Property management services gross margin increased by 4.6 percentage points, primarily due to an increase in average property management fees for residential properties and a rise in the number of high-margin non-residential properties[74] - Community value-added services gross margin decreased by 10.2 percentage points, mainly due to the increased proportion of lower-margin community group buying business[74] Other Income Expenses and Tax In 2020, the Group recorded a net other loss of RMB 37.3 million, compared to a net other income of RMB 1.8 million in 2019, primarily due to exchange losses incurred during the year, while administrative expenses remained stable at approximately RMB 238 million, demonstrating effective cost control, and income tax expense increased to RMB 134 million, consistent with the growth in profit before tax, with the effective income tax rate remaining low at 17.5% due to preferential policies in Western China and for high-tech enterprises - Other income decreased by 8.3% from RMB 52.1 million to RMB 47.8 million, mainly due to reduced interest income from loans collected from Jinke Group after the repayment of ABS and ABN agreements[75] - A net other loss of RMB 37.3 million was recorded (2019: net income of RMB 1.8 million), primarily due to net exchange losses[76] - Administrative expenses remained at RMB 238 million, largely consistent with the previous year, reflecting effective cost reduction and efficiency improvement measures[77] - The effective income tax rate was 17.5% (2019: 16.8%), lower than the general tax rate of 25%, mainly benefiting from Western Development and high-tech enterprise tax incentives[78] Key Balance Sheet Items Analysis As of the end of 2020, the company's balance sheet structure underwent significant changes, with trade receivables and bills receivable increasing to RMB 1.06 billion due to business expansion, while prepayments and other receivables substantially decreased from RMB 3.08 billion to RMB 520 million, primarily due to the full repayment of amounts under ABS and ABN agreements, and correspondingly, other payables and accrued expenses also significantly decreased from RMB 1.25 billion to RMB 560 million, mainly due to the settlement of advances from related parties, reflecting the company's optimized financial structure and cleared related-party transactions post-listing - Trade receivables and bills receivable increased from RMB 550 million to RMB 1.06 billion (+91.9%), consistent with the expansion of property management and non-owner value-added services[81] - Prepayments and other receivables significantly decreased by 83.0% from RMB 3.08 billion to RMB 520 million, primarily due to the full repayment of all outstanding amounts under ABS and ABN agreements[83] - Trade payables and bills payable increased from RMB 150 million to RMB 280 million (+82.4%), mainly due to increased expenses payable to suppliers as GFA under management expanded[84] - Other payables and accrued expenses decreased by 55.4% from RMB 1.25 billion to RMB 560 million, primarily due to the gradual settlement of advances payable to related parties[85] Liquidity and Capital Resources As of the end of 2020, the Group's liquidity position was exceptionally strong, with cash and cash equivalents surging from RMB 330 million to RMB 6.84 billion, primarily due to IPO proceeds, and the Group had repaid all bank borrowings, holding no borrowings at year-end compared to RMB 1.83 billion at the end of 2019, thus reducing the capital gearing ratio from 3.62 times to zero, significantly optimizing the financial structure, and all asset pledges were released with the termination of ABS and ABN agreements - Cash and cash equivalents significantly increased from RMB 333.1 million at the end of 2019 to RMB 6.84 billion at the end of 2020[87] Borrowing Situation | Borrowing Item | 2020 (RMB thousand) | 2019 (RMB thousand) | | :--- | :--- | :--- | | Non-current Borrowings | – | 1,145,000 | | Current Borrowings | – | 685,000 | | Total | – | 1,830,000 | - The capital gearing ratio (total interest-bearing bank borrowings / total equity) decreased from 3.62 times at the end of 2019 to zero at the end of 2020[91] - With the termination of ABS and ABN agreements in August 2020, the pledge of the Group's rights to receive property management fees was released, and there were no pledged assets at year-end[92] Use of IPO Proceeds The company raised net proceeds of approximately HKD 6.615 billion from its global offering (including the exercise of over-allotment option) in November and December 2020, with approximately 60% planned for strategic investments and acquisitions, 20% for developing value-added services, 10% for upgrading digital systems, and 10% for general working capital, and as of December 31, 2020, the company had not utilized any of the net IPO proceeds Planned Use of Net IPO Proceeds | Planned Use | Amount (HKD million) | Approximate Percentage | | :--- | :--- | :--- | | Strategic Investments and Acquisition Opportunities | 3,968.94 | 60% | | Upgrading Digital and Smart Management Systems | 661.49 | 10% | | Development of Value-added Services | 1,322.98 | 20% | | General Business Operations and Working Capital | 661.49 | 10% | | Total | 6,614.9 | 100% | - As of December 31, 2020, the company had not utilized any of the net IPO proceeds[95] Employees and Remuneration Policy As of the end of 2020, the Group had 8,758 employees, with annual staff costs of RMB 1.095 billion, and the company's remuneration policy is linked to operating performance, individual performance, and market levels, aiming to attract and retain talent, having implemented two phases of employee stock ownership plans in 2017 and 2020 to incentivize core employees, also providing systematic training programs and internal promotion opportunities, and attracting young talent through the "Star Elite" recruitment program to maintain team vitality - As of December 31, 2020, the Group had 8,758 employees, with annual staff costs of RMB 1.095 billion[98] - The company has adopted two phases of employee stock ownership plans in 2017 and 2020 to retain talent and achieve strategic goals[98] - The company provides systematic training for employees, including induction training for new hires, assigning mentors to fresh graduates, and offering online courses and regular seminars covering quality control, customer relationship management, and other areas[99] Corporate Governance Report This section details the company's commitment to maintaining high standards of corporate governance Corporate Governance Report Summary Since its listing, the company has been committed to maintaining a high level of corporate governance, and during the reporting period, except for the non-separation of the Chairman and CEO roles (both held by Mr. Xia Shaofei), the company complied with all code provisions of the Corporate Governance Code, with the Board believing this arrangement enhances decision-making efficiency, having established audit, remuneration, and nomination committees with clear terms of reference, and a sound risk management and internal control system, whose effectiveness is regularly reviewed by the Board, with the report also outlining shareholder rights, the appointment and training of joint company secretaries, and amendments to the Articles of Association - The company complied with the Corporate Governance Code, with the only deviation being Code Provision A.2.1, where the roles of Chairman and CEO are not separated, both held by Mr. Xia Shaofei, an arrangement the Board believes enhances decision-making efficiency and responsiveness[121] - The Board has three committees: Audit, Remuneration, and Nomination, with Mr. Chen Zhifeng, Chairman of the Audit Committee, possessing appropriate accounting professional qualifications, and Ms. Yuan Lin, an independent non-executive director, and Mr. Xia Shaofei, an executive director, chairing the Remuneration and Nomination Committees respectively[130][131][132] - The Board has adopted a Board Diversity Policy and believes that the current Board is sufficiently diverse in terms of age, professional background (management, finance, legal, etc.), and experience to meet the company's governance and business development needs[134][135] - The Board is responsible for overseeing the company's risk management and internal control systems and reviews their effectiveness at least annually, deeming the risk management and internal control systems effective and adequate as of the end of 2020[139][142][143] Board of Directors' Report This report provides an overview of the company's business, financial position, and compliance matters for the year Board of Directors' Report Summary The Board of Directors' Report outlines the company's principal business, financial position, and compliance matters for the year 2020, proposing a final dividend of RMB 0.5 per share, noting the successful listing during the period, raising net proceeds of approximately HKD 6.615 billion, which remained unutilized by year-end, detailing four non-exempt continuing connected transactions primarily involving cooperation with controlling shareholder Jinke Property and its associates in property management, system supply, and goods trading, confirming compliance with Listing Rules, with independent non-executive directors and auditors reviewing and confirming these transactions, and also covering the fulfillment of the non-competition undertaking by the controlling shareholder, shareholdings of directors and substantial shareholders, and public float compliance - The Board recommends a final dividend of RMB 0.5 per share (pre-tax) for the year ended December 31, 2020, totaling approximately RMB 326 million[156] - The report discloses four non-exempt continuing connected transaction master agreements with controlling shareholder Jinke Property: sales, purchases, system supply and installation, and property management services, with the property management services master agreement having the highest annual cap, constituting a transaction subject to independent shareholders' approval[172][173][175][176] - Independent non-executive directors have reviewed and confirmed that all continuing connected transactions were conducted on normal commercial terms, fair and reasonable, and in the overall interest of shareholders, with auditors also confirming that the transactions did not exceed annual caps and complied with relevant agreements[178][179] - Controlling shareholder Jinke Property has confirmed compliance with the non-competition undertaking, and independent non-executive directors have also reviewed and deemed it compliant[171] - Based on available information, the company maintained the minimum public float requirement (not less than 21.0%) after the Listing Rules exemption[202] Supervisory Board Report This report confirms the company's compliance and the diligent performance of its directors and senior management Supervisory Board Report Summary The Supervisory Board Report confirms that in 2020, the company operated strictly in accordance with laws and regulations, and directors and senior management diligently performed their duties, with no actions found to be detrimental to the company and shareholders' interests, having effectively supervised the company's financial status, major decisions, internal controls, use of proceeds, and connected transactions by attending meetings, believing that the financial report truly and objectively reflects the operating results and financial position, the internal control system is sound and effective, connected transactions are fair and reasonable, and having no objections to the Board's "Internal Control Self-Assessment Report," and looking forward to 2021, the Supervisory Board will continue to fulfill its supervisory duties to safeguard the interests of the company and all shareholders - The Supervisory Board believes the company operated in compliance with laws and regulations, and directors and senior management diligently performed their duties, with no violations or actions detrimental to shareholders' interests found[205][208][209] - The Supervisory Board reviewed the annual financial report and believes it truly and objectively reflects the company's financial position, and the unqualified opinion report issued by the auditing firm is objective and fair[210] - The Supervisory Board confirms that as of the end of 2020, the IPO proceeds remained unutilized, in compliance with regulations[211] - The Supervisory Board believes the company's connected transactions followed appropriate decision-making procedures and were fair and reasonable in pricing[212] - The Supervisory Board has no objections to the company's Internal Control Self-Assessment Report, believing the company's internal control system is sound, reasonable, and effective[213] Independent Auditor's Report This section presents the independent auditor's opinion on the company's consolidated financial statements Independent Auditor's Report Summary PricewaterhouseCoopers issued an unqualified audit opinion on Jinke Smart Services Group's consolidated financial statements for the year ended December 31, 2020, stating that the financial statements truly and fairly present the Group's financial position, performance, and cash flows in accordance with Hong Kong Financial Reporting Standards and are properly prepared in compliance with the disclosure requirements of the Hong Kong Companies Ordinance, with "Impairment assessment of trade receivables" identified as the key audit matter due to its materiality to the financial statements and significant estimation uncertainty involved in the assessment, and the auditors performed relevant procedures and found management's judgments and estimates to be adequately supported - Audit Opinion: PricewaterhouseCoopers issued an unqualified opinion, stating that the financial statements truly and fairly present the Group's financial position and operating results[216] - Key Audit Matter: The only key audit matter identified in this audit was "Impairment assessment of trade receivables"[218] - Reason for Key Audit Matter: This matter was identified due to the materiality of trade receivables balance to the consolidated financial statements (accounting for 62% of total non-cash assets) and the significant estimation uncertainty in the Expected Credit Loss (ECL) assessment[219] - Auditor's Response: The auditors performed procedures including understanding and testing key controls, assessing inherent risks, comparing historical data, evaluating the reasonableness of management's estimates, and testing aging accuracy, concluding that management's judgments and estimates for trade receivables impairment assessment were adequately supported[219][220] Consolidated Financial Statements This section contains the audited core financial statements of the Group for the year ended December 31, 2020 Consolidated Financial Statements Summary This section presents the Group's audited core financial statements for the year ended December 31, 2020, including the consolidated statement of comprehensive income, consolidated statement of financial position, consolidated statement of changes in equity, and consolidated statement of cash flows, which comprehensively reflect the company's operating results, financial position, changes in equity, and cash flows during the reporting period Key Data from Consolidated Statement of Comprehensive Income | Indicator (RMB thousand) | 2020 | 2019 | | :--- | :--- | :--- | | Revenue | 3,358,944 | 2,327,657 | | Gross Profit | 997,354 | 635,678 | | Operating Profit | 760,026 | 449,183 | | Profit and Total Comprehensive Income for the Year | 633,195 | 374,384 | | Profit Attributable to Owners of the Company | 617,594 | 366,452 | Key Data from Consolidated Statement of Financial Position | Indicator (RMB thousand) | December 31, 2020 | December 31, 2019 | | :--- | :--- | :--- | | Total Assets | 8,552,243 | 4,093,893 | | Total Liabilities | 1,299,780 | 3,588,898 | | Total Equity | 7,252,463 | 504,995 | | Of which: Cash and Cash Equivalents | 6,840,339 | 333,149 | | Of which: Borrowings | 0 | 1,830,000 | Key Data from Consolidated Statement of Cash Flows | Indicator (RMB thousand) | 2020 | 2019 | | :--- | :--- | :--- | | Net Cash from Operating Activities | 113,432 | 236,801 | | Net Cash from Investing Activities | 2,230,981 | 490,192 | | Net Cash from Financing Activities | 4,203,080 | (810,147) | | Net Increase in Cash and Cash Equivalents | 6,547,493 | (83,154) | Four-Year Financial Summary This section provides a concise summary of the Group's key financial data over the past four years Four-Year Financial Summary Details This section provides a summary of the Group's key financial data for four consecutive years from 2017 to 2020, clearly demonstrating the company's high-speed growth trajectory in recent years, with revenue, gross profit, and net profit all achieving continuous and significant growth over the four-year period, while asset scale and shareholder equity also expanded significantly, especially after the 2020 listing, the financial structure fundamentally improved, and total liabilities significantly decreased Four-Year Consolidated Statement of Comprehensive Income Summary (RMB thousand) | Indicator | 2020 | 2019 | 2018 | 2017 | | :--- | :--- | :--- | :--- | :--- | | Revenue | 3,358,944 | 2,327,657 | 1,523,886 | 1,047,041 | | Gross Profit | 997,354 | 635,678 | 390,833 | 280,546 | | Profit and Total Comprehensive Income for the Year | 633,195 | 374,384 | 163,926 | 113,692 | | Profit Attributable to Owners of the Company | 617,594 | 366,452 | 161,776 | 113,551 | Four-Year Consolidated Statement of Financial Position Summary (RMB thousand) | Indicator | 2020 | 2019 | 2018 | 2017 | | :--- | :--- | :--- | :--- | :--- | | Total Assets | 8,552,243 | 4,093,893 | 4,125,518 | 2,489,969 | | Total Liabilities | 1,299,780 | 3,588,898 | 3,799,591 | 2,234,922 | | Total Equity | 7,252,463 | 504,995 | 325,927 | 255,047 |