金科服务(09666) - 2021 - 中期财报

Company Information, Awards and Honors Company Information This section provides the company's fundamental details, including board members, committees, headquarters, auditor, legal counsel, bankers, investor relations, website, and stock code - The company's Chairman is Mr. Xia Shaofei[5] - The company's auditor is PricewaterhouseCoopers[6] - The company's stock code on the Hong Kong Stock Exchange is 09666[6] Awards and Honors This section highlights the company's numerous industry accolades in H1 2021, demonstrating its comprehensive strength, service quality, technological application, and market leadership in property services - The company was honored as one of the "2021 China Property Service Top 100 Enterprises Comprehensive Strength TOP10"[9] - The company received the title of "2021 China Property Technology Empowerment Leading Enterprise" for its technology application[9] - The company was recognized as one of the "2021 China Property Service Listed Companies Comprehensive Strength TOP10" for its outstanding capital market performance[10] Chairman's Statement Chairman's Statement Chairman Mr. Xia Shaofei reviewed strong H1 2021 growth amidst a complex environment, reiterating the "Service + Technology, Service + Ecosystem" strategy and outlining progress in urban space, quality life, and smart technology services for high-quality growth and shareholder returns 2021 H1 Key Performance Indicators | Indicator | 2021 H1 | YoY Growth | | :--- | :--- | :--- | | Total Revenue | Approx. RMB 2.586 billion | Approx. 89% | | Of which: Community Value-added Services Revenue | Approx. RMB 652 million | Approx. 419% | | Net Profit | Approx. RMB 542 million | Approx. 79% | | Net Profit attributable to owners | Approx. RMB 530 million | Approx. 80% | - As of June 30, 2021, GFA under management was approximately 187 million sq.m., with independent third parties accounting for approximately 52%; contracted GFA was approximately 315 million sq.m., with independent third parties accounting for approximately 58%[12] - The company firmly implements the "Service + Technology, Service + Ecosystem" strategy, collaboratively building three major business segments: urban space services, quality life services, and smart technology services[13][14] - Future plans include continuously strengthening three core capabilities—new services, new ecosystem, and new technology—and enhancing urban density, deep collaboration, and concentration[14] Management Discussion and Analysis Business Overview The company is a leading, top-ranked integrated smart property service provider in Southwest China, consistently among China's top ten, covering property management, non-owner value-added, community value-added, and smart technology services with a "Service + Technology, Service + Ecosystem" strategy - The company has been ranked among China's Top 10 Property Service Enterprises by CIH for six consecutive years and maintained the largest market share in Southwest China for six consecutive years[15] - In 2021, the company was included in the Hang Seng Composite Index and FTSE Russell Flagship Index constituents, gaining capital market recognition[15] Financial Review This section reviews the company's H1 2021 financial performance, showing an 88.8% revenue increase, 94.0% gross profit growth, and a slight gross margin rise to 32.5%, with detailed analysis of business segments, costs, financial position, and cash flow, reflecting strong growth and robust financial health Revenue Analysis For the six months ended June 30, 2021, the Group's total revenue reached RMB 2.586 billion, a year-on-year increase of 88.8%, primarily driven by all four business segments, with community value-added services revenue soaring by 419.0% 2021 H1 Revenue Composition (by Business Line) | Business Line | 2021 H1 Revenue (RMB thousand) | Proportion (%) | 2020 H1 Revenue (RMB thousand) | Proportion (%) | | :--- | :--- | :--- | :--- | :--- | | Property Management Services | 1,309,579 | 50.6 | 925,381 | 67.6 | | Non-owner Value-added Services | 567,387 | 21.9 | 292,227 | 21.3 | | Community Value-added Services | 651,744 | 25.2 | 125,568 | 9.2 | | Smart Technology Services | 57,030 | 2.3 | 26,428 | 1.9 | | Total | 2,585,740 | 100.0 | 1,369,604 | 100.0 | - Community value-added services revenue significantly increased by 419.0% year-on-year, primarily due to an increase in customer base and expansion of service types[18] Property Management Services Analysis Property management services revenue grew 41.5% to RMB 1.310 billion, with GFA under management increasing 44.0% to 187 million sq.m., and non-residential property revenue rising 59.4% - As of June 30, 2021, GFA under management was approximately 187 million sq.m., a year-on-year increase of 44.0%; contracted GFA was approximately 315 million sq.m.[20] GFA Under Management and Revenue (by Developer Type) | Developer Type | 2021 H1 GFA Under Management (thousand sq.m.) | 2021 H1 Revenue (RMB thousand) | 2020 H1 GFA Under Management (thousand sq.m.) | 2020 H1 Revenue (RMB thousand) | | :--- | :--- | :--- | :--- | :--- | | Jinke Group Projects | 78,936 | 723,343 | 60,481 | 559,021 | | Jinke Group Joint Ventures and Associates Projects | 11,025 | 63,983 | 6,396 | 33,122 | | External Expansion Projects | 96,832 | 522,253 | 62,867 | 333,238 | | Total | 186,793 | 1,309,579 | 129,744 | 925,381 | - Non-residential property GFA under management increased to 34 million sq.m., accounting for 18.2% of total GFA under management[23] Non-owner Value-added Services Analysis Non-owner value-added services revenue increased 94.2% to RMB 567 million, driven by increased sales assistance services and significant growth in consulting and other services, particularly property agency sales Non-owner Value-added Services Revenue Composition | Service Type | 2021 H1 (RMB thousand) | Proportion (%) | 2020 H1 (RMB thousand) | Proportion (%) | | :--- | :--- | :--- | :--- | :--- | | Sales Assistance Services | 369,802 | 65.2 | 246,890 | 84.5 | | Pre-delivery Services | 85,346 | 15.0 | 42,388 | 14.5 | | Consulting and Other Services | 112,239 | 19.8 | 2,949 | 1.0 | | Total | 567,387 | 100.0 | 292,227 | 100.0 | Community Value-added Services Analysis Community value-added services experienced explosive growth, with revenue surging 419.0% to RMB 652 million, significantly increasing its contribution to total revenue from 9.2% to 25.2%, primarily driven by travel and integrated services and park operation services Community Value-added Services Revenue Composition | Service Segment | 2021 H1 (RMB thousand) | Proportion (%) | 2020 H1 (RMB thousand) | Proportion (%) | | :--- | :--- | :--- | :--- | :--- | | Family Life Services | 132,110 | 20.3 | 62,798 | 50.0 | | Park Operation Services | 205,255 | 31.5 | 32,767 | 26.1 | | Home Renovation Services | 48,759 | 7.5 | 14,587 | 11.6 | | Travel and Integrated Services | 265,620 | 40.7 | 15,416 | 12.3 | | Total | 651,744 | 100.0 | 125,568 | 100.0 | - Core community value-added businesses, such as community group buying (Jinke Jinxuan), home renovation (Jinke Yuejia), and travel and integrated services (Kangcheng Guolu), all achieved significant growth[32] Smart Technology Services Analysis Smart technology services revenue increased significantly by 115.8% to RMB 57 million, maintaining a high gross margin of 49.4%, empowering property management for cost reduction and efficiency while exporting digital solutions - In H1 2021, smart technology services revenue was approximately RMB 57 million, a year-on-year increase of 115.8%[34] - This business segment maintained a high gross margin of 49.4%[34] Gross Profit and Gross Margin Analysis The Group's overall gross profit increased 94.0% to RMB 840 million, with the overall gross margin slightly rising from 31.6% to 32.5%, and smart technology services achieving the highest gross margin at 49.4% 2021 H1 Gross Profit and Gross Margin (by Business Line) | Business Line | 2021 H1 Gross Profit (RMB thousand) | Gross Margin (%) | 2020 H1 Gross Profit (RMB thousand) | Gross Margin (%) | | :--- | :--- | :--- | :--- | :--- | | Property Management Services | 372,541 | 28.4 | 257,656 | 27.8 | | Non-owner Value-added Services | 210,036 | 37.0 | 116,512 | 39.9 | | Community Value-added Services | 229,502 | 35.2 | 45,995 | 36.6 | | Smart Technology Services | 28,162 | 49.4 | 12,871 | 48.7 | | Total | 840,241 | 32.5 | 433,034 | 31.6 | Liquidity and Capital Resources Analysis As of June 30, 2021, the Group maintained a robust financial position with RMB 6.265 billion in cash and cash equivalents, a significant increase in operating cash flow to RMB 673 million, and a zero capital gearing ratio with no bank borrowings - As of June 30, 2021, cash and cash equivalents were approximately RMB 6.265 billion[52] - Net cash inflow from operating activities was approximately RMB 673 million, compared to RMB 10.7 million in the same period last year, primarily due to increased operating profit and enhanced collection management[53] - As of June 30, 2021, the Group had no borrowings, and the capital gearing ratio was zero[53][54] Prospects and Future Plans The company will continue to develop its space, life, and technology services, focusing on urban density and M&A for space, expanding community ecosystem businesses for life, and increasing R&D for technology to enhance barriers and smart city initiatives - Space Services: Solidify urban density strategy, consolidate core competitive advantages in Southwest China, actively respond to M&A opportunities, and develop the non-residential segment[35] - Life Services: Thoroughly develop community value-added businesses, focus on the mass consumption sector, vigorously develop community group buying, home renovation and beautification, property brokerage, group meal catering, and travel services[35] - Technology Services: Increase product R&D investment, upgrade the "Tianqi Cloud City" smart system, leverage technological advantages to empower business expansion, and actively participate in smart city construction[36] Material Acquisitions and Disposals During the reporting period, the company completed two key acquisitions: 100% equity in Chongqing Meilishan Property to boost its high-end residential market share in Chongqing, and 100% equity in Baotou Smart Property to enter the Inner Mongolia market and expand its national footprint - In May 2021, acquired 100% equity in Chongqing Meilishan Property for a total consideration of approximately RMB 102.5 million (including assumed liabilities), aligning with the company's urban density strategy[57] - In February 2021, acquired 100% equity in Baotou Smart Property for a transfer consideration of RMB 57 million, contributing to the expansion into the Inner Mongolia market[58] Use of Net Proceeds from Listing The company disclosed the utilization of approximately HKD 6.615 billion net proceeds from its November 2020 listing, with HKD 1.118 billion used by June 30, 2021, primarily for strategic investments, value-added services development, and general working capital, consistent with prospectus plans Summary of Use of Net Proceeds from Listing (as of June 30, 2021) | Planned Use | Planned Amount (HKD million) | Utilized Amount (HKD million) | Unutilized Amount (HKD million) | | :--- | :--- | :--- | :--- | | Strategic investments and acquisitions | 3,968.94 | 434.27 | 3,534.67 | | Upgrading digital and smart management systems | 661.49 | 0.49 | 661.00 | | Development of value-added services | 1,322.98 | 178.12 | 1,144.86 | | General business operations and working capital | 661.49 | 505.46 | 156.03 | | Total | 6,614.9 | 1,118.34 | 5,496.56 | Employees and Remuneration Policy As of June 30, 2021, the Group employed approximately 9,029 individuals, implementing a remuneration package including salaries, bonuses, and allowances with regular performance appraisals, resulting in total staff costs of RMB 691.5 million for the period - As of June 30, 2021, the Group had approximately 9,029 employees[67] - In H1 2021, total staff costs amounted to RMB 691.5 million, compared to RMB 499.3 million in the same period last year[67] Corporate Governance Corporate Governance The company adopted the Corporate Governance Code, complying with all provisions except for the non-separation of Chairman and CEO roles, and the Audit Committee reviewed the interim report and unaudited financial results - The roles of Chairman and Chief Executive Officer are both held by Executive Director Mr. Xia Shaofei, which deviates from Rule A.2.1 of the Corporate Governance Code[69] - The Audit Committee, together with management and external auditor PricewaterhouseCoopers, discussed and reviewed the unaudited interim results for the period[72] Other Information Other Information This section details shareholdings of directors, supervisors, chief executives, and major shareholders as of June 30, 2021, noting the Board's decision not to declare an interim dividend for 2021, following the payment of the 2020 final dividend on June 25 - As of June 30, 2021, controlling shareholder Jinke Property held approximately 52.33% of the company's total share capital[77] - The company paid a final dividend of RMB 0.5 per share (before tax) for the year ended December 31, 2020, on June 25, 2021[86] - The Board resolved not to declare any interim dividend for the six months ended June 30, 2021[86] Interim Financial Information Review Report on Interim Financial Information The independent auditor, PricewaterhouseCoopers, reviewed the interim financial information according to HKSRS 2410, concluding no material issues regarding its preparation under HKAS 34 "Interim Financial Reporting" - Auditor PricewaterhouseCoopers issued a review conclusion on the interim financial information, finding no material issues[89] Financial Statements This section presents the condensed consolidated interim statements for the six months ended June 30, 2021, including comprehensive income, financial position, equity changes, and cash flows, showing a RMB 542 million profit, RMB 9.586 billion total assets, and strong operating cash flow 2021 H1 Financial Summary | Indicator | Amount (RMB thousand) | | :--- | :--- | | Comprehensive Income Statement: | | | Revenue | 2,585,740 | | Gross Profit | 840,241 | | Operating Profit | 642,829 | | Profit for the period | 541,761 | | Profit attributable to owners of the Company | 529,813 | | Statement of Financial Position (Period End): | | | Total Assets | 9,585,911 | | Total Liabilities | 2,110,805 | | Total Equity | 7,475,106 | - Basic and diluted earnings per share were RMB 0.81, higher than RMB 0.64 in the same period last year[90] Notes to the Condensed Consolidated Interim Financial Information This section provides detailed explanations and supplementary information for the interim financial statements, covering preparation basis, accounting policies, segment information, revenue and cost breakdowns, asset and liability composition, business combinations, and related party transactions, essential for understanding the financial reports - During the reporting period, the Group completed business combinations of seven companies, with a total purchase consideration of RMB 139 million, resulting in goodwill of RMB 133 million[146] - Newly acquired businesses contributed RMB 35.865 million in revenue and RMB 4.337 million in net profit to the Group from the acquisition date to the end of the period[148] - The notes detail transactions with the ultimate controlling company, Jinke Group, and its associates, including service provision, goods procurement, and fund transfers[160][162] Glossary and Definitions Glossary and Definitions This section defines specific terms and abbreviations used throughout the report, such as "Jinke Property," "Jinke Group," "H Shares," and "the Period," ensuring accurate comprehension of the content