Total GFA under Management Up 8.2% to 102.3 million square meters
HONG KONG SAR – Media OutReach Newswire – 22 March 2024 – Kaisa Prosperity Holdings Limited (the “Kaisa Prosperity” or the “Company”, together with its subsidiaries, the “Group”; SEHK stock code: 2168) announced the audited annual results of the Group for the year ended 31 December 2023 (the “Reporting Period”).
As one of the leading urban comprehensive service providers in China, Kaisa Prosperity actively responded to the changes in the market environment, and adhered to the principle of “striving for progress while maintaining stability, giving priority to efficiency”, deepened its service, cultivated its business and conducted in-depth operations, and maintained a good momentum of steady and high-quality development through the dual wheel drive of “Organic growth + Independent expansion”. The Group’s management scale has reached a new level, which had its GFA under management increased 8.2% to 102.3 million square meters and the number of projects under management has increased from 673 to 720, establishing presence in 74 cities in 19 provinces.
For the year ended 31 December 2023, the Group’s revenue grew to approximately RMB1,794.3 million, of which revenue from property management services increased by 7.2% year-on-year to approximately RMB1,338.1 million.
Gross profit for the year ended 31 December 2023 increased by approximately 2.2% to approximately RMB481.3 million from approximately RMB471.1 million for the year ended 31 December 2022.
Cash and cash equivalents increased by approximately 16% from RMB247.3 million to RMB286.8 million, representing a significant improvement in the Company’s operating cash flow. Consolidated gross profit margin improved from 26.4% to 26.8%.
Independent Third-Party Property Business Sustained Strong Growth Momentum
During the Reporting Period, the Group continued to focus on the “Whole portfolio and Whole cycle” (全業態、全周期) high-quality service scenarios, and vertically conducted in-depth research on the scope of its services and horizontally extended their boundaries, continuous enrichment of the property sector. During the period, revenue from property management services continued to increase, mainly attributable to the increase in the total GFA under management resulting from the business expansion through organic growth and independent third-party market development.
The Group further increased the proportion of cooperation on properties developed by independent third-party property developers. During the Reporting Period, the Group managed approximately 60.4 million sq.m. of GFA of properties developed by independent third-party property developers, representing an increase of approximately 3.6% from approximately 58.3 million sq.m. as of 31 December 2022. In addition, the revenue of projects for properties developed by independent-third party developers increased by 16.1% to approximately RMB810.1 million.
The proportion of related parties transaction decreased from 19% to 15%, further reducing the Company’s reliance on related parties and increasing prominence of operational independence.
Construction of 15-minute Convenient Urban Living Circle and Creation of a Second Growth Curve
While foundational services are the fundamentals of property management enterprises, value added services shall be increments of property management enterprises. By expanding and deepening value-added services, creating a “second growth curve” became an inevitable choice for property management enterprises. During the Reporting Period, the Group provides diversified products and services to owners and residents through K Series Living to meet their ever-changing daily needs. Kaisa Prosperity’s Neighborhood Living Circle combines “K Series Living Mall” (小K生活商城) (online) and K Series Living Exhibition Hall (offline) to build a comprehensive, one-stop and high-quality community value-added service ecosystem. For the period ended 31 December 2023, the Group’s revenue generated from community value-added services amounted to approximately RMB176.1 million, representing an increase of 13.2%. In the future, K Series Living Exhibition Hall will continue to be expanding quickly to the communities under the management of Kaisa Prosperity across the country. The Neighborhood Living Circle will gradually promote the improvement and popularization of the neighborhood platform, and contribute to serving the people’s basic livelihood, promoting consumption upgrading, and smoothing the community economic microcirculation.
Smart Solution Business Continues to Upgrade Products and Expand Product Portfolio
Shenzhen Jiake Intelligent Technology Co. Ltd.* (“Jiake Intelligent”) (深圳市佳科智能科技有限公司), a smart solution service provider under the Group continued to develop the intelligent third-party market, and has been included in the qualified supplier database by 389 developers.
In May 2023, Jiake Intelligent was recognized as a national “Specialised and Sophisticated Enterprise”. In November 2023, Jiake Intelligent once again successfully passed the reexamination of “National High-tech Enterprise” after strict evaluation, which demonstrated the recognition of Jiake Intelligent’s innovative ability in science and technology, and was of great significance to enhancing the brand image of Jiake Intelligent.
Jiake Intelligent has further upgraded and expanded its products. The unmanned car park system and its related products helped to achieve cost reduction and efficiency enhancement in property management. Its self-developed high-altitude parabolic intelligent monitoring system has been widely installed in various projects and successfully reduced high throw incidents happened during the operation of these projects, which greatly reduced the human and material resources input for supervision. The intelligent door lock products were further developed and upgraded from their original versions with more diversified functions, and the safety coefficient of the products was greatly enhanced. Using advanced technologies such as cloud computing, Internet of Things, big data and artificial intelligence as well as unattended equipment, it will build a private cloud server for cloud parking and undertake parking lot renovation business, so as to build a smart cloud parking brand of Jiake Intelligent.
Quality Service and Strong Brand Recongnized by the Industry
Through unremitting efforts, the Group was awarded 2023 Top 100 Property Management Companies in China, 2023 China Leading Property Management Companies in terms of Characteristic Services, 2023 China Excellent Property Management Companies in Terms of ESG Development, 2023 China Five-star Property Service Project, 2023 Top 20 Listed Company of Property Management Service, 2023 Top 100 Property Service Companies in China, 2023 Leading Company of China in Property Service Satisfaction, 2023 Leading Companies of China in City Service, 2023 Top 10 Public Property Service Companies in China, 2023 Top 20 City Service Companies in China, 2023 China Property Management Enterprise High-quality Service System – Prosperity FUN, 2023 Excellent Projects of China Property Management – Shenzhen Zhongyang Plaza, 2023 China Top 100 Property Service Enterprises in Brand Value, 2023 Top 30 Property Service South China Brand Enterprises, 2023 Top 100 Property Service Companies in the Guangdong-Hong Kong-Macao Greater Bay Area and 2023 Leading Enterprise in the Property Management Market in the Guangdong-Hong Kong-Macao Greater Bay Area.
Mr. Liao Chuanqiang, Chairman of Kaisa Prosperity, said, “As an industry that derives from the real estate development business, the property management industry has the exclusive characteristics of “Rigid demand + Long cycle” and is also the most frequent contact point for customers. Property management almost penetrates into the entire aftersales market of the real estate industry which is of great development potential. Kaisa Prosperity will continuously take quality services and quality expansion as the anchor to promote the orderly, quality and steady expansion of its management scale, continuously extend and broaden the value-added service chain to create a second growth curve. We will continue to consolidate our fundamentals and sharpen our increments, seize the opportunities and face the difficulties, and spare no effort. Leveraging on the policy of “Swapping Old for New Action Plan” (以舊換新行動方案) of the state, we will launch community rejuvenation activities, actively conduct trial operation of community elderly care business, and promote the elderly-friendly and intelligent transformation of homes to meet the diversified consumption needs of homeowners, so as to achieve all-round and high-quality development with continuous efforts.”
Hashtag: #kaisaproperty
The issuer is solely responsible for the content of this announcement.
About Kaisa Prosperity
Headquartered in Shenzhen, Kaisa Prosperity Holdings Limited was established in 1999. The Company was listed on the mainboard of the Stock Exchange of Hong Kong on 6 December 2018 with stock code: 2168.HK. As one of the leading comprehensive city operation service providers in China, Kaisa Prosperity ‘s businesses cover major economic regions including Greater Bay Area, Yangtze River Delta, Bohai Economic Rim.
As of 31 December 2023, the Group has entered into 19 provinces and 74 cities in China, with a total GFA under management reaching 102.3 million sq.m, serving mid- to high-end properties including commercial properties, office buildings, arenas and stadiums, government buildings, public facilities and industries. The Company is principally engaged in 4 business areas, such as property management service, pre-delivery and consulting service, community value-added service and smart solution services.
