On January 13, New Hope Services Holdings Co., Ltd. (hereinafter referred to as "New Hope Services") submitted a prospectus in Hong Kong, preparing to be listed on the Hong Kong Stock Exchange. It is understood that New Hope Services is the first property company to have an IPO in Hong Kong in 2021.
Third-party revenue accounted for less than 1%
The prospectus shows that New Hope Services mainly provides property management services, non-owner value-added services, commercial operation services and life services. As of September 30, 2020, its property projects cover 14 cities, 1 autonomous region and 2 municipalities in 6 provinces in China.
As of September 30, 2020, New Hope Services managed 55 projects with a total floor area of approximately 7.8 million square meters under management. As of December 31, 2020, the floor area under management of New Hope Services increased by 31.3% year-on-year to 10.3 million square meters.
Among them, New Hope Real Estate Group contributed a lot. The data shows that New Hope Service has 43 projects from New Hope Real Estate Group, with a floor area under management of 6.232 million square meters, and revenue of 107 million yuan, accounting for 82.4%.
At the same time, the number of projects from joint ventures or joint ventures of New Hope Real Estate Group is 5, with a floor area under management of 1.038 million square meters and revenue of 9.78 million yuan, accounting for 7.6%. This also means that New Hope Real Estate Group and its affiliates contributed 90% of the revenue to New Hope Services.
The number of projects from the contacts of the ultimate controlling shareholder of New Hope Services is 5, the floor area under management is 177,000 square meters, and the revenue is 12.589 million yuan, accounting for 9.7%; the number of projects from independent third parties is 2 , The floor area under management is 360,000 square meters, and the income is 396,000 yuan, accounting for 0.3%.
According to the introduction, the largest customer that New Hope serves is New Hope Group. In 2018, 2019 and the first three quarters of 2020, the revenue generated from the services provided to New Hope Group was 62.9 million yuan, 132.5 million yuan and 137.3 million yuan, respectively, accounting for 24.4%, 34.8% and 37.3% of its total revenue. .
Low gross profit margin for property management services
In terms of performance, the prospectus shows that the revenue of New Hope Services increased from 258 million yuan in 2018 to 380 million yuan in 2019, a year-on-year increase of 47.5%. In the first nine months of 2020 (the first three quarters), its revenue was 368 million yuan, and its revenue for the same period in 2019 was 280 million yuan, a year-on-year increase of 31.3%.
Among them, property management services and non-owner value-added services are the main sources. In 2019, property management service revenue was 141 million yuan, accounting for 37.0%; non-owner value-added service revenue was 128 million yuan, accounting for 33.7%. In the first three quarters of 2020, these two sectors are respectively 129 million yuan and 104 million yuan, accounting for 35.2% and 28.4% respectively.
In 2018, 2019, and the first three quarters of 2020, the net profit of New Hope Services was 41.058 million yuan, 64.041 million yuan and 79.361 million yuan; during the same period, the gross profit margin was 42.6%, 41.9% and 44.9%, respectively. Beduo Finance found that its comprehensive gross profit margin is higher than the average of listed property management companies (about 30%).
However, the gross profit margin of the property management service sector of New Hope Services is below average. During the reporting period, the gross profit margins of its property management services were 25.4%, 27.1%, and 31.9%, respectively. And the gross profit margin of the property management service sector is the lowest among the sectors that New Hope serves.
The prospectus shows that the sector with the highest gross profit margin is commercial operation services. However, the corresponding gross profit margins of the business operation service sector of New Hope Services are 75.4%, 61.4%, and 75.0%, which fluctuate greatly. There are also fluctuations in the gross profit margin of non-owner value-added services and living services.
New Hope Services stated in the prospectus that the fluctuation of gross profit margin is due to the company's expansion of case management services and community asset management services; and its newly launched services, such as tenant management services, online and offline retail services, and catering services.
Liu Yonghao and his daughter hold shares but do not manage
According to the prospectus, according to the concerted action agreement, New Hope Group Chairman Liu Yonghao and his daughter Liu Chang, through Golden Rose, Xinsheng, Adventure Way Pte. Ltd. and Medea Investments Limited, control more than 30% of the voting rights of the New Hope Service shareholders meeting. Its controlling shareholder.
It is worth noting that Liu Chang is the actual controller of New Hope Dairy (SZ:002946, referred to as "New Hope") under New Hope Group, and indirectly holds New Hope Liuhe (SZ:000876, referred to as "New Hope") and Minsheng Bank (SH: 600016) equity. In January 2012, Liu Chang also obtained Singaporean citizenship for the first time.
Liu Yonghao and Liu Chang
However, Liu Yonghao and Liu Chang did not hold any positions in New Hope Service. New Hope Service stated that for many years, its ultimate controlling shareholders Liu Yonghao and Liu Chang have not served as directors of the company or any member company of the group, nor have they participated in the daily operation and management of the group.
Before the IPO, Golden Rose held 90.8% of the shares, Cui Donghong (Chinese name: Cui Donghong) held 3%, and the employee shareholding platform held 6.2%. Among them, Cui Donghong has held a number of senior positions in the Singapore Chinese Chamber of Commerce and Industry. Through business activities, he met the ultimate controlling shareholder of New Hope Services.
Beduo Finance learned that Cui Donghong and his registered company Chengdu Jinjing Trading Co., Ltd. once appeared in the announcement of the resolutions of the 42nd meeting of the seventh board of directors announced by New Hope on April 3, 2019. Hope that its subsidiary Chengdu Fenglan Animal Nutrition Technology Co., Ltd. has a 30% stake.
Public information shows that Cui Donghong is the legal representative of Chengdu Jinjing Trading Co., Ltd. At the same time, Cui Donghong also served as the vice president of Tessa Therapeutics technology company in Singapore and the consultant of New Hope Singapore. In addition, Chengdu Jinjing Trading Co., Ltd. is also a wholly-owned shareholder of Chengdu New Hope Industrial Investment Co., Ltd.
Currently, the executives of New Hope Services include its chairman Zhang Minggui, Chief Executive Officer (CEO) and general manager of New Hope Services Chen Jing, executive director Wu Min, and non-executive director Jiang Mengjun. Among them, Wu Min is responsible for finance, capital markets, etc., and is also the executive vice president and chief financial officer of New Hope Real Estate.
Zhang Minggui served as the director of the Beijing office of New Hope Group, the CEO of New Hope Real Estate, the chairman of the Sichuan headquarters of New Hope Group, and the vice president of New Hope Group. From September 2020, Zhang Minggui has been appointed as the executive director and chairman of New Hope, a listed company under New Hope Group.