New Hope Service 2022 revenue prides high-quality growth, GFA under management up 77.8%
HONG KONG, March 23, 2023 /PRNewswire/ -- New Hope Service Holdings Limited ("New Hope Service" or "the Company", stock code: 3658.HK ), a well-established comprehensive property management and lifestyle service operator in China, has announced its annual results for the year ended 31 December 2022 (the "Reporting Period").
In 2022, New Hope Service continued to cultivate regional business, worked hard on expanding management scale and increasing independence, implemented multiple measures to improve service quality, as such, it achieved high-quality growth in all key results. During the Reporting Period, the Company recorded revenue of RMB 1,139 million, 23.1% more than that in 2021, with gross profit reaching RMB 431 million, a 14.5% increase against the previous year. The profit attributable to equity shareholders of the Company was RMB 203 million, up 8.8% when compared with the same period last year. Net profit margin was 17.8%. The Company had net cash flow generated from the operating activities of RMB 179 million, staying positive for three consecutive years. The Board recommended payment of a final dividend of RMB 0.12 per share for the year ended 31 December 2022 (For the year ended 31 December 2021: RMB 0.071 per share). Dividend Payout increased from 35% in 2021 to 50% of 2022.
Adhered to regional business cultivation strategy GFA under management expanded steadily
In 2022, focusing on key regions where it enjoys advantages, the Group continued to step up efforts in cultivating markets in Southwestern China region, with the Chengdu-Chongqing area as the core, and high-tier cities in the Eastern China. As at 31 December 2022, the Company had projects in 33 cities across the country, 191 projects under management and GFA under management of 28.826 million sq.m., an increase of 77.8% against the same period last year. It had 235 contracted projects with contracted GFA spanning 36.149 million sq.m., 37.0% more year-on-year. The GFA under management in first-tier, new first-tier and second-tier cities in China accounted for more than 90% of its total GFA under management.
Moreover, thanks to its regional cultivation strategy and the acquisition of Chengdu Mingyu Global Business Management Co., Ltd., up till 2022, the Company's newly added areas in the Chengdu-Chongqing urban district accounted for 45.7% of the total, 127.2% more year-on-year. The total GFA under management in Southwestern China region increased by 98.3% against the previous year.
The Company, while continuing to diversify its residential business, also actively embarked on building a more diverse non-residential business portfolio comprising hospitals, commercial complexes, office buildings, etc. It strengthened service quality and expanded property management service types. During the Reporting Period, it managed non-residential GFA of 10.515 million sq.m., accounting for 36.5% of the total, up 3.7% year-on-year, and made revenue of RMB213 million from them, 27.8% more year-on-year.
Strengthening market expansion capability Further increasing independence
Through various channels such as mergers and acquisitions, bidding, strategic cooperation and joint ventures, the Company continued to expand markets and saw its market expansion capability and independence strengthened. As of 2022, the GFA under management by the Company under independent third-party contracts was 13.408 million sq.m., accounting for 46.5% of the total, an increase of 188.5% against the same period last year. In the two years starting from the third quarter of 2020, the Company expanded GFA under management for close to 10 times.
At the same time, the Company maintained long-term and close business relationship with the various business segments of New Hope Group. In terms of sustaining growth in management scale, the Company has benefited in particular from the steady development of New Hope Property. As for other business segments of New Hope Group, they have also opened huge room for the Company to develop value-added services and technological applications.
Rapid development of lifestyle services business braces high-quality revenue growth
An important revenue source of the Company, lifestyle services business, which focuses mainly on offering online and offline retail and catering services, community living services and community asset management services. Among the different services it provides, group meal service and online and offline retail services achieved a significant increase in revenue for the year thanks to the steady growth of the Company's non-cyclical business.
Group Meal Business branded New Foodism provides "property + group meal" integrated logistics services including full-commissioning service, labor support, meal preparation and ingredient delivery. As of 2022, it had 14 projects in operation at including medical institutions, schools, offices, large corporate parks. It has grown into a group meal service operator who affords more thorough penetration, more complete coverage of service scenarios and multi-level reach in the medical industry chain in Sichuan region.
As for new retail business, backed by the Fortune Global 500 enterprise New Hope Group with supply chain advantages, brand prominence and copious product types, it has been able to deeply integrated products in the Company's different segments centering around residents' needs for "food, housing, transportation, travel and shopping". It has more than 2,000 SKUs now, of which 60% are products of New Hope Group. At the same time, through the Hope Cloud online platform and various offline community consumption scenarios, the Company has been able to increase C- and B-end product penetration and repeated purchases.
Regarding centralized procurement supply chain service, the Company and New Hope Holdings had signed an agreement to provide the latter and its subsidiaries and associates with centralized procurement supply chain services. For this reason, the Company carried out digital transformation of its supply chain business and launched a centralized procurement mall on 30 September 2022. During the Reporting Period,, the business completed the coverage of 460 companies.
Aware of residents' aspiration for a better life, New Hope Service makes full use of New Hope Group's diversified business coverage and rich resources to expand the scale and portfolio of its lifestyle services and provide products with greater market competitiveness, thereby fortify its "property services + lifestyle services".
A company that values sustainable development, New Hope Service, priding high service quality and a good reputation among customers, has realized healthy development in and contributed positively to the increasingly competitive property management industry. During the Reporting Period, the Company made the lists of "2022 Property Management Companies for Superior Service Capabilities in China" (ranking 20th, up 14 places from last year) and "2022 Property Management Companies in China in terms of Overall Strength" (placing 25th, up nine places from last year) published by EH Consulting. It was also among the TOP 30 on the "2022 TOP100 Property Management Companies in China" list compiled by the China Index Academy and the "Top 30 New Stocks" named by Tencent and Finet.
Looking ahead, New Hope Service will uphold the strategy of pressing for high-quality growth, reinforce its service capabilities and maintain its quality services. While expanding the scale of its business, it will also enhance its group catering and full-industrial chain operation capabilities, and integrate midstream and upstream businesses with end-user demands as reference. Moreover, the Company will strive for tight linkage with New Hope Group's different operations, such as food and fast consumer goods segments, to empower future growth, plus strengthen strategic cooperation with other quality partners. Lastly, New Hope Service will give full play to its brand and capability advantages in cultivating the Chengdu market, taking its management services to the greatest depth and realize "New lifestyle services for prosperous Chengdu".
New Hope Service Holdings Limited (stock code: 3658.HK)
New Hope Service (stock code: 3658.HK), as a lifestyle service provider, embraces the mission of "Happiness, make it everyday" and is committed to meeting the needs of customers. Boasting fully integrated and customized services, it has established presence in metropolitan areas and city clusters in China, providing customers in first-tier, new first-tier and second-tier cities with property management services, lifestyle services and commercial operation services, as well as value-added non-property owner services. Moreover, with its own business scaling up steadily and on the back of New Hope Group, a Fortune 500 enterprise, which has an extensive lifestyle service layout, New Hope Service is able to continuously guarantee customer satisfaction and report high-quality operating results. It ranked 25th among the "2022 Property Management Companies in China in terms of Comprehensive Strength" and won the "2022 Golden Kirin Hong Kong and US Listed Companies Awards - Best Small and Medium-Cap Company" award.
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SOURCE New Hope Service