2021-09-29-港交所-兴业物联_中期报告_2021_50页_1007kb

Xingye Wulian Service Group Co., Ltd. 2021 Interim Report Summary

1. Company Information

• Board of Directors: Executive Director Zhu Jie (Chairman & CEO), Non-executive Directors Zhang Huiqi, Wang Jinhu, Liu Zhenqiang, Independent Non-executive Directors Xu Chun, Feng Zhidong, Zhou Sheng.
• Authorized Representative: Zhu Jie, Leung Ka Ying.
• Auditor: Ernst & Young (HK).
• Principal Banker: Construction Bank (Zhengzhou Branch).
• Place of Business: Headquarters in Zhengzhou, Hong Kong office in Midtown.

2. Business Review

• The Group ranks 47th among the top 100 property management service companies in China, up from 60th in 2020.
• Total managed gross floor area expanded to 3.6 million sqm (as of Jun 2021), up from 3.1 million sqm a year ago.
• Entered into 26 property engineering contracts with a net value of RMB46.4 million (year-year basis: RMB22.6 million).

3. Financial Highlights

• Revenue: Total revenue for the period was RMB133.2 million, up 46.4% from RMB91.0 million.
• Gross Profit: RMB52.2 million (+13.7% YoY), but margin decreased to 39.2% vs 50.4% a year ago due to mix of new services and costs.
• Segment Performance:
  • Property Management & Value-Added: RMB102.5 million (+33.8%)
  • Property Engineering: RMB26.1 million (+81.8%)
• Profit for Period: RMB37.4 million, up 62.2% YOY.
• Financial Position: Good liquidity (RMB398m cash), manageable debt (RMB5.1m in liabilities), and rising trade receivables (RMB59.6m).

4. Future Outlook

• Focus on expanding high-end non-residential properties, selective acquisitions, mobile app development, and technology upgrades in property engineering services.
• Diversification into mid-high-end residential properties considered to improve operational efficiency and shareholder returns.

5. Governance & Compliance

• Follows corporate governance code and standards, including Chaired Audit Committee.
• Compliance with IFRS standards; financial statements reviewed by auditors.

6. Key Notes

• Majority shares held by Vistra Trust (BVI) Limited (56.59%), impacting corporate control structure.
• No major events since reporting period and capitalized funds planned for acquisitions and service upgrades.