According to the Hong Kong Stock Exchange on August 30, Suxin Joyful Life Services Co., Ltd. Submit a listing application to the Main Board of the Hong Kong Stock Exchange, with BOCOM International as the sole sponsor.
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Suxin Better Life is one of the comprehensive urban service and property management service providers in the Yangtze River Delta region, especially Suzhou. According to Frost & Sullivan, in 2020, the Company ranked first in the Suzhou property management service market and the Suzhou city service market in terms of total revenue and urban service income, and ranked 3rd and 5th respectively in terms of revenue from urban services in Jiangsu Province and non-residential property management services in Jiangsu Province.
In terms of comprehensive strength, Suxin Better Life has been rated as one of the top 100 property service enterprises in China by the China Finger Institute for six consecutive years since 2016, and ranked 48th in the top 100 property service enterprises in China in 2021.
As a management service provider, Suxin Better Life provides diversified urban services for public infrastructure, as well as basic property management services and value-added services for commercial properties and residential communities. Its urban services include municipal infrastructure services, public construction project management services and the operation of waste collection centers. In addition, the Company provides basic property management and value-added services to the commercial properties it manages (e.g. industrial parks and manufacturing plants, office buildings, apartments and commercial complexes) and residential complexes.
As of June 30, 2021, the Company has booked approximately 77 projects in three cities across the Two Provinces of the PRC to provide public construction project management services, basic commercial property management services and basic residential property management services with a total contracted GFA of 7.2 million square meters, of which 76 projects have a total GFA under management of more than 6.6 million square meters.
Suxin Better Life has built two garbage collection centers in Suzhou, one of which is fully operational, with a maximum capacity of 400 tons of domestic waste and 50 tons of large-scale garbage per day, while the other is undergoing trial operation for testing purposes. At the same time, the company is also building another garbage collection center in Suzhou, which is expected to be put into operation in the first half of 2022. Together, the three waste collection centres will be able to handle a total of 1,200 tonnes of domestic waste and 50 tonnes of bulky waste per day.
In 2018, 2019, 2020 and the six months ended 30 June 2020 and 2021, the total revenue of Suxin Good Life was RMB388 million, RMB436 million, RMB437 million, RMB201 million and RMB222 million, respectively, and the Company's profit for the year or period was RMB36.155 million, RMB43.554 million and RMB48.103 million, respectively. RMB20.826 million and RMB23.87 million.
According to the prospectus, Suxin Good Life has established a long-term and close strategic relationship with Su Gaoxin Group. Since its establishment in 1994, SuXin Better Life has been providing commercial and residential property management services to the properties developed by Su Gaoxin Group. During the track record period, Su Xin Good Life provided property management services to most of the properties developed by Su Gaoxin Group or its joint ventures or associated companies.
As at 30 June 2021, 40 properties under management in the Su Xin Better Life Project were developed by Su Gaoxin Group or its joint ventures and associated companies, with a total GFA of 4.2 million square meters, accounting for 63.0% of the total GFA under management.
In addition, in 2018, 2019 and 2020, The winning bid rate of Suxin Good Life for properties developed by independent third parties was 85.7%, 94.1% and 88.9%. In 2018, 2019, 2020 and the six months ended 2020 and 30 June 2021, the proceeds arising from the provision of property management services to properties developed by independent third party property developers accounted for approximately 44.2%, 45.8%, 44.6%, 45.7% and 43.2% of the total revenue of commercial property management services, respectively, and accounted for approximately 10.2%, 13.7%, 19.7% and 17.6% of the total revenue of residential property management services respectively. and 19.3%.
During the track record period, the majority of Sushin Better Life's revenue came from commercial and residential property management services, accounting for 69.9%, 62.6%, 61.3%, 64.4% and 60.2% of the total revenue in 2018, 2019, 2020 and the six months ended 30 June 2021, respectively.
The most important of these is business management services, in 2018, 2019, 2020 and the six months ended 2020 and June 30, 2021, Suxin Better Life's revenue from commercial property management services accounted for 48.8%, 45.4%, 44.9%, 47.5% and 46.3% of the total revenue for the same period, respectively.
As at 31 December 2018, 2019 and 30 June 2020, Suxin Good Life provided basic commercial property management services to 34, 34, 37 and 38 commercial properties respectively, with a total GFA under management of 2 million square meters, 2.1 million square meters, 2.4 million square meters and 2.4 million square meters respectively.
In 2018, 2019, 2020 and the six months ended 30 June 2020 and 2021, the Company's overall gross profit margin was 18.3%, 20.3%, 21.1%, 21.3% and 23.4%, respectively, and the overall gross margin was affected by gross margins across business lines and fluctuations in the business mix. The overall gross margin improved during the track record period as a result of the combined impact of higher gross margins across business lines and different contributions from business lines.
In terms of gross profit margin, in 2018, 2019 and 2020, the gross profit margin of Suxin Better Life remained relatively stable, at 22.5%, 22.0% and 23.0% respectively. Among them, the gross profit margin of property leasing services was the highest, from 70.5% in the six months ended June 30, 2020 to 86.4% in the six months ended June 30, 2021, mainly due to the cessation of rent reduction of $4.4 million for tenants in 2021 (as a mitigation measure to respond to the COVID-19 pandemic).
Su XinJing said that the gross profit margin of its property leasing services is higher than that of urban services, commercial property management services and residential property management services, mainly because the other three business lines are more labor-intensive and the cost of sales is generally higher, especially labor and subcontracting costs.