HONG KONG, Mar 25, 2024 - (ACN Newswire) - New Hope Service Holdings Limited (New Hope Service or the Company, Stock Code: 3658), an integrated property management enterprise engaging in the provision of lifestyle service solutions, announced its annual results for the year ended 31 December 2023 (the Reporting Period).

In 2023, New Hope Service focused on advantageous areas, persisted in qualitative expansion, and achieved high-quality growth in core performance indicators by tapping into increased profits through commercial operational services and lifestyle services. During the Reporting Period, the Group recorded revenue of approximately RMB1,260.7 million, representing an increase of 10.7% as compared to the same period last yearï¼›Gross profit was approximately RMB440 million, and gross profit margin was 34.9%. Net profit margin attributable to the parent Company was 17.1%, remaining at mid-to-high level. Meanwhile, the Company has strengthened operations and lean management, yielding profit attributable to equity shareholders of the Company amounting to approximately RMB215 million, and basic earnings per share RMB0.26, an increase of 6% over the same period last year. The Board recommended payment of a final dividend of RMB0.091 per share, with an interim dividend of RMB0.067 per share, for a total annual dividend of RMB0.158 per share, equivalent to a dividend payout ratio of 60%. As at the end of the Reporting Period, the Company's net cash flow from operating activities climbed by 87.1% against the same period last year to approximately RMB335 million, reflective of the healthy operation and ample cash flow of the Company.

Tap into local needs and focus on advantageous areas

New Hope Service continued to follow the development strategy of deep regional penetration. As at 31 December 2023, the Group had projects in 33 cities across China, with the area under management 32,258,000 square meters ("sq.m."), representing an increase of 11.9% as compared to the same period last year, and the contracted area of 38,172,000 sq.m., representing an increase of 5.6% as compared to the same period last year. Among them, 95.1% of the Group's property management projects were in first-tier, new first-tier and second-tier cities in China, while 93.8% of revenue from property management was also derived from such cities.

In addition, New Hope Service continued to step up its efforts in high-tier cities in the Southwestern China regions with Chengdu as the core, and Eastern China regions, both of which accounted for 85.3% of the total area under management, with the advantage of regional intensity continuing to emerge. Specifically, the area under management in the Southwestern China region was 16,918,000 sq.m., and the revenue from property management was RMB310 million, accounting for 47.4% of the total revenue from property management. As the national central city in the Western China region, the area under management in Chengdu was 10,642,000 sq.m., accounting for 33% of the total area under management; The area under management in the Eastern China region was 10,628,000 sq.m., and the revenue from property management was RMB250 million, accounting for 37.9% of the total revenue from property management.

Insist on quality expansion and enhance independent capability

The Company insisted on balancing "quality" and "scale", and continued to conduct multi-channel market expansion via, among other means, bidding, establishing joint ventures and strategic partnership. In 2023, the company successfully completed the acquisition of Chengdu Jinguan Xincheng Property Management Co., Ltd., successfully expanded high-end residential projects such as Sunshine City Tan Yue and Binjiangjiuli, financial industry projects such as China Guangfa Bank Kunming Branch* and China Construction Bank Sichuan Branch Xinjin and Dayi Sub-branch, and industrial park projects such as Chantou Jiangnan Industrial Park and Vipshop Guangxi Headquarters*. Meanwhile, New Hope Service established joint venture with Chengdu Wuhou State-owned Capital Investment and Operation Group Co., Ltd., Chengdu Wuhou Development Co., Ltd., Chengdu Wuhou Capital Investment Management Group Co., Ltd, and Longquan Economic and Technological Development Zone respectively, and successfully signed contracts for projects such as Shuanghua Digital Industrial Park and Tiefo Park. During the Reporting Period, the contracted area under management by independent third-party developers accounted for approximately 40% of the total contracted area, representing an increase of 6.2% as compared to the same period last year.

Moreover, benefitted from New Hope Wuxin Industrial's relatively strong performance capability, the Company delivered projects as scheduled in 16 cities nationwide, amounting to nearly 37,000 units in total, and brought the Company concrete support for continuous growth in terms of GFA under management.  Sticking to maintain the quality of middle-to-high-end projects, the Company recorded the average management fee per sq.m. of RMB2.95 during the Reporting Period.

Non-cyclical businesses are steadily growing and commercial operations are delivering performance results

By virtue of the industrial background of the Fortune Global 500 New Hope Group and relying on the customer-access attributes of property services, the Company achieved good performance growth in the lifestyle services segment through non-cyclical businesses such as group-on meals and retail services. As at 31 December 2023, the Company had 22 group-on meal business projects in operation, of which 50% fell within the comprehensive logistics services of "property + group-on meal", achieving a bid winning rate of 42%. In the same year, customized services for corporate customers also achieved good results, a total of 24 products developed and more than 110,000 customized gift boxes provided, with the revenue from gift boxes increasing by 56.4% as compared with the same period last year.

In terms of commercial operational services, in 2023, in order to meet the needs of business development, the Company established a commercial operation company with its organization developed around "financing, investment, management and exit". During the Reporting Period, the GFA from operating commercial projects under management by the Group was approximately 539,000 sq.m., in cities such as Chengdu and Kunming covering consumption scenarios such as professional markets, commercial streets, industrial parks and office buildings, with an average occupancy rate of 87.8%, a gross profit margin of 60.2%.

With steady development, industry-leading service quality and customer reputation, New Hope Service has been rated as one of the "TOP 100 Property Management Companies in China" by China Index Academy ("CIA") for four consecutive years, with the ranking of the Company rising up to the 6th (10th in 2022) in terms of the market influence in Western China. Meanwhile, the company won the honors including "Top 1 Chengdu Enterprise with Excellent Service Capacity in China Property Service Industry in 2023" and "Top 5 of the Top 50 Chengdu Property Services Enterprises in terms of Comprehensive Strength in 2023.

Going forward, the Group will continue to strengthen digital construction to empower high-quality services and the improvement of management efficiency. In terms of residential business, the Group will consolidate its position as a benchmark for high-end residential projects, and empower other projects with high service standards. In terms of non-residential business, based on the all-round planning for corporate services, the Group will continue to provide B-end customers with extensive corporate services, precisely covering the needs of various companies at different stages of development. The Group will adhere to regional cultivation, with market-oriented expansion as well as investments, mergers and acquisitions, so as to expedite the development of the Company. In the future, New Hope Service will facilitate the connection with New Hope Group, and drill down into New Hope's brand strengths in lifestyle in order to offer the clients diversified comprehensive solutions for lifestyle services.

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