Tapping into the Property Management and Service Market in Sichuan-Chongqing Region, Desun Services Debuts on the HKEX Today

CHENGDU,China,Dec. 17,2021 -- On 17 Dec 2021,Desun Real Estate Investment Services Group Co.,Ltd. (Desun Services) was officially listed on HKEX. According to the public information,Desun Services issued 150 million shares at a final offer price of HK$ 1.11 per share,raising net proceeds of HK$ 128 million.

According to the prospectus,Desun Services strives to provide property management services and commercial operation services for mid-to high-end residential and commercial properties,respectively.

In 2020,the average property management fee for properties under the management of Desun Services was RMB 3.9,50.0% higher than the average property management fee of RMB 2.6 for properties in Chengdu; and 105.3% higher than the average property management fee of RMB 1.9 for properties in China. From a geographical point of view,the Company's objective is to strengthen their positions in Chongqing Municipality and Sichuan Province,while focusing on western China and aiming for nation-wide expansion.

Leveraging on the deep penetration into the Sichuan-Chongqing Region and the focus on mid-to high-end property services,the performance of Desun Services has shown a rapid growth in the past few years. For the period of 2018-2020 and 5M2021,the revenue of Desun Services was RMB 63.964 million,RMB 69.116 million,RMB 127.922 million and RMB 89.159 million,respectively,while the profits for the same period were RMB 31.394 million,RMB 31.043 million,RMB 42.913 million and RMB 10.003 million,respectively.

To some extent,the rapid growth of Desun Services is inseparable from the development dividends in Sichuan-Chongqing Region.

With the galloping development of Cheng-Yu city cluster driven by the economic development in Southwest China,from 2015 to 2020,the total GFA (gross floor area) under management by property management companies in Chengdu increased from 635.3 million square meters to 814.6 million square meters,representing a CAGR (compound annual growth rate) of 8.8%. Expected that by 2025,the total GFA under management by property management service providers in Chengdu is expected to reach 983.1 million square meters,with an expected CAGR of 5.4% from 2020 to 2025.

Fueled by the steady increase in property GFA under management,the total revenue of property management service companies in Chengdu increased from RMB 10.06 billion in 2015 to RMB 18.68 billion in 2020,with a CAGR of 13.2%.Expected that by 2025,the total revenue of property management service companies in the Chengdu region is expected to reach RMB 34.39 billion,with an expected CAGR of 13.0% from 2020 to 2025.

Notably,the mid-to high-end property market in the region has performed more prominently.

From 2015 to 2020,total GFA under management in the mid-to high-end residential property management services market in Chengdu has increased from 85.7 million square meters to 125.2 million square meters,with a CAGR of 7.9%. Propelled by the growth in property GFA under management,the total revenue of the mid-to high-end residential property management services market in Chengdu increased from RMB 2.16 billion in 2015 to RMB 4.39 billion in 2020,with a CAGR of 15.3%.

Looking ahead,with the sustained expansion of Chengdu-Chongqing Megalopolis,the market demand for mid-to high-end property services in Sichuan and Chongqing regions is poised to keep booming. In this process,Desun Services will embark on a new journey once again by leveraging the momentum of growth in Chengdu-Chongqing Megalopolis.