Desun Services Rings the Opening Bell today at the Hong Kong Stock Exchange with a Stellar Performance in Value-Added Services

CHENGDU,China,Dec. 17,2021 -- On 17 Dec 2021,Desun Real Estate Investment Services Group Co.,Ltd. (Desun Services),a company headquartered in Chengdu,Sichuan Province,rang the opening bell at the Hong Kong Stock Exchange. The company issued 150 million shares at a final offer price of HK$ 1.11 per share,raising net proceeds of HK$ 128 million,with Shenwan Hongyuan Capital (H.K.) Limited as its sole sponsor.

As a property management service company that focuses on Sichuan-Chongqing Region,Desun Services has earned multiple accolades in the industry. According to the prospectus,Desun Services ranked 54th among the "Top 100 Property Services Companies in China" in 2021. Besides,the company was named as a "China's Leading Enterprise for High-end Property Services" by China Index Academy,as well as a Top 50 of Property Services Company in Western China and a Top 10 Property Services Company in Chengdu.

Ason 31 May 2021,the GFA (gross floor area) under the management of Desun Services was approximately 4.2 million square meters,of which the total GFA of residential properties under management was approximately 1.9 million square meters and that of non-residential properties under management was approximately 2.3 million square meters,accounting for 44.7% and 55.3% of the GFA under the management of Desun Services respectively.

In terms of growth rate,from 2018 to 2020,the GFA under the management of Desun Services grew from approximately 0.5 million square meters to approximately 3.8 million square meters,representing a CAGR (compound annual growth rate) of approximately 175.7%. The contracted GFA grew from approximately 1.3 million square meters to approximately 6.8 million square meters,representing a CAGR of approximately 128.7%.

In terms of financial data,for the period 2018-2020 and the 5M2021,the revenue of Desun Services amounted to RMB 63.964 million,RMB 69.116 million,RMB 127.922 million and RMB 89.159 million,respectively,while the net profit for the same period totaled RMB 31.394 million,RMB 31.043 million,RMB 42.913 million and RMB 10.003 million,respectively.

Notably,ason December 31,2020,three of the properties under the management of Desun Servicesweremid-tohigh-endresidentialpropertiesinChengdu,aswellassevenofthe Company's contracted projects were mid- to high-end residential properties in Chengdu. Since 2018,Desun Services has gradually entered the property management market in Guangdong Province,Jiangsu Province,and Yunnan Province,providing value-added services to local property salesoffices.

The booming of the business demonstrates the synergy between Desun Services and Desun Property Group. Benefiting from this,the company has diversified its revenue structure.

According to the prospectus,the value-added service business of Desun Services made up a significant proportion. During 2018-2020 and 5M2021,the proportion of value-added service revenue was 52.9%,50.5%,52% and 48.4%,respectively.

Given the synergy between Desun Services and Desun Property Group,the company possesses a full cycle of service experience from early property planning and development to sales office services and later project operation services,which will also facilitate the company to fully tap the potential of value-added services hereafter.

In 2020,Desun Services further extended its business to commercial operation services. In the 5M2021,Desun Services generated a revenue of RMB 3.155 million from commercial operation services.

If everything goes well,with the steady growth of the property GFA under management and the increased momentum of value-added services,the performance of Desun Services is expected to maintain rapid growth.