lifelong caring (3319.hk) a-living services co.,...

(3319.HK)

A-Living Services Co., Ltd

FY2019 Annual Results Presentation

Lifelong Caring

Results

Highlights

01

Results Highlights

Financial performance

hit record highLeapfrogging growth of scale

Centered on

operation management

Seized industry consolidation

opportunity

Optimized revenue structure with

comprehensive business portfolioWidely recognized

• Revenue RMB5,127.3 mn +51.8%

• Gross profit RMB1,882.9 mn +46.0%

• Net profit RMB1,291.6 mn +59.3%

• Profit attributable

to ShareholdersRMB1,230.8 mn +53.7%

• Proposed annual

dividend per

shareRMB0.45 +50.0%

• Received continued support from shareholders,

actively carried out third-party expansion and

completed high-quality M&A deals to realize the

robust growth in the scale of properties under

management

• Total contracted GFA: 356mn sq.m.

• Total GFA under management: 234mn sq.m.

• Total GFA under management (Incl. CMIG PM &

New CMIG PM): > 500mn sq.m.*

• Ranked 7th out of “2019 Top 100 Property

Management Companies in the PRC”, hitting a

record high

• Included in the HSCI, eligible stocks for Shenzhen-

Hong Kong Stock Connect and MSCI China Index,

mirrors a strong recognition from capital market

• Strengthened brand reputation with 9 brands

under its umbrella, which are ranked in the Top

100 nationwide

• Acquired 60% equity interest in CMIG PM and

New CMIG PM, recording the biggest-ever M&A

deal in the industry with a remarkable growth in

scale

• Targeting on high-quality companies, completed

the acquisitions of Qingdao Huaren, Harbin

Jingyang, Guangzhou Yuehua and Lanzhou

Chengguan

• Entered into economically developed regions and

niche markets to increase market share

• Continuously optimized revenue structure. Property mgt

services accounted for 55.2% of the revenue; community

VAS accounted for 9.5%; sales center property mgt

services accounted for 13.7% and other extended VAS

accounted for 21.6% of the revenue

• Three business lines and four segments formed synergetic

development with whole industry chain layout and

comprehensive business portfolio. Residential property

accounted for 58.9% of the GFA under management, public

buildings accounted for 35.1% and commercial buildings

and complex accounted for 5.5%

• Entered into public buildings and other niche markets with

high entry barriers

• Put great effort in the improvement of management

efficiency, cash flow management, optimization of

group structure, implementation of stringent cost

control and timely collection of receivables

3

• Net profit margin 25.2% +1.2p.p.

• Administrative expense

(% of revenue)5.8% -3.1p.p

• Collection rate of

management fee94.9%

Remained

stable

• Operating cash inflowRMB

1,600.1 mn+81.2%

*Incl. subsidiaries and associates of CMIG PM and New CMIG PM

Financial

Summary

02

RMB ’000 2019 % of revenue 2018 % of revenue Change

Revenue 5,127,293 3,376,749 +51.8%

Cost of sales (3,244,433) (63.3%) (2,086,808) (61.8%) +55.5%

Gross profit 1,882,860 1,289,941 +46.0%

Gross profit margin 36.7% 38.2% (1.5p.p.)

Selling and marketing

expenses(43,103) （0.8%） (45,951) (1.4%) (6.3%)

Administrative

expenses(294,976) （5.8%） (302,246) (8.9%) (2.4%)

Net profit 1,291,588 810,879 +59.3%

Net profit margin 25.2% 24.0% +1.2p.p.

Profit attributable to

the Shareholders of

the Company1,230,764 801,045 +53.7%

Earnings per share

(RMB/ share)0.92 0.62 +48.4%

Financial Highlights

5

1,6251,463

289

2,830

1,812

485

0

500

1,000

1,500

2,000

2,500

3,000

3,500

Property Mgt Services Extended VAS Community VAS

2018 2019

Detailed Figures of Three Business Lines

2018 2019

Revenue and Growth Rate (by Business Lines) Gross Profit and Gross Profit Margin (by Business Lines)

Breakdown of Revenue by Business Lines

6

(RMB million) (RMB million)

788b

675a702a

1,111b

a Sales Center Property Mgt Services

b Other Extended VAS

445

698

147

715 903

264

27.4%47.7% 50.9%

25.3%

49.8%54.4%

0

500

1,000

1,500

Property MgtServices

Extended VAS Community VAS

2018 GP 2019 GP 2018 GP Margin 2019 GP Margin

48.1%

20.0%

23.3%

8.6%

Property Mgt Services

Sales Center Property Mgt Services

Other Extended VAS

Community VAS

55.2%

13.7%

21.6%

9.5%

Other Financial Figures

7

RMB '000 31/12/2019 31/12/2018 Change

Total assets 9,387,515 7,296,549 +28.7%

Total liabilities 2,881,830 1,786,512 +61.3%

Goodwill 1,370,928 1,045,362 +31.1%

Trade and other receivables 2,189,347 1,164,913 +87.9%

Trade and other payables 1,756,980 1,192,556 +47.3%

Operating cash flow* 1,600,121 883,165 +81.2%

Cash and cash equivalents 4,207,260 4,807,993 (12.5%)

*For the year ended 31 Dec

Business

Review

03

138.1

85.248.2

4.7

234.0

171.6

53.8 8.6

0

100

200

300

400

500

31/12/2018 31/12/2019

By Geographical Coverage

Third-party (Incl. M&A) Agile GreenlandTotal GFA Under Mgt

(% of GFA)

GFA Under Management Contracted GFA （million sq.m）

Breakdown of GFA Under Management

(73.3%) (23.0%) (3.7%)(61.7%) (34.9%) (3.4%)Agile GreenlandTotal Contracted GFA

(21.6%) (11.3%)(30.6%) (9.6%)(% of contracted GFA)

Third-party (Incl. M&A)

(67.1%)(59.8%)

Leapfrogging Growth in Scale

9

Property management services recorded a revenue of RMB2,829.7 mn, up 74.2% y-o-y, accounting for

55.2% of the total revenue, with a GP margin of 25.3%, decreased 2.1p.p. y-o-y

（million sq.m）

2019

M&A

66.8

229.8

137.470.4

22.0

356.2

239.1

77.140.1

0

100

200

300

400

500

600

31/12/2018 31/12/2019

2019

M&A

67.6

58.9%

35.1%

5.5%

0.5%

Residential Public buildings Commercial buildings and complex Others

By Portfolio

28.0%

19.3%

10.8%6.0%

5.5%

30.4%

Greater Bay Area Yangtze River Delta city cluster

Lanzhou-Xining city cluster Shandong Peninsula

Harbin-Changchun city cluster Others

Over 600 mn*Over 500 mn*


Third-party Expansion Stepped Up

Endogenous Growth in Full Swing

10

• Newly obtained contracted GFA from

two shareholders amounted to

24.73mn sq.m. in 2019


Greenland Holdings was 18.05mn

sq.m.


third-party developers (excl. M&A)

amounted to 32.74mn sq.m. in 2019

• As of 31 Dec 2019, contracted GFA of

third-party projects (incl. M&A) accounted

for 67.1% of total contracted GFA

Support from shareholders

Endogenous growth

in full swing

Rapid growth of scale

Significant improvement of

expansion quality

Strategic cooperation

Full-cycle services

Extension of business

portfolio and

management dimension

Integration of market resources

Launch of customized services

Average unit fee of newly

obtained third-party projects

increased by 13.6% y-o-y*

Achieved improvement in

quantity and quality of

projects to realize high-

quality growth

Attached importance to

strategic cooperation with

key customers

Provided integrated VAS

targeting the consumption

upgrade needs in the

second- and third-tier cities

Made breakthrough in non-

residential segments and

formed differentiated

development among

diversified business portfolios

Extended services beyond

communities and developed

integrated management

service and products

Brand influence boosted third-

party expansion

Establishment of market

expansion resources platform

Leveraged the information and

resources on centralized

procurement platform and 400

Hotline Call Center to provide

industry information and VAS

toolkit

*excluding M&A

Seized the Opportunity for Industry Consolidation by

Making Best Use of Funds Raised

Qingdao Huaren (Listed company on

the NEEQ)

Acquired 89.6643% shares

Portfolio：management of public buildings,

office buildings, and residential buildings

Nanjing Zizhu (One of the Top 100

property management companies in China)

Acquired 51% equity interest

Portfolio：management of public buildings and

residential buildings

Lanzhou Chengguan (one of the Top

100 property management companies in

China)


Portfolio：management of municipal, office

buildings, residential, educational properties

Harbin Jingyang (A market leader

in Heilongjiang province)


Portfolio：management of residential，commercial, office buildings

Guangzhou Yuehua (one of the Top 100

property management companies in China)


Portfolio：management of public buildings

11

Further expanded business

scale and coverage, optimized

the nationwide layout and

comprehensive business

portfolio

Aimed at key potential regions

and business portfolio to

improve influence and

competitiveness

Acquired leading companies in

different regions to enter into

niche markets and fill the gaps

of geographic and business

portfolio layout

Integration Full

Coverage

Wide

Layout

M&A is one of the key drivers of scale

expansion. By seizing the opportunity of

industry consolidation, the total GFA under

management of acquired companies

exceeded 390 mn sq.m.*

Quickly consolidated its leading

position in Yangtze River Delta

Region, Shandong Peninsula,

Harbin-Changchun city cluster and

Lanzhou-Xining city cluster.

Acquired companies have a

comprehensive portfolio coverage,

including residential, public

buildings, commercial and office

buildings and other niche markets

CMIG PM and New CMIG PM(8 brands ranked among the Top 100 in China)

Acquired 60% equity interest in Sep 2019

Portfolio：comprehensive business portfolio incl. residential properties,

public buildings and office buildings


Remarkable growth of

scale

Scale

RegionBusiness

portfolioBrandVAS

Joined Forces with CMIG PM and New CMIG PM

12

Strengthened presence in

economically developed areas and

filled the gaps in Shanghai, Shandong

Peninsula, Sichuan and Chongqing

Strengthened existing advantages and

increased market share to become a

leading player in different regions and

to further enlarge the region-centered

economies of scale effect

The acquired companies have a balanced

and comprehensive business portfolio,

covering public buildings, residential

buildings, commercial and office buildings,

industrial parks, etc.

Further consolidated market shares and

influence in the segments with high entry

barriers, such as public buildings and

commercial and office buildings, through M&A

Upon completion of the acquisition,

the total GFA under management will

exceed 500 million sq.m. and

number of projects under

management will exceed 3,000*

Business scale and profitability will be

significantly improved, revenue

structure will be further optimized to

consolidate A-Living’s leading

position in the industry

Provided management service to mid- to

high-end properties with 8 nationwide Top

100 brands and other leading brands in the

niche markets under CIMG PM and new

CMIG PM. Synergies among brands will be

witnessed in the future

Brand strength was improved as CMIG PM

is managing numerous city landmark

projects and has rich experience in

managing large-scale projects and

international conferences

A-Living will become one of the biggest

service platforms for community, public

buildings and commercial and office

buildings

A-Living can apply its experience in

community VAS and its matured operation

models to the residential projects under

CMIG PM and New CMIG PM

The experience of VAS to non-residential

properties can be applied to existing and

newly obtained public buildings of the Group

The acquisition of 60% equity interest in CMIG PM and New CMIG PM

Recorded the largest M&A deal in the industry to date, achieved remarkable growth of scale

Comprehensive

business portfolioGreat potential in VAS Increasing brand influenceOptimized nationwide coverage


Gradual Price Hike to Reflect High-Quality Service

13

• Took first step into price hike in large-scale projects:

provided valuable experience for price increase for other

projects, consolidated collection rate and improved

service quality in line with the price increase

• Form a normalization mechanism for price hike:

provided quality service with reasonable charges to

create long-term economic and brand benefits

Achieved breakthroughs in price hike for

residential buildings

Managed to increase the management fee of

several projects

Made breakthrough in key large-scale projects

Average management fee increase: 30%

To form a normalized price hike mechanism

In 2019, Beijing, Shenzhen, Guangdong,

Shaanxi, Qingdao, Hunan and other places

have issued industry guidance, including

improving the service quality of the whole

industry, standardizing the pricing

mechanism, and relaxing restrictions in the

filing process

In Apr 2019, Shenzhen raised the

government-guided property

management fee by 40-70%

In Nov 2019, Hefei raised the



In Dec 2019, Dongguan raised the



Favorable policies Flexible price hike mechanism for

public buildings

Proportion of expired contacts in 2019: 35.27%

Proportion of expired contracts that

successfully increased price in renewal: 50%+

Average price increase: 4.6%

• High entry barrier & high renewal rate:

Requirements for qualification and experience

make a higher industry entry barrier, while

renewal rate of public buildings maintains at a

high level

• Timely payment & matured price hike

mechanism: Collection rate of public

buildings is greater than 95%, which is

secured by independent government budget

planning. Flexible pricing and matured price

hike mechanism were formed benefiting from

contracts with single property owner

Sanshui Agile Garden Foshan Yongjing Haoyuan Zhongshan Metro Agile

Agile Garden Guangzhou

GFA: 1.26mn sq.m.

No. of households: 11,908

Est. additional revenue from annual

service contract: RMB12.08 million

Note: contributions from CMIG PM and New CMIG PM have been taken into account

Community VAS-Continuous Growth

Community VAS recorded a revenue of RMB485.3mn, up 68.1% y-o-y, accounting for 9.5% of the total

revenue, with a GP margin of 54.4%, up 3.5p.p. y-o-y

Clubhouse

operation

Second-hand

houses

Rental and leasing

services

Parking lot operation

Community

advertisement

Long- and short-term

property leasing

Xiaoya Repairing

Xiaoya Gardening

Xiaoya Cleaning

Xiaoya Agent

Xiaoya Parcel Pickup

Lexiang Fresh Food

Lexiang Orchard

Lexiang Chateaus

Lexiang Granary

Home

improvement

Turnkey furnishing

House appliances

House decoration

House renovation

• Devoted to homecare services and introduced diversified

high-quality and professional suppliers to implement

platform cooperation；• Introduced business division partnership scheme in

living services to stimulate the entrepreneurial motivation

of professional talents and build an incentive mechanism

• Developed 4 sub-brands under Lexianghui, introduced

high-quality products and ensured the quality and safety

of entire production process of such products and

developed various customized products

• Established a standardized operating system to put

the home improvement business into full operation for the

newly entered projects;

• Allied with nearly 30 well-known brands in the home

improvement related industries;

• Enriched marketing initiatives by carrying out

construction site open day, owner meetings, offsite

marketing, etc.

• Developed group purchase of home appliances,

house renovations, etc. in existing projects

• Fully utilized the idle venues and introduced various

community business. The vacancy rate of clubhouses

decreased to 8%

• Promoted the community marketing innitiatives and

promotions to improve efficiency and revenue

• Integrated advertising resources to establish an

integrated community advertising and communication

channel, broaden community advertising types, and

increase the value of idle resources

14

Community asset

management

Community living

services

Community VAS-Driver for Future Growth

Innovate community

commercial products

Promote business division

partnership scheme

Strengthen intelligent

community services

Create synergies among

acquired companies

15

Create a 360-degree comprehensive community services platform through

platformization strategy and asset-light operation

Establish an efficient, mature and easily

replicable tenancy recruitment and operation

model, while combining community culture

and commercial activities to form a

sustainable VAS business model

Accelerate the penetration of such model into

the projects from third-party acquired

companies to improve resource utilization rate

Build Lexianghui system which comprises

a well-established supply chain,

diversified products and rich cooperation

opportunities. Direct user traffic attracted

by high-frequency, household necessities

to low-frequency, high-priced products in

an effort to secure profitability

Promote the model of sharing

cooperation platform and build a

comprehensive living services platform to

meet the lifetime full-cycle needs of each

family

Strive to build a community home

improvement brand and realize large-scale

development. Promote home improvement

products at sales center to make full use of

resources

Introduce exhibition hall/VR real-life

experience to realize one-click quotation

and improve overall service experience

Community asset

management

Community living

services

Home

improvement

Concept of platformization

Comprehensive innovation

• Explore community VAS platform with

innovative concept

• Cultivate new community VAS services

Community new retail

Community leasing and sales

Community nursery

Community insurance, etc.

Extended VAS

Provision of integrated marketing services for Agile and third-party property developers

• Product positioning and marketing consulting

• Property sales agency

Laid a foundation and outlined advantages for undertaking subsequent property management services

Sales Agency

Provision of sales center management services

for property developers, including

• Concierge and reception

• Security services

• Site maintenance

• Display equipment maintenance

Sales Center

Property

Management

Enhanced the synergies among property

developer, property management companies

and property owners

• Established engineering quality andoptimized evaluation system

• Carried out inspection on new public area

Home inspection

and early stage

involvement

Provision of closed-

loop, full-cycle

services to property

developers

16

Extended value-added services generated a revenue of RMB1,812.3 mn, up 23.9% y-o-y,

accounting for 35.3% of the total revenue, with a GP margin of 49.8%, up 2.1p.p. y-o-y

Operation

Review

04

Improved Operation Management from Four Major Aspects

18

Business

segmentsRegional offices &

acquired companies

Functional

division

Coordination of

resourcesOperating entities

Supporting

operation

Vertical

layers of

KPI

Quality

• Operating

income

• Net profit

Scale EfficiencyCapital

Operating

efficiency

• All-dimension

cost controlCost control

• Third-party

satisfaction rate

• Key project

satisfaction rate

Quality

Control

• Revenue from

newly obtained

third-party

annual contracts

• GFA from newly

obtained third-

party projects

• Cost control

over expansion

Market

Expansion

• Collection rate and

overdue clearing rate

• Sales receivables

• Net operating cash

flow

Cash collection

and receivables

• Compliance

• Risk Management

• Responsibility for

security

Risk

Management

Horizontally related

Acquired Companies Achieved Rapid Growth

Through Post-acquisition Empowerment

19

Acquired companies achieved

excellent performance in 2019,

exceeding annual target

Revenue

20%+Net Profit

25%+

Focus on quality

and management

Collaborative

development

Improvement of

business efficiency

• Continuously expanded

scale by leveraging the

brand reputation and

resource advantages

brought by shareholder

• Complemented each other’s

advantages to realize the

cross-region and multi-

portfolio development

• Consolidated market

expansion mechanism with

a shared expansion channel

to create synergies

• Promoted optimization of

structure and improved

management efficiency

• Comprehensive integration

of budget system, fee

collection system, post-

aquisiyion management

database leveraging the

power of big data

• Empowered the acquired

companies to improve

quality, enhance brand

reputation and build

benchmark projects

• Integration of assessment

system, salary scheme,

coupled with incentive

scheme to unleash potential

of the acquired companies

• Centralized procurement

and unified supplier system

• Implemented centralized

cash flow management

through comprehensive

integration

• Assisted the companies in

needs in increasing the

collection rate

Integration of

teams

• Long-term interests

binding, appointing

executives and elite

cultivation

• Strengthened mutual

communication, exported

corporate value and

strengthened cultural

integration and value

recognition

Note: Statistics above are unaudited

Optimization of Management and Improvement of Efficiency

• Improve per capita efficiency and

arranged proper outsourcing and multi-

function positions to take stringent

control over labor cost

• Optimize energy facilities of projects to

reduce energy cost

• Adopt centralized procurement platform

to reduce procurement cost

• Integrate property service centers to

reduce management cost

• Determined expenditure budget based

on income to maintain stringent

control over management cost

• Optimized the Group’s structure and

set up four major business segments

• Combined offices in different cities

into seven reginal companies

• Gradually improve the management

efficiency of the acquired companies

20

Flexible

recruitment

Outsourcing &

Employment pilot platform

Multi-function

with incentive

mechanism

TechnologyFully adoption of

information platform

Cooperation

with colleges

Regional Platform

Flat management structure

Centralized service model

An elite team

Administrative expenses

accounted for 5.8%of the revenue, representing a

decrease of 3.1p.p. y-o-y

Enhancement of Collection Rate and

Stringent Management of Cash Flow

21

收缴率

Overall financial position

Revenue & cost structure

Net cash inflow/net profit

Regular cash statement

Cash balance

Operating cash flow

Ranking by region

Weekly cash flow report

By project, company and region

Break down the items under revenue

and cost

Real-time reporting

Analysis of

cash flow statement

Managed the cash flow in

accordance with standards

Enhanced collection rate

in full force

91.4%94.9%

2019.06.30 2019.12.31

Staffs in different regions and projects worked hard to guarantee

service quality, communicated frequently and adopted multiple

methods to enhance the collection rate of property management

fee

• Disassembled task and monthly assessment

• Led by manager to secured collection rate in

full force

• Uniform standard and fixed job responsibilities

• Connected every work step

• Goal-oriented approach assisted with

process monitoring

• Secured collection fee by legal support

• Adoption of prepayment approach

• Brought collection task into daily work

Significant improvement in cash flow management

Operating cash inflow for FY2019: RMB1,600.1 mn

Collection rate of residential projects in 2019

*Excluding M&A

Efficient Operation Secured by Information System

22

A-Living

Informatization

Management Platform

Finance

Cash collection

Financial

statement

Cost control

Human

Resources and

Administration

Employee

information

Accountability

process

Asset

management

Organization

strucuture

Contract

management

Operation

Complaints

handling

Equipment

monitoring

Parking

management

Procurement

platform

Community

Commercial

Services

Commodity

management

Marketing

management

Order

management

Commission

management

Ticket

management

Market

Expansion

Project pool

Qualification

assessment

Contract follow-

up system,

Budget control

Supplier

management

Electronic

invoice

Customer

management

Customer

Center

Data

Center

Maintained High-Quality of Services

23

Ranked 7th out of “2019 Top 100 Property

Management Companies in China”

Ranked 7th out of “2019 Top 500 Property

Management Companies in terms of

Comprehensive Strength in China”

MSCI ESG “A” Rating

2019 Top 50 Most Valuable Brand of Property

Management Service Enterprise

2019 Golden Hong Kong Stock Awards

Earned brand reputation with high-

quality of services

Strived to improve satisfaction rate

Awards received from authorities

Recognitions from capital market

Overall satisfaction rate in 2019

90.1%70.5%

81.5%90.5%

73.1%85.5%

0%

50%

100%

Industry Benchmark

2018 2019

(Source: China Index Academy)

A constituent of the

Hang Seng Composite

Index (Small-Cap)

Eligible stocks

for Shenzhen-

Hong Kong

Stock Connect

A constituent of

MSCI China Index• Made timely corrections at all levels through 400 Hotline

Call Center and EBA remote monitoring center

• Improved efficiency and controlled service quality in an

accurate, timely and efficient manner

• Elaborated management standards and control process,

implemented quality control into each project to achieve

high satisfaction rate

• Further form a comprehensive management system,

continuously improve and optimize the standardized quality

management system in the future, so that the Group can

adapt to evolving needs and changes with increasing scale

Communicated with over a million of property owners

and achieved a satisfaction rate of 97.48% to problem solving

*excluding M&A

Response to Novel Coronavirus Outbreak –

Timely Response and Demonstrating Value of Service

24

Timely response

Strict implementation

Upgrade of service

quality

Social responsibility

Comprehensive

arrangement

Collaborative

cooperation

Considerate services

• Carried out prevention and control measures in different

regions and projects

• Stand in the frontline. Management team conducted on-site

inspection and establish 24h-reporting mechanism from

regional executives and project managers

• Responded quickly with meetings at group level

• Initiated contingency plan and set up a dedicated team

• Centralized procurement and allocation of pandemic

prevention materials

• Issued work guidelines and distributed them to all

regions and projects

• Collaborated with seven regional offices, subsidiaries and

joint ventures to build a nationwide prevention network

covering all business portfolios

• Promoted the standardized operation, shared information

and allocated of resources

• Took care of employees’ health and ensured logistic

arrangement and security

• Actively took social responsibility and provided epidemic

prevention materials to Wuhan to support other property

management companies as well

• Led the preparation of the prevention and control guideline

issued by China Property Management Association，demonstrating its position as industry leader under the

pandemic outbreak

• Safeguarded the communities with lockdown management

• Upgraded disinfection measures and attached the

importance of prevention to safeguard the health of

property owners

• Upgraded service quality, took care of property owners in

every detail and received recognition

• Solved the property owners’ difficulties in purchasing

supplies by providing considerate VAS

• Lexianghui resumed fresh food delivery in advance and

launched home disinfection service

Standing in the frontline of pandemic prevention

Safeguarding the communities and protect

property owners from the outbreak

Demonstrating the value of property management

Future

Outlook

05

Attach Equal Importance to Growth and Management

26

High-quality and sustainable

development

Attach importance to management

and risk control

Focus on core businesses with

innovative concept

Strive for stable growth in

revenue and profitability

$

Strengthen corporate governance via

multiple approaches

Control operating risks from different

dimensions

Endogenous

Development

Expansion

Innovation

Explore

existing

projects

Expand

actively in

market

• Increase income and decrease expenditure,

and improve operating efficiency

• Gradual price hike to reflect high-quality

service

• Explore potential of community value-added

services

Cultivate new

growth drivers

• Put effort in third-party expansion in

comprehensive business portfolio

• Actively participate in mixed-ownership

reform of SOEs

• Adopt the concept of platformization and

innovate operation model

• Extend industry chain and enter into new

business segment

Performance Boosters: Endogenous Development,

Expansion and Innovation

Endogenous

Development Innovation

Expansion

27

Endogenous development leveraging big platform

Synergetic development of comprehensive business portfolio

Innovation-driven development

Internal Management: Informatization, Risk Control and

KPI Evaluation

28

Informatization KPI EvaluationRisk Control

Effectively manage

operating risks

Full coverage of

informatization system

• Cover projects obtained from

shareholders, third-party and

M&A

• Real-time monitor of operation,

finance position and cash flow

of each project

• Support business analysis and

decision-making

Ensure accomplishment

through assessment• Improve the risk indicator

control system to ensure its

effective operation

• Form a daily risk event

reporting mechanism

• Prevent risks in advance and

follow up with solution in a

timely manner

• Cover all major operating

indicators

• Implement incentive mechanism

with distinct rewards and penalties

• Target-oriented approach coupled

with process monitoring

Capital + Talent + Technology: Join Forces to Promote Rapid Growth

Talent

• Set up multi-level incentive

mechanism including share

incentives etc.

• Stimulate team motivation

• Recruit and retain talents

Capital

• Integrate resources to create a

platform for comprehensive business

portfolio and whole industry chain

• Assist each segment in consolidating

its leading position in the industry

Technology

• Improve lean management level by

optimizing the information system

• Build smart communities and

improve service experience by

adopting 5G, blockchain and other

new technologies

29

Capital + Talent + Technology-intensive

Modern Property Management Company

Lifelong Caring

A-Living Services Co., LTD.

lifelong caring (3319.hk) a-living services co.,...

Documents