On March 27, Kaisa Prosperity Group Co., Ltd. (hereinafter referred to as “Kaisa Prosperity”) held a performance release conference, declaring that as of December 31, 2019, Kaisa Prosperity’s operating revenue was about RMB1.262 billion, a year-on-year increase of 40.9%; adjusted net profit (excluding non-recurring items and compensation for share-based payment) about RMB171 million, a year-on-year increase of 61.5%; gross profit about RMB378 million, a year-on-year increase of 36.6%; profit attributable to shareholders RMB164 million, a dramatic increase of 203.0% from about RMB54 million in 2018, and basic earnings per share RMB1.17, a substantial year-on-year increase of 134%. (Highly successful multi-dimensional business expansion, and managed area rising substantially)

As of December 31, 2019, Kaisa Prosperity’s property management services had covered 42 cities in 13 provinces, municipalities directly under the central government and autonomous regions, with a total managed building area of 46.21 million square meters, a substantial year-on-year increase of 72.0%, in which the property area developed by independent third party property developers was about 21.45 million square meters, a substantial year-on-year increase of 402.0%. The total number of managed properties rose from 132 at the end of 2018 to 304, including 164 residential communities and 140 non-residential properties.

In 2019, Kaisa Prosperity expanded managed projects in multiple dimensions, and equity acquisition, and sustained development and delivery by controlling shareholders were the two core supporting powers of Kaisa Prosperity’s management expansion.

In addition, Kaisa Prosperity is expanding its business presence actively. In April and October 2019, it acquired 60% stake of Jiaxing Strongtree and 51% stake of Jiangsu Hengyuan respectively, to expand its business presence in the Yangtze River Delta actively.

In 2019, Kaisa Prosperity’s total managed building area grew over 16.3 million square meters by equity acquisition, its total managed building area in the Yangtze River Delta also grew substantially to about 20.9 million square meters from about 4 million square meters at the end of 2018 by over 420%, and its number of projects grew from 30 to 190.

Kaisa Prosperity’s four major business lines cover the whole property management value chain, and form an integrated service portfolio across the upper and lower parts:

1.Property management services grew by 48.8% to RMB560 million year on year, accounting for about 44.3% of annual gross revenue;

2.Pre-delivery and consulting services grew by 31.5% to RMB467 million year on year, accounting for about 37.1% of annual gross revenue;

3.Community value-added services grew by 48.7% to RMB121 million, and gross profit grew by 96.2% to RMB57.2 million year on year;

4.Intelligent solution services grew by 37.4% to RMB113 million, and gross profit grew by 60.2% to RMB34.1 million year on year.

(Investment in proactive intelligent technology applications)

Kaisa Prosperity also invests actively in the future by developing intelligent services energetically. The smart city construction service provider owned by it – Shenzhen Kaisa Jiake Intelligent Engineering Co., Ltd. (Kaisa Jiake) – is in strategic cooperation with a number of Top 100 real estate developers to create an era of full-scenario application of non-inductive passage together. As of December 31, 2019, Kaisa Jiake were performing or going to perform 217 intelligent solution service contracts with a total value of about RMB149 million, which would generate sustained and stable revenues.

In addition, a wide range of convenient community value-added services and nice living experiences are offered to proprietors, including online and offline home delivery, and business services.

Kaisa Prosperity Chairman Mr. Liao Chuanqiang said that in 2019, fuelled by policy, consumption and technology, the property management industry developed rapidly, and property management enterprises accelerated business presence and service expansion. In addition, 2019 was an important year in which property management enterprises were recognized by the capital market, and the industry’s value kept being redefined. In this year, Kaisa Prosperity expanded its scale through endogenous growth, external M&A and win-win cooperation, and maintained a transparent governance system, and a solid foundation for long-term development effectively under the supervision of its shareholders and potential investors after its listing. In face of future new development pattern of the property management industry, Kaisa Prosperity will be well prepared for future opportunities and challenges.