Colour Life's Net Profit Increases, Debt And Financial Status Optimizes
Financial and operational highlights for 2020
- The Company took the initiative to adjust its strategies for development in pursuit of a better quality scale, and the operation quality was significantly improved in 2020. The net profit recorded approximately RMB 542 million, and the profit attributable to the owners of the company was approximately RMB 502 million. The net profit margin increased by 1.2 percentage points to 15.1%,
- The Company continued to explore community value-added services, with 37.8 million registered users in Colour Life's ecosystem and 16.7 million active users of the ecosystem.
- The Company contiued to optimized its debt and capital structure with the debt-to-asset ratio decreased by 1 percentage points to 55.8% compared with the same period in 2019, and cash flow from operating activities increased by 51.6% to RMB 826 million year-on-year.
- The Directors recommended the payment of a final dividend of RMB 8.73 cent per share of common stock.
(26 March 2021, Hong Kong) The world's largest community service platform, Colour Life Services Group Co., Limited ("Colour Life" or the "Company", stock code: 1778.HK; together with its subsidiaries, collectively referred to as the "Group") is pleased to announce the Group's audited annual results for 2020 (the "Period").
- Steady growth in performance; further optimization with debt structure and cash flow
The Group's annual revenue from main business recorded RMB 3,596 million in 2020. The Group enhanced profitability by streamlining structure, reducing costs, increasing efficiency, and optimizing debt. By 31 December, 2020, Colour Life's net profit was RMB 542 million, an increase of 1.2% year-on-year, and the net profit margin increased by 1.2 percentage points year-on-year to 15.1%. The profit attributable to the owners of the company was RMB 502 million, an increase of 0.6% year-on-year.
Colour Life strived to optimize its debt and operating capital structure. The debt-to-asset ratio decreased by 1 percentage points to 55.8% year-on-year, and cash flow from operating activities increased by 51.6 % to RMB 826 million year-on-year.
- Building an efficient management system in pursuit of quality scale
In the past year or so, the Group conducted a comprehensive review of its business, adjusted and integrated departments and organizations, streamlined and optimized the management structure, promoted unified management to generate a central pillar of strength for the Group, which was conducive to improving resource utilization, giving full play to scale effects and cost advantages. Colour Life reform remuneration and incentive mechanisms to mobilize employees' enthusiasm for business expansion, formulated and differentiated work and management standards for various business types and different property fee standards, and created an efficient governance system and business management system through series of adjustments and optimizations.
The Group adjusted its strategies for development to pursue growth in quality scale. By 31 December, 2020, the Total Contracted GFA had reached 563.4 million square meters, and the number of corresponding communities had reached 2841. Among them, by 31 December, 2020, the area of the Group's revenue-bearing GFA had reached 361.0 million square meters. The Group's management projects cover 279 cities in China
- Steady growth of ecosystem users and wide application of innovative technology
With the promotion of more convenient ports such as WeChat applet, the number of users logging onto Caizhiyun (彩之云) through WeChat has increased steadily. By 31 December 2020, the number of registered users in Colour Life's ecosystem surged to about 37.8 million, among which, the number of active users of the ecosystem increased to 16.7 million, laying a user foundation for the future development of value-added services.
In addition to extending the online platform or corresponding technical guidance to other property management companies, the Group continued to expand the scopes under which its online platform technology can be applied. For instance, the Group developed "Changsha Gardener(星城园丁)" APP for the Changsha City Public Security Bureau to support the "Mass Prevention and Treatment (群防群治)" of the city. By 31 December 2020, the number of registered users of this APP reached 6.1 million. Take service orders of patrol-controlling, since the launch of the APP on 28 March, 2019 till 31 December, 2020, a total of 3.9 million person-times took part in patrol; the platform totally dealt with 1,080,900 reports of traffic violations and 2,700 reports of drug abuse, making it an efficient window for urban residents to participate in the construction of civilized cities.
- Recognized efforts in pandemic prevention pave way for expansion of value-added services
Anti-pandemic was an important work theme for property companies in 2020. Colour Life has not only withstood the test, but its outstanding performance in the fight against the pandemic has been recognized by the customers and commended by governments.
The spread of mass pandemic was under control in communities we served. Moreover, the infection rate of the property owners of the communities in Wuhan under the Group's management was far below the city's average infection rate; Colour Life's efforts were recognized, with 75% of its projects being commended by the government or praised by the property owners.
On 10 March, General Secretary Xi Jinping paid a special visit to Donghu Xincheng residential communities in Wuhan. The community is one of the 56 communities served by Colour Life in Wuhan and was awarded as "Pandemic-free Community" for its exceptional performance in pandemic prevention and control.
During the pandemic, the bond between the property management staffs and the property owners deepened with mutual trust and affectionate communication. The increased contacts between the staffs of the property management units and the property owners also enabled the staffs to learn the various needs of the property owners, which can drive the development of value-added services in the future.
- Leveraging favourable policies to develop value-added services through humanity + science and technology
The State Council proposed in the Report on the Work of the Government in 2020 to steadily advance new urbanization, vigorously renovate urban residential communities, and establish sound community management and service mechanisms. In January this year, 10 departments including the Ministry of Housing and Urban-Rural Development of the People's Republic of China (MOHURD) jointly issued the "Notice on Strengthening and Improving Residential Property Management", which put forward requirements for improving residential property management and its efficiency in terms of social governance, governance structure of the Homeowners Association among other aspects. This is in line with Colour Life's business development thinking. While we value customer satisfaction towards our basic property management services as well as the promotion of neighbourhood relationship, we also never slacken to explore online businesses and value-added services.
Colour Life and JD.com jointly promoted the implementation of a pilot business of smart parcel lockers in 2020. This new partnership of commission generation through efficient turnover of lockers will significantly drive up profitability compared to the fixed rental fees for the community space paid by other smart parcel locker operators. In the meantime, property management staffs of the Group assisting in order delivery offers additional opportunities for communication between staffs and the property owners, which is conducive to discovering the needs of the owners and developing new businesses. The smart parcel lockers business is only one example in exploring community value-added services. On this basis, the Group will continue to expand other types of community services, so that property services can truly involve into the daily life of property owners.
Colour Life attached great importance to the satisfaction of property owners and endeavoured to provide diversified product portfolios while thawing the human indifference among the residents by promoting various interaction among all home owners in the community. In 2020, the Group held more than 8,000 events across the country, covering traditional themed festivals such as Spring Festival, Lantern Festival, Dragon Boat Festival, Chinese Valentine's Day, Mid-Autumn Festival, etc., as well as innovative themed activities like oriental boy scouts, street-stall economic activities, college entrance examination supporting activities, and oriental neighbour festival, etc., totalling 550,000 person-times offline participants and 2 million person-times online participants.
Based on the in-depth understanding of the community, Colour Life will continue to discover, explore, and enhance the value of community business, and build a beautiful community supported by the three pillars of humanity, technology and harmony.
- Multi-dimensional efforts to support future growth
Looking ahead, Mr. PAN Jun, chairman of Colour Life Services Group Co., Limited remarked: In the past year, the property industry has been well recognised by the society, supported by the government with relevant policies, while ushering in a wave of capital-seeking. It is fair to say that under the influence of external environment and internal factors, the property industry is undergoing tremendous changes, which makes it all the more important for us to stay calm, apply ourselves to the present and contemplate our future.
The test posed by the COVID-19 pandemic and the pursuit of capital have brought challenges and opportunities to property enterprises. The multi-dimensional support from the government, including economic subsidies and policy support, is conducive to the future development of the property industry and enterprises.
Over the past year, Colour Life has optimized its organizational structure, reformed its remuneration and incentive mechanisms, refined its fee-based service standards, and strived to create a flat, efficient and smooth governance system and business management system to empower various businesses in multiple dimensions. Looking ahead, Colour Life will take customer satisfaction as its foundation to pursue growth in quality scale and customer satisfaction. The Group will give full play to its own advantages and support growth in multiple dimensions through benchmarking projects, multi-brand strategies, remuneration reforms, incentive mechanisms, etc., so as to achieve growth in scale, stock income, incremental speed, and eventually develop at a faster pace.
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About Colour Life Services Group Co., Limited
Headquartered in Shenzhen, Colour Life Services Group Co., Limited is a leading technology-based and comprehensive service operator of community platform in China. In recent years, with a business strategy of standardization, centralization and automation, Colour Life has achieved rapid growth in the service area by transforming itself into a platform-based enterprise, providing community services that balance cost and quality, so as to maintain its leading position in China's property management industry. In the meantime, Colour Life has always specialized in broadening the scope of the services of its online platforms to serve the diverse needs of the communities and establishing offline and online service platforms through the internet, thus connecting efficiently the community residents with various commodity and service suppliers and providing customers with the best residential service experience. The move will help to build an ecosystem of community-based services and thus to maintain the momentum of the Group's development.
Website of Colour Life Services Group Co., Limited: http://gw.colourlife.com/
This press release was issued by Zhixin Investor Relations Consultant Limited on behalf of Colour Life Services Group Co., Limited.
For further information, please contact:
Zhixin Investor Relations Consultant Limited
Ms. Zhu Xuezi
Tel：0755-8277 0579
.