(26 August 2021, Hong Kong) 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 interim results for the six months ended 30 June, 2021 (the "Period"). (Unless otherwise specified, all amount below are RMB)

 

Business Review

During the Period, the business of Colour Life continued to develop steadily. For the six months ended 30 June, 2021, the Group's annual revenue from main business recorded approximately RMB1,792.2 million, and the profit attributable to the owners of the company was approximately RMB250.2 million, an increase of approximately 5.8% year-on-year.

 

As of 30 June, 2021, the total interest-bearing debt balance of the Group was approximately RMB2,336.8 million (31 December, 2020: approximately RMB2,529.6 million), a decrease of approximately 7.6%.

 

During the Period, net cash flow from operating activities recorded approximately RMB538.6 million, a year-on-year increase of approximately 141.9%, which fully reflects the improvement of operating efficiency.

The Group focused on driving its organic growth through reputation and branding. With our outstanding property management experience and third-party expansion capabilities, as at 30 June, 2021, the Total Contracted GFA had reached 565 million square meters, with the number of communities reaching 2,817, covering 279 cities across the country and providing services for more than 10 million residents. Specifically, by 30 June, 2021, the area of the Group's revenue-bearing GFA had reached 359  million square meters.

 

Follow Policy Guidelines And Improving Service Quality

As the property manager and service provider of the communities, property management companies play an increasingly important role in community governance and guaranteeing the daily life of residents. The expansion of service scope also brings about constant change in expectations and tests for these companies. The property management companies are faced with greater challenges and shoulder more important responsibilities. In particular, the experience gained from this epidemic fight gave us a clear picture that, to consolidate basic property management services, improve community service quality, promote epidemic prevention and quality services, support residents to weather out the difficult time and cultivate core corporate value are of vital importance for a community service enterprise, and are fundamental for the development of value-added services.

 

Under the strategy of "consolidating basic businesses and adhering to original mission", the Group will continue to explore basic property management services, and management details and service awareness have become core indicators for the Group. In addition, the Group has achieved the transformation from property management to resident service through an up-to-bottom approach. Quality enhancement plans and property management service standards are formulated according to project conditions and property service fee levels. The Group has established a multi-dimension strategy through the operation of multiple brands, synergetic cooperation among all regional branches and comprehensive layout, with an aim of satisfying servicing needs from different projects in different cities with different revenue level.

 

In 2021, the Group continued to make great efforts to improve service quality, and came up with the key approaches of "facility improvement, prompt response, customised services and effective management". As to the approach of "facility improvement", the Group pushed forward the "facility improvement" plan and completed improvement work on a total of 415 projects during the first half of the year by making improvements to the issues raised by the clients such as the external walls, fire-fighting conditions, lifts and other aspects of the projects. As to the approach of "prompt response", the Group made prompt response to clients' concerns, addressed physical hardware quality issues and software service requests by the clients. As to the approach of "customised services", the Group provided one-to-one customised services for the clients via corporate WeChat account, making persistent efforts to foster customer loyalty. As to the approach of "effective management", leveraging on the three dimensional management system, the Group carefully listened to the residents' concerns and expectations. Customers can communicate their concerns to the management office through any means such as butler, telephone, service center or by informing any service staff, enjoying full tracking service.

 

Building Caring Communities And Promoting Application Of Intelligent Technology

While actively expanding the service coverage, the Group strives to build an upgraded community service platform to meet the daily needs of residents and provide them with high-quality and efficient property management services. Additionally, the Group explores consumption scenarios, product innovation and business format on the soil of a caring community so as to provide residents with all kinds of additional services, so that property services can truly involve into the daily life of property residents.

 

Upholding the core value of "building harmonious communities", and in order to enrich the community life of the residents, Colour Life completed 10 nationwide community activities during the first half of the year, attracting an average number of over 2 million residents to participate in online and offline interaction activities for each single events. For example, during the Spring Festival, Colour Life organised 1,416 activities across the country, with over 2,000 resident group accounts for online interaction, attracting 2 million people to participate in the online annual parties. Colour Life held the East Blink Day which lasted for two months from May to June and attracted over 2 million residents from more than 1,000 communities across country, which recorded over 2.5 million online interaction and TikTok viewing, offering a good opportunity to promote neighbourhood relationship.

 

In terms of smart property management, since its inception, the Group has creatively put forward the slogan of empowering property by advancing science and technology, and has developed and operated the world's leading community service platform-Caizhiyun (彩之云), which has not only strengthened the management platform, enriched the product content, but also created wonderful community experience for residents. In the first half of 2021, the Group established the Colour Life Technology Research Center to further strengthen R&D capabilities, develop smart community, and improve subsystems such as video surveillance (SkyEye), Bluetooth access control intercom, parking lot, patrol, elevator control and so on for the construction of various smart community scenarios, which is an indication of how we take into account the residents' convenience, experience and participation in providing daily security services.

 

In terms of value-added services, the Group continues to explore innovative types of value-added services based on community scenarios, and provides customised products and services for residents in line with community scenarios, market demands and residents' needs. For example, we provide users with professional, whole-process and comprehensive insurance solutions bearing in mind community scenarios and the best interest of users, and interact with residents both online and offline; we make full use of Shenzhen Zhonganxin Insurance Broker Co., Ltd.'s the qualifications for selling insurance online and strive to provide insurance offerings that are "cheap, fast, reliable, and exclusive"; we strike to increase the stickiness between residents and properties through insurance products and diversified services, so as to enhance residents' dependence on the community and their willingness to be served, translating products into direct needs of residents and in this way, the Group can provide practical and diversified services for residents.

 

Optimize The Organizational Structure And Build An Efficient Service System

Given that development strategy dictates organisation structure while organisation structure supports implementation of corporate strategy, timely adjustments need to be made to organisation structure to accommodate company development. We are witnessing a changing external environment, accelerated technology innovation and development as well as increasing uncertainties and ambiguities. The Group takes the lead in business transformation of the property management industry, so as to accommodate its corporate strategy and business development and satisfy customer needs.

 

A comprehensive review of the Group's business was conducted for optimisation and streamlining of the organizational structure. Colour Life reorganised its business into six regional segments and two special segments by geographical location, so as to shorten the Company's management chain and promote further integration between its original businesses and the acquired businesses, which is conducive to the unified management of the Group to enhance resource utilisation and achieve scale economy, and also helps to export the management and service experiences of some outstanding communities across the Group to promote synergetic effects and cost advantage.

 

Staying True To Its Original Aspiration And Pushing Business Growth To A New Level

Mr. PAN Jun, chairman of Colour Life Services Group Co., Limited remarked:

2021 marks the first year of the 14th Five-Year Plan of China, and is also the starting year for the new journey of moving on to all-out efforts to build a modern socialist country. During the 14th Five-Year Plan period, the urbanisation rate of permanent residents in China will be increased to 65%. To accelerate the development of property management service industry and facilitate upgrading of property management services towards high-quality and diverse services is fundamental to meet the people's ever-growing needs for a better living environment. Under this new circumstance, the property management industry will also usher in a period of rapid development.

 

In the face of upcoming challenges and opportunities, Colour Life has established a strong leading advantage. In 2014, Colour Life, as the first service operator of community platform listed in Hong Kong, embarked on a journey of value discovery in the property management industry in the capital market. Since its listing, Colour Life has continued to lead the trend in the community service industry. With its excellent third-party expansion capabilities, it has achieved rapid expansion while balancing M&As. Aside from boasting strong team advantages and market-oriented advantages, it is also in our blood to be engaged in the trade of Internet. It is only natural that, JD.com and 360.com, two Internet giants, have joined Colour Life as strategic investors to jointly explore smart communities. All these advantages have laid the groundwork for the future development of Colour Life.

 

Looking forward, Colour Life will stay true to its original aspiration while embracing business transformation. Colour Life will be committed to providing high-quality property services and building caring communities. By implementing a series of measures such as landmark projects, diverse brand strategy and remuneration reform, we aim to increase revenue from existing assets and expedite development of new business, so as to pave the path for rapid development, establish a comfortable living environment for the residents and create greater return for the investors.

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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/