Strives For Five-fold Growth In Next Three Years, Grand Debut Of Shimao Services' 'City Services Manager'

In the advent of its first listing anniversary, Shimao Services Holdings Limited ("Shimao Services" or the "Company"; HKEX Stock Code: 873.HK) has been very active - setting up its second headquarters in Chengdu, cooperating with Lang Chao Infrastructure, undertaken overall operation and maintenance of the Westlake University Yungu Campus in Hangzhou, Zhejiang, among others. In the first half of this year, Shimao Services achieved operating revenue of RMB4,234 million, a 171% surge year-on-year. Its net profit attributable to the parent was RMB578 million, up 136% year-on-year. According to its 2020 results announcement, Shimao Services achieved a five-fold growth in both revenue and business scale in the past three years, and will strive for another five-fold growth in the next three years.

On 29 October, in Shanghai, Shimao Services held an appreciation banquet to celebrate its first listing anniversary and the launch of its city services business. Ye Mingjie, Executive Director and President of Shimao Services Holdings, said he is optimistic about the development prospects of the property industry and Shimao Services will seize opportunities to speed up development. Shimao Services also, for the first time, announced the strategy of its city services business, positioning itself as a "City Services Manager" focusing on four main business areas - environment management, space management, renewal management and smart city management, to help it achieve the strategic goal of making it among leaders in the property service industry by 2023. The 2021 interim results of the Company shows that the newly added city services, with revenue reaching RMB134 million.

In recent years, favorable national policies have presented conditions for property enterprises to standardize operation and conducive to the long-term positive development of the industry. Shimao Group, the parent company of Shimao Services, is also confident of the prospect of the property industry hence will put its weight behind Shimao Services in striving for continuous rapid growth. Mr. Jason Hui, Vice Chairman and President of Shimao Group and Chairman of the Board of Shimao Services, stressed that, for Shimao Group, Shimao Services has always been one of the two wings in its "Big Plane Strategy" and it believes the property service industry has a promising outlook. Hence, in the future, it will keep providing resources as well as different business opportunities to Shimao Services.

Currently, although city services still have to the appropriate operation model, with the country encouraging property enterprises to partake in city services, Shimao Services sees opportunities for its business. On 14 October, Shimao Services announced that its second national headquarters has been set up in Wenjiang District, Chengdu, making it the first listed property management company to have dual headquarters to back the development of city services business, helping improve the scientific, precision and intelligence levels of city management.

In fact, since May this year, Shimao Services has forged partnership with Shenzhen Shenxiong Environment Co., Ltd. ("Shenxiong Environment") and Wuxi Jinshatian Technology Co., Ltd. ("Jinshatian Technology"), respectively, to help with mapping out its reach in two key regions, namely the Greater Bay Area and the Yangtze River Delta, and build its core and comprehensive city service capabilities. Shenxiong Environment is a top 10 environmental sanitation company in the Greater Bay Area, which also scored first in the Shenzhen Environmental Assessment Index Ranking 13 times in a row. As for Jinshatian Technology, which ranked sixth in the municipal environmental sanitation industry in China, has had it eye on growing the Yangtze River Delta market. Furthermore, in collaboration with local governments, Shimao Services has secured service projects in 15 cities, including Sucheng District of Suqian City and the Acheng District of Harbin City, five projects have commenced operation.

All signs and moves considered, Shimao Services is clearly positive about the prospect of city services and is sparing no effort to grow the business. In its plan, the business shall be guided by the "City Services Manager" positioning, with coverage extended from residents previously to "residents + citizens", from inside to "inside + outside" and from property services to "all scenario services". The manager will focus on four main areas - environment management, space management, renewal management and smart city management, aiming to raise the scientific, precision and intelligence levels of city management. For example, in space management, transportation, culture and leisure activities will be the emphases and, drawing on its advantages in resources, and operational and lean management capability, the company will take part in operating and managing transportation networks, pubic venues and parks, helping create beautiful and harmonious city space for people.

"Those at the top rule" is true as ever. Thus, Shimao Services has never stopped striving for a place among leaders in the industry. Apart from scaling up business, it also sees value-added service business as a new engine for sustainable growth in the medium and long term. In the first half of this year, community value-added services brought in revenue of RMB1.393 billion, a 233.9% leap year-on-year. Certain "property services + life services" policies and measures introduced by ministries and state commissions have presented huge development opportunities to the value-added service sector. Looking ahead, Shimao Services will push to tap segments with strong potential, broaden its value-added service offerings, attain professional operational capabilities and hone its strength. For instance, Shimao Services' subsidiary SUNIT has built a 0-2KM core community social life circle, with a good number of stores opened in regions including Shanghai and Nanjing. In October this year, joining hands with MYFARM, it also opened its first self-operated farm at Shimao Riviera Garden in Shanghai.

In the one year since listing, the Group's businesses, such as comprehensive property management service, community value-added services and smart city services, all performed well, with business indicators improving across the board. The Group has realized quality growth and prides a more solid and healthy operational foundation now. Shimao Services is expected to maintain brilliant performances going forward and be able to deliver on its promises to customers, cooperative partners and the capital market.

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