Operational & Development Highlights:

Continuous scale expansion in property management segment

Ø   Revenue from property management service segment amounted to RMB1,074.9 million with a year-on-year growth rate of 66.3%, accounting for approximately 76.3% of the total revenue. The gross profit of property management service segment amounted to 334.3 million, gross profit margin was 31.1%.

Ø   As at 31 December 2020, the chargeable gross floor area (“GFA”) under management increased 26.3 million square metre (“sq.m.”) to 41.4 million sq.m. in total. 

Ø   Deepened the layout in South China area, which accounted for 50.9% of the total revenue under the property management service segment, and will be continuously benefitted from the development of Guangdong-Hong Kong-Macao Greater Bay Area.

Strong growth in commercial operational segment

Ø   Segment revenue from commercial operational services amounted to RMB333.2 million with a year-on-year growth rate of 31.0%, accounting for approximately 23.7% of the total revenue. Gross profit of the commercial operational segment was RMB147.1 million, gross profit margin was 44.1%.

Ø   During 2020, three newly opened shopping malls were under the commercial operation and management services by the Group. Such newly opened shopping malls increased commercial operational services contracted GFA under management by approximately 114,987 sq.m.

Ø   As of 31 December 2020, the Group was contracted to provide commercial operational services to 38 shopping malls, which together has a contracted GFA of approximately 1.8 million sq.m. Among which the Group contracted to provide post-opening commercial

operation and management services to 25 shopping malls with contracted total GFA of

approximately 1.1 million sq.m.

Ø  During the year, the Group’s commercial operational service segment achieved an increase in an aggregate contracted GFA of 627,000 sq.m.

Further enrich the Group’s property management portfolio and improve business layout through strategic acquisitions

Ø   Acquisition of 80% interest in Easy Life for a consideration of RMB248 million. Easy Life manages 220 property management projects in Beijing, Hebei, Henan, Tianjin, Chongqing and Sichuan, with a total GFA under management of approximately 23.3 million sq.m..

Ø   Acquisition of 65% equity interest of Ningbo Hongjian at a consideration of RMB35.3 million. Ningbo Hongjian currently has 34 projects under management, with a GFA under management of approximately 2.4 million sq.m.

Ø   Acquisition of the entire equity interest of Beijing Boan for a consideration of RMB87 million. Beijing Boan currently has a total of 14 projects under its management, with a total GFA of approximately 2.1 million sq.m. under its property management and a heating service area of approximately 385,000 sq.m.

Ø  Through strategic acquisitions, the Group can enrich its property management service portfolio, enable the Group to enter into new regional markets and effectively expand its business scope, improve its business layout, and accelerate the scale growth of its property management business.

Establish team dedicated for traditional Chinese medicine and healthcare services as the foundation for future development

Ø   Set up a dedicated team comprising healthcare experts in the industry, and together with the sojourn services, to provide customised products and services for the elderly and achieve the synergy among the product lines.

Ø   “Aoyue Home” launched soft opening in the communities under its management, i.e. Guangzhou Panyu Jinye Villa Garden (廣州番禺金業別墅花園), Guangzhou Luogang Aoyuan Plaza (廣州蘿崗奧園廣場) and Zhongshan Aegean (中山愛琴海).

Ø   The “Xinghuili Elderly Care Centre”, a comprehensive elder care service centre has been entered and stationed in the Aoyuan Healthcare Plaza.

(29 March 2021－Hong Kong) Aoyuan Healthy Life Group Company Limited (“Aoyuan Healthy” or the “Group”; SEHK stock code: 3662), is pleased to announce its annual results for the year ended 31 December 2020 (the “Year”).

For the year ended 31 December 2020, the Group’s total revenue was RMB1,408.1 million, representing an increase of 56.3% as compared to that in 2019. Revenue generated from property management services and commercial operational services contributed to 76.3% and 23.7% of total revenue, respectively.

During the Year, the Group’s gross profit was approximately RMB481.4 million, representing an increase of approximately 42.8% year on year as compared to that in 2019. The gross profit margin was 34.2%. The net profit was approximately RMB253.0 million, representing a year-on-year increase of 55.1%, while the net profit margin was approximately 18.0%. Basic earnings per share was RMB34.48 cents, up 45.0% year on year. The Board recommends the payment of final dividend of RMB14.0 centsper Share for the year ended 31 December 2020.

Property Management Services

The Group provided property management services to 346properties in 63cities across 19provinces, municipalities, and autonomous regions in the PRC with a chargeable GFA under management of approximately 41.4million sq.m. During the Year, the Group achieved an increase in the GFA under management of 26.3million sq.m. under the property management service segment, representing a year-on-year increase of 174.2%.

The revenue generated from property management services segment increased for about 66.3%, of which the increase in the revenue generated from property management services was approximately 60.5%.The increase in revenue generated from major owners value-added services was approximately 62.4% and the revenue of community value-added service increased by approximately 120.8%.

Commercial Operational Services

The Group was contracted to provide commercial operational services to 38 shopping malls with contracted total GFA of approximately 1.8 million sq.m. Among which the Group contracted to provide post-opening commercial operation and management services to 25 shopping malls with contracted total GFA of approximately 1.1 million sq.m. During the Year, the Group’s commercial operational service segment achieved an increase in an aggregate contracted GFA of 627,000 sq.m.

As of 31 December 2020 the Group provided commercial operational services to 18 shopping malls in operation in 11 cities in the PRC, with a total GFA under management of approximately 806,000 sq.m., representing a year-on-year increase of 4.0%. The revenue generated from commercial operational service increased for about 31.0%, mainly due to the increase in revenue generated from commercial operation and management services of approximately 28.0%.

 General Health and Wellness Business

In respect of healthcare service, the Group, as the Executive Vice Chairman Unit of Guangdong Elderly Care Services Association (廣東省養老服務業協會常務副會長單位), started from the community elder care services and has set up a dedicated team comprising healthcare experts in the industry, and together with the sojourn services, so as to provide customised products and services for the elderly and achieve the synergy among the product lines. During the Year, the “Aoyue Home” community healthcare brand created by the Group was officially launched for soft opening in the communities under its management, i.e. Guangzhou Panyu Jinye Villa Garden (廣州番禺金業別墅花園), Guangzhou Luogang Aoyuan Plaza (廣州蘿崗奧園廣場) and Zhongshan Aegean (中山愛琴海). These allow property owners to enjoy quality in-home elder care services.

Outlook

In 2021, the Group will continue to pay close attention to the development of the COVID-19, and evaluate the impact of the epidemic on the Group’s finances and operations, and readjust its operation plans and development strategies in a timely manner to promote the concept of “Make Life Healthy and Beautiful” and generate benefits.

Property Management

In light of the increasing competition in the industry, the Group provides property management services for most of the property projects developed by parent company China Aoyuan Group Limited(“China Aoyuan”, SEHK stock code: 3883”). While achieving stable income contribution, the expansion is the only way for property management to enhance market competitiveness. The Group will leverage on the edge of the listing platform to deepen its strategy and focus on the coordinated development with other businesses and will also further expand the scale of property management through its own expansion, investment, mergers and acquisitions, and joint investment and cooperation, and complete strategy of the entire industry chain of the property management industry through incorporating city operation, hospital, school and public services at the same time.

Commercial Operation

The Group will actively expand diversified business operations, and improve the overall performance from different dimensions through expanding the existing innovative advertising business. Online sales have brought a once-in-a-century opportunity to traditional businesses because of rigid needs and the strong consumption desire after the epidemic. The Group will actively develop online sales, cooperate with major online platforms to boost traffic, and attract more families and young consumer groups for online consumption. The Group’s commercial operation is already matured with highly reputable brand recognition in the industry. While cultivating the Guangdong-Hong Kong-Macao Greater Bay Area, the Group expands its high-level commercial property management business in other high-grade cities simultaneously, selects quality brands for joint operation, and endeavours to open up more revenue-generating segments to promote revenue and profit growth.

General Health and Wellness Business

In order to improve customer experience and enhance the Company’s service quality, service differentiation, and service competitiveness, the Group will continue to intensify general health and wellness business. By focusing on the needs of family customers and concentrating on healthy products as well as services, the Group will diversify products and services in its industrial layout so as to spur business growth. The group will continue to focus on the development of healthcare and comprehensive outpatient services, integrate the general health and wellness business with traditional businesses, and develop three service regimes centred on family doctors, health butlers, and life butlers, so as to build the “Health Cloud”, a platform featuring modularization, resource integration and technology application of general health and wellness industry. The Group will cooperate with industry funds to incubate resource modules and apply them to the existing community and business ecosystem, so as to build an “incubator for general health and wellness industry” based on the existing property management and business operation service ecosystem.

Mr. Guo Zining, Chairman of the Board and Non-Executive Directorsaid, “Lookingahead, the Group will entrench its root in the Greater Bay Area and take the whole China in view. By adhering to the enterprise values of “efficiency, integrity, responsibility, and win-win”, the Group will continue to develop a general health and wellness industry predominated by intelligent and healthy elder care business and others to expand and explore the potential in community value-added services based the commercial operation and property management, persist in strengthening the “Health + Technology” segment, and centered on property owners and customers to concentrate on developing life services and medical health and deepening such applications in community properties and commercial centres, so as to construct a comprehensive ecosystem for healthy life and accelerate our pace to become the leading healthy life service group in China. We will continue to achieve outstanding performance based on our past success and reach new heights courageously and strive to furnish our customers with the finest service, maximise our values and create stable and ideal returns to our shareholders in the long run.”