(20 August 2021－Hong Kong) Aoyuan Healthy Life Group Company Limited(“Aoyuan Healthy” or the “Group”; HKEX stock code: 3662), is pleased to announce its interim results for the six months ended 30 June 2021 (the “Period”).

During the Period, the Group’s total revenue was approximately RMB 1,003.5 million, representing a significant year-on-year increase of 83.0%. Revenue generated from property management services and commercial operational services contributed to approximately 79.8% and 15.6% of total revenue, respectively.Gross profit was approximately RMB 347.4 million, representing an increase of approximately 57.2% year on year. The gross profit margin was 34.6%. The net profit was approximately RMB 185.6 million, representing a year-on-year increase of 66.3%, while the net profit margin was approximately 18.5%. Basic earnings per share was RMB 24.49 cents, up 60.2% year on year.

Property Management Services

The Group provided property management services to 454 properties (including sales offices) in 94 cities across 22 provinces, municipalities, and autonomous regions in the PRC with chargeable GFA under management of approximately 44.3 million sq.m., representing an increase of approximately 28.2 million sq.m. as compared to approximately 16.1 million sq.m. as of 30 June 2020. As at the end of the Period, the contracted area of the Group was approximately 83.6 million sq.m.. 

The Group continued to deepen its development in residential property management to provide residents with high-quality residential services. At the same time, through mergers and acquisitions of various non-residential property management companies and self-established teams, it has continuously expanded the scope of property services and gradually enriched its service offering. The current service scope includes developer service, community service, commercial office building service and public building services. Of which, the developer service includes engineering pre-delivery consultation service, sales assistance service for sales offices, household inspection, fully furnished apartments and installation of aluminum alloy doors and windows and anti-theft systems etc. The community service includes property management, butler service and housekeeping service. The commercial office building service includes shopping mall management, hotel-style apartment management, commercial street management and office building management. The public building service includes amusement park management, hospital ancillary service, public buildings and facilities and equipment management. With the expansion of its scope of services, the Group’s overall revenue has increased steadily and its competitive advantages are significantly enhanced.

Commercial Operational Services

The Group was contracted to provide commercial operational services to 41 shopping malls with contracted total GFA of approximately 1.9 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 half year of 2021, the Group’s commercial operational service segment achieved an increase of contracted GFA of 149,000 sq.m. in total. As of 30 June 2021, the Group provided commercial operational services to 20 shopping malls in operation in 12 cities in the PRC, with a total GFA under management of approximately 892,000 sq.m..

The Group continued to conduct intensive urban development and had launched more commercial projects. On the basis of strengthening its existing business, the Group is committed to creating unique and distinctive commercial complexes with competitive and differentiated positioning as a breakthrough. These initiatives have enriched the Group’s commercial layout across the country, strengthened its competitive edge and effectively enhanced the Group’s asset growth.

Intelligent Community

To support the integration and development of its major segments, namely property management, commercial operations, and general health and wellness, the Group upgraded the original online platform and launched the “Aoyuejia” – 6A smart community solution, which empowers the refined management of communities and enhances new experience of smart life.

Based on the development needs of the industry and relying on independent research and development technology, the Group created a digital, intelligent and integrated video cloud platform. Through national networking, public area video viewing, remote quality inspection, video AI analysis and other core functions, it has solved key issues in community monitoring equipment such as mixed analog and digital, numerous brands, unusable nature of old equipment, independent management systems, and security leaks, promoting the realization of intelligent community security prevention and control, which in turn greatly improve the quality of community management, reduce costs and increase efficiency of business operations.

The “Aoyuejia” online platform builds a Yue Life Ecosystem in Aoyuan Community to meet the diverse needs of residents and tenants in the residential and commercial communities under the Group’s management and enhance the experience of the property owners. As of 30 June 2021, the “Aoyuejia” mobile application covers several residential and commercial properties managed by the Group, with a great number of registered property owners.

General Health and Wellness Business

The Group intensified the development of its general health and wellness business, vigorously developed key businesses such as smart healthcare, community elder care services and comprehensive outpatient services, and deeply applied them to the two ecosystems of “lives in properties and commercial complex”. Through independent research and development of platform systems such as user-end mini program, server-end app and back-end management system, by integrating with advanced technologies such as the Internet of Things, big data and blockchain, the Group has built a one-stop health service platform integrating online and offline services, thereby providing customers with smart healthcare and community home care and other services, as well as 

comprehensive outpatient services. 

Outlook

Mr. Guo Zining, Chairman of the Board and Non-Executive Directorsaid, “Looking ahead to the second half of this year, the epidemic is expected to continue exerting a relatively large impact on the global economy. Although the PRC is facing an increasing complicated international environment and uncertainties continue to escalate, it is believed that the PRC economy will overcome the difficulties with the active response of the government and maintain a momentum of relatively stable development. The Group will continue to focus on the improvement of comprehensive competitiveness. In the second half year, the Group will continue to take proactive reform on the basis of internal and external comparison and continuous summarization to fully implement refined operations, and continue to treat capital structure optimization and reduction in financing costs as top priorities at the current stage of development. 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. We strive to provide our homebuyers and customers with the finest services, and further enhance our values of our shareholders and business partners.”