FY2019 Interim Results Presentation

（3319.HK）

A-LIVING SERVICES CO., LTD.

Lifelong Caring

免责声明

2

This presentation may contain forward-looking statements. Any such forward-looking statements are based on a number of

assumptions about the operations of the A-Living Services Co., Ltd. (the “Company”) and factors beyond the Company's

control and are subject to significant risks and uncertainties, and accordingly, actual results may differ materially from

these forward-looking statements.

The Company undertakes no obligation to update these forward-looking statements for events or circumstances that occur

subsequent to such dates. The information in this presentation should be considered in the context of the circumstances

prevailing at the time of its presentation and has not been, and will not be, updated to reflect material developments which

may occur after the date of this presentation. The slides forming part of this presentation have been prepared solely as a

support for oral discussion about background information about the Company. This presentation also contains information

and statistics relating to the China and property development industry. The Company has derived such information and

data from unofficial sources, without independent verification. The Company cannot ensure that these sources have

compiled such data and information on the same basis or with the same degree of accuracy or completeness as are found

in other industries. You should not place undue reliance on statements in this presentation regarding the property

development industry. No representation or warranty, express or implied, is made as to, and no reliance should be placed

on, the fairness, accuracy, completeness or correctness of any information or opinion contained herein. It should not be

regarded by recipients as a substitute for the exercise of their own judgment. Information and opinion contained in this

presentation may be based on or derived from the judgment and opinion of the management of the Company. Such

information is not always capable of verification or validation. None of the Company or financial adviser of the Company, or

any of their respective directors, officers, employees, agents or advisers shall be in any way responsible for the contents

hereof, or shall be liable for any loss arising from use of the information contained in this presentation or otherwise arising

in connection therewith. This presentation does not take into consideration the investment objectives, financial situation or

particular needs of any particular investor. It shall not to be construed as a solicitation or an offer or invitation to buy or sell

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This presentation does not constitute an offer to sell or the solicitation of an offer to buy any securities in the United States

or any other jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under

the securities laws of any such jurisdiction. No securities may be offered or sold in the United States absent registration or

an applicable exemption from registration requirements. Any public offering of securities to be made in the United States

will be made by means of a prospectus. Such prospectus will contain detailed information about the company making the

offer and its management and financial statements. No public offer of securities is to be made by the Company in the

United States.

Results

Highlights01

% of revenue

• Property mgt • services

1,227.5mn 54.8%

• Community VAS 206.2mn 9.2%

• Extended VAS 807.5mn 36.0%

1H Results Highlights

4

Rapid growth in financial results

Optimized revenue structure

Unleashed potential of community VAS

Balanced scale expansion strategy

Synergetic development of four

business segments

• Revenue 2,241.2mn +59.4%

• Gross profit 829.5mn +62.6%

• Net profit 568.4mn +69.3%

• Profit attributable to shareholders

541.3mn +62.9%

Improved operating efficiency

• Total contracted GFA: 324.6mn sq.m.

• Total GFA under management: 211.2mn sq.m.

• Optimizing the multi-portfolio and whole industry chain

layout, entered into the market of public building property

services through the acquisition of Guangzhou Yuehua

• Achieved synergetic development of four business

segments, namely property management services,

community commercial services, asset management

services and public services

• Through the professional operation of the community

commercial segment, the Group deeply explored the

potential of community business, improved the utilization

rate of resources and launched new products

• Revenue of

community VAS206.2mn +157.9%

• Gross profit margin

of community VAS51.4% +4.5p.p.

Note: For the six months ended 30 June 2019 (unit: RMB)

• Further optimized the operation structure and

implemented regionalized management

• The proportion of administrative expenses to

revenue decreased by 2.1 percentage points to

5.6%

• Stably undertook the GFA from Agile Group and

Greenland Holdings, as well as actively obtained

projects from third-party property developers and

M&A to achieve stable and continuous growth in

business scale

Financial

Summary02

RMB’ 000 1H2019 % of revenue 1H2018 % of revenue Change (%)

Revenue 2,241,228 1,405,693 +59.4%

Cost of sales (1,411,776) (63.0%) (895,345) (63.7%) +57.7%

Gross profit 829,452 510,348 +62.6%

Gross profit margin 37.0% 36.3% +0.7p.p

Selling and

marketing costs (18,173) (0.8%) (15,702) (1.1%) +15.9%

Administrative

expenses (124,737) (5.6%) (108,259) (7.7%) +15.1%

Net profit for the

Period 568,391 335,771 +69.3%

Net profit margin 25.4% 23.9% +1.5p.p

Profit attributable to

the shareholders of

the Company541,314 332,332 +62.9%

Earnings per share

(RMB) 0.41 0.26 +57.7%

Financial Highlights

6

53.4%

21.1%

19.8%

5.7%

Property Mgt Services

Sales Center Property Mgt Services

Other Extended VAS

Community VAS

750

575

80

1,227

808

206

0

400

800

1,200

1,600

Property Mgt Services Extended VAS Community VAS

1H2018 1H2019

379a

297a218 255

37

326 398

106

29.0%

44.3%46.9%

26.6%

49.2%51.4%

0

500

1,000

1,500

Property Mgt Services Extended VAS Community VAS

Gross profitmargin in1H2018

Gross profitmargin in1H 2019

Detailed Figures of Three Business Lines

Revenue and Growth Rate (by Business Lines)

(RMB million)(RMB million)

7

aSales Center Property Mgt ServicesbOther Extended VAS

428b

Optimized Revenue Structure

1H2018 1H2019

54.8%

16.9%

19.1%

9.2%

279b

Gross Profit and Gross Profit Margin(by Business Lines)

RMB’ 000 As of 30 Jun 2019 As of 31 Dec 2018 Change （%）

Total assets 8,689,628 7,296,549 +19.1%

Total liabilities 2,916,945 1,786,512 +63.3%

Goodwill 1,361,906 1,045,362 +30.3%

Trade and other

receivables1,808,165 1,164,913 +55.2%

Trade and other

payables1,860,062 1,168,900 +59.1%

Operating cash flow 537,028* 207,094* +159.3%

Cash and cash

equivalents4,588,186# 4,807,993 (4.6%)

Other Financial Figures

8

*For the six months ended 30 June

#Including cash invested in wealth management products

Business Review03

229.8

137.4

70.4

22.0

324.6

217.3

73.2

34.1

0

40

80

120

160

200

240

280

320

360

31/12/2018 30/6/2019

138.1

85.2

48.2

4.7

211.2

152.9

50.5

7.8

0

40

80

120

160

200

240

31/12/2018 30/6/2019

58.7% 41.3%

Residential building

Non-residential building

By Portfolio

37.9%

18.7%

12.8%

6.1%

4.4%

20.1%

Greater Bay Area

Yangtze RiverDelta city cluster

Lanzhou-Xiningcity cluster

Harbin-Changchuncity cluster

ShandongPeninsula

Others

By Geographic Coverage

Third-party

(Incl. M&A)Agile GreenlandTotal GFA Under Mgt

10

(72.4%)(23.9%) (3.7%)

(61.7%)(34.9%) (3.4%)(% of GFA)

Agile GreenlandTotal Contracted GFA

(22.6%) (10.5%)(30.6%) (9.6%)(% of contracted GFA)

Third-party

(Incl. M&A)(66.9%)(59.8%)

1H19

M&A

63.6

1H19

M&A

64.7

Property management services recorded a revenue of RMB1,227.5 million, up 63.6% year on year, accounting for

54.8% of the total revenue, with a gross profit margin of 26.6%, decreased 2.4p.p. year on year

Property Management Services – Scale Expansion

GFA Under Management (million sq.m.) Contracted GFA (million sq.m.)

Breakdown of GFA Under Management

Gate of Hangzhou

A landmark for Hangzhou

2022 Asian Games

A Super high-rise commercial

and office building

Property Management Services – Balanced Growth

• As of 30 Jun 2019, the total contracted GFA from Agile Group amounted to 73.2million sq.m.

• The newly added contracted GFA amounted to 2.8 million sq.m. during the Period.

11

Agile Property

Management

Greenland Property

Services

• The newly increased contracted GFA from third-party expansion was 15.0 million sq.m.

during the Period.

• Deepened strategic cooperation-Joined hands with well-known property developers to

lay a solid foundation for undertaking high-quality projects.

• Explored diversified expansion mode-Proceeded the joint venture cooperation and

diversified the expansion mode by leveraging third-party’s market resources and

cooperation with the government.

• Enhancement in both quantity and quality -The management fee increased significantly

year on year for the newly obtained projects.

• Integrated market resources-Actively obtained projects from third-party developers

through region companies and enhance the market expansion capacity of the acquired

companies to explore the newly entered market.

• Improved marketing system-Improved the corresponding management system in all

aspects to facilitate sustainable development of Group’s expansion.

• As of 30 Jun 2019, the contracted GFA from Greenland Holdings reached

34.1 million sq.m.

• The newly added contracted GFA amounted to 12.1 million sq.m. during the

Period, exceeding the sum of annual committed and priority GFA in the strategic

agreement.

Stable contribution from shareholders

Northeast

City Cluster

Greater Bay Area

Yangtze River

Delta

City Cluster

Lanzhou-Xining

City Cluster

Shandong

Peninsula

Chengdu-Chongqing

City Cluster

Enhancement in both quantity and quality

for third-party expansion

Property Management Services – High-quality M&A

12

Further expanded scale

and geographic coverage

to strengthen its

nationwide presence and

multi-portfolio layout

Focused on

enhancing influence

and competitiveness

in major potential

areas

Entered into new

market by acquiring

regional leading

enterprises

Harbin Jingyang (A market leader in Heilongjiang)

Acquired 60% equity interest at a consideration of

RMB113.9 million

Portfolio: residential, commercial and office buildings

Contracted GFA : 10.52 million sq.m.

Guangzhou Yuehua (One of the Top 100 property

management companies in the PRC)

Acquired 51% equity interest at a consideration of

RMB195.3 million

Portfolio: public buildings

Contracted GFA: 30.00million sq.m.

Nanjing Zizhu

Property Services

A property management

enterprise under a leading

developer in Shenzhen

Corporate governanceGeneral manager accountability system led by the

Board of Directors

Business operationCommunications with departments of

relevant business lines

Core management

team

Established a three-layer

post-acquisition

integration system

Full integration of

financial systems

Acceleration of

informatization of

business

Synergistic

development

Exploration of

community economy

Qingdao Huaren (Listed company on the NEEQ)

Acquired 89.6643% shares at a consideration of RMB133.6

million

Portfolio: public, office and residential buildings

Contracted GFA: 6.30 million sq.m.

Lanzhou Chengguan (One of the Top 100 property

management companies in the PRC)

Acquired 51% equity interest at a consideration of

RMB147.9million

Portfolio: public, office and residential buildings

Contracted GFA : 17.87million sq.m.

Community VAS – Unleashing of Potential

13

Community VAS a generated revenue of RMB206.2million, up 157.9% year on year, accounting for

9.2% of total revenue, with a gross profit margin of 51.4%, up 4.5p.p. year on year

Community asset

management

Community

living

services

Home

improve-

ment

Residents Houses VehiclesPublic

resources

Community

asset

management

Community

living

services

Home

improvement

• Developed 68 product models of public resources to realize

the replication of business

• Developed a total of 32,000 public rental spots

• Implemented informatization and intelligentizarion of

business to fully utilize the newly obtained idle resources

• Smooth progress in the outsourcing of pools. The vacancy

rate of clubhouses decreased to 9%

Serviced

apartment

Clubhouse

operation

Car park

operation

Community

advertisement

Long- and short-

term house rental

Second-hand

houses

Rental

service

• Promoted the home improvement services at the

sales center to reach out to potential customers

• Organized meetings with property owners. The

turnkey furnishing business in Yunnan projects

achieved good performance

Turnkey

furnishing Home

decoration

Home

accessory

Xiaoya

Repairing

Xiaoya

Gardening

Xiaoya

Cleaning

Xiaoya

Agent

Xiaoya Parcel

Pickup

Group

buying

• Devoted to home services and innovatively

developed a business division partnership scheme

• Cooperated with well-known insurance companies to

promote vehicle insurance in communities. Explored

the business of car beauty and car repairing

• Cooperated with famous pet agencies to develop

various pilot pet services

14

Optimized operating process

Enhanced business management

Followed the guidance for various products and

services to realize standardized operation

Established community database and data-model to

assess the operation capability

Launched the distribution system and membership

system to realize the automatic billing

Implemented online centralized procurement

platform to control cost and improve efficiency

Focused on product R&D

Innovated product models

Explored community resources

Optimized its strategic plan for community

Initiated joint activities to create

noise, integrated resources in

different regions and arranged

marketing campaigns accordingly

Organized group buying festivals,

meetings with residents etc. to

enhance the community VAS

Set up rental and sales centers

nationwide gradually to secure

the value of assets

Monitored key steps

Assisted the implementation of new services

Assisted the sales and marketing business in early

stage

Fully utilized the newly obtained clubhouses and idle

venues, and simplified the process of fee collection

Incubated home services division and introduced home

services providers as strategic partners

Vehicle insurance

Car beauty

Broadband services

Customized services

for enterprises

Community travel

Health and elderly

care

Pet caring service

Community education

Short-term rental

apartment

Developed new products and services, and

scheduled to launch progressively in future

Community VAS – Continuous Innovation

15

Extended VAS -

Comprehensive and Full-Cycle Coverage

Extended VAS generated a revenue of RMB807.5 million, up 40.3%year on year, accounting for 36.0%

of the total revenue, with a gross profit margin of 49.2% , up 4.9p.p. year on year

Sales center property

management

Enhance the synergies among

property developers, property

management companies and residents

• Focus on the improvement of

service quality

• Implement inspection in accordance

with the standards

• Develop benchmark projects

Provide integrated sales agency services

to Agile Group and third-party developers

• Product positioning and marketing

consulting

• Property sales agency

Lay the foundation and gain advantages

for undertaking subsequent property

management services

Provide Closed-Loop, Full-Cycle Services to Property Developers

Provide sales center management

services, including

• Concierge and reception

• Security services

• Site maintenance

• Display equipment maintenance

Sales agencyHome inspection and early

stage involvement

16

Property owners-oriented services

Improvement of work efficiency

Simplified

process

Quality-based Branding

Professional

service

Standardized

management

Accurate

Timely

Effective

Accountability system

Improved the awareness of

proactive service

Formulated plans for

improving service quality

Summarized the common

problems

Optimized management standard

Multi-dimensional improvement

Maintained high satisfaction rate of the property

owners and secured the collection rate of

management fee

Laid a solid foundation for increasing management

fee progressively in future

7th of 2019 Top 100 Property Management Companies in the PRC

2019 Blue-chip Property Management Company in the PRC

Top 50 Property Management Companies in terms of Brand Value

Ranking in industry

hit a record high

Optimization of Corporate Structure to Improve Efficiency

17

Realized the sharing of resources, controlled cost and maximized the operating efficiency

Optimization of structure

• Property Management-Optimized the regional offices in

different cities into 7 region companies

• Community Commercial Services-Adjusted the business

lines and manpower

• Property Management Service Center-Built joint service

centers to realize large-scale, professional and intensive

management

Improvement of efficiency

• Adjusted administrative functions to lower level

• Optimized responsibility and accountability system and

simplified approval processes

Refined management

• Material management-Built database and centralized procurement

platform for tenders

• Energy consumption in public area-Monitored the performance of

energy-saving measures on a regular basis and reduced energy

consumption

• Outsourcing cost-Consolidated the tenders in different regions to

select the most ideal method of fee calculation

Talent development

• Rotation of talents-Rotated the core management talents

from mature projects to newly entered areas

• Directional assistance-Service centers offered help and

assistance to staff in need

• Multi-function-Streamlined redundant positions

South

China

Hainan Eastern

China

South-

west

China

Central

China

North

China

North-

west

China

FutureOutlook04

• Government office

buildings

• Schools, hospitals and

other public intuitions

• Infrastructure such as

airports and rail transits

• Cultural facilities such as

libraries, museums and

theatres

Synergetic Development of Four Business Segments

19

Stock code

3319.HK

Integrated services

for public buildings

Integrated services for

high-end commercial and

office buildings

360-degree comprehensive

community VAS

Stock code

3383.HK

Stock code

600606.SH

Integrated services for

residential buildings

• Deeply explore the community

economic ecosphere centered

on the residents, houses,

vehicles and public resources

• Cooperate with strategic

business partners to develop

new services

• Mid-to high-end residential

property includes apartments

and villas

• Vacation property

management

• Develop the brand of Johnson

Asset Management

• Position itself as an expert in

high-end commercial and office

building management

• Consolidate the foothold in

Beijing, Shanghai and

Guangzhou and enter into new

first-tier cities

Cover comprehensive portfolio and entire industry chain

Three Approaches: Quality, Scale and Efficiency

20

Service Quality

Scale Expansion

Operating Efficiency

• 400 Hotline Call Center-Respond to residents’ requests timely and

comprehensively monitor the quality of services

• Adjustment of functions-Adjust the quality control functions to the regional

level to meet property owner’s needs and provide caring services

• Property owners’ satisfaction-Ensure the service quality by adopting

satisfaction surveys carried out by internal department and authoritative third-

party

• Comprehensive-Carry out regular and random quality inspection to ensure

timely rectification

• Expand the sources of income-Continuously improve profitability based on

synergetic development of four major business segments

• Control the operating expenses-Operating expense is projected to

decrease effectively by reducing costs and improving efficiency, optimizing

structure and implementing strategies of standardized services

• Balanced development-Continuously obtain projects from two major

shareholders, M&A and third-party expansion, and actively participate in the

mixed-ownership reform of state-owned enterprises

• Endogenous growth-Focus on the improvement of endogenous growth in

the future to achieve high-speed and sustainable development

Efficiency

Scale

Quality

Lead the Development of Industry with Talents, Technology and Mechanism

21

Talents

Technology Mechanism

Supported by technology

Informatized businesses

Mobilized services

Automated operation

Intelligent application

Talent development

Upgrade the management

system

Focus on managing the talent

pool

Promote efficiency

enhancement

Operation mechanism

Simple

Flexible

Efficient

Build as a benchmark of the industry

Lead the future development

Lifelong Caring

A-LIVING SERVICES CO., LTD