Two pass table again failure, century jinyuan service IPO road

On January 26, century Golden Source’s prospectus, submitted six months ago, expired again, according to the Hong Kong Stock Exchange.It is understood that century Golden Source service first submitted the form in January 2021, but its prospectus has not passed the hearing until the expiration of 6 months.Later, the company spent only six days to quickly update the data content of the prospectus, and on July 26, it made a second attempt to seek listing on the Hong Kong Stock Exchange.But now it seems that century jinyuan service this time “listing dream” also failed to fulfill his wish.Data show that century Golden Source’s property management services cover 17 provinces, municipalities and autonomous regions, and spread across 55 cities, mainly located in Beijing, Fujian, Yunnan, Anhui and Guizhou provinces.From 2018 to 2020 and by April 30, 2021, the total service contract construction area of Century Golden Source is about 50.76 million square meters, 68.33 million square meters, 75.67 million square meters and 77.88 million square meters, respectively.In the same period, the total construction area of the management was about 47.6 million square meters, 58.7 million square meters, 64.39 million square meters and 70.19 million square meters, respectively.In terms of performance, Century Golden Source services recorded revenues of $922 million, $1.059 billion, $1.289 billion and $572 million respectively during the reporting period;Profits were about 218 million yuan, 180 million yuan, 249 million yuan and 112 million yuan respectively.It is worth noting that century gold source service is more dependent on its parent company.During the same period, 91%, 75.1%, 74.3% and 68.6% of the management floor area of the company came from the properties developed by its parent company, Century Jinyuan Group.And its property management service income is 97.6%, 89.3%, 83.2% and 84.6% respectively from Century Golden Source Group.And it can be seen from the prospectus that the high gross profit businesses of Century Golden Source services come from affiliated companies.The company’s overall gross margin from 2018 to 2020 was 32.1%, 31.8% and 35.5%, respectively.During the same period, the gross profit margins of independent third-party property developers were 14.8%, 25.1% and 27.2% respectively, while those of Century Golden Source group were 32.3%, 32.2% and 36.1% respectively.As of April 30, 2021, Century Jinyuan Service manages 12 projects developed by Century Jinyuan Group, with a total area of 44.4 million square meters. Each project covers an average area of 3.7 million square meters. The number of single project residents exceeds 100,000, among which 5 projects have a construction area of more than 4 million square meters.It is generally believed in the industry that large real estate is highly concentrated in population and resources, and the fixed cost is relatively low, so as to achieve scale effect and control costs.But on the other hand, the large-scale management model will bring a high risk rate of individual projects, because if a project runs into problems, it will have a huge impact on corporate profits.In addition, from 2018 to 2020 and up to the end of April 2021, the renewal rate of property contracts served by World Gold Source was 100%, 80%, 74% and 53% respectively, showing a downward trend.The company explained the increase in third-party projects in recent years, as well as the increase in the number of expired property management contracts and the termination of several projects due to its own or owners’ business considerations.

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