China Evergrande is closer to spinning off Evergrande Property Services after the subsidiary submitted a listing application for the Hong Kong bourse.
The process is still in the very early stages, so the size and value are not yet known.
Cayman Islands-incorporated Evergrande Property claims to be one of the largest and fastest-growing comprehensive real estate management service providers in China.
According to data cited in the prospectus, the company ranked second among the top 100 sector players in the country in terms of number of cities covered by its projects, for the year ended 31st December 2019.
On the same basis, it was third in each of total revenue, total gross profit and total net profit; third in contracted gross floor area (GFA) and fourth in GFA under management.
Furthermore, the group’s net profit increased at a compound annual growth rate of 195.5 per cent from 2017 to 2019, which was the highest among the top 20 property management companies in China.
Evergrande Property has a diverse portfolio, including mid- to high-end residential properties, commercial sites, theme and industrial parks, healthcare complexes, and schools, among others.
As of 30th June 2020, the company was contracted to provide management and value-added services to 1,354 projects in over 280 cities in 22 provinces, five autonomous regions, four municipalities and Hong Kong.
It generated revenue of CNY 7.33 billion (USD 1.08 billion) and CNY 4.56 billion, in the 12 months ended 31st December 2019 and the six months ended 30th June 2020, respectively.
Profit for the year was up at CNY 930.52 million (FY 2018: CNY 239.01 million) and reached CNY 1.15 billion in H1 2020 (H1 2019: CNY 407.33 million).
Evergrande Property had gearing of 0.9 per cent and a 79.6 per cent return on equity, as of 30th June 2020.
© Zephus Ltd