Times Neighborhood was established in 1998 and mainly provides property services for properties opened by Times China Holdings. The group has been rooted in the Greater Bay Area for more than 20 years and has continuously expanded its property management scope in the Greater Bay Area. The company was listed on the main board of the Hong Kong Stock Exchange in December 2019. Times Neighborhood was recognized by China Index Academy (“CIA”) as the 12th in the Top 100 Property Management Companies in Terms of Overall Strength in the PRC,. The main business includes property management service, VAS to non-property owners, community VAS and other professional services. The company adopts “Being deeply rooted in the Greater Bay Area, Expanding its presence into the whole China, and Accelerating diversified businesses” as its development strategy (深耕大灣區，面向全國，加速多元化業務佈局). In 1H20, The company’s revenue achieved rapid growth, with total revenue reaching RMB 702 million, an increase of 54% YoY. After excluding the impact of listing expenses, the core profit attributable to shareholders was RMB 84 million, an increase of 76% over the same period last year.
Actively expand the diversification of projects under management
The company is actively expanding its territory. As of June 30, 2020, Times Neighborhood business covers 17 cities across the country, with 298 property management projects, and GFA under management reaching 48.353 million square meters, an increase of 25.8% compared to the end of 2019. Among the additional GFA under management, 5.747 million square meters are the area brought by the new acquisition. During the period, the company’s new business and GFA under management for the terminated business were 5.482 million square meters and 1.305 million square meters respectively.
The rapid development of domestic property management industry
In recent years, the scale of the domestic property management industry has developed rapidly. According to the data in the “2019 Property Service Enterprise Development Index Evaluation Report”(2019物業服務企業發展指數測評報告), as of the end of 2018, the property management industry has managed an area of approximately 27.93 billion square meters , increased by over 80.31%, with a CAGR of 12.5%. The China Property Management Association (中國物業管理協會)predicts that the total area of property management in China will reach 37.67 billion square meters in 2023.
Increased market concentration
In order to expand the GFA under management and improve the market position, large companies have accelerated their expansion through internal growth and mergers and acquisitions of small and medium property management companies. On April 22 this year, the company announced the acquisition of an 80% stake in EASY LIFE SMART COMMUNITY SERVICES GROUP CO., LTD for CNY 240 million. The company also announced on May 11 that it had acquired a property management company in Ningbo for RMB 37 million. The two projects will bring a total of 25 million square meters of GFA under management to the company. It is expected that the company will reach its original two-year target of 45 million square meters, an increase of 200% over the same period last year.