Poly property can’t just be quiet and good trees.

Editor’s note: This article is from China network of real estate , Author: Tao Ting, reproduced with permission.

According to the disclosure of the Hong Kong Stock Exchange on December 1, Poly Property Development Co., Ltd., after the delisting of the New Third Board, was transferred to the Hong Kong stock market and was “released” by the Securities and Futures Commission, and passed the Hong Kong Stock Exchange listing hearing. GF Capital, Huatai Financial Holdings, and Agricultural Bank International served as their joint sponsors.

Unsurprisingly, Poly Property will become the 14th mainland property company listed on the main board of the Hong Kong Stock Exchange. In fact, behind Poly’s pursuit of listing, although it is backed by a large state-owned enterprise and its scale advantage is prominent, it also faces problems such as weak profitability and low market share. Poly Property is trying to revolutionize its service model.

Backing up the big tree of central SOEs, the area under management continues to grow

In recent years, there has been a wave of housing companies splitting and listing the property sector. Whether it is Xinyuan Service, which just went public this year, or Ya Life in the previous two years, etc., it is the divestiture of the parent company, splitting the property, and completing the jump of going public.

According to the disclosure of the Hong Kong Stock Exchange on December 1, Poly Property Development Co., Ltd. passed the listing hearing of the Hong Kong Stock Exchange. After the listing hearing of Poly Property, the next plan is to raise 500 million US dollars next week and use the proceeds for strategic investment opportunities; further develop value-added services; upgrade digital and intelligent management systems; and use them as operating funds and General company use.

For real estate companies, the split of the property sector on the Hong Kong stock market has a higher success rate than the A-share market and takes less time. Secondly, at the moment when housing and housing are not speculated, the transition period from incremental to stock, and the financing environment is tightening, the listing of spin-off properties can provide another financing platform for housing enterprises.

Furthermore, the property management industry is in the early stages of development, and the imagination space is huge. Property companies can further expand and gain more market share through listing and financing, thus becoming a new profit growth point for real estate companies.

From the announcement of the termination of the listing of the New Third Board on April 11, to the disclosure of the prospectus for going to Hong Kong on August 6, and the listing hearing of the Hong Kong Stock Exchange on December 1, Poly Property only took 4 months to complete the turn. The big tree of state-owned enterprise Poly is obviously the largest capital for Poly property listing.

Under the blessing of the state-owned enterprise, the area under management of Poly Property continued to grow. According to the prospectus, as of December 31, 2016, 2017, and 2018, and June 30, 2019, the areas under management of Poly Property were 81.8 million square meters, 106.2 million square meters, and 190.5 million square meters, respectively. And 260.3 million square meters.

The prospectus also shows that as of April 30, 2019,The contracted management area of ​​Lee Property Development amounts to 371.4 million square meters, covering 136 cities in 27 provinces, municipalities and autonomous regions across the country. The area under management is approximately 198 million square meters. It manages 1,177 properties in China, both of which are in China. Top five scale rankings.

The market share is only 0.9%. The revolutionary service model is imminent.

The moon is cloudy and sunny, and the coin has both sides.

From the perspective of the large industry environment, the industry concentration of property management companies is still low, and the industry market share is generally low. Ping An Securities research report shows that in 2018, the top ten industries accounted for 11.4%, and the top 100 markets accounted for less than 40%. The market share of color life with the highest management scale is only 1.7%, which is far lower than the market share of leading real estate companies.

Research reports show that as of the first half of this year, Poly Property is the fourth largest property company in the country, second only to Greentown Property, Country Garden Services and Vanke Property, but the company’s current market share is only 0.9%.

Although Poly Property is backed by a large state-owned enterprise and its scale advantage is prominent, in terms of various signs, Poly Property’s business still relies on the growth of Poly Development, a parent company with well-defined sales and sufficient project reserves.

At present, Poly Property has three business lines, which respectively provide property management business, non-owner value-added services and community value-added services. Among them, the property management business is the company’s most important source of income. The prospectus shows that Poly Property’s property management business revenue accounted for more than 70% of the total revenue in the first four months of 2019.

The properties under its management are mainly developed by Poly Development Holdings Group (including its joint ventures and associates), and the rest are developed by other property developers or obtained from owners of certain public and other properties. From 2016 to 2018, properties developed by Poly Development Holdings Group accounted for 98.7%, 95.9% and 88.6% of their income from property management.

However, Poly Real Estate also realized that relying too much on the property management business of the parent company is not a good thing, and it is trying to slowly reduce its dependence on the parent company. Although previously, Poly Property said in response to the media “how to expand the scale after fundraising” that the company is in a quiet period before listing, and some questions are inconvenient to respond.

However, according to the prospectus, Poly Property maintains an external expansion project. The prospectus mentioned that as of April 30, 2019, about 111 million square meters of the area managed by Poly Property came from Poly Group, and another 87 million square meters came from the extension project, which accounted for 56.2% of the total area under management. And 43.8%.

In addition to expanding other businesses, China Real Estate also found that Poly Property also tried to revolutionize the original service model. Under the concept of “co-construction, co-governance and sharing”, and the increasingly clear positioning of “public service functions”, Poly Property has reached cooperation with the government to line up in different business formats, such as housing, office buildings, schools, hospitals, scenic spots, towns, etc. .

November 22