On October 16, Shum Yip Property Operation Group Co., Ltd. submitted its fourth statement to the Hong Kong Stock Exchange.

The latest prospectus shows that as of June 30, 2024, Shenye Property's total contracted construction area is approximately 92.3 million square meters, the total number of projects under management is 498, and the total construction area under management is approximately 89.2 million square meters, covering 46 cities and 14 provinces in China. As of June 30, 2024, Shenye Property's total construction area under management in the Greater Bay Area is approximately 60.2 million square meters, accounting for 67.5% of the total construction area under management.

Shenye Property Business is mainly divided into three aspects: as of June 30, Shenye Property City and Industrial Park Services managed a total of 252 city and industrial park projects, with a total construction area under management of approximately 55.9 million square meters, accounting for 62.7% of the total construction area under management; Residential property management services managed a total of 175 residential property projects under management, with a total construction area under management of approximately 28.4 million square meters, accounting for 31.9% of the total construction area under management; Commercial property operation and management services manage a total of 71 commercial property projects, with a total construction area under management of approximately 4.9 million square meters, accounting for 5.4% of the total construction area under management.

Shenye Property was established on July 17, 1992. It is a subsidiary of Shenye Group Co., Ltd., a company directly managed by Shenzhen State-owned Assets Supervision and Administration Commission. According to the prospectus, CCB International Finance, China International Finance Hong Kong Securities and CITIC Securities International are joint sponsors. Shenye Property submitted listing applications to the main board of the Hong Kong Stock Exchange on February 24, 2023, August 25, 2023, and March 28, 2024 respectively. According to Frost Sullivan, in 2023, in terms of revenue, Shenye Property ranks ninth among full-business property management, commercial operations and urban service providers in China and fifth among state-owned full-business property management, commercial operations and urban service providers in China, each accounting for 0.3% market share.

The prospectus shows that Shenye Group, the controlling shareholder of Shenye Property, is committed to building an innovative ecosystem and happy city business portfolio with real estate as the core and multi-level coordinated development, focusing on developing six major businesses: real estate, parks, operations, happiness, capital and Digital business. As of June 30, 2024, Shenye Group recorded total assets of RMB 192.9 billion, total liabilities of RMB 143.4 billion, and net assets or total equity of RMB 49.5 billion. As a subsidiary of Shenye Group, Shenzhen Holdings was listed on the main board of the Stock Exchange in 1997 and was shortlisted in the Fortune China 500 in 2022. Shenzhen Holdings focuses on the Greater Bay Area, deploying the Yangtze River Delta region and key provincial capital cities. As of June 30, 2024, its land reserve construction area is approximately 6.5 million square meters, of which the land reserve construction area of the Greater Bay Area reaches 66.2%. Shenye Property maintains a long-term business relationship with Shenzhen Holdings.

In order to reduce its reliance on controlling shareholders, Shenye Property pointed out that the construction area under management of projects developed by independent third parties increased from 42.6 million square meters as of December 31, 2021 to 70.7 million square meters as of June 30, 2024.

Financial data shows that in 2021, 2022, 2023 and the six months ended June 30, 2023 and 2024, the gross profit of Shenye Property was RMB 279.6 million, RMB 338.2 million, RMB 426.1 million, RMB 202.3 million and RMB 221.7 million respectively, and the overall gross profit margin was 13.0%, 14.4%, 15.7%, 15.8% and 15.7%.

As of December 31, 2022, 2023 and the six months ended June 30, 2024, the company's net current assets were RMB 141.6 million, RMB 275.6 million, RMB 371.1 million and RMB 454.1 million respectively.

The net current assets of Shum Yip Property increased from RMB 275.6 million as of December 31, 2022 to RMB 371.1 million as of December 31, 2023, mainly due to the increase of RMB 71.8 million in trade and other receivables and prepayments, and the decrease of RMB 7.6 million in trade and other payables. As of December 31, 2023, net assets or total equity continued to increase to RMB 903 million, mainly due to its declaration of dividends of RMB 60.1 million and net profit of RMB 160.3 million in 2023.

From 2021 to 2023 and for the six months ended June 30, 2024, the total remuneration paid by Shenye Property to directors and supervisors was approximately 4.1 million yuan, 5.5 million yuan, 7.2 million yuan and 3.2 million yuan respectively.

Shum Yip Property said it expects to receive a global offering of HK$398.4 million. In the next three to five years, the company will acquire 6-7 target companies by investing approximately RMB 28.6 million to RMB 65 million in each target company to consolidate its market position and create synergy effects. The target company mainly focuses on cities in the Yangtze River Delta and Greater Bay Area; the next selected cities are cities in the Beijing-Tianjin-Hebei region, Chengdu-Chongqing region and Central China region; the total construction area under management in the past three years should exceed 2 million square meters; In the most recent fiscal year before the acquisition or business merger, the target company's annual operating income is not less than RMB 40 million, or a net profit rate is not less than 7.0% and a compound annual growth rate of operating income and net profit is not less than 5.0%.

In addition, the funds raised will also be used to optimize data-based service platforms and purchase new equipment to enhance the influence of commercial operation services.