New Hope Service Holdings Limited (New Hope Service or the Company, Stock Code: 3658), an integrated property management enterprise engaging in the provision of lifestyle service solutions, announced its annual results for the year ended 31 December 2023 (the Reporting Period).
In 2023, New Hope Service focused on advantageous areas, persisted in qualitative expansion, and achieved high-quality growth in core performance indicators by tapping into increased profits through commercial operational services and lifestyle services. During the Reporting Period, the Group recorded revenue of approximately RMB1,260.7 million, representing an increase of 10.7% as compared to the same period last yearï¼›Gross profit was approximately RMB440 million, and gross profit margin was 34.9%. Net profit margin attributable to the parent Company was 17.1%, remaining at mid-to-high level. Meanwhile, the Company has strengthened operations and lean management, yielding profit attributable to equity shareholders of the Company amounting to approximately RMB215 million, and basic earnings per share RMB0.26, an increase of 6% over the same period last year. The Board recommended payment of a final dividend of RMB0.091 per share, with an interim dividend of RMB0.067 per share, for a total annual dividend of RMB0.158 per share, equivalent to a dividend payout ratio of 60%. As at the end of the Reporting Period, the Company’s net cash flow from operating activities climbed by 87.1% against the same period last year to approximately RMB335 million, reflective of the healthy operation and ample cash flow of the Company.
Tap into local needs and focus on advantageous areas
New Hope Service continued to follow the development strategy of deep regional penetration. As at 31 December 2023, the Group had projects in 33 cities across China, with the area under management 32,258,000 square meters (“sq.m.”), representing an increase of 11.9% as compared to the same period last year, and the contracted area of 38,172,000 sq.m., representing an increase of 5.6% as compared to the same period last year. Among them, 95.1% of the Group’s property management projects were in first-tier, new first-tier and second-tier cities in China, while 93.8% of revenue from property management was also derived from such cities.
In addition, New Hope Service continued to step up its efforts in high-tier cities in the Southwestern China regions with Chengdu as the core, and Eastern China regions, both of which accounted for 85.3% of the total area under management, with the advantage of regional intensity continuing to emerge. Specifically, the area under management in the Southwestern China region was 16,918,000 sq.m., and the revenue from property management was RMB310 million, accounting for 47.4% of the total revenue from property management. As the national central city in the Western China region, the area under management in Chengdu was 10,642,000 sq.m., accounting for 33% of the total area under management; The area under management in the Eastern China region was 10,628,000 sq.m., and the revenue from property management was RMB250 million, accounting for 37.9% of the total revenue from property management.
Insist on quality expansion and enhance independent capability
The Company insisted on balancing “quality” and “scale”, and continued to conduct multi-channel market expansion via, among other means, bidding, establishing joint ventures and strategic partnership. In 2023, the company successfully completed the acquisition of Chengdu Jinguan Xincheng Property Management Co., Ltd., successfully expanded high-end residential projects such as Sunshine City Tan Yue and Binjiangjiuli, financial industry projects such as China Guangfa Bank Kunming Branch* and China Construction Bank Sichuan Branch Xinjin and Dayi Sub-branch, and industrial park projects such as Chantou Jiangnan Industrial Park and Vipshop Guangxi Headquarters*. Meanwhile, New Hope Service established joint venture with Chengdu Wuhou State-owned Capital Investment and Operation Group Co., Ltd., Chengdu Wuhou Development Co., Ltd., Chengdu Wuhou Capital Investment Management Group Co., Ltd, and Longquan Economic and Technological Development Zone respectively, and successfully signed contracts for projects such as Shuanghua Digital Industrial Park and Tiefo Park. During the Reporting Period, the contracted area under management by independent third-party developers accounted for approximately 40% of the total contracted area, representing an increase of 6.2% as compared to the same period last year.
Moreover, benefitted from New Hope Wuxin Industrial’s relatively strong performance capability, the Company delivered projects as scheduled in 16 cities nationwide, amounting to nearly 37,000 units in total, and brought the Company concrete support for continuous growth in terms of GFA under management. Sticking to maintain the quality of middle-to-high-end projects, the Company recorded the average management fee per sq.m. of RMB2.95 during the Reporting Period.
Non-cyclical businesses are steadily growing and commercial operations are delivering performance results
By virtue of the industrial background of the Fortune Global 500 New Hope Group and relying on the customer-access attributes of property services, the Company achieved good performance growth in the lifestyle services segment through non-cyclical businesses such as group-on meals and retail services. As at 31 December 2023, the Company had 22 group-on meal business projects in operation, of which 50% fell within the comprehensive logistics services of “property + group-on meal”, achieving a bid winning rate of 42%. In the same year, customized services for corporate customers also achieved good results, a total of 24 products developed and more than 110,000 customized gift boxes provided, with the revenue from gift boxes increasing by 56.4% as compared with the same period last year.
In terms of commercial operational services, in 2023, in order to meet the needs of business development, the Company established a commercial operation company with its organization developed around “financing, investment, management and exit”. During the Reporting Period, the GFA from operating commercial projects under management by the Group was approximately 539,000 sq.m., in cities such as Chengdu and Kunming covering consumption scenarios such as professional markets, commercial streets, industrial parks and office buildings, with an average occupancy rate of 87.8%, a gross profit margin of 60.2%.
With steady development, industry-leading service quality and customer reputation, New Hope Service has been rated as one of the “TOP 100 Property Management Companies in China” by China Index Academy (“CIA”) for four consecutive years, with the ranking of the Company rising up to the 6th (10th in 2022) in terms of the market influence in Western China. Meanwhile, the company won the honors including “Top 1 Chengdu Enterprise with Excellent Service Capacity in China Property Service Industry in 2023” and “Top 5 of the Top 50 Chengdu Property Services Enterprises in terms of Comprehensive Strength in 2023.
Going forward, the Group will continue to strengthen digital construction to empower high-quality services and the improvement of management efficiency. In terms of residential business, the Group will consolidate its position as a benchmark for high-end residential projects, and empower other projects with high service standards. In terms of non-residential business, based on the all-round planning for corporate services, the Group will continue to provide B-end customers with extensive corporate services, precisely covering the needs of various companies at different stages of development. The Group will adhere to regional cultivation, with market-oriented expansion as well as investments, mergers and acquisitions, so as to expedite the development of the Company. In the future, New Hope Service will facilitate the connection with New Hope Group, and drill down into New Hope’s brand strengths in lifestyle in order to offer the clients diversified comprehensive solutions for lifestyle services.
KUALA LUMPUR, Feb 13, 2024 – (ACN/NewsVoir) – Oravel Stays Ltd which operates travel tech brand OYO reported that it has doubled its profit after tax (PAT) sequentially in Q3 FY24 to ~INR 30 crore. The company had marked its maiden profitable quarter with a PAT of over ~INR 16 crore in Q2 FY24. OYO’s Founder & CEO, Ritesh Agarwal, during an employee townhall shared the update about this two-fold surge in profit. He said, “In the upcoming quarters, we anticipate a consistent rise in PAT, driven by enhanced patron confidence, improved customer experience (Cx), and favourable market conditions conducive to sustained growth.”
He also shared that the company clocked Adjusted EBITDA of ~INR 750 cr / $90mn in 2023 and expects to clock Adj EBITDA of ~INR 1000 cr / $120 mn in FY24, surpassing its earlier projected Adj EBITDA estimate of INR 800 cr for FY2024.
OYO’s revenue also grew by ~10% Y-o-Y in Q3 FY24. Agarwal also shared that OYO saw a ~27% increase in the number of hotels on its platform to 17K, over the last year. The company optimised its operating cost by 15% in Q3 FY24 vs same period. The company last filed its Annual Accounts for FY2023 and these updates are unaudited.
OYO recently concluded a debt buyback of INR 1620 crores. The back process involved the repurchase of 30% of OYO’s outstanding TLB due June 2026. Sources close to the transaction have indicated that OYO’s decision to retire debt reflects its commitment to reducing financial leverage and underlines the company’s robust financial performance. The company achieved operational profitability in FY2023 with an Adj. EBITDA of ~INR 275 crores, plans to fund future growth and expansion through its earnings.
Global credit rating agencies Fitch & Moody’s have termed OYO’s move to repurchase its outstanding debt as positive. Fitch wrote that this action will improve OYO’s EBITDAleverage and that they may take positive rating action. Moody’s doubled its Adj EBITDA estimate for FY2024 from $50 million (projected in May 2023) to $90- $100 million.
OYO recently announced its expansion plans in major spiritual hotspots across the country, fuelled by a surge in domestic travel and rising interest in spiritual tourism. OYO is gearing up to launch 400 properties in popular destinations like Ayodhya, Puri, Shirdi, Varanasi, Amritsar, Tirupati, Haridwar, Katra-Vaishno Devi, and the Char Dham route by the end of this 2024.
China BlueChemical Ltd. (“China BlueChem” or the “Company,” stock code: 3983), the leading chemical fertiliser and methanol producer in China, announced its unaudited interim results for the six months ended 30 June 2023. In the first half of the year, the Company’s revenue decreased by 16.2% to RMB 6.176 billion. Net profit attributable to shareholders of the Company significantly increased by 83% to RMB 1.715 billion, marking the record-high mid-year profit in the company’s history.
Mr. HOU Xiaofeng, CEO and President of China BlueChem said, “The Company has consistently implemented its green and low-carbon development strategy. Due to ESG considerations, the Company sold a 67% equity interest in CNOOC Tianye, which resulted in a one-time revenue of RMB 850 million in the first half of the year. This significantly drove the company’s profit to grow 83% to RMB 1.715 billion, marking the highest mid-year profit in the company’s history. The Company has consistently boasted the honor and advantage of being an industry leader in energy efficiency. The methanol plant of the Company was awarded the honorary title of “Energy Efficiency Leader” by China Petroleum and Chemical Industry Federation for 12 consecutive years, and the synthetic ammonia plant was awarded the honorary title of “Water Efficiency Leader” by China Nitrogen Fertiliser Industry Association for four consecutive years.”
In the first half of 2023, the domestic economy continued to recover, while facing challenges such as insufficient domestic demand and a complex and tough external environment. In response to the market environment, the Company has actively enhanced its marketing capabilities. On one hand, it strived to strengthen its product brand premium, and on the other hand, it intensified its agrochemical services. Additionally, the Company forged ahead cost reduction and efficiency enhancement
In the production perspective, the Company’s main facilities have achieved long-term operation. In particular, the C series of DYK Chemical’s sulfuric acid achieved long-term running for 301 days, and CNOOC Huahe’s chemical fertiliser plant achieved long-term running for 228 days, both breaking historical records. The urea production volume of the CNOOC Huahe hit a record high. As a result, the Company produced 1.044 million tonnes of urea, 687 thousand tonnes of methanol, 401 thousand tonnes of phosphate fertilisers and compound fertilisers in the first half of the year.
With regards to sales and marketing, the Company accurately assessd the market and strengthened refined pricing. It also fully promoted the export of fertilisers during off-seasons and focused on the development of high-quality trade. The Company deepened its brand building and actively established itself as a “Plant Nutrition Solution Provider”. In the first half of the year, the Company sold 1.045 million tonnes of urea, 655 thousand tonnes of methanol and 352 thousand tonnes of phosphate fertilisers and compound fertilisers.
As for the industry outlook in the latter half of the year, the net domestic urea supply will be flat year-on-year or slightly increase, and the domestic supply and demand will be basically balanced, thereby the export will increase significantly. It is expected that the overall urea market will fluctuate. After the continuous decline of phosphate fertiliser, with the recovery and concentrated release of demand, the price of phosphate fertiliser has a certain foundation for stabilising and rebounding in the third quarter, which is related to the trend of international market prices and raw material costs. However, the overall oversupply situation may continue, and the price will still face the risk of falling in the fourth quarter. In the context of stable domestic economic growth, the oversupply of methanol will be alleviated. Under the situation of expected improvement in the macro environment, the market is expected to mainly fluctuate in a wide range. Due to raw materials, demand and other support, the market price of acrylonitrile may rise slightly.
Regarding the key strategies for the second half of 2023, Mr. Hou Xiaofeng, CEO and President of China BlueChem said, “The Company will continue to enhance the safe and stable operation of production plants, and promote the completion of HSE “re-systemization” construction. It will continuously optimise the business models and further promote the brand strategy, strengthen warehouse management and give full play to the advantage of inventory premium. Moreover, the Company will promote the analysis of digital scenarios in areas such as smart factory, smart terminal and smart sale, and focus on the construction of terminals in Basuo Port to promote the development of international trade and port logistics service industry, as well as actively deploy the clean energy industry and promote green and low-carbon development in order to bring shareholders good returns.”.
About China BlueChemical Ltd.
China BlueChemical Ltd. (“China BlueChem”) is a listed company that specialises in the development, production and sales of chemical fertilisers and synthetic chemical products. It is the largest Central enterprise in the field of chemical fertilisers in terms of both production capacity and production volume. The Company is a subsidiary of China National Offshore Oil Corporation which mainly engages in the exploration, development, production and sales of crude oil and natural gas. On 29 September 2006, China BlueChem was listed on the main board of The Stock Exchange of Hong Kong Limited with the stock code 3983. Currently, its production facilities are located in Hainan, Inner Mongolia, Hubei and Heilongjiang, China, with a total designed annual production capacity of 1.84 million tonnes of urea, 1 million tonnes of phosphate and compound fertilisers (mono-ammonium phosphate, di-ammonium phosphate and compound fertiliser), 1.4 million tonnes of methanol, 200,000 tonnes of POM and 70,000 tonnes MMA. It has a deep water port with a designed annual throughout capacity of 18.28 million tonnes in Dongfang city, Hainan province. Boasting continued growth of its brand value, China BlueChem was admitted to the official 2022 China Brand Value Evaluation List with a brand value of RMB3.971 billion, an increase of RMB772 million compared with 2021. In early 2023, the Company was granted “The Outstanding Listed Enterprise Awards 2022 – Excellent Results Performance” by Capital Media in recognition of its impressive and growing financial results.
For more information about the Company, please visit its website: www.chinabluechem.com.cn.
Mitsubishi Heavy Industries (MHI, TSE Code: 7011) announced that order intake rose 10.7% year-over-year to YEN4,501.3 billion in the fiscal year ended March 31, 2023. Revenue rose 8.9% to YEN4,202.7 billion year-over-year, resulting in profit from business activities (business profit) of YEN193.3 billion, a 20.6% increase from the previous fiscal year, which represents a profit margin of 4.6%. Profit attributable to owners of parent (net income) was YEN130.4 billion, an increase of 14.9% year-over-year, with a profit margin of 3.1%. EBITDA was YEN331.1 billion, a 13.3% increase from FY2021, with a profit margin of 7.9%, up 0.3 percentage points year-over-year.
Other highlights from FY2022 include order intake and revenue growth in Energy Systems driven by expansion in Gas Turbine Combined Cycle (GTCC) services. Aero Engines order intake and revenue grew 73% and 77% YoY, respectively, bolstered by recovering global air travel. Logistics, Thermal & Drive Systems order intake and revenue saw large, 22% YoY gains arising from high demand for forklifts in North America, Europe, and Asia Pacific, supported in part by expansion of lease and rental businesses in North America and the growing need for highly efficient, low-carbon-footprint HVAC equipment. Profitability was up 66% YoY in Aircraft, Defense & Space thanks in part to diligent cost-cutting efforts and foreign exchange benefits in Aero Structures.
FY2023 Guidance:
MHI issued guidance for the period ending March 31, 2024, the final year in the 2021 Medium-Term Business Plan (MTBP). This forecast includes modest gains in order intake and revenue, with large improvements in profitability culminating in achievement of the MTBP business profit margin target of 7%. Drivers of these improved margins are expected to include: higher profitability in Energy Systems projects; increasing benefits from cost passthroughs in Logistics, Thermal & Drive Systems; and higher margins in parallel with revenue growth in Metals Machinery. Cash flow is expected to take a brief turn into negative territory due to accelerating investments in the main growth areas of the Energy Transition and Smart Infrastructure. Dividends are planned to increase by YEN30/share YoY to YEN160/share.
CFO Message:
“FY2022 was a relatively strong year for MHI, and I am proud of the hard work each of our businesses put in during this period to outperform most metrics, both year-over-year and also versus guidance,” Hisato Kozawa, CFO of MHI commented. “In FY2023,” Kozawa continued, “We aim to overcome forecasted headwinds from a slightly stronger yen and increased labor and energy costs with appropriate cost passthroughs, strong services business expansion, and improved execution in Thermal Power. This will propel us toward our 2021 Medium-Term Business Plan targets, one focus of which is a business profit margin of 7%. We feel that achieving this profitability benchmark is important to show our stakeholders just how far we have come in improving returns during these three years. We also plan to increase dividends and make growth investments, which will help prepare us for continued success in the next MTBP period.”
For the full report, visit: www.mhi.com/news/pdf/fy20224q_press_release.pdf.
Note regarding forward looking statements: Forecasts regarding future performance as outlined in these materials are based on judgments made in accordance with information available at the time they were prepared. As such, these projections include risk and uncertainty. Investors are recommended not to depend solely on these projections when making investment decisions. Actual results may vary significantly due to a number of factors, including, but not limited to, economic trends affecting the Company’s operating environment, fluctuations in the value of the yen to the U.S. dollar and other foreign currencies, and Japanese stock market trends. The results projected here should not be construed in any way as a guarantee by the Company.
About MHI Group
Mitsubishi Heavy Industries (MHI) Group is one of the world’s leading industrial groups, spanning energy, smart infrastructure, industrial machinery, aerospace and defense. MHI Group combines cutting-edge technology with deep experience to deliver innovative, integrated solutions that help to realize a carbon neutral world, improve the quality of life and ensure a safer world. For more information, please visit www.mhi.com or follow our insights and stories on spectra.mhi.com.
AEON Credit Service (Asia) Company Limited (“AEON Credit” or the “Group”; Stock Code: 00900) today announced its annual results for the year ended 28 February 2022 (“FY2021”).
For FY2021, the Group’s revenue reached HK$1,049.6 million (FY2020: HK$1,089.9 million) and profit increased by 13.6% year-on-year to HK$342.6 million. Earnings per share increased to 81.81 HK cents (FY2020: 72.02 HK cents). The Board has recommended a final dividend of 22.0 HK cents per share, bringing the total dividend for the year to 44.0 HK cents per share, representing a dividend payout ratio of 53.8%.
The profit growth was owed to the Group’s efforts in building a quality credit portfolio with improved credit assessment techniques and enhancing debt management capabilities, which led to a significant 55.4% drop in impairment losses and impairment allowances to HK$94.1 million. With an increase in credit card sales and launch of the Off-us Acquiring Service for AEON Stores, the Group recorded an overall increase in fees and commissions of HK$26.4 million to HK$103.4 million for the year, which also contributed to the profit growth.
To overcome headwinds its business faced, the Group launched different promotional programmes during the year to capture the ever-changing credit card spending needs and demand for personal loans of customers. Consequently, sales for the year recorded an overall increase of 21.1% when compared with FY2020. Moreover, the gross advances and receivables balance as at 28 February 2022 was up by 5.2% against 28 February 2021.
Looking ahead, the Group will continue to work on its credit policy, like extending credit facilities to customers on a sustainable basis, with the aim of maximising profitability. Moreover, a new credit card product targeting the younger generations will be launched to expand the Group’s customer base. Also, the Group will focus marketing and promotional activities on its own solutions designed to address changing consumer spending needs in the post-pandemic environment and also on broadening brand appeal.
With the second round of the Consumption Voucher Scheme in Hong Kong forthcoming, the Group will place greater emphasis on diversifying marketing channels and programmes so as to stay competitive and capitalise on the rebound of economic activities. It will also continue to explore opportunities for opening more new branches, enhance domestic spending promotions and engage celebrities to promote its products.
With the expected rise in interest rates in 2022/23 likely to cause a drop in its interest spread, the Group will actively pursue new sources of income, such as fees and commissions by bringing in more card acquiring merchants, and explore other business opportunities.
On the technology development front, the card and loan system replacement project is expected to be completed in the second half of 2022/23. Subsequent to that, the Group can start promoting new product benefits with the help of enhanced digital marketing and premium user experiences or new payment solutions can be provided to customers. Moreover, with new data analytics tools, the Group will be able to enhance the effectiveness of its marketing endeavours, and credit assessment and credit management activities.
Regarding its Mainland China operations, the Group will continue to focus on expansion in the Greater Bay Area by launching more loan products. Separately, the newly acquired AEON Information Service (Shenzhen) Co., Ltd. will facilitate provision of seamless support to the Group’s operation, as well as give the Group unique strengths to capture new external business opportunities.
Mr. Tomoharu Fukayama, Managing Director of AEON Credit said, “The Group has managed to see its business back on a steady growth track amid the prevailing COVID-19 pandemic. Nevertheless, we expect the operating environment to stay challenging and uncertain in the coming year. To thrive despite the challenges, the Group will continue to refine its business model to adapt to changing consumer behaviours and meet new customer needs in the new normal. Priding responsiveness to changes in the market and strong business relations with partners, as well as a solid liquidity position and balance sheet, we are prepared to meet the challenges ahead and move forward, and capture business opportunities when they arise.”
About AEON Credit Service (Asia) Company Limited (Stock Code: 00900) AEON Credit Service (Asia) Company Limited, a subsidiary of AEON Financial Service Co., Ltd. (TSE: 8570) and a member of the AEON Group, was set up in 1987 and listed on the Main Board of The Stock Exchange of Hong Kong Limited in 1995. The Group is principally engaged in the consumer finance business, which includes the issuance of credit cards and the provision of personal loan financing, card payment processing services, insurance agency and brokerage business in Hong Kong and microfinance business in Mainland China.
For more information, please visit the company’s website at www.aeon.com.hk.
Media Enquiries Strategic Financial Relations Limited Vicky LEE / Carol CHEUNG / Albert CHU Tel: (852) 2864 4834 / 2114 2200 / 2114 4955 E-mail: sprg_acsa@sprg.com.hk
