Tapping into the Property Management and Services Market in the Sichuan-Chongqing Region, Desun Services Debuts on the HKEX Today | News

CHENDU, China, December 17, 2021 /PRNewswire/ — About Dec 17 2021, Desun Real Estate Investment Services Group Co., Ltd. (Desun Services) was officially listed on HKEX. According to public information, Desun Services issued 150 million shares at a final offering price of HK$1.11 per share, generating net proceeds of HK$128 million.

According to the prospectus, Desun Services strives to provide property management services and commercial operation services for mid- to high-end residential and commercial properties, respectively.

In 2020, the average property management fee for properties managed by Desun Services was RMB 3.9, 50.0% higher than the average property management fee of RMB 2.6 for properties at Chengdu; and 105.3% more than the average property management fee of RMB 1.9 for properties at China. From a geographic point of view, the Company’s objective is to strengthen its positions in the municipality of Chongqing and Sichuan Province, while focusing on the west China and aiming for nationwide expansion.

Leveraging deep penetration in the Sichuan-Chongqing region and focus on mid to high-end real estate services, Desun Services’ performance has shown rapid growth in recent years. For the period 2018-2020 and 5M2021, the turnover of Desun Services has been 63.964 million RMB, 69.116 million RMB, 127.922 million RMB and 89.159 million RMB, respectively, while profits for the same period were 31.394 million RMB, 31.043 million RMB, 42.913 million RMB and 10.003 million RMB, respectively.

To some extent, the rapid growth of Desun Services is inseparable from the development dividends in the Sichuan-Chongqing region.

With the galloping development of Cheng-Yu city cluster leads through the economic development of southwest china, inFrom 2015 to 2020, the total SHON (Gross Area) managed by property companies in Chengdu grew from 635.3 million square meters to 814.6 million square meters, representing a CAGR (compound annual growth rate) of 8.8%. It is expected that by 2025, the total GFA under management by property management service providers in Chengdu is expected to reach 983.1 million square meters, with a forecast CAGR of 5.4% from 2020 to 2025.

Driven by the steady growth of real estate GFAs under management, the total turnover of real estate management service companies in Chengdu increases by 10.06 billion RMB in 2015 at 18.68 billion RMB in 2020, with a CAGR of 13.2%. It is expected that by 2025, the total revenue of property management service companies in the Chengdu the region should reach 34.39 billion RMB, with a projected CAGR of 13.0% from 2020 to 2025.

Notably, the mid- to high-end real estate market in the region fared better.

From 2015 to 2020, total GFA under management in the mid- to high-end residential property management services market in Chengdu increased from 85.7 million square meters to 125.2 million square meters, with a CAGR of 7.9%. Driven by the growth of real estate GFAs under management, the total turnover of the mid- to high-end residential real estate management services market in Chengdu increases by 2.16 billion RMB in 2015 at 4.39 billion RMB in 2020, with a CAGR of 15.3%.

In the future, with the sustained expansion of Chengdu-Chongqing Megalopolis, the market demand for mid to high-end real estate services to Sichuan and Chongqing regions is poised to continue to thrive. In this process, Desun Services will once again embark on a new adventure by taking advantage of the growth momentum of the Chengdu-Chongqing megalopolis.

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SOURCE Desun Real Estate Investment Services Group Co., Ltd.