A New Vision Empowered by Intelligence
A Good Business with Stable Performance
Large-
scale
Large-scale projects with
long-term contracts
Asset-light
Diversified
partnership with
asset-light DNA
•
.
The acquired companies are expected to hit a revenue of
over RMB 2.5 bn as a whole in 2021, given their solid track
records of profitability. Their average GP margin was
24.7% and average NP margin was 12.5%.
The average contract duration of projects under
management is 5.73 years and the renewal rate in 2020
was higher than 95%.
•
Government's bidding and procurement process is
transparent, and the business model is asset-light.
• PPP (public-private partnership) project only accounts
for 7% of total projects, which has a manageable
investment amount and can secure contracts with higher
contract value and longer duration.
Stability
High collection rate
and solid cash flow
Resilience
A non-cyclical and
defensive business
•
.
Low risk of default as city services is included in the
government budget and enjoy a priority in payment with
settlement cycle usually no longer than one quarter.
The past fee collection rate of acquired companies has
been remained stable above 95%. Their cash flow is in
healthy condition with controllable investment.
Unaudited figures for the year ended 31 December 2020. Incl. subsidiaries and associates
.
As a rigid demand, city services' development is less
affected by macroeconomic factors without obvious
cyclical fluctuations.
With such a steadily growing business and a relatively
flexible pricing mechanism, the annualized contract
value of acquired companies grew at a CAGR of over
53% from 2017 to 2020.
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