A New Vision Empowered by Intelligence slide image

A New Vision Empowered by Intelligence

Mapping Out a Nationwide Layout for City Services Waren Yahao A subsidiary of A-Living specialized in city services business Shaanxi Mingtang Acquired 60% equity interest One of Top 100 environmental sanitation service enterprises in China ZH Sanitation Acquired 30% equity interest Ranked 10th out of Top 100 environmental sanitation service enterprises in China* City Services Segment Collaborative development of seven regions to shape a nationwide layout Dalian Mingri Acquired 51% equity interest Ranked 16th out of Top 100 environmental sanitation service enterprises in China* Beijing Huifeng Acquired 51% equity interest Ranked 28th out of Top 100 environmental sanitation service enterprises in China^ Anhui Yurun Intended to acquire 51% equity interest One of Top 100 cleaning services brands in China Business layout of city services Strategy implementation: Mapped out a development strategy for city services to further extend industry value chain and enhance the anti-cyclicality and growth ability of business Brand upgrade: Acquired the Top 10, Top 100 or regional dominant brands through equity acquisition to form a strong alliance and enhance the market influence Leading scale: Currently manages over 130 projects with a total annualized contract value of over RMB10 bn #, lifting A- Living as a leading city services enterprise Nationwide layout: Seven regional offices will collaborate with the acquired companies to form a nationwide layout and establish a dominant position in each regional market Expansion capability: Extensive experience and qualifications together lay a solid foundation for further market expansion City services business is making some headway with more than 130 projects under management, covering 53 cities in 20 provinces, autonomous regions and municipalities, representing a total annualized contract value of over RMB2 bn and total contract value of over RMB 13 bn# • Following the strategy, A-Living recently acquired 5 leading city integrated services enterprises for a total of RMB1.18 bn at a roughly 10 times P/E ratio, and rapidly mapped out a city services layout by adding Top 10 and Top 16 environmental sanitation service companies to the Group Source: Huanjingsinan, 2020 Top 100 Enterprises *According to total contract value ^According to annualized contract value #Incl. associates as at 31 Dec 2020 18
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