FY 2018 Annual Results Presentation

（3319.HK）

A-LIVING SERVICES CO., LTD.*

Lifelong Caring

*For identification purposes only

2

Disclaimer

This presentation may contain forward-looking statements. Any such forward-looking statements are based on a number of

assumptions about the operations of the A-Living Services Co., Ltd. (the “Company”) and factors beyond the Company's control and

are subject to significant risks and uncertainties, and accordingly, actual results may differ materially from these forward-looking

statements.

The Company undertakes no obligation to update these forward-looking statements for events or circumstances that occur

subsequent to such dates. The information in this presentation should be considered in the context of the circumstances prevailing at

the time of its presentation and has not been, and will not be, updated to reflect material developments which may occur after the date

of this presentation. The slides forming part of this presentation have been prepared solely as a support for oral discussion about

background information about the Company. This presentation also contains information and statistics relating to the China and

property development industry. The Company has derived such information and data from unofficial sources, without independent

verification. The Company cannot ensure that these sources have compiled such data and information on the same basis or with the

same degree of accuracy or completeness as are found in other industries. You should not place undue reliance on statements in this

presentation regarding the property development industry. No representation or warranty, express or implied, is made as to, and no

reliance should be placed on, the fairness, accuracy, completeness or correctness of any information or opinion contained herein. It

should not be regarded by recipients as a substitute for the exercise of their own judgment. Information and opinion contained in this

presentation may be based on or derived from the judgment and opinion of the management of the Company. Such information is not

always capable of verification or validation. None of the Company or financial adviser of the Company, or any of their respective

directors, officers, employees, agents or advisers shall be in any way responsible for the contents hereof, or shall be liable for any loss

arising from use of the information contained in this presentation or otherwise arising in connection therewith. This presentation does

not take into consideration the investment objectives, financial situation or particular needs of any particular investor. It shall not to be

construed as a solicitation or an offer or invitation to buy or sell any securities or related financial instruments. No part of it shall form

the basis of or be relied upon in connection with any contract or commitment whatsoever. This presentation may not be copied or

otherwise reproduced.

This presentation does not constitute an offer to sell or the solicitation of an offer to buy any securities in the United States or

any other jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities

laws of any such jurisdiction. No securities may be offered or sold in the United States absent registration or an applicable exemption

from registration requirements. Any public offering of securities to be made in the United States will be made by means of a prospectus.

Such prospectus will contain detailed information about the company making the offer and its management and financial statements.

No public offer of securities is to be made by the Company in the United States.

Results

Highlights

4*Incl. final dividend and special dividend

^Incl. GFA acquired after the Year

• Revenue 3,376.7mn +91.8%

• Net profit margin 24.0% +7.0p.p.

• Profit attributable to shareholders

801.0 mn +176.5%

• Earnings per share 0.62

• Operating cash flow

883.2 mn +207.4%

• Cash and cash equivalents

4,808.0 mn +446.5%

• Proposed total dividend

400.0mnDividend payout ratio reached 50% *

Performance Highlights

Excellent performance in the first year

after listingOutstanding results of

market expansion

Extend presence through

mergers and acquisitionsSteady growth of gross profit margin

with outstanding earnings

• Current total GFA under management amounted to 153.6million sq.m., and total contracted GFA amounted to

246.4 million sq.m.^

• Obtained 48.4 million sq.m. new contracted GFA from

third-party property developers and 24.4 million sq.m. new

contracted GFA from two major shareholders

• Laid solid foundation in the Greater Bay Area,

consolidated footholds in Beijing, Shanghai and

Guangzhou, serving the whole nation of the PRC with a

coverage of 24 provinces, autonomous regions and

municipalities

• Overall GPM 38.2% +4.7p.p.

• Property mgtservices

GPM 27.4 % +0.5p.p.

• Community VAS GPM 50.9% +9.2p.p.

• Extended VAS GPM 47.7% remained stable

• Significant growth in value-added services with high

gross profit margin

• Accelerated expansion with strategic layout, obtained

new contracted GFA from M&A amounted to 47.6 million

sq. m.^

• Acquired 51% equity interest in Nanjing Zizhu in April

2018

• Acquired 100% equity interest in a leading property

developer of Shenzhen in August 2018

• Acquired 89.6643% equity interest in Qingdao Huaren in

January 2019

• Acquired 60% equity interest in Harbin Jingyang in

February 2019

• Focusing on post-acquisition management and

empowerment to improve profitability

(RMB)

Financial

Summary

RMB '000 2018% of

revenue2017

% of

revenueChange

Revenue 3,376,749 1,760,753 +91.8%

Cost of sales (2,086,808) (61.8%) (1,170,188) (66.5%) +78.3%

Gross profit 1,289,941 590,565 +118.4%

Gross profit margin 38.2% 33.5% +4.7p.p.

Selling and marketing

expenses(45,951) (1.4%) (32,629) (1.9%) +41.1%

Administrative

expenses(302,246) (8.9%) (171,222) (9.7%) +76.5%

Profit for the year 810,879 300,207 +170.1%

Net profit margin 24.0% 17.0% +7.0p.p.

Profit

attributable to the

shareholders of the

Company

801,045 289,727 +176.5%

Earnings per share

(RMB/share)0.62 0.35 * N/A*

6

Financial Highlights

*The Company’s H shares were listed on 9 February 2018, thus the weighted average number of ordinary shares for the year ended 31 December 2017 was

only 832,400,000 shares.

1,206

453

102

1,6251,463

289

0

400

800

1,200

1,600

2,000

Property Mgt Services Extended VAS Community VAS

2017 2018

675a

325 223

42

445

698

147

26.9%

49.3%

41.7%27.4%

47.7%

50.9%

0

500

1,000

1,500

Property Mgt Services Extended VAS Community VAS

Gross Profitin 2017

Gross Profitin 2018

Gross profitmargin in2017Gross profitmargin in2018

7

788b

2017 2018

Detailed Figures of Three Business Lines

Revenue and Growth Rate (by Business Lines) Gross Profit and Gross Profit Margin(by Business Lines)

（ RMB million） （ RMB million）

aSales Center Property Mgt ServicesbOther Extended VAS

Percentage of Revenue of 3 Business Lines

323a

48.1%

20.0%

23.3%

8.6%

130b

68.5%18.3%

7.4%

5.8%

Property Mgt Services

Sales Center Property Mgt Services

Other Extended VAS

Community VAS

RMB '000 2018 2017 Change

Total assets 7,296,549 2,510,797 +190.6%

Total liabilities 1,786,512 1,036,728 +72.3%

Goodwill 1,045,362 918,967 +13.8%

Trade and other

receivables1,164,913 448,189 +138.6%

Trade and other

payables1,192,556 952,375 +25.2%

Operating cash flow 883,165 287,299 +207.4%

Cash and cash

equivalents4,807,993 879,771 +446.5%

8

Other Financial Figures

Business

Review

10

126.1

0

58.1 58.7

9.3

229.8

31.0

106.4

70.4

22.0

246.4

47.6

0

40

80

120

160

200

240

280

2017

2018

Incl. acquisition after 31 Dec 2018

By Portfolio

Third-party

Breakdown of GFA Under Management

(40.0%) (34.9%) (3.4%)(42.7%) (53.9%) (3.4%)

(% of GFA)

(21.3%) (46.3%) (30.6%) (9.6%)(46.1%) (46.5%) (7.4%)(13.5%)(NA) (NA)

Property Management Services – Scale Expansion

GFA Under Management （million sq.m.） （million sq.m.）Contracted GFA

The Guangdong-

HK-Macao

Greater Bay

Area

Yangtze

River Delta

Urban Area

Chengdu-

Chongqing

Urban Area

Others

M&A Agile GreenlandTotal GFA

Under MgtM&A Agile GreenlandTotal Contracted

GFA(% of contracted GFA)

Third-party

Property management services recorded a revenue of RMB1,624.8 million, up 34.8% year on year, accounting for 48.1%

of the total revenue, with a gross profit margin of 27.4%, up 0.5p.p. year on year

60.4%

39.6%

ResidentialNon-residential

35.7%

31.5%3.6%

29.2%

By Geographic Coverage

78.3

0

33.5 42.2

2.7

138.1

29.4

55.8 48.2

4.7

153.6

44.9

0

40

80

120

160

200

2017

2018

Incl. acquisition after 31 Dec 2018

11

90.1%

70.5%81.5%

0%

50%

100%

Industry Benchmark

Level of Overall Satisfaction Rate towards Property Management in 2018

Property Management Services -

Dual-brand Driven Strategy, Enhancing Brand Power

Agile Property Management

Agile Property Management focuses

on the management of mid- to high-

end residential properties and is a

first-mover in managing vacation and

large-scale property

Greenland Property Services

Greenland Property Services has

dedicated to commercial properties

especially the super high-rise

buildings, and is strive to become a

benchmark brand in the industry

TOP 8 of Property Management Companies of

China in terms of Comprehensive Strengths

2nd among TOP 100 Property Management

Companies in China in terms of Growth Potential

Chinese Blue-Chip Property Management

Company

TOP 10 of Community Service Providers in the

PRC in terms of Competitiveness

2018 Newly Listed Company with the Best

Investment Value

Leading satisfaction from customersEnhancing brand reputation

Deepen the cooperation with shareholders and implement the dual-brand driven strategy, focusing on

mid- to high-end residential and commercial properties to develop benchmark projects

(Source: China Index Academy)

• As of 31 Dec 2018, the contracted GFA

from Greenland Holdings reached 22.0million sq.m.

• The newly increased contracted GFA

amounted to 12.7 million sq.m. during the

Year, exceeding the GFA committed in

the strategic cooperation agreement

• The contracted GFA from third-party

expansion of Greenland Property reached

3.96 million sq. m. during the Year

• As of 31 Dec 2018, the total contracted GFA

from Agile Group reached 70.4 million sq.m.

The newly increased contracted GFA

amounted to 11.7 million sq.m. during the

Year.

• The collection rate of property management

fee of the residential property projects from

Agile Group reached 95.7%.

12

• The contracted GFA obtained from third-party property developers increased by

48.4 million sq.m. during the year, up 83.2% year on year

• Extended: 113 prefectural level cities/autonomous prefectures, 30 provinces,

cities and municipalities

• Newly entered: 4 new provinces, 39 new prefectural level cities with total 223

projects

• Cultivated: Guangdong-Hong Kong-Macao Greater Bay Area, Yangtze River

Delta and Beijing-Tianjin-Hebei region, etc.

• Entered into joint venture cooperation with regional leading property developers

to speed up regional expansion

Further expand scale

and geographic

coverage, to complete

nationwide layout

Focus on potential

areas for enhancing

influence and

competitiveness

Enter into new

markets by acquiring

regional leading

enterprises

A property management company of leading

developer in ShenzhenAcquired 100% equity interest at a consideration of RMB10.5

million in Aug 2018

Portfolio: management of residential properties

Contracted GFA in 2018: 3.42 million sq.m.

Visionary investment and M&AHarbin Jingyang (market leader in Heilongjiang) Acquired 60% equity interests at a consideration of RMB113.9

million in Feb 2019

Portfolio: management of residential, commercial properties

and office buildings

Contracted GFA in 2018: 10.5 million sq.m.

Qingdao Huaren (listed company on the NEEQ)

Acquired 89.6634% equity interest at a consideration of

RMB133.6 million in Jan 2019

Portfolio: management of public buildings, office buildings and

residential properties

Contracted GFA in 2018: 6.1 million sq.m.

Nanjing Zizhu (one of the Top 100 property

management companies in China) Acquired 51% equity interest at a consideration of RMB204.8

million in Apr 2018

Portfolio: management of public buildings, commercial and

residential properties.

Contracted GFA in 2018: 27.6 million sq.m.(upon acquisition:

22.3 million sq.m.)

Comprehensive market expansion

Property Management Services – M&A and Third-party Expansion

13

Nanjing Zizhu• Through empowerment from the Group after the acquisition, Nanjing Zizhu operated independently and

achieved better-than-expected operating results. For the year of 2018, Nanjing Zizhi recorded an increase

of 19.1% in revenue year on year. Net profit after deducting non-recurring gains and losses was 41.0

million, up 24.0% year on year, net profit margin increased by 0.5 p.p.

• Leveraging A-Living’s strengths and resources, as well as Nanjing Zizhu’s, management experience in

local market, Nanjing Zizhu has improved its brand pricing power and enhanced the capability of operating

high-end projects, adding 5.24 million sq.m. new GFA under management during the year

Mutual respect, seeking common ground while holding back differences, integration

Empower and support the acquired companies

Export system and experiences in valued-add services

Property Management Services –

Significant Results in Post-Investment Management

Refined post-acquisition management

Empower the acquired

companies to improve

efficiency• Project

inspection

• Appoint

managerial

staff

• Connect to the unified

system

• Promote A-Assistant

and A-Steward APPs

• Set up pilot projects

• Embed management standards

• Reduce energy consumption

• Import value-added services system

Procedure

Principles

Sample

• Continued support for acquired companies: including strategic planning, referral of professionals, financing

support and improving corporate governance structure

• Customized and differentiated post-acquisition management plans

• Ensure adding value to the investment, and enhance corporate value

• Build centralized post-acquisition management capacity as A-Living scales up its investments

Future

14

• Xiaoya Agent

• Xiaoya Parcel

Pickup

• Group buying

Community

living services

Home

improvement

Community assets

management

services

• Xiaoya

Repairing

• Xiaoya

Gardening

• Xiaoya

Cleaning

• Services

apartment

• Clubhouse

operation

• Second-hand

houses

• Rental service

• Car park

operation

• Community

advertisement

• Long and

short term

rental

• Serviced

apartment

• Home

decoration

• Home accessory

Focusing on the

residents,

houses, vehicles

and public

resources

Build a

community

economic

ecosphere

Operate though

asset-light mode

Build a platform

for frequent

consumption

Community Value-Added Services-

Diversified and Innovative Community Economy

Community value-added services generated revenue of RMB288.8 million, up 183.7% year on year,

accounting for 8.6% of total revenue, with a gross profit margin of 50.9%, up 9.2p.p year on year

15

Extended value-added services generated a revenue of RMB1.46 billion, up 222.7% year on year,

accounting for 43.3% of the total revenue, with a gross profit margin of 47.7%

Sales center property management Marketing

Home inspection and early

stage involvement

Provide Closed Loop, Full-cycle

Services to Property

Developers

Provided integrated marketing services for property developers

• Product positioning and marketing consulting

• Property sales agent

• Enhance property quality

• Highly recognized by property

developers

• Improve quality of the property

delivered by preventing delivery of

property with problems, minimizing

investment cost at later stage

• Increase satisfaction rate by property

owners

Third-party

Expansion Results

in Marketing• New expansion with significant

increase in revenue from third-party market

• Rapid coverage of 25 expansion projects in Southern, Eastern, Central, Southeastern and Northeastern China, Shandong and Hebei with only one year, laid solid foundation for the undertaking of property at later stage

Extended Valued-Added Services -

Comprehensive and Full-Cycle Coverage

Provide sales center management services,

including

• Concierge reception

• Security services

• Site maintenance

• Display equipment maintenance

Future

Outlook

• Mid-to-high end residential

property management

• Sales center property

management

• High-end commercial property

management

• Consultation services

• Commercial operation

• Investment and rental services

• Community value-added

services

• Real estate specialized

services

Optimization of Corporate Structure

17

Focusing on

3 business segments

Reducing labor with

efficiency improvement

Comprehensive re-organization of corporate structure

Integration and optimization in multi-dimensions

Focusing strategy with synergic development

Strive to develop into a market leader

Nurturing new businesses

Whole Industry Chain Layout

18

• Mid-to-high end

residential property

• Vacation property

Market

Expansion

Investment and

M&A

Joint venture and

cooperation

Dri

ve

s r

ap

id d

eve

lop

me

nt

of

va

lue

-ad

ded

se

rvic

es

Co

mm

un

ity C

om

merc

ial S

erv

ices

Asset

Man

ag

em

en

tP

ub

lic

bu

ild

ing

sP

rop

ert

y M

an

ag

em

en

t

Multi-portfolio

property

management,

to achieve whole

industry chain layout

of property services

• Establish new commercial

management brand-Johnson

Asset Management

• Provide professional and

high-end commercial

property services

• Realize vision of “office

building being constructed

and managed by Chinese

enterprise”

Mid-to-high end residential

property management

High-end commercial property

Public buildings property

• Focus on public buildings

property

Government office

buildings

Schools, hospitals and

other public utilities

Infrastructure(e.g. airports,

transports facilities, etc.)

Enhancing Competitiveness by Three Ways

19

Improving

Service

Quality

Focusing on

Market

Expansion

Enhancing

Operation

Efficiency

Smart

Community

Creates

Better Life

A-Living

integrated

management

platform

Intelligent application

Smart guardAutomated car

park guard

Automated operation

Enhancing Efficiency through Technology

20

EBA (e-building

automation)

Mobilized services

Property owners Property management

A-Steward APP

Dedicated steward &

O2O service

A-Assistant APP

Smart property

management system

Super cloud

platform

12 modules fully cover property management; solve difficulties

in community property management

Quality

management

Online study

Project

expansion

Procurement

and storage

Customer

service

Budget

management

Human

resources

Contract

management

Coordination

office

Business

management

Engineering

management

Finance

charge

Informatized business

Smart remote

patrol systemCleansing machines

Patrol through

dronesPatrol with

balance bikes

Lifelong Caring

A-LIVING SERVICES CO., LTD.*