a-living services co., ltd

FY 2017 Annual Results Announcement

March 2018

A-Living Services Co., Ltd.

Note: Images contain artistic rendition.

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.

3

Agenda

Results highlights

Financial summary

Business review

Future strategies

1

2

3

4

Section 1

Results highlights


5

Results highlights

Growth in GFA under

management

During 2017, our total GFA under management grew by 56.5% from 50.1 million sq. m. to 78.3

million sq. m. Particularly, GFA under management from third-party property developers

increased by 112.0% from 15.8 million sq. m. to 33.5 million sq. m.

Significant increase in net

profit1

During 2017, we recorded net profit of RMB 300.2 million, representing a 77.6% increase from

RMB 169 million in last year. During the period, we incurred listing expense and other listing

related costs of RMB 11.9 million (after taking into the effect of income tax). After excluding these

costs, our net profit of RMB 312.1 million was 84.6% higher than that in 2016

Diversified revenue source

with rapid growth

During 2017, we recorded RMB 1.76 billion revenue, representing 41.5% growth from that of last

year. In particular, revenue from property management services grew by 23.3%, revenue from

value-added services to non-property owners grew by 113.7%, and revenue from value-added

services to property owners grew by 86.4% when compared to last year

Rapid growth in popularity of

“A-Steward” and “A-Business”

As of 31 December 2017, our “A-Steward” APP covered all residential properties under

management (excluding properties under Greenland Property Services’ management), and had

attracted over 287,000 registered users and over 110,998 active users, with A-Steward Alliance

members jointly managing 816.8 million sq. m. of GFA

Growth in contracted GFAOur contracted GFA increased from 73.4 million sq. m. in 2016 to 126.1 million sq. m. in 2017,

representing a 71.8% increase. Among which, new contracted GFA from third-party property

developers and Greenland Holdings was 41.6 million sq. m. and 9.3 million sq. m. respectively

Note 1: In 2017, the Company incurred listing expense and other related costs approximately

RMB15.8 million, after taking into the effect of income tax being approximately of RMB11.9 million

(please refer to the results announcement)

Section 2

Financial summary


7

Financial summary

RMB’000 2017 2016 Change %

Revenue 1,760,753 1,244,735 41.5%

Cost of sales 1,170,188 933,088 25.4%

Gross profit 590,565 311,647 89.5%

Net profit 300,207 169,046 77.6%

Net profit before listing expense

and other related costs1 312, 092 169,046 84.6%

Note 1: In 2017, the Company incurred listing expense and other related costs approximately

RMB15.8 million, after taking into the effect of income tax being approximately of RMB11.9 million

(please refer to the results announcement)

8

Financial summary (Cont’d)

RMB ’000 2017 2016 Increase/(Decrease) %

Total assets 2,510,797 1,898,857 32.2%

Total liabilities 1,036,728 1,595,375 (35.0%)

Liabilities to assets ratio 41.29% 84.02% (50.86%)

Interest-bearing debt - 795,385 (100%)

Cash and cash equivalents 879,771 523,163 68.2%

Basic earnings per share (RMB/share) 0.35 0.22 59.1%

9

Financial performanceDiversified revenue source with rapid growth

Revenue (by business line)

595691

978

1,20642

58

55

102

189

186

212

453

0

350

700

1,050

1,400

1,750

2,100

2014 2015 2016 2017

Value-added Services to Non-property Owners

Value-added Services to Property Owners

Property Management Services

(RMB million)

826

934

1,245

1,761

Revenue growth (2016 vs 2017) by business line

978

212

55

1,206

453

1020

350

700

1,050

1,400

Property ManagementServices

Value-added Services toNon-property Owners

Value-added Services toProperty Owners

2016 2017

(RMB million)

10

Financial performanceSignificant increase in gross profit margin

66104

244

325

11

15

15

42

23

29

53

223

0

70

140

210

280

350

420

490

560

630

700

2014 2015 2016 2017




Gross Profit (by business line)(RMB million)

99

149

312

591

11.0%

15.1%

24.9%

26.9%

25.3%

26.8%28.1%

41.7%

12.0%

15.7%

24.8%

49.3%

0%

10%

20%

30%

40%

50%

2014 2015 2016 2017




Gross Profit Margin (by business line)

During 2014 to 2017, the increase in gross profit margin for property management services was primarily due to our continuous

implementation of cost-effective measures and an increase in the average property management fee we charged. The increase of

value-added services was primarily due to the economies of scale and our optimization of labor force

11

Financial performanceFast-growing net profit and steady growth in net profit margin

54.3%52.1%

45.4% 44.1%

13.4% 14.3%16.5%

13.7%

7.4%

5.4%

6.8% 6.0%6.6%

6.5%

2.5% 0.9%

11.0%12.2% 11.6% 13.3%

92.7%90.5%

82.8%

78.0%

0%

20%

40%

60%

80%

100%

2014 2015 2016 2017

Employee benefit expenses

Cleaning, greening and gardening expenses and maintenance costs

Utilities

Business taxes and other levies

Others

Total

The percentage of components of operating costs and expenses 1

to revenue

4772

169

312

5.6%

7.7%

13.6%

17.7%

0%

5%

10%

15%

20%

25%

-40

5

50

95

140

185

230

275

320

365

410

455

500

2014 2015 2016 2017

Net Profit Net Profit Margin

Net Profit and Net Profit Margin

(before listing expenses)

(RMB mn)

Note 1: Operating costs and expenses include costs of sales, selling and marketing expenses , and administrative expenses.

Note 2: Sub-contracting expenses include cleaning expenses, greening and gardening expenses and maintenance costs

Sub-contracting 2 contributed

to control our labor cost

Section 3

Business review


13

Nanhai Agile

(PRC)

Hainan Agile

(PRC)

Shanghai

Harrogate

(PRC)

Guangzhou

Harrogate

(PRC)

Huadu Agile

(PRC)

Guangzhou

Agile

(PRC)

Zhongshan

Agile Security

(PRC)

Guangzhou

Yaxin

(PRC)

Guangzhou

Yafang

(PRC)

Guangzhou

Yatian

(PRC)

Guangzhou

Yatao

(PRC)

Guangzhou

Yazhuo

(PRC)

Greenland

Property

(PRC)

Guangzhou

Yatong

(PRC)

51%

100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%

the Company

(PRC)

53.46%

Gongqingcheng

Investment

(PRC)

6%7.5%

Ningbo

Lvjin

(PRC)

Zhongshan A-

Living

(PRC)

100%

Deluxe Star

(HK)

7.5%

Greenland

Overseas

(BVI)

0.54%

100%

Chen’s Family Trust Other shareholders

63.83% 36.17%

Offshore

Onshore

Nantong

Yazhuo

(PRC)

100%

Notes:

1. Each of Greenland Overseas and Ningbo Lvjin is an indirectly wholly-owned subsidiary of

Greenland Financial Holdings Group Co., Ltd., which is indirectly wholly owned by Greenland

Holdings. Greenland Holdings owns 15% stake in the company through the 2 companies

(Note 1)

(Note 1)

Heilongjiang

Yatian

(PRC)

60%

Net proceeds of the Global Offering is approximately HKD 3.94bn after deducting the underwriting fees and relevant IPO costs and expenses, among which:

1. approximately 65% will be used to pursue selective strategic investment and acquisition opportunities and to further develop strategic alliances

2. approximately 10% will be used to further develop our one-stop service platform

3. approximately 15% will be used to develop our “management digitalization, service specialization, procedure standardization and operation automation”

4. the rest 10% will be used for working capital and general corporate purpose

Public

shareholders

25%

Post-IPO shareholding structure and use of proceeds

14

A leader in the property management industry in China, with rapid expansion of scale

1

Pioneer in China’s property management services industryCompetitive mid- to high-end property management service

provider in China

Ranked 12th among the Top 100 property management companies in terms of overall strength – CREA & CRA (2017)

The third rotating chairman of “Property Management (Quality Residence)

Enterprise Alliance” in 2016 – CIA (2017)

“Top 100 Quality of Services Leading Enterprises in PRC Property Service”

– CIA (2017)

Ranked 12th among the Top 50 property management companies in terms

of brand value – CREA & CRA (2017)

As of 31 December 2017, A-

Living provides property

management services in

over 69 cities with a total

GFA under management of

78.3m sq.m., increased from

50.0m sq.m. as of 31

December, 2016

– Served >1m property

owners and residents

– Average residential

property management

fee is RMB3.01 in 2017

(2016: RMB2.94)

A-Living projects

北京 Liaoning

SichuanChongqing

Yunnan

Shanxi

Guangdong

Hunan

Hainan

Shanghai

Jiangsu

Greenland projects

Shandong

Beijing

Hebei

Guangxi

HubeiZhejiang

Anhui

Henan

Increasing total contracted GFAIncreasing total GFA under management

24 30 34 426

16333

2435

50

78

0

30

60

90

120

150

2014 2015 2016 2017Agile 3rd Parties Greenland

(million sq.m.)16 – 17 growth rate 56.5%

By 2017, the Group had a total GFA under management of 78.34 million sq.m., an increase of 56.5% by 28.29 million sq.m.

compared to 2016.

Among the newly added floor space under management, 28.0% comes from Agile Group, 62.5% from independent third-

party real estate developers, and 9.5% from the acquisition of Greenfield Properties.

45 56 57 59

7 16

58

45

6373

126

0

30

60

90

120

150

2014 2015 2016 2017Agile 3rd Parties Greenland

(million sq.m.)

16 – 17 growth rate 71.8%

By the end of 2017, our contracted GFA to manage reached 126.1 million sq.m., increased by 52.7 million sq.m. from 73.4

million sq.m. by 2016, implying an increase rate of 71.8%.

The significant increase in the contracted GFA to manage was mainly due to the results of cooperation with third-party

property developers. In 2017, the contracted GFA to from independent third-party property developers was 41.7million

sq.m, which included approximately 22.5 million sq.m. of property management area and approximately 19.2 million sq.m.

of consulting services provided area, which in total accounted for 79.1% of the total new contracted area in 2017.

15

Dual-brand strategy2

A leading brand through enhanced competitiveness backed by dual-brand strategy

Source: CIA

Note:

1. According to CIA

Agile Property Management Features vacation property and large-scale property

management

Brand value of RMB 3billlion as of December 31, 20161

Greenland Property Services Features ultra-high-rise buildings and commercial

complex management

“Two-wheel driven”

Property management

Value-added services

Contracted to manage substantially all of the properties developed by Agile

Group including vacation properties since 1993

Provides one-stop value-added services, including positioning consultation,

design consultancy, sales assistance, advertising, property agency services and

home inspection

Acquired Guangzhou Yazhuo from Agile Group on 30 June 2017, to focus on

providing preliminary planning and property agency services, and Agile Group

will not build property agency teams for its projects

Property management

Value-added services

We have obtained GFA under management of 2.7m sq.m. as of 31 December

2017 through the acquisition of Greenland Property Services, including Wuhan

Greenland Center, the third highest commercial complex in the world

Agreed to deliver properties at least 7.0m sq.m. per annum, and to give A-Living

priority for an additional GFA of 3.0m sq.m. per annum of properties from 2018

to 2022

We have already secured in advance contracted GFA from Greenland Holdings

5.16m sq. m in the second half year of 2017.

A-Living will cooperate with Greenland Holdings in the following areas to build a

national-leading integrated services platform with international standards:

− community value-added services

− travel

− advertising

− property agency and home inspection，etc.

24.4 29.5

34.3

42.2

20.0 25.0 30.0 35.0 40.0 45.0

2014 2015 2016 2017

GFA of properties developed by Agile Group under our management(million sq.m.)

16

76 91

70 75 80 85 90 95

An expert in vacation property management and large-scale property management

3

Successfully develops a vacation property management business

4.19 4.04 4.07 4.13

2.70

3.20

3.70

4.20

4.70

2014 2015 2016 2017

(RMB / sq.m. / month)

Sources: CIA

Note：1. Tourist Attraction Rating Categories of China is a rating system used by the Chinese authorities to

determine the quality of the attraction relative to its peers in terms of safety, cleanliness, sanitation and

transportation. It is divided into five categories which are A (or 1A, the lowest level), AA (2A), AAA (3A), AAAA

(4A) and AAAAA (5A, the highest level).

73.4 (Score)

Pioneer in large-scale property management

Increase in scale: 12 projects under management each exceeded 1m sq.m. in GFA as of 31

December 2017

High entry barrier: Higher requirements for service quality

Diversified revenue source: The diversity gives rise to greater demands for value-added services

Hainan Clearwater Bay

La Cite Greenville Zhongshan

Contracted GFA of 14.8 million sq.m. as of 31

December 2017

GFA under management of 5.8 million sq.m. for 18

projects as of 31 December 2017

Strategically located in well-known tourist destinations

(AAAA level and above1) in Guangdong, Hainan,

Hunan and Yunnan and so on

Offers tailored one-stop community value-added services

to vacation property owners, covering all stages from

sales, delivering, move-in to vacation

For example, property buying vacation during sales stage,

property delivery reservation before delivery, one-stop

home inspection services during delivery, cleaning and

leasing services after delivery, featured local vacation

activities and leasing operations during vacation etc.

Zhongshan Kaiyin New Town:

Greater China Excellent Property

Management Project – GCIPM (2015)

Vacation property management Vacation property value-added services

Average management fees for A-Living’s

vacation properties

Overall satisfaction for A-Living’s vacation

property management services (2016)

A-Living Industry average

Leading Enterprise in Featured

Property Services in China –

Leading Brand in Vacation

Property Management awarded –

CIA (2017)

Ranked 1st among the Top 100

Property Management

Companies in terms of the

contracted GFA of vacation

properties to manage awarded –

CIA (2016)

17

Diversified value-added services

Provides multiple value-added services business,

including consultancy to property developers,

property agency, advertising, home inspection,

travel and O2O

Improves service quality and customer loyalty

Diversified property management portfolio and value-added services4

Diversified property management portfolio

Diversified

portfolio

Diversified

services

Non-residential properties GFA (2014-2017)

( ten thousand/ sq.m)

An integrated service spectrum not only improves customers’ satisfaction and loyalty, but also enhances resilience

Property management portfolio

Shopping

mall

Residential

Office

building

Hotel

Vacation

ultra-high-

rise office

buildingUrban

complex

138.6% 267.6%1535.6%

Growth rate

188.8 186.0 212.2

453.4 42.3 57.7 54.6

101.8

231.1 243.7 266.9

555.2

0.0

100.0

200.0

300.0

400.0

500.0

600.0

2014 2015 2016 2017

Non-property owners Property owners

Revenue from value-added services (2014-2017)

(RMB million)

5.5% 9.5%108.0%

Growth rate

Ranked #2 among the Top 100 Property

Management Companies in South China in 2016 in

terms of revenue from multiple operating services

#2

Ranked #6 among China’s Top 100 Property

Management Companies in 2016 in terms of

revenue from multiple operating services

#614.5 34.6 127.2

2,080.5

0.0

500.0

1,000.0

1,500.0

2,000.0

2,500.0

2014 2015 2016 2017Non-residential properties GFA

18

Integrated, excellent and convenient one-stop service platform65

Integrating online and offline resources to develop a one-stop service platform for improving customer experience and satisfaction

A-Steward APP

A-Assistant APP

A-Business APP

A-Steward WeChat Public

Account

Intelligent terminals

Online services

Intelligent building

management system

Smart home system

Smart parking system

Unattended convenience

stores

A-LIVING Experience Center

Offline services

One-stop service platform provides comprehensive services to customers

Efficient property

services

Convenient community

O2O life services

High-end

customization services

Neighborhood cultural

enrichment services

A-Steward APP, as the core of the comprehensive management platform, to

offer value-added services and deepen cooperation among peers which helps

identify acquisition targets. As of 31 December 2017, the APP

– covered all residential properties under management1

– A-Steward Alliance members jointly managed approximately 817 million

sq. m. of GFA, providing value-added services to several millions of

homeowners

– attracted over 287,000 registered users and over 110,000 active users

“A-Steward” Comprehensive

Management Platform

Note:

1. Excluding properties under Greenland Property Services’ management

19

Management digitalization, service professionalization,procedure standardization and operation automation

76

Streamline workflows, and improve efficiency and

specialized service

Realize visual monitoring of the service process

and centralized management of nationwide

operations

Improve operational

capabilitiesIncrease efficiency and

reduce labor cost

Divides the properties into different

levels, and sets up standardized service

provision procedures for each level

Applies a consistent set of standards to

achieve better and consistent quality control

Ensures quality of service by including

detailed quality standards

Obtains real-time access to multi-dimensional

data

Monitors overall operation status

and makes appropriate decisions based

on the data analysis

Sub-contracts certain property management

services to qualified third-party contractors

to make efficient use of professional in-house

personnel

Saves costs by reducing reliance on

manual labor

Employs automated equipment to

minimize human error

Apply consistent service procedures and

standards

Constantly seeking to improve the management system, enhance service quality and reduce costs, with an aim to become a

world-class living service platform

Focuses resources on key services

such as value-added services

Section 4

Future strategies


21

Increase business scale through strategic M&A and investments

High quality property management companies

Pursue M&A opportunities in property management companies which

are industry-leaders with high-quality assets,

can effectively increase business scale and regional coverage in the

short-term

Invest in areas related to resident services such as community services and

O2O through internal incubation, JV and setting up investment funds, etc.,

leading to industry innovation and development

Pursue investment and acquisition opportunities for professional companies,

including property agency, home inspection, advertising, travel companies

etc.

1

With foothold in Beijing, Shanghai and Guangzhou, strengthening

presence nationwide and expanding overseas

Strengthen market coverage in China and expand overseas

A-Living coverage areas

Strengthened or new

coverage areas with

Greenland Property

Services’ involvement

14 regional companies

of A-Living

Expansion route

9 regional companies

of Greenland Property

Services

Beijing

Nanjing

Shanghai

Xi’an

Chengdu

Yunnan

Shenzhen

Zhongshan

Guangzhou

Hainan

Agile Group mainly

engages in the

development of mid-to

high-end residential

and vacation properties

Greenland Holdings’

projects are located

across China and

globally

Continued to expand to

manage properties

developed by

independent property

developers in 2018

Coverage of A-living and expansion with Greenland

cooperation

M&A expansion

2

Strategic investments

Professional companies

22

Continue to enhance “A-Steward” platform and cooperation

with qualified suppliers, providing more convenient and

innovative sales channels to them

Increase the number and variety of suppliers, in order to

provide more choices and better services for property

owners, enhancing the reputation of A-Living

Develop diverse and differentiated value-added services to property owners and to non-property owners along the value chain

Continue to roll out “A-Steward” platform to form alliance with more

property management companies

A-Steward platform provides member companies with standard

mobile applications and cloud platform as well as customized

software services and intelligent hardware system

A-Steward platform can serve more clients via our member

companies, benefit from the strategic resource consolidation

A-Steward

platform

+

Value-added

services

Resident services

Bespoke services

A-Steward online

platform

Smart home services

Custodial management

services to vacant properties

Short and long term lease

services

Non-standard accommodation

management

Resident

services

Healthcare

Community

financial

services

Community

medical

services

Value-added services focusing on resident

services and property value management

Quality Communities

Focusing on the needs of property owners to diversify and

differentiate services, building quality communities

Suppliers

Property owners

Property value

management

Property management companies

Professional home

inspection services

Advertisement

design and media

placement

Product positioning

and property agency

solutions

consultation

On-site sale

management, property

sales agency

Prelimina

ry

planning

Developm

ent

Subseque

nt

MarketingDelivery

Provide sales assistance services

to property developers, including

− visitor reception

− display unit cleaning, security

and maintenance, and

− preliminary planning and

design consultancy services

Preliminary

planningDevelopment

Subsequent

Marketing

Sales

assistance

Property

agency

Home

inspection

Advertising

Develop new value-added services and provide comprehensive and full-cycle

services

Property developers

A-Steward platform covers all residential properties under management (excluding properties under Greenland Property Services’ management). We will

continue to expand into Greenland Holdings’ future projects, linking and realizing win-win situation for all relevant parties

Further market expansion of new businesses such as property agency, home inspection, advertising etc., by leveraging their own advantages to undertake

external businesses

23

Further strengthen the implementation of management digitalization, service specialization, procedure standardization and operation automation, and continuously improve management system

Ma

na

ge

me

nt

dig

itali

za

tio

n

Se

rvic

e

sp

ec

iali

za

tio

n

Pro

ce

du

re

sta

nd

ard

iza

tio

n

Op

era

tio

n

au

tom

ati

on

Digitalized management

to strengthen

management efficiency

Sub-contract labor-

intensive services

Standardize

management and

procedure

Employ modern

technology and upgrade

equipment to reduce

labor costs

Have established a centralized control center to realize automated management

of our communities and roll out systems such as parking management to

achieve full coverage

Will sub-contract more labor-intensive property management services to

qualified third-party contractors, to achieve efficient use of our professional

personnel and focus our resources on key featured services

Continue to update Agile Property Service Standardization Work Manual

Further deploy and upgrade automated equipment based on needs of a

property, including professional cleaning equipment such as large sanitation

trucks, and security equipment such as patrol robots

Overview Development strategy

Thank you!


a-living services co., ltd

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