Total GFA under Management Up 8.2% to 102.3 million square meters

HONG KONG SAR - Media OutReach Newswire - 22 March 2024 – Kaisa Prosperity Holdings Limited (the "Kaisa Prosperity" or the "Company", together with its subsidiaries, the "Group"; SEHK stock code: 2168) announced the audited annual results of the Group for the year ended 31 December 2023 (the "Reporting Period"). As one of the leading urban comprehensive service providers in China, Kaisa Prosperity actively responded to the changes in the market environment, and adhered to the principle of "striving for progress while maintaining stability, giving priority to efficiency", deepened its service, cultivated its business and conducted in-depth operations, and maintained a good momentum of steady and high-quality development through the dual wheel drive of "Organic growth + Independent expansion". The Group's management scale has reached a new level, which had its GFA under management increased 8.2% to 102.3 million square meters and the number of projects under management has increased from 673 to 720, establishing presence in 74 cities in 19 provinces. For the year ended 31 December 2023, the Group's revenue grew to approximately RMB1,794.3 million, of which revenue from property management services increased by 7.2% year-on-year to approximately RMB1,338.1 million. Gross profit for the year ended 31 December 2023 increased by approximately 2.2% to approximately RMB481.3 million from approximately RMB471.1 million for the year ended 31 December 2022. Cash and cash equivalents increased by approximately 16% from RMB247.3 million to RMB286.8 million, representing a significant improvement in the Company's operating cash flow. Consolidated gross profit margin improved from 26.4% to 26.8%. Independent Third-PartyProperty Business Sustained Strong Growth Momentum During the Reporting Period, the Group continued to focus on the "Whole portfolio and Whole cycle" (全業態、全周期) high-quality service scenarios, and vertically conducted in-depth research on the scope of its services and horizontally extended their boundaries, continuous enrichment of the property sector. During the period, revenue from property management services continued to increase, mainly attributable to the increase in the total GFA under management resulting from the business expansion through organic growth and independent third-party market development. The Group further increased the proportion of cooperation on properties developed by independent third-party property developers. During the Reporting Period, the Group managed approximately 60.4 million sq.m. of GFA of properties developed by independent third-party property developers, representing an increase of approximately 3.6% from approximately 58.3 million sq.m. as of 31 December 2022. In addition, the revenue of projects for properties developed by independent-third party developers increased by 16.1% to approximately RMB810.1 million. The proportion of related parties transaction decreased from 19% to 15%, further reducing the Company's reliance on related parties and increasing prominence of operational independence. Construction of 15-minute Convenient Urban Living Circle and Creation of a Second Growth Curve While foundational services are the fundamentals of property management enterprises, value added services shall be increments of property management enterprises. By expanding and deepening value-added services, creating a "second growth curve" became an inevitable choice for property management enterprises. During the Reporting Period, the Group provides diversified products and services to owners and residents through K Series Living to meet their ever-changing daily needs. Kaisa Prosperity's Neighborhood Living Circle combines "K Series Living Mall" (小K生活商城) (online) and K Series Living Exhibition Hall (offline) to build a comprehensive, one-stop and high-quality community value-added service ecosystem. For the period ended 31 December 2023, the Group's revenue generated from community value-added services amounted to approximately RMB176.1 million, representing an increase of 13.2%. In the future, K Series Living Exhibition Hall will continue to be expanding quickly to the communities under the management of Kaisa Prosperity across the country. The Neighborhood Living Circle will gradually promote the improvement and popularization of the neighborhood platform, and contribute to serving the people's basic livelihood, promoting consumption upgrading, and smoothing the community economic microcirculation. Smart Solution Business Continues to Upgrade Products and Expand Product Portfolio Shenzhen Jiake Intelligent Technology Co. Ltd.* ("Jiake Intelligent") (深圳市佳科智能科技有限公司), a smart solution service provider under the Group continued...