FY2020 Interim Results Presentation

A-Living Services Co., Ltd. 3319.HK

Lifelong Caring

2

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

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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.

Disclaimer

Results

Highlights

01

4Remark: For the six months ended 30 Jun 2020 (Currency: RMB)

^Excluding the effect of the amortisation of intangible assets due to the M&A

* Excluding the contribution from consolidation of CMIG PM

# Including subsidiaries of CMIG PM (unaudited)

Results Highlights

Leap-frog growth

Optimized revenue structure

Improved efficiency through lean management

GFA scale exceeded 600mn sq.m.

Nationwide layout with diversified business portfolio

Widely recognized by markets

• Revenue 4,001.6mn +78.5%

• Gross profit 1,275.4mn +53.8%

• Net profit 873.2mn +53.6%

• Core profit attributable

to shareholders^778.6mn +41.1%

• Property mgt

services

2,619.6mn 65.5%

• Property owners

VAS

422.7mn 10.5%

• Extended VAS 959.3mn 24.0%

• Consolidated CMIG PM and achieved breakthroughs in terms of

geographical coverage and business portfolio in market expansion. Newly

obtained contracted GFA through third-party expansion was 23.02mn sq.m..

The proportion of contracted GFA from third-party developers to total

contracted GFA increased to 74.3%

• Total contracted GFA: 687.3*mn sq.m.

• Total GFA under management: 548.1*mn sq.m.* Incl. GFA of New CMIG PM, associates and consultant projects

• Nationwide layout was improved with footprints in 29 provinces, municipalities

and autonomous regions. Up to 55% projects were located in tier-one and

new tier-one cities

• Business portfolio covered residential properties, commercial offices, public

buildings, industrial parks, etc. Among which, 44.4% were public buildings

• Established the fifth business segment – City Services, entering into city

management industry with market size over a trillion yuan

• Through lean management and big data-backed operation, the

operating efficiency of self-owned projects increased significantly

with an increase in NP margin of 0.7* p.p.

• Through systematic post-investment integration and targeted

empowerment, the acquired companies accelerated market

expansion in 1H2020, and the operating NP margin of the acquired

companies increased by 1.5# p.p. y-o-y

• Became one of the top five leading players in the industry by ranking

the 4th out of "Top 100 Property Management Companies in China”

• Formed the 18-brand matrix, among which, 9 brands ranked among the

Top100 nationwide; recognized as a leading brand in the provision of

public building services

• Included in the HSCI, eligible stocks for Shenzhen-Hong Kong Stock

Connect and MSCI China Index

% of revenue

Results

Summary

02

RMB ’000 1H2020 % of revenue 1H2019 % of revenue Change

Revenue 4,001,627 2,241,228 +78.5%

Cost of sales (2,726,261) (68.1) (1,411,776) (63.0%) +93.1%

Gross profit 1,275,366 829,452 +53.8%

Gross profit margin 31.9%^ 37.0% (5.1 p.p)

Selling and

marketing costs(28,991) (0.7%) (18,173) (0.8%) +59.5%

Administrative expenses (221,059) (5.5%) (124,737) (5.6%) +77.2%

Net profit for the Period 873,184 568,391 +53.6%

Net profit margin 21.8%# 25.4% (3.6 p.p)

Profit attributable to the

shareholders of the Company757,954 541,314 +40.0%

Core profit attributable to the

shareholders of the Company778,615* 552,012* +41.1%

Earnings per share

(RMB)0.57 0.41 +40.0%

6

Financial Highlights

^ If excluding the effect of the amortisation of intangible assets due to the M&A, the core gross profit margin was 33.1%

# If excluding the effect of the amortisation of intangible assets due to the M&A, the core net profit margin was 22.8%

* Excluding the effect of the amortisation of intangible assets due to the M&A

7

Revenue Net Profit Net Profit Margin

25.4%

26.1%

Consolidation of CMIG PM Reflected on Financial Statement

2,241

2,890

1,112

4,002

78.5%

1H2019 1H2020

Contribution

from consolidation of

CMIG PM

Excluding

CMIG PM

568

753

120

873

53.6%

1H2019 1H2020

Contribution

from consolidation of

CMIG PM

NP margin excluding the contribution

from consolidation of CMIG PM

1H2019 1H2020

0.7 p.p.

(RMB million)

Excluding

CMIG PM

1,227

808

206

2,620

959

423

0

500

1,000

1,500

2,000

2,500

3,000

3,500

Property Mgt Services Extended VAS Property Owners VAS

1H2019 1H2020

8

Detailed Figures of Three Business Lines

326 398

106

574 469

232

26.6%

49.2%

51.4%

21.9%

48.9%

55.0%

0

500

1,000

1,500

Property Mgt Services Extended VAS Property Owners VAS

1H2019 GP 1H2020 GP

1H2019 GP Margin 1H2020 GP Margin

54.8%

16.9%

19.1%

9.2%

Property Mgt Services

Sales Center Property Mgt Services

Other Extended VAS

Property Owners VAS

1H2019 1H2020

65.5%10.7%

13.3%

10.5%

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

Significantly Improved Revenue Structure

428b

380a428a

531b

a Sales Center Property Mgt Services

b Other Extended VAS

(RMB million) (RMB million)

RMB '000 As of 30 Jun 2020 As of 31 Dec 2019 ChangeContribution

from CMIG PM

Change (excl.

contribution from

CMIG PM)

Total assets 12,830,250 9,387,515 +36.7% 2,836,013 +6.5%

Total liabilities 5,213,768 2,881,830 +80.9% 1,824,726 +17.6%

Total equity 7,616,482 6,505,685 +17.1% 1,011,287 +1.5%

Goodwill 2,133,170 1,370,928 +55.6% 762,242 --

Trade and other

receivables3,211,934 2,189,347 +46.7% 1,280,829 (11.8%)

Trade and other payables 3,280,099 1,756,980 +86.7% 1,129,303 +22.4%

Operating cash flow 1,099,223* 537,028^ +104.7% 250,562# +58.0%

Cash and cash

equivalents4,882,015 4,207,260 +16.0% 782,855 (2.6%)

9

Other Financial Figures

* For the six months ended 30 June 2020

^ For the six months ended 30 June 2019

#Cash flow of CMIG PM for four months from March to June 2020

Business

Review

03

11

Differentiated Positioning to Achieve Rapid Growth

Large-scale

platform with

multi-brand

First-mover

advantages in

comprehensive

business

portfolio

Strong

market-oriented

expansion

capability

Improvements

in quality and

efficiency

through lean

management

• Established a leading position by

actively participating in the industry

integration and consolidation, and

evolved into a large-scale property

management platform with contracted

GFA of more than 600mn sq.m. to

enjoy economies of scale

• A united force was formed with 18

brands covering various business

portfolios in a nationwide layout

• 9 brands under A-Living ranked among

the Top 100 in China with great market

influence

• Kept abreast of the industry trend and made a

foray into non-residential businesses in

advance to establish its first-mover advantages

in the niche markets with high entry barrier,

and to extend source of income

• Formed a balanced business portfolio with

public buildings, residential properties and

commercial offices accounting for 44%，41%，11% respectively, in terms of GFA under

management. Non-residential business has a

faster conversion rate and a stronger

resistance to cyclical fluctuations

• Community VAS and featured VAS for public

buildings developed together to create a whole-

industry-chain VAS for city life

• Accumulated rich experience through years

of market-oriented development

• Developed strengths arising from a

balanced expansion with multi-brand

strategy and a comprehensive business

portfolio. Obtained 23.02mn sq.m. of newly

increased contracted GFA through third-

party expansion and the proportion of

contracted GFA from third-party developers

to total contracted GFA increased

significantly to 74.3%

• Adopted an integrated investment and

expansion approach with flexible expansion

and cooperation models and implemented

an attractive incentive mechanism

• Underscored the four indicators of “quality,

scale, profitability and cash flow”

• Realized standardized export and lean

management through informatization

intelligent system

• Established a post-investment empowerment

system for the acquired companies to help

them improve operating efficiency significantly

• The Group structure has been continuously

optimized to become a flat organization.

Attached great importance to cost reduction

and efficiency improvement, so that the

administrative expenses were properly

controlled.

41.0%

44.4%

11.2%

3.4%

Residential properties Public buildings Commercial buildings and complex Others

By Portfolio

37.2%

26.7%

10.2%

8.0%

2.8%

2.7%12.4%

Yangtze River Delta city cluster Greater Bay Area Chengdu-Chongqing city cluster

Lanzhou-Xining city cluster Harbin-Changchun city cluster Northern Bay city cluster

Others

By Geographical Coverage

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

Breakdown of GFA Under Management

12

Property management services recorded a revenue of RMB2,619.6mn, up 113.4% y-o-y, accounting for 65.5% of the total revenue,

with a GP margin of 21.9%, decreased by 4.7 p.p. y-o-y

Property Management Services

298.8

181.7

77.1 40.1

491.3

364.8

78.1 48.4

0

100

200

300

400

500

600

31/12/2019 06/30/2020

176.6

114.2

53.8

8.6

353.4

286.3

57.0 10.0

0

100

200

300

400

500

31/12/2019 30/06/2020

Third-party (Incl. M&A) Agile GreenlandTotal GFA Under Mgt

(% of GFA) (81.1%) (16.1%) (2.8%)(64.7%) (30.5%) (4.8%)

Agile GreenlandTotal Contracted GFA

(15.9%) (9.8%)(25.8%) (13.4%)(% of contracted GFA)

Third-party (Incl. M&A)

(74.3%)(60.8%)

1H2020

M&A

158.9

1H 2020

M&A

160.1

Over 548mn^Over 687mn^

* Excl. GFA of consultant projects

^Incl. New CMIG PM, associates and consultant projects

*

*

*

*

13

Property Mgt Services – All-round Breakthrough in Expansion

Breakthroughs in obtaining mega projects

Northeast Asia International Expo City: made first foray into large-

scale Expo city

Gulf of Greenland in Ningbo Hangzhou Bay：Ningbo’s largest real

estate project, situated in the world-class city cluster

Beijing-Shanghai Highway

Xuanbao Service Area

Won the bid of the Group’s first highway service area

project as a new breakthrough, setting an example for the

subsequent development of “property management +

highway” service

Lhasa Customs

Won the bid of Lhasa customs project, through

which the Group almost realized a full coverage of

all provincial-level administrative regions in China

Continued mixed-ownership reform of SOEs, establishing Gansu

Culture Tourism A-Living Property Management Services Co., Ltd.

joint with Gansu Culture Tourism Group Co., Ltd., to form an

intelligent comprehensive cultural tourism service platform

Gansu Culture Tourism

A-Living Property Management Services

Large-scale projects and

record-breaking skyscrapers

Record-breaking height

Block B, Xi’an Energy IFC 301m

Luohe Central Plaza 200m

Block D, Xi’an Energy IFC 150m

Cross-portfolio breakthrough and

cross-region expansionParticipation in

mixed-ownership reform of SOEs

All-out efforts in market expansion with diversified project sources. Newly increased contracted GFA obtained through

third-party expansion exceeded 23mn sq.m and newly obtained annualized contract value was over RMB690mn.

Qingdao Qinglv City Services

Established a JV with Qingdao Cultural Tourism Group through

mixed-ownership reform to provide urban sanitation, landscaping,

urban appearance and lighting management, and other city

services, covering landmark projects in different portfolios in the

SCO Demonstration Zone

14

Property Mgt Services – Boosted Non-residential Business

In 1H2020, the Group boosted its businesses in public buildings, commercial offices and other niche markets, obtained more than 10 projects with ten-

million-yuan scale. Acquired companies obtained contracted GFA of 12.59mn sq. m., and newly obtained annualized contract value was approx. RMB410mn

Qingdao International Convention Center

59,000 sq.m.

Shenzhen Public Security Bureau Futian Branch

192,000 sq.m.

China Taiping Insurance Shanghai Office Zone

30,000 sq.m.

Agricultural Bank of China R&D Tower

27,000 sq.m.Shenzhen Dayun AI Town

601,000 sq.m.

Shenzhen Bijiashan Park

1,470,000 sq.m.

The First Affiliated Hospital of Guangxi Medical University

160,000 sq.m.

Hefei Metro Line 5

Guangzhou Zengcheng Library

33,000 sq.m.

Government

office

Public

venue

Industrial

park

Commercial

office

Medical

institution

Park and

scenic spot

Educational

institution

Transportation

facility

15

Property owners VAS recorded a revenue of RMB422.7mn, up 105% y-o-y, accounting for 10.5% of the total

revenue, with a GP margin of 55%, increased by 3.6 p.p. y-o-y

Community Asset Management

Parking lot operation / Community advertisement / Clubhouse operation / Rental and leasing services

Living and comprehensive Services

• Online and offline advertising spaces were integrated to form the customized

solutions

• Cultivated channel cooperation and upgraded operation model to enjoy an

operating premium

Home Improvement

Turnkey furnishing / House appliances / House decoration / House renovation

“Xiaoya” series homecare services / “Lexianghui” series retail and group purchase services / Coordinated

development of VAS services for public buildings

• Accelerated the incubation of homecare division, adopted diversified cooperation

models and improved the flexible shift mechanism

• Formed strategic cooperation with JD Alliance, Vinda Group and other high-quality

brands to jointly explore the potentials of community economy

• Provided featured VAS for 2B and 2G customers, including catering and logistics

services

• From turnkey furnishing, to installation of home appliance, to upgrade and renovation, the

business achieved full life cycle coverage

• Innovatively adopted online live streaming sales to target new property owners and convert

traffic into sales

Home

Improvement

Community

Finance

Rental and Leasing

Services

Homecare

Services

Community New

Retail

Resource

Operation

360-degree Community VAS

Deep Integration of O2O Channels

Recorded a revenue of RMB95.1mn, up 9.3% y-o-y, accounting for 22.5% of the

revenue from property owners VAS

Recorded a revenue of RMB270mn, up 270.0% y-o-y, accounting for 63.9% of the

revenue from property owners VAS

Recorded a revenue of RMB57.5mn, up 24.5% y-o-y, accounting for

13.6% of the revenue from property owners VAS

Property Owners VAS – Operating Model Upgrade

16

Actively developed new retail in communities

Homecare services brand building

• Became an official partner of JD Alliance and connected A-Steward to JD Mall, providing owners with a more

accurate, more affordable and more convenient shopping experience

• Developed themed group purchases of fresh food, seasonal food, custom wines, flowers, etc. in communities to

satisfy property owners’ diversified needs of food, clothing, housing, travel, shopping and entertainment.

• Upgraded car care service and provided exclusive fuel discount benefits to property owners

In-depth operation of community space

• Introduced high-quality brands of

community nursery services to

address the keen demands of

property owners

• Initiated secondhand property

leasing services and achieved

excellent performance in the

regional pilots

• Provide convenient services that

cover the “last mile” to every

property owner‘s doorstep,

including parcel pick-up locker,

drinking water vending machine,

and smart vending machine, etc.

• Accelerated the incubation of

homecare division and the

upgrade of homecare brands

• Cooperated with well-known

brand of home appliance repair -

Zhuomuniao to enhance

professional service capabilities

• Enriched product types, launched

a variety of home cleaning

services that are widely

welcomed by property owners

Exploration of featured VAS

for non-residential portfolio

• Provided tailor-made VAS to 2B

and 2G customers

• For public buildings VAS,

promoted group catering,

commuting services and

material procurement services

• For commercial offices VAS,

explored the customized

services for enterprises,

conference services, new retail

and group purchase, car after-

sales services, etc.

Partner with:

Property Owners VAS – Developed Economic Ecosphere

17

Extended VAS recorded a revenue of RMB959.3mn, up 18.8% y-o-y, accounting for 24% of the total revenue,

with a GP margin of 48.9%, decreased by 0.3 p.p. y-o-y

Extended VAS

Sales Center

Property

Management

Sales AgencyHome Inspection,

Technology and

Others

• Concierge and reception

• Security services

• Site maintenance

• Display equipment maintenance

• Further improved quality through lean management

• Extended service scope to provide public area inspection and pre-completion inspection

• Stepped up the development of intelligent community

• Product positioning and marketing consulting

• Property sales agency

• Launched referral marketing services to make full use of channel resources in an effort to boost sales

Laid a foundation and outlined advantages for undertaking subsequent property management services

Provision of integrated marketing services for Agile and third-party property developers

Provision of sales center

management services

for property developers’

different types of projects

Enhanced the synergies

among property

developer, property

management companies

and property owners

Full-cycle management Asset-light model One-stop service

Accounting for 44.6% of the

revenue from extended VAS,

up 12.8% y-o-y

Accounting for 14.2% of the

revenue from extended VAS,

up 55.9% y-o-y

Accounting for 41.2% of the

revenue from extended VAS,

up 16% y-o-y

Operation

Review

04

19

Improved Quality and Efficiency in Four Major Aspects

Attached importance to cash flow and risk control

• Determined expenditure budget based on income in advance and

monitored cash flow in a real-time manner

• Strengthened internal control and risk alert mechanism to improve

corporate governance

Service

Quality

Management

Scale

Profitability

Cash Flow

Achieved growth by scale development

• Strengthened capabilities of third-party expansion and deepened the

integration of investment and expansion approach

• Expanded market jointly with 18 brand matrix to coordinate market resources

Improved profitability through lean management

• Upgraded information platform and improved intelligent management to

keep management cost under control

• Generated economies of scale through centralized procurement, flexible

shift mechanism and cost sharing

• Optimized KPI assessment system and improved per capita efficiency

Laid a solid foundation with high quality

• Continued to improve service quality through three-level quality control

system and the export of standardized operation

• Customized service products with different portfolio features to enhance

customer stickiness

20

Optimized Lean Management and Remained Diligent in Receivables Collection

Lean Management

Visible data monitoring

Operating profit

margin of projects

significantly

improved

Refined cash flow management

Operating cash flow in 1H2020 was nearly RMB1.1bn, representing an increase of 104.7% y-o-y

Regular cash flow

analysis reportWeekly report

mechanism

Management of

cash flow

statements

568

873

537

1,099

1H2019 1H2020

Net profit

Operating cash flow

Full coverage of

business

Full-dimensional

presentation

Problem identification

through data analysis

Result-oriented process

control

Operating

Efficiency

Revenue

Net profit

Regions and dimensions/Time tread/Ranking and analysis…

Scale

Expansion

Business scale

Contract amount

Cost Control

Cost analysis

Expenditure

control

Cash Flow

Collection rate and overdue

clearing rate

Sales receivables

Cash flow

(RMB million)

21

Post-Investment Integration with Remarkable Results

Public services

management platform

Market synergy

Investment and

expansion

Information

system

Strategic layout

Financial analysis

Appraisal system

VAS

Empowerment on

efficiency

Incentive

mechanism

Cultural integration

Standard

establishment

Experience sharing

Integration of

projects through

market mechanism

Demand research

and systemic

implementation

Integration of

performance and

finance

Rolling forecast

Implantation of A-

Steward

and products

Manpower review

Brand strategy

Quality improvement

Export of standards

Fully empowered

the acquired

companies

Clearly defined duties and authority

Professional

integration

Long-term incentive

scheme

Comprehensive

appraisal

Built management and control system in top level, optimized

authorization structure and clearly defined the

management responsibilities for major issues with

flexibility in daily operation

Public services functioned as a post-investment management

platform to connect acquired companies with various

functional divisions in business operation

Set long-term incentive scheme covering core management

team of acquired companies and benchmarked remuneration

scheme for the same interest

Established a comprehensive performance appraisal system

to carry out monthly business reporting and quarterly

performance analysis meeting

Acquired companies

in 1H2020• Newly increased contracted GFA:

12.59mn sq.m.

• Newly increased GFA under

management: 10.26mn sq.m.

• Renewal rate: 95%

• Average price hike: 7.2%

• NP margin increased by 1.5* p.p.y-o-y

* Including subsidiaries of CMIG PM

(unaudited)

22

Innovative Management with Appropriate Incentives

Long-term incentive scheme and

alignment of long-term interests

Partner mechanism to provide clear

promotion paths

• Implemented a long-term incentive

scheme for senior management after

the approval of H share full circulation

• Strengthened the alignment of interests

of the core executives and the Group

• Implemented a multi-level incentive

scheme, covering the executives of the

acquired companies and key business

personnel

• Formed a partner mechanism and

promoted the integration of

investment and expansion to secure

improvements in quality and quantity

• Enhanced competitiveness through

shared benefits and responsibilities

• Promoted “district-based sub-

contracting” mechanism to provide

clear promotion paths for key elites

• Established an attractive, flexible and

market-oriented remuneration

scheme to stimulate the motivation of

the team

• Implemented the flexible shift

mechanism and outsourcing practices

to reduce cost, increase efficiency

and improve per capita performance

Adoption of market-oriented

remuneration scheme to improve

per capita performance

Stimulate the potential through alignment of long-term interest

Improve per capita efficiency to build a wolf-like team

23

Top 100 Property

Management

Companies in

China

TOP4

A Leading Brand in

the Provision of

Comprehensive

Public Building

Services

9 brands ranked

among Top 100

Companies in

China

MSCI

ESG”

Rating

A-level

A member of HSCI,

eligible stocks for

Shenzhen-Hong

Kong Stock

Connect and MSCI

China Index

Well-Recognized Brand Strength

Ranked 4th out of “2020 Top 100 Property Management Companies in China”

Ranked 1st out of “2020 China Top 100 Leading Property Management

Companies in terms of Growth Potential”

9 brands ranked among Top 100 Companies in China with their

excellent comprehensive strengths

2020 Leading Specialized Property Management Company in China

– A Leading Brand in the Provision of Comprehensive

Public Building Services

A constituent of the HSCI (Small-Cap)

Included as eligible stocks for Shenzhen-Hong Kong Stock Connect

A constituent of MSCI China Index

MSCI ESG “A” Rating

Highest rating in the industry

Large Scale

Excellent Quality

Well-known Brand

Good Reputation

24

Demonstration of Value in Epidemic Control and Prevention

Responded promptly and established a three-

level prevention and control mechanism

• United seven regional office and 18 brands as a

cohesive force, formed a special task team and

established a three-level epidemic prevention and

control mechanism

• Established 24-hour epidemic reporting mechanism

for regional executives and project managers

• Formulated standards and conducted on-site

inspections to ensure the full implementation of

prevention measures on the frontline

Took the lead in the industry and

stood on the front line

• Took the lead in compiling the Operation Guidelines

for the Prevention and Control of COVID-19 in the

Residential Property Management Area (Trial)”

published by the China Property Management

Association, which became an industry benchmark for

operation guideline

• Safeguard the communities by putting lockdown in

place. Strengthened disinfection measures and

publicity to protect the health of property owners

Proactively responded to challenges, kept cost

under control and explored potential opportunities

• Cooperated with high-quality suppliers to resume fresh

food delivery ahead of schedule and provided customized

services to meet the needs of property owners

• Optimized budgeting through centralized procurement,

explored the opportunities for improving profitability and

actively participant in the tax and insurance relief scheme.

• Formulated an effective expansion plan to catch up with

the progress and determined to achieve the target

Future

Outlook

05

Strategic Upgrade Along the Entire Industry Chain

26

Comprehensive services

for residential properties360-degree

community VAS

Optimize business portfolio and industrial chain layout to become a leading service platform with

5 major business segments and an 18-brand matrix

A-Living Smart City Services Co., Ltd

Stock code：3319.HK

Comprehensive services

for public buildingsComprehensive services for

high-end commercial officesComprehensive city

management platform

27

Intelligent City Management Platform

Market outlook

• City service is moving towards market-oriented development and undergoing industry consolidation, while the absence of a

comprehensive city management platform indicating there is an untapped market with market size over a trillion yuan.

• City comprehensive management is moving in a direction of specialization, refined management and market-oriented

development. Leading players with good reputation and comprehensive business portfolio in the industry enjoy absolute

advantages in development.

Industry features

• Asset-light operation; high collection rate; relatively long contract term; high annualized contract value per project

• Synergies between city service and property management business can be generated through centralized procurement,

flexible shift mechanism and sharing of market sources.

Expansion strategy

• Seek opportunities for government-enterprise cooperation, mixed ownership reform of SOEs, and strategic

cooperation in this field

• Seek opportunities for acquiring regional leading municipal sanitation and city service companies with a strong growth

momentum

• Set up an individual business segment and build a dedicated team to achieve organic growth

Objectives

• Enter into city services ahead of industry players to size the opportunities for industry integration, thus creating a

growth driver

• Achieve rapid growth and become one of the leading players in the comprehensive city management market

Scope of services

• Backed by information and data management platform, the city’s public resources, common areas, and public

facilities will be managed in a centralized manner

• The scope of services covers municipal sanitation, management of road facilities and equipment, maintenance of urban

order, comprehensive management of the living environment, management of public venues and facilities, and other

convenient services for city life, etc.

Smart city

services and

operation

Urban-rural

integrated

sanitation

IoT + waste

sorting

Investment and

construction of

urban

environmental

industry

Comprehensive

solution for

ecological

environment

28

Accelerate Expansion

New

business

segment

Multi-

channel

Business

integrationEmphasis on

synergies

Look for quality target of M&A in

industry consolidation

Continue to look for high-quality property

management companies that can improve

A-Living’s geographical coverage and enrich

its business portfolio, especially those in the

niche markets with high barriers and armed

with a wide brand moat

Develop new business segment

– city services

Establish the fifth strategic business

segment to break through scope of

business, explore the blue ocean market

and create a new growth driver, thereby

evolving into a comprehensive operator for

intelligent city services

Build multi-channel integration of

resources

Keep pace with the industry development and

actively participate in the mixed ownership

reform of SOEs;

Introduce resources from government and

SOEs；Take advantage of property developers’

resources network to realize collaborations

between segments and seek for business

opportunities

Market expansion in all business

portfolios and create synergies

through empowerment

Accelerate the enhancement of the Group’s first-

mover advantages in various niche markets,

fully empower all brands under A-Living,

strengthen the market coordination, and assist

the acquired companies in achieving rapid

growth

29

Performance Boosters: Endogenous Development and Lean Management

Focus on endogenous development

Improve efficiency through lean management

• Strive for perfection in the service quality, improve property owners’ experience

and strengthen customer stickiness

• Sort out projects to be fully prepared for price hike in an orderly manner

• Build the VAS platform in a vertical direction and increase the penetration rate

with multi-portfolio synergy

• Implement lean management in all dimensions to improve the profitability

• Transform from labor-intensive business to technology-backed and

intelligent business

• Adopt cost-effective operation and flexible shift mechanism, and form the

cross-regional economies of scale

Traffic

platform

Community

channel

Become a community ecosphere platform with huge traffic

and a GFA of more than 600mn sq.m., convert traffic into

revenue, and integrate cross-regional resources to realize

economies of scale

Integrate the VAS industrial chains for 2C, 2B and 2G

business and coordinate the development of VAS in various

business portfolios

Portfolio

collaboration

Strategic

cooperation

Make full use of information and resources to meet the property owners’

needs, give full play to the advantages in cost-effective and convenient

logistics and proactively explore the upstream supply chain to provide

direct supply channels to the community with integrated marketing and

sales

Adopt flexible approaches for cooperation and introduce

well-known brands and strategic partners, and fully develop

community economy with an asset-light model

30

Ideal life

creator

Service provider for

community VASAsset-light and platformized operation

Life services

platformCity services

platform

Innovation

incubation

platform

Innovative Operation of Community Economy

Lifelong Caring

A-Living Services Co., Ltd.