Revenue Increased by 38.3% YoY to RMB960 Million

Profit for the Year Increased by 111.4% YoY to RMB70.22 Million

GFA under Management Increased by 50.1% and Contracted GFAIncreased by 39.0%

Various Business Performances Continue toHit Record High, Future Development Prospects Are Promising

[Hong Kong, 23 March 2021] On  23 March 2021, A leading enterprise in theproperty management industry in Nanjing and Jiangsu Province, the PRC, YinchengLife Service (1922.HK),announced its annual results for the Period ended 31 December 2020 (the “Period”).

2020 was a year full ofchallenges and opportunities to the Group. Under COVID-19 pandemic, as thefrontier of anti-epidemic works, property management was vital in strengtheningthe safety line for joint efforts in defending and controlling the pandemic,thus receiving great attention from society by fully demonstrating its socialvalue. As the first year of listing of Yincheng Life Service, the companyadjusted its work deployment flexibly during the year, spared no effort intaking challenges. During the period, the company's revenue, net profit, grossprofit margin and other core data showed brilliant performance, the GFA undermanagement exceeded 30 million for the first time and ranking the 24th amongthe China Top 100 Property Management Companies.

Performance continues to hitnew highs and profitability continues to improve

The increase in revenueand core net profit by 38.3% and 111.3% respectively

In 2020, the Group recorded an operating income ofRMB960 million (2019: RMB700 million), representing a year-on-year increase of38.3%. Revenue from the provision of property management services increased by39.6% from RMB550 million for the year ended 31 December 2019 to RMB770million, accounting for 80.2% of total revenue. And revenue from the provisionof community value-added services increased by 33.0% from RMB140 million forthe year ended 31 December 2019 to RMB190 million, accounting for 19.8% of thetotal. Profitin 2020 was approximately RMB70.2 million, representing an increase of 111.4%as compared to 2019; and an increase of 53.6% as compared to RMB45.7 million, profitbefore deduction of listing expenses in 2019. Net profit margin increased to7.3%. The Group’s gross profit increased by 45.1% to RMB160 million, with thegross profit margin of 16.9%.

Continue to expand thebusiness scale, marketization ability highlighted by distinctive characteristics

Market expansion byadhering to the strategy of further developing the market in Yangtze RiverDelta Megalopolis

The long-term strategy of the Group is “Furtherdevelop the market of wealthy cities in the Yangtze River Delta with Nanjing asthe regional centre” and we will solidify our position in Nanjing by activelyimplementing the strategy of “Increase presence in Nanjing, expand the marketin the southern part of Jiangsu and explore the market in Huaihai district” onone hand and secure footholds in more potential markets on the other hand. During the Review Period, the Group pioneered to citieslike Wenzhou, Yancheng and Suqian to further expand its presence. As at 31December 2020, the Group’s projects covered 16 cities in the Yangtze RiverDelta Megalopolis. Among them, there are 392 contracted projects and 369projects under management, representing a year-on-year increase of 47.9% and54.4%, respectively. The number of residential projects and non-residentialprojects was 162 (2019: 116) and 207 (2019: 123), respectively.

The company also maintainedthe industry-leading position in Nanjing and the Group’s GFA under management inNanjing exceeded 26 million sq.m., representing a year-on-year increase of39.0%. In respect of the regions other than Nanjing, the GFA under managementexceeded 10 million for the first time and reached 13 million sq.m.,representing a year-on-year increase of 79.3% and accounting for 32.9% of theGroup’s total GFA under management.

Uphold our way of marketisation and maintain ouradvantage as a “second-hand project expert”

The Group has begun its way of marketisation byestablishing an innovative business model of “service alignment, businessmodularisation, module professionalisation and management informatisation”, securing third-party developer projects in the market on ourown, thereby building up good reputation gradually and gaining the trust andrecommendation of customers.As at 31 December2020, both the preliminary contracts secured from property developers andproperty owners’ associations increased substantially, and the related GFAunder management increased by 45.9% and 51.4%, respectively. It is worthmentioning that, in respect of the preliminary projects, the GFA undermanagement secured from third-party developers exceeded those from YinchengInternational Holding Co., Ltd. and its subsidiaries (i.e. the parent group),showing that other than the steady supply of projects from “Yincheng series”,the property management capability of the Group was well recognised by otherdevelopers.

The GFA under management secured fromcontracts entered into with property owners’ associations accounted for 77.3%of the Group’s total GFA under management, of which the GFA under managementsecured from the non-Yincheng-series property owners’ associations in themarket (the “Second-hand Projects”) amounted to 27.6 million sq.m. (2019: 17.4million sq.m.), accounting for 70.4% of the total GFA under management. ForSecond-hand Projects, the whole process, ranging from securing, operating and to realising profits, wasa big challenge to the integrated capability of property managemententerprises. Thanks to the Group’s business model featuring detailedmanagement, modulisation and professionalisation as well as the persistence andcommitment of the staff to providing quality services, the Group managed to standout from the intense market competition and satisfied all the requirements ofdemanding customers.

Besides, the Group established three wholly-ownedprofessional service companies to provide customers with services like installation,repair and maintenance of specialised elevators and escalators, house repair, placement of indoor greeneries, greenerymaintenance of municipal landscaping projects, design and construction oflandscaping facilities as well as the installation and repair of electronic andintelligent engineering, thereby further enhance the comprehensivecompetitiveness of the group.

As at 31 December 2020, the contracted GFA and GFAunder management were RMB42.77 million sq.m. and RMB39.14 million sq.m., representinga year-on- year increase of 39.0% and 50.1%, respectively. The proportion ofGFA under management secured from third-party property developers maintained ata high level in the industry, increasing by 3 percentage points to 82.0%, whichonce again demonstrated the Group’s excellent capability in market expansion.At the meanwhile, the renewal rate of the Group maintained at a level as highas 94.1%, general customer satisfaction was 86; The integrated collection rateof the year of residential projects was 91.3%. The collection rate fornon-residential projects was 93.0%. The Group‘s outstanding performance duringthe COVID-19 pandemic was highly acclaimed by property owners, and thepre-collected property fees of the Group during 2020 reached a record high at39.2%.In terms of number of households, more than 40% of property ownerspre-paid the property management fee for the next year.

Two drivers – Property management and communityvalue-added services

Enrich the non-residential segment by entering intothe management of hospital and

commercial property segment

Regarding the basic property management services, theGroup stepped up its efforts on expanding the non-residential property segmentin recent years in order to generate higher gross profit. In March 2020, theGroup started its presence in the field of hospital property management withhuge development potential by acquiring Nanjing Huiren HengAn PropertyManagement Co., Ltd., and enlarged its non-residential segment to cover tensub-segments like government facilities, financial institutions and venues forproperty sales. During the Review Period, Huiren HengAn contributed revenue andnet profit of RMB94.2 million and RMB7.1 million to the Group respectively. InFebruary 2021, the Group established a joint venture company named NanjingYincheng Commercial Property Management Services Co., Ltd. for the purpose ofentering into large-scale commercial property management segment characterisedby shopping malls and arcades, so as to further broaden the income stream andstrengthen the Group’s profitability.

As at 31 December 2020, non-residential projectsaccounted for 21.8% of the Group’s total GFA under management. The incomecontribution of non-residential projects increased steadily with revenue ofRMB374.1 million recorded in 2020 (accounting for 48.5% of the total revenue),representing a year-on-year increase of 78.8%. The average gross profit marginwas 14.4%.

More diversified community value-addedservices to explore new room of development

Yincheng Life Service continued to capitalise theadvantages generated by the dual driver model of property management services +community value-added services, and provided diversified community value-addedservices while providing better property management services to propertyowners. As a result, the Group was able to explore the potential profitabilityand realise the scale expansion of such sector.

The Group provided diversified community value-addedservices for all residential projects and some non-residential projects,covering numerous fields, such as food, clothing, housing, transportation,fitness training, learning, entertainment, shopping, finance, healthcare,courier and battery charging, so as to establish a property owner-oriented “propertymanagement +” ecosystem. The Group installed 25,000 courier lockers and morethan 12,000 charging sockets in communities under our management. At the sametime, the Group actively explored the possibility of integrating offlineservices and online consumption. We did not only provided services throughWeChat official accounts and Apps, but also established a joint venture companynamed Nanjing Yincheng Hui Technology Network Co., Ltd. in February 2021 forresource integration, aiming at providing exclusive services to membersregistered in the membership systems for property owners or users under ourmanagement. Through the the provision of diversifiedcommunity value-added services, not only has it addressed the daily needs ofproperty owners, but also further strengthened the interaction between us andthe property owners, thus enhancing the adherence and loyalty of propertyowners.

Care for our communities to make dreams come true andfacilitate growth of our staff

Along with the continuous increase in the number ofprojects under management, the Group’s role as the intermediary of communitiesbecame more important. We fully utilised our business advantages andunderstanding of the needs of community residents, and accordingly organised anumber of activities, such as sports games, carnivals, parent-child programsand convenience services in communities, to further enhance the brand awarenessand reputation of “Yincheng Property” while giving back to our community.

The growth and development of employees is also animportant part of the Company's development. During the year, there were more than 250living consultants of the Group were promoted through a four-tier training andpromotion system. Meanwhile, the Group adopted diversified incentive systems,such as the grant of shares and the adoption of a share option scheme toreserve talent and thereby accommodate the rapid expansion of our business.

Highly recognised by the industry and promoted to 24thin China Top 100 Property Management Companies

With its rapid growing performance, ideal investmentreturn and promising growth potential Yincheng Life Service has been highlyacclaimed by the market. In 2020, the Group ranked 24th in the “China Top 100Property Management Companies” as compared to ranking the 34th in 2019. It alsoreceived numerous awards, including the “Top 100 Hong Kong Listed Companies”and “2020 Best Listed Companies in Greater China – Fastest-Growing Companies”.Being a newcomer in the capital market, the Company has strived to upgrade itscorporate governance and has communicated with the Shareholders and investorspromptly through various channels. Accordingly, the Company was included in therecommended list of research reports of a number of investment houses.

XIE Chenguang, Chairman of Yincheng Life Service CO.,Ltd, said “Lookingforward, with the introduction of a number of favorable policies, it guaranteesthe sound and sustainable development of the industry. At the meanwhile, theCompany also has a clear awareness that only qualityenterprises with foundation and innovative ideology can maintain sustainabledevelopment in the future and stand out from the intense market competition. Asthe saying said, “You have to start somewhere in order to become successful”,the Group will ride on the current development momentum and fully concentrateon achieving the goal of “expanding its scale, creating profits and optimisingits businesses” in an integrous and proactive way and to have an outstandingperformance in order to reward the Shareholders for their long-term trust.”

Today, Yincheng Life Service held the 2020Annual Results online briefing in Nanjing headquarter. Over 200 fund managers,equity analysts and reporters participated in the event. The management gavethe introduction of annual results and answered the participants' questions.