HONG KONG, Aug 23, 2021 – (ACN Newswire) – The board of directors of Hypebeast Limited (0150.HK) has announced the Group's unaudited key financial results for the three months ended 30 June 2021 ("FY2022 Q1").

FY2022 Q1 ended on a high note as the business achieved record results for first quarter revenue, gross profit and gross profit margin as various regions exit lockdown from the COVID-19 pandemic. Revenues for FY2022 Q1 increased 57.9% year-on-year to approximately HK$200.8 million, due to increases in Media contract values, continued expansion in client industry categories and strong regional revenue growth from the Group's Media segment. Revenues for FY2022 Q1 increased by 12.6% compared to the three months ended 30 June 2019 ("FY2020 Q1"), reflecting significant growth versus the pre-COVID-19 baseline. Such growth versus pre-COVID-19 pandemic business levels are expected to continue and accelerate throughout FY2022.

The Group experienced specific strength in the rebound of the Media business, with a significant increase in signed contract value of approximately 111.9% in FY2022 Q1 versus prior year or 74.7% versus pre-COVID-19 pandemic level in the FY2020 Q1, primarily driven by increased production capabilities and expansion across brand client categories. The COVID-19 pandemic accelerated digital transformation strategies for global brands resulting in a greater shift in marketing & advertising budgets from traditional marketing channels to digital online channels. The Group expects to benefit from this trend to continue for the foreseeable future.

"We are delighted to deliver yet another record-breaking quarter as we continue our strong rebound from COVID-19, and we have our eyes set on even higher targets for the rest of this year and next year," said Kevin Ma, Founder and CEO of Hypebeast Ltd. "Alongside an overall surge in business activity in both our Media, and E-commerce and Retail businesses, we look forward to bringing exciting projects to life over the next 12 months – such as the much-anticipated opening of the flagship store in New York City in early 2022. We are working hard to expand our platform and our presence and look to sustain the momentum in the next quarters and beyond."

Overall performance:

— Our media business in the US and China continued its strong rebound, accelerating away from the effects of the COVID-19 pandemic with year-on-year increases of 139.6% and 48.2% respectively for FY2022 Q1;

— Gross profit for FY2022 Q1 surged 131.1% year-on-year or 34.2% compared to FY2020 Q1, amounting to approximately HK$117.1 million, while gross profit margin improved to approximately 58.3%, representing a year-on-year increase of 18.5 percentage points.

Media Segment:

— The Media segment recorded a year-on-year increase in revenue of 117.1% to HK$145.4 million in FY2022 Q1, surpassing the pre-COVID-19 pandemic levels of HK$112.9 million recorded in FY2020 Q1;

— Due to increases in revenue and more cost-efficient campaign production, overall gross profit margin for the Media segment increased by 20.7 percentage points versus prior year, or 10.4 percentage points versus FY2020 Q1, to 62.5% for FY2022 Q1.

E-commerce and Retail Segment:

— Gross profit from the E-commerce and Retail segment increased by 16.2% to approximately HK$26.3 million for FY2022 Q1, despite a decline in revenue of approximately 8.0% to HK$55.4 million for FY2022 Q1 as inventory intake levels rebound from management effected COVID-19 pandemic purchase reductions;

— The Group improved its profitability with higher margin gains. Gross profit margin reached 47.4% for FY2022 Q1, up 9.8 percentage points as compared to three months ended 30 June 2020 ("FY2021 Q1"), largely driven by higher sell through rate and higher proportion of products being sold at full price. Both these indicators reflect a healthier portfolio of inventories on hand compared to pre-COVID-19 pandemic related adjustments to intake as implemented by management.

Operating Expenses:

— Selling and marketing expenses increased by approximately 25.9% from approximately HK$27.0 million for FY2021 Q1 to approximately HK$34.0 million for FY2022 Q1, largely driven by (i) increase in headcounts upon strong recovery and growth of the media and e-commerce and retail segments; and (ii) increase in variable commission paid as a result of the significant increase in signed contract value as discussed above. As a percentage of revenues, selling and marketing expenses decreased from approximately 21.3% for FY2021 Q1 to approximately 16.9% for FY2022 Q1.

— Administrative and operating expenses were approximately HK$45.5 million for FY2022 Q1, up by approximately 65.5% from approximately HK$27.5 million for FY2021 Q1 as the Group exercised prudent cost management and received government subsidies during FY2021 Q1. Administrative and operating expenses as a percentage of revenue slightly increased from approximately 21.6% for FY2021 Q1 to approximately 22.7% for FY2022 Q1.

For further details on the quarterly results performance, visit the Group's corporate website to view the full results announcement.
https://hypebeast.ltd/investors

About Hypebeast Limited (Stock Code: 0150.HK)

Hypebeast Ltd. started from a sneaker website founded by Kevin Ma in 2005 to a publicly listed media company in 2016. With a total reach of over 44.6M users across all platforms, The media group boasts a global readership across Asia Pacific, North America, Europe and more, with the flagship platform available in five languages. The group has expanded its publishing brands to a wider scope in recent years, encompassing Hypebeast and its multiple content distribution platforms, HBX, our e-commerce and retail platform, and Hypemaker, our global agency.


Copyright 2021 ACN Newswire. All rights reserved. http://www.acnnewswire.com

HONG KONG, Aug 20, 2021 – (ACN Newswire) – Yincheng Life Service CO., Ltd. ("Yincheng Life Service" or "the Company", together with its subsidiaries, "the Group") (Stock code: 1922) announced its interim results for the six months ended 30 June 2021 (the "Period").

Results performance has risen steadily with revenue and profit increasing over 40%
During the Period, the Group's revenue increased by approximately 41.0% period-on-period from approximately RMB416.9 million to approximately RMB587.7 million. The revenue from the property management services reached RMB461.8 million, representing an increase of 37.3% period-on-period and accounting for 78.6% of total revenue. The revenue from community value-added services increased by 56.3% period-on-period to RMB125.7 million, accounting for 21.4% of total revenue.

As compared with the corresponding period in 2020, Profit for the Period increased by 47.2% period-on-period to RMB44.0 million and profits attributable to owners of the Company amounted to approximately RMB40.2 million, representing an increase of approximately 36.1% period-on-period. The net profit margin was 7.5%, up 0.3 percentage points period-on-period. The gross profit increased by 20.1% period-on-period to RMB97.8 million. Gross profit margin was approximately 16.6%.

Adopted a two-pronged strategy, further expanded the market presence
Yincheng Life Service is stabilising its inventory meanwhile actively expanding its contract volume, to ensure a stable and orderly development of its business. In terms of stabilising inventory, the renewal rate of the Group's existing customers has maintained a high level of 92.9% for its quality services and good operational strength. The integrated collection rate of residential properties' customers reached 64.9% (the proportion of the amount paid to the property management fees receivable for the year) during the Period. The Group is confident to maintain a collection rate of more than 90% and a prepayment rate of about 40% throughout the year, as it enters the peak period of collection during 2H2021. For expanding contract volume, the Group secured a net addition of 267 new residential properties projects during the Period through multiple channels, including direct engagement by customers, acquisition and winning public tenders.

Yincheng Life Service has been adhering to the strategy of further developing the market in Yangtze River Delta Megalopolis and bringing the advantage of its centralised regional development strategy into full play, and the Group has been expanding its business coverage with the strategy of "increasing the presence in Nanjing, expanding the market in the southern part of the Jiangsu Province and exploring the market in Huaihai district". As of 30 June 2021, the Group's contracted GFA and GFA under management were approximately 50.9 million sq.m. and approximately 49.0 million sq.m., representing a period-on-period increase of 36.5% and 45.4% respectively. The Group's business covered 19 cities in China and managed 636 properties, including 385 residential properties and 251 non-residential properties, serving over 450,000households which covers over 1.4 million customers.

External expansion scale was better than expected and further enhanced the proportion of third-party
Leveraging its advantages in business model, quality services and reputation, as well as strong market expansion capabilities, the Group further consolidated its position as a regional leader in the industry. During the Period, GFA under management of the Group increased by approximately 10 million sq.m.. Among which, the proportion of GFA under management secured from third-party property developers further increased to a high level of 84.2% (1H2020: 81.8%). As an expert in the operation of Second-hand Projects, most of the Group's new expansion projects have quickly converted from contracted projects to GFA under management a few months after engaged from property owners' associations, and starts to contribute revenue within the year.

It is worth mentioning that Yincheng Life Service has stepped up its efforts in expanding its business in regions other than Nanjing since last year, and has achieved remarkable results. Currently, the Group's GFA under management in regions other than Nanjing has exceeded 18 million sq.m., representing a significant period-on-period increase of 75.6%, and has further increased its proportion to the total GFA under management to 37.4% (1H2020: 31.0%), showing that the Group was able to replicate its success in Nanjing to other regions.

Intensive cultivation of competitive products in non-residential properties, achieving good results in subdivisions
Non-residential projects with higher gross profit margin have become the focus segment of the Group in recent years. As of 30 June 2021, non-residential GFA under management of the Group amounted to 10.6 million sq.m., representing a period-on-period increase of 52.1% to 251 projects, and the total annualized contract value amounted to approximately RMB470.0 million. During the Period, the contribution from non-residential properties recorded a revenue of approximately RMB218.8 million, almost reached 5:5 in comparison to the revenue contribution from residential properties, with a more outstanding growth rate of 41.3%

The Group's non-residential projects cover 11 types of properties, and has intensively cultivated leading products such as hospitals, financial institutions, government facilities, and landmark buildings to build benchmark projects, striving to become an expert in these subdivisions and gain a considerable market share in the high-quality non-residential market. The Group successfully acquired Huiren HengAn last year, which secured new engagements from five hospital institutions during the Period, hence further consolidated the Group's leading position in hospital property management market. The Group has also won the property management projects for various landmarks, such as the Nanjing City Wall and Jinling Museum, which will help to enhance the Group's reputation and brand image. In February this year, the Group also established a joint venture company to tap into the property management market of large shopping malls and commercial streets, the Group expects to accumulate experience from these projects which can help acquire more customers of similar type in the future and expand source of revenue.

Diversified community value-added services have great growth potential
In terms of community value-added services, the main purpose of which is to maintain customer satisfaction, so the Group is determined to provide value-added services only where there is a strong demand, of which successful examples include fitness training, pick-up lockers, electric vehicle charging, home renovation, group catering and other services. During the first half of 2021, Yincheng Life Service launched live-in elderly care services in response to the favourable "property + elderly care" policy and the needs of property owners, and has become a pilot entity in Nanjing. At the same time, benefiting from the presence of its projects in Nanjing, the Group's electric scooter battery swap services launched at the end of 2020 developed rapidly during the first half of the year. At present, the Group has built more than 270 smart battery swapping stations in Nanjing, with more than 2,700 registered active riders, which the Group believe this business can start generating considerable profit after one to two years of implementation period.

In recent years, as the social value and contribution of the property management industry have been highly recognised by the whole society, the property management industry is in a golden period of rapid growth and development, with its prospects being highly recognised. The Group is highly recognised in society for its significant growth in management scale, industry-leading service quality, excellent customer reputation and business development, and was ranked 18th among the top 100 property service enterprises in China in 2021 and topped the 2020 Nanjing Property Credit List.

XIE Chenguang, Chairman of Yincheng Life Service CO., Ltd., said: "Looking ahead to the second half of the year, we will strive to achieve the annual performance target in accordance with the established strategy. In terms of business development, the Group will continue to focus on market expansion and identify high-quality merger and acquisition targets that can bring along real synergies for expanding our business scale; we will strive to acquire more projects outside Nanjing and quickly develop economy of scale and brand impact in the local areas; incorporate more residential projects into our community value-added services to enhance the residents' well-being, while different types of 'Industry +' services are sought to be offered to customers of non-residential projects in order to provide protection for non-residential customers, allowing them to realise greater business value. We believe that, by adhering to the concept of 'reputation comes first, operation is the key', establishing presence in Yangtze River Delta Megalopolis to give full play to the strategic advantages of regional centralisation, and adopting the multi-pronged management approach, the Group will be able to seize the favourable policy and market opportunities. As such, the Group can expand its scale, maintain long-term sustainable development, improve profitability and deliver greater returns to the shareholders of the Company."

About Yincheng Life Service CO., Ltd.
Yincheng Life Service CO., Ltd is an established property management service provider in China, with over 20 years' industry experience for the provision of diversified property management services and community value-added services. Through the high-quality property management services provided by the Company, Yincheng Life Service successfully translated into one of the leading property management service providers in Nanjing and Jiangsu Province, the PRC from a local property management service provider in Nanjing. The Company ranked the 18th among the top 100 property service enterprises in China in 2021.

The business scope of Yincheng Life Service covers a wide spectrum of properties, including residential properties and non-residential properties covering government facilities, financial institutions, property sales offices, hospitals, commercial complex, parks, highway service area, industrial parks, mixed-use properties, schools and office buildings. As at 30 June 2021, the Group provided property management services in 19 cities of the Yangtze River Delta, which has approximately 50.9 million sq.m. contracted GFA and GFA under management were approximately 49.0 million sq.m., and more than 636 properties under managed.

For more information about the Company: www.yinchenglife.hk

Issued by Porda Havas International Finance Communications Group for and on behalf of Yincheng Life Service CO., Ltd. For further information, please contact:

Porda Havas International Finance Communications Group
Mr. Bunny Lee +852 3150 6707 bunny.lee@pordahavas.com
Ms. Mandy Chen +852 3150 6721 mandy.chen@pordahavas.com
Ms. Cecilia Chen +852 3150 6769 cecilia.chen@pordahavas.com



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