Chen Canrong, President of Yuan Ye Tourism Group, rings the opening bell
Hangzhou, March 5, 2015 /PRNewswire/ -- At 2:30 p.m. on March 5, the National Equities Exchange and Quotations (NEEQ) held a collective listing ceremony for newly listed companies in Beijing. Zhejiang Yuan Ye Property Management Co., Ltd. (stock abbreviation: Yuan Ye Property; stock code: 831971) became one of the first property management companies in China to be listed on the New Third Board. Chen Canrong, President of Yuan Ye Tourism Group, rang the opening bell on behalf of the company. This marked the first step of Yuan Ye Property in entering the capital market and is also the second subsidiary of Yuan Ye to be listed on the board following Yuan Ye Hotel Real Estate Investment Trust (01275.HK). Xie Jianjun, General Manager of Yuan Ye Property Management, along with other property and group headquarters leaders and securities firm representatives, attended the listing ceremony.
On March 5, representatives of six companies listed on the New Third Board rang the opening bell together, with Chen Canrong, President of Yuan Ye Tourism Group, seen at second from the right
President Chen Canrongstated,"The achievements of Yuan Ye Property today would not have been possible without the support and hard work of all shareholders, the company’s management team, and all employees, nor without the diligent efforts of intermediary service teams such as CITIC Securities on the New Third Board. President Chen pointed out that the innovation of property service models has become an inevitable trend in the development of the entire industry. Under this trend, a large number of property service enterprises have begun to transform and explore new areas to meet market demands. Many companies seeking to break through traditional service models hope to leverage the financing capabilities and value reassessment of the capital market to develop new business areas, and Yuan Ye Property is one of them. President Chen concluded that listing on the New Third Board is just the beginning of the company’s capital operations. As one of the first property management companies in China to be listed on the New Third Board, he sincerely invites enterprises and investors interested in property management, community commerce, and the elderly care industry to become partners with Yuan Ye Property, and to work together to create top-tier, star-rated hotel-style property services across the nation."
On the day of the listing, Chairman Chen Miaolin said in an interview with Beijing Business Today that over the past decade, Yuan Ye Property has not only earned a good reputation for the high quality of Yuan Ye Real Estate but has also established its own brand image for growth and expansion. He stated that the future direction of Yuan Ye Property is to charge little or even no property management fees, and instead maintain operations and generate profits primarily through value-added services. For example, with online shopping now prevalent, Yuan Ye Property aims to excel in the last hundred meters of service. Providing community commerce services such as daily necessities, fresh produce, in-home chefs, and travel consultations will be a key focus for Yuan Ye Property moving forward. Another important business Yuan Ye Property is striving to develop includes Leju Elderly Care Homes and community-based elderly care services. Yuan Ye Property will take advantage of the listing opportunity to further enhance its brand recognition, standardize management systems, explore mature business models, expand its scale, and deliver an annual profit growth rate of around 45% to reward its shareholders.
The National Equities Exchange and Quotations, abbreviated as the “New Third Board,” is the third national securities trading venue approved by the State Council. It holds the same legal status as the Shanghai Stock Exchange and the Shenzhen Stock Exchange. The New Third Board is a platform specifically designed for share transfers of high-growth, innovative, and technology-driven enterprises in their early stages, addressing the financing difficulties faced by small and medium-sized tech enterprises. Listing on the New Third Board not only enhances a company’s financing capacity, governance standards, and brand image, but also enables employee stock incentives to attract talent, brings wealth effects allowing the company to gain liquidity premiums, and attracts more attention from venture capital and private equity. It also increases share liquidity, provides an exit mechanism for shareholders, and facilitates mergers and acquisitions. The listing process on the New Third Board is simple and cost-effective, and it features a flexible transfer mechanism. According to the spirit of State Council Document No. 49, companies listed on the New Third Board can directly apply for listing on a securities exchange, and the business rules of the share transfer system have made corresponding procedural arrangements for the transfer of listed companies.
Zhejiang Yuan Ye Property Management Co., Ltd. was invested in and established by Yuan Ye Tourism Group. It was founded on June 26, 2001, and completed its transformation into a joint-stock company on August 5, 2014. The company mainly operates integrated comprehensive services including property services, property management consulting, hotel property operations, building intelligence, landscape gardening, real estate leasing and sales, community commerce, and cultural operations. Its business covers nine provinces (Liaoning, Henan, Hubei, Jiangsu, Shanghai, Zhejiang, Hainan, Tianjin, Yunnan) and manages more than 33 projects with a total area of over 17 million square meters. The types of properties involved include residential, villas, serviced apartments, government office areas, bank office buildings, high-end corporate headquarters office buildings, commercial properties, hospitals, and technology industrial parks.
Yuan Ye Property is a national first-class qualified property management enterprise, a standing council member of the China Property Management Association, and has passed the international management system certifications of ISO9001, ISO14001, and GB/T28001. “Yuan Ye Hotel-style Property Services” is a new property service model created by Yuan Ye Property by introducing the service philosophy, business approach, and management methods of Yuan Ye Hotels, and fully extending and leveraging the service advantages of Yuan Ye Hotels. The company has been awarded several titles, including “China’s Top 100 Property Service Enterprises,” “China’s Leading Enterprise in Characteristic Property Services,” “2011 China’s Top 100 Property Service Enterprises – Growth TOP10,” and “National Leading Enterprise in Characteristic Consultancy Services.”
The listing of Yuan Ye Property on the New Third Board is another new move by our group in the capital market. The group hopes that after a period of operation, Yuan Ye Property will be transferred to a main board listing. Meanwhile, the scale of Yuan Ye’s listed company in Hong Kong—Yuan Ye Hotel Real Estate Investment Trust (01275.HK)—is also expanding. Following the acquisition of the Shanghai Songjiang Yuan Ye Mingdu Hotel for 700 million yuan in 2014, the trust will also acquire two controlled hotels in Kaifeng and Xuzhou owned by the group in 2015. In addition, the group is actively exploring and researching a light-asset listing model for Yuan Ye Hotel Management Company and striving to cultivate and develop Jin Shanzi Technology Company to become another listed subsidiary of the group. Several years ago, Chen Miaolin, Chairman of Yuan Ye Tourism Group, proposed that Yuan Ye should rapidly shift from a heavy investment and heavy asset development model to a light asset and heavy management development model. In recent years, Yuan Ye’s frequent and notable moves in the capital market are a positive reflection of this developmental transformation.