Major Chinese Property Management Platform Onewo Vies for Hong Kong IPO

The Hong Kong Stock Exchange (HKEx) issued an announcement on April 1, indicating that a property management services firm owned by Vanke called Onewo Space-Tech Service Co., Ltd. (Onewo) has formally submitted an application for a public listing.

Onewo, formerly known as Vanke Property Development Co., Ltd., started business in 1990. In November 2021, Vanke announced it would spin off its subsidiary Onewo, as the latter would go public on the HKEx. As of December 31, 2021, Onewo managed about 785 million square meters of residential and commercial spaces, ranking top among all Chinese property companies.

Onewo says it works within three modules, namely, “Space, Tech and Growth.” Each module includes Vanke Service, Yuying Platform, Cushman & Wakefield Vanke Service, CITY UP, Vanrui Technology, Fifth Space and other platforms.

According to the company’s prospectus, from 2011 to 2021, the total revenue of Onewo increased by more than 16 times, with a compound growth rate of more than 30%. Onewo introduced that over the years, it has established business models such as community space residential consumption services, business enterprise and urban space comprehensive services, and remote space technology operation services, which has supported the rapid growth of the company.

Specifically, Onewo earned 23.705 billion yuan ($3.7 billion) in 2021, a year-on-year increase of 30.6%. Gross profit registered at 4.02 billion yuan, a year-on-year increase of 19.48%. Profits during the year totaled 1.714 billion yuan, up 12.87% year-on-year.

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The prospectus suggests that Vanke Group is the largest customer of Onewo. In 2021, the revenue from Vanke Group accounted for 16.1% of the total. In addition, Vanke owns 62.89% of the voting rights of Wanwuyun, while Yao Jinbo, CEO of Inc., holds 4.76% of the shares of Wanwuyun.

Onewo hasn’t disclosed the amount of funds it has raised, although it did divulge that capital is mainly used for business expansion, economies of scale, the development of AIOT and BaaS solutions, the acquisition or investment in upstream and downstream supply chain service providers, and other purposes.