Wednesday, 25 May 2022, 18:12 HKT/SGT

Strengthen the Advantages of the Supply Chain
Enhance the Competitiveness of Lifestyle Services

HONG KONG, May 25, 2022 - (ACN Newswire) - New Hope Service Holdings Limited ("New Hope Service" or the "Company", stock code: 3658.HK) has officially listed with the first anniversary. At the same day, the Company announced the Continuing Connected Transaction, announcing that the New Hope Holdings Group has agreed to place order on the supply chain platform of the New Hope Service Group for the products, covering office supplies, electrical appliances, office computers, home improvement and building materials, daily necessities, office furniture and clothing.

The entering into the Framework Agreement with New Hope Holdings Group will enable New Hope Service to build the supply chain platform that better caters for the procurement needs of customers. Through its online supply chain platform system, the competition and marketing ability of the Company in the field of lifestyle services will be enhanced by the better quality of service and competitive commodity price. At the same time, the revenue of the Company from the business segment of lifestyle services can be increased through combining the Company's professional advantage in supply chain management, bargaining power with upstream suppliers and quality control, which will bring more value for the shareholders.

In addition, in the same announcement, there was another important notice which the Board resolved to change the use of Proceeds from the global offering and reduce the portion of Net Proceeds for "strategic acquisition and investment" to increase the portion for "working capital" and fund the new category "development of lifestyle service".

The fundamental reason for this distribution is that scale growth is still one of the strategic priorities for the future development of New Hope Services. The regional business expansion strategy and the development of life services are important means to consolidate the market position. In the development of the first year of listing, this change was made with the actual business needs of the Company in terms of the substantial increase in the GFA under the management of the Company, the acquisition of Mingyu Global Business Management, and the strategic business position of life services.

Specifically, the funds are used at the level of "development of lifestyle services", which mainly used to further expand the offerings of community living services and improve penetration rate, investing more to group meal service, and expanding the construction of community asset management service team and stores, so as to continue to strengthen the Company's core competitiveness.

In addition, the Company mentioned in the Investor Communication Meeting on the first anniversary of the listing that in the future, the Company will continue to deepen the metropolitan areas and urban agglomerations in China to enhance the business scale; continue to focus on customer needs, connect New Hope Group's industries to enhance the lifestyle services; and will build a foundation for the development of lifestyle services through service capacity improvement and intelligent construction, continuously improve the community ecosystem, improve operational efficiency, and rationally reduce cost and improve efficiency in combination with lean management.

Topic: Press release summary Sectors: Daily Finance
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