Colour Life gets HK$490m from JD and 360

Hong Kong-listed Colour Life, a property management and community service company, has announced that it would issue HK$371 million of shares to JD.com and HK$120 million to 360.com with cooperation deals to jointly build smart communities under business, logistics, financial and technological environments. 

Founded in 2002, Colour Life listed in Hong Kong in 2014, the first community service company from the mainland to do so. The Shenzhen-based company focuses on building integrated technological property management systems which includes smart logistics, intelligent building management and community services. The company had RMB3.61 million of revenue in 2018, up 121.9% compared with 2017, and RMB485 million of net income, up 51.3%. By the end of last year, the company has served more than 1.12 billion sqm of communities in 268 mainland cities, and it’s also expanding business to overseas markets like Hong Kong and Singapore. 

Colour Life has filed application to the HKEX for the new financing deal with ecommerce giant JD and internet security company Qihu 360. JD will purchase 94.1 million shares and 360 will purchase 23 million shares, both at a price of HK$5.22 per share, which is 4.22% off from the closing price last Friday (HKD5.42 per share). When the deal is completed, JD will hold 5% of Colour Life’s issued shares and 360 will hold 3.05% on top of the previous 1.54% acquired in 2016. Both companies promised not to sell the shares wihin 6 months after the deal is completed. 

As one of China’s top e-commerce and logistics companies, JD has been cooperating with Colour Life in retail business through Colour Life’s community service platform, which allows users to get rebates for property management fees after the purchase of community services like cleaning the air conditioner, changing the gas canisters and repairing the water tubes. 

Before the new investment deal, Qihu 360 has invested RMB102 million to hold 1.54% of shares in Colour Life. Qihu 360’s leeding shareholder and chairman, Zhou Hongyi, is also a non-executive director of Colour Life. 

According to the report issued in June by UBS Switzerland, Colour Life’s net income this year is expected to increase another 24%. 

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