During the developing of its advisory business, Synergy Solution identified the value of operating and investing Flexible office in China. In 2010, we launched our first flexible office centre in Shenzhen, China, Synergy United Plaza International Enterprise Centre. The Flexible Office use the model of “Flexible Office space + enterprise support services”， and we also provide the entrepreneurs with Flexible Office space and business support services for accelerating their business growth. In recent years, this model has been widely used worldwide in business centres supported by the government, government and private capital-backed business accelerators and business incubators. However, the Group mainly provides enterprise support services to medium-sized enterprise or above rather than invest in itself.
We primarily adopt a lease and operate strategy in managing and operating Flexible Office and Co-living apartments in the PRC. After identifying a property with value enhancement opportunities, we will enter into a tenancy agreement with the relevant landlord for about six to ten years. After receiving the property, we will make a profit from enhanced operating cash flow and associated growth advisory and business support services by way of improving the efficiency of space utilization, enhancing the functionality of the facilities and optimizing comfort and density of the space, and increasing ancillary facilities. Leveraging its ability to improve property value and to enter into the tenancy agreements in respect of the properties with value enhancement opportunities, the Group can generate an attractive return from property operation and the provision of business consultancy services to growing and mature enterprises, thereby achieving growth during the reporting period.
Synergy Flexible Office Centre (協縱聯合辦公中心）business
Our Flexible Office in the PRC are operated through our “Synergy (協縱)” brand. This model is also internationally known as the service office. We operate our Flexible Office under the name of Xiezong International Enterprise Centre (協縱國際企業中心) in the model of “Flexible Office space + enterprise support services”. We also provide a variety of business support services for Flexible Office space tenants and the enterprises with any needs in the same city, including capital raising support, marketing support, financial reporting support, virtual office and office support services, and internal training support.
The target client base of Flexible Office Centre of the Group are the enterprises that are in a growing and mature stage with a flexible demand for the use time, services content and area change of Flexible Office space. These potential clients enter into a stage requiring the flexible office space and services due to the scale of growth. They need the services providers to provide adjustable the Flexible Office space. We mainly provide the Flexible Office Centre space to small, medium and large-sized companies. Moreover, we mainly provide our business support services to the companies with affordability to a certain extent after taking into account the overall affordability and input-output ratio.
In general, our clients have a strong demand for enterprise capital raising, training, financial enhancement, performance and incentive optimization, cost monitoring solutions and related business or efficiency improvement and value-added services.
We are managing and operating [10] Flexible Office which comprising of more than [150] leasable office units in Shenzhen, Foshan, Shanghai and Beijing. During the Track Record Period, leveraging our established ability in Flexible Office, we also provide Flexible Office outsourcing operation and consultancy services to third-party property owners and investors of Flexible Office space.