Third-party Property Developers increased from 19.5% in 2018 to 22.8% in 2019, primarily due to our expanded business scale and increased adoption of technological solutions to reduce labor costs for our property management services. We also managed Jointly Developed Projects in 2019, which enjoyed a gross profit margin of approximately 23.1%.

The table below sets forth our average property management fee for property management services by property developer for the years indicated:

<table><tr><td rowspan="3"></td><td colspan="3">For the year ended December 31,</td></tr><tr><td>2017</td><td>2018</td><td>2019</td></tr><tr><td colspan="3">RMBp er sq.m. per month</td></tr><tr><td>Projects Developed by Zhenro
Property Group........................</td><td>2.09</td><td>2.21</td><td>2.47</td></tr><tr><td>Projects Solely Developed by Third-party
(1)Property Developers .................</td><td>2.91</td><td>2.25</td><td>1.72</td></tr><tr><td>(2)Jointly Developed Projects ...............</td><td>–</td><td>–</td><td>2.38</td></tr><tr><td>Overall average property management fee ...</td><td>2.27</td><td>2.22</td><td>2.14</td></tr></table>

Notes:

(1) Include (i) projects solely developed by independent third-party property developers, among which there was a project in 2018, for which we recognized revenue of RMB5.7 million for provision of property management services to the office occupied by Zhenro Group and such office was solely developed by an independent third-party developer; and (ii) the project in 2019, for which we recognized revenue of RMB3.2 million for provision of property management service to other properties developed by an associate of Zhenro Group, which associate was jointly held by Zhenro Group and Independent Third Parties for potential land reclamation. Zhenro Group held 49.51% of interest in such associate.

(2) Refer to projectsj ointly developed by Zhenro Property Group and other property developers for which Zhenro Property Group did not hold a controlling interest.

The increase in the average property management fee for property management services charged on Projects Developed by Zhenro Property Group during the Track Record Period was primarily due to the fact that we were able to charge higher property management fees for our services to certain new properties delivered for our management in 2018 and 2019 given our well-established track record and enhanced brand name and also due to the fact that certain office buildings under our management in 2018 and 2019 were located in prime locations in first- and second-tier cities such as Shanghai. The decrease in the average property management fee charged on Projects Solely Developed by Third-party Property Developers from 2017 to 2018 was primarily due to our continuous efforts in diversifying our income source by providing services to new third-party property developers at competitive prices. The average property management fee charged on projects solely developed by independent third-party property developers decreased in 2019 as compared to 2018 primarily due to the fact that certain new projects under our management were of relatively new property type for us, such as industrial parks, but were located in third- and fourth-tier cities where the average property management fees were relatively low as compared to those of other properties in our

project portfolio. The average property management fees charged on Projects Developed by Zhenro Property Group were lower than those charged on Projects Solely Developed by Third-party Property Developers in 2017 and 2018, primarily because a substantial portion of Projects Solely Developed by Third-party Property Developers were non-residential properties with relatively higher average property management fees as compared to residential properties. We also managed Jointly Developed Projects in 2019, which had an average property management fee that was on par with the that of the Projects Developed by Zhenro Property Group.

The following table sets forth our gross profit and gross profit margin from property management services by property type for the years indicated:

<table><tr><td rowspan="4"></td><td colspan="6">For the year ended December 31,</td></tr><tr><td colspan="2">2017</td><td colspan="2">2018</td><td colspan="2">2019</td></tr><tr><td>Gross
profit</td><td>Gross
profit
marign</td><td>Gross
profit</td><td>Gross
profit
marign</td><td>Gross
profit</td><td>Gross
profit
marign</td></tr><tr><td>RMB’000</td><td>%</td><td> RMB’000</td><td>%</td><td> RMB’000</td><td>%</td></tr><tr><td>Residential properties ....</td><td>23,104</td><td>19.9</td><td>31,521</td><td>18.7</td><td>48,143</td><td>21.7</td></tr><tr><td>Non-residential
properties...........</td><td>6,841</td><td>22.3</td><td>17,973</td><td>22.6</td><td>30,943</td><td>25.7</td></tr><tr><td>Total gross profit/overall
gross iprofit margn ....</td><td>29945,</td><td>20.4</td><td>49494,</td><td>20.0</td><td>79086,</td><td>23.1</td></tr></table>

The table below sets forth the range of monthly property management fees charged for Projects Developed by Zhenro Property Group, Projects Solely Developed by Third-party Property Developers and Jointly Developed Projects during the Track Record Period by property type:

<table><tr><td rowspan="2"></td><td>Projects
Developed
by Zhenro
Property
Group</td><td>Projects
Solely
Developed
by Third-
party
Property
Developers</td><td>Jointly
Developed
Projects</td></tr><tr><td colspan="3">RMBp er sq.m. per month</td></tr><tr><td>Residential properties ..................</td><td>0.82–4.44</td><td> 0.54–2.65</td><td>1.71-3.36</td></tr><tr><td>(1)Non-residential properties..............</td><td>14.16–52.60</td><td> 0.11–22.73</td><td> –</td></tr></table>

Note:

(1) Non-residential properties include commercial properties and public properties, among others.