Yuexiu Service delivered a brilliant report card in 2023, and promoted in-depth development with a strong service and strong business strategy

High-quality development has become the core keyword of the property industry in 2023, and property companies are no longer blindly chasing the growth of scale, but paying more attention to quality expansion. It can be seen from the operating performance of listed property companies that have disclosed their 2023 annual reports that property companies that adhere to high-quality services can achieve healthy development, such as Yuexiu Services (stock code: 06626. In 2023, Yuexiu Services achieved steady growth in revenue and profit attributable to shareholders, and all business segments showed steady and high-quality growth, delivering a brilliant report card.

Do a good job and do a thorough job, and continue to optimize and improve diversified businesses

At present, the real estate industry is in a period of adjustment, and listed property companies are sparing no effort to develop community value-added services, expand multi-format services and profit channels. In this context, Yuexiu Service adheres to long-term and sustainable service quality, and does a good job of services and products to provide customers with more satisfactory services. With the support of high-quality products and services, Yuexiu Service will achieve operating income of 3.224 billion yuan in 2023, a year-on-year increase of 29.7%, and its performance growth rate ranks among the top in the industry.

On March 18, Yuexiu Services announced its 2023 annual results, during which the company achieved continuous optimization of business structure and revenue improvement. According to the annual report, Yuexiu Service's revenue in 2023 was RMB1.029 billion from basic property management services, accounting for 31.9% of the total revenue, RMB932 million from community value-added services, accounting for 28.9% of the total revenue, and RMB669 million from non-owner value-added services, accounting for 20.8% of the total revenue. In addition, revenue from commercial property management and operation services amounted to RMB594 million, accounting for 18.4% of total revenue.

It is worth mentioning that in 2023, Yuexiu Service will focus on improving service quality, continuously tap the value-added service potential of the project, integrate online and offline service resources, cover all aspects of clothing, food, housing and transportation, and provide value-added services such as new retail, home service, commercial facilities, rental and sales intermediary, and Mercure, with an increase in business scale and revenue, and a strong momentum of service penetration.

Consolidate the basic property management business and deepen the value-added service business

The quality of basic property services is the foundation of property enterprises and the foundation of development, and Yuexiu Service has been performing steadily in the basic performance of property services, and the basic property service capabilities have been continuously improved. According to the annual report, in 2023, Yuexiu Service's basic property management services achieved high-quality development, and its operating revenue increased by 26.7% year-on-year to RMB1.029 billion. In addition to the growth of revenue, customer satisfaction has reached the high level of the 95th percentile of the industry for two consecutive years, and the specialization of service capabilities has continued to improve.

Based on the needs of customers in different regions, different levels and different dimensions, Yuexiu Service has created three major residential property management product lines of "Zhenyue, Boyue and Xiangyue" from multiple dimensions such as service price, service content and service scenarios, providing professional, refined and personalized services.

At the same time, Yuexiu Service continues to increase its "service consumption" attributes, focusing on deepening community value-added service products based on its own resource endowment and corporate advantages, continuously developing products and services close to the real needs of customers, and creating five major business platforms of new retail, brokerage, Mercure, community business and intelligence. During the Reporting Period, Yuexiu Service Community Value-added Services achieved revenue of RMB932 million, a year-on-year increase of 43.3%, with outstanding performance.

Strong service and strong business strategy are deeply cultivated, and the stock market continues to tap potential

In the face of the background of the adjustment of the real estate industry, the competition in the stock market of the property industry is becoming more and more fierce. CRIC analysis pointed out that due to the impact of the contraction of the overall residential scale and the concentration of incremental demand in third-tier cities and below, the expansion of property enterprises in the incremental market is limited, and the stock market has become the focus of property enterprises, and the competition in the stock market has become fierce. Industry insiders believe that only by firming up the strategy, controlling the quality, practicing internal skills, and impressing customers through professional and differentiated services can we stand out in the fiercely competitive market.

As a leading enterprise in comprehensive property management in the Greater Bay Area, Yuexiu Service has more than 30 years of experience in urban operation, and has achieved a diversified layout of four major business formats: residential, commercial, transportation and urban services, covering residential, metro properties, office buildings, commercial complexes, professional markets, large-scale exhibition halls, government affairs centers, industrial parks and other urban service facilities, and has formed a nationwide business layout with the Greater Bay Area as the core and East China, Central China, North China and West China as important supports. In terms of market expansion, Yuexiu Services has shown super resilience, with a market expansion area of 10.64 million square meters in 2023, a year-on-year increase of 26.2%, and a number of high-quality projects, including the BASF (Guangdong) one-stop base project.

In the past two years, the management scale of Yuexiu Services has maintained a double-digit growth rate. As of December 31, 2023, Yuexiu's contracted service area was 83.45 million square meters, up 18.2% year-on-year, with 65.21 million square meters under management, up 26.2% year-on-year, and 476 contracted projects and 408 projects under management, serving 280,000 owners. During the reporting period, the new contracted area reached 15.42 million square meters.

Yuexiu Service said in its annual report that in the future, the company will practice the strategy of strong service and strong operation, build core products with customers as the center, and create professional property management services in the four major business segments of residential, TOD, commercial writing, urban and public construction, so as to provide customers with high-quality services. In terms of ESG strategy, we will continue to focus on the six directions of good governance, quality service, green property, employee care, win-win cooperation and social well-being to build core competitiveness for sustainable development, and at the same time integrate ESG into business operations, develop photovoltaic power generation, and create low-carbon demonstration projects.

Mr. Lin Feng, Non-Executive Director and Chairman of the Board of Directors of Yuexiu Services, said that looking back on the past year, high-quality development and return to service attributes have become the main tone of the property management industry. As a service-oriented and operation-oriented business, property management has the attributes of light assets and stable cash flow, and has great development potential in the long run. In 2024, Yuexiu Service will take "Attentive Service to Improve Quality, Lean Management to Create Benefits" as its annual theme to create a better reputation, enhance market competitiveness, and strive for greater development space.