(Foshan, Guangdong, 27 March 2024) Country Garden Services Holdings Limited ("Country Garden Services" or the "Company", stock code: 6098.HK) HK) (collectively, the "Group") audited consolidated results for the twelve months ended 31 December 2023 (the "Reporting Period").
2023 Annual Results Highlights:
Revenue increased by approximately 3% from approximately RMB41.367 billion in the same period of 2022 to approximately RMB42.612 billion;
The core net profit attributable to shareholders of the Company was approximately RMB3.94 billion;
The administrative expense ratio was 9.1%, down 1.2 percentage points from the same period last year.
Net cash from operating activities for the 12 months ended December 31, 2023 amounted to approximately RMB4,615 million, representing a year-on-year increase of approximately 38.9%;
As of December 31, 2023, the Group's total bank deposits and cash amounted to approximately RMB12,939 million, representing a year-on-year increase of approximately 13.7%;
As of 31 December 2023, the Group's contracted management area and fee-based management area were approximately 1.633 billion square meters and 957 million square meters respectively, excluding the "three-for-one-business" business, and the contracted management area and fee-based management area of the property services of the "three-for-one-business" business were 93.4 million square meters and 88.6 million square meters, respectively.
The Board has recommended the declaration of a final dividend and a special dividend totalling RMB29.46 cents per share as a token of appreciation to all shareholders for their unwavering support and trust in the Company.
From left to right, the management attended: Lin Wentao, Deputy General Manager of Investor Relations of Country Garden Services, Huang Peng, Executive President, Chief Strategy Officer and Joint Company Secretary, Xu Binhuai, Executive Director and President, Guo Zhanjun, Vice President and Chief Marketing Officer, Zhang Yanzhi, Vice President, and Li Disheng, Vice President.
The business development has maintained a steady momentum, and the degree of market-oriented operation is high
In 2023, the Group's revenue continued to grow to approximately RMB42.61 billion. At the same time, the business development remained stable and highly market-oriented, and the proportion of revenue from third parties further increased to a new high of approximately 96.9%. The Group's revenue structure was diversified and continuously optimized, and property management services continued to play a cornerstone role, achieving a year-on-year increase of approximately 8.1% to approximately RMB24.70 billion, accounting for approximately 58.0% of total revenue.
The proportion of value-added service revenue from non-owners further decreased to 3.6%.
We will further consolidate financial security and attach great importance to shareholder returns
During the year, the Group further strengthened its financial security, ensured sustained and stable cash inflow, and had sufficient financial strength to ensure business development. The financial statements continued to be optimized, and the long-term liquidity was maintained, the asset-liability ratio decreased, the interest coverage ratio increased, and the credit capacity was enhanced. The Group attaches great importance to shareholder returns and insists on protecting the interests of investors. Since its listing, the total amount of accumulated dividends has reached approximately HK$4.25 billion, and the total amount of cumulative repurchases of the Company's shares has reached approximately HK$1.10 billion. In addition, the Board has recommended the declaration of a 23-year final dividend and a special dividend totalling RMB29.46 cents per share as a token of appreciation to all shareholders for their unwavering support and trust in the Company.
Driven by customer satisfaction, we focus on the active improvement of service quality
Customer satisfaction is an important foundation for the sustainable development of the group, and the group is driven by customer satisfaction and focuses on service products
Qualitative active improvement. Focusing on service pain points, the Group has targeted efforts to improve customer experience. The Group protects its customers
A sense of security, 24,000 potential risk sources were rectified in the park throughout the year, and in terms of facility and equipment safety, it was completed
There were 2,433,000 inspection and maintenance work orders, 5,319,000 repair work orders, 13,000 large-scale fire drills and 11,000 elevator safety drills. During the year, the Group continued to invest in community renovation to rejuvenate customers' living experience, with a related investment of approximately RMB400 million, involving a total of 1,594 projects, including the renovation and improvement of community facilities and equipment, the upgrading of recreation and sports facilities, and the intelligent transformation of communities. In addition, the Group has increased its investment in scientific and technological intelligence, investing in AIoT business including cleaning robots, equipment and IoT modules, IoT platforms, charging pile platforms, etc., and self-developed IoT solutions including human-machine collaborative operation and smart parking, so as to help improve service quality and management efficiency with digital and intelligent services.
Adhere to the market expansion with residential as the core, and the distribution of business formats and line cities is more balanced
With residential as the core, the Group pursues the high-quality development of all business formats, and the volume of market expansion remains at a high level.
During the year, the Group signed 1,556 new brand expansion projects, with an annualized saturated revenue of approximately RMB3.726 billion. The Group gives full play to the geographical coverage advantages of the projects under management to carry out overall expansion. During the year, 45% of the new expansion projects were located in first- and second-tier cities, and 55% of the new expansion projects were in third- and fourth-tier cities.
Adhere to the "1+N+X" community value-added development strategy, and further focus on strategic businesses to strengthen capacity building
Community value-added services have become a new engine to promote the Group's sustainable and healthy growth. By building a team of professional talents, expanding the ability of resource integration, uniting high-quality partners in various industries, and relying on the natural advantages of the property's proximity to the community scene, it is promoting the competitiveness of the core business of community value-added services in key cities across the country. During the year, the Group's community value-added services revenue amounted to approximately RMB3,753 million, accounting for approximately 8.8% of the Group's total revenue.
During the year, the Group adhered to the "1+N+X" community value-added development strategy and further focused on strategic businesses and strengthened
Capacity-building. The Group upgraded community media to integrated marketing, creating "communication-experience" based on community scenarios
Buy-share" complete marketing link to create differentiated products with core competitiveness. The group and cutting-edge intelligence
The cleaning appliance brand "INXNI" reached an integrated marketing cooperation and held more than 800 experiential activities in the community. Focusing on customer needs, the Group has built an in-depth experience scenario of liquor sales business, and has reached a strategic cooperation with Guotai Liquor Group to jointly provide consumers with high-quality products and services. The group gives full play to the property enterprise
The advantages of venue and service created an innovative model of clothing care stores, and opened 100 franchised stores during the year.
Prospects and future plans
In 2024, the Group will continue to focus on the special work of improving the quality of the community and renovating the environment, renovating the old facilities of the project and renovating the ecological environment of the project, so as to improve the living experience of the owners and help the community to "rejuvenate" the old appearance. By optimizing the basic property services and leveraging the technology management and operation work, the Group is committed to continuously improving the customer service experience, striving to build a safe, green, smart, humanistic and convenient community, and turning the owners' imagination of a better life into reality.
In the future, in terms of community value-added, the Group will adhere to the development strategy of "1+N+X", and on the basis of providing high-quality property management services to owners, it will actively deploy key businesses in community life in key cities, build its own competitive advantages, and establish an incubation system to attract outstanding entrepreneurs. At the same time, we will further focus on strategic business, strengthen capacity building, build a unique differentiated business model of property + professional, and build high-quality products and professional teams. Explore subdivided community scenarios in the business, cut into the two dimensions of high-quality products and near-field services, form a differentiated business model, win the reputation of owners, and enhance customer stickiness.
With the continuous expansion of management scale, property management service companies are accelerating the layout of the digital track, constantly improving management capabilities, optimizing service quality, and enhancing user satisfaction through digital transformation, so as to make property services more intelligent and efficient. The Group regards technology as a means to improve service efficiency and customer experience, and is actively committed to promoting digital transformation research, empowering employees with technology to serve efficiency, and continuously optimizing customer experience.
In terms of property management operations, the Group will continue to promote "lean" digital transformation and digitally manage the core operation system, so as to empower operations to improve service quality and management efficiency. The Group will continue to lean shape the existing business, process and business model, and make the future direction clearer through digitalization: from the owner's feedback to the solution of the service closed loop, to the tracking of service process improvement, from the operation of the work order operation system scheduling to the operation of the batch review of the closed loop, to the corresponding implementation of digitalization in every link. The Group will promote the pilot of digitalization work in more projects to create more "smart" communities.
-Finish-
About Country Garden Services Holdings Limited
Country Garden Services Holdings Limited (Stock Code: 6098.HK) HK) is a leading integrated service operator covering diversified business formats in China, and the Group has won industry-leading customer satisfaction with its high-quality service quality and service brand, and has been highly recognized by the industry. The Group has won the "2023 China Top 100 Property Service Enterprises" and "2023 China Property Technology Empowerment Leading Enterprise" issued by China Index Academy, the "2023 China Property Customer Satisfaction Model Enterprise" issued by Yihan Think Tank, and the "2023 China Property Value-added Service Operation Leading Enterprise" and "2023 China Property City Service Leading Enterprise" by CRIC Property Management.
On 19 June 2018, Country Garden Services was listed on the Stock Exchange, marking the Group's official entry into the international capital market. Since its listing, Country Garden has gradually strengthened its position in serving the international capital markets by being included in the MSCI China All Share Index on 31 August 2018 and as a constituent stock of the Hang Seng Index on 7 June 2021. The Group's ESG performance has been consistently recognized by leading global ESG rating agencies, with MSCI ESG rating of BBB, Sustainalytics ESG Risk Rating of "Low Risk" (score of 11.5, ranked 590th out of 15,974 international rated companies) and "ESG Regional (Asia-Pacific) Highest Rating" in 2023, and S&P Global ESG Scores) scored 46, outperforming 85% of the world's peers, and was selected as a constituent stock of the FTSE Russell 4Good Index Series in December 2022 and has remained so since.
For more information, please visit Country Garden's service website http://bgyfw.com/
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