On August 30th, Sunac Services Holdings Limited (hereinafter referred to as "Sunac Services", stock code: 01516.HK) officially released its interim results for 2022, handing in a high-quality development report:

In the first half of the year, revenue of 3.99 billion yuan increased by 18%, and gross profit of 1.13 billion yuan increased by 6%. Among them, the income of core business basic property services, community life services and business operation services increased by 36%, the gross profit increased by 18%, and the adjusted structure is healthier, while 4 billion yuan in cash on hand ensures relatively safe liquidity.

Under the guidance of the strategic center of gravity, the market continues to make progress, with the contract floor area increasing to 380 million square meters and the managed floor area to 230 million square meters, of which the third party accounts for 40% of the managed area.

Sunac Services related sources said that the current difficulties encountered in the industry, enterprises will adhere to the original intention, adhere to principles, adhere to safety, focus on strategic focus, consolidate core competencies, will continue to find opportunities in the volatile market, go far and go steadily.

Core business revenue increased by 36%, and the income structure continued to improve.

The downward trend that the real estate industry is experiencing since the second half of last year has not faded. The property industry, which has been strongly associated with the real estate industry, is also affected in terms of income, profits, accounts receivable and so on.

Actively responding to changes in the industry, Sunac Services's income has grown steadily, and his structure has continued to improve: the overall income has increased to 3.99 billion yuan, the gross profit has increased to 1.13 billion yuan, and the gross profit margin has also remained at the forefront of the industry. As the core business of basic property services, community life services, business operation services, the "troika" growth is strong, income growth of 36%, gross profit share increased by 18 percentage points to 79%, but also let enterprises operate more healthy and high quality.

Take community life service as an example, to achieve "multi-point blossom" of income: the income of home service is 4.8 times that of the same period last year, and the income of community commercial service is 5.5 times that of the same period. Beauty home business is also actively layout, try stock projects home improvement, take a key step.

The contract area of high-quality city extension increased by 62% for 21 million parties.

Market expansion is still an important issue for the whole industry this year. According to third-party data, from January to June 2022, 50 property service enterprises had a total of 4463 market expansion projects, and the third-party market expansion area of TOP50 enterprises totaled 479 million square meters, accounting for 47.8% of the new contract area.

Sunac Services focuses on the strategic focus and keeps forging ahead in terms of high-quality market development. In the first half of the year, Sunac Services's contract area exceeded 21 million square meters, an increase of 62% over the same period last year. Strategic and key cities account for more than 70%, including Hangzhou, Tianjin, Wuhan, Xi'an, Chengdu and other high-energy cities, the density of high-level cities has further increased, and the advantage of scale has been consolidated.

In line with the needs of urban development, Sunac Services continues to extend the capacity circle, covering residential services, commercial office buildings, hospitals, public construction projects, industrial parks and so on. Among the newly expanded projects, there are many high-quality non-residential projects, such as Xi'an Jianyu Automobile Culture Center, Tianjin second people's Hospital, Zaozhuang Twin Star Plaza, and so on. Non-residential single-year contracts account for 48%, and the company's expansion in non-residential forms is also further accelerated.

Shituo's achievements are inseparable from the support of professional service capabilities, which not only supports the acquisition of new projects, but also continues to broaden the scope of business in the original projects. Last year, the service scope of Tianjin Jinghai Daqiuzhuang project was only for the environment, but with the real landing of the service and the continuous improvement of the environment, this year's cooperation has been extended to urban road cleaning and greening, garbage removal, pipe network dredging and other services.

Property management and business management work together to promote the steady development of high quality.

In November 2021, Sunac Services announced the layout of a new track for commercial operation services. Over the past six months, Sunac's property management services and business management services are constantly showing synergy under the same platform:

Up to now, Sunac has opened 22 projects with a management area of 3.08 million square meters. Through actively open source, carrying out diversified business, adjusting marketing methods, strengthening investment promotion, and promoting cost reduction and efficiency improvement, Sunac's sales in the first half of the year reached the level of the same period last year, rental income increased by 8% compared with the same period last year, and achieved rapid recovery in the epidemic.

For example, property management, commerce, culture and travel work together in 11 cities across the country to create a super welfare day for owners, tailored to create consumer rights and interests such as thousands of merchants, snow world and paradise, which have been well received; while Chongqing Rongchuangmao has joined 2000 owners to participate in the 50% discount activity for Yonghui supermarket's anniversary celebration, helping its sales rise 30% year on year.

Seizing the market opportunity, Sunac Services added two new commercial projects in Nanning Ruyi Square and Zhongxin Square in Dongguan in the first half of the year. The number of contract projects reached 35, covering 21 cities, with a contract area of 4.12 million square meters.

Looking to the future, Sunac Services will be a sustained and steady forward long-term doctrine under the fluctuating market, relying on core competence and accelerating the development of market-oriented business, so as to achieve high-quality and steady development.