Zhitong Finance App learned that on March 18, 2024, Yuexiu Services (06626) announced its annual results up to 2023. During the reporting period, the Group achieved operating income of RMB 3,223.6 million, up 29.7% year on year; profit attributable to shareholders of RMB 487.0 million, up 17.0% year on year; basic profit per share of RMB 0.32, final dividend of RMB 0.079 per share, and annual dividend of RMB 0.160 per share, with an annual dividend of RMB 0.160 per share.

Mr. Lin Feng, non-executive director and chairman of the board of directors of Yuexiu Service, said, “In 2024, the Group will strengthen investment and construction of basic services, enhance market-based competitiveness, and seek greater development space with the annual theme of 'Quality Service, Improve Quality with Lean Management'. The Group will continue to enhance customer satisfaction and brand recognition through high-quality services and products, continuously consolidate its core competitiveness, and strive towards the goal of 'becoming a service enterprise that customers can trust. '”

Operating performance grew steadily, and the annual dividend payout rate increased to 50%

In 2023, the Group focused on the vision of “becoming a service enterprise that customers can trust” and closely followed the annual theme of “improving the foundation, strengthening value-added, and investing and working”. Customer satisfaction was further enhanced, the pace of market expansion became more steady, the ability to operate value-added services continued to increase, and business performance grew steadily.

During the year, the Group's revenue was RMB 3,223.6 million, an increase of 29.7% over the previous year. The gross margin was 26.6%. Profit attributable to company owners was RMB 487.0 million, an increase of 17.0% over the previous year. The Board recommended declaring a final dividend of HK$0.087 per share (equivalent to RMB 0.079 per share) for the current year. Along with the interim dividend, the annual dividend was HK$0.176 per share (equivalent to RMB 0.160 per share), and the annual dividend payout ratio was 50% to give back to shareholders for their long-term support for the Group.

During the year, the Group's revenue from non-commercial property management and value-added services was RMB 2,630.1 million, up 35.5% year-on-year, accounting for 81.6% of total revenue. Among them, basic property management services, non-landlord value-added services and community value-added services accounted for 31.9%, 20.8% and 28.9% of total revenue respectively. Revenue from commercial property management and operation services was RMB 593.5 million, up 8.9% year over year, accounting for 18.4% of total revenue.

Focus on quality improvement and maintain a high level of customer satisfaction

In 2023, the Group will stick to the original intention of service, be guided by customer needs, and continuously improve service quality. During the year, the Group built the high-end service system “Zhenyue System” and launched the first benchmark project, Panyu and Yuefu, showing results in high-end services. At the same time, the Group is committed to building professional capabilities with high added value, piloting self-management of greening, integrating and managing highly specialized greening businesses; establishing a joint venture with Otis to improve the professional level of elevator management; and cooperating with the Guangzhou Institute of Energy of the Chinese Academy of Sciences to develop solutions for low-carbon spaces and environmental management. In addition, the Group launched a special service quality campaign this year, and the overall response rate to customer demand reached 91%, an increase of 11% over the previous year; the cleaning complaint rate dropped sharply. According to survey data from a third-party research agency, the overall customer satisfaction score for the Group's residential properties remained high at 91 points; the overall customer satisfaction score for commercial properties was 99.9 points.

The national layout is deepening, and the pace of market expansion is steady

As of December 31, 2023, the Group had 476 contract projects, with a total contract area of 83.4 million square meters, an increase of 18.2% over the previous year. There are 408 projects under management, with a total management area of 65.2 million square meters, an increase of 26.2% over the previous year. In addition to the stable delivery of the controlling shareholder Yuexiu Real Estate, the Group is also actively expanding the property management needs within the Yuexiu Group and is also steadily advancing market expansion. During the year, the Group signed 113 new projects, adding 15.4 million square meters of contract construction area.

As of December 31, 2023, the four business categories of the Group's residential, TOD, commercial and industrial parks, urban services and public construction accounted for 63.2%, 10.8%, 16.0% and 10.0% of the managed area, respectively. The Group's contract projects have covered 49 cities in China (including Hong Kong). In terms of regional layout, the Group continues to cultivate the core area. 67.9% of the managed area is distributed in the Greater Bay Area and East China region, while nearly 90% of the managed area is located in economically developed Tier 1 and 2 cities.

Value-added services continue to be enhanced, and diversified businesses are being further developed

The Group focuses on community management, builds product strength, leverages inter-business synergy, and promotes diversified and specialized development of the five major value-added services of “life, brokerage, social commerce, beauty, and intelligence”. Value-added business management capabilities continue to increase, and significant growth has been achieved. It is worth mentioning that the Group's value-added services have also been successfully expanded. During the year, the Group's community commercial business successfully expanded into projects such as Tongde Plaza in Guangzhou and Suxufang in Suzhou. Business planning capabilities were verified, and the “Yuehui Time” brand went nationwide; the intelligent business also achieved breakthroughs in various business formats such as smart campuses, smart hospitals, and smart business complexes through external expansion.

During the year, the Group's revenue from value-added community services increased from RMB 650.0 million in the previous year to RMB 931.8 million this year, an increase of 43.3%, mainly due to the increase in service users brought about by the expansion of the management area of non-commercial projects and the diversification of the types of community user services provided to customers.