Shimao Services (00873) announced its 2023 results, with revenue of RMB 8.203 billion and gross profit of 16...
According to the Zhitong Finance App, Shimao Services (00873) announced its 2023 results, with revenue of RMB 8.203 billion and gross profit of RMB 1,646 billion. Operating profit was approximately 344 million yuan, and profit attributable to the company's equity holders was 273 million yuan, turning a year-on-year loss into a profit. The company's equity holders accounted for about 648 million yuan in core net profit, an increase of 29.6% over the previous year. Basic earnings per share was RMB 0.11.
According to the announcement, the increase in core net profit attributable to the company's equity holders is mainly due to drastically reducing personnel costs and expenses through optimizing the personnel structure and adjusting business processes; drastically reducing marketing and administrative expenses through precise marketing methods and centralized administration; and reducing the debt financing ratio and drastically reducing financing costs through adjustments to financing methods.
Property management services are the most important business cornerstone of Shimao Services. They have continued to grow over the years, with a compound annual growth rate of 44.9% over the past five years. In 2023, the revenue scale of property management services reached a new high of RMB 5.292 billion, an increase of 5.0% over the previous year. The main reason was the increase in the construction area delivered and managed by Shimao Group Holdings Co., Ltd. and the increase in the third party market to promote steady growth in the Group's property service revenue, lay a solid foundation for future development, and provide sufficient impetus for diversified business development; the management project portfolio of property management services was re-optimized. The proportion of residential projects located in Tier 1 and 2 cities increased, and the overall quality of management projects was further improved.
As of December 31, 2023, Shimao Services provided a wide range of services for 1,448 projects, with diverse customer types, including residences, universities, public buildings, industrial parks and hospitals. The construction area under construction reached about 251 million square meters; the contract construction area reached about 332 million square meters.
As of December 31, 2023, the Group's cash and cash equivalents, including time deposits with maturity of more than three months, were RMB 4.788 billion, up 2.6% from December 31, 2022. The main reason was the increase in net cash from operating activities during the year, reaching RMB 1.03 billion, which greatly exceeded net profit and achieved high-quality development.