Country Garden service revenue 28.843 billion yuan in 2021

2022-05-17 0 By

Country Garden service management attended the performance meeting.Li Hongmei, reporter of China Real Estate News in Beijing, reported that “in the past year, we have not been affected by various changes in other industries, nor have we adjusted the company’s revenue target for five years because of changes in stock prices.”Li Changjiang, executive director and president of Country Garden Services, commented on the online performance conference that “last year’s report card is excellent.”On March 29, Country Garden Services Holdings Limited (hereinafter referred to as “Country Garden Services”, 06098.HK) released its 2021 results announcement.During the reporting period, Country Garden service revenue reached 28.843 billion yuan, up 84.9% year on year;Gross profit was 8.864 billion yuan, up 67.3% year on year, and gross profit margin decreased to 30.7%;Net profit was about 4.35 billion yuan, up about 56.4 percent year-on-year.In terms of the overall income of the period, its property management service income contributed nearly half, focusing on the pearl River Delta, Yangtze River Delta, the middle reaches of the Yangtze River, Beijing-Tianjin-Hebei and Chengdu-Chongqing five economically developed urban agglomerations.”In the first and second tier cities, I successfully won hundreds of industry commission projects. In the non-residential business, I managed 16 airport projects and 82 industrial park projects.”As for the decline in gross profit margin, Country Garden said that it was mainly due to the increase in the proportion of urban services with low gross profit margin and the impact of the cancellation of social security deduction and exemption policies caused by the epidemic.”The time for large-scale mergers and acquisitions is over. This year and in the future, the focus will be on shoring up weak links.””Said Huang Peng, chief financial officer and co-corporate secretary of Country Garden Services.Li Changjiang is satisfied with the overall performance of Country Garden services in 2021, believing that both traditional and value-added businesses have made different progress.The financial results show that in terms of property management services, country Garden’s revenue in 2021 is about 13.794 billion yuan, up about 60.3% year on year, accounting for about 47.8% of the total revenue;As of December 31, 2021, the Group has approximately 1.438 billion square meters of contract management area and 766 million square meters of fee management area excluding the “three supply and one industry” business.In addition, the property service fee management area and contract management area of Country Garden’s “three suppliers and one industry” business are about 85.2 million square meters, and the revenue is about 2.508 billion yuan, with a year-on-year increase of 11.6% gross margin.The heating business has a fee management area of about 42.3 million square meters, revenue of about 1.222 billion yuan, and gross profit margin increased 10.4% year on year.”In 2021, the number of new industry authority projects 134, year-on-year growth of 198%, among which the first and second tier cities accounted for 57.5%.”Country Garden service management revealed that the winning rate of public bidding projects in 2021 exceeded 50%, much higher than the industry average.Another bright spot in Country Garden’s one-year service report card is community value-added services, which generated about 3.328 billion yuan in revenue in 2021, up about 92.2% year on year, accounting for about 11.5% of the group’s total revenue.The revenue of real estate brokerage services was about 252 million yuan, up about 22.3% year on year.Country Garden community value-added services will also be upgraded from version 1.0 to 2.0 in 2021, from “goods to home” + “service to home” to “downstairs series”.According to the on-site introduction of its management, “Downstairs series”, as the offline traffic entrance of the community, forms differentiated competitive advantages by providing heavy and re-purchase products, and superimpose other suitable businesses. It is expected to open more than 1,000 points in 2022.One-stop life service station includes property service center, Courier station, real estate agency store, laundry, bottled water for sale, exhibition point, matching dining point, intermediary nanny consultation, etc.In terms of commercial operation services, Country Garden will achieve a total revenue of about 654 million yuan and a gross profit margin of 50.3% in 2021. The contracted expansion projects include Chengdu Beicheng No. 8, Chengdu Hangli Plaza, Wuxi Leduhui and so on.As of December 31, 2021, the total bank deposits and cash served by Country Garden amounted to about 11.756 billion yuan, the data showed.The Board has recommended a final 2021 dividend of 29.95 cents per share, representing an increase of approximately 36.9% year-on-year.In terms of liabilities, in 2021, country Garden service current liabilities are about 28.439 billion yuan, non-current liabilities are about 3.649 billion yuan, contract liabilities are about 4.536 billion yuan and lease liabilities are about 209 million yuan.Among the major events of Country Garden service in 2021, acquisition and acquisition are worth mentioning.In the first half of 2021, Country Garden Services successfully acquired and privatised Garbo Services.In September of that year, it acquired all the equity of Fulang Global and all the equity of Neighborhood Music Holdings.According to Huang Peng, chief financial officer and co-company secretary of Country Garden Services, the company has formed a network of seven product lines through acquisitions, covering many formats and entering some new areas.It judged that “the time for large-scale acquisition has passed. In the future, we will introduce talents, build product lines and other aspects to make up for mergers and acquisitions, and focus on shrinking the total amount.”Huang Peng further explained that commercial, commercial writing, residential, asset management will be further strengthened.”The specific amount will be less than in the past. We will not pursue absolute amounts and seize opportunities when they arise.Reduce external financing and recover cash flow internally.”Li Changjiang believes that in the process of merger and acquisition, the integration of different companies is a gradual process.The cooperation of all equity companies will gradually enter the culture of “performance-oriented”.”Although in individual projects, individual companies have flaws in the process of integration, it does not affect the overall situation.”On the basis of increasing area and scale, how to integrate advantages and operate management is a problem that property management enterprises need to think about.The management of Country Garden service emphasizes that there are clear selection criteria for partners or equity partners: high-quality enterprises that conform to country Garden’s service and development philosophy are the basis for cooperation.Take Garbo service as an example. As a local property brand growing up in Chengdu, it always insists on high quality service.This is consistent with country Garden’s brand concept of “Service makes a better life”.After the cooperation is completed, Country Garden Service will provide service capacity building plan for Garbo service, complete service product iteration from service capacity upgrade, customer experience optimization, value-added service expansion, etc., and continuously improve customer satisfaction.The reform of Garbo service shows that Country Garden service pays great attention to post-investment management.In the post-investment management phase, Country Garden Services has a dedicated post-investment management department – Investment development Center.Beijing Shengshi Property is regarded as one of the typical cases of successful post-investment management of Country Garden.The company has completed internal upgrading through brand-driven, enhanced management cadre empowerment, investment in informationization and technology, and construction of value-added business system. After the cooperation, the annual growth rate of core indicators of the company is higher than the group level, and the remuneration of management personnel has been significantly improved.Guo Zhanjun, executive Director and vice president of Country Garden Service Group (in charge of human resource management of Country Garden Service Group), revealed that the company has been actively retaining and developing the teams of m&a companies, promoting the integration of business, team and culture with the concept of “integrated development and inclusive growth”.”All enterprises in the acquisition of the time, must emphasize the quality of the subject matter, location, average management fees, team capacity, business development, including the personality of the major shareholders.”Li Changjiang judged that the whole property acquisition and acquisition situation in 2022 will be different from that in 2021, both in terms of the scale of a single project and the integrity of the business.This year’s acquisition acquisition is not only residential property acquisition, will extend to value-added services.In addition, Li Changjiang believes that in the post-epidemic era, there will be higher requirements on property services.However, government policy will strongly support property services.”There is a bigger opportunity for physical companies.”