On March 27th, Country Garden Service released the performance announcement for 2023. According to the announcement, in 2023, the service income of Country Garden increased from about 41.367 billion yuan in the same period of 2022 to about 42.612 billion yuan, an increase of about 3%.
The core net profit attributable to shareholders of the company is RMB 3.94 billion; The administrative expenditure rate was 9.1%, 1.2 percentage points lower than the same period last year.
By December 31, 2023, except for the "three supplies and one industry" business, the contract management area of Country Garden service was about 1.633 billion square meters, and the fee management area was about 957 million square meters; In addition, the contract management area and charge management area of property services in the "three supplies and one industry" business are 93.4 million square meters and 88.6 million square meters respectively.
Business development maintained a steady momentum and adhered to the "1+N+X" development strategy.
In 2023, Country Garden services maintained a steady growth trend in revenue, with annual revenue reaching about RMB 42.61 billion. In terms of business development, the company not only maintained a steady degree of marketization, but also further increased the proportion of third-party revenue, reaching a new high of about 96.9%.
In terms of income structure, Country Garden services continue to be optimized, and property management services continue to play a cornerstone role. Compared with the same period of last year, the income from property management services increased by about 8.1% year-on-year, reaching about RMB 24.70 billion, accounting for about 58.0% of the total income. At the same time, the proportion of non-owner value-added service income further decreased to 3.6%.
In recent years, Country Garden Service has performed well in financial management, continuously strengthened financial security, ensured a stable cash inflow, and provided a solid financial guarantee for the company’s business development. Its financial statements have been continuously optimized, its liquidity has remained good for a long time, its asset-liability ratio has gradually decreased, its interest coverage ratio has continued to increase, and its credit capacity has been further improved.
In terms of financial cash flow, as of December 31, 2023, the net cash from Country Garden Services’ operating activities in the past 12 months was about RMB 4.615 billion, a year-on-year increase of about 38.9%. At the same time, the company’s total bank deposits and cash amounted to about RMB 12.939 billion, up about 13.7% year-on-year, showing a sound financial position and good development momentum.
On the basis of maintaining a stable cash flow, Country Garden Services always attaches great importance to shareholder returns and is committed to protecting the interests of investors. Since listing, the total amount of dividends paid by the company has reached about HK$ 4.25 billion, and the total amount of shares repurchased by the company has reached about HK$ 1.10 billion. In addition, the Board of Directors proposed to declare 23-year final dividend and special dividend totaling 29.46 cents per share.
Looking back on 2023, Country Garden Services adhered to the "1+N+X" community value-added development strategy, and further focused on strategic business to strengthen capacity building.
Community value-added services have become a new engine to promote the sustained and healthy growth of Country Garden services. By building a professional talent team, expanding the ability of resource integration, combining with high-quality partners in various industries, and relying on the natural advantages of the property near the community scene, it is promoting the competitiveness of the core business of community value-added services in key cities across the country.
In 2023, Country Garden’s community value-added service revenue was about RMB 3.753 billion, accounting for about 8.8% of the Group’s total revenue.
Country Garden Service adheres to the "1+N+X" community value-added development strategy, further focuses on strategic business and strengthens capacity building. Country Garden service upgrades community media to integrated marketing, and builds a complete marketing link of "communication-experience-purchase-sharing" based on community scenes to create differentiated products with core competitiveness. The Group reached an integrated marketing cooperation with the cutting-edge intelligent cleaning appliance brand "within INXNI" and held over 800 experience activities in the community.
Country Garden Service cooperates with Guotai Liquor Group to create an immersive experience scene of liquor sales based on customer demand, and is committed to providing excellent products and services to consumers. Country Garden Service actively uses its site resources and service expertise in the field of property management to promote the innovative business model of clothes washing and maintenance stores, and plans to open 100 franchised stores this year to meet the growing market demand.
Driven by customer satisfaction, we will actively improve the service quality.
Customer satisfaction is an important foundation for the Group’s sustainable development. Country Garden services are driven by customer satisfaction and actively improve the service quality. Focusing on the service pain points, the Group has targeted to enhance the customer experience.
In 2023, Country Garden Service completed 24,000 potential risk source rectifications in the park; In terms of facilities and equipment safety, 2.433 million inspection and maintenance orders were completed, and 5.319 million repair orders were reported; Completed 13,000 large-scale fire drills and 11,000 elevator safety drills.
Country Garden Service has been committed to promoting community renovation projects to enhance customers’ life experience. Up to now, it has invested about RMB 400 million, covering 1,594 community projects. These projects include the overall renewal and improvement of community infrastructure, the upgrading of health and sports facilities, and the intelligent transformation of the community.
At the same time, Country Garden service has also increased its investment in scientific and technological intelligence. This includes AIoT services such as cleaning robots, equipment and IoT modules, IoT platforms and charging pile platforms, as well as self-developed IoT solutions such as man-machine collaborative operation and smart parking. These investments are aimed at improving service quality and management efficiency through digital and intelligent services.
With the residential business as the core, Country Garden pursues the high-quality development of the whole business, and the market expansion maintains a strong momentum. This year, the Group signed 1,556 new brand expansion projects, with an annualized saturated income of about RMB 3.726 billion. The Group makes full use of the geographical coverage advantages of the projects under management to expand its business globally. Among the newly-added outreach projects, 45% are located in first-and second-tier cities, while the new expansion projects in third-and fourth-tier cities account for 55%.
Looking forward to 2024, Country Garden services will continue to focus on community quality improvement and environmental transformation. The old facilities will be completely updated, and the ecological environment of the project will be rectified, so as to further improve the living experience of the owners and make the community glow with new colors. By optimizing basic property services and combining scientific and technological management and operation, Country Garden Service is committed to continuously improving customer service experience, striving to build a safe, green, intelligent, humanistic and convenient community environment, and turning owners’ yearning for a better life into reality.