excellent business services' revenue in the first half of the year was about 2.082 billion yuan, and "is actively considering the merger of business management and property management"
2024-08-31
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the press conference site.
on august 29, excellence business services (06989.hk) disclosed its 2024 semi-annual report.
the financial report data shows that as of june 30, the revenue of excellence business services was about 2.082 billion yuan, an increase of about 13.2% year-on-year. in terms of revenue share, commercial properties accounted for 53.3%, public and industrial properties accounted for 13.2%, residential properties accounted for 15.8%, value-added services accounted for 16.8%, and other services accounted for 0.9%.
in the first half of this year, the gross profit of excellence business services was approximately rmb 422 million, a year-on-year increase of 7.3%; the overall gross profit margin was approximately 20.3%; the net profit was approximately rmb 183 million, a year-on-year decrease of 1.9%; the net profit attributable to the parent was approximately rmb 170 million, basically the same as the same period in 2023. cash and cash equivalents were approximately rmb 1.079 billion.
jia jie, chief financial officer of excellent business services, said at the performance meeting that the company's overall gross profit margin in the first half of the year was 20.3%, and the basic gross profit margin had a slight decline, but it was still basically the same as the full year level in 2023. from an industry perspective, it still maintains a leading advantage.
in the first half of this year, the contract area of excellence business services was approximately 80.08 million square meters, an increase of approximately 9.2% over the same period in 2023; the managed area was approximately 68.12 million square meters, an increase of approximately 12.7% over the same period in 2023, of which the managed property area from third parties accounted for 62.2%.
in the first half of the year, excellent business services signed 87 new third-party project property contracts with a total contract value of approximately rmb 794 million and an annualized contract value of approximately rmb 330 million. commercial property income accounted for 64.8% of basic property service income, and third-party basic property services accounted for 59.8% of basic property service income.
yang zhidong, ceo of excellence business services, said at the performance meeting that the company's managed area will maintain a reserve of 15%, and strive to reach over 100 million square meters in the next two years.
excellent business services stated in its financial report that in the first half of 2024, facing the pressure of the overall economic downturn, the group has always adhered to the long-term development strategy, operated steadily, continuously optimized the business structure with customers as the center, flexibly responded to market changes, strengthened business independence planning, and reduced dependence on related businesses. on the basis of deepening and thoroughly implementing commercial property services, the company has focused on the field of facility management and new tracks, committed to value creation, ensuring that the group maintains an independent, healthy and sustainable development trend and achieves long-term stable growth.
regarding the outlook for future performance, jia jie said that after the de-real estate business started last year, a trend of bottoming out and recovery will be seen. after the company has continuously optimized its business structure over the past two years, its business independence has been continuously improving. the company's scale has been increased through third-party external expansion, and the proportion of commercial and public properties is currently over 80%, and its dominant position will continue to be consolidated in the future. in terms of net profit attributable to the parent company, it is mainly affected by non-operating factors in the medium term. excluding this impact, it is expected that there will be a relatively obvious growth throughout the year. at present, if the overall environment does not change much, the company's performance will basically have a reasonable growth rate in 2026.
li xiaoping, chairman and executive director of excellence business services, said at the performance meeting that the real estate market outlook has not been very good in the past two years, and prices have been falling. however, this year, the central and local policies have been relatively strong. from the information entered by the company in the past one or two months, there has actually been a fluctuation process, which is back and forth compared with last year. according to previous experience, it should be a bottoming process. however, for commercial properties, rental prices are definitely falling, and this is the case in first-tier cities.
when talking about the possibility of merging business management and property management, li xiaoping said that the company's board of directors has been actively considering the plan, but also taking into account its own particularities, it is currently coordinating and handling several key issues. "when considering the merger, excellence group's business management light assets and heavy assets were not clearly separated. the current business and operating entities are the same, and the corresponding business split is being carried out. we have to wait for a period of operation to observe the situation. another important issue is that, judging from the current market conditions, the valuations of the property and business management industries are relatively low, and it is not yet a very suitable opportunity for a merger, but the company is actively considering it and will take relevant actions at the right time.
in addition, some investors asked about the company's share repurchase, to which li xiaoping also responded.
li xiaoping said, "the company's value is currently underestimated, and repurchases will enhance market confidence. the management of the major shareholder has been repurchasing shares since 2021, but there is a problem now, because the proportion of major shareholders is close to 95%. if there is more repurchase, there will be little room, but we will seriously consider whether to repurchase at the company level."
the paper reporter li xiaoqing
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