YUEXIU SERVICES (06626) announces its full-year performance for 2023: steady progress in market expansion, continuous enhancement of value-added services.

On March 18, 2024, YUEXIU SERVICES (06626) announced its performance for the full year ending 2023. During the reporting period, the group achieved operating income of RMB 3,223.6 million, an increase of 29.7% year-on-year; attributable profit to shareholders was RMB 487.0 million, an increase of 17.0% year-on-year; basic earnings per share were RMB 0.32, with a final dividend of RMB 0.079 per share, along with a mid-year dividend, the full-year dividend was RMB 0.160 per share, representing a dividend payout ratio of 50%. Mr. Lin Feng, a non-executive director and chairman of the board of YUEXIU SERVICES, stated: "In 2024, the group will focus on the theme of 'improving quality with dedicated service and creating efficiency with lean management', strengthen investment and construction of basic services, enhance market competitiveness, and strive for greater development space. The group will focus on improving service capabilities and customer satisfaction, adhere to a long-term perspective, continuously enhance customer satisfaction and brand recognition through high-quality services and products, continuously strengthen core competitiveness, and aim to become a trusted service enterprise for customers." Steady growth in operating performance, with a full-year dividend payout ratio increased to 50% In 2023, the group focused on its vision of becoming a trusted service enterprise for customers, with the annual theme of "improving basics, strengthening value-added, and expanding investments". Customer satisfaction further improved, market expansion progressed steadily, and the operational performance continued to grow steadily. In the year, the group's operating income was RMB 3,223.6 million, an increase of 29.7% year-on-year. The gross profit margin was 26.6%. The attributable profit to shareholders was RMB 487.0 million, an increase of 17.0% year-on-year. The board of directors proposed a final dividend of HK$0.087 per share for the year (equivalent to RMB 0.079 per share). Along with the mid-year dividend, the full-year dividend was HK$0.176 per share (equivalent to RMB 0.160 per share), with a full-year dividend payout ratio of 50% to reward shareholders for their long-term support. In the year, the group's income from non-commercial property management and value-added services was RMB 2,630.1 million, an increase of 35.5% year-on-year, accounting for 81.6% of total revenue; among them, basic property management services, non-owner value-added services, and community value-added services accounted for 31.9%, 20.8%, and 28.9% of total revenue, respectively. Income from commercial property management and operation services was RMB 593.5 million, an increase of 8.9% year-on-year, accounting for 18.4% of total revenue. Focus on quality improvement, customer satisfaction remains high In 2023, the group adhered to its service philosophy, focused on customer needs, and continuously improved service quality. During the year, the group established a high-end service system called "Zhenyue Series," with the first benchmark project landing in Fanyu Heyuefu, demonstrating the effectiveness of high-end services. Meanwhile, the group is committed to building high value-added professional capabilities, piloting self-operated greening to integrate and manage greenery operations; establishing a joint venture company with Otis to enhance elevator management expertise; and cooperating with the Guangzhou Institute of Energy of the Chinese Academy of Sciences to develop solutions for low-carbon spaces and environmental governance. In addition, the group conducted a special initiative on service quality in the year, with an overall customer response rate of 91%, an 11% increase year-on-year, and a significant decrease in cleanliness-related complaints. According to survey data from third-party research agencies, the overall customer satisfaction score for residential properties and commercial properties maintained at 91 and 99.9 points, respectively. Deepening national layout, steady market expansion pace As of December 31, 2023, the group had 476 contracted projects with a total contracted area of 83.4 million square meters, an 18.2% year-on-year increase. There were 408 managed projects with a total managed area of 65.2 million square meters, a 26.2% year-on-year increase. In addition to the stable deliveries of its holding subsidiary YUEXIU PROPERTY, the group actively expanded the property management needs within the Yuexiu Group and steadily promoted market expansion. During the year, the group signed 113 new projects, with an additional contracted construction area of 15.4 million square meters. As of December 31, 2023, the residential, TOD, commercial and industrial park, urban services, and public buildings accounted for 63.2%, 10.8%, 16.0%, and 10.0% of the managed area, respectively. The group's contracted projects covered 49 cities in China, including Hong Kong. In terms of regional layout, the group continued to deepen in core areas, with 67.9% of the managed area distributed in the Greater Bay Area and East China region, with nearly 90% of the managed area located in economically developed first and second-tier cities. Continuous enhancement of value-added services, diversified business development The group focuses on community management, product development, synergies, and the promotion of professional services across the five major value-added services areas: livelihood, agency, social business, beauty, and intelligence. The operational capabilities of value-added services continued to strengthen, achieving significant growth. It is worth mentioning that the group's value-added services have also successfully expanded externally. During the year, the group successfully expanded its community business to projects such as Guangzhou Tongde Square and Suzhou Suxu Square, with its commercial planning capabilities being validated, and the "Yuehui Shiguang" brand expanding nationwide; the intelligent business also made breakthroughs in multiple formats such as smart campuses, smart hospitals, and smart commercial complexes through external expansion. During the year, the income from the group's community value-added services increased from RMB 650.0 million in the previous year to RMB 931.8 million in the current year, a whopping 43.3% increase, mainly due to the expansion of the managed area of non-commercial projects and the diversification of services provided to customers.