platformfornft| Heavy! 2024 China's Top 100 Comprehensive Property Services Enterprises Released

From: Zhongwu Research Institute, Zhongwu think tank

On May 8, 2024, the research conference of China's top 100 property enterprises with comprehensive strength was solemnly held in Hefei, sponsored by Beijing Zhongwu Zhihui Information Technology Co., Ltd. (Zhongwu think tank).Platformfornft"2024 China's top 100 property enterprises research report", at the same time solemnly unveiled "2024 China's top 100 property service enterprises", "2024 China's top 50 property state-owned enterprises", "2024 China's top 100 property quality service enterprises", "2024 national community service brand enterprises" and a series of sub-format, regional and benchmarking projects list, jointly witness the basic industry of Chinese property service enterprises Changqing, performance Changhong!

Follow [China Academy of things] and reply to "100" to get the full report.

China Science and Technology Research Institute

Zhongwu Research Institute, a Zhongwu think tank, promotes the innovation, development and upgrading of the property management industry, and is a time friend with the property industry.

198 original content

Official account

Follow [China Academy of things] and reply to "100" to get the full report.

China Science and Technology Research Institute

Zhongwu Research Institute, a Zhongwu think tank, promotes the innovation, development and upgrading of the property management industry, and is a time friend with the property industry.

198 original content

Official account

01

Current situation of the industry

PARTPlatformfornft. 01

Management scale:

Emphasize effective scale growth

Focus on effective supply of high-quality resources

1. The scale of the top 100 enterprises 111Platformfornft4.1 billion square meters, with a market share of 28.47%

By the end of 2023, the area under management of the top 100 enterprises reached 11.141 billion square meters, an increase of 9.41 percent over the same period last year, and the growth rate continued to slow down, with a market share of 28.47 percent, an increase of 0.97 percent over the same period last year.

Large industries and small leaders are typical competitive characteristics of the property industry. By the end of 2023, there were 10 enterprises in the industry with a management area of more than 300 million square meters, accounting for about 14% of the market share in the industry, with a further increase in concentration.

2. Attach importance to the improvement of market expansion ability and enhance the development and maintenance of high-quality customers

By the end of 2023, the third-party management area of the top 100 enterprises reached 6.377 billion square meters, an increase of 8.59 percent over the same period last year, accounting for 57.23 percent of the total area under management, which was basically the same as that of the same period last year.

3. Non-resident track is the focus of competition for property enterprises, and there is a broad space for the future.

Many enterprises compete for layout in the field of non-residential property, and residential property still occupies a dominant position. By the end of 2023, the non-residential property management area of the top 100 enterprises reached 3.727 billion square meters, an increase of 8.40% over the same period last year, accounting for 33.45% of the total area under management, basically the same as the same period last year.

At present, in addition to the relatively mature business writing and industrial park market, along with the logistics socialization reform, the released schools, hospitals, military and other fields have also become the focus of the layout of some enterprises. In addition, B-end customer non-core business outsourcing has also become a trend, FM business has also become a race track for many enterprises.

Operating results:

It still exists to increase income without increasing profits.

The industry has entered an era of small profits.

1. The growth rate of revenue has slowed down, and the increase in income and profit has continued.

In 2023, the operating income of the top 100 enterprises reached 343.501 billion yuan, an increase of 7.46% over the same period last year, and the growth rate continued to slow, with a market share of 20.34%.

The head enterprise maintains a strong ability to generate income. In 2023, there are 10 enterprises in the industry with operating income exceeding 10 billion yuan, accounting for about 11% of the market share in the industry, and the degree of concentration has further increased.

The phenomenon of "increasing income without increasing profit" is prominent and continues. The negative impact of real estate risk continues to affect the property industry. Due to the sharp reduction of related business and the provision for impairment of accounts receivable, the risk of bad debts increases, seriously squeezing the profit space of enterprises. In 2023, the gross profit of the top 100 enterprises reached 69.115 billion yuan, an increase of 3.44% over the same period last year, and the growth rate continued to slow. Net profit was 20.609 billion yuan, down 4.41% from the same period last year, and continued negative growth. Some enterprises adjust their strategies in time, tamp the chassis, eliminate risks, and clear gradually.

The industry has entered the era of small profits. In 2023, the average gross profit margin of the top 100 enterprises was 20.12%, a decrease of 0.78 percentage points over the previous year, and the average net profit margin was 6.00%, a decrease of 0.75 percentage points over the previous year.

2. Basic property services are still the main force, and community value-added services are profitable.

In 2023, basic property service income and gross profit increased by 12.02% and 9.51% respectively compared with the same period last year. Community value-added service income and gross profit increased by 4.49% and decreased by 1.31% respectively compared with the same period last year. Non-owner value-added services are the hardest hit, with neither income nor profits in 2023.

Basic property services are still the main source of income for property enterprises and contribute more than 60% of their profits. In 2023, the basic property service income of the top 100 enterprises accounted for 71.2% of the total operating income, an increase of 2.90 percentage points over the same period last year, contributing 63.89% of the gross profit and an increase of 3.54% over the same period last year. The proportion of income and gross profit of community value-added services and non-owner value-added services has decreased compared with the previous year, of which the proportion of non-owner value-added services income and gross profit has been less than 10%.

The gross profit margin of the three major business sectors of property enterprises has declined, and the gross profit margin of community value-added services continues to be higher than that of the community value-added services. In 2023, the gross profit margin of basic property services, community value-added services and non-owner value-added services decreased by 0.41%, 1.77% and 5.61% to 18.06%, 30.15% and 18.98%, respectively. Among them, the profitability of community value-added services is still strong, lasting more than 30%.

Operational capabilities:

The proportion of labor costs has declined.

The initial effect of improving quality and increasing efficiency

1. The operating cost rate is 79.88%, and the labor cost still accounts for more than half.

In 2023, the operating cost of the top 100 enterprises reached 274.386 billion yuan, an increase of 8.52 percent over the same period last year, which was faster than the growth rate of operating income (7.46 percent). The operating cost rate reached 79.88 percent, an increase of 0.78 percent over the same period last year. In addition, the property as a labor-intensive industry has not changed, and labor cost is still the main cost composition of the enterprise. In 2023, only self-employed labor costs accounted for 51.2%, down 1.14 percentage points from the previous year, still more than half, superimposed accounted for nearly 20% of outsourcing costs, labor costs in a broad sense accounted for about 70%.

2. Operational efficiency: the improvement of quality and efficiency is slightly effective, and the performance index has been improved.

As a result of multi-measure cost control measures, the per capita management area of the top 100 enterprises reached 7523.59 square meters per person in 2023, an increase of 18.93% over the same period last year.PlatformfornftPer capita revenue and per capita net profit reached 233000 yuan and 13900 yuan per person, respectively, an increase of 16.80% and 3.90% over the same period last year. As revenue growth is slower than area growth, revenue per unit area of the top 100 enterprises decreased by 1.79% to 30.83 yuan per square meter in 2023 compared with the same period last year.

Operational risk:

Cash flow has been optimized

Impairment risk still needs to be continuously optimized.

1. The growth rate of accounts receivable has decreased significantly, while cash on hand has increased.

A number of enterprises have indicated that they attach great importance to accounts receivable and take a series of measures to achieve initial results. By the end of 2023, the total value of accounts and bills receivable of 61 listed property enterprises reached 85.405 billion yuan, equivalent to the total income of the two country Garden service years, with a growth rate of 8.43%, which was significantly lower than that of the previous year, but still higher than the growth rate of operating income, and its share of operating income continued to increase.

A number of property enterprises pay close attention to money, multi-strategy to improve the property payment rate and prepayment rate, enterprises began to increase the amount of funds. In 2023, the cash and cash equivalents of 61 listed property enterprises reached 125.725 billion yuan, an increase of 12.00% over the same period last year.

It is still very difficult for customers to pay, and the payback cycle continues to lengthen. In 2023, the turnover days of accounts receivable increased to 113 days, the speed of payback became slower, and the liquidity risk of enterprise funds increased. This brings greater pressure to the operation of property enterprises.

2. The risk of asset impairment has improved, and it will take time to repair.

In 2023, the total amount of impairment losses on financial assets of 25 listed property enterprises reached 8.144 billion yuan, a decrease of 0.33% over the same period last year, and more than half of the enterprises' losses decreased compared with the previous year. It is expected that some property enterprises still have some impairment pressure, and it will take time to repair.

Enterprise differentiation:

Increasing differentiation among enterprises

Central state-owned enterprises are more competitive

1. Scale differentiation: central state-owned enterprises continue to grow at a high rate of more than 20%.

There are differences in the management area of property enterprises with different backgrounds, the growth rate of property management area of central state-owned enterprises is generally higher than 20%, and some private enterprises begin to grow negatively. By the end of 2023, it was revealed that the average managed area of the 12 central state-owned enterprises reached 183 million square meters, which still achieved a high growth rate of 23.16% on the basis of large volume and high base. While private enterprises are greatly affected by related housing enterprises, 40 private enterprises in the management area of an average of 136 million square meters, the growth rate slowed to 7.75%, the first single-digit growth rate.

2. Performance differentiation: central state-owned enterprises achieve high growth in revenue and profits.

Revenue differentiation has also intensified. In 2023, the average property operating income of 14 central state-owned enterprises reached 7.864 billion yuan, an increase of 15.78% over the same period last year, significantly higher than the growth rate of 47 private enterprises in the same period (4.24%). Among the properties of central state-owned enterprises, only Shandong businessmen have negative revenue growth, while the other 13 property enterprises with state-owned background have achieved income increase and profit increase, and the income growth rate of central enterprises and property enterprises such as China Resources Vientiane Life and Jianfa property has all exceeded 20%. In private property, the revenue of 12 enterprises, such as Shimao service, financing service, Jinke service, Hejing leisurely living, and so on, declined.

The reduction of related business caused by the decline of real estate and the provision for impairment of accounts receivable have seriously squeezed the profit space of enterprises, especially for private enterprises out of danger, operating losses and increasing the differentiation of net profits among enterprises with different backgrounds. In 2023, the average property net profit of 14 central state-owned enterprises reached 758 million yuan, an increase of 27.44% over the same period last year, an increase of 7.07% over the same period last year. While the average property net profit of 47 private enterprises was only 120 million yuan, down 29.67% from the same period last year, the decline narrowed, but continued to decline.

In 2023, 9 of the 61 listed property enterprises reported losses, and all of them were private property enterprises. The net profit of 31 property enterprises was negative, of which only one was a state-owned enterprise (Shandong businessmen). 13 state-owned property enterprises (a total of 14) and 16 private property enterprises (a total of 47) have achieved income and profits.

3. Anti-risk ability: central state-owned enterprises have stronger anti-risk ability.

Central state-owned enterprises are more risk-resistant. In 2023, the growth rate of property receivables in central state-owned enterprises began to be lower than that of operating income, and its cash and cash equivalents continued to increase, the collection of property fees, cash flow is relatively healthy, and the hidden danger of bad debts is relatively low. The growth rate of property receivables of private enterprises is still higher than that of revenue growth, but the gap has been reduced, and the risk of private enterprises has also been alleviated to a certain extent. Specifically, in 2023, the growth of property receivables and bills of 14 central state-owned enterprises slowed significantly, with a growth rate of 11.91%, a decrease of 36.67 percentage points from the same period last year, and the growth rate was lower than the growth rate of operating income for the first time. The growth rate of property receivables and bills in 47 private enterprises also slowed significantly, from 40.84% in 2022 to 7.34% in 2023.

At the same time, in 2023, the average value of property cash and cash equivalents in 14 central state-owned enterprises reached 4.346 billion yuan, an increase of 14.91% over the same period last year. The average growth rate of cash and cash equivalents of 47 private properties changed from negative to positive, reaching 9.41% to 1.381 billion yuan in 2023.

In addition, due to the decline of the payment ability of customers such as affiliated housing enterprises, governments, owners, etc., the turnover days of accounts receivable generally increased, but compared with private enterprises, the turnover days and growth rate of accounts receivable of central state-owned enterprises were lower, and they had stronger ability to recover accounts.

4. Capital market: state-owned property enterprises are more popular.

Property stocks are deeply affected by upstream real estate, and the overall performance of property stocks has been poor since the second half of 2021. Relatively speaking, the property of central state-owned enterprises has more development advantages. At present, the capital market is not active, only Shenye property, Hongying City Operation Service and Xi'an Jingfa property are the only enterprises with clear listing actions in the near future, and all of them are local state-owned property enterprises.

From the stock price trend, the central state-owned enterprise property has a strong resource endorsement, its own operation is sound, more favored by the capital market, affected by the overall market, but also in a downward trend, but compared with the sound performance of private enterprises, the decline of private enterprise property is particularly obvious.

02

New changes

PART.02

New quality productive capacity property

Outline the new route of industry development

The 2024 government work report listed "vigorously promoting the construction of modern industrial system and speeding up the development of new quality productive forces" as the top task of the government in 2024. Various industries comply with the policy development, cultivate new quality productivity according to time and local conditions, and provide strong support for the high-quality development of the industry. For the property industry, not only the property industry actively explore and practice new quality productivity, the development of new quality productivity is also promoting the property industry to achieve high-quality development.

1. The property industry can provide service support for new quality productivity.

New quality productivity focuses on emerging industries and future industries, which can not achieve high-quality development without high-quality, professional and omni-directional logistics support services. The service capability and professionalism demonstrated by property enterprises in FM facility management business can provide service support for new quality industries such as "new manufacturing, new energy, new materials, electronic information", and provide comprehensive, one-stop service guarantee of "high technology, high efficiency and high quality" to meet the needs in R & D centers, production bases, office buildings, factories, parks and other scenarios, helping them to focus on the development of their core business.

2. new quality productivity promotes the high-quality development of the property industry.

For the property industry, the development of the new quality productivity enabling industry is mainly reflected in four aspects:

First, the innovation of the new quality industry, to promote the transformation and upgrading of the property industry, leading the industry to high-end, intelligent, green direction.

Second, the application of cloud computing, big data, artificial intelligence and other technologies can enhance the fine management ability of property enterprises, pry the high-efficiency and high-quality development of property services, and improve the efficiency, service quality and satisfaction of property services.

Third, the new quality productivity points to the development of modern producer services, which is expected to open up a new space for the development of property enterprises in the field of FM facility management.

Fourth, the application of digital intelligence to the property service scene is expected to play a greater value in the fields of intelligent pension, smart medical care, digital city, digital community and so on.

3. Property industry actively explore and practice new quality productivity

Under the main tone of high-quality development, adhering to the concept of innovative development, material enterprises devote themselves to exploring the integration of innovation, digital intelligence, green, specialization and other aspects, which is also the embodiment of the practice of new quality productivity in the property industry.

First, cultivate new industries. In recent years, the property began to abandon the disadvantages of traditional thinking, break through the inherent boundaries, and focus on exploring the "three new" services of new business type, the new track and the new service.

Second, science and technology and technological innovation. Carry out empowering business, alleviate the shortage of personnel, and improve the quality and efficiency of property management.

Third, green development. Take active actions in the areas of green, energy saving and low carbon, actively issue ESG reports, integrate ESG concepts into all aspects of corporate strategy and property management, and advocate sustainable development.

Fourth, the construction of a contingent of talents. A number of property enterprises optimize the "selection and retention" of the four talent scenes, increase the construction of talent team, and forge the core competitiveness of high-quality service.

The government has set a tone to encourage property

Create a good environment for the development of the industry

1. Explicitly encourage property development and declare for the first time that development is non-residential

The policy clearly proposes to "encourage property development" to inject new confidence into the property industry. On December 27, 2023, the National Development and Reform Commission issued the Industrial structure Adjustment guidance Catalog (2024 edition), which once again clearly included property services in the "incentive category" catalogue, and expressed its position on non-residential property services for the first time. In addition, the policy guides the transformation to the consumer service industry, which is consistent with the intensive policies introduced by the industry in recent years, such as "property service + life service", "community embedded service", "complete community", "quarter-hour life service circle" and so on.

2. to promote the construction of a beautiful China, property enterprises have a bright future.

On January 11, 2024, the CPC Central Committee and the State Council issued the opinions of the CPC Central Committee and the State Council on comprehensively promoting the Construction of a Beautiful China, which formulated the realization strategy of a beautiful China from the top-level design, anchored three time nodes and drew a clear road map. Accordingly, property has a bright future in the field of urban services, green energy conservation and carbon reduction, and responding to the "opinions" call to help the whole people take action to participate in the construction of a beautiful China.

3. Practice the construction of "four good" and build high-quality life service

To build a "good house" is not only to meet the housing itself, but also to be green, low-carbon, intelligent and safe, with an emphasis on "good service" and "good maintenance". That is, pay attention to the quality of service, help to maintain and increase the value of assets.

The construction of "good community, good community and good urban area" not only emphasizes the improvement of property service standards and professional ability, but also should, under the guidance of the government, solve the urgent problems of residents in residential areas, and build a community life service circle. and then extended to the urban space, to meet the people's yearning for a better life.

4. Focus on the special renovation of small incisions to improve the urgent problems of people's livelihood.

Many places have begun to revise relevant policies and regulations to promote the special rectification of outstanding problems in the field of people's livelihood, so as to protect "great people's livelihood" with "small incisions." For example, the charging safety of electric vehicles, the working mechanism of complaints / reports, the management of common funds of owners, the disclosure of property service information, the advance collection of property fees, the two-way adjustment of property fees, the use of proprietary and common parts of property, the sale (rental) of parking spaces, the standard of the use of battery cars, the installation of elevators and charging piles in existing houses.

Capital reconstructs the cognition of property value

Dividend has become the current focus.

Since the property industry entered the capital market in 2014, the property industry has ushered in a decade of rapid change. There have also been many changes in the capital market's perception of the value of the property industry. In particular, in a short period of two or three years from 2018 to 2022, investors have gone from enthusiastic pursuit to indifference, and the evaluation criteria for the property sector have also changed from expectations of future development space to more pragmatic actual returns. valuation logic also changes from the expected space and scale of community value-added services to net profit to dividends.

This feature appears obviously in the most New year's reporting season, and many property enterprises have increased their dividend and dividend rates in 2023. Specifically, listed property enterprises increased their dividends, and the 24 listed property enterprises that continuously implemented the dividend plan totaled 8.037 billion yuan in 2023, up 36.18% from the same period last year, while the net profit of enterprises continued to decrease and the rate of decline narrowed over the same period.

At the same time, the average dividend rate of 24 listed property enterprises increased to 66.31% in 2023, an increase of 18.83 percentage points over the same period in 2022, and more than 70% (75%) of enterprises achieved an increase in dividend rate.

In addition, 28 listed property companies that continue to pay dividends have an average dividend yield of 6.64% in 2023, an increase of 2.26 percentage points over the same period last year. Property stocks offer a higher cash yield than the current 10-year treasury bonds, which yield only about 2.2%. However, combined with the current depressed property stocks, the current property stock prices are indeed undervalued.

Property transformation and upgrading in the new era

Building a pluralistic space for property services

First, the scope of services, from single to integrated. In addition to basic property maintenance and safety management, owners' requirements for deeper services such as ecological environment protection, community activity organization and facilities provision are also increasing.

Second, the service content, the business boundary of property enterprises is broadening, and the service is more diversified. The service scope of property enterprises extends from traditional basic services to domestic economics, old-age care, culture, health, housing brokerage and other businesses that are closely related to residents' life services, as well as to business operations and FM facilities management closely related to non-resident customers.

Third, the service perspective, from "inside" to "outside", give full play to an important link and value in the industrial chain. As an important participant in grass-roots governance, the property industry plays an important role in linkage blocks, government and other aspects, such as neighborhood disputes, property fee contradictions, parking spaces, home decoration elevators and other grass-roots social problems.

Fourth, assume social responsibility. Actively participate in social governance, in public health, government emergency dispatch, etc.; love donation, consumption to help farmers and other ways to assume more social responsibility; create many jobs to make a major contribution to the stability of the grass-roots level.

Fifth, sustainable development. Driven by the goal of "double carbon", building energy consumption management, carbon emission big data accumulation analysis, low-carbon energy-saving operation, green and healthy building system certification will become the new responsibilities of property enterprises.

03

Development bottleneck

PART.03

First, the malpractice of radical expansion is highlighted, and the quality of service is difficult to be guaranteed.

Second, the scale growth faces the bottleneck, the bad competition aggravates the operation pressure.

Third, the property fee is limited and the price adjustment is difficult, and the road of market-oriented pricing is long.

Fourth, multiple factors squeeze the profit space, and the increase of income without profit persists.

Fifth, the value-added service has not been broken, and the business model has yet to be explored.

VI. The old-age service industry has a long chain and still needs to be cultivated and explored continuously.

Property enterprises are still dragged down by real estate, and the negative impact is still difficult to eliminate.

VIII. Negative public opinion has aroused concern, and the image of the industry has been greatly impacted.

For more information, please see the Research report of 2024 Top 100 property Enterprises in China.

Follow [China Academy of things] and reply to "100" to get the full report.

China Science and Technology Research Institute

Zhongwu Research Institute, a Zhongwu think tank, promotes the innovation, development and upgrading of the property management industry, and is a time friend with the property industry.

198 original content

Official account

04

Potential space

Non-residential form:

Expand, improve quality and break the game

Deep excavation has a large cooperative space.

Due to the decline of the increment of new houses, the fierce competition in housing stock and the low level of property fees, property enterprises gradually increase the layout in the non-residential form, in order to enrich the management business portfolio, form a balanced business format, and enhance the competitiveness and risk-resistant ability of enterprises. At the same time, on the basis of ensuring the basic property services, increase the mining of the needs of non-residential customers, cooperate with the project layout, further explore the value-added services of to B, and extend the development space and momentum of non-residential forms.

City Services:

Widen the property space

The blue sea market still needs to be tapped.

Revenue from the urban services sector has begun to take shape, but it still accounts for less than 10 per cent of total revenue. In 2023, 15 listed property enterprises disclosed their urban service performance, and their total urban service income reached 13.145 billion yuan, an increase of 8.39% over the same period last year, accounting for 8.61% of the total operating income.

The average gross profit margin of the nine enterprises that disclosed the gross profit margin of urban services reached 15.60%, which continued to decrease. The gross profit margin of each company's urban service business is mainly in the range of 10-20%, slightly lower than the overall gross profit margin, but also generally lower than the gross profit margin of sanitation enterprises.

FM facility management:

Rise with the homeopathy of new quality productive forces

Open a new chapter

As the forerunner of FM facility management business, after years of exploration and market sharpening, the business model has become more mature, the business structure tends to be stable, and has accumulated extensive experience.

According to the latest data, CBRE's FM-related income reached $5.806 billion in 2023, an increase of about 13.03% over the same period last year and accelerated growth, accounting for 31.77% of the company's total revenue, an increase of 4.41% over the same period last year. In addition, about 80% of CBRE's top 100 customers purchased four or more services in 2022, up from less than 25% a decade ago. Among them, the services provided by CBRE for the top 10 customers all contain FM business, and the related revenue is more than 10 million US dollars. The property and facility management income of Jones Lang LaSalle and DTZ reached 14.131 billion yuan and 6.504 billion yuan respectively, up 6.5% and 3.11% over the same period last year, accounting for 68.07% and 68.51% of the total income, an increase of 4.46% and 6.09% respectively over the same period last year.

Domestic FM explorers are also rising rapidly. At present, the customers of domestic FM facilities management services mainly come from the Internet, finance, biomedicine, government agencies, high-end manufacturing and other industries, their services are more Chinese characteristics, more in line with the needs of domestic owners, but the service content is still pan-administrative support services, technology-intensive business is still relatively few.

FM Certification helps to strengthen Business Competitiveness

In the layout of FM facilities management related business, if you want to stand out, it is very important to improve awareness and professionalism, improve system standards, and build competition barriers.

In the direction of standardization, the International Organization for Standardization (ISO) formally launched ISO41001 "facilities Management system-requirements and use guidelines" in April 2018. the standard is based on the framework of ISO management system and aims to unify the understanding of the core concepts of facility management in all fields around the world. it is not only the certification of ISO41001 management system, but also the international standard of ISO 41000 series of facility management, and it is a knowledge system. It is also a summary of global best practices in facility management, involving all aspects of facility management, including the definition of terms of facility management, the procurement of facilities management services, the scope / core concepts / values of facility management, the strategy formulation of facility management, the impact of facility management on organizational behavior, and so on.

At present, there are only less than 10 enterprises that have passed the certification of ISO 41001 management system, such as investment promotion surplus, Wanwu Liang Bank and so on. Passing the FM system certification is not only to get the certificate, but also to rely on the FM facility management business system to check and fill the gaps in its existing system, optimize and upgrade the process, which can help it to improve its business capability, and it is also a strong proof of the competitiveness of enterprise FM facility management business.

Value-added services:

Dig deep into the opportunities of multiple service scenarios

Great potential for growth

Strengthen internal business incubation and establish professional subdivision companies

The development of community value-added services is driven by traditional flow and resource transformation, and is moving towards a new stage of building the capacity of core products and vertical industries.

Cross-circle to create complementary advantages and work together to build a community ecological industry chain

A number of property enterprises in-depth mining and grasp the needs of owners, try to start from a small cut, single business, cross-circle cooperation with high-quality resources, explore better quality, more cost-effective services and products, and create a community service ecosystem. Among them, property + wine enterprises is one of the areas that many enterprises are trying to explore.

Group meal business:

Have trillion market space

The market has a bright future.

According to the incomplete statistics of Zhongwu think tank, a total of 14 property enterprises mentioned their layout of group meals / catering services in their annual reports. Among them, six listed property enterprises that disclosed the group meal-related business continued to increase their business income. By 2023, the total revenue from the group meal business reached 1.121 billion yuan, an increase of 33.47% over the same period last year. However, due to the short layout time of the property enterprises in the group meal business sector, the contribution in their overall revenue is still less than 10%, and there is still a lot of room for growth in the industry.

Old-age services:

Conform to the idea of the government in power

Expected growth in market space

1. The pension service conforms to the national policy and the concept of governance.

"property + home pension" is a new service model that has emerged from the grass-roots level in the past ten years, which can greatly cover and meet the needs of home-based pension services. To vigorously develop home-based community pension services is an important and urgent task to comply with the aspirations of the majority of the elderly to live at home and to solve the urgent problems of the elderly.

2. The form of aging is severe, and the demand for providing for the aged is constantly expanding.

At present, the population of providing for the aged in our country is large and the demand is urgent. According to the data of the National Bureau of Statistics, by the end of 2023, the number of people aged 60 and above in China reached 297 million, accounting for 21.1%. Among them, 217 million people aged 65 and above, with an aging rate of 15.4% of the same caliber, has exceeded the internationally recognized 14% deep aging standard. It took only 24 years for China to move from a mildly aging society to a moderately aging society. In addition, according to the prediction of the Health Commission, by 2035, the number of people aged 60 and above will exceed 400 million, accounting for more than 30% of the total population. China has entered a stage of severe aging. The form of aging is severe, the demand for providing for the aged is increasing rapidly, and there is a lot of room for related business development.

3. Yinfa has a large economic space and is expected to have a trillion market scale.

In the era of economic slowdown and aging, the silver-haired economy has definite opportunities for development, and the country has repeatedly spoken out to support the development of the "silver-haired economy". Since 2020, the development of "silver economy" has been incorporated into the strategic arrangement of our country for the first time. The Central Economic work Conference at the end of 2023 and the executive meeting of the State Council at the beginning of 2024 all made special instructions and arrangements for the development of the silver economy. On January 11, 2024, the State Council issued the "opinions on developing the Silver economy to improve the well-being of the elderly", which is China's first policy document named after the "Silver economy". The proposed silver-haired economy specifically includes two aspects: "the economy of the elderly in the elderly stage" and "the economy of preparing for the old in the unaged stage".

With the increase of the elderly population, the change of consumption consciousness and consumption habits, and the improvement of consumption ability, the demand for diversification, differentiation and personalization of multi-level elderly people, such as the elderly, middle-aged and longevity, is becoming more and more exuberant and urgent. however, it has not been effectively satisfied, which provides an opportunity for the rapid development of silver economy. According to the report on the Development of China's Aging Industry released by the National working Committee on ageing, from 2014 to 2050, the consumption potential of China's elderly population will increase from about 4 trillion yuan to about 106 trillion yuan, accounting for 33% of GDP, making it the country with the greatest market potential for the aging industry in the world.

4. property enterprises focus on and continue to explore the layout.

Property enterprises have the natural advantage of providing services for the aged. Under the guidance of the policy, many property enterprises have taken the lead in opening up the old-age service track and exploring "property + old-age service" from the perspective of business and social responsibility, making use of their advantages such as being resident in the community, being close to residents, and responding quickly. And preliminary results have been achieved.

In addition, the property and real estate pension sector or its pension business sector has also begun to strengthen integration and cooperation to jointly promote the development of "property + pension" services. For example, investment promotion surplus and investment promotion Guanyi (part of Shekou Kangyang Group), Great Wall property and its shared home, Chun Xitang and Shimao property, etc., to explore the pilot of property + pension services.

Intelligent technology:

Science and technology can improve quality and increase efficiency

Drive property transformation and upgrading

1. Technology helps property transformation and upgrading and opens the service boundary.

The application of science and technology has set off a change in the property industry. It plays an important role in business level, internal management level, project management, owner side and so on. In addition, the application of technology will further open the boundary of property management and inject strong vitality into the construction of smart communities, smart urban areas and future communities.

2. The head enterprise guides forward, and the application of science and technology is mature.

Some property enterprises have begun to take shape in the income related to the science and technology business. In 2023, the total business income related to science and technology services of the four enterprises, namely, everything Cloud, Greentown Services, Jinke Services and Kaisa, reached 3.39 billion yuan, an increase of 9.65 percent over the same period last year, accounting for 5.91 percent of the total operating income, and the average gross profit margin decreased somewhat, but remained at a level of more than 30 percent.

Energy saving and low carbon:

Double carbon is very close to the property.

Green property is imperative

The double carbon goal belongs to a big country, and the realization of energy saving and carbon reduction is the social responsibility and mission of every enterprise. In the stock era, property management shoulders an important task in reducing carbon emissions and ushering in opportunities for development.

Double carbon is very close to the property, energy saving and low carbon are closely related to property enterprises. The opinions of the CPC Central Committee and the State Council on comprehensively promoting the Construction of a Beautiful China mentioned that it is necessary to speed up the energy-saving and carbon-reducing transformation of existing buildings and municipal infrastructure, and promote the large-scale development of ultra-low energy consumption and low-carbon buildings. Focusing on the construction of beautiful China, property enterprises have a bright future in energy saving and carbon reduction.

Green, low-carbon, energy-saving energy storage will become a new opportunity for the development of the industry, and the goal needs to be achieved step by step, the implementation of energy conservation and low carbon has a long way to go, the introduction of professional strength to get twice the result with half the effort. For example, Chen eel technology provides one-stop solutions for the project in the aspects of cost control management, building energy management, elevators, HVAC energy conservation, etc., to help enterprises fine management, reduce costs and increase efficiency, and so on. At present, Jiacheng Xinyue, Century Jinyuan Service, Hejing leisurely living, Hailenburg property and other enterprises have introduced Chen eel technology to provide them with electric energy cost reduction and efficiency programs, and achieved remarkable results.

05

Mainstream strategy

PART.05

High quality development:

Profitable revenue

Profit with cash

Emphasize effective scale growth

"profitable revenue, cash profit" has become the inherent requirement of high-quality development. Profitable income refers to preventing income from increasing without profit, judging project returns from a financial perspective, and reducing projects that do not increase profits. This requires that in the stage of market expansion, we should persist in choosing profitable projects that can create cash flow and pursue the growth of effective scale. And in the daily operation and management of the project, through fine operation, the pursuit of quality and price. Strengthen management and refuse to run and leak. Through scientific and technological empowerment, compound employment and other ways to improve work efficiency, increase employee income, and achieve competitive and reasonable costs. In the stage of management and control, we should strengthen the return of funds, do a good job in cash flow management, and take the initiative to withdraw from the operation of projects that do not meet expectations, so as to enhance the value of enterprise project management. In addition, to meet customer needs, create profits, but also to pursue cash profits, it really reflects that "cash is king", there is real cash.

At the enterprise level, a number of property enterprises have proposed to use various means to settle past arrears, maintain the collection rate of fees in the current year, appropriately increase the prepaid proportion of property fees, and refund projects with poor cash flow, so as to control accounts receivable and cash flow.

The national level has also begun to strengthen the strong control of cash flow. In 2023, SASAC put forward the new operating cash flow ratio in the operating index system of "one profit and five rates" to the central enterprises. this is the first time that SASAC has brought cash flow into the assessment system, requiring strong cash flow management and control. this reflects the SASAC's regulatory requirements of "profitable income and cash profits".

As the lifeline of enterprises, cash flow is the focus of enterprises and governments. With the implementation and landing of the goals of getting back the money, improving the collection rate system and increasing cash flow, we should pay more attention to the safety of cash flow on the basis of paying attention to paper profits to achieve high-quality development of the property industry.

Density economy:

Increase order density

Pursue effective scale growth

1. Increase the deep ploughing in the focus area, break through the fence and increase the density.

Guided by high-quality development, many property enterprises begin to deepen urban density, penetrate core resources, and focus on cities, regions, project formats, business and so on.

Among them, enterprises represented by leading enterprises such as everything Cloud, Poly property and Yongsheng Services are also exploring how to achieve "real" scale growth and effective scale growth. "Butterfly City Strategy", "Origin Action" strategy and "order density" are put forward respectively, which is undoubtedly a useful attempt and exploration for the industry.

2. Attach importance to the qualitative growth of scale and eliminate low-quality and inefficient projects

Many enterprises have proposed high-quality scale expansion, and began to take the initiative to withdraw from projects with losses, low profits, difficult management, low collection rate, unable to cooperate with existing projects or business, and may have major operational risks. Instead, they actively expand high-quality projects and adjust the project portfolio in order to build a solid scale foundation for the long-term and healthy development of the business. In 2023, leading enterprises such as everything Cloud, Jinke Service, Times Neighbourhood, Shimao Service and Greentown Service have taken the initiative to withdraw from the adjustment to seek a longer-term sustainable development.

3. Focus on high-quality track and attach importance to diversified quality customers

After the scale growth lost the main channel of new housing delivery, in order to gain an advantage in the fierce stock competition and obtain high-quality projects, property enterprises began to increase the development and maintenance of high-quality customers. To further enrich the multiple customer matrix and bind the cooperation opportunities with high-quality key customers will help the property enterprises to obtain the high-quality expansion of the project in the fierce competitive environment and increase the anti-risk ability of the enterprise.

Among the stock projects, the more high-quality ones are mainly concentrated in non-residential areas, and the relevant customers are mainly from government units, central state-owned enterprises with high credit, as well as leading enterprises in the Internet, finance, telecommunications, energy and other small fields. as a result, we can obtain more stable projects, and are expected to continue to deepen demand, increase the scope and depth of services, and increase revenue.

Return service:

Attach importance to the preservation of assets

Strengthen people's service experience

In the main tone of high-quality development, the property industry to get rid of profit bubbles and moisture, bid farewell to barbaric growth, began to return to rationality, return to the nature of service has become the consensus of the industry. In the new development cycle, the understanding of the nature of service in the property industry has also changed from the previous management of "things" to not only paying attention to "hard services" and strengthening the management of "things", but also strengthening "soft services". The service for "people" is expanded to a larger scope and a new height.

Brand strategy:

Attach importance to brand building

Build a high-potential brand

1. Strengthen "three sights and three services" to win value gain

At present, the brand building of the property industry is still in its infancy. In the context of high-quality development, brand building is very important, and the current development also has obvious opportunities. To be a good brand, property can obtain direct value and income from inside and outside, which can be summarized as "three sights" and "three services" of brand construction. First, let Party An and the owner see, so as to serve for marketing and market expansion. The promotion of product awareness brought about by a good brand will serve marketing, help enterprises improve their performance and competitiveness, and increase market share; second, in order to let employees see that "everyone is a brand", form cultural values throughout the company. Third, let the leadership see, so as to make the company attach importance to brand building from the strategic level, and enhance the influence of enterprises and key people in the industry.

2. Multi-dimensional reconstruction of brand cognition to clarify the "three understandings"

Brand is a solidified and growing value, and brand strategy is the strategy of building user emotion and brand energy. Different angles and different subjects have different perceptions of the brand. From the enterprise side, the brand is the symbol that carries the value meaning; from the enterprise side, the brand is the cognition of the comprehensive emotion of the enterprise and the product. For the property industry, in order to do a good job of brand building, we need to have three important understandings: brand is strategy, quality is the foundation, and all staff are brands.

3. Construct the four-step method of brand building to realize effective communication.

Brand building is a long-term project of the system, to do a good brand, need step by step, need the accumulation of time, but also need to be tested by practice. After studying the basic theory of brand construction, and combining with the development stages and characteristics of the property management industry and enterprises, Zhongwu think tank summarizes and constructs the "four-step method" of brand construction in the property management industry, from strategic positioning, to value creation, to communication, and then to brand evaluation, to establish a positive cycle of brand construction.

In addition, in practice, Zhongwu think tank believes that the effective communication of brands is mainly through eight key means to strengthen the brand, mold the brand, cast the brand, expand the brand, build the brand, establish the brand, release the brand and spread the brand.

06

Trend and prospect

PART.06

2024 is a year for the "new". In the new quality productivity, high-quality development of the main tone, the property industry will have further development. Looking to the future: the independence of the property industry is further enhanced, entering the era of low-speed growth and low interest rates, property enterprises will explore more opportunities in multi-format scenarios and multi-services, and will also be expected to further extend in green, energy-saving and low-carbon fields. give full play to greater value and promote the sustainable development of the industry.