万物云(02602) - 2024 - 中期业绩

Performance Summary Overall Performance Overview The company's H1 2024 total revenue grew 9.6% to RMB 17.56 billion, with recurring business showing strong growth, despite a 23.4% decline in net profit to RMB 804 million Key Financial Indicators H1 2024 | Indicator | H1 2024 (RMB Billion) | YoY Change | | :--- | :--- | :--- | | Total Revenue | 17.56 | +9.6% | | Revenue Excl. Developer Impact | 15.36 | +16.2% | | Gross Profit | 2.40 | -0.6% | | Profit for the Period | 0.804 | -23.4% | | Core Net Profit | 1.202 | -2.7% | | EPS | 0.66 | -22.4% | - Recurring business (residential property, commercial property and facility management, BPaaS) revenue increased by 16.7% year-on-year to RMB 14.9 billion, with its proportion of total revenue rising from 79.8% to 84.9%, indicating continuous optimization of business structure and reduced reliance on developers[2] - The Board recommended an interim dividend of RMB 0.562 per share and a special dividend of RMB 0.460 per share, totaling RMB 1.022 per share (tax inclusive), with the total dividend payout based on 100% of core net profit[3] Financial Data Interim Condensed Consolidated Income Statement For H1 2024, revenue grew 9.6% to RMB 17.56 billion, but gross profit slightly declined by 0.6% to RMB 2.40 billion, and profit for the period decreased 23.4% to RMB 804 million Income Statement Core Data (RMB Thousand) | Item | H1 2024 (RMB Thousand) | H1 2023 (RMB Thousand) | YoY Change | | :--- | :--- | :--- | :--- | | Revenue | 17,559,770 | 16,019,670 | +9.6% | | Gross Profit | 2,396,531 | 2,412,032 | -0.6% | | Net Other Income and Gains | 84,853 | 447,531 | -81.0% | | Profit Before Tax | 1,083,991 | 1,399,143 | -22.5% | | Profit for the Period | 804,423 | 1,049,967 | -23.4% | | Profit Attributable to Company Shareholders | 771,663 | 997,733 | -22.7% | | Basic EPS (RMB) | 0.66 | 0.85 | -22.4% | Interim Condensed Consolidated Statement of Financial Position As of June 30, 2024, total assets were RMB 38.64 billion, a slight decrease from end-2023, while net assets remained stable at RMB 18.09 billion; trade receivables significantly increased by 39.3% from RMB 6.78 billion to RMB 9.45 billion, and cash and cash equivalents decreased from RMB 15.57 billion to RMB 12.20 billion Statement of Financial Position Core Data (RMB Thousand) | Item | June 30, 2024 (RMB Thousand) | Dec 31, 2023 (RMB Thousand) | Change | | :--- | :--- | :--- | :--- | | Total Assets | 38,641,192 | 39,383,117 | -1.9% | | Total Liabilities | 20,548,248 | 21,162,876 | -2.9% | | Net Assets | 18,092,944 | 18,220,241 | -0.7% | | Trade Receivables | 9,445,393 | 6,781,100 | +39.3% | | Cash and Cash Equivalents | 12,197,096 | 15,572,483 | -21.7% | Summary of Notes to Financial Information Financial notes indicate the company operates as a single segment, with most revenue from China, primarily from community space residential consumer services; the company declared a 2023 final dividend and proposed 2024 interim and special dividends; intangible assets slightly increased due to acquisitions, and trade receivables significantly grew, especially from related parties - Management reviews business performance as a single operating segment, with the primary operating entities and most revenue and non-current assets located in China[15] Revenue by Business Segment H1 2024 (RMB Thousand) | Business Segment | H1 2024 (RMB Thousand) | H1 2023 (RMB Thousand) | YoY Growth | | :--- | :--- | :--- | :--- | | Community Space Residential Consumer Services | 10,102,821 | 9,035,753 | +11.8% | | Commercial and Urban Space Integrated Services | 6,065,306 | 5,667,506 | +7.0% | | AIoT and BPaaS Solutions | 1,391,643 | 1,316,411 | +5.7% | | Total | 17,559,770 | 16,019,670 | +9.6% | - The Board recommended an interim dividend of RMB 0.562 per share and a special dividend of RMB 0.460 per share for 2024, totaling approximately RMB 1.202 billion[21] - Trade receivables increased from RMB 7.20 billion at end-2023 to RMB 9.99 billion, with related party receivables growing 53.5% from RMB 2.49 billion to RMB 3.82 billion[30] Management Discussion and Analysis Industry Review Management identifies three key industry challenges: related developers shifting from support to burden, property fee pricing requiring value demonstration, and integrated facility management (IFM) facing low-price competition instead of focusing on comprehensive services and technology - Related developers have shifted from being a 'backbone' to a 'drag' on industry growth, with related party receivables raising market concerns, and new industry valuation benchmarks now focus on stable growth and high dividend attributes[36] - Property fee pricing has become a market focus, requiring the industry to enhance owner recognition of property value through improved service quality and innovative models[37] - The Integrated Facility Management (IFM) market faces intense price competition, urging industry players to abandon low-price strategies and instead strengthen comprehensive services and technological capabilities to address efficiency issues for high-quality clients[38][40] Strategic Review The company successfully advanced its three strategies: 'Butterfly City Strategy' improved residential property gross margin through expansion and process optimization; 'Client Diversification Strategy' focused on high-quality clients to mitigate cyclical risks; and 'Technology Strategy' enhanced internal efficiency and generated external revenue via proprietary platforms, building a business moat Butterfly City Strategy: Winning with Existing Stock and Process Transformation The Butterfly City Strategy successfully expanded its base by deepening existing markets, increasing Butterfly City count to 642 with a 74% win rate for existing projects, while process transformation boosted residential property service gross margin by 0.8 percentage points year-on-year, and ecosystem overlay businesses also steadily developed - The number of Butterfly City bases increased to 642, with 221 new residential market contracts acquired during the reporting period, reaching a saturated revenue of RMB 1.276 billion[41] - A cumulative 200 Butterfly Cities completed process transformation, leading to a 0.8 percentage point year-on-year increase in residential property service gross margin[42] - Within ecosystem overlay businesses, total transaction volume for second-hand home sales reached RMB 9.8 billion, and the total number of housing rental service units increased by 12.5% year-on-year[44] Client Diversification Strategy: Focusing on High-Quality Clients The company, through its 'Vanke Service Lianghang' brand, continued to expand its diversified high-quality client base to hedge against real estate cyclical risks, securing new contracts worth approximately RMB 496 million across five key sectors and establishing a strategic partnership with a leading domestic AI enterprise for RMB 123 million in new contracts to co-develop a property industry large model - Commercial property service brand 'Vanke Service Lianghang' secured new contracts totaling approximately RMB 496 million across five key sectors, adding clients such as leading new energy vehicle companies and renowned shared mobility enterprises[45] - Diversified operations (energy management, group catering, etc.) within commercial spaces generated RMB 252 million in revenue, a 62.1% year-on-year increase[45] - Established a strategic partnership with a leading domestic AI enterprise to provide diverse services like FM and BPaaS, and jointly build a large model for the property industry[45] Technology Strategy: Efficiency and Revenue Generation The Technology Strategy advanced in both internal efficiency and external revenue generation; the self-developed 'Feige Task Platform' improved employee operational efficiency by 18.7% through AI scheduling, while external technology business generated RMB 1.39 billion in revenue and successfully optimized client structure, reducing reliance on developers - The self-developed 'Feige Platform' improved employee operational efficiency by 18.7% through AI intelligent scheduling, with AI quality inspection accuracy increasing to over 94.0%[51] - Technology business generated RMB 1.392 billion in revenue during the reporting period[52] - Client structure in hardware technology was optimized, with revenue from industrial clients reaching 53.9%, while developer client proportion decreased from 55.4% to 46.1%[52] Business Review Among the company's three business segments, Community Space Residential Consumer Services had the highest revenue share (57.6%) with an 11.8% year-on-year increase; Commercial and Urban Space Integrated Services revenue grew 7.0% but gross profit declined due to developer value-added services; AIoT and BPaaS Solutions grew 5.7%, with BPaaS notably up 22.0%; core business growth remained robust excluding developer impact Revenue and Gross Profit Overview by Business Segment (H1 2024) | Business Segment | Revenue (RMB Billion) | Revenue YoY | Gross Profit (RMB Billion) | Gross Profit Margin | | :--- | :--- | :--- | :--- | :--- | | Community Space Residential Consumer Services | 10.103 | +11.8% | 1.526 | 15.1% | | Commercial and Urban Space Integrated Services | 6.065 | +7.0% | 0.432 | 7.1% | | AIoT and BPaaS Solutions | 1.392 | +5.7% | 0.439 | 31.6% | | Total | 17.560 | +9.6% | 2.397 | 13.6% | - Excluding developer impact, the company's revenue was RMB 15.36 billion, a 16.2% year-on-year increase, with gross profit at RMB 2.00 billion, up 12.8% year-on-year[59] - Recurring business, serving as the revenue 'ballast,' reached RMB 14.90 billion, a 16.7% year-on-year increase, accounting for 84.9% of total revenue[60] Community Space Residential Consumer Services This segment's revenue reached RMB 9.32 billion, a 14.2% year-on-year increase, primarily driven by residential property service market expansion; residential property service gross margin improved to 13.4% due to Butterfly City process transformation, and managed residential projects' saturated revenue grew 14.2% year-on-year by period-end Residential Property Services Key Indicators | Indicator | H1 2024 (RMB Billion) | YoY Change | | :--- | :--- | :--- | | Revenue | 9.316 | +14.2% | | Gross Profit | 1.246 | +21.4% | | Gross Profit Margin | 13.4% | +0.8 pct | - As of June 30, 2024, saturated revenue from managed residential projects was RMB 26.21 billion, a 14.2% year-on-year increase[61][62] Commercial and Urban Space Integrated Services Within this segment, property and facility management services revenue grew 20.8% to RMB 4.80 billion, demonstrating strong market expansion, but developer value-added services revenue sharply declined by 33.8% year-on-year, leading to an overall segment gross profit decrease; the company is actively adjusting its client structure and expanding into high-quality sectors - Property and facility management services revenue was RMB 4.80 billion, a 20.8% year-on-year increase; saturated revenue from managed projects grew 25.8% year-on-year[55][65] - Developer value-added services revenue was RMB 920 million, a 33.8% year-on-year decline; gross profit plummeted by 98.9%, severely dragging down segment performance[55][57][76] AIoT and BPaaS Solutions Within this segment, BPaaS solutions became the primary growth engine, with revenue increasing 22.0% year-on-year to RMB 790 million, while AIoT solutions revenue declined 10.0% year-on-year due to proactive client structure adjustments and reduced developer business - BPaaS solutions revenue was RMB 789 million, a 22.0% year-on-year increase, with gross profit growing 33.4%, primarily driven by market expansion to enterprise and space clients[55][68] - AIoT solutions revenue was RMB 603 million, a 10.0% year-on-year decline, with revenue from developers decreasing 25.1% while revenue from industrial clients increased 8.7%, indicating ongoing business transformation[71] Financial Review In H1 2024, total revenue grew 9.6% to RMB 17.56 billion, driven by expanded management scale, but gross profit margin decreased from 15.1% to 13.6% due to developer business and initial property facility management expansion; administrative expense ratio decreased by 0.8 percentage points, reflecting technology-driven efficiency, while profit for the period declined 23.4% to RMB 804 million, and core net profit slightly decreased 2.7%, mainly due to a significant reduction in other income and gains - Revenue increased by 9.6%, primarily due to expanded management scale and increased business contracts across all segments[78] - Gross profit margin decreased by 1.5 percentage points to 13.6%, mainly impacted by the sharp decline in developer business gross margin and initial client base expansion in property and facility management services[82] - Administrative expenses as a percentage of revenue decreased by 0.8 percentage points, benefiting from technology-driven efficiency and back-office function optimization[89] - Profit for the period decreased by 23.4%, and core net profit decreased by 2.7%, primarily due to a higher base of other income and gains in the prior period from significant fair value gains on financial liabilities[87][91] - As of June 30, 2024, the company had no bank loans or borrowings, maintaining a net cash position[94] Corporate Governance and Other Information Employees and Remuneration Policy As of June 30, 2024, the Group's total employees increased to 105,521, with H1 employee costs approximately RMB 5.90 billion; the company established a diversified talent pool and training system, such as the 'Wanzichianhong' project, which helped 703 grassroots employees successfully transfer positions during the reporting period, enhancing their skills and income - As of June 30, 2024, the Group had 105,521 employees, an increase of 4,237 from end-2023[99] - Total employee costs during the reporting period were approximately RMB 5.90 billion[99] - Through the 'Wanzichianhong' development project, 703 grassroots employees successfully transferred positions during the reporting period, with a cumulative 8,474 transfers since the project's inception[102] Share Repurchase In H1 2024, the company cumulatively repurchased 5,486,500 H shares on the Stock Exchange, representing 0.47% of total share capital, at a total cost of approximately HKD 111 million; the Board believes the repurchases demonstrate confidence in the company's prospects, and all repurchased shares have been cancelled H-Share Repurchase Details H1 2024 | Repurchase Month | Shares Repurchased | Total Amount (HKD) | | :--- | :--- | :--- | | January 2024 | 959,300 | 20,192,150 | | February 2024 | 600,000 | 10,743,044 | | March 2024 | 79,000 | 1,552,750 | | April 2024 | 2,203,600 | 39,648,480 | | May 2024 | 300,000 | 7,183,065 | | June 2024 | 1,344,600 | 31,815,110 | | Total | 5,486,500 | 111,134,599 | Dividend Policy The Board recommended an interim dividend of RMB 0.562 per share (tax inclusive) and, to celebrate the company's inclusion in the Hang Seng Composite Index, a special dividend of RMB 0.460 per share (tax inclusive), totaling RMB 1.022 per share, subject to shareholder approval at the AGM - An interim dividend of RMB 0.562 per share (tax inclusive) was recommended[113] - A special dividend of RMB 0.460 per share (tax inclusive) was recommended to celebrate inclusion in the Hang Seng Composite Index[113] - Total dividends of RMB 1.022 per share (tax inclusive) will be reviewed at the Annual General Meeting on September 27, 2024[113]