万物云(02602) - 2023 - 中期业绩

Performance Highlights Performance Highlights Vanke Service achieved robust H1 2023 growth, with total revenue up 12.5% to RMB 16.02 billion and profit for the period up 15.7% to RMB 1.05 billion, supported by growth across all business segments Key Financial Indicators for H1 2023 | Indicator | H1 2023 | YoY Growth | | :--- | :--- | :--- | | Total Revenue | RMB 16.02 billion | 12.5% | | - Community Space Residential Consumption Services | RMB 9.04 billion | 13.0% | | - Commercial and Urban Space Integrated Services | RMB 5.67 billion | 11.3% | | - AIoT and BPaaS Solutions Services | RMB 1.32 billion | 13.9% | | Gross Profit | RMB 2.41 billion | 13.4% | | Gross Margin | 15.1% | - | | Adjusted Gross Margin | 17.1% | - | | Profit for the Period | RMB 1.05 billion | 15.7% | | EBITDA | RMB 1.86 billion | 20.4% | | Earnings Per Share | RMB 0.85 | - | | Proposed Interim Dividend | RMB 0.315 per share | - | - The Butterfly City Strategy progressed smoothly, increasing the total number of Butterfly Cities to 601 and completing efficiency improvements in 150 cities, boosting the gross margin of Community Space Residential Consumption Services by 2.2 percentage points year-on-year to 14.9%[2] Financial Data Interim Condensed Consolidated Statement of Profit or Loss For H1 2023, revenue grew 12.5% to RMB 16.02 billion, gross profit increased 13.4% to RMB 2.41 billion, and profit for the period rose 15.7% to RMB 1.05 billion, with basic EPS at RMB 0.85 Summary of Statement of Profit or Loss (For the six months ended June 30) | Item (RMB thousand) | 2023 (Unaudited) | 2022 (Unaudited) | YoY Change | | :--- | :--- | :--- | :--- | | Revenue | 16,019,670 | 14,243,206 | +12.5% | | Gross Profit | 2,412,032 | 2,127,243 | +13.4% | | Profit Before Tax | 1,399,143 | 1,147,687 | +21.9% | | Profit for the Period | 1,049,967 | 907,792 | +15.7% | | Profit Attributable to Equity Holders of the Company | 997,733 | 873,596 | +14.2% | | Basic and Diluted Earnings Per Share (RMB) | 0.85 | 0.83 | +2.4% | Interim Condensed Consolidated Statement of Financial Position As of June 30, 2023, total assets were RMB 36.65 billion, total liabilities RMB 19.16 billion, and net assets RMB 17.49 billion, up 2.8% from 2022 year-end, maintaining a net cash position Summary of Statement of Financial Position | Item (RMB thousand) | June 30, 2023 (Unaudited) | December 31, 2022 (Audited) | Change | | :--- | :--- | :--- | :--- | | Total Non-current Assets | 14,358,435 | 15,174,197 | -5.4% | | Total Current Assets | 22,293,017 | 21,788,788 | +2.3% | | Total Assets | 36,651,452 | 36,962,985 | -0.8% | | Total Current Liabilities | 16,924,672 | 17,713,544 | -4.5% | | Total Non-current Liabilities | 2,240,580 | 2,247,937 | -0.3% | | Total Liabilities | 19,165,252 | 19,961,481 | -4.0% | | Net Assets | 17,486,200 | 17,001,504 | +2.8% | | Total Equity | 17,486,200 | 17,001,504 | +2.8% | Summary of Notes to the Financial Statements This section details financial statement preparation, accounting policy changes, segment data, and asset/liability breakdowns, noting the adoption of IAS 12 amendments and the company's single operating segment management in China - The company adopted amendments to IAS 12, which narrowed the scope of initial recognition exemptions, requiring recognition of deferred tax assets and liabilities for transactions like leases, and restated comparative financial data[13][14][15] - Management reviews the business's operating performance as a single operating segment, primarily providing Community Space Residential Consumption Services, Commercial and Urban Space Integrated Services, and AIoT and BPaaS Solutions Services in China[17] Revenue by Service Category (For the six months ended June 30) | Service Category (RMB thousand) | 2023 | 2022 | | :--- | :--- | :--- | | Community Space Residential Consumption Services | 9,035,753 | 7,994,605 | | Commercial and Urban Space Integrated Services | 5,667,506 | 5,093,148 | | AIoT and BPaaS Solutions | 1,316,411 | 1,155,453 | | Total | 16,019,670 | 14,243,206 | - The Board recommended an interim dividend of RMB 0.315 per ordinary share (tax inclusive) for the six months ended June 30, 2023, totaling approximately RMB 372 million[24] Management Discussion and Analysis Industry and Strategy Review The company navigated real estate pressures by focusing on the existing property market, leveraging industry trends in residential renewals and integrated facility management, and advancing its 'Butterfly City,' 'Customer Diversification,' and 'Technology' strategies - Industry trends show rapid growth in demand for renewal of existing residential projects, especially in first-tier cities; significant outsourcing demand for integrated facility management services from commercial clients; and new technologies like AI large models accelerating the transformation of labor-intensive industries[36][38][39] - Butterfly City Strategy: As of June 30, 2023, 601 Butterfly Cities were deployed nationwide, with process improvements completed in 150 cities, leading to a gross margin increase of over 4 percentage points for basic residential property management in these improved cities[41][42] - Customer Diversification Strategy: WMY Lianghang brand successfully partnered with nearly 20 Fortune Global and China 500 companies, with new contract saturated revenue from existing clients reaching RMB 668 million, accounting for approximately 32% of total new contract saturated revenue[38][45] - Technology Strategy: Enhanced internal operational efficiency through self-developed equipment and enabled smart city services with technology for external revenue growth. BPaaS Solutions Services revenue grew 48.0% year-on-year to RMB 647 million[46][47] Business Review All three business segments grew, with Community Space Residential Consumption Services revenue up 13.0% and gross margin at 14.9%, Commercial and Urban Space Integrated Services up 11.3%, and AIoT and BPaaS Solutions Services up 13.9%, with recurring business contributing 79.7% of revenue Revenue and Gross Profit by Business Segment (For the six months ended June 30) | Business Segment | Revenue (RMB million) | Revenue YoY Growth | Gross Profit (RMB million) | Gross Margin | | :--- | :--- | :--- | :--- | :--- | | Community Space Residential Consumption Services | 9,035.8 | 13.0% | 1,348.5 | 14.9% | | Commercial and Urban Space Integrated Services | 5,667.5 | 11.3% | 636.0 | 11.2% | | AIoT and BPaaS Solutions Services | 1,316.4 | 13.9% | 427.5 | 32.5% | | Total | 16,019.7 | 12.5% | 2,412.0 | 15.1% | - Recurring business (including residential property, property facility management, BPaaS) achieved steady growth, with revenue reaching RMB 12.78 billion during the reporting period, a 14.5% year-on-year increase, accounting for 79.7% of total revenue; gross profit reached RMB 1.66 billion, up 21.1% year-on-year[52] - Residential property services benefited from the Butterfly City Strategy, with gross margin increasing by 2.1 percentage points. The number of managed residential projects grew to 3,586[53] - AIoT Solutions business was impacted by the real estate development industry, with revenue from developers declining, but revenue from other clients increased from RMB 82.8 million to RMB 298.5 million, indicating a successful transformation of the client structure[63] Future Outlook The company will continue to integrate ESG principles, build core capabilities around 'AI Life,' 'AI Growth,' 'AI Environment,' and 'AI Community,' and leverage technology, including the 'Zhu Zhe'er' APP and AI large models, to enhance spatial efficiency and service experience - The company integrates ESG principles into its corporate culture, promoting four special initiatives: popularizing first-aid skills (AI Life), supporting frontline employee growth (AI Growth), promoting waste sorting and energy conservation (AI Environment), and participating in old community renewal (AI Community)[66][67] - Technologically, the company will build a community service internet platform using the 'Zhu Zhe'er' APP as a portal and iterate and optimize its 'Ling Shi series' core spatial intelligence products[67] - The company will seize the opportunity of AI large models, exploring their integration with business scenarios such as work order dispatch, smart monitoring, and intelligent property management to enhance efficiency and service quality[68] Financial Review In H1 2023, the company maintained a healthy financial position with optimized revenue structure, recurring business at nearly 80%, gross margin up 0.7 percentage points, effective expense control, and strong cash flow with no bank loans - Revenue structure optimized, with recurring business revenue accounting for 79.7% and its gross margin at 13.0%, a year-on-year increase of 0.7 percentage points[69] - Expense efficiency improved, with sales and distribution expenses as a percentage of revenue remaining flat, and administrative expenses as a percentage of revenue decreasing from 6.7% to 6.2%[81][82] - Adjusted profit for the period (excluding amortization of intangible assets from M&A and deferred tax) was RMB 1.31 billion, a year-on-year increase of 16.1%[84] - As of June 30, 2023, the company had no bank loans or borrowings, maintaining a net cash position, with cash and cash equivalents totaling RMB 12.34 billion[86][87] Corporate Governance and Other Information This section covers significant investments, employee policies, corporate governance, and dividend arrangements, noting no major M&A, employee development programs, and the combined Chairman and CEO role, with an interim dividend proposed and a scrip dividend option for H-share shareholders - As of June 30, 2023, the Group had 97,294 employees, with total staff costs of approximately RMB 5.67 billion during the reporting period. The company supports frontline employees' career transitions and development through programs like 'Wan Zi Qian Hong'[89][91] - The company deviates from Code Provision C.2.1 of the Corporate Governance Code, as the roles of Chairman and CEO are not separated, both held by Mr. Zhu Baoquan. The Board believes this arrangement enhances decision-making efficiency and provides consistent leadership[95] - The Board recommended an interim dividend of RMB 0.315 per share (tax inclusive) and plans to offer a scrip dividend option to H-share shareholders[99]