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世茂服务(00873) - 2023 - 中期业绩

Financial Performance - Revenue for the first half of 2023 was RMB 4,098.1 million, a decrease of 3.9% compared to RMB 4,265.7 million in the same period of 2022[2]. - Gross profit was RMB 862.7 million, down 22.5% from RMB 1,113.6 million in the same period of 2022[3]. - Operating profit decreased to RMB 268.7 million, a decline of 15.6% compared to RMB 318.4 million in the same period of 2022[3]. - Net profit attributable to equity holders was RMB 154.8 million, an increase of 10.9% from RMB 139.6 million in the same period of 2022[3]. - The company reported a basic earnings per share of RMB 6.36, up 12.4% from RMB 5.66 in the same period of 2022[3]. - The group's revenue reached RMB 4,098.1 million for the six months ended June 30, 2023, a decrease of 3.9% year-on-year[28]. - The net profit attributable to equity holders was RMB 316.5 million, with a core net profit margin of 7.7%[28]. - The company's total employee cost was RMB 1,950.5 million, a reduction of 5.6% from RMB 2,065.3 million in the same period last year[75]. - The company reported a significant increase in trade receivables, which rose to RMB 3,451,587,000 as of June 30, 2023, from RMB 3,218,266,000 at the end of 2022, an increase of 7.2%[82]. Revenue Breakdown - Property management service revenue reached RMB 2,612.6 million, accounting for approximately 63.7% of total revenue, with a year-on-year growth of 11.5%[2]. - Community value-added services accounted for 17.3% of total revenue, generating RMB 709.3 million, a decrease of 23.8% compared to RMB 931.0 million in the same period of 2022[40]. - Revenue from community asset management services increased by 22.0% to RMB 142.4 million, compared to RMB 116.7 million in the previous year[43]. - Revenue from smart scene solutions plummeted by 90.7% to RMB 25.7 million, down from RMB 276.8 million in H1 2022[43]. - Revenue from parking asset operation services rose by 15.5% to RMB 189.0 million, compared to RMB 163.7 million in the same period last year[44]. - The average property fee for third-party competitive bidding projects increased by 15.0% to RMB 2.3 per square meter per month in the first half of 2023, compared to RMB 2.0 per square meter per month in the same period last year[37]. Cost and Expenses - Sales and service costs increased by 2.6% to RMB 3,235.5 million, compared to RMB 3,152.1 million in the same period last year[51]. - Administrative expenses were RMB 448.7 million, a decrease of 4.6% from RMB 470.2 million in 2022, maintaining a ratio of 10.9% of revenue[55]. - Sales and marketing expenses were RMB 63.3 million, down 41.0% from RMB 107.2 million in 2022, representing 1.5% of revenue, a decrease of 1.0 percentage point from 2.5% in 2022[54]. - The gross margin for property management services was 20.7%, down 5.6 percentage points from 26.3% in 2022, primarily due to a higher proportion of lower-margin third-party projects[52]. Operational Efficiency - The company emphasized a focus on enhancing operational capabilities and improving profit quality amidst industry challenges[5]. - The marketing expense ratio decreased from an average of 2.0% in 2022 to 1.4% in the first half of 2023, reflecting effective market development strategies[17]. - The administrative expense ratio dropped from 15.7% at the end of 2022 to 10.9% in the first half of 2023, showcasing enhanced management efficiency[19]. - The number of employees per 10,000 square meters decreased from 1.81 in 2022 to 1.77 in mid-2023, indicating improved efficiency[22]. Market Expansion and Strategy - The company has shifted its strategic focus from acquisitions to expanding its third-party market capabilities, including brand advertising and project bidding[71]. - The company aims to enhance its operational capabilities in non-residential and public building sectors while focusing on quality project supplementation[24]. - The company plans to develop smart city services centered on standardized products and light asset services, with a focus on product innovation[24]. - The company is focused on expanding its property management services and enhancing community value-added services in China, aiming for further market penetration[84]. Financial Position - As of June 30, 2023, cash and cash equivalents amounted to RMB 4,775.9 million, a 2.3% increase from RMB 4,667.3 million at the end of 2022[3]. - The net current asset value as of June 30, 2023, was RMB 4,155.3 million, with a current ratio of 1.75, indicating a very healthy financial position compared to RMB 3,733.2 million as of December 31, 2022[65]. - The company's net asset value increased to RMB 8,459,580,000 as of June 30, 2023, compared to RMB 8,367,227,000 at the end of 2022, reflecting a growth of 1.1%[83]. - The total equity as of June 30, 2023, was RMB 21,357,812,000, down from RMB 21,444,970,000 as of January 1, 2022[122]. Taxation and Incentives - The effective income tax expense for the six months ended June 30, 2023, was RMB 80,703 thousand, compared to RMB 36,253 thousand in 2022, indicating an increase in tax burden[100]. - The statutory tax rate for the six months ended June 30, 2023, is 25%[104]. - Tibet Shimao Tiancheng Property Management Co., Ltd. benefits from a preferential tax rate of 15% until December 31, 2030[104]. Shareholder and Corporate Governance - The company granted a total of 3,525,446 reward shares under the share incentive plan to certain directors and eligible employees to recognize their contributions[66]. - The group did not declare an interim dividend for the six months ended June 30, 2023, consistent with the previous year[127]. - The company adhered to all corporate governance codes as per the Hong Kong Stock Exchange, with one exception regarding the chairman's absence at the annual general meeting[127].