"About 70% of the funds raised from the listing of New Hope Liuhe Co.Ltd(000876) service are planned to be used for M & A. unfortunately, there is no gain in 2021. M & A is an important way to continuously expand the scale. Since last year, the company has been looking for good targets." On the afternoon of March 21, Chen Jing, executive director and CEO of New Hope Liuhe Co.Ltd(000876) service, told the reporter of Securities Daily that M & A is a supplementary means of scale development, but the company maintains a rational and prudent attitude in M & A. the company pays more attention to and welcomes the targets and partners with similar projects, quality services and relatively rational valuation.
At noon on March 21, New Hope Liuhe Co.Ltd(000876) service handed over the performance answer sheet for 2021. According to the financial report, during the reporting period, New Hope Liuhe Co.Ltd(000876) service revenue reached 925 million yuan, an increase of 57.2% year-on-year; The profit attributable to equity shareholders was 166 million yuan, an increase of 51.1% year-on-year; The gross profit margin was 40.7%, with a slight decrease.
"The company's business model is diversified. With the integration of upstream and downstream industrial chains, it has explored a unique business development path, which can provide owners with all-round and life-cycle value-added services. At the same time, by constantly broadening the boundary of property services, it has also contributed different profit growth points to the enterprise, laying a foundation for maintaining growth in future performance." Liang Nan, an analyst at Zhuge housing search data research center, told the Securities Daily that from the perspective of the company's current shortcomings, first, compared with some leading material enterprises, New Hope Liuhe Co.Ltd(000876) service scale is relatively small; Second, New Hope Liuhe Co.Ltd(000876) services are highly dependent on affiliated enterprises and have poor outreach ability; Third, the New Hope Liuhe Co.Ltd(000876) service business layout area is relatively concentrated.
gross profit margin fell slightly
Comprehensive comparison shows that property management and life service are the "main force" of New Hope Liuhe Co.Ltd(000876) service revenue.
By subdividing the income structure, it is found that as of December 31, 2021, New Hope Liuhe Co.Ltd(000876) service property management service has achieved a revenue of 317 million yuan, accounting for 34.3% of the total revenue, with a year-on-year increase of 67.2%; Non owner value-added services realized a revenue of 233 million yuan, accounting for 25.3% of the total revenue, with a year-on-year increase of 38.9%; The revenue from commercial operation services was 120 million yuan, accounting for 13.0% of the total revenue, with a year-on-year increase of 6.6%; The income from living services was 253 million yuan, accounting for 27.4% of the total income, with a year-on-year increase of 116.2%. The profit attributable to equity shareholders was 166 million yuan, an increase of 51.1% year-on-year.
As for the reasons for revenue growth, Chen Jing said that the core reasons are based on two aspects: one is the growth of scale, especially the growth of the scale of third-party outsourcing business, which leads to revenue growth; Second, the expansion of scale has brought about an increase in the customer base, resulting in a significant increase in the income of community life, asset services, new retail and group meals.
It is noteworthy that although the profitability is resilient, the gross profit margin decreased slightly to 40.7%.
In this regard, Chen Jiang, chief financial officer of New Hope Liuhe Co.Ltd(000876) service, said that this was caused by the change of different income structure. In the past, the business sectors with high gross profit margin such as non owner value-added services and commercial operation decreased compared with 2020. It is expected that the gross profit margin will remain floating around 40% in the short term, and the change of business structure will pose a certain challenge to the gross profit margin in the future. However, the company has confidence in the continuous growth of profits and scale in the process of scale development.
As for how to improve profitability next? Chen Jiang told reporters that in 2021, the company's profitability maintained a certain toughness in the rapid expansion of business. First, thanks to the implementation of lean management strategy in the whole region, such as the implementation of the minimum project unit, diversified income generation than spelling, and more refined cost and expenditure standards, this strategy will continue to be deepened in 2022; Second, continue to invest in the construction of information system to further realize "cost reduction and efficiency increase"; Third, the management fee efficiency ratio decreased to 16%. In the future, with the placement of business layout, the management fee efficiency ratio will have further room to decline.
third party business scale increase
Born out of the property management enterprise of the real estate development company, the expansion of the third-party expansion business will determine the company's voice in the market competition in the future.
"A national market development team will be set up in 2021. In East China, a characteristic team will be established for medical and other subdivided formats to 'strengthen' the company's third-party independent business around the expansion ability." Chen Jing said.
The financial report shows that as of December 31, 2021, New Hope Liuhe Co.Ltd(000876) service industry has achieved rapid growth in contracted floor area and under management floor area through various ways. A total of 160 property management projects have been signed in 23 cities across the country, with a contracted floor area of 26.38 million square meters, an increase of 72.2% year-on-year. At the same time, 104 projects were managed, with a floor area under management of 16.209 million square meters, a year-on-year increase of 58.3%, and the ratio of contract floor area to floor area under management was 1.63.
"At present, the company's' external 'needs to steadily expand the business layout area, improve the enterprise's operation ability, and strengthen the enterprise's voice in the local market. Of course, the expansion should not be too radical, and the layout should be carried out reasonably according to the enterprise's strategic adjustment." Liang Nan said that "internally" needs to implement the service ecosystem, improve the service ecosystem and provide customers with higher quality and high experience service content.
"For property management enterprises, in order to achieve considerable development, they must be reflected in scale. When undertaking the introduction of real estate projects of the parent company, the company should also seize the opportunity to expand high-quality projects." Xiao Yunxiang, a senior analyst at Tongce Research Institute, told the Securities Daily that of course, the key is to ensure the creation of their own core competitiveness, such as the innovation of operation capacity, service quality and operation mode.
It is worth mentioning that for the development direction in 2022, Chen Jing said that under the favorable industrial policies, seek strategic acquisition and investment opportunities, lean management, improve efficiency, further reduce costs and increase efficiency, and realize the steady scale growth of the enterprise.
