On March 31st, Fangyuan Life Service Group Co., Ltd. (9978.HK, Fangyuan Life Service) announced its 2021 results. The performance report shows that in 2021, while consolidating the original real estate agency service business, Fangyuan Life Service is determined to develop property management business. Under two-wheel drive, the income has increased significantly, and a satisfactory answer has been given to the market with a beautiful performance.
In 2021, the total revenue of Fangyuan living service is about 571.4 million yuan, an increase of about 106.5 percent from 276.7 million yuan in 2020, and the pre-tax profit is about 31.3 million yuan, compared with about 22.0 million yuan in 2020.
Open up property management services and create new profit growth points
In recent years, with the continuous improvement of China's economic level and the acceleration of urbanization, it is driving the rapid development of the property management service industry. According to the data of the Central finger Institute, the total floor area under management in the property management industry increased from 17.5 billion square meters in 2015 to 25.9 billion square meters in 2020, with a compound annual growth rate of 8.2 percent. In the future, the property management service industry will continue to grow steadily under the demand of the stock market mining, such as the incremental supply of the real estate market, public construction facilities and urban services, and the transformation of old residential areas.
In the face of the development opportunities of the property management industry, Fangyuan life service conforms to the trend and extends the business field from real estate agency service to property management industry. At the beginning of 2021, the company acquired about 66.31% of Guangzhou Fangyuan Modern Life Service Co., Ltd., formally bringing property management services, value-added services and community value-added services into the scope of business. After the completion of the acquisition, on June 25, 2021, the original "Fangyuan Real Estate Services Group Co., Ltd." was officially renamed to "Fangyuan Life Service Group Co., Ltd." to reflect business changes. bring customers, investors and the public an attractive and unified brand and sense of existence, and enhance the corporate image of the company.
In the second half of 2021, the renamed Fangyuan Life Service actively carried out mergers and acquisitions, successively acquiring 51% of the equity of Changsha Mianyanghong property Management Co., Ltd., and 60% of Guangdong Yikang property Service Co., Ltd. (the deal will be delivered in 2022). The property management service business was expanded to Changsha City, Hunan Province, Dongguan and Meizhou, forming a Guangzhou-based intensive cultivation of Guangdong-Hong Kong-Macau Greater Bay Area. Radiate the business layout of southern China, including the Pearl River Delta, Yangtze River Delta, Guangxi, Hainan and other regions, and further expand market share. At the same time, in terms of business diversification, Fangyuan Life Service has gradually expanded the non-residential property management business, including office buildings, industrial parks, schools and other types of business, and the business tends to market-oriented development. for the property service sector to provide a more robust bottom support.
With the popularity of the Internet of things, big data and other technology, smart property has become a development trend, property service enterprises began to seek through science and technology empowerment, improve management efficiency, and finally achieve the goal of reducing cost and increasing efficiency. Fangyuan Life Service is no exception. In 2021, it acquired 100% equity in Guangzhou Fangheng Technology Co., Ltd. ("Fang Heng Technology"), combining its expertise in property management services with Fang Heng's advanced technology. under the synergistic effect of the two, Fangyuan Life Service can provide customers with high-quality intelligent community services, improve operational efficiency and promote the high-quality development of property management business.
The layout of Fangyuan life service in the field of property management service has achieved initial results. For the year ended December 31, 2021, the company's income from professional property management services was approximately RMB307.6 million, with a contract floor area of about 16.1 million square meters and a managed construction area of about 10.9 million square meters. In the future, with the company's continuous efforts in property management services, it will not only bring direct profit improvement for Fangyuan life services, but also enrich and strengthen the company's business layout, and become a new profit growth point.
Steady development of basic business, two-wheel drive to promote the continuous improvement of brand value
In 2021, the real estate market changes abruptly, especially in the second half of the year, the real estate supervision becomes stricter, eight ministries jointly regulate and regulate the real estate order, and introduce a number of regulation and control policies, it is a general trend to remove financial leverage. The real estate industry as a whole is facing unprecedented challenges.
In this context, Fangyuan Life Service actively carries out forward-looking and frontier research and analysis in view of the supply and demand of the real estate market in the new period, closely following the development trend of the real estate industry. At the same time, relying on the real estate senior professional research and planning team, we provide developers and customers with exclusive customized services at all stages of marketing. With well-planned strategic layout, accurate channel marketing strategy and comprehensive and meticulous one-stop service, Fangyuan life service accurately pry the target circle floor purchase potential, the steady development of comprehensive real estate agency business. In 2021, the income of comprehensive real estate agency services is about 263.9 million yuan, which is basically the same as that in 2020.
Through diversified business development, Fangyuan Life Service has been highly recognized by the market for its excellent performance and steady development in the past year. In 2021, Fangyuan Life Service has successively won the honorary titles of "Top 8 Enterprises of China Real Estate Planning and Agent 2021", "Top 7 leading Brands of China Real Estate sales and Service in 2021", "Top 100 property Service Enterprises of China 2021" (No. 21), "Top 100 satisfaction companies of China's property Services in 2021" and "2021 leading Brand of property Services with Chinese characteristics-Oriental Butler".
Looking to the future, with the determination of the general direction of smart property and smart city, the future development of property management services is still very huge. Fangyuan Life Service will always adhere to the service purpose of "thinking more for you and opening a better life", focus on Guangzhou and other areas of the Greater Bay area, and further expand its scope of services. give full play to the professional advantages in property management services, real estate agency services and information technology services, strengthen economies of scale and synergy, actively grasp the future development opportunities of the industry, and give back to customers with quality services. Repay the majority of investors with excellent performance.