Company overview

Excellent Business Services is a property management service provider, mainly in the South China Great Bay area, which accounts for about 66% of the company's basic property management revenue in 2019.

The projects under management are mainly business property types, including office buildings, business complexes, enterprise buildings and office and R & D parks. Accounted for 76% of the basic property management revenue in 2019.

And excellent home ownership is a related company, and the major shareholder is Mr. Li Hua.

According to public data, Outstanding Real Estate was established in Shenzhen in 1996. As of 2019, the group has total assets of more than 190 billion yuan and earth storage area of more than 50 million square meters, 70% of which are located in the Great Bay area.

The Group is famous for its urban renewal projects. Excellent Urban Renewal Group has joined the national leading echelon in the field of urban renewal and become a leading enterprise in Guangdong. Shenzhen's cooperation project has gone deep into the core areas of various administrative regions. at the same time, it fully covers other core cities in the Dawan area, and actively expands to hot cities such as Beijing, Shanghai, Qingdao and so on.

According to Carey data, Outstanding Group has sales of about 94.9 billion yuan in 2019, ranking 38th in the country.

As of May 2020, the management area of excellent commercial enterprises is about 25.82 million square meters (contract size is 36.81 million square meters), of which about 41.6% are excellent home ownership projects. According to the income of the project under management in the first five months of 2020, about 37.4% of the income of property management basic services comes from excellent home ownership projects. The size of the company is relatively small, but more than half of the management projects are business, and the management order is high.

The company has a wide range of major service products:

I) property management services

Basic property management services, including cleaning, security, horticulture and repair and maintenance. The company's main source of revenue, accounting for 86% of total revenue in 2019

Value-added services, including pre-property consultancy, second-hand property rental and sale agents, sales assistance, and space operation services. 11% of total revenue in 2019

II) other businesses

Including financial services, apartment rental services and so on. Accounted for 3% of total revenue in 2019.

From the perspective of business segment, the company currently accounts for a low proportion of value-added services, accounting for about 11% of the total revenue in 2019. According to the nature of the business, there will be even less community value-added services.

In terms of profitability, the gross profit margin in 2019 was 23.6%. The gross profit margin of the basic property management services division is 22.0%, which belongs to the lower middle level of the industry. The comprehensive gross profit margin of value-added services is 25.2%, which belongs to the lower level of the industry. Other services, such as finance and leasing, have a high gross profit margin of about 62.1%, but their share is relatively low, accounting for about 3% of total revenue in 2019.