In terms of comprehensive strength, Yuexiu Service Group ranked 16th among the top 100 property management enterprises in 2021, while among the top 100 property service enterprises in 2020, the company ranked 45th in terms of non-commercial property management area and 62nd place in terms of commercial property management area.

At the end of 2020, the company acquired Guangzhou Metro Environmental Engineering and Guangzhou Metro property Management from its strategic investor Guangzhou Metro, and became a compound property management company of "Metro Environmental Engineering maintenance + Metro property Management Operation".

According to the prospectus, from 2018 to 2020, Yuexiu Service Group achieved income of 763 million yuan, 896 million yuan and 1.168 billion yuan, and its net profit was 45.458 million yuan, 91.327 million yuan and 199 million yuan, showing a positive growth trend, among which the net profit doubled for two years in a row.

From the perspective of structure, Yuexiu Service Group's income comes from two parts: non-commercial property management and value-added services and commercial property management and operation services. From 2018 to 2020, the income of non-commercial property business was 494 million yuan, 603 million yuan and 811 million yuan, accounting for 64.8%, 67.3% and 69.4% of the company's income, respectively.

For comparison, Yuexiu Service Group's commercial property management and operating services achieved revenue of 269 million yuan, 293 million yuan and 357 million yuan respectively from 2018 to 2020, accounting for 35.2%, 32.7% and 30.6% of the company's revenue, respectively.

By comparison, it is not difficult to see that although the scale of commercial property income of the company is still growing during the reporting period, compared with non-commercial property business, the growth rate of income scale is slower, and the corresponding proportion of income continues to decline.

In terms of profit performance, the non-commercial property business of Yuexiu Service Group achieved a gross profit of 105 million yuan, 151 million yuan and 293 million yuan respectively from 2018 to 2020, while the gross profit margin of the business was 21.3%, 25% and 36.1% respectively.

In contrast, the performance of the company's commercial property business is much lower. From 2018 to 2020, the gross profit of this sector was 92.46 million yuan, 92.752 million yuan and 110 million yuan respectively, and the growth rate of gross margin was significantly lower than that of non-commercial property business. In the same period, the gross profit margin was 34.4%, 31.7% and 30.8% respectively, showing negative growth compared with the same period last year.

Although the profit performance of the commercial property sector is relatively weak, the good news is that the gross profit margin of the non-commercial property business, which accounts for the majority of Yuexiu service group's revenue, continues to rise sharply, which has pushed up the company's overall gross profit margin from 25.9% in 2018 to 34.5% in 2020.

By the end of 2020, Yuexiu Service Group has an area of 32.648 million square meters and a total of 215 properties under management.

Specifically, by the end of 2020, the total area under management of the non-commercial properties of Yuexiu Service Group was 29.853 million square meters, accounting for 91.4% of the company's total area under management. Further breakdown, the company's residential property management area of 21.988 million square meters, public properties of 5.677 million square meters, industrial parks and other 2.188 million square meters.

In the same period, the area under management of commercial property is 2.795 million square meters, accounting for 8.6% of the total area under management of the company. Among them, the administrative area of the office building is 2.29 million square meters, the shopping mall is 233000 square meters, and the professional market and others are 272000 square meters.

Generally speaking, among the top 100 property service enterprises that provide commercial operation services, Yuexiu Service Group's market share in 2020 is only 0.1% in terms of area of occupation, and its market influence is relatively limited. In addition, the company also has the situation that its performance depends on major shareholders and its business is concentrated in the Greater Bay area.

According to the prospectus, from 2018 to 2020, the properties developed by Yuexiu Service Group from Guangzhou Yuexiu Group and Yuexiu Real Estate (00123) and their respective joint ventures, joint ventures and other related parties accounted for about 86.3%, 80.5% and 79.5% of the total number of projects managed by the company, respectively. At the same time, the operating income generated by the above property management services accounts for 91.7%, 88.6% and 90% of the total business income generated by the company's relevant annual property management services.

The above Yuexiu Real Estate is the controlling shareholder of the company, while Guangzhou Yuexiu Group is the indirect shareholder of the company. From this point of view, Yuexiu Service Group's dependence on major shareholders is evident.

From the perspective of geographical distribution, Yuexiu Service Group's management projects are concentrated in the Great Bay area. According to the prospectus, by the end of 2020, the company's area under management in the Greater Bay area was 25.3 million square meters, accounting for about 77.4% of the total area under management. From the revenue point of view, from 2018 to 2020, Yuexiu Service Group's revenue generated from the Great Bay area accounted for about 85.4%, 84.1% and 82.4% of the total revenue, which also confirmed the importance of the Great Bay area to the company's performance.

In fact, Yuexiu Service Group focuses on the Greater Bay area, which has something to do with the company's controlling shareholder, Yuexiu Real Estate, betting heavily on this area. According to public data, the total contract sales of Yuexiu Real Estate in 2020 is about 95.76 billion yuan, of which the sales from the Greater Bay area is 63.66 billion yuan, accounting for 66.5 percent.

According to the prospectus, in November 2020, Yuexiu Service Group acquired Guangzhou Metro Environmental Engineering and Guangzhou Metro property Management, adding more than 5 million square meters of managed area. at the same time, it also makes the company cut into new business forms such as managing subway station lines and building properties above the subway depot.

According to the company, TOD integrated property management model will become the new momentum of Yuexiu Service Group's future scale expansion and profit growth.

According to the data of China's Ministry of Transport, by the end of 2020, 44 cities in China have opened and operated 233urban rail transit lines, with a total operating mileage of 7545.5 km. In 2020 alone, 39 new urban rail transit lines and 1240 km of operating mileage were added in China, an increase of 20.1% over the same period in 2019.

It is understood that Japan, Singapore, Hong Kong, China and other places have formed a more mature TOD model, while the domestic has just started.

It has been disclosed that the Yuexiu service plan will use the net funds raised for the following purposes: to provide funds for strategic acquisitions and investments, to further establish strategic alliances, to expand the scale of business, to enhance regional influence and to improve business penetration in the residential property management service market, the public property management service market and the commercial property management and operation service market. Further develop value-added services to diversify the portfolio of services and enhance profitability; develop information technology systems and smart communities; and supplement working capital and general corporate uses.