In the process of crossing the cycle, different companies have shown different resilience. Companies that can maintain high-quality growth are undoubtedly a reflection of their strength. On August 24, KWG Yoho released its semi-annual report and delivered an eye-catching report c

In the process of crossing the cycle, different companies have shown different resilience. Companies that can maintain high-quality growth are undoubtedly a reflection of their strength. On August 24, KWG Yoho released its semi-annual report and delivered an eye-catching report card.

According to the financial report, in the first half of 2022, KWG Yoho Group achieved operating income of 2.064 billion yuan, a year-on-year increase of 68%, and net profit of 329 million yuan, a year-on-year increase of 3.4%. On the basis of steady performance growth, KWG Yoho's business structure continues to be optimized, its independent expansion capabilities are further improved, and it shows a good development trend.

Regarding the company’s future development strategy, CEO Wang Jianhui said at the performance meeting that in the future we will focus on growth, quality and digital intelligence, and hope to become an industry-leading and trustworthy smart service operator in the next ten years.

From left to right: Ms. Yang Jingbo, Executive Director and Chief Financial Officer of KWing Yoho Group, Mr. Wang Jianhui, CEO of KWing Yoho Group, and Ms. Li Mingming, Head of Investor Relations and Capital Markets Department of KWing Yoho Group

01 cash flow management has achieved remarkable results

Achieving cash flow Profit growth is the core indicator to measure the development of an enterprise. This is particularly important in the unfavorable situation of great uncertainty in the macro environment and repeated epidemics. In this In terms of performance, KWG Yoho is undoubtedly the industry benchmark.

According to the financial report, KWG Yoho Group’s revenue in the first half of the year was approximately 2.064 billion yuan, a year-on-year increase of 68%. With the continuous improvement of management efficiency, it achieved EBITDA of 470 million yuan, a year-on-year increase of 11%. As the company strengthened cash management and improved service quality while promoting repayment and efficiency, the company had abundant cash at the end of the period reaching 1.52 billion yuan.

The continued optimization of revenue structure is one of the business highlights of KWIN Yoho. Its residential and non-residential revenue ratio has reached 50:50. Non-residential property management and commercial operation service revenue and the proportion of total revenue continue to rise. According to Yang Jingbo, executive director and chief financial officer, the revenue from residential, commercial and public construction services in the group’s business portfolio in the first half of the year accounted for 5:2:3, a significant change from the same period last year, which accounted for 7:2:1. changes, and the business mix is ​​more balanced.

's deep presence in high-energy cities has increased the certainty of the company's performance growth. From the perspective of urban layout, the revenue of the and Yangtze River Delta parts of has reached 69.9%. The company has been deeply involved in the Greater Bay Area and the Yangtze River Delta for many years. The benefits in economically developed regions such as China continue to be highlighted. As of the end of the first half of the year, KWG Yoho Group has entered 147 cities in 22 provinces, autonomous regions and municipalities across the country, with an area under management and contract area of ​​214 million square meters and 285 million square meters respectively.

In terms of geographical distribution, as of the end of the first half, KWG Yoho Group's managed area in the Guangdong-Hong Kong-Macao Greater Bay Area was approximately 78.8 million square meters, and its managed area in the Yangtze River Delta was approximately 49.2 million square meters. While deepening and consolidating the integrated layout and leadership position in the Guangdong-Hong Kong-Macao Greater Bay Area and the Yangtze River Delta region, and increasing the density of advantageous areas, the company continues to increase its business and market share in the Bohai Rim Economic Circle and the central and western regions.

Based on its better business organization and urban layout, KWG Yoho has achieved a good gross profit margin level. According to the financial report, the company's gross profit margin in the first half of the year was 30.1%. Although it has declined compared with the same period last year, this is mainly due to the investment companies All have been consolidated, and the proportion of value-added services with higher gross profit margins in revenue has declined compared with the same period last year. In addition, continued long-term investment in anti-epidemic, quality improvement and technological empowerment, even so, such a profit level Still at a high level in the industry.

02 Market competitiveness has been significantly improved

Affected by the industry credit crisis, the delivery area of ​​new homes has been affected. In this case, property companies that are highly dependent on the parent company for scale growth will be under greater pressure, while property companies with independent market expansion capabilities will Gain development opportunities through market competitiveness.

In the first half of the year, KWG Yoho stepped up its market expansion, developing a total of 334 new projects, with a total contracted area of ​​14 million square meters. The expanded business covers residential, commercial, public construction and urban services, etc., and the endogenous driving force is for the development of the company. Infused with life and vitality. As of now, KWG Yoho Group’s third-party managed area accounts for 88%.

Overall, the proportion of non-residential areas in KWG Yoho’s expanded area has increased. According to the financial report, the company's non-residential expansion contract area accounted for 64% of the increase. There are new expansion projects in office buildings, urban services, public buildings, hospitals, schools and other business formats, including Shanghai Advanced Technical School , Guangzhou Baiyun Hospital, the First Affiliated Hospital of University of Chinese Medicine, Shanghai Industrial and Commercial Information School, etc.

In the first half of the year, KWG Yoho acquired Guangdong Terijie Environmental Engineering Co., Ltd. (hereinafter referred to as "Teligie"), officially entering the urban service track. It is reported that in the first half of the year, Trijet successfully entered the urban service market in southwest China and central China, completing off-site replication of its business. Trijet has invested in new energy sprinklers with high standards and horizontally expanded the processing chain of domestic waste and accumulated waste to prepare for entering a new "green" era.

With the post-investment management of acquisition projects, KWG Yoho’s future performance growth is expected to be further unleashed. Yang Jingbo said that post-investment enterprise integration is divided into three stages. The first is organizational integration. Second, the business differentiation period is to help member companies achieve sustained growth in business goals and tap growth points. The third stage is the cultural integration period.

"Integrate the main culture, system and institutional aspects with the invested companies, and now the progress is very smooth. The 2021 versus goal has been completed, and a unified platform has been established after the investment." Yang Jingbo said that the company's management is in the core business , finance and systems have been empowered and connected to varying degrees, and are currently being further deepened and upgraded.

Wang Jianhui said that the company has now formed a very good situation of coordinated development of third-party properties and its own properties. He proposed three key words for future development. First, the original intention is to strive for the future, continue to work hard on quality, and provide customers with Better services and products; second, digitalization improves quality and efficiency. Once a digital foundation is in place, process reengineering, organizational flattening, shared services and centralized management and control are introduced in a timely manner; third, the market team’s capabilities are strengthened, including the introduction of higher-level talents.

Wang Jianhui said that in the future, the company will focus on growth, quality and digital intelligence, and hopes to become an industry-leading and trustworthy smart service operator in the next ten years. He said: "We hope to achieve leadership in basic business in three years, lead in value-added business in five years, and lead in innovative business in the next ten years. Through these three leaderships, we will build our future-oriented strategy."