News

On August 29, 2023, Times Neighborhood Holdings Limited (stock code: 9928.HK, the “Times Neighborhood” or the “Group”) announced its interim results of 2023 for the six months ended 30 June 2023 (the “Period”): The Company recorded a revenue of RMB1.22 billion and a significant increase in the core net profit by 9.6% to RMB112 million as compared with the corresponding period in 2022. The Company, through its continuous efforts to adjust the business portfolio and optimize resource allocation, increased the total gross profit margin to 23.5% effectively.

During the adjustment phase of the current economic period, Times Neighborhood maintains the unswerving adherence to long-termism by seeking high-quality growths, and pursuing practicality and truth. Meanwhile, it ensures stable development through various measures such as the optimization of the cost structure and the stabilization of assets and cash flows. It unwaveringly focuses on and implements its determined strategies in response to the future challenges and opportunities.

Times Neighborhood, with maintaining high quality development as its main core, drives its growth based on property management services and community value-added services. With a resilient service structure, it achieves steady growth in core business segments, providing stable and continuous revenue to the Group.

During the Period, the Company recorded a growth of 4.2% in the revenue for property management services as compared with the corresponding period in 2022 due to the strong resilience in the business segment. Such revenue accounted for 78% of the total revenue of the Group. Specifically, the revenue from residential property management increased by 15.6% from the corresponding period in 2022.

For community value-added services, with personal-customer-oriented and high-gross-margin businesses target, Times Neighborhood achieved several results during a period of “cultivation”: It improved the operational efficiency of community resources through lean management; promoted the continuous growth in revenue and profitability through the continuous exploration of the existing markets; enhanced the differentiation between products and drove sales conversion through the continuous optimization of the structures of businesses and products; and promoted the initiative of employees for proactive operation through the innovation of the “Star Property Manager” mechanism.

During the Period, the Group actively conducted business expansion and 87 cities were covered by its service with 906 projects under management (excluding urban public service projects). The total contracted area was approximately 129 million square meters and the area under management was approximately 117 million square meters.

Moreover, through optimizing the regional scale and the business structure, the management intensity for high quality projects has been increased, and the Group conducted in-depth and thorough exploration of its advantageous fields. As a result, in the first half of 2023, the contracted area of projects in the four major urban agglomerations (namely, the Guangdong-Hong Kong-Macao Greater Bay Area urban cluster, the Yangtze River Delta urban cluster, the Chengdu-Chongqing urban cluster and the Central China urban cluster) and in the three core business segments (namely, residential properties, industrial parks and public buildings) accounted for 80% and 94% respectively of the Group’s total contracted area.

Based on years of experience of successful management and with the support of the “Spark Program”, the Group was highly recognized by its customers and gained excellent market reputation with superb brand strength and service capabilities. Furthermore, as its ability of independent business expansion continued to be strengthened, the proportion of the revenue from third-party property management to the total revenue from property management services reached 61.3%.

High quality services are always the foundations for Times Neighborhood. Adhering to the business value of “bringing surprisingly high quality and warm service to the customer”, all members of the Group made concerted effort to maintain the original aspiration for services to innovate the service system. The Group formulates differentiated service standards for the detailed scenarios of different businesses, and continuously improves services for the entire life cycle.

Meanwhile, the Group continued to implement the Initial Project 3.0, as it thoroughly improved the capacity and drive for service from the five major aspects (namely, the improvement of service efficiency, the upgrading of communication tools, the mode of community co-development with property owners, the acquisition of customer stickiness, and employee empowerment and training), adopted a strict zero tolerance policy on quality problems in the entire management cycle to optimize the close loop of management, and focused on the full spectrum of businesses to comprehensively implement special projects on quality improvement.

Regarding service innovation, the Group continued to promote comprehensive digital development by completing the development of the integrated central office for property management, which not only comprehensively improved the efficiency, but also optimized the customer experience. Furthermore, it actively promoted the mode of “co-development, co-governance and sharing” between the government, property owners and the property management service provider by providing multiple types of innovative service IP events that combined the traditional culture, the ideas of environmental protection and community features. Specifically, the “Times Neighborhood Carbon Reduction Season: Recycling for a Better Life Project” won the unanimous praise by customers.

Regarding the practice and development of Environmental, Social, and Governance (ESG), the Group promoted green and sustainable development with the focus on four directions, namely the management of energy consumption and resources, the management of water resources, waste management, and the low-carbon co-development & management. Additionally, the Company ranked Top 4 of China’s Outstanding Property Management Service Enterprises in ESG Development for 2023, indicating a continuous growth in its brand value.

Looking forward, the current economic environment still entails new challenges and opportunities. Meanwhile, the property management industry also demonstrates new developmental characteristics: The focus of scale expansion shifts from the “incremental volume” to the “existing volume”; enterprises in the industry are inclined to take an “independent” and “market-oriented” approach; and “high-quality development” has become the main theme of the future.

As a Creator of Modern Services, Times Neighborhood has consolidated its foundations based on long-termism, the full-life-cycle “Technology + Service” platform, the prudent and robust strategic guidelines, the systematic professional services and the differentiated field advantages, thereby having more confidence and patience in its own path to high quality development.

In the future, the Group will further consolidate service quality, innovate services, and expand service scope, so as to continuously seek the long-term growth opportunities in segmented business sectors and improve the comprehensive strength and brand value. Time Neighborhood will strive for long-term development through determined and unremitting endeavors, and create more value in order to reward property owners, its shareholders, employees and partners, and other sectors of society, and dedicate itself to its corporate mission of “offering more people a better life”.