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Times Neighborhood Holdings Limited (stock code: 9928.HK, hereinafter referred to as "Times Neighborhood" or the "Group") announced its 2023 annual results on March 26, 2024. During the Reporting Period, the Group recorded a revenue of RMB2.47 billion. The core net profit attributable to owners of the parent for the year recorded a year-on-year increase of 10.7% and the cash at the end of the Reporting Period recorded a year-on-year increase of 13.4%.

The impact of the economic cycle in 2023 on the property management industry has not yet dissipated. Facing the current situation, Times Neighborhood has always forged ahead with firm confidence, actively responded to industry adjustments and constantly improved "endogenous power + high quality". It has not only optimized its investment and expansion structure, focused its attention on core business and deepened refined management but also consolidated its quality foundation. While winning the trust and choice of customers, Times Neighborhood has maintained a steady trend of high-quality development.

With the preservation and appreciation of real estate value at the core
Creating one-stop asset management services

The Group has created the three business lines of "Property Management, Renovation, and Lease and Sale" with the preservation and appreciation of real estate value at the core to provide one-stop asset management services for property owners. By continuously deepening and accelerating the organic integration between basic property management services and core value-added services, the Group has been deeply exploring customer needs and unceasingly satisfied property owners' pursuit of a better life.

In respect of basic property management services, revenue increased by approximately 1.4% during the Reporting Period. The overall performance was stable and development resilience was maintained. As the Group firmly reinforced its presence in the C-end existing market, focused its attention on comprehensive real estate services and attached more importance to high-quality development, the gross profit margin improved from 32.9% to 42.5% during the Reporting Period for community value-added services.

● Community resources were managed with lean operations

The Group maintained refined operations of community resources and self-operated advertisements. New service categories were created based on residential and commercial development trends.

● Breakthroughs were made in multiple product lines of renovation business

Three major product lines were created to meet different types of customer needs. The investment-attraction procedure was standardized for joint operations business. A constant increase was achieved in the revenue scale.

● Continued efforts were made in lease and sale business

The Group actively expanded its reserve of existing housing resources and adopted a combination of online promotions and offline stores. As a result, transactions remained stable.

The Group continued to strengthen the coordinated innovation of products, established closer service relationships with efficient asset operations, and achieved an improvement in both owner asset value and neighborhood business value through integrated services and proactive management.

With high-quality development at the core
Focusing on multi-dimensional high-quality expansion

The Group focused on multi-dimensional high-quality expansion with high-quality development at the core. Constant breakthroughs were made in the total amount of new contracts and the annualized total contract amount during the Reporting Period. The billing cycle was shortened while the length of cooperation was increased, helping with steady corporate operations and laying a solid scale foundation for the healthy development of business.

Rooted in four core urban agglomerations, the Group expanded density through the "Starfire Plan" and maintained a steady improvement in project quality. The total management area of contracted projects and the total area of projects under management were approximately 120 million square meters and approximately 110 million square meters, respectively, in 2023. Specifically, the contracted area of projects located in the four core urban agglomerations of the Guangdong-Hong Kong-Macao Greater Bay Area, the Yangtze River Delta, the Chengdu-Chongqing Urban Agglomeration and Central China reached 95.73 million square meters. Its proportion to the total contracted area grew by 2.5% from last year. The contracted area of projects located in first- and second-tier cities reached 88.53 million square meters and its proportion to the total contracted area grew by 2.4% from last year.

The Group intensely tapped into three core business formats, deepening and strengthening its position in areas where it had accrued expertise. The Group obtained multiple high-quality industrial park projects and sustained its leading position in the area of logistics park services. Meanwhile, it empowered urban services by high-quality service ability, and all-round environmental governance by technology. A number of benchmark projects thereby came into being. 

With value creation at the core
Laying a foundation with quality and making service iteration

Service quality is the cornerstone of property management enterprises. Only by directly facing market competition, proactively responding to and steering changes and solidly improving services can a property management enterprise win recognition from customers and further adapt to the development trend of diversified and refined customer needs.

Guided by the "Initial Plan 3.0", the Group refined service granularity and constantly created value for customers from four improvement directions based on 12 service scenarios. Additionally, through "reputation spreading by service brand, label solidification by corporate brand and word-of-mouth building by business brand", the Starfire Plan was supported and the moat of distinctive brands was consolidated.

● Improving customer satisfaction with in-depth services

Through the dual improvement in intrinsic motivation and service ability as well as the three major actions of Beautification Action, Safety Action and Renovation Action, the Group achieved an overall improvement in customer satisfaction and won property owners' high recognition of its quality.

● Optimizing customer experience with technology tools

The Group adopted measures such as corporate WeChat service upgrades, smart cleaning tool upgrades, online security upgrades of fire-protection logs, and service team skill and assessment upgrades to add 16 new business scenarios, develop 500+ AI-based communication scripts and improve the customer service efficiency and initiative of frontline staff.

● Increasing customer stickiness with humanistic concern

The Group made active efforts to build a community that is friendly to the elderly, children and pets. It also promoted the new social governance pattern of "joint construction, governance and sharing" through various innovative activities including characteristic service IPs, low-carbon environmental protection and Party building.

● Providing embroidery-like refined operations with the "SHOW City" service model

The Group kept extending its service functions. Advanced management and technological means were used to help construct a more comfortable urban environment of higher quality and elevate the level of urban management.

With digital-intelligent transformation as a tool
Fully enabling online functionality

The Group constantly intensified its digital and intelligent reform efforts to facilitate fully online business handling and automated finance, giving priority to the optimization of the life cycle of project operations and the whole procedure of operations management and control, so that property management became more in-depth, data-derived benefits more significant, management effectiveness more outstanding, and post-investment management more refined.

Data-driven operations

Establishing a data-asset management system

In total, 470 customer labels in six dimensions were established, 205 online reports were automatically generated and 106 offline reports were eliminated. Data connectivity of different business systems and data pivoting in different dimensions were made possible through a data warehouse, which further activated data productivity.

Smart upgrades

Promoting the intelligent development of the customer service platform

The Group promoted the intelligent development of its customer service platform and enhanced the intelligence of customer communication tools. The online functionality of basic services in 12 scenarios of seven primary categories, including online payment, online maintenance reporting, intelligent customer service and vehicle management, was comprehensively covered to achieve more convenient self-service for property owners.

Cost management reform

Making optimal allocation and energy-conservation transformation 

The Group took multiple measures to lower costs, continuously released project benefits and adapted to different types of project operations. With the use of Internet of things-transformed facilities and equipment, management costs were reduced. The Group also practiced the sustainable development concept of environmental, social and governance (ESG) and jointly promoted the low-carbon environmental protection undertaking.

With longtermism as a belief
Balancing integrity and innovation for long-term and steady development

Looking ahead to 2024, opportunities and challenges coexist. Times Neighborhood must balance integrity and innovation for long-term and steady development.

Integrity is the foundation. It means adhering to core values, constantly creating value for customers and also maintaining a longtermist mindset.

Innovation means following the spirit of innovation. When the environment changes, an enterprise should remain flexible and astute, use innovative thinking to solve problems, and be good at seizing new opportunities and finding the right path forward.

In the future, Times Neighborhood will also continue to uphold the belief of longtermism and keep deepening high-quality corporate development with three strategies:

First, resolutely implementing the "Starfire Plan" to promote high-quality scale growth. Times Neighborhood will persist in deep engagement in the four core urban agglomerations and the three core business formats, accelerate the increase in project density, and achieve high project synergy and optimal resource allocation within the areas. It will also expand more high-quality projects with high total prices, long cycles and obvious demonstration effects, and further deepen its comprehensive urban service ability.

Second, insisting on winning trust with high-quality services and creating value for customers. With the preservation and appreciation of real estate value at the core, Times Neighborhood will focus on the three business lines of "property management, renovation, and lease and sale" to provide one-stop asset management services for property owners and will deeply tap market potential. Additionally, it will deepen the implementation of its four-tier service standard system, develop more systematic service ability, customize comprehensive asset solutions for customers and create in-depth service value.

Third, adhering to business development led by digital technology and intelligence and organizing the joint creation of a blueprint for the future. A sustainable organization is the cornerstone for achieving ambitious goals. The Group will further build an organizational platform of "technology + services" to enhance organizational resilience, activate new engines for profit-making, and accelerate access to broader markets and customer groups.

In the future, new creations await to be put into practice and new longings will soon be ignited. Times Neighborhood will continue to fulfill its original aspiration of serving, keep striving for higher goals, and create more value for property owners, shareholders, employees, partners and all sectors of society. It will remain committed to realizing the corporate mission of "Let More People Enjoy A Better Life".