SHIMAO SERVICES released its annual performance report, with a gross profit of 1.564 billion yuan and a new annualized contract amount of 1.483 billion yuan, an increase of 28.2% year-on-year

According to the Zhitong Finance APP, Shimao Services (00873) announced its annual performance for the year ending December 31, 2024, with revenue of RMB 7.896 billion; gross profit of RMB 1.564 billion.

The announcement stated that in 2024, Shimao Services achieved impressive market expansion results, with a new annualized contract value of RMB 1.483 billion, an increase of 28.2% year-on-year; new contracted building area of 43.1 million square meters, an increase of 3.4% year-on-year; and an average property management fee for new projects of RMB 2.9 per square meter per month, an increase of 26.1% year-on-year.

In 2024, property management services, as the core business segment of Shimao Services, showed a steady upward development trend. Despite facing significant pressure in overall economic development in recent years and a continued downturn in the real estate industry, Shimao Services achieved fruitful results due to its deep understanding of the industry and excellent management capabilities.

Revenue from property management services reached RMB 5.564 billion, an increase of 5.1% year-on-year, mainly due to the group's active development of third-party bidding and expansion, resulting in an increase in managed building area; the third-party bidding expansion team's outstanding capabilities and excellent performance, with the quality of newly acquired projects exceeding that of existing projects; the group's enhancement of property management service quality, promoting an increase in the total contract amount of managed projects; and the increase in managed building area delivered to the group by Shimao Group Holdings Limited, which contributed to the growth of property management service revenue.

As of the end of 2024, residential projects accounted for 63.9% of the managed projects of Shimao Services, forming a solid foundation for the business. Among these residential projects, as much as 74.4% are located in first-tier, new first-tier, and second-tier cities. These high-energy cities gather abundant resources and a large consumer base. With a high proportion of project layout, Shimao Services is deeply rooted in these areas, capable of fully tapping into the diverse needs of local residents, providing ample space for the expansion of diversified value-added services, and continuously injecting strong growth momentum