HONG KONG, October 29, 2021 – (ACN Newswire) – – In October 2020, Shimao Services Holdings Limited (“Shimao Services” or the “Company”; HKEX Stock Code: 873.HK), a leading provider of comprehensive property management and community living services in China, appeared on the Hong Kong Stock Exchange and successfully embarked on a new journey in the capital market. By developing its comprehensive property management services, its diversified value-added services and its smart city services, the Group has achieved quality growth.
Shimao Services is positioned as one of the leading providers of comprehensive property management and community life services in China. With its brand concept focused on a “Better Smart Life”, Shimao Services is committed to becoming one of the leading providers of comprehensive urban living service scenarios in China. In addition to continuing to develop its activities of comprehensive property management, diversified value-added services, smart city services and digital technologies, it also wants to become one of the main players in the real estate services industry of by 2023.
Implements five major strategies, including “1 + 1 + X”
The resources and market shares of the real estate services industry are gradually focusing on market leaders, with competition within the industry becoming increasingly intense. Based on the current situation of the Company, as well as the evolution of the market, Shimao Services meticulously crafted its roadmap and implemented five strategies, including “1 + 1 + X” (associated diversification), horizontal integration, vertical integration, centralization and updates.
Take “1 + 1 + X” as an example. The first “1” refers to global properties, including residential buildings, college campuses, and other types of global businesses. The second “1” refers to value-added community services and “X” to city services. However, there might be more opportunities available in the future. Shimao Services follows a clear value investment philosophy and expands its scale through cooperation as part of its horizontal integration strategies. Priority will be given to cooperation agreements with regional leaders and niche market leaders. “We are covering one platform with another platform, to achieve the ‘1 + 1> 2’ effect through the cooperation of both parties,” said Ye Mingjie, executive director and chairman of Shimao Services.
The vertical integration strategy, on the other hand, opens up multiple types of services, such as housing, schools, hospitals, “SUNIT” and educational establishments. While simultaneously developing several businesses, Shimao Services proposed a centralized strategy to strengthen the development of its businesses in five key cities: Hangzhou, Wuhan, Xi’an, Tianjin and Fuzhou. To take Hangzhou for example. After cooperating with Zheda Sinew and Jinhu Property, the company again partnered with Yefeng Property in order to further increase the density and concentration of the Hangzhou market and strengthen the overall capacities of a single market.
As for the update strategy, it is the final stage of Shimao Services’ post-investment integrated management plan, and focuses on further improvements to its organizational capacity and management mechanism; continuing to improve the capabilities of its professional segment; and strengthening of the coordination mechanism for the expansion of the project. In August 2020, Shimao Services worked with Zheda Sinew and then implemented her renewal strategy within the company. On May 9, Zheda Sinew improved its brand image and launched the “Yulin Campus Service Ecology”. Shimao Services positioned it as from China a leading provider of college campus services, reflecting the Group’s strategies of vertically developing the college campus market, consolidating its superior resources and enhancing business growth.
A municipal service manager focused on promoting four core businesses
Municipal Services, an ideal area for exploring the scope of services and demonstrating full service capabilities, is seen as a new blue ocean in the realm of property management. By leveraging its strong and comprehensive service capabilities, Shimao Services spread to municipal services and quickly made inroads. In this year’s interim report, municipal services became one of the Shimao Services’ four major business sectors for the first time and began to demonstrate its exceptional potential, bearing fruit in many regions across China. In the first half of 2021, sales of Shimao Services’ municipal service company affected 134 million RMB.
Shimao Services sees municipal services as a new strategic engine for the growth of its business and therefore positions itself as a manager of municipal services to focus on the promotion of four major professions, namely municipal environmental management, space management urban, municipal renewal management and smart urban management. Building on its existing property management activities, the company has extended its range of services, ranging from resident service to “residents + citizens” service, and from “service as part of service” to “service within framework”. of service + service beyond the scope of the service “, and went from a single real estate service to a full spectrum service, helping to improve the scientific, precise and intelligent management of each city and participating in the creation a better future for every city.
Since May 2021, Shimao Services cooperated with Shenzhen Shenxiong Environment Co., Ltd. (“Shenxiong Environment”) and Wuxi Jinshatian Technology Co., Ltd. (“Jinshatian Technology”) by establishing its arrangement in two key regions, namely the Great Bay area and the Yangtze River Delta region, and in strengthening its basic global capacities in municipal services. Shenxiong Environment ranked among top 10 environmental remediation companies in Greater Bay area, and Jinshatian Technology ranked sixth in the municipal environmental sanitation industry in China. Both companies are national high-tech enterprises and have national level 1 qualification for cleaning services.
Furthermore, Shimao Services started cooperation with local governments in nine regions, including Jiangsu, Fujian, Guizhou, Sichuan and Heilongjiang. In addition, he recently implemented two projects in the Sucheng District of the city of Suqian and the Acheng District of Harbin City, respectively. It should be noted that in the future, Shimao Services plans to invest in its second national headquarters in Wenjiang District, Chengdu City, with the aim of expanding within the urban service area. Ye Mingjie said, “We will focus on harnessing our resources and advantages in community governance and municipal services to provide quality services such as management of municipal public property, exploitation of urban spaces. and the development and operation of intelligent communities, in order to help the central and western regions develop a new concept of dynamic and intelligent life. “
Strive to achieve five-fold growth over the next three years
The state has introduced a series of favorable policies intensively in recent years. Shimao Services believes that the introduction of these policies has created favorable conditions for the standardized functioning of real estate companies and the long-term positive development of the industry. “The policies are conducive to the healthy development of the real estate services industry, especially for real estate service companies that insist on a long-term development approach. Shimao Services has always been firmly optimistic about real estate services and is confident in its future quality development and high growth potential, ”said Ye Mingjie.
In the long term, Shimao Group and Shimao Services are optimistic about the real estate services industry. As an important part of the Shimao Group’s “one body, two wings, airplane” strategy, Shimao Services has quintupled its growth over the past three years. Over the next three years, the Shimao Group will continue to redouble its efforts to support the rapid and continued growth of Shimao Services’ real estate services segment, operating on the asset-light model.
Look ahead, Shimao Services move forward by implementing its defined strategies and positioning itself as one of the leading providers of comprehensive property management and community life services in China based on the “Better Smart Life” brand concept. It will also strive to become one of the leading providers of comprehensive city life service scenarios in China. In addition, the Group will insist on achieving its short and long term objectives, seizing opportunities to establish a presence and further develop the four main business segments of comprehensive property management, diversified value-added services, smart city and digital services. technology, accelerate the implementation of its strategies, accelerate the expansion of its business and build new value-added engines. These efforts will enable the Group to achieve lasting competitiveness that will enable it to achieve the objective of quintuple its growth over the next three years.
On Shimao Services Holdings Limited (Stock code: 873)
Created in 2005, Shimao Services is from China leading provider of integrated property management and community life services. It is also one of the important components of the Shimao group’s “large aircraft” strategy. Shimao Services takes the “Smart Maker of Good Life” as a brand concept and implements the “iBlue strategy”, focusing on the four main poles of high energy cities in the Yangtze River Delta Region, Central and West China, South China and Bohai Economic Rim. From June 2021, the company had more than 530 properties under management, 239 million square meters of area under contract, covering residences, schools, government and public facilities, health centers and hospitals, VIP lounges in wards waiting, etc. non-proprietary life and value-added services for nearly 3.2 million homeowners and users.
For more information, please visit Shimao Services’ website: https://www.shimaofuwu.com/
For more information, please contact:
Limited Strategic Financial Relations
Sharon Lau / Cherry Chen
Phone. : (852) 2864 4852 / (852) 2114 4903
Email: [email protected]
Fax: (852) 2527 1196
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