On September 29th, 2020, a joint effort by the China Association of Property Research and the China Real Estate Evaluation Center of the Shanghai E-House Real Estate Research Institute, was held in Zhengzhou to release the results of the 2020 evaluation of the comprehensive strength and brand value of property service enterprises. At the meeting, the "2020 Property Service Enterprises Comprehensive Strength Assessment Report" was released, and the 2020 Property Service Enterprises Comprehensive Strength 500, the list of leading property service enterprises in each sub-sector and each field was released at the same time.
From the regional distribution, the top 500 property service enterprises are widely distributed, and their management area is spread across 72 cities in China. Among them, the stronger economic strength of East China and South China occupy half of the country, including more than half of the top 500 companies; more than 80% of the enterprises are concentrated in 13 provinces and municipalities, such as Guangdong Province, Beijing Municipality, Shanghai Municipality, etc. In addition, Shenzhen City, Beijing Municipality, Shanghai Municipality, and other 13 cities of the top 500 companies concentrated in nearly 70% of the top 500 companies.
Figure 1 Regional Distribution of Top 500 Enterprises in 2019
01 Accelerated Expansion of Management Scale, Advantage Gathering to the Head
In 2019, the top 500 property enterprises managed 82,574 projects, an increase of 17.29% year-on-year, and managed an area of 13.376 billion square meters, with an average of 2675.15 The average area under management was 2675.15 million square meters, an increase of 12.53% year-on-year.
The market share of the top 500 companies grew from 42.56% in the previous year to about 44%, and the concentration of the management scale of the property service companies has been climbing.
Figure 2 Overview of the management scale of the Top 500 enterprises in 2019
Advantages of the leading enterprises are accumulating, and the trend of constant strength of the strongest continues. The total number of projects managed by the top 100 enterprises is 49,260, an increase of 18.66% over the previous year, accounting for 59.66% of the projects managed by the top 500 enterprises; the top 100 manage 9,038 million square meters, an increase of 12.87% year-on-year, accounting for nearly seventy percent (67.57%) of the area managed by the top 500 enterprises; and the market share of the area under management has grown from 28.7% in the previous year The market share of managed area increased from 28.7% in the previous year to about 29.9%.
Figure 3 Changes in management area, number of projects and market share of the top 100 enterprises from 2010-2019
02 Multiple initiatives to promote enterprise development, and the scale of property enterprises continues to expand
Relying on affiliated real estate enterprises to obtain stable resources, with a wide layout of management area. The company's business is closely related to the development of the real estate enterprise. The company's ability to expand the scale of its business with the help of the project resources of its affiliated real estate companies is a certainty.
High-quality mergers and acquisitions accelerate industry consolidation, and the scope of mergers and acquisitions expands to head enterprises and specialized fields.
The industry's mergers and acquisitions of strong and powerful phenomenon has occurred repeatedly, high-quality mergers and acquisitions and the head of the strategic cooperation of enterprises to increase, accelerate the industry consolidation. At the same time, the strong enterprise mergers and acquisitions target from the property service enterprises to expand their business related to intelligent technology, education, elevator, insurance and other areas of professional companies, the service chain to the depth of the direction of development.
03 service boundary broadening, non-residential property into the layout of the focus
2019, the top 500 layout of residential property enterprises amounted to 477, accounting for 95.4%, the same as the previous year, is still the focus of the layout of property enterprises. At the same time, the number of enterprises involved in various non-residential segments has increased, becoming the new expansion focus of property enterprises.
Figure 4 Percentage of the number of enterprises in each segment of the layout of the top 500 enterprises in 2018-2019
The service industry of the property management industry has expanded comprehensively, and the management projects and area of each segment of the top 500 have increased, with the growth rate and net increase of non-residential properties exceeding that of residential properties.
Figure 5 Management area and growth rate of each segment of the top 500 enterprises in 2018-2019
Expansion of the leading property service enterprises into the field of non-residential properties, increase in the proportion of non-residential properties, and diversification of the layout of the industry.2019, the top 500 enterprises accounted for 60% of the area under management of residential properties, which still occupies the main composition. Non-residential properties accounted for 40.0%, an increase of 3.51 percentage points over the previous year, of which office properties and industrial parks accounted for 10.27% and 7.18% of the property management area respectively, both about 1 percentage point higher than the previous year.
Figure 6 2018-2019 top 500 enterprises management area share by segment
Seizing the opportunity of the development of non-residential properties, the service boundary of property enterprises is extended. Under the impetus of policy dividends such as reforming the socialization of logistics for institutions and agencies, encouraging social capital to participate in the investment and operation of public **** services, and comprehensively implementing the socialization of property management and security work in military camps, the field of non-residential property continues to release market space. Numerous enterprises have stepped into the field of non-residential property through building non-residential property sub-brands, strategic cooperation, mergers and acquisitions and bidding, etc., and have laid out in a variety of scenarios, such as government agencies, state-owned enterprises' mixing and reforming, "three supplies and one industry", urban services, highways, military property management fields, township services, municipal sanitation, venues, transportation hubs, scenic spots, and so on, in order to Open up new directions of development.
04 Enterprise layout for the nationalization, and strengthen the regional deep plowing
500 business layout of a wide range of 82,600 projects under management, in addition to the absence of the layout of China's Taiwan Province, widely distributed in the country's other 33 provinces, autonomous regions, municipalities directly under the Central Government and the special administrative regions, nearly 1,000 towns and cities, and Japan, Malaysia, Cambodia, Spain, Canada and many other places. The top 500 companies have the most area under management in East China, with 5.153 billion square meters, accounting for nearly 40% (38.53%) of the total.
Figure 7 Regional Distribution of Management Surface of Top 500 Enterprises in 2019
The business of the top 500 enterprises is concentrated in key development regions, and the management area of the top 10 provinces and cities with the largest management scale*** reaches 8.968 billion square meters, accounting for 67.04% of the total area under management of the top 500, which indicates to some extent that the coverage of the property services in these regions has a wider range of more concentrated management.
Figure 8 Top 500 companies layout management area of the top ten provinces and cities in 2019
At the same time, the top 500 focus on the layout of the ten cities management area totaled 4.182 billion square meters, accounting for 31.26% of its management area.
Figure 9 Key Layout Cities of the Top 500 Enterprises' Managed Area in 2019
01 Operating Revenue Exceeds 300 Billion Yuan, and Market Share Continues to Increase
In 2019, the Top 500 Enterprises' operating revenue was 340,748 million yuan, with an average value of 681 billion yuan, an increase of 20.33% year-on-year, the performance maintained a sustained growth trend. At the same time, the proportion of operating revenue of the top 500 enterprises in the total industry revenue increased by 1.18 percentage points from 31.23% to 32.41%, the head enterprises have strong revenue-generating capacity, and the market share of operating revenue of the top 500 enterprises has further consolidated and expanded.
Figure 10 Overview of Operating Revenues of Top 500 Enterprises in 2019
In 2019, the operating revenues of the top 100 enterprises amounted to 216.043 billion yuan, with an average value of 2.160 billion yuan, a year-on-year increase of 21.25%, and a steady growth in operating performance; they accounted for 63.40% of the operating revenues of the top 500 enterprises, an increase of 0.48 percentage points over the previous year; the operating revenue The market share reached 20.55%, an increase of 0.90 percentage points over the previous year, and the market share continued to improve.
Figure 11 Operating income and market share of the top 100 enterprises from 2010-2019
02 Service penetration expansion, building a diversified community consumption scene
In 2019, the basic property services of the top 500 enterprises amounted to 266,053,000,000 yuan, averaging 532,000,000 yuan, a year-on-year increase of 17.86%, accounting for 78.08% of the total operating income, which is still the main force of the enterprise's income generation. Revenue from multiple business services amounted to 74.694 billion yuan, with an average value of 149 million yuan, a year-on-year increase of 30.03%, accounting for 21.92% of the total operating income, an increase of 1.64 percentage points compared with the previous year, and the revenue from multiple business services continued to increase.
Figure 12 Changes in the composition of operating revenues and the proportion of multiple operating revenues of the top 500 enterprises in 2018-2019
In 2019, the basic property service revenues of the top 100 enterprises were 164.258 billion yuan, an increase of 18.98% year-on-year, accounting for 76.03% of the total operating revenues; and the revenues from multiple operating services were 51.785 billion yuan, an increase of 29.05%, accounting for 23.97% of the total operating income, an increase of 1.45 percentage points over the previous year, accounting for more than the top 500 enterprises.
Figure 13 Changes in the composition of operating income of the top 100 enterprises from 2017 to 2019
In 2019, the scale of residential properties continued to expand and the level of property fees grew, with basic property service revenue reaching 121.814 billion yuan, a net increase of 14.3331 billion yuan, an increase of 13.33% year-on-year, and the basic property fee revenue of non-residential properties of 144.239 billion yuan. A net increase of 25.989 billion yuan, an increase of 21.98% year-on-year, the growth rate is higher than the overall growth rate of residential property and basic property fee income (17.86%).
Figure 14 2018-2019 Basic Property Service Revenue and Growth Rate of Different Business Formats of the Top 500 Enterprises
In 2019, the basic property service revenue of residential properties of the Top 500 enterprises accounted for 45.79% of the total value of basic property service revenue, which is still the main revenue component of basic property services. Non-residential property base property service revenue accounted for 54.21%, up 1.83 percentage points from the previous year. Residential properties generated over 50% of the revenue with 40% of the area. Residential properties still have the largest revenue contribution capacity, and non-residential properties have a higher value per unit area.
Figure 15 Area share and revenue share of each business format of the top 500 companies in 2019
Emphasis on the development of a variety of business services, and value-added services around community life grew significantly. In 2019, the revenue of multiple business services of the top 500 companies exceeded 70 billion yuan, with a growth rate of 30.03%. Among them, community service revenue grew 66.81% to 31.537 billion yuan, a net increase of 12.631 billion yuan, accounting for 42.22% of the revenue from multiple business services, an increase of 9.31 percentage points from the previous year.
Figure 16 Revenue and growth rate of various business segments of multiple business services in 2018-2019
To create a one-stop service platform, integrate online and offline high-quality resources, accurately match the consumption needs of owners, provide platform products and services, enhance the influence of the corporate brand, and improve the stickiness of owners, the community's development space is broad.
Table 1 Overview of community service platforms and registered users of some of the top 500 property enterprises
Note: The data on the number of registered users is as of December 31, 2019
03 Profitability continues to strengthen, and the profitability of a variety of business services has a broad space
In 2019, the top 500 enterprises' gross profit and net profit were 51.164 billion yuan and 29.988 billion yuan, respectively, with an average value of 102 million yuan and 59.976 million yuan, respectively, up 19.32% and 32.57% year-on-year. Gross profit margin decreased slightly by 0.13 percentage points to 15.02%, and net profit margin was 8.80%, an increase of 0.81 percentage points over the previous year.
Figure 17 Distribution of Gross Profit, Net Profit and Gross Profit Margin and Net Profit Margin of the Top 500 Enterprises in 2018-2019
The net profit of the Top 500 Enterprises of Multiple Operational Services in 2019 amounted to 10.816 billion yuan, an increase of 59.52% year-on-year, and accounted for 36.07% of the total value of the net profit, an increase of 6.09 percentage points compared with the previous year. In addition, a variety of business services with 21.92% of the revenue, contributing 36.07% of the net profit, a variety of business services with strong profitability, becoming a new point of corporate profit growth.
Figure 18 Comparative Distribution of Revenue and Net Profit Structures of the Top 500 Enterprises in 2019
04 Multi-channel Improvement of Cost Structure, and Effectiveness of Operation and Management
(1) Pressure on Labor Costs Remains High
In 2019, the operating costs of the top 500 companies amounted to 289.584 billion yuan, with an average value of 579 million yuan, an increase of 20.51% over the previous year, and the operating cost rate was 84.98%, a slight increase of 0.12 percentage points over the previous year.
Figure 19 Average value of operating costs and operating cost ratio of the top 500 companies in 2018-2019
Labor costs accounted for more than half of the total, and remained the main cost expenditure of enterprises. In 2019, the labor costs of the top 500 enterprises amounted to 152.876 billion yuan, an increase of 18.01% year-on-year, accounting for 52.79% of the total value of operating costs, a decrease of 1.12 percentage points compared with the previous year.
Figure 20 Distribution of Operating Costs of Top 500 Enterprises as a Percentage in 2018-2019
(2) Project Outsourcing and Intelligent Inputs Highlight Their Importance, Helping to Improve the Operational Efficiency of Enterprises
In 2019, 402 out of the top 500 enterprises*** handed over part of their basic property services to professional outsourcing enterprises, an increase of 13 from the previous year, with a total of 87,874 outsourcing projects and a 106.42% share of project outsourcing.
Figure 21 Distribution of project outsourcing share among the top 500 enterprises in 2018-2019
High and new technology and digital construction investment is the second largest use of fundraising by listed property enterprises. Property service enterprises actively embrace intelligent technologies such as the Internet of Things and big data to improve the quality of property services, help enterprises reduce costs and increase efficiency, and empower their development.
Figure 22 Part of the top 500 enterprises intelligent input construction investment and proportion
(3) Multi-channel boost enterprise development, operation and management to improve the quality of efficiency
In 2019, the per capita management area of the top 500 enterprises is basically unchanged from the previous year, at 5,324.82 square meters. Per capita output, revenue generating capacity per unit area and per capita net profit were 135,600 yuan, 25.48 yuan and 11,900 yuan, respectively, an increase of 6.57%, 6.94% and 17.41% from the previous year, a significant improvement.
Figure 23 Distribution of Operational Efficiency Indicators of the Top 500 Enterprises in 2018-2019
The improvement of operational efficiency of the leading enterprises is more obvious. the per capita management area, per capita output and per capita net profit of the Top 100 enterprises in 2019 are 6496.41 square meters, $155,300 and $15,900, respectively, which are higher than the values of the Top 500 enterprises.
Figure 24 Distribution of Operational Efficiency Indicators of the Top 100 Enterprises, 2010-2019
01 Directly or indirectly providing more than three million jobs
Labor intensity is still high
In 2019, the number of employees in the Top 500 enterprises was 2.512 million, up 12.91% year-on-year, and 960,700 outsourced workers, up 8.42% from the previous year, the top 500 companies directly or indirectly provided 3,472,700 jobs.
Figure 25 Distribution of Employee Personnel and Outsourcing Personnel of the Top 500 Enterprises in 2019
The industry is still highly labor-intensive, with the number of personnel in basic positions accounting for nearly 90%. The top 500 enterprises have 346,300 operational managers, up 13.75% year-on-year, accounting for 13.78% of the total number of employees; the number of operators reached 2,165,700, up 12.78% from the previous year, accounting for 86.22% of the employees.
Figure 26 Job Composition of Employees in the Top 500 Enterprises in 2019
Through moderate outsourcing, property service enterprises to a certain extent achieve operational cost reduction and efficiency, while outsourcing basic property services is more conducive to the provision of specialized and refined property services to owners.In 2019, the number of outsourcing inputs in the Top 500 enterprises is 960,700, accounting for the first-line 30.73% of the total number of employees.
Figure 27 Distribution of outsourcing personnel share of the top 500 companies in 2019
02 The share of bachelor's degree, master's degree and doctoral degree is still less than 10%, and high-quality talents are still scarce
In 2019, in the educational composition of the employees of the top 500 companies, there are relatively few highly educated employees, and the share of bachelor's degree, master's degree and doctoral degree, PhD students still account for less than 10% of the total.
Figure 28 Educational Composition of Employees in the Top 500 Enterprises in 2018-2019
03 Wide Differences in Salary Levels, Head Enterprises Getting Better Treatment
There are large differences in annual per capita wages for different positions, and the annual per capita wages of the Top 100 enterprises are generally higher than those of the Top 500 enterprises.
Table 2 Annual per capita salary levels of employees in various positions in the top 100 and 500 enterprises in 2019
01 Quick response to hold fast to epidemic prevention and control, and brand services are y rooted in people's hearts
In order to do a good job of preventing and controlling epidemics, many property service enterprises reacted quickly, quickly activated the emergency plan, set up epidemic prevention teams, prepared The company's first step was to establish an anti-epidemic team, prepare guidelines for anti-epidemic prevention and control work, carry out anti-epidemic training, strictly control foreign personnel, strengthen staff management, and increase the frequency of elimination of public **** area. Numerous property people work overtime, stick to their posts, appease the owners, do a good job of defense measures, and comprehensively fight the epidemic prevention and control blocking war.
Figure 29 Work done by property service enterprises during the epidemic prevention and control
02 Focus on service quality, the average value of overall owner satisfaction is 92.18
In 2019, the top 500 enterprises carried out a full-spectrum of owner surveys by commissioning a third party or on their own, and the average value of overall owner satisfaction was 92.18 ,. Owner satisfaction remains high.
Figure 30 Indicators of Owner Survey and Owner Satisfaction of the Top 500 Enterprises
03 Property Fee Levels Vary Widely, Collection Rates Remain High
In 2019, the average level of property fee of the Top 500 enterprises was RMB 3.09/(square meter-month). Among them, the level of residential property fee is 2.11 yuan / (square meter - month), and the level of property fee of non-residential property business is 4.98 yuan / (square meter - month). The property fee level of non-residential property is generally higher than that of residential property, and it is relatively easy to raise prices, so there is more room for future development. At the same time, the average property fee level of all sectors in first-tier cities is much higher than that in second-tier and third- and fourth-tier cities, and the average property fee level of all sectors in second-tier cities is significantly higher than that in third- and fourth-tier cities.
Figure 31 Distribution of Average Property Service Fee Levels by Segment for the Top 500 Enterprises in 2019
Property enterprises win the trust of owners by building quality services, which promotes a high collection rate. Property service enterprises focus on the needs of owners, provide owners with high-quality property services, and emphasize brand building. high-quality property services improve owners' satisfaction while increasing the collection rate of property fees. in 2019, the average collection rate of property fees of the top 500 enterprises was 94.93%.
Figure 32 Collection rate of property fees of different property types of the top 500 enterprises in 2019
04 Different levels of property services in different regions, with rich multi-industry layouts
In terms of charging methods, the charging mode of property service fees of property service enterprises is still dominated by the lump-sum system of charges, with the lump-sum system of charging modes accounting for The percentage is 87.92% and 12.08% for the honorarium system.
Chart 33: Percentage of property fee charging mode of the top 500 enterprises
In terms of the establishment of owners' committees, 14.57% of the projects in the sample have set up owners' committees, while 83.60% of the projects have not set up owners' committees and 1.83% of the projects have owners' committees in the process of preparation.
Chart 34: Establishment of Owners' Committees in Projects Managed by Top 500 Enterprises
The Top 500 enterprises have been actively playing the role of demonstration and leadership of the head enterprises, and playing an important role in epidemic prevention and control, stabilizing and promoting employment, poverty alleviation, tax payment, and donations, etc., and shouldering an important social responsibility and mission.
Figure 35: Role of Top 500 Companies in Undertaking Social Responsibility
Opportunity Period for the Development of the Property Management Industry
The property management industry has ushered in a period of opportunity for its development against the backdrop of favorable policies, iterative technology, and the general pursuit of a better life. It is expected that the property service enterprises in the industry status, management mode layout, diversified services, capital market, technology application and brand services and other areas have a major breakthrough, the industry leader gradually appeared.