Heavy ｜ TOP50 Research Report of Listed Property Enterprises in China in 2020
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On May 28th, 2020, the research results of "Top 100 Listed Property Enterprises in China in 2020" sponsored by Yihan Think Tank, Jiahe Jiaye Property Service Research Institute and Tianwu Yunsuan were officially released.
2020 China listed property enterprise TOP50
Top Ten Property Enterprises in China in Investment Value in 2020
Top 10 Capital Attention of China Property Enterprises in 2020
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Get the full version of the 2020 China Top 100 Listed Property Enterprises Research Report.
List interpretation
I. Business operation
The camp of listed companies on the main board continued to expand.
The revenue of the plate is nearly 70 billion yuan.
Since 2018, the property industry has been in the boom of listing, and the number of property companies listed in Hong Kong stocks and A shares has surged, and many other property companies are actively benchmarking capital; In the booming stage of capitalization for more than two years, the growth ability, profitability and operational ability of the property industry have been greatly improved.
Small and medium-sized enterprises have withdrawn from the market, and listed enterprises in Hong Kong have surged.
In 2017-2019, the number of listed property companies on the three financing platforms of Hong Kong Stock Exchange, Shanghai and Shenzhen Stock Exchanges and small and medium-sized board fluctuated in the range of 63-65, but the overall situation did not show great fluctuation; However, in terms of sub-sectors, the camp of H-share listed property companies has shown a rapid expansion trend. The scale of listed companies has expanded from 6 in 2017 to 21 at the end of April 2020, and Jianye New Life was listed in Hong Kong on May 15th.
The A-share market has not shown a rapid growth momentum due to the strict control of related party transactions of enterprises and the long time period of listing, but the overall number of listed enterprises has shown a steady upward trend.
In sharp contrast to the rapid expansion of HA listed property companies, the number of small and medium-sized listed property companies is rapidly declining. In 2019 alone, 12 new third board property companies delisted from the new third board market. For example, Kaiyuan Property terminated its listing on March 24, 2020, and many other property companies proposed plans to withdraw from the new third board market.
Source: Jiahe Family Business
The revenue and profit of material enterprises have doubled, and the overall operating data is bright.
In 2019, China’s listed property companies showed high growth. At present, the overall operating income of 64 listed property companies on the board was 69.62 billion yuan, up 36.6% year-on-year, up 0.7 percentage points from 2018. The net profit of the sector was 8.37 billion yuan, a year-on-year increase of 35%; The overall gross profit of the sector was 17.89 billion yuan, and the growth rate was the same as that of 2018, which was 39.3%.
Source of data: wind, Jiahe Jiaye
The rapid improvement of the operating income and profitability of the property sector is highly correlated with the rapid improvement of the service scale of various enterprises. In the current stage of "large-scale" development of the property industry, the blessing of capital will expand the scale of property enterprises and reserve growth potential, and will also play a positive role in promoting enterprises’ income generation.
The growth of the plate is outstanding, and the growth rate of income and scale exceeds 30%
The total operating income of 64 listed property companies in 2019 was nearly 70 billion yuan, of which the total operating income of 25 listed property companies on the Shanghai and Shenzhen Stock Exchanges and the Hong Kong Stock Exchange exceeded 62 billion yuan, up 39% year-on-year, and the growth rate was 1.6 percentage points higher than that in 2018; The total assets of 25 HA listed property companies in 2019 were 90.38 billion yuan, a year-on-year increase of 40.7%, an increase of 13.2 percentage points over 2018; The net assets were 45.58 billion yuan, a year-on-year increase of 75.2%, and the growth rate increased by 13.2 percentage points.
Source of data: prospectus and annual report.
At present, the overall competition pattern of the property industry is relatively loose, and the market-oriented development of property enterprises is still in the early stage; In addition, in recent three years, the property industry is in the stage of rapid capital influx, and enterprises will carry out relatively big business changes and implement relatively large-scale market expansion strategies in the early stage of docking capital, so that enterprises can present high investment value and good corporate image when facing the capital market.
The income structure was adjusted, and the high-income business was focused on development.
At present, the main income-generating business of property enterprises includes three aspects: property management services, owner value-added services and non-owner value-added services. From the perspective of business structure, the diversity of the overall business structure of property enterprises is strengthening, and the dependence on traditional property management services is decreasing, while property extension services create greater service value.
Source of data: prospectus and annual report.
Compared with the traditional operation mode of maintaining the expenses of property enterprises only by collecting property fees, property enterprises are actively exploring community-related value-added services in the new era, especially around owners’ community life services, community asset services, housekeeping services, community property agents, home improvement services and so on.
From the data point of view, owner’s value-added service is the fastest growing business among the three business lines, with a compound annual growth rate of 85.3% from 2017 to 2019; Followed by non-owner value-added services, with a compound growth rate of 57.7% in three years; The income from property management service business is the slowest among the three businesses, with an increase of only 33.3%.
Source: Jiahe Family Business
On the whole, the diversified business of property enterprises has become more and more abundant, the business and income structure has been gradually optimized and improved, and the overall anti-risk ability of the industry has been enhanced. Although the compound growth rate of property management service income is not as good as that of owner value-added services and non-owner value-added services, it is undeniable that property management service business will still be the main source of income for property enterprises in the future.
Capital helps scale growth, and the speed of industry differentiation intensifies.
As an important indicator to measure the status of property enterprises, scale has always attracted the attention of industries and enterprises. At present, the property industry is in the initial stage of accelerated capital intervention. Combined with the industry background of staking, capital blessing has boosted the speed of enterprise scale integration.
In terms of the use of funds, the funds raised by listed property companies are mostly used for market acquisition and merger and other related businesses, such as Xingye IOT, Yexing Group (Hongkun Property) and Jianye New Life, which just went public in 2020. All three companies will use more than 65% of the financing amount for geographical expansion, acquisition and merger to expand the service scale.
Source: Prospectus
Among the 22 H-share listed property companies, the total area under management at the end of 2019 was 2.04 billion square meters, an increase of 32.6% compared with that in 2018. Although the growth rate in 2018 dropped, the overall growth rate still exceeded 30%. The rapidly expanding scale can bring continuous growth source power for enterprises to generate income.
Source of data: prospectus and annual report.
The operating income of property enterprises is highly correlated with the area under management. According to the data of management scale and operating income of 22 H-share listed property enterprises in 2017-2019, the correlation coefficient between the two indicators is as high as 99.5%, that is, the larger the management scale, the higher the income that enterprises can create, which can also explain why listed property enterprises spend a lot of money on market expansion.
Table: Correlation between operating income and area under management of 22 H-share property enterprises
Source of data: annual report of enterprises, Jiahe family business.
At present, the pursuit of scale by property enterprises is similar to that of the early real estate market, pursuing scale benefits and hoping to occupy the absolute right to speak before the market is fully developed; Because scale is the cornerstone for property enterprises to create service value, the high growth of scale can ensure the high growth of enterprise income and the benign development of other business indicators to a certain extent, so that there can be more development opportunities in the capital market, and then bring greater investment income to investors. The growth of scale can also provide a huge business demand flow pool for the development of many innovative value-added services of property enterprises.
Second, profitability
The industry’s short-term asset yield has declined.
Higher service cost affects profit realization.
In 2019, the operating income and net profit of TOP50, a listed property company in China, were 68.423 billion yuan and 8.272 billion yuan, respectively, up by 37.2% and 37.1% year-on-year. The improvement of operating income and net profit was mainly due to the improvement of the overall management scale of property companies in 2019 and the successive development of diversified value-added businesses.
From the echelon point of view, some head listed property companies have many first-Mover advantages in scale expansion and diversified business development because of their relatively early listing time and relatively large financing scale, and their overall profitability is growing faster than that of small and medium-sized property companies. It is expected that the head listed property companies will have a squeezing effect on the market in 2020, and their growth rate is bound to be rapid.
The assets of property enterprises have accumulated rapidly, and the ROE level has dropped in the short term.
In terms of relative profitability, the overall average return on equity of the industry in 2019 showed a downward trend compared with that in 2018. Among the 25 H/A-share listed property companies, nearly 80% of the companies’ ROE level declined.
Source: wind
The factors affecting ROE mainly include two aspects: after-tax profit and net assets. In the business model, property companies are service-oriented industries, and the overall labor expenditure accounts for a relatively large proportion. Moreover, the overall income structure and profit model have not changed much between 2018 and 2019, but the net interest rate has decreased by 1.2 percentage points compared with 2018.
After the listing of property enterprises, a large amount of funds are used for scale expansion, which makes the total assets of enterprises accumulate rapidly and affects the net assets of ROE. Taking the data of 25 enterprises as an example, the total net assets of enterprises in 2019 was 45.579 billion yuan, a year-on-year increase of 75.2%, an increase of 13 percentage points over the growth rate in 2018.
Take the data of 10 property companies listed in 2019 as an example: the net profit of 10 property companies ranges from-78.1% to 108.4%, while the net assets range from 63.8% to 736.9%, and ROE= net profit/net assets. With the rapid accumulation of net assets, the net profit is limited by the industry profit model, which will not be greatly improved, which will lead to ROE.
Source of data: wind, Jiahe Jiaye
At present, the property industry is in the stage of accelerated scale integration and rapid accumulation of assets, but the profit model of the property industry will not change dramatically in the short term, and the ROE level of the property industry will still show a downward trend in the future.
The net interest rate of the industry has declined, and the high service cost has affected the profit realization.
In 2019, the operating net profit of 25 H/A-share listed property companies was 7.714 billion yuan, up about 36.0% year-on-year, and the overall net interest rate was about 12.3%, down 0.3 percentage points from 2018. The whole camp of the listed property sector is expanding, but because the newly listed enterprises are mainly small and medium-sized enterprises, in the short term, the net profit of the newly listed property enterprises will be swallowed up by the listing expenses, which will lead to a decline in the overall net profit level.
Source: wind
Looking back from the income statement of the property enterprise, there are many factors that affect the net profit level of the property enterprise, among which the service/sales cost, operating expenses and taxes and fees of the enterprise have the greatest influence on the net profit level of the enterprise.
As mentioned in the previous section, as a service-oriented enterprise, property enterprises have the pain point of all labor-intensive industries: high labor costs. In 2019, the labor cost of the industry accounted for more than 60% of the total service cost. Taking Country Garden Service, Ya Life and Poly Property as examples, the employee welfare expenses of enterprises accounted for 61.3%, 66.6% and 62.5% of the total cost respectively. With the service fundamentals of property service enterprises expanding after listing, the service management radius of enterprises has been lengthened, and the overall service quality supervision has become more difficult. In order to ensure the service quality, enterprises need to increase the input of employees. Although the whole property industry is transforming and upgrading from traditional property service to modern property service industry, the overall modernization level of the industry is still low, and the overall service cost of enterprises will not drop significantly in a short time.
The three-fee rate continues to decline, and the profitability is expected to continue to expand.
In 2019, the three-fee rate of representative listed property companies was about 11.57%, which was 1 percentage point lower than that in 2018. From 2017 to 2019, the three-fee expense ratio of property enterprises continued to decline, indicating that the overall cost control ability of the industry has gradually improved, and the profitability of the industry is expected to continue to expand. Here, the three expenses refer to: sales expenses, management expenses and financial expenses, among which management expenses account for the highest proportion among the three expenses.
Source: wind
From 2017 to 2019, management fee rate, a property company, showed a year-on-year convergence trend in the range of 8%-11%, indicating that enterprises have improved their cost control. For example, Yongsheng Life Service, Kaisa Beauty and Country Garden Service have achieved remarkable results in management fee rate control. In 2019, the overall management fee rate decreased by about 4%, while small and medium-sized property companies such as Xinyuan Service, Xingye IOT and Hehong Service, which were newly listed in 2019, performed poorly.
In the past three years, the overall sales/service expense ratio and financial expense ratio of the property industry also showed a gradual convergence trend, with the overall floating range of 1.1%-1.4%; In 2019, the overall sales/service expense ratio of the industry was 0.9%, which was 0.02 percentage points lower than that of 2018. 75% of the enterprises’ sales/service expense ratio was below the industry average. Some third-party property companies, such as Clifford Life and Pujiang China, launched other businesses due to the decline in their income-generating ability in property management services, which led to an increase in their sales/service expense ratio.
In terms of the use of financial expenses, the financial expense ratio of the property sector dropped to 1.06% in 2019. As the property enterprises belong to the asset-light strategy industry, the biggest aspect of the use of funds is the expansion of scale. According to the financing use of listed property enterprises, the tendency of enterprises to borrow money is low, which makes the overall financial expense ratio low, such as Blu-ray Garbo Service, Poly Property, Country Garden Service and other enterprises; However, some enterprises have high financial expenses in the past two years. For example, the asset-liability ratio of Times Neighborhood is high, which leads to higher interest expenses of enterprises, which makes enterprises far higher than their peers in financial expenses.
Third, the capital market
Property stocks strengthened against the trend.
The concept of value investment appears
Jiahe Family Property Research Institute selected 14 H/A-share property enterprises as the constituent stocks of Jiahe Family Property Core Property Index according to the distribution plate, business layout, fundamentals and operating performance. The fundamental performance of the constituent stocks is as follows:
Note: Deadline: April 30, 2020;
Market value unit: 100 million yuan; H share price: HK$/share, A share price: RMB/share;
Currency conversion rate: HK$ 1 =0.9 yuan RMB.
Source of data: WIND, Jiahe Jiaye
From 2019 to the first quarter of 2020, the capital markets of A shares and Hong Kong stocks were shrouded in a shadow; The continuation of A shares is still in the bottom consolidation state after the stock market crash in 2018, and the Hong Kong stock market is also not optimistic under the impact of the international situation and various social events. In 2019, there were only 161 new shares issued by the Hong Kong Stock Exchange, which was 23% lower than the 208 shares issued in 2018. However, in the bleak macro environment, the property sector added 12 new members to the listing camp in 2019, and the overall increase showed a breakthrough trend in adversity. From January 2019 to April 2020, Jiahe Jiaye’s core property stock index rose by 262%, outperforming the Hang Seng Index by 264.0pc and the Shanghai and Shenzhen Index by 231.8pc.
Source of data: WIND, Jiahe family business arrangement
The market value camp of enterprises is divided, and Matthew effect appears.
Source: WIND
According to the classification of the total market value of listed enterprises, the enterprise camp can be divided into four categories:
1. Market value of over 60 billion yuan: Country Garden service;
2. Market value of 10 billion-60 billion: Ya Life, Poly Property, Greentown Service, China Merchants scrape up, Zhonghai Property, Yongsheng Life Service and Xincheng Yue Service (7 companies);
3. Market value of 5-10 billion: Blu-ray Garbo Service, Xindazheng, Times Neighborhood, Aoyuan Health, Color Life (5);
4. Less than 5 billion yuan: Kaisa Meihao, Binjiang Service, Nandu Property (603506, Share Bar), Xinyuan Service, Yincheng Life Service, Xingye IOT, Yexing Group, Pujiang China, Hehong Service, Blessing Life Service, and China-Austria Home (11);
According to the ranking of market value of property enterprises, an intuitive conclusion can be drawn: the status of property enterprises in rivers and lakes is closely related to the size of housing enterprises backed by them.
Country Garden Service, as the property enterprise with the highest market value in the industry at present, is split from Country Garden Group, the leading real estate industry, and enjoys the cool with its back against big trees. No matter the source of funds or projects, it is more developed than other property enterprises.
In the second kind of enterprise camp, all are property enterprises with the background of housing enterprises, and most of the housing enterprises backed by them belong to the head enterprises in the industry.
In the third kind of property camp, Blu-ray Garbo Service, Times Neighborhood and Aoyuan Health are fast-growing enterprises.
Independent three-way property enterprises such as Nandu Property, Pujiang China and China-Austria Home are all in the fourth camp. Although Pujiang China and China-Austria Home are pioneers of the listed property enterprise camp, it is still difficult for the total market value to exceed 1 billion after many years. Independent three-way property enterprises and small-scale property enterprises lack their own project resources, and they lack sufficient funds and brand support for large-scale mergers and acquisitions.
In the future, with the continuous expansion of the listing camp and the acceleration of the pace of major material enterprises, the development space left for such small and medium-sized enterprises will gradually decrease, and the competitive environment among enterprises will become more intense in the case of intensified polarization.
Property stocks went out of the independent market, and the share price of over 70% enterprises rose.
Note: Start time (the first day of listing for enterprises listed in 2020, and the first trading day in 2020 for enterprises listed before 2020) and end time (the last trading day in April 2020).
Source of data: WIND, Jiahe Jiaye
From January to April in 2020, there were 15 property enterprises. The top three property enterprises leading the whole industry were Yongsheng Life Service, Poly Property and China Shipping Property. From January to April, 2020, the overall property stocks ushered in a rising market. During the COVID-19 epidemic, the sense of responsibility displayed by property enterprises was fully affirmed by the society, the government and other aspects, and the government’s policy formulation, preferential reduction and exemption would be more inclined. Poly Property and China Shipping Property, as established central enterprises, took a relatively high proportion of public property and government property in the projects undertaken, with high income security.
Although the property management industry is gaining popularity, the profit-seeking nature of capital can still classify property enterprises. First of all, there are 13 property enterprises with an increase of more than 30%, all of which are backed by large and medium-sized housing enterprises, and there is no independent tripartite property enterprise; There are three property enterprises with a price increase of more than 20%. These property enterprises are mainly separated from independent tripartite property enterprises and small housing enterprises. In the future, as the tide of listing continues, the number of target enterprises for investors to choose will increase, and such enterprises with insufficient investment value will face a more embarrassing situation. Although they are the top listed enterprises, they will not enjoy the financial benefits of the open market and have to fulfill the obligations of listed enterprises.
Property stocks have a high P/E ratio and the investment value tends to be rational.
The P/E ratio is an important indicator to evaluate the investment value of enterprises. At present, the property management industry is on the rise, and the continuous optimism of capital promotes the P/E ratio of the property sector. At present, the average P/E ratio of the property sector is 36 times, much higher than that of the real estate sector. Among them, the highest P/E ratio is 96 times for China Merchants scrape up.
Source: wind
According to the average P/E ratio and development prospect of the property sector, property enterprises with P/E ratio above 20 times belong to the normal range, while those with P/E ratio below 20 times are dangerous. There are three property enterprises with P/E ratio below 10 times, namely Color Life, Blessing Life Service and China-Austria Home. These three property enterprises are small or independent tripartite property enterprises. As the first listed property enterprise, Color Life has the largest charge management area in the current listed property enterprise camp, but due to the special business strategy of Color Life, there are not many real benefits. At the moment when scale is king, the growth rate of color life’s management area ranks last in the listing camp.
On the whole, in the future, with the retreat of the listing boom, the logic of investment value will return to rationality, and the overall P/E ratio of the property management plate will inevitably fall; However, from the individual point of view, Matthew effect will be highlighted, and property enterprises with large housing enterprises will occupy more development space and market discourse power, while small property enterprises and some independent tripartite property enterprises will be eliminated or swallowed up by the market.
Jiahe family business seems that the help of capital will accelerate the development of head enterprises, and it has more advantages in undertaking large-scale projects and improving value-added services. In the future, listed enterprises with large-scale housing enterprises will develop better, and the Matthew effect of the industry will intensify, which will lead to the situation that the stronger the stronger, the weaker the out. Therefore, when faced with various difficulties, small housing enterprises or independent three-party property enterprises need to plan ahead, identify the service areas suitable for their own development, dig deep into the moat of enterprises, and avoid being eliminated by the industry.
In Jiahe’s view:
The help of capital will accelerate the development of head enterprises, and it will have more advantages in undertaking large-scale projects and upgrading value-added services. In the future, listed enterprises with large-scale housing enterprises will develop better, and the Matthew effect of the industry will intensify, which will lead to the situation that the stronger the stronger, the weaker the out. Therefore, when faced with various difficulties, small housing enterprises or independent three-party property enterprises need to plan ahead, identify the service areas suitable for their own development, dig deep into the moat of enterprises, and avoid being eliminated by the industry.
Fourth, quality construction
Increase investment in science and technology and standardization construction.
Promote efficient community management.
In the era of mobile internet, all walks of life are exploring new operating modes, and the property service industry is also facing the adjustment of operating modes. Judging from Jiahe Jiaye’s monitoring of the industry, the property industry is constantly trying intelligent technology empowerment service experience and enterprise operation management such as 5G, Internet of Things and artificial intelligence to help enterprises develop efficiently for a long time. In 2019, listed companies took advantage of capital and increased investment in high and new technologies, with remarkable results.
For example, Country Garden Service realizes the landing of multiple "AI+ communities"; Blu-ray Garbo service intelligently transforms old communities; Listed enterprises such as China Shipping Property, Color Life and Greentown Service cooperate with JD.COM, 360 and Shangtang Technology to further improve their operation level in the smart community.
Science and technology investment accounts for more than 25% in the financing of listed enterprises.
In 2019, the property industry ushered in a small climax of listing, and more property enterprises went to the capital market, and strengthened the intelligent construction of services by means of capital power. Judging from the distribution of the financing plan of listed enterprises in recent years, the investment in intelligent IOT accounts for over 25.2%, making it the second largest business of listed enterprises’ financing expenditure, second only to enterprises’ investment in scale expansion.
Source: Prospectus
Enterprises such as Xincheng Yue, Yongsheng Life Service, Aoyuan Health and Hehong Service have clearly put forward the concepts of "intelligent service system" and "smart/capable community" in their prospectus and annual report. In the future, with the increasingly clear concept of intelligent IOT, property companies will pay more attention to it, and their service quality will go to a higher stage.
The service efficiency of material enterprises has been significantly improved.
Thanks to sufficient financial support, the resource integration ability of listed property enterprises has been improved, and enterprises have applied science and technology to community management scenarios to improve management efficiency and maximize corporate interests.
At present, listed property enterprises mainly focus on application scenarios such as intelligent security, intelligent access control, intelligent parking and intelligent monitoring by using technology for community management services, and the application of these scenarios plays an important role in improving employee service efficiency.
Table: Listed enterprises use technology to provide community management services.
Source: Jiahe Family Business
Judging from the performance of listed enterprises in 2019, Xingye IOT achieved a substantial increase in per capita output value, reaching 76.72 yuan/square meter among the 25 listed enterprises, which is closely related to the enterprise’s focus on the operation of intelligent equipment and the related business and personnel split in the early stage of listing; In addition, Xinyuan Service, Country Garden Service and Blu-ray Garbo Service continue to exert their efforts in the intelligent IOT, and the per capita efficiency of enterprises also shows an upward trend in 2019.
Source of data: annual report of enterprises, Jiahe family business.
As a brand-new service model under the new technology, smart community can optimize the enterprise product and service system and improve the quality of community service. On the other hand, it has important advantages in implementing innovative services and expanding diversified services, such as community health testing, smart home and other diversified and customized service needs, helping community service enterprises to seize the opportunities in advance in the fierce market competition.
Standardization construction: enterprise management is more standardized and developing in the direction of systematization.
At present, the property management industry is undergoing a transition from extensive development to standardized management. There are many problems in property companies, such as imperfect internal rules and regulations, imperfect organizational structure and inadequate staff training mechanism, which directly affect the service quality of property companies. Listed property companies are relatively more systematic and standardized in management system because they need to disclose the relevant data of business operations to the public on a regular basis.
In terms of rules and regulations, enterprises such as Poly Property, China Shipping Property and Blu-ray Garbo Service timely updated the epidemic prevention and control rules and manuals during the epidemic period, effectively ensuring the implementation of joint prevention and control measures and improving service quality;
In terms of organizational structure, Nandu Property, Xindazheng, Aoyuan Health and other enterprises have designed an efficient organizational structure according to the enterprise development strategy and on the premise of ensuring the maximum satisfaction of the service needs of the owners.
In terms of staff training, Country Garden Service, Blu-ray Garbo Service and other listed companies have set up management colleges to train their employees professionally and contribute to the development of enterprises.
Figure: Administrative characteristics of listed property enterprises
With the continuous expansion of the camp of listed property enterprises, more property enterprises will improve and standardize their own administrative management systems, and property management will continue to develop in the direction of sound system and mature operation; With the continuous improvement of the administrative management system, it will also help the material enterprises to improve their service quality and better meet the owners’ better life and service needs.
V. Social responsibility
Actively fulfill social responsibilities
Help the country get rid of poverty in an all-round way
As a new industry, China’s property management industry has become an important industry to promote national economic development and increase employment opportunities after nearly 40 years of development. At present, there are more than 230,000 property management enterprises in China with more than 3 million employees. Judging from the coverage, permeability and relevance of the industry, China’s property management industry not only has the conditions or ability to fulfill social responsibilities, but also actively shoulders the mission of fulfilling social responsibilities.
The social responsibility of a property enterprise is to create a good working environment for employees, protect their legitimate rights and interests, and form a harmonious working atmosphere. From the outside of the enterprise, pay taxes according to law, safeguard the rights and interests of owners, create jobs and follow the national policies to implement appropriate policies and strategies. Mainly from the legal level, employee level, environmental level three levels to show the social responsibility of property enterprises.
Legal level:
In 2019, the total income tax paid by 25 listed property enterprises exceeded 2.4 billion yuan, and seven property enterprises paid more than 100 million yuan, namely Elegant Life Service, Country Garden Service, China Shipping Property, Poly Property, Colorful Life, Greentown Service and China Merchants scrape up. Among them, three listed property enterprises with state background paid more than 100 million yuan. The total tax payment of seven "100 million taxpayers" is about 1.65 billion yuan, accounting for 68.6% of the tax payment of all listed property enterprises.
Table: Tax amount of listed properties in 2019
Source: wind
Employee level:
The social responsibility of property management enterprises at the employee level is mainly reflected in creating a large number of jobs. With the advancement of urbanization, a large number of labor force flows into cities, which intensifies the employment competition situation, and the increasingly serious employment problem increases the burden on the government. The property management industry itself is a labor-intensive industry, so it can make great contributions to providing employment and serving the society.
Property enterprises can absorb a large number of relatively vulnerable groups with older age and lower education in basic positions such as cleaning, greening, security and simple maintenance services, which on the one hand reduces the labor cost of enterprises and reduces the social burden; On the other hand, it also plays a very important role in resettling floating population and reducing social instability; At the same time, property companies will actively provide these employees with opportunities for learning and training, improve the comprehensive competitive strength of relatively disadvantaged groups, and earnestly fulfill their corporate social responsibilities.
The sudden epidemic situation has aggravated the social employment problem. In order to solve the employment problem, the state launched the employment policy of "Spring Blossoms and National Employment Action". Poly Property actively responded to the call of the state, contributed to the steady employment, and opened thousands of comprehensive management and project management positions to job seekers and fresh graduates from all walks of life through online recruitment. Greentown Service launched the "Ten Million Recruitment Plan" in February, recruiting for 1,000 key universities, training 1,000 project managers, and sowing hope in a special period.
Environmental level:
Environmental responsibility includes social environmental responsibility and natural environmental responsibility, which is the highest level of corporate social responsibility. Environmental responsibility mainly refers to the contribution of enterprises to environmental protection and social development; Contribution to solving natural and social problems; And its contribution to social and natural public welfare undertakings.
The environmental responsibility of the property management industry is mainly the word "harmony", which is the harmony between people, between man and nature, between communities and the whole society. Property management enterprises should play an active role in the construction of a harmonious community and society to fulfill their environmental responsibilities. For sudden natural and social events, property management companies should respond quickly, set an example, take the initiative to organize, coordinate, rescue and deal with the aftermath, and actively fulfill their social responsibilities.
During the outbreak of the epidemic in early 2020, property enterprises, as the forefront of residents’ daily life, quickly put themselves into epidemic prevention and control, set up headquarters and regional epidemic prevention teams in succession, actively assumed social responsibilities and implemented relevant national epidemic prevention policies, and made great contributions to preventing the continuous spread of pneumonia in novel coronavirus, ensuring the health of community owners and meeting the normal living needs of owners at home.
At the end of the epidemic, the National Development and Reform Commission and 28 departments jointly issued the "Action Plan of 2020" and various related policies to help small and medium-sized enterprises return to work and resume production. Many property companies have responded to the call and deployed practical actions. Aoyuan Health launched the action of "Vegetables give love to what you think" in the community of Aoyuan throughout the country, and joined forces with Brother Group to purchase the unsalable products of poor farmers and deliver them to Aoyuan family members at home for free, so as to establish a "green love bridge" between farmers and communities, solve the urgent needs of poor farmers and help them get rid of poverty with practical actions. Country Garden Service launched the "Public-Enterprise Sharing Plan" to help the development of small and medium-sized enterprises, and launched nine public-enterprise sharing services from the three dimensions of promoting, marketing and providing venues by using scene community resources to jointly create a new ecology for community development.
As a new force in the tertiary industry, property enterprises directly participate in the improvement of the social environment, create a modern and civilized lifestyle for the majority of owners, assume more responsibilities for the society, strive to win the battle against poverty in an all-round way in 2020, and contribute more to the construction of a harmonious society.
This article was first published on WeChat WeChat official account: Yihan Think Tank. The content of the article belongs to the author’s personal opinion and does not represent Hexun.com’s position. Investors should operate accordingly, at their own risk.