In recent years, with the deep adjustment of the real estate industry, the property industry has also ushered in a series of new changes. Pursuing quality growth has become one of the key strategies for enterprises to cope with the new environment. Property companies have also begun to return to their service roots, focusing on improving service quality to meet customer needs and ensure continuous steady development in the downturn cycle.

In this new cycle of industry development, there is no shortage of outstanding property companies that have shown a benchmark role. C&D Property is one of them. Recently, the company handed over an impressive report card:

Financial reports show that in 2023, C&D Property achieved operating income of 3,569 billion yuan, an increase of 55.8% over the previous year. Net profit attributable to mother was 467 million yuan, an increase of 89.0% year over year. At the same time, the scale of the company reached a new level. By the end of 23, the contract area of C&D property had broken through the 100 million square meter mark, an increase of 12.4% over the previous year, and the area under management also reached 61.45 million square meters, an increase of 33.0% over the previous year.

Furthermore, the company did not forget to actively give back to shareholders. In 2023, it declared a dividend of HK$0.26 per share (including a special dividend of HK$0.1 for the 3rd year of listing). The dividend rate reached 71%. Based on the closing price of April 26, the dividend rate exceeded 8%.

With steady growth and excellent financial performance, C&D Property has shown the characteristics of crossing the economic cycle. Fundamentally, the core is that on the one hand, the company has built a steady growth capacity with quality, and on the other hand, it is its ability to be customer-centered and continuously provide highly reputable quality services.

1. Build a core driver that crosses the cycle with quality and steady growth capabilities

Looking at it now, high-quality development has become the “main theme” of the industry. Property companies are no longer blindly chasing scale, but are paying more attention to qualitative growth. How to guarantee the “quality” of growth will be the key for enterprises to achieve sustainable development and overcome the cycle in the current downturn cycle.

For C&D Property, since its launch in late 2020, it has continued to achieve rapid, qualitative growth, which is inseparable from the parent company's protection and commitment to the quality of external development:

1. Build and develop real estate backed by high-quality housing enterprises to establish a basic market for growth

As a member company of the Fortune 500 Xiamen C&D Group and a subsidiary of C&D Real Estate, one of the top 50 Chinese real estate development companies, C&D Property has rich resource endowments, which has established a basic market for growth:

On the one hand, its holding parent company C&D International (a real estate listing platform owned by C&D Real Estate) has achieved rapid sales growth in the past few years, contributing a stable and high-quality source of housing projects to C&D Properties. On the other hand, C&D International has achieved high-quality delivery through years of continuous quality refinement and improvement and established a “9A” delivery management system, which has also reduced the late maintenance costs of the property. At the same time, C&D Real Estate's brand reputation can also help C&D Property to meet market challenges and open up new opportunities for expansion.

2. Adhere to the principle of “quality” outreach and seek sustainable and healthy development

In the past year, C&D Property achieved “quality” expansion growth through “urban focus, structural optimization, and business format breakthroughs”:

(1) Focus on the expansion of Tier 1, 2 and Tier 3 cities:First-tier, second-tier, and strongest third-tier cities accounted for 93% of the contract amount signed by the company in the current year. Through urban focus, C&D Property continuously strengthened the management concentration of key cities and increased the scale effect.

(2) Continuously promote structural optimization “from housing to Africa”: Through the adjustment of the “from housing to Africa” expansion strategy, C&D Property extends its services to non-residential sectors with more diverse business formats, including office buildings, industrial parks, government buildings and public facilities, hospitals and schools, etc., to diversify the property management portfolio. In the past year, the share of contracts signed by C&D Properties for non-residential projects increased significantly, approaching 50% for the first time since listing, showing a good trend of structural adjustment and diversification.

(3) Actively explore new business opportunities:Previously, the company established a joint venture with Xiamen Xin'an Village Joint Stock Economic Cooperative to undertake “Big Property Management” in Xin'an Village, Haicang, Xiamen. Through the construction of this Xin'an Village benchmark project, the company has taken the first step towards the “big property management field”, which is expected to broaden the path for the company's future expansion and increase the possibility of new business formats.

It can be said that in terms of external development, C&D Property has always insisted on “being one in one” for many years, and has taken every expansion opportunity seriously. Through continuous and qualitative expansion, it has gradually improved its profitability, ensured the company's steady growth, and laid a solid foundation for future business development.

2. Build a high reputation for quality service capabilities and build a virtuous cycle through a cycle

Since its establishment, C&D Property has always regarded customer satisfaction as the lifeblood of the enterprise, and has continued to provide highly reputable services with the mission of “creating a better living space and leading a better life”. The company is committed to building a positive business ecological cycle: “quality improvement -> customer satisfaction -> increase revenue and profit -> further quality improvement” to achieve healthy growth and cross the economic cycle.

Specifically, C&D Properties' high reputation for quality service capabilities is inseparable from the unique Chinese service created by the company and the market-based mechanism in line with C&D Group:

1. Create high-quality characteristic new Chinese service

C&D property is surrounded by”Good neighborhood, good care, good season, good stewardThe “service concept” has carried out a series of activities and service initiatives, such as actions to love the family, actions to revitalize the people, actions to benefit the people, and 24 solar energy activities. These activities cover all aspects, from cleaning to maintenance of equipment and facilities, to home convenience and community activities, all dedicated to improving the quality of life and satisfaction of customers.

Picture: C&D Property's 24 solar term special events

At the same time, the company also uses a “micro-innovation” special merit evaluation mechanism to stimulate employees' progressive innovation and improve service quality and management level. In addition, C&D Property also actively visits and collects owners' comments to ensure timely handling of online and offline customer complaints, so as to further enhance customer satisfaction and service quality.

The results of this series of initiatives are clearly reflected in customer satisfaction and industry recognition: in 2023, C&D Property Service's property service satisfaction reached 93 points, maintaining the industry's benchmark level.

2. Adhere to market-based mechanisms to stimulate employee vitality

C&D Property not only focuses on service upgrades, but also follows C&D's market-based management and incentive mechanism: In 2023, C&D Property implemented a new employee equity incentive plan. This plan focuses on frontline employees, such as project managers, case managers, area managers, etc., which effectively stimulates the enthusiasm and sense of responsibility of frontline employees, and lays a good foundation for the company's high-quality service and sustainable development.

III. Concluding Remarks

Taken together, the steady growth capacity of quality enables the company to continue to achieve good performance in market competition, while the highly reputable quality service capabilities ensure the company's image and reputation in the minds of customers, thereby enhancing customer loyalty and providing a solid foundation for the long-term development of C&D Property. These two factors complement each other and together build the company's core competitive advantage.

Based on this, it also pushes C&D Property to continue to stand out in the industry and continue to cross the market cycle.