(Yicai Global) April 4 -- Stiffening regulation and control of China’s real estate last has cast the performance of real estate intermediaries into the spotlight.
The only property brokerage firm listed on the A-share market, Shenzhen Worldunion Properties Consultancy Inc.’s operating data may reflect the overall sector’s operations.
Worldunion attained operating revenue of CNY8.2 billion (USD1.3 billion) last year, up 31 percent from the year before. Net profit was CNY1 billion, an increase of 34.3 percent.
Income from real estate transactions was CNY3.8 billion, up 8 percent, making up 47.4 percent of total revenue; internet-related business income was CNY2.3 billion, climbing61.8 percent, making up 29.1 percent of the total; asset management service income was CNY1.17 billion, up 46.1 percent, making up 14.5 percent; while income from financial services was CNY725 million, climbing 62.3 percent and accounting for 9 percent.
The property brokerage's revenue growth last year mainly came from burgeoning internet-related businesses, the data show.
The profitability of long-term rental apartments is also a focus of the real estate sector. Worldunion’s asset management services business last year posted a loss of CNY184 million, down fivefold from the previous year, Yicai Global has discovered.
The company also explored new businesses such as decoration and rental services for existing properties. As operating costs were still increasing in the initial period, such business segments logged a loss of CNY96 million, down 94 percent from the year before.
"According to the company's internal estimates, it will generally be profitable in about 4.5 years,” Zhu Min, Worldunion director and general manager, told Yicai Global. The company launched its first long-term rental apartment business in 2015. “The income from the apartment business is expected to become stable income in the next few years,” Zhu added.
Worldunion transacted over 100,000 long-term rentals by the end of last year. It operated and managed about 35,000 units with an average occupancy rate of 81 percent. The apartment management business generated income of CNY208 million, up 388 percent from the year before, making up 24.5 percent of its asset management service business.