Vanke Cloud made a profit of 2.3 billion last year, and its major shareholder Va

In 2023, Yun of All Things (2602.HK) achieved double-digit growth in both revenue and net profit, and decided on a generous dividend distribution.

On March 22, Yun of All Things released its 2023 financial performance and held a performance briefing. The performance announcement showed that in 2023, Yun of All Things achieved a total operating income of 33.18 billion yuan, a year-on-year increase of 10.22%; core net profit was 2.34 billion yuan, a year-on-year increase of 29.8%; and the profit attributable to shareholders was 1.955 billion yuan, a year-on-year increase of 29.31%.

Yun of All Things has a relatively abundant cash and cash equivalents, with cash and cash equivalents amounting to 15.57 billion yuan as of the end of the period, and the cash surplus coverage multiple is 1.3 times.

Based on such revenue performance, the board of directors suggested distributing profits to shareholders at 55% of the 2023 core net profit, with a full-year profit distribution of 1.092 yuan per share. The reporter noticed that compared to the dividend payout ratio of less than 20% in 2022, Yun of All Things' dividend payout ratio has risen to 46.95% in 2023. "A high dividend payout ratio represents the company's ability to earn cash and its willingness to grow together with shareholders," said Zhu Baoquan, the chairman of Yun of All Things, at the performance meeting on the afternoon of March 22.

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As of the end of June 2023, the major shareholder Vanke Group and its series of affiliated companies own approximately 56.3% of the equity of Yun of All Things. Based on this calculation, Vanke Group received a dividend of about 720 million yuan through Yun of All Things in 2023.

Regarding the future dividend strategy, the management of Yun of All Things stated that the company's future revenue and core net profit should maintain a double-digit growth rate. Property management companies have good cash flow. If there are no other significant capital expenditures, a high dividend payout ratio can be achieved. Therefore, it is highly likely that the company will maintain a 55% dividend payout ratio of core net profit in 2024.

At the performance meeting, a reporter asked whether the recent public opinion events of the parent company Vanke Group would affect the development of Yun of All Things. In response, Zhu Baoquan, the chairman of Yun of All Things, stated that currently, property management companies, including Yun of All Things, and companies like Beike, have not yet established an independent market trend and are affected by the real estate industry. The number of real estate development projects will eventually decrease, but the demand for property services in real estate still exists, and the renewal rate in the property industry is around 85%.

So, what is the current independence of Yun of All Things?

According to the annual report, the main business of Yun of All Things includes three major segments: community space residential consumption services, business and urban space comprehensive services, AIoT and BPaaS solution services. The first two segments contribute 90% of the revenue and 80% of the gross profit to Yun of All Things.

Yun of All Things stated that in 2023, the proportion of related party transaction income from Vanke Group has continued to decline from 19.2% in 2021 to 13.5% in 2023. If all development businesses (including newly delivered projects) are excluded, the absolute value impact on revenue is -17.5%.To further clarify the company's reduced dependence on development business, data released by Wanwu Cloud shows that if the developer business is excluded, the company's revenue growth rate would reach 14.5%, which is faster than the current growth rate. The gross profit growth rate after exclusion would also reach 23.6%, higher than the current growth rate.

Regarding the quality of accounts receivable between Wanwu Cloud and its major shareholder, Vanke Group, Wanwu Cloud has also provided a detailed response. Wang Xubin, the head of the Financial and Capital Management Center of Wanwu Cloud, stated that the company's accounts receivable in 2023 amounted to 6.78 billion yuan, a year-on-year increase of 8%, which is lower than the revenue growth rate of 10.2%. The increase in accounts receivable is mainly influenced by the growth in business scale. Currently, 91% of Wanwu Cloud's accounts receivable are within one year, and sufficient provisions for bad debts have been made for accounts receivable with longer ages and potential risks, making the overall risk controllable.

Additionally, Wang Xubin stated that the current balance of accounts receivable from the related party, Vanke Group, is 2.487 billion yuan, all of which are generated from the company's provision of operational services to Vanke. The ages of these accounts are relatively short. In 2023, Vanke Group's payment pace to Wanwu Cloud has been orderly, with a total of 4.4 billion yuan paid to Wanwu Cloud within the year. Up to now, the recovery of payments from Vanke Group has been relatively normal, almost the same as the same period last year. Based on the long-term understanding of Vanke Group, the company believes that the risk of recovering accounts receivable from Vanke Group is controllable.