Guangzhou State-owned Enterprise Yuexiu Services to Lay Off Over Three Thousand Employees Within Six Months

In 2024, the performance of listed real estate companies in China generally declined. Recently, Guangzhou state-owned real estate company Yuexiu Service released its financial report, showing that the company laid off 3359 employees in just the past year.

According to a report from the Daily Economic News on March 23, Yuexiu Service held its 2024 performance briefing in Hong Kong. By the end of 2024, Yuexiu Service achieved a revenue of 3.868 billion yuan, a year-on-year increase of 20%. The core net profit was 512 million yuan, up by 5.1% year-on-year. Shareholder’s net profit was 353 million yuan, down by 27.5% year-on-year, with a yearly net profit of 286 million yuan, a decrease of 42.8%. The comprehensive gross profit margin was 23.3%, a decrease of 3.3 percentage points year-on-year, mainly due to the impairment of goodwill.

During the reporting period, Yuexiu Service’s sales cost was 2.967 billion yuan, an increase of 25.3% year-on-year, with the sales cost growth rate higher than the revenue growth rate. The company explained that this was due to a decrease in high-margin value-added services including parking space sales assistance and management services for project sites and demonstration units.

According to reports, in the mid-2024 report, Yuexiu Service had 13,781 employees. By the end of 2024, the number of employees had decreased to 10,422, with a reduction of 3359 employees in just six months.

Public records show that Yuexiu Service was established in 1992 and is a large comprehensive property service enterprise under Yuexiu Group’s real estate sector. In 2021, Yuexiu Service went public. Yuexiu Group is a large local state-owned enterprise group headquartered in Guangzhou.