Landsea Green Properties Co., Ltd
Landsea’s Asset-light Model Transformation Made Progress, Demonstrated Advantages in Green Differentiation
Landsea’s Asset-light Model Transformation Made Progress, Demonstrated Advantages in Green Differentiation
(31 March 2022, Hong Kong) Landsea Green Properties Co., Ltd. (“Landsea” or the “Company”, together with its subsidiaries collectively known as the “Group”, HKEx Stock Code: 00106.HK), a leading green property development service provider in China, announced its operating results for the twelve months ended 31 December, 2021 (the “Period”).
Contracted sales achieved steady growth, and debt structure was further optimized Looking back to 2021, the contracted sales of “Landsea Products” amounted to approximately RMB47.15 billion, representing an increase of approximately 14.5% as compared with corresponding period of last year; contracted GFA was approximately 2.64 million sq.m.. The total revenue was approximately RMB8.08 billion. The gross profit margin was increased by 1.7 percentage points year-on-year to approximately 20.7%.
With years of exploration and persistence in the asset-light business model, the Group has effectively reduced its reliance on financial leverage and responded to the complex changes in the industry in a lighter manner, which highlighted its strong risk management capability amid the in-depth adjustment period of the industry. The Group has always maintained a prudent financial strategy, taken cash flow security as a lifeline, and strove to optimize its capital and debt structure. The debt to assets ratio of the Group net of advance payment decreased approximately 0.9 percentage points as compared with the corresponding period of last year to approximately 76.6% as at 31 December 2021. Meanwhile, the percentage of short-term debt within two years was decreased by 12 percentage points to 46.5%. The long-term and short-term debt structure achieved further optimization. The weighted average financing cost was approximately 7.0%, with a decrease of approximately 0.6 percentage points as compared with the corresponding period of last year.
The asset-light model transformation made progress, with over 90% of the saleable value resulting from Project Management projects and development projects with minority interests
During the Period, The Group has acquired a total of 59 projects, including 15 in the PRC and 44 in the United States. In the PRC, Landsea secured a total of 15 projects in cities such as Tianjin, Chongqing, Wuhan, Suzhou, Xi’ an and Zhongshan, with an additional saleable value of approximately RMB31.45 billion and an additional saleable area of approximately 1.77 million sq.m.. As of 31 December 2021, the accumulated saleable value in the PRC amounted to approximately RMB77.33 billion, more than 60% of which were from first-tier and new first-tier cities and more than 70% of which were from the Yangtze River Delta and the Greater Bay Area.
During the Period, the Group has acquired 12 new project management services projects, realizing contracted sales from project management services of approximately RMB981 million with a year-on-year increase of approximately 9%. The additional saleable area of the project management services projects was approximately 1.53 million sq.m. with its saleable value reaching approximately RMB25.86 billion with a year-on-year increase of approximately 18%. Meanwhile, the gross profit margin of project management services business maintained at a relatively high level of approximately 40%. As of 31 December 2021, the Group provided a total of 83 project management services and development projects with minority interests, with a total saleable area of approximately 3.78 million sq.m. and an estimated saleable value of approximately RMB70.62 billion, representing approximately 91% of the total saleable value for the China region.
During the Period, Landsea Homes has secured 44 new projects in California, Arizona, Texas and Florida in the United States. The saleable areas of new projects were approximately 950,000 sq.m. with the saleable value of approximately RMB15.04 billion, representing a year-on-year increase of approximately 126.3%. As of 31 December 2021, the accumulated saleable value in the United States was approximately RMB21.09 billion, of which more than 35% was for California, approximately 30% for Arizona, and nearly 30% for Florida and Texas.
Persistently focus on capability in green brand and highlighted the advantages of differentiation
As a green development service provider, research and development and construction capabilities for green buildings are the foundation of the Company. Landsea persistently focuses on green products differentiation to enhance its position as a green brand. During the Period, the Company had built over 150 green residential projects in 36 cities across the PRC with a green residential development area of over 25 million sq.m. Currently, the Company has obtained a total of 98 green building certifications in the PRC, of which 52, representing the majority, were green building three-star certifications. The first green building three-star certification in 9 cities, including Shanghai, Nanjing, Hangzhou and Suzhou, were obtained by Landsea. In addition, the Company has also obtained 21 international certifications for excellent green buildings, including BREEAM and LEED. At present, there are over 77,000 users in the PRC living in Landsea’s technological residences. Since the debut of “Ark of Freedom (自由方舟)”, a green healthy residence, as a new generation of products of Landsea in 2020, it has been launched throughout 16 cities in the PRC with over 8,279 sets of residence launched.
Mr. Tian Ming, Chairman of the Board and Executive Director, commented, “For the real estate industry in the PRC, after more than 20 years of development, the problem of housing shortage has been fundamentally alleviated. In the future, the industry will develop towards a more healthy, comfortable, eco-friendly and low-carbon direction, and its orientation will shift from the original new housing market to the inventory market, with the co-existence of the two. The rapid-cycle model with financial orientation will be eliminated, with the focus returning to residence, life and quality. In the new era, previous experience of and exploration by Landsea will show its foresight and lay a solid foundation for successful transformation. Since 2014, we have been realizing our strategic transformation to product differentiation, asset-light transformation and revenue diversification, and 2022 is a decisive year for completing the transformation and for leaping. When competing in the industry, we focus on disposing of distressed assets and on our core business of quality. Adhering to our original dream of green, low-carbon and sustainable development, Landsea shall move into a new stage of industry development with a new face after streamlining. I am confident in the transformation, upgrading and sustainability of the Company as well as our development in the future market.”
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About Landsea Green Properties Co., Ltd. Landsea Green Properties Co., Ltd. (Stock Code: 00106.HK) is a leading green property development service provider in China. It has been implementing a green product-centered and differentiated development strategy since 2004 and one of the Top 100 Chinese Real Estate Enterprises for eleven consecutive years. Landsea Homes, a holding subsidiary of the company, is listed on Nasdaq (Stock Code: LSEA) in 2021, being the eighteenth listed home builder in the United States. The company’s business network covers all major economic regions of China as well as the first-tier cities in the United States. File: Landsea’s Asset-light Model Transformation Made Progress, Demonstrated Advantages in Green Differentiation
01/04/2022 Dissemination of a Marketing Press Release, transmitted by EQS Group. |