Landsea Green Properties Co., Ltd
Synergy of Landsea Green Life’s 3 major segments leading to 27.1% growth in interim revenue
For immediate release 20 August 2021
LANDSEA GREEN LIFE SERVICE COMPANY LIMITED 朗詩綠色生活服務有限公司 (Incorporated in the Cayman Islands with limited liability) (Stock code: 1965)
Synergy of Landsea Green Life’s 3 major segments leading to 27.1% growth in interim revenue
(20 August 2021, Hong Kong) Landsea Green Life Service Company Limited (the “Company” or “Landsea Green Life”, together with its subsidiaries, the ”Group”) (stock code: 1965) is pleased to announce its unaudited operating results for the six months ended 30 June 2021 (the “Period”).
Gaining Recognitions by Successful Listing on the Stock Exchange
In July 2021, adhering to its service philosophy of creating a “warm community”, the Group achieved breakthrough in its development by successfully obtaining a listing on the main board of the Stock Exchange of Hong Kong Limited. During the Period, the Group strived to provide property management services and value-added services of quality and features for a wide range of customers, consolidate market-oriented operation and enhance brand value, gaining multiple recognitions. Going from strength to strength, the Group now ranks 24th on the list of “2021 Top 100 Property Management Companies in China (2021中國物業服務百強企業)” by the China Index Academy (中國指數研究院). It is the fourth year in a row that the Group was awarded the “2021 China Leading Property Management Companies in terms of Service Quality (2021中國物業服務百強服務質量領先企業)” status by the China Index Academy. The Group was also awarded such titles as“2021 China Leading Property Management Companies in terms of Customer Satisfaction (2021中國物業服務百強滿意度領先企業)”, “2021 China Leading Property Management Companies in terms of Marketisation of Business (2021中國物業管理行業市場化運營領先企業)”, .etc.
Continued Growth in Revenue and Steady Rise in Profitability During the Period, the Group realized a revenue of approximately RMB323 million, representing an increase of approximately 27.1% as compared with the corresponding period last year, of which revenue from property management services amounted to approximately RMB230 million, representing an increase of approximately 21.2% as compared with the corresponding period last year, revenue from value-added services to non-property owners amounted to approximately RMB70.71 million, representing an increase of approximately 51.4% as compared with the corresponding period last year, and revenue from community value-added services amounted to approximately RMB22.17 million, representing an increase of approximately 26.3% as compared with the corresponding period last year. Contributions from property management services, value-added services to non-property owners and community value-added services accounted for 71.2%, 21.9% and 6.9% respectively of the Group’s total revenue.
During the Period, the Group’s gross profit amounted to approximately RMB76.43 million, representing an increase of approximately 14.7% as compared with the corresponding period last year, with a gross profit margin of approximately 23.7%. Net profit after adjustment for the listing expenses amounted to approximately RMB27.27 million, representing an increase of approximately 39.8% as compared with the corresponding period last year, with a steady rise in profitability.
Ongoing penetration into the Yangtze River Delta, active promotion of market-oriented expansion of scale The Group continued to penetrate the Yangtze River Delta and actively promoted the market-oriented expansion of scale. As at 30 June 2021, the Group had a total contracted GFA of 24.90 million sq.m. and a total GFA under management of 17.80 million sq.m., increasing by approximately 11% and 7% compared with those as at 30 June 2020. Of the 130 projects under management, 108 are located in the Yangtze River Delta, accounting for 85% of the total GFA under management.
Taking a flexible and open-minded approach in the pursuit of market-oriented cooperation, the Group has established strategic cooperation with state-owned enterprises and regional property developers by forming cooperative companies which are engaged in the provision of property management services for projects already delivered and to be delivered by the companies, leveraging on Landsea Green Life’s well-developed service system and advantages in standardized management. A total of 4 cooperative companies were newly incorporated during the first half of 2021, bringing in a total of 13 new operation management projects with an additional operation management area of 1.711 million sq.m..
As at 30 June 2021, the GFA under management from independent third parties (inclusive of entrusted construction) amounted to 7.45 million sq.m., accounting for 42% of the total GFA under management.
Stronger capability in green property management services gives a boost to scale and management fee level in property management
The Group provides property management for, among others, residential buildings, office towers, rental apartments, public facilities, industrial parks, hospitals and banks. We are also capable of providing property management services for green buildings. Based on the concept of green sustainability, the Group and the Building Research Establishment (BRE) signed a strategic cooperation agreement during the first half of the year for the purposes of jointly promoting the application of the BREEAM In-Use green building operation and maintenance standard in the 100 projects using the Group’s services, jointly training green building certification and assessment talents as well as operation and maintenance and management talents and jointly promoting green building operation and maintenance concept and standards. The Group also obtained the status of an exclusive certification and assessment institution for the BREEAM In-Use green building operation and maintenance standard (residence) in China.
Benefitting from the long-standing and steady development capability of Landsea Green Properties, the Group succeeded in expanding its scale in property management services. During the Period, the Group obtained an additional contracted GFA of 560,000 sq.m. (inclusive of entrusted construction) from Landsea Green Properties, representing a 65% year-on-year increase in additional contracted GFA compared to the first half of 2020.
One point worth mentioning is that property management fee on average recorded steady increase thanks to the Group’s insistence on service quality standardization and service diversification. As at 30 June 2021, with the expansion of scale in property management as well as the growing brand effect and quality standardization, the monthly management fee on average amounted to RMB 2.06 per sq.m., representing an increase of 2.5% over that as at the end of 2020, with the average property management fee for non-residential properties rising by 55.3% to RMB 4.38.
Looking forward, the Group will continue to address the customers’ unmet demand and dissatisfaction, focus on exploring new value for customers, promote quality growth in scale on the basis of ongoing innovation, and keep pushing the boundaries of services and widening the scope of business. We will accelerate our planning in such areas as healthy living, housekeeping, asset operation, green home renovation, community retailing, friendly neighborhood, comprehensive urban services, etc., allowing the Group to achieve rapid upward momentum for the capability, operating results and property owners’ experience of its value-added services. Meanwhile, the Group will gather pace to transform and upgrade itself from a conventional property company into a life service platform by pursuing business innovation powered by digital and smart devices and developing value-added services and products to meet customer needs.
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About Landsea Green Life Service Company Limited Landsea Green Life Service Company Limited (Stock code: 1965.HK) is a growing property management service provider well-established in the Yangtze River Delta. Landsea Green Life provides diversified, high quality and featured property management services and value-added services and ranked the 24th among the “2021 Top 100 Property Management Companies in the PRC”. Landsea Green Life is also an established property management service provider in providing property management services for green buildings. In terms of the GFA under management ratio of green buildings with an accreditation of two stars or above, Landsea Green Life ranked third among the Top 100 Property Management Companies in the PRC in 2020.
23/08/2021 Dissemination of a Marketing Press Release, transmitted by EQS Group. |