Landsea Green Properties Co., Ltd.

（stock code: 00106.HK）

 

Landsea's Sales Up by 81.6% Y-o-Y in the First Half of the Year, Consolidating Product-differentiation Advantages

 

 

(27 August 2021, 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 operator in China, is pleased to announce its unaudited operating interim results for the six months ended 30 June, 2021 (the "Period").

 

The net core profit doubled and finance cost was further reduced

During the Period, "Landsea Products" recorded contracted sales of approximately RMB23.40 billion, an increase of approximately 81.6% as compared with corresponding period of last year; the contracted GFA of approximately 1.48 million sq.m., representing an increase of approximately 101.1% as compared with the first half of 2020. The Group recognised revenue of approximately RMB3.54 billion, representing an increase of approximately 24.0% as compared with corresponding period of last year; and the gross profit margin was approximately 22.6%, representing an increase of 4.9 percentage points as compared with corresponding period of last year. The net core profit amounted to approximately RMB132 million and the net core profit attributable to the shareholders of the Company amounted to approximately RMB114 million, representing an increase of approximately 29.5% and approximately 103.9% respectively as compared with corresponding period of last year.

 

The Group maintained a prudent financial strategy and upheld "Cash Flow Oriented" as guidance for its operation, as well as paid keen attention to liability risks and cash safety. During the Period, the net debt ratio of the Group was approximately 52.8%. The proportion of interest-bearing debts with maturity within one year was approximately 20.3%, the ratio of cash to short-term debts was approximately 2.7 times, representing sufficient liquidity and stable cash flows.

 

Meanwhile, the Group has maintained long-term and positive cooperative relationship with a number of financial institutions. As of the end of the Period, the total line of credit was RMB55.6 billion, and the unused credit lines accounted for nearly 70%. The Group actively reduced the proportion of high-interest debt, and for the half year ended 30 June 2021, the on-balance sheet weighted average finance cost was approximately 7.0%, a drop from approximately 7.6% as at 31 December 2020.

 

Entrusted development maintains high gross profit and overall profitability continues to improve

During the Period, the Group secured a total of 8 projects in cities such as Tianjin, Chongqing and Wuhan with an additional saleable area of 850,000 sq.m. and saleable value of approximately RMB17.35 billion; As of the end of the Period, first-tier and new first-tier cities accounted for more than 60% in the accumulated saleable value in the PRC, and the Yangtze River Delta and Greater Bay Area accounted for more than 70%.

 

The Group secured 8 newly acquired projects, generating entrusted service revenue of RMB405 million, a year-on-year increase of 17.1%; the additional saleable value and the additional saleable area increased rapidly from RMB1.23 billion and 62,000 sq.m. in the first half of 2019 to RMB12.86 billion and 649,000 sq.m. respectively in the first half of this year, with a three-year CAGR of more than 220%; meanwhile, the gross profit margin of the entrusted projects in relation to property development and management services was at 57%, maintaining a high standard in the real estate industry. As of the end of the Period, the Group has provided entrusted projects services for a total of 50 projects, with a total saleable area of 2.776 million sq.m., and an estimated saleable value of RMB59.54 billion.

 

The Group has been focusing on green products differentiation to build and enhance its green brand power for years. As of the end of the Period, Landsea has built 141 green property development projects in 36 cities across the country, with a green property development area of more than 25 million sq.m.; a total of 97 green building certifications have been obtained, including 51 three-star green building certifications. What is worth mentioning is that the Group also has gained 21 certifications issued by some of the most popular and internationally recognized green building rating systems in the world, including BREEAM and LEED. Currently, there are more than 75,000 household users of Landsea Properties across the country using the Group's residential technology services.

 

Connecting certain major areas, namely Phoenix in Arizona, Austin and San Antonio in Texas and Orlando in Florida together with well-established Northern California Bay Area, Greater Los Angeles Area in Southern California and New York Metropolitan Area, Landsea Homes Corporation has preliminarily created a "smiling coastline" in the United States. The Group is one step closer to its goal of "providing functional housings in growing markets across the United States".

 

Mr. Tian Ming, Chairman of the Board and Executive Director, commented, "Against the backdrop of global response to climate change and China's "3060" carbon emission reduction goal, green and low-carbon development has become a "must-select model" for enterprises. For twenty years, as a company that has been deeply involved in the field of green construction and has always been committed to creating green living with high comfort and low energy consumption, the current policy environment will bring us better development opportunities with no doubt; over the years, the exploration of the asset-light model has also built our solid financial foundation and our strong product and operational capabilities. In the future, we will continue to adhere to the strategic choice of product differentiation, asset-light model and income diversification, as well as develop green product capabilities, establish and improve the green supply chain, and facilitate the achievement of the dual-carbon goal with determination."

 

 

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About Landsea

Landsea Green Properties Co., Ltd. (Stock Code: 0106.HK) is a leading green property development operator 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.

 

This press release is issued by Zhixin Investor Relations Consultant Limited on behalf of Landsea Green Properties Co., Ltd..

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Zhixin Investor Relations Consultant Limited

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