Continuous Efforts in Multiple Aspects Broaden Service Formats Landsea Green Life’s Revenue in 2022 will Increase by 20.6% Year-on-Year

 

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)

 

Continuous Efforts in Multiple Aspects Broaden Service Formats

Landsea Green Life’s Revenue in 2022 will Increase by 20.6% Year-on-Year

 

(3 April 2023, 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 the annual results for the 12 months ended 31 December 2022 (“the Period”).

 

During the Reporting Period, revenue of the Group amounted to approximately RMB889 million, representing an increase of approximately 20.6% as compared with

approximately RMB737 million for the corresponding period, when gross profit for the period increased by approximately 6.5% to approximately RMB198 million, from approximately RMB186 million for the corresponding period. Gross profit margin was approximately 22.3%. After excluding the impact of impairment losses, the adjusted profit for the period was approximately RMB64 million.

 

Two wheel drive business development, revenue from property management service business increased by 32.3% year-on-year

 

In 2022, with customers’ needs as our direction, the Group consolidates our service

quality and stretches our service boundaries and business fields. As of 31 December 2022, the GFA under management of commercial and office buildings was approximately 1.49 million sq.m. When the proportion of project scale further increased, the revenue increased by 40.1% as compared to the corresponding period of 2021. Urban services represent a new breakthrough in the property industry. Since our entering of the urban service field for the first time in 2021, the Group has continued to make efforts in it. In particular, the sanitation and cleaning project in Qinlan Town (秦栏镇) acquired during the period is a key breakthrough for the Group in the field of urban services, where revenue from urban service projects under management reached RMB18.22 million denoting an increase of 101.3% over the corresponding period last year, which may contribute to the construction of urban life service concept of the Group and to the further enrichment of our business portfolio.

 

In terms of scale growth, the Group facilitated the quality scalability through the dualwheel drive of market expansion and equity cooperation. For the Year of 2022, the new contracted GFA were approximately 10.85 million sq.m., of which, the Group has 30 new projects through bidding in the market with a new contracted GFA of approximately 3.82 million sq.m. and a new GFA under management of approximately 5.22 million sq.m. The Group has 30 new projects through acquisition with a new contracted GFA of approximately 7.03 million sq.m. and a new GFA under management of approximately 5.98 million sq.m.

 

At the same time, our capability of independent market expansion has also been increasing, with the new contracted GFA from independent third parties were approximately 10.70 million sq.m., accounting for approximately 98.6% of the total new contracted areas for 2022. The portion of GFA under management from independent third parties (including properties receiving project management services from Landsea Green Management) to the total GFA under management raised by nearly 15 percentage points from 42.3% for the corresponding period in 2021 to 57.2%.

 

As of 31 December 2022, the Group has expanded its property management services to [36] cities with a GFA under management of 29.18 million sq.m., a year-on-year increase of about 50%. And the total contracted GFA of 37.09 million sq.m., serving more than 240,000 households. Due to quality growth in scale and improvement in service capabilities, the Group’s revenue from property management services was approximately RMB622 million, accounting for approximately 70.0% of the total revenue and representing an increase of approximately 32.3% as compared with

approximately RMB470 million for the corresponding period in 2021.

 

Continue to deepen the Value-Added Services to Non-Property Owners and actively expand revenue channels

 

The Group strives to provide quality, standardised and professional solutions for on-site management, vigorously developing property consulting services with green building operation and maintenance as our core competitiveness and also property agency services to respond to customers’ needs with rapid sales and de-stocking achieved. As of 31 December 2022, the Group’s revenue from value-added services to non-property owners was approximately RMB187 million, accounting for approximately 21.0% of the total revenue.

 

In terms of specific business segments, in 2022, the Group provided sales assistance services to 47 sales offices of Landsea Green Management and its partners and property companies which were independent third parties, which included 8 newly added sales offices during the period. In terms of property consultancy services, leveraging on its experience in operating green buildings for years, the Group managed to secure more property consultancy services. Period under review, the contracted service area increased by approximately 280,000 sq.m. and the contracted amount reached approximately RMB2.23 million, when the revenue from property consultancy services increased by approximately 2.9% as compared with the corresponding period in 2021.

 

In terms of property agency services, during the year of 2022, we established a professional sales team for property agency services assisting community management service providers in enhancing service quality based on analysis on customers’ needs and facilitated 200 residential properties transactions, 869 car parking space transactions and 5 apartment transactions. During the Period, revenue from property agency services amounted to approximately RMB80.62 million. In addition, we sourced potential property buyers, assisted property developers in entering into property sale and purchase agreements with buyers and the sales of new properties, thereby expanding our property agency services.

 

Actively explore emerging business models to meet customer needs in an all-round way

 

Maintaining our focus on our customers, we make business innovation serving their needs, actively exploring a new business model of “Property Service + Life Service”  in the pursuit of efficient and high-quality growth in scale and hence transforming from a traditional property service company into a green life service provider.

 

In terms of community value-added services, the Group focuses on customer asset services by actively carrying out leasing and sales business. In response to the growing demand for elderly care, community services for home-based elderly care were explored to alleviate the contradiction caused between families and societies. In the mean time, in order to satisfy the living needs of residents in aspects such as clothing, food, housing and transportation, we commenced the pilot for home decoration and renovation service and promoted the new community retail business. Despite the effects from the epidemic control, revenue from community value-added services during the period under review amounted to RMB80 million, representing an increase of approximately 20% as compared with the corresponding period of the previous year.

 

Digital construction is the breakthrough element against the fierce market competition at the time and also the key to facilitate the transformation of the Group into a life service platform. For basic services with digital intelligence and intelligent communities, we have established a mature and stable management platform for basic property services by enhancing the online contact for customer service and the management system. By optimizing the digital and intelligent service experience under multiple scenarios such as visitors, vehicles & pedestrians, and security, as well as realizing the online management of community group purchase and househlod leasing and sales, our community convenience is enhanced and the development of life service business is facilitated.

 

With the Landsea Friends (诗友公社) as the medium, the Group has encouraged neighborhood relationship through the buildup of community culture so as to satisfy the spiritual and cultural needs of customers. In order to realize the warm communities, we have polished our system for standardized products by publishing 4 sets of guides for community cultural standards including the “Instruction Statements for the Full LifeCycle of Community Cultural Products of The Landsea Friends (诗友公社社区文化产品全生命周期使用说明书)”. Meanwhile, the mini-programs for “The Landsea Friends” groups, the platforms for community cultural activities, were launched with 18,311 registered users and 199,307 cumulative visits as at 31 December 2022. Besides, 19 national and city-level interest groups were established and 210 community groups were connected, when 616 activities were held, of which 82 were organized by the residents on their own, successfully gaining more than 380,000 customer visits with 49,000 families participating in various kinds of community cultural activities.

 

Grasp the development opportunities of the industry and accelerate the transformation and upgrading of the company

 

Looking forward to 2023, the property management industry will retrieve the development path of giving priority to service quality, when continuing to stretch its scope of service by extending to different types of services to maintain steady development. With the adjustment of the epidemic control policies, the consumption level and desires of residents remain scaling-up. The same goes with recovering pursuit of a better life, which shall bring good opportunities for the development of value-added services for the property management industry. In addition, in terms of reaching the goal of “carbon peaking and carbon neutrality” ,  it is possible for property management enterprises, as an important vehicle for urban governance, to become an crucial force for low-carbon transformation and sustainable development of the society.

 

The Group will continue to accelerate our transformation and upgrading toward a life service platform. Therefore, we will adhere to the customer-oriented approach for improvement on operation quality. Business development on community life service will be accelerated with our own resource and intelligence, when non-residential and urban service areas will be vigorously explored to promote quality scale growth. Digital transformation will be strengthened and speeded up for enriching customer service experience and enhancing corporate operation efficiency, so as to facilitate the implementation of diversified service areas. In 2022, performance of the Group deteriorated as affected by the external environment, while we shall strive to achieve substantial improvement for our results in 2023. In response to the implementation of thenational goal of carbon peaking and carbon neutrality dual-carbon, the Group plans to achieve our goal of carbon neutrality in scope 1 of our “Carbon Neutrality Roadmap of Landsea Group (本集团碳中和路线图) Note” by 2023 through green energy-saving transformation in office space, increasing usage of renewable energy for electricity, and energy conservation and emission reduction in terms of eco-offices and employee behaviour.

 

 

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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 23rd among the “2022 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 2021.