Landsea Green Management Has Always Explored The Path of Light-Weight Assets to Traverse The Cycles and Achieve Sustainable Development

 

Landsea Green Management Co., Ltd.

（stock code: 00106.HK）

 

Landsea Green Management Has Always Explored The Path of Light-Weight Assets to Traverse The Cycles and Achieve Sustainable Development

 

 

(3 April 2023, Hong Kong) Landsea Green Management 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, 2022 (the “Period”).

 

Differentiated Development Strategy Was highly effective and New Property Saleable Value Was Brought about Considerable Growth in The Past Year

 

During the period, the contracted sales of “Landsea Products” amounted to approximately RMB22.32 billion. The contracted area was 1,162 thousand sq.m.. The Company’s revenue for the year ended 31 December 2022 was approximately RMB14.02 billion, representing a significant increase of 73.6% year-on-year. The gross profit of the Group was approximately RMB1.35billion.

 

In 2022, the Company’s property development business covers both the PRC and the United States, with a total of 57 projects secured and all of the projects were under development for sale. The Company recorded an increase in the new project saleable area of 3,379 thousand sq.m., with expected new project saleable value of approximately RMB55.54 billion. In the PRC, Landsea secured a total of 24 projects in cities such as Nanjing, Suzhou, Wuxi, Chengdu, Nantong, Xi’an and Tai’an, with an additional saleable area of approximately 2,393 thousand sq.m. and an additional saleable value of approximately RMB43.65 billion. In the United States, Landsea Homes has successively entered Greater New York, California and Arizona, Texas and Florida. During the period, Landsea Homes secured 33 new projects in Florida with additional saleable area of approximately 990 thousand sq.m. and saleable value of approximately RMB11.89 billion.

 

Over the years, Landsea has been exploring the path of transforming from a traditional asset-heavy housing model to an asset-light model. The year of 2022 can be regarded as a test for Chinese real estate enterprises, and our differentiated development strategy was examined in the past year. It was our ongoing strategic determination that helped us to survive the most difficult times in the industry. In 2022, out of the 24 projects obtained by the China real estate business segment, 22 were projects for development and management services, with total contracted sales from the Project Management Services of approximately RMB1.19 billion, representing a year-on-year increase of 21.2%; the new Project Management Services projects have contributed incremental saleable area of 2,296 thousand sq.m. and saleable value of approximately RMB40.92 billion, achieving a year-on-year increase of 58.2%. As at the end of 2022, we provided a total of 96 projects with Project Management Services and with minority interests, when the total saleable area was approximately 5,038 thousand sq.m. and the estimated saleable value was approximately RMB93.12 billion, representing approximately 93% of the total value for the China region.

 

As at the end of 2022, the Company had reserve projects with an aggregate saleable area of 7,271 thousand sq.m. and expected saleable value of approximately RMB131.19 billion. Nonetheless, the accumulated saleable value in the PRC amounted to approximately RMB100 billion, approximately 85% of which were from first-tier, new first-tier and second-tier cities and nearly 80% of which were from the Yangtze River Delta and the Greater Bay Area. In the United States, the accumulated saleable value was approximately RMB31.26 billion, of which 41% was for Florida and Texas together, 30% was for California and 22% was for Arizona.

 

Focuses on Green Differentiation Market to Enhance Its Position as a Green Brand.

 

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, we 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.. The Company has obtained a total of 104 green building certifications in the PRC, of which 56, 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. We have obtained National Green Building Certification for nearly 70% of our total projects. In addition, we have also obtained 21 top international certifications for green buildings, including BREEAM, LEED and DGNB.

 

Landsea devoted to building green homes. Since the debut of “Ark of Freedom (自由方舟)”, a green healthy residence, in 2020, it has been launched throughout 16 cities in the PRC with over 12,000 sets of residence delivered as at the end of 2022. In 2002, the first project was launched and equipped with Landsea’s latest technology system “Health Fortress”, Nanjing King Wah Mansion (南京璟華府), achieving a comprehensive upgrade in temperature, humidity, air purification and other dimensions. Several newly acquired projects in 2023 will also be built according to the Health Fortress system standard.

 

Mr. Tian Ming, Chairman of the Board and Executive Director, commented, “The year 2022 was a “bottom year” for the Chinese real estate sector. The industry as a whole entered into an “ice age” and will face long-term and deep-seated restructuring. Even so, the recession over the past year has been more severe than the market had anticipated, figures falling below their bottom lines. The scale of China’s real estate industry will remain at around RMB10 trillion and will remain one of the pillar industries of the national economy, which laid our fundamental consideration on the industry’s future.. At the same time, the industry is still in transition and market players are still struggling to survive. Landsea’s strategic transformation for product differentiation, asset-light model transformation and revenue diversification has started in 2014, and almost ten years has passed. Last year, the Company officially changed its name to “Landsea Green Management Limited” to more accurately reflect the strategic positioning of an asset-light green development service provider. Not only do we seek to become a green branded service provider with strong operation capability, but also to be equipped with investment capability to a certain extent in order to seize every good market opportunity, so the Company’s profitability could grow.

 

The theme for the Company in this year is a year of “going through the cycle”, we are committed to getting through a glacial period. It is estimated that 2023 will still be a difficult year for the industry as it is still in a period of adjustment. In order to fight the battle for protecting cash flow, survive and achieve sustainable development, we must have bottom-line mindset; we must unify our thinking, work hard and fight determinedly. We are striving to get out of trouble sooner and to get through the cycle successfully. In the Real Estate 2.0 era of low leverage, and emphasis on professional segmentation and product services, we need to be respectful to the market, understand the market situation in the correct way, accurately capture market opportunities, enhance our investment capabilities, and adhere to customer orientation and product innovation. In the future, we are still confident enough to find the most suitable development path by leveraging our unique advantages in the new era. We believe that Landsea will be able to transform and upgrade and iterate into a successful enterprise 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.