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)

 

Diversified Business Portfolio And Strengthened Core Competitiveness

Landsea Green Life Achieved Quality Growth In 2022 Interim Results

 

(19 August 2022, 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 interim results for the six months ended 30 June 2022 (“the Period”).

 

Relying on increasingly refined operation management, scientific organizational reform, and people-oriented and empirical business philosophy, the Group has developed a manner of higher quality, higher efficiency and higher sustainability in the first half of the year. During the period under review, The Group’s revenue reached approximately RMB418 million, representing an increase of approximately 29.4% as compared to the corresponding period of last year. By specific business line, the revenue from property management services was approximately RMB277 million, representing a year-on-year increase of approximately 20.4%. The revenue from value-added services to non-property owners was approximately RMB108 million, increased by approximately 52.1% year-on-year. The revenue from community value-added services was approximately RMB33 million, representing a significant year-on-year increase of approximately 50.0%. Total proportion of value-added services revenue was approximately 33.7%, increased by 4.9 percentage points year-on-year.

 

In terms of profit, the Group’s gross profit margin was approximately 25.1% in which achieved steady growth, representing an increase of 1.4 percentage points as compared to the corresponding period of last year. The gross profit was approximately RMB105 million, increased by approximately 38.2% year-on-year. The profit for the period was approximately RMB24 million, increased by approximately 71.4% year-on-year.

 

Actively building multi-business service capabilities, market penetration has increased steadily

 

The Group is adhering to multi-channel expansion for sustainable scale growth. As of 30 June 2022, the Group had expanded its property management services to 35 cities with a total GFA under management of 27.63 million sq.m. and a total contracted GFA of 36.49 million sq.m., serving over 230,000 households. In particular, the proportion of GFA under management from independent third parties to the total GFA under management further increased by approximately 14 percentage points and reached 56.2%. During the period, the new contracted GFA were approximately 9.16 million sq.m., of which, in terms of customer type, the new contracted GFA from independent third parties were approximately 9.10 million sq.m., accounting for approximately 99.3% of the total new contracted GFA for the first half of 2022, the capability of independently expanding markets continued to increase.

 

The growth of results performance of the Group for the first half of 2022 was also benefitted from expansion and acquisition by fairly balancing both quality and scale. The Group has 18 new projects through bidding in the market with a new GFA under management of approximately 2.84 million sq.m.. At the end of 2021, the Group acquired 100% equity interest in Dream seeker and its subsidiary, Anhui Xindi Ruiyi Property Services Co., Ltd. The completion of the acquisition took place on 30 May 2022 and, the Group’s contracted GFA increased by approximately 7.03 million sq.m. and the GFA under management increased by approximately 5.98 million sq.m.. This acquisition assisted the Group in exploring into the Anhui regional market, and formed effective synergy with the existing areas under the Group’s management, thereby achieving the construction of a multi-level brand system. Meanwhile, adhering to a flexible and open market-oriented cooperative approach, the Group has reached strategic cooperation with state-owned enterprises and regional property developers. As of 30 June 2022, a total of 14 partner companies have been established, while the number of off-balance-sheet management projects was 18 with off-balance-sheet GFA under management amounting to approximately 2.27 million sq.m., which has fully demonstrated the Group’s multi-channel expansion results.

 

During the period, the Group actively and strategically developed the non-residential market, and focused on projects such as public buildings, industrial parks and commercial buildings. As of 30 June 2022, the GFA under management of commercial and office buildings was approximately 1.38 million sq.m.. When the proportion of project scale further increased, the revenue increased by approximately 46.1% year-on-year. In the first half of this year, the Group successful bid for the sanitation and cleaning project in Qinlan Town(秦栏镇), which is a key breakthrough for the Group in the field of urban services. For the first half of 2022, the income generated from urban service projects amounted to approximately RMB3.17 million.

 

Continuous innovation and enhance customer loyalty

 

On the basis of consolidating property services of good quality, the Group actively responds to national policies, adheres to the direction aimed at customers’ demand, and continues to innovate our business models in the field of living services. We have focused on customer asset services, expanded our space operation (空间运营) services, explored community elderly care services, started our pilot run of housekeeping services, and promoted new retail business in communities. Benefiting from the orderly development of lease and sales business in communities and the continuous expansion of the number of projects and GFA under management, our revenue from community value-added services in the first half of the year amounted to RMB33 million, representing a significant increase of 50.0% as compared with RMB22 million for the corresponding period of last year.

 

On the other hand, the Group also attaches importance to meeting the spiritual needs of property owners through community culture development. During the period, The Landsea Friends (诗友公社) continued to develop various forms of community activities, completed the replacement with its own standard products, and released the guidance manual on community culture standardization and society development, in order to lead property owners to jointly create and build a beautiful and harmonious home. The Landsea Friends has stimulated the vitality of local communities, and nurtured property owner KOLs and societies. It has also developed, and made connection among 11 urban societies and 146 communities and societies voluntarily operated by property owner KOLs. In particular, 27 newly incubated community running groups, and a unique Landsea association Intellectual Property — Hundred Groups Overflowing with Color (百团溢彩) was created. A total of 106 activities for the community brand activities, city community activities and online activities were held, of which 30 were independently organized by the customers, covering more than 170,000 customers, with 8,193 families of customers participated.

 

Regarding information establishment, with a customer-oriented approach, the Group has been promoting digital establishment to continuously improve customer service and experience as well as our life service capabilities with a view to promoting the transformation of property services. During the period, the customer service mini program has been fully launched, and the online service contact and the service experience management system jointly established with the Service Account (服务号) and the Corporate WeChat (企业微信) have been gradually improving.

 

Focus on green and sustainable development, build differentiated competitiveness

 

Benefiting from the Landsea Holdings’ “Green Differentiation Strategy”, we have built up extensive experience, strength and competitiveness in providing property services for green buildings. As of 30 June 2022, there were 51 green projects under management, representing an increase of five as compared to that as at 31 December 2021, and approximately 7.39 million sq.m. was GFA under management, representing an increase of approximately 620,000 sq.m. as compared to that as at 31 December 2021.

 

As a green and low-carbon community life service provider and city operator, the Group actively builds the “Low-carbon Living Community” model, and is committed to reducing carbon emission in the full scenario of residents’ urban community life, including community domestic energy, domestic water, residents’ travel, and harmless waste. The Group participated in the establishment of the Sustainable Development (Carbon peaking and carbon neutrality) Professional Committee of Shanghai Property Management Association, and also published a carbon neutrality roadmap, clarifying the Company’s timeline and path to carbon neutrality, making the promotion of reduction of carbon emissions in all scenarios of urban community life for residents as the important goal of the corporate’s future development.

 

Looking to the future, we will adhere to the customer-oriented principle, continue to consolidate regular property management, improve operational management and service quality, and maintain our leading position in the industry in terms of customer satisfaction; continue to develop community life services, innovate business models, expand service scopes, increase the proportion of revenue from community value-added services, and make value-added services an important growth point for us to generate revenue and profit; continue to promote quality scalability on the basis of innovation, and integrate internal and external resources to vigorously expand the residential, office and urban service areas. We will continue to strengthen and accelerate digital establishment, improve customer service experience, optimize corporate operation efficiency, and facilitate the business development in diversified service scenarios. We will embrace our dreams and ambition aiming high, adhere to the long-term development, do difficult but right things, and further promote the healthy operation and sustainable development of the enterprise in the process of strategic transformation.

 

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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.