Diversified Business Development Model has Achieved Initial Results, Landsea Green Life’s Interim Revenue in 2023 Increased by 15.6% 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)

 

Diversified Business Development Model has Achieved Initial Results,

Landsea Green Life’s Interim Revenue in 2023 Increased by 15.6% Year-on-Year

 

(28 August 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 interim results for the six months ended 30 June 2023 (“the Period”).

 

During the period under review, the Group’s revenue reached approximately RMB483 million, representing an increase of approximately 15.6% as compared with approximately RMB418 million for the corresponding period in 2022. By specific business line, the revenue from property management services was approximately RMB360 million, accounting for approximately 74.5% of the total revenue and representing an increase of approximately 30.0% as compared with approximately RMB277 million for the corresponding period in 2022; the revenue from community value-added services was approximately RMB40 million, accounting for approximately 8.3% of the total revenue and representing an increase of approximately 21.2% as compared with RMB33 million for the corresponding period in 2022; the revenue from value-added services to non-property owners was approximately RMB70 million, accounting for approximately 14.5% of the total revenue; the revenue from apartment operation and management services, a new business segment this year, was approximately RMB13 million, accounting for approximately 2.7% of total revenue. During the period, the Group’s recorded gross profit was approximately RMB87 million, and gross profit margin was approximately 18.0%. The Group’s recorded profit for the reporting period was approximately RMB14 million during the period.

 

The Scale of Management Continues to Expand, And the Performance of Non-residential Businesses is Outstanding

 

The Group keeps operation sustainability in mind as its strategic adjustment goes, takes the in-depth cooperation with strategic customers as a long-term fulcrum, and adheres to the expansion of all business types. As of 30 June 2023, contracted gross floor area (“GFA”) of The Group was approximately 38.69 million sq.m.. The new contracted GFA in the first half of 2023 amounted to approximately 2.27 million sq.m., of which, the new contracted GFA from independent third parties accounting for approximately 92.5% of the total new contracted GFA in the first half of 2023. GFA under management was approximately 30.64 million sq.m., representing a net increase of approximately 5.0% as compared to that of 31 December 2022. During the period, we successfully acquired 16 new projects, with a management scale of 1.93 million sq.m., while proactively withdrawing from projects with operational efficiency that did not meet expectations. At present, the Group with a total of 205 properties under management, including 170 residential properties, 25 commercial and office buildings and 10 urban services projects, serving over 250,000 households.

 

After experiencing a long period of brutal market competition, the Group is deeply learning from experience, quickly reviewing and updating the competitive strategy, so as to achieve outstanding performance in the non-residential sector in 2023. As of 30 June 2023, the number of non-residential projects bid in the market accounted for approximately 58.3% of the total market expansion in the first half of 2023. Among them, the public infrastructure track set benchmarks for projects such as Suzhou Yangtze River Delta Robotics and Artificial Intelligence Research Institute* (蘇州長三角機器人與人工智能研究院 ) , Jingdong Kunshan Huaqiao Industrial Park (Phase II)* (京東昆山花橋產業園(二期)), opening up the highlight of non-residential growth. In the GFA under management of commercial and office buildings competition, further increase in project scale. As of 30 June 2023, the new contracted GFA from our commercial and office buildings projects were approximately 250,000 sq.m., the GFA under management was approximately 1.39 million sq.m., and the revenue increased by approximately 15.6% as compared to the corresponding period in 2022.

 

Urban services represent a new breakthrough in the property industry, the Group also focuses on business expansion in the urban service sector. Especially, In the first half of 2023, the Company successfully won the bid for the Siwei Energy Industrial Park Project* (四維能源產業園項目), Guoyang Yangguang Power Industrial Park Project* (渦陽陽光電源產業園項目), a key breakthrough for the Group in the field of urban services, which contributes to the construction of urban life service concept of the Group and to the further enrichment of our business portfolio. For the first half of 2023, the total revenue from urban service projects under management amounted to approximately RMB10.26 million.

 

Actively Build a Diversified Business System and Create a New Source of Profit Increase

 

The Group offers a wide range of community value-added services in its residential properties under management to meet the changing needs of its customers and improve their quality of life. With the increasingly diversified types of community living services provided, the profitability and operation level of the Group have been greatly improved. In the first half of 2023, the revenue from community value-added services was approximately RMB40 million, increased by approximately 21.2% as compared to the corresponding period in 2022. Especially in the online retail business, we recorded an aggregate 52,900 sales orders, representing a year-on-year increase of 54.3% as compared to that of 2022, and the transaction amount amounted to approximately RMB3.30 million during the period. While continuing to improve our operational level, we strive to provide customers with a more convenient service experience.

 

The Group, as always, adheres to the service concept of “creating a warm community”, continues to build the customer community brand of Landsea Friends (詩友公社). As of 30 June 2023, we held 14 internal training sessions for more than 1,500 participants for continuous penetration of the core culture of “warm community” and establishment of a standardized system for community building to front-line employees. In order to better gather the strength of communities and connecting customers with the same interests, goals and values, the online Landsea Friends APP was officially launched with 27,845 registered users and 274,106 cumulative visits. Besides, 220 interest groups were established and in operation across the country to stimulate the community life. 325 activities were held successfully, of which 84 were organized by residents on their own, gaining a total of 26,000 customers participating in various community cultural activities with nearly 380,000 customers visits, and therefore realizing the goal of building a community with online 3-in-1 tool for the “headquarters, property management services providers and customers”.

 

In addition, in order to achieve quality scale expansion, the Group increased its deployment of potential long-term rental business during the period and further expanded its business system. In March 2023, the Group successfully acquired the asset-light business of Landsea Apartment (朗詩寓), and managed more than 10,000 asset-light entrusted management apartments, covering 13 first-and second-tier cities. In the field of longterm leasing, the Company will accelerate the layout of integrated living platforms such as properties, rental and sales and long-term rental apartments, deepen the development of the Yangtze River Delta region, and improve the regional concentration. During the period , the Group realised revenue of approximately RMB12.84 million from apartment operation and management services.

 

Persist in Exploring the Path of Sustainable Development and Continuously Improve Customer Experience and Operational Efficiency

 

The Group is committed to continuously investing the research results of green operation into community environmental governance, so that the residents of Landsea’s community can enjoy a higher quality, healthier and sustainable environment living experience. In the first half of 2023, we continued to conduct in-depth research on the construction of green and low-carbon communities. During the period, we cooperated with the Institute of Ecology and Environment of Nanjing University (Lishui) to carry out research on the topic of “carbon reduction and green operation and maintenance in communities”, and built a new system for carbon reduction and green operation and maintenance in communities from various aspects including carbon emission management, energy management, water resource management and waste management.

 

Meanwhile, the Group continues to promote the digital establishment of project service and internal operation and management to further improve customer service experience and corporate operational efficiency. On the one hand, the Group’s intelligent inspection of internal equipment and facilities covers all projects under management, realising platform-based management from maintenance and repair to warehousing and settlement, and simultaneously upgraded the intelligent management system for community visitors and parking, in which the visitor management system has achieved full project coverage, and the intelligent car parking management system was further promoted, covering more than 90% of its own projects. On the other hand, the Group continued to optimise the operating spot management system, community group purchase management system, housing rental and sales management system, home delivery service system and vehicle charging system, in order to facilitate the development of value-added services business. Regarding internal operation and management, in addition to continuously promoting the construction and optimisation of human resources and financial sharing system and platform, the Group also initiated the construction of income and expenditure management platform and taxation management platform in the first half of 2023 to further improve management efficiency and help achieve refined management.

 

Looking to the future, the Group will continue to adhere to the corporate motto of “down-to-earth and longterm ambition”, serve customers with dedication and sincerely give back to the society. We will continue to build a “warm community”, be a trustworthy life partner and a trustworthy social citizen. We will embrace unpretentiousness, stay steadfast, and achieve long-lasting success.
 

— END —
 

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.