Landsea Green Properties Doubles -2-

DJ EQS-News: Landsea Green Properties Doubles Revenue in 1H 2017 'Product-differentiation, Asset-light and Market globalization' Strategy Achieves Significant Results in Transformation and Upgrades

Dow Jones received a payment from EQS/DGAP to publish this press release.

EQS-News / 22/08/2017 / 19:26 UTC+8 
 
*Landsea Green Properties Doubles Revenue in 1H 2017 
"Product-differentiation, Asset-light and Market globalization" Strategy 
Achieves Significant Results in Transformation and Upgrades * 
 
Hong Kong, August 21, 2017 - *Landsea Green Properties Co., Ltd.*, 
("Landsea" or the "Company" and its subsidiaries collectively the "Group", 
HKEX stock code: 00106), China's leading integrated green-technology 
property development services company, is pleased to announce its unaudited 
interim results for six months ended 30 June 2017 ("the period under 
review"). 
 
In the first half of 2017, the Group continued to deepen the strategy of 
"product-differentiation, asset-light and market-globalization", actively 
developing various property projects, and achieving satisfactory results in 
development and sales. During the period under review, operation income of 
the Group amounted to RMB2,314 million, representing a year-on-year increase 
of 191.2%. The total profit of the Group amounted to approximately RMB129.6 
million. Excluding the effect of net exchange gains, the total profit would 
have been approximately RMB244.4 million, representing a significant 
increase of 2.2 times as compared to the corresponding period last year. 
 
During the period under review, the Group recorded contracted sales under 
"Products of Landsea" of RMB9,851 million with a contracted gross floor area 
of 443,096 square meters. Among which, contracted sales derived from 
entrusted development management services projects by independent third 
parties amounted to RMB4,357 million, with contracted gross floor areas of 
210,461 square meters, representing an increase of 200% and 97%, 
respectively, as compared to the last period. This reflects the 
substantially enhanced development and management services capability of 
Landsea and an increasing recognition by the market, and verifies Landsea's 
successful transformation into an advanced asset-light enterprise engaging 
in the provision of development, management and real estate financing 
services. 
 
In terms of new projects, Landsea capitalized on its strengths and 
cooperated with business partners to successfully secure numerous quality 
projects by means of off-market approaches, including land acquisition, 
merger and acquisition of equity, and equity participation in project 
companies. Landsea acquired a total of 12 projects across Chengdu, Xian, 
Wuxi, Hefei, Hangzhou and the U.S., and acquired 2 development management 
projects by entrusted independent third parties. The total gross floor areas 
secured were approximately 1,564,116 square meters in aggregate, with an 
increase of approximately 1,118,027 square meters in gross floor areas of 
projects in which the Group held equity interest. 
 
Adhering to the concept of "project-differentiation", Landsea has focused on 
building residences with innovative green technology, and combining 
ecological green environments. Projects are expected to be upgraded from 
product 1.0 to product 3.0 at the end of first half of this year. The 3.0 
product technology system series represents the most advanced technology of 
Landsea. While ensuring the basic requirements of constant humidity, 
temperature and oxygen, the technology system conducts multi-dimensional 
exploration of sound, light, intelligence, energy saving and personalization 
on the basis of passive energy principles; equipped with energy-saving 
architecture, ceiling radiation and floor air distribution, it eliminates 
95% of smog, and achieves S1 standards of Finland for Formaldehyde control 
and controls TVOC (Total Volatile Organic Compound). With its outstanding 
green technology research achievements, Landsea was ranked as China's Top 10 
Innovative Real Estate Developers and Landsea Taihu Lake Green Building R&D 
Base was awarded the medal of "Green Building R&D Demonstration Base". 
 
Landsea has consolidated its competitive edge in launching its 
self-innovates product, Le Mansion, a product different from the 1.0 to 3.0 
product system, it adheres to the principle of "buildings supplemented by 
equipment". Landsea's Le Mansion establishes a highly functional and 
intelligent system that integrates air conditioning and convectional 
refrigeration for buildings, to provide its tenants with healthier, more 
comfortable, energy-saving and environment-friendly residential products. 
 
During the period under review, Landsea continued to explore asset-light 
businesses such as minority interest cooperation, joint development and 
entrusted development, etc. The Group has also identified new growth 
opportunities and enhanced operational capabilities of office buildings, 
commercial properties and lease properties. In addition to traditional 
residential development business, the "banyan tree scheme" is a 
comprehensive sub-brand system that covers property financing services, 
development and design, decoration, property and elderly care services, 
achieving vertical integration capabilities. 
 
In January, Landsea acquired a Ningbo project solely for commercial purposes 
and a Hangzhou project for commercial and residential purposes. In February, 
Green Fir Investment acquired office premises in Yangpu, Shanghai. In May, 
Landsea started to gain presence in Xian, Shaanxi Province, planning to 
develop residential and commercial property. These activities not only mark 
an important milestone for the national presence of the Group, they also 
demonstrates the expansion of the scale of the property fund platform, the 
strengthening of merger & acquisition capabilities and the optimization of 
the multifunctional platform of investment, financing and asset management. 
 
The "Market-internationalization" strategy has been explored and intensified 
during the period under review. Landsea has currently secured 11 projects 
across the main cities of East Coast and West Coast in the U.S. In the first 
half of 2017, the total contracted sales of the projects in the U.S. 
amounted to RMB445.6 million, with sales areas of 7,330 square meters. 
Income from sale of properties of RMB112.2 million was reported during the 
period, representing an increase of 27% as compared to the corresponding 
period last year. The total recognized sales areas were approximately 3,614 
square meters. At present, sales of Kingswood in East Bay, San Francisco has 
come to an end. Portola project in Orange County, Southern California, and 
the Sunnyvale project in Silicon Valley, Northern California will also be 
put on sale. In April 2017, the Avora project in New York won ten awards 
issued by SAM and it was honored as "the Best Community in 2017", in 
recognition of Landsea's outstanding performance in the project's 
residential design, marketing and sales. The project was capped in May this 
year. 
 
In terms of financial condition, the Group continued to optimize its capital 
and debt structure. As at 30 June 2017, the net debt to equity ratio of the 
Group was 76.3%, representing a decrease of 25.5 percentage points as 
compared to 31 December 2016. The Group's debt to total assets ratio was 
27.3%, representing a decrease of 6.5 percentage points as compared to 31 
December 2016. 
 
*Mr. Tian Ming, Chairman of the Board of Landsea Green Properties*, 
concluded: "In 2017, the real estate industry bid farewell to the rapid 
growth in price and sales volume over the past decade. It is expected that 
the government's macroeconomic regulations and control of properties will 
not be relaxed. We believe that the market concentration of the Chinese 
property industry will continue to rise and regional segregation will become 
increasingly obvious in the future. 
 
The Group launched "Landsea Apartment", a long-term rental apartment brand 
at the beginning of 2017. It is a new project which is in line with market 
upgrade and pursues the strategy of differentiation. Landsea Apartment has 
secured 25 projects with 5,776 apartments in various cities, including 
Beijing, Shanghai, Shenzhen, Hangzhou, Nanjing, Suzhou and Shenzhen, 
covering different areas including business districts, high-tech industrial 
parks, university districts and downtown and commercial districts. The Group 
intends to develop in 17 first and second-tier major cities in the next 
three years and become one of the leading brands in the domestic long-term 
rental apartment market. 
 
Looking ahead, capitalizing on its smooth progress in transformation, 
Landsea will become an international professional development service 
provider committed to vertical business integration and environmental 
protection in one or two years. In the future, Landsea will shift from 
product-oriented to customer-oriented to provide more comfortable and more 
environmental-friendly products and higher quality services for its 
customers, and actively explore and implement the 2.0 business model." 
 
- End- 
 
*About Landsea Green Properties Co., Ltd* 
Landsea Green Properties Co., Ltd. (Company website: www.landsea.hk) is the 
only listed platform under the Landsea Group (Group website: 
www.landsea.cn), which is engaged in green residential property development. 
Its businesses include property investment, development and management in 
China and the U.S. 
 
With its green construction products and its advancing capabilities in 
effecting vertical integration of property development, Landsea Green 
Properties has resolutely executed the strategy of "Product-differentiation, 
Asset-light and Market-globalization", transforming from a traditional 
developer to an asset-light company and a green business focusing on 
providing property development services. 
 
*For enquiries, please contact Hill+Knowlton Strategies Asia:* 
Linda Pui Sophie Liu 
Tel: (852) 2894 6378 Tel: (852) 2894 6318 
Email: linda.pui@hkstrategies.com Email: sophie.liu@hkstrategies.com 
 
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Document title: Landsea Green Properties Doubles Revenue in 1H 2017

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August 22, 2017 07:27 ET (11:27 GMT)

'Product-differentiation, Asset-light and Market globalization' Strategy 
Achieves Significant Results in Transformation and Upgrades 
 
22/08/2017 Dissemination of a Financial Press Release, transmitted by EQS 
Group. 
The issuer is solely responsible for the content of this announcement. 
 
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