LANDSEA GREEN GROUP CO., LTD. (Stock Code: 106)Annual Profit Substantially Grows, Differentiation Advantages Become More Apparent
 
Apr 01, 2019
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LANDSEA GREEN GROUP CO., LTD. 朗詩綠色集團有限公司 (Stock Code: 106)

Annual Profit Substantially Grows, Differentiation Advantages Become More Apparent

(25 March 2019, Hong Kong) Landsea Green Group Co., Ltd. ("Landsea" or the "Company", together with its subsidiaries collectively known as the "Group", HKEx Stock Code: 0106.HK), a leading property development operator and green life service provider in China, is pleased to announce its annual results for the twelve months ended 31 December 2018 (the "Period"). The net profit of the Group for the Period reached RMB 1.44 billion, representing an increase of 99.9% year-on-year. The return of equity for the Period was 30.3%, representing an increase of 10.8 percentage points from a year ago and substantially outperforming its peers.

In 2018, the impacts of the structural adjustment in real estate industry were obvious. The Company overcame various negative factors, adhered to prudent financial strategy and continued to optimize the debt structure. As at the end of 2018, the Company's net gearing ratio was 39.8% (including liabilities on and off its balance sheet), which compared favorably with the market average. With a current ratio of 8.7 times, the Company possessed adequate cash resources, which laid a solid foundation for its future development. Moreover, the Company vigorously diversified its funding channels and took advantage of the favorable market conditions to complete the issuance of US$200 million green bonds in the first half of 2018. The bonds received Standard & Poor's highest global rating for its green evaluation.

The Group made persistent R&D efforts to expand its product portfolio. As a result, it possessed enhanced capability to develop differentiated residential projects. At the same time, it actively explored various types of innovative businesses, including the retrofitting of old residential buildings, the transformation of green offices, business model transformation and community business. With its core strengths in product differentiation, the Group established strategic cooperation with various investment institutions and famous medium and large-sized enterprises, thereby complementing with each other. Besides, it made steady progress in creating a business model which requires small investment in project development with the Company focuses on project management. In 2018, the revenue from project development and management services amounted to approximately RMB1 billion, representing a 32.8% year-on-year growth; the after-tax profit increased by 11.7% year-on-year to approximately RMB350 millions. Its light asset strategy produced remarkable results.

The Group adhered to the strategy of value investment and avoided the bidding of expensive land plots. It acquired 28 projects in 2018 and their saleable value amounted to RMB38.8 billion. More than 80% of the new projects were obtained through mergers and acquisitions, equity investments and entrusted development. As a result, their acquisition costs were substantially reduced. In 2018, the Group achieved contracted sales of approximately RMB 38.1 billion, representing a year-on-year increase of 19.0%.

Looking ahead into 2019, Mr. Tian Ming said, "with a clear strategy and competitive advantages of differentiated products, we will overcome various challenges and achieve higher growth in operating results, thereby creating greater value to shareholders."

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About Landsea Green Group Co., Ltd.

Landsea Green Group Co., Ltd. (Stock Code: 0106.HK) has been one of the Top 100 Chinese Real Estate Enterprises in China for nine consecutive years. It is a leading property development operator and green life service provider in China. Landsea has been implementing a green product-centered and differentiated development strategy since 2004. The company's business network covers all major economic regions of China as well as the first-tier cities in the United States.

This press release is issued by PRChina Limited on behalf of Landsea Green Group Co., Ltd.

Investor and Media Enquiries:

PRChina Limited

Contract: Doris Au Yeung/Ray Sun/Jack Liu
Tel: 852-2522 1838
Email: landsea@prchina.com.hk