EQS-News: Landsea Green Life Achieved Steady Growth In 2021, GFA Under Management from Independent Third Parties Accounting for More Than 50%, Proportion of Value-added Services Revenue Further Increased

Landsea Green Life Achieved Steady Growth In 2021, GFA Under Management from Independent Third Parties Accounting for More Than 50%, Proportion of Value-added Services Revenue Further Increased

(21 March 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 results for the year ended 31 December 2021 (the "Period").

During the Period, the Group realized a revenue of approximately RMB737 million, representing an increase of approximately 22.7% as compared with the corresponding period last year, of which revenue from property management services amounted to approximately RMB470 million, representing a year-on-year increase of approximately 14.7%. Revenue from value-added services to non-property owners amounted to approximately RMB200 million, representing a year-on-year increase of approximately 42.1%. Revenue from community value-added services amounted to approximately RMB67.1million, representing a year-on-year increase of approximately 33.7%. Contributions from property management services, value-added services to non-property owners and community value-added services accounted for 63.7%, 27.2% and 9.1% respectively of the Group's total revenue. Total proportion of value-added services revenue increased by 4.5 percentage points year-on-year. During the Period, the Group's gross profit amounted to approximately RMB186 million, with a gross profit margin of approximately 25.2%. The gross profit margin increased by 1.2 percentage points year-on-year after deducting the impact of social security subsidises in the same period last year, achieved a steady rise in profitability.

Continued expansion in scale and GFA under management from independent third parties accounting for more than 50%

The Group continued to put profound efforts in the Yangtze River Delta with steady national expansion by adhering to multi-channel expansion for sustainable scale growth. As of 31 December 2021. The Group's contracted GFA was approximately 31.97 million sq.m., of which the GFA under management was approximately 23.45 million sq.m., representing an increase of approximately 35.2% over the same period last year.

The Group actively expands types of project management business and enters the undeveloped regional markets. The proportion of GFA under management from independent third parties increased from 16.6% for 2018 to 42.3% for 2020, and further increased to 52.1% in 2021. During the Period, the Group focused on non-residential projects such as public buildings, industrial parks and commercial buildings etc. In 2021, the new non-residential area under management was approximately 0.63 million sq.m.. When the proportion of non-residential project scale further increased, it was also the first time for the Group to enter the urban service field, with our new urban service area under management of approximately 3.67 million sq.m..

Adhering to a flexible and open market-oriented cooperative attitude, the Group has reached strategic cooperation with state-owned government enterprises and regional property developers, continuously expanding its business by establishing partner companies. In 2021, unconsolidated partner companies contributed 15 new projects in total with new area under management of approximately 2.21 million sq.m. During the Period, the Group entered into an agreement and acquired 100% equity interest in Xindi Ruiyi. Upon the completion of the transfer, the contracted areas of the Group will increase by approximately 7 million sq.m..

Proportion of value-added services revenue further increased which gave a boost to form a diversified layout

The Group insisted on the standardization of service quality and enhancement of service diversification, and the average price of property management fees was steadily increased. The Group passed the ISO50001 energy management system and ISO27001 information security management system certifications in March and June 2021 successively, supporting the system for regulating energy management and information security management during the course of business operation of the Group. The average property management fee per sq.m. per month for 2021 reached RMB2.13, representing an increase of approximately 6% compared with that of the corresponding period in 2020, among which, the average property management fee for residential properties increased by approximately 2.1% to RMB1.97 while the average property management fee for non-residential properties surged by approximately 72% to RMB4.85.

In terms of value-added services to non-property owners, the Group continues to reinforce its business capabilities, vigorously develops property consultancy services with green building operation and maintenance as its core competitiveness. In 2021, the Group has signed a strategic cooperation agreement with the Building Research Establishment (BRE) and has obtained the status as the exclusive certification assessment institution of BREEAM In-Use green building operation and maintenance standards (residence) in China. In 2021, the contracted service area increased by approximately 1.58 million sq.m. and the contracted amount reached approximately RMB 10.79 million.

In terms of community value-added services, the Group stressing on customer value management for after-sales market, customer satisfaction and relationships with neighbours, strived for creating a healthy atmosphere for its customers in the communities. We adhere to the customer-oriented approach to create cultural products for community. In order to create value for customers and become their favourite, The Landsea Friends closely maintains its groups of customer and creates products for the groups. Throughout 2021, 25 groups, approximately 32% owners of which were property owners, were established under five themes. 559 activities for the community, groups and online activities, approximately 25% of which were independently organized by property owners, have started. They have covered more than 710,000 customers, 117,000 of which have participated in the event and 7,646 groups of customers have paid for the community and group activities.

Adhere to information construction and build differentiated core competence

The Group has accelerated our digital establishment to improve operational efficiency. As of 31 December 2021, our corporate service account covered all projects under management, and the WeChat accounts of our project managers and our WeCom (管家企業) covered approximately 60% of families, basically realizing the customer reach field of property management services including online payment, repair request and complaint.

The intelligent inspection of internal equipment and facilities of the Group covers all projects under management, realizing platform-based management from maintenance to repair and settlement. The Group has upgraded the intelligent management systems for community visitors and parking to enhance customers' experience and better adapt to the needs of epidemic prevention and management, further improving the operational efficiency of projects. The operating spot management system for online space for public resource management in relation to the community has improved the efficiency of resource and reduced human resource investment. The construction of the human resource and financial sharing system and platform was completed, such that management efficiency could be further improved. The proportion of employee benefit expenditure to total costs and expenses steadily decreased from approximately 65% for 2018 to approximately 56% in 2021.

Continue to maintain strategic concentration and building a high-quality and sustainable future

In the first half of 2021, the Group published its first annual Environmental, Social and Governance (ESG) report. With reference to international standards such as the Global Sustainable Development Goals, the ISO37120 Sustainable Cities and Communities Standard, the SUC Sustainable Cities and Communities Standard and the ISC Sustainable Communities Standards, we have developed the three dimensions for sustainable communities that are more inclusive, safer and healthier. Meanwhile, we will accelerate the promotion and layout for green building operation and management, continue to improve our professional operation and maintenance capabilities in eight major aspects, including disaster prevention and resilience, health and well-being and energy consumption management, which help communities improve their quality, reduce energy consumption and carbon emissions, provide residents with a more eco-friendly and healthier community life, and facilitate the achievement on sustainable management for an increasing number of green buildings.

Looking forward to 2022, the property management industry will still be in the golden development cycle characterized by fast growing and extensive development room and service boundaries. As a green living service provider, the Group will adhere to the customer-oriented principle, carry out business innovation based on customers' demand, and continue to build up capabilities for green, low-carbon and warm living services. By combining our own resources and talents, the Group could accelerate service layout for a variety of living such as elderly care, housekeeping, asset operation, green home renovation and alteration, community retail, neighborhood and community as well as comprehensive urban services. Meanwhile, the Group will continue to promote the establishment of standardized services, attain quicker response and higher problem solving efficiency from property owners through digitalization, and continuously improve our professional level and quality of services. The Group will embrace dreams and ambition, maintain resilience, do the right things regardless of difficulties, promote the quality growth of scale on the basis of continuous innovation, and accelerate our transformation and upgrading from traditional property companies to life service platforms.

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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 24th among the "2021 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 2020.

Landsea Green Life Achieved Steady Growth In 2021, GFA Under Management from Independent Third Parties Accounting for More Than 50%, Proportion of Value-added Services Revenue Further Increased

(21 March 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 results for the year ended 31 December 2021 (the "Period").

During the Period, the Group realized a revenue of approximately RMB737 million, representing an increase of approximately 22.7% as compared with the corresponding period last year, of which revenue from property management services amounted to approximately RMB470 million, representing a year-on-year increase of approximately 14.7%. Revenue from value-added services to non-property owners amounted to approximately RMB200 million, representing a year-on-year increase of approximately 42.1%. Revenue from community value-added services amounted to approximately RMB67.1million, representing a year-on-year increase of approximately 33.7%. Contributions from property management services, value-added services to non-property owners and community value-added services accounted for 63.7%, 27.2% and 9.1% respectively of the Group's total revenue. Total proportion of value-added services revenue increased by 4.5 percentage points year-on-year. During the Period, the Group's gross profit amounted to approximately RMB186 million, with a gross profit margin of approximately 25.2%. The gross profit margin increased by 1.2 percentage points year-on-year after deducting the impact of social security subsidises in the same period last year, achieved a steady rise in profitability.

Continued expansion in scale and GFA under management from independent third parties accounting for more than 50%

The Group continued to put profound efforts in the Yangtze River Delta with steady national expansion by adhering to multi-channel expansion for sustainable scale growth. As of 31 December 2021. The Group's contracted GFA was approximately 31.97 million sq.m., of which the GFA under management was approximately 23.45 million sq.m., representing an increase of approximately 35.2% over the same period last year.

The Group actively expands types of project management business and enters the undeveloped regional markets. The proportion of GFA under management from independent third parties increased from 16.6% for 2018 to 42.3% for 2020, and further increased to 52.1% in 2021. During the Period, the Group focused on non-residential projects such as public buildings, industrial parks and commercial buildings etc. In 2021, the new non-residential area under management was approximately 0.63 million sq.m.. When the proportion of non-residential project scale further increased, it was also the first time for the Group to enter the urban service field, with our new urban service area under management of approximately 3.67 million sq.m..

Adhering to a flexible and open market-oriented cooperative attitude, the Group has reached strategic cooperation with state-owned government enterprises and regional property developers, continuously expanding its business by establishing partner companies. In 2021, unconsolidated partner companies contributed 15 new projects in total with new area under management of approximately 2.21 million sq.m. During the Period, the Group entered into an agreement and acquired 100% equity interest in Xindi Ruiyi. Upon the completion of the transfer, the contracted areas of the Group will increase by approximately 7 million sq.m..

Proportion of value-added services revenue further increased which gave a boost to form a diversified layout

The Group insisted on the standardization of service quality and enhancement of service diversification, and the average price of property management fees was steadily increased. The Group passed the ISO50001 energy management system and ISO27001 information security management system certifications in March and June 2021 successively, supporting the system for regulating energy management and information security management during the course of business operation of the Group. The average property management fee per sq.m. per month for 2021 reached RMB2.13, representing an increase of approximately 6% compared with that of the corresponding period in 2020, among which, the average property management fee for residential properties increased by approximately 2.1% to RMB1.97 while the average property management fee for non-residential properties surged by approximately 72% to RMB4.85.

In terms of value-added services to non-property owners, the Group continues to reinforce its business capabilities, vigorously develops property consultancy services with green building operation and maintenance as its core competitiveness. In 2021, the Group has signed a strategic cooperation agreement with the Building Research Establishment (BRE) and has obtained the status as the exclusive certification assessment institution of BREEAM In-Use green building operation and maintenance standards (residence) in China. In 2021, the contracted service area increased by approximately 1.58 million sq.m. and the contracted amount reached approximately RMB 10.79 million.

In terms of community value-added services, the Group stressing on customer value management for after-sales market, customer satisfaction and relationships with neighbours, strived for creating a healthy atmosphere for its customers in the communities. We adhere to the customer-oriented approach to create cultural products for community. In order to create value for customers and become their favourite, The Landsea Friends closely maintains its groups of customer and creates products for the groups. Throughout 2021, 25 groups, approximately 32% owners of which were property owners, were established under five themes. 559 activities for the community, groups and online activities, approximately 25% of which were independently organized by property owners, have started. They have covered more than 710,000 customers, 117,000 of which have participated in the event and 7,646 groups of customers have paid for the community and group activities.

Adhere to information construction and build differentiated core competence

The Group has accelerated our digital establishment to improve operational efficiency. As of 31 December 2021, our corporate service account covered all projects under management, and the WeChat accounts of our project managers and our WeCom (管家企業) covered approximately 60% of families, basically realizing the customer reach field of property management services including online payment, repair request and complaint.

The intelligent inspection of internal equipment and facilities of the Group covers all projects under management, realizing platform-based management from maintenance to repair and settlement. The Group has upgraded the intelligent management systems for community visitors and parking to enhance customers' experience and better adapt to the needs of epidemic prevention and management, further improving the operational efficiency of projects. The operating spot management system for online space for public resource management in relation to the community has improved the efficiency of resource and reduced human resource investment. The construction of the human resource and financial sharing system and platform was completed, such that management efficiency could be further improved. The proportion of employee benefit expenditure to total costs and expenses steadily decreased from approximately 65% for 2018 to approximately 56% in 2021.

Continue to maintain strategic concentration and building a high-quality and sustainable future

In the first half of 2021, the Group published its first annual Environmental, Social and Governance (ESG) report. With reference to international standards such as the Global Sustainable Development Goals, the ISO37120 Sustainable Cities and Communities Standard, the SUC Sustainable Cities and Communities Standard and the ISC Sustainable Communities Standards, we have developed the three dimensions for sustainable communities that are more inclusive, safer and healthier. Meanwhile, we will accelerate the promotion and layout for green building operation and management, continue to improve our professional operation and maintenance capabilities in eight major aspects, including disaster prevention and resilience, health and well-being and energy consumption management, which help communities improve their quality, reduce energy consumption and carbon emissions, provide residents with a more eco-friendly and healthier community life, and facilitate the achievement on sustainable management for an increasing number of green buildings.

Looking forward to 2022, the property management industry will still be in the golden development cycle characterized by fast growing and extensive development room and service boundaries. As a green living service provider, the Group will adhere to the customer-oriented principle, carry out business innovation based on customers' demand, and continue to build up capabilities for green, low-carbon and warm living services. By combining our own resources and talents, the Group could accelerate service layout for a variety of living such as elderly care, housekeeping, asset operation, green home renovation and alteration, community retail, neighborhood and community as well as comprehensive urban services. Meanwhile, the Group will continue to promote the establishment of standardized services, attain quicker response and higher problem solving efficiency from property owners through digitalization, and continuously improve our professional level and quality of services. The Group will embrace dreams and ambition, maintain resilience, do the right things regardless of difficulties, promote the quality growth of scale on the basis of continuous innovation, and accelerate our transformation and upgrading from traditional property companies to life service platforms.

--- 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 24th among the "2021 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 2020.