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LANDSEA PPT

Code: 00106
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Corporate Profile


Principally engaged in property investment, development and trading, securities investment and securities trading, and provision of financial services.

Business Review - For the year ended December 31, 2012

Property Development and Trading

The property businesses of the Group are mainly property development and trading, and property investment.

In order to control the residential properties prices and the assets inflation in the PRC, the PRC government has continued to put in force a series of policies on tightened credit for transactions in property markets in 2012. However, on the premise the appreciation of Renminbi, increasing size of middle class and increase in per capita disposable income are anticipated, the investors still have intense interests in the high quality residential and office properties in the PRC. The speculative activities in PRC property markets were however under control. Similarly, the Hong Kong government initiated a series of control measures, like tightened credit, Special Stamp Duty, Buyer's Stamp Duty and etc in residential property segment, the demand for residential properties in the market and the over-heated property prices were gently suppressed. From the view point of the Company's management, in spite of the advantages, namely the interest rate remains low, economic fundamentals in the PRC and Hong Kong remain solid and investment conditions are stable, the property markets in both the PRC and Hong Kong will be adversely impacted, as more measures will be introduced by both governments to drive back the property prices to affordable level of the general public. Although the local buyers have real and keen demand for residential properties in both the PRC and Hong Kong markets, the Company's management remains to have a conservative outlook for the property markets in both regions in the coming years.

Property Investment

The Group was still in possession of Dawning Tower, situate in Shenzhen, the PRC. The building continued to secure a high occupancy rate. For the year ended 31st December 2012, the Group recognised an income of approximately HK$24,591,000, representing an increase of approximately 5.6% over the year 2011.

In order to maintain the prestigious status of Dawning Tower among commercial buildings in the locality, the Group will continue to enhance the building management quality at Dawning Tower and maintain good relationship with its customers. It is expected that Dawning Tower's occupancy rate will continue to maintain at high level in the year of 2013. High occupancy rate and effective cost control of Dawning Tower have secured steady net operating profit from the building.

For the year ended 31st December 2012, the Group recorded rental and management fee income from tenancies of approximately HK$19,486,000 from all of the Hong Kong properties of the Group (including approximately HK$18,265,000 being the rental and management fee income from the Disposal Properties in the Major and Connected Transaction for the period from 1st January 2012 to 26th December 2012), an increase of approximately HK$1,068,000 (approximately 5.8%) as compared to approximately HK$18,418,000 in 2011.
The keen demand for tenancies in the residential and commercial properties in the PRC and Hong Kong will last in 2013. However, it is expected that rental income of the Group will drop significantly in 2013 as the total lettable area of the Group remarkably decreased; but still generating steady cash inflow to the Group.
The Group will continue specialising property investment and trading in the PRC and Hong Kong in anticipation of steady return.

Capital Market Investment and Financial Services

The Group has all the time endeavoured to increase the return from current assets, therefore having diversified its investment portfolio to accommodate more current assets with higher liquidity, including securities, high investment grade debt securities and short-term financial products with defined and limited risks.

In 2012, there was satisfactory performance in the financial and capital markets in Hong Kong. For the year ended 31st December 2012, the Group recorded a profit of approximately HK$24,141,000 (2011: loss of approximately HK$8,764,000) from investment activities in capital markets of Hong Kong and the PRC. The gain in this segment was due to the recovery of the US economy and the declining impact of the sovereign debt crisis in Euro Zone, causing the healthy recovery in the capital markets in Hong Kong and the PRC during the reporting period. And the booming momentums in the financial and capital markets in Hong Kong and the PRC are expected to persist in 2013.

The Group maintained a modest operation in provisions of financial services business, providing short to medium term loans to the business associates and partners. In view of the Group's sufficient working capital in the current period, as well as in the future, and bank deposits interest rates stay low, the financial services segment contributes a satisfactory return to the Group, recording a profit of approximately HK$34,905,000 for the year ended 31st December 2012 (2011: approximately HK$14,757,000). The Group at all times emphasises the importance of risk control and executes seriously effective risk control policies, which include assessment of the credit risks involved and/or obtaining valuable securities.

Corporate Information

Substantial ShareholdersGreensheid Corporation (63.42%)
Thing On Group Limited (9.49%)
Board of DirectorsTian Ming (Chairman and Executive Director)
Shen Leying (Executive Director and Chief Executive Officer)
Xie Yuanjian (Executive Director)
Liu Da (Executive Director)
Ding Feng (Executive Director)
Wong Chung Tak, Richard (Non-Executive Director)
Xu Xiaonian (Independent Non-Executive Director)
Ding Yuan (Independent Non-Executive Director)
Lee Kwan Hung (Independent Non-Executive Director)
Company SecretaryChan Yuen Ying, Stella
Principal BankersStandard Chartered Bank (Hong Kong Limited)
Hang Seng Bank Limited
Bank of China (Hong Kong) Limited
SolicitorsChiu & Partner
AuditorsBDO Limited
Place of IncorporationBermuda
Principal Place of BusinessUnit 5103, 51st Floor, The Center, 99 Queen's Road Central, Hong Kong
Share RegistrarsComputershare Hong Kong Investor Services Limited [Tel: (852) 2862-8628]

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