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Broad Homes – diversified products to help green and low-carbon development of urban and rural construction

HONG KONG, Mar 14, 2022 - (ACN Newswire via SEAPRWire.com) - The year 2022 is an important year to enter into the comprehensive construction of a socialist modern country and march towards the second hundred-year goal, and it is remarkable how the construction industry can take a new "road to catch up". As the promoter and practitioner of China's construction industrialization, Changsha Broad Homes Industrial Group Co., Ltd. (hereafter referred to as Broad Homes, ticker 2163.HK) makes urban and rural spaces more efficient, green, environmental friendly and sustainable with its constantly upgraded and improved multi-product matrix and technology system.Broad Homes BOX Modul Guesthouse in Baimian Mountain Tourist AttractionDiversified product system to help urban and rural construction green low-carbon developmentDuring this year's National People's Congress and Chinese People's Political Consultative Congress (also known as "National Two Sessions"), green and low-carbon are amongst the most discussed topics. The government work report put forward a number of specific tasks to achieve dual carbon goals. Industrialization of construction is a necessary path for the construction industry to achieve green transformation and high-quality development, and a key grasp to win the future. In recent years, Broad Homes has insisted on ecological priority and green low-carbon development, continuously increased R&D of green low-carbon buildings by accumulating product and technology advantages, customized and differentiated products and established a diversified product portfolio. Products to highlight:Broad Homes' fully prefabricated modular building product - BOX Modul - which was quickly adopted for use by sectors such as cultural tourism, public buildings, office space and medical stations. Since its launch in July 2021, projects were completed and delivered to over 16 provinces in China. High-quality apartments for employee housing, which will contribute to the construction of guaranteed rental housing during the 14th Five-Year Plan period and are expected to solve the housing issues of new citizens and young people.Intelligent parking complexes, which focus on solving the immediate needs of the public and relieving urban traffic pressure, while integrating new commercial needs. Broad Home's Bhouse products have been well applied in cities, counties, and townships, in response to the existing demand for high-quality development of urban and rural construction. The construction efficiency of multi-story fully assembled and integrated building products has been greatly improved, with finished products delivered within 100 days and multi-story subdivisions delivered completely within six months; Bhouse products have precisely launched the rural self-built housing market, not only effectively improved the quality of rural habitat and helping the construction of livable villages, but also establishing the construction. It also establishes a B-to-C business model in which the products are sold to end users. From the city to the countryside, Broad Homes has painted the most beautiful colors of China's urban and rural development and paved the way to greener development. Broad Homes has resonated with the people's livelihood and enterprise development and stepped into the road of high-quality development. Tang Fen, Director and President of Broad Homes, said, "Since its establishment, Broad Homes has taken energy conservation and environmental protection as its core purpose, whether to promote the change of construction production methods or to develop any products and technologies, hoping that the industry can further upgrade to green sustainability and realize low-carbon, resource-saving and environment-friendly developments. In the future, we will continue to maintain green technology product leadership and create value for both the industry and society."Productivity upgrade to promote the construction of the industrial parks During this year's National Two Sessions, "construction of guaranteed rental housing" was mentioned by many representatives. The Opinions of the General Office of the State Council on Accelerating the Development of Guaranteed Rental Housing released in July 2021 clearly states that during the 14th Five-Year Plan period, in accordance with the principle of balancing employment and housing, support should be given to the use of collective business construction land in urban areas, near industrial parks or areas with convenient transportation for the construction of subsidized rental housing, or the upper limit of the proportion of land area for the construction of administrative office and living service facilities in industrial parks to the total land area of the project should be increased from 7% to 15%. This will promote the integration of industry with city and achieve the basic principle of matching supply and demand and balancing employment and housing. Therefore, the improvement of residential facilities in industrial parks and helping talents to "live and work in peace and happiness" have received wide attention.At present, the newly upgraded high-quality youth apartment series products of Broad Homes can flexibly meet the demand for large-volume community-based and high-end rentals. The multi-story talent apartments can be delivered in 50 days and the high-rise talent apartments can be delivered in 150 days, which can better and faster solve the housing problems of new citizens and young people; and the BOX Modul apartment products, which are built with modular space product technology, truly realize "building houses like a car" and "delivering houses like cars", effectively promoting regional development, connecting talents to industrial parks, and effectively improving city efficiency. In addition to significantly shortening the construction period, Broad Homes BOX Modul apartment products are also highly advantageous in terms of building quality, low-carbon and energy saving factory production all while meeting the requirements of the current national specifications. BOX moduls combinations are extremely flexible, which can better balance the cost management between individual needs and standardized modulus, solving the problems of long construction period, high cost and low quality of traditional moduls, effectively saving money and time.In order to achieve a higher level of industry-city integration, match supply and demand, and achieve a balance of employment and residence, Broad Homes continues to advance in product power. Nowadays, young people have become the main force of national construction, and they attach more importance to comfort, privacy, social aspects of living environment. On the premise of meeting the requirements of rental housing and basic services, the Broad Homes BOX Modul apartments for talents provide a whole floor of common area to create a rich sharing space, which integrates living and social life. In addition, Broad Home residences also focuses on the needs of young people and enriches the construction of supporting facilities in the community to fit the differentiated and diversified rental housing needs. Copyright 2022 ACN Newswire. All rights reserved. (via SEAPRWire)

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“Carbon reduction” opportunities and Broad Homes’ growth potential

HONG KONG, Dec 1, 2021 - (ACN Newswire via SEAPRWire.com) - The second round of land auction rules in 22 cities has been adjusted, and competitive quality has become a standard feature in the multi-city land auction market. An enterprise's vitality, product strength, innovation ability and product competitiveness are becoming the underlying logic to drive the industry into high-quality development.Broad Homes (Ticker: 2163.HK) is the first company in the prefabricated construction industry to IPO on the HKEX. The Company has accumulated more than 20 years of technological and industrial capabilities. The industry believes that Broad Homes will help lead the construction industry towards resource integration and more environmental-friendly developments.Opportunities under carbon reduction This year, "carbon peak, carbon neutral" was formally written into the government work report, the "14th Five-Year Plan" included policies to accelerate the promotion of green and low-carbon development. Since the construction industry is a key contributor of carbon emissions, companies related to green buildings will usher in new development potential. In fact, green building development is already on the rise. In June 2021, 15 departments including the Ministry of Housing and Urban-Rural Development issued the "Opinions on Strengthening Green and Low-Carbon Construction in County Towns" document, clarifying that the county will vigorously develop green buildings and building energy conservation, including the promotion and application of green building materials, the development of new construction methods such as prefabricated steel structures, and the full implementation green construction, etc.Prefabricated buildings are highly energy-efficient and can reduce carbon emissions by more than 40% throughout its life cycle, according to CITIC Securities. From 2016 to 2020, the CAGR of newly started prefabricated buildings nationwide reached 53%, and the proportion of newly started prefabricated buildings reached 20.5% in 2020. Broad Homes' path to carbon reductionFacing positive market prospects, Broad Homes' strategy to grasp development opportunities is industrialized construction. Tang Fen, Board Director and President of Broad Homes, commented: "Industrialized construction is the most effective technological path for the construction industry to achieve the dual-carbon goal." Broad Homes will continue to invest in technology and product R&D to consistently enhance product characteristics. "Simply put, construction industrialization is like building a house like a car. This methodology is currently in its early stages of development in China", Tang Fen added.Compared with traditional engineering construction models, prefabricated buildings have the following two advantages: 1) prefabricated construction can effectively shorten the construction period and improve construction efficiency. During the early stage of construction, prefabricated buildings go through stages of detailed and standardized design, shortening the construction period by more than 1/3 compared to buildings built using traditional construction methods. 2) Prefabricated construction helps to achieve energy saving, environmental protection and low carbon emissions throughout the entire construction cycle, Ping An Securities' research report indicated.As the industry leader for prefabricated construction, Broad Homes has greater development advantages. Firstly, Broad Homes is the first company in the industry to fully adopt the full-process digital information system. Secondly, Broad Homes is also the first company to obtain exclusive intellectual properties for the entire industry technology chain.At present, Broad Homes has 8 generations of product systems, a leading national information system, an accumulation of experience in building 200 million square meters of construction projects, and a strategic factory layout in China. As of June 2021, Broad Homes has 15 wholly owned PC factories and 60 joint PC factories that are currently under operations.Future growth is empowered by digitalizationWhen industrialized construction reaches productization, it is necessary to gradually move away from passively meeting customer needs to actively meeting them. Broad Homes believes digitalization should be adopted to improve efficiency and push for product innovation. Tang Fen commented: "How to return building construction to the essence of the product itself relies on realizing the values of industrialization and digitalization." Broad Homes began to actively engage in digitalization capabilities in 2014. Currently, the Company's operation is entirely driven by the data system. The front-end production and operation are driven by demand, and the influence of human factors in the entire production and operation process is reduced by 95%.In March 2021, Broad Homes officially released the BOX Modul product. Since the trial production in July this year, a total of more than 100 million new orders have been contracted in three months, showing positive demand from the market. It is reported that the BOX Modul is built ready-to-live with a wide range of application scenarios including cultural tourism, homestays, public service spaces, etc. This product allows the realization of more innovative models of living and usage of land. Take employee apartment as an example, in 2021, Broad Homes upgraded the settlement solution for employees. The multi-story employee apartment can be delivered in just 50 days, and high-rise employee apartment can be delivered in 150 days, which meets the differentiated market demand for rental housing in different cities. Regarding the successful innovation of products, Hu Shengli, the Co-President of Broad Homes and CEO of Broad Box Technology Co., Ltd., commented: "The Company's independently developed whole-process digitalized information system, PC-CPS, integrates all parts of the industrial chain including design, manufacturing, and construction and at the same time offering flexible manufacturing. This system has set a good foundation to produce BOX-Modul products." He also commented: "Through transformation and upgrades, the PC-CPS system can be implemented into BOX-Modul products. We hope in a year of continuous efforts, we can realize digitalization through the BOX-Modul's CPS system and with feedback from the client end, we hope to further enhance and upgrade our product."In his view, in the near future, BOX-Modul products can be upgraded and iterated from hardware to software just like the iPhone. Digital technology provides this possibility for the BOX-Modul. Copyright 2021 ACN Newswire. All rights reserved. (via SEAPRWire)

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Intensified Real-Estate Market Regulation Ushers New Opportunity for Broad Homes

HONG KONG, Sep 28, 2021 - (ACN Newswire via SEAPRWire.com) - Recent concerns surrounding the debt-laden property developer have crippled all sectors of the China real estate market. Under the superposition of the new normal - COVID-19 pandemic, China's "14th Five-Year Plan" & "Three Red Lines" policy, and double concentration - China's real estate market is undergoing one of the most extensive reforms over the past two decades.The market is overly worried about the possible collapse of the debt-laden property developer and its potential impacts, and negative market sentiment drove Broad Homes' valuation to hit bottoms. Broad Homes' management commented: "The Company does not have back-to-back contracts and direct accounts receivables with the debt-laden property developer; most projects are settled in cash or acceptance bills. Additionally, the Company has also strengthened controls over possible risks of default on related projects from a year ago."Regulation tightening of China's real estate industry can be regarded as a fresh new opportunity for Broad Homes' strategic business development. Broad Home's "two-wheel" business strategy - To-B business (PC units) + To-C business (total prefabricated construction) - is in line with the "14th Five-Year Plan" and has the potential to reflect the underlying benefits of prefabricated building products, such as higher standardization, lower cost, and shorter construction timespan. In the "14th Five-Year Plan", the central government further strengthened commitments to "effectively increase affordable housing, support the construction of rental housing, improve long-term rental policy, and expand the supply of affordable rental housing." Broad Homes is the first mover amongst its peers to launch corresponding product lines within the fully prefabricated and movable building sector (B-House and BOX Module). The Company is expected to disclose B-House and BOX Module product sales figures in Q3 2021. The overall business structure of Broad Homes is solid, with about 50% of the Company's revenue coming from social security and public housing projects. According to Broad Homes' announcement on September 24, 2021, about 188 million domestic unlisted shares will be converted into H shares, and these shares are listed on the HKEX on September 27. Post the Company's full circulation of H shares, trading liquidity and market value will likely improve as the market regresses to the true underlying value of the business. The proportion of the Company's tradable shares increased from 25% to 63%, making share buyback highly likely, given the current low valuation; controlling shareholders may also increase shareholding. Since the beginning of 2021, Broad Homes' stock price took a hard hit due to the COVID-19 pandemic and overselling of all related sectors of the China real estate market. However, with a closer look at Broad Homes' core business, according to 1H21 interim results, the Company's PC (Preset Concrete) business has shown a steady growth of 19.6% YoY. Meanwhile, new product lines of the To-C business have achieved initial success in the market, shedding a positive light on Broad Homes' mission to achieve both "scale + efficiency." Copyright 2021 ACN Newswire. All rights reserved. (via SEAPRWire)

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Nursing homes to receive antigen rapid test kits by next week

SINGAPORE - All nursing homes should receive antigen rapid test (ART) kits by next week, in a move to allow more frequent Covid-19 testing. The Agency for Integrated Care (AIC) said in a statement on Thursday (Sept 16) that the stepped-up testing will allow any infection to be detected earlier. Nursing homes are already familiar with the use of the kits, it added. This comes as more nursing homes are seeing Covid-19 clusters, with Orange Valley Nursing Home in Simei and Jamiyah Nursing Home in West Coast added to the list on Wednesday. The other two affected are Ren Ci nursing home in Bukit Batok, and All Saints Home in Jurong East. According to figures available on Friday morning , the Orange Valley home had 14 cases, Ren Ci had 34, the Jamiyah home 13, and All Saints Home 12. On Sunday, the Ministry of Health (MOH) said there were 42 Covid-19 cases detected across 18 aged-care facilities and providers in the last two weeks. To reduce the spread of Covid-19 in such facilities, all in-person visits to residential care homes were suspended from Monday to Oct 11. MOH said: "We will also be strengthening the testing regime for both staff and residents of aged-care facilities, and will use ART more frequently, to complement the current surveillance testing in these settings." Nursing homes affected by a shortage of staff as a result of quarantine orders will also be supported with additional manpower, AIC said. As at Thursday, transmission among staff and residents had been detected in three of the four nursing home clusters. At least 14 staff across the three nursing homes have been infected. The Covid-19 booster dose exercise for residents started on Wednesday, conducted by mobile vaccination teams. Vaccinated residents who have reached the six-month mark after their second dose of the Covid-19 vaccine will be offered the booster dose. AIC also urged all next-of-kin of unvaccinated residents in nursing homes to have their loved ones vaccinated as soon as possible. More on this topic   Related Story Covid-19: What happens when you test positive?   Related Story Visits to residential care homes suspended till Oct 11   Related Stories:  Related Story More Covid-19 patients can recover at home, shorter quarantine: New measures at a glance Related Story South Korea planning to live 'more normally' with Covid-19 after October Related Story Useful protection or not warranted? Third Covid-19 jab debate rages Related Story French ex-health minister charged over handling of Covid-19 pandemic Related Story The way we were: Denmark lifts all Covid-19 curbs Related Story 'My saviour': Hanoi's tiny balconies a refuge in Covid-19 lockdown Related Story Unvaccinated people are 11 times more likely to die of Covid-19: US CDC Related Story In world first, Cuba starts Covid-19 jabs for toddlers Related Story New Covid-19 variant of interest, Mu, unlikely to overtake Delta: Experts Related Story A look at what we know about Japan's contaminated Moderna Covid-19 vaccines

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Broad Homes (02163.hk) Well-positioned for Revenue of RMB4.92 Billion in 2021, an Expected Increase of over 80%

HONG KONG, Mar 1, 2021 - (ACN Newswire) - On February 26, 2020, Broad Homes (02163.HK) released its annual results announcement for 2020. In 2020, it achieved total revenue of RMB2,613.9 billion, a year-on-year decrease of 22.4%, gross profit of RMB926.8 million, a year-on-year decrease of 19.0%, net profit of RMB216.4 million, a year-on-year decrease of 68.0%, and an increase in gross profit margin from 34.0% in 2019 to 35.5% in 2020.Broad Homes remarked that the decline in revenue was on one hand attributable to delayed construction progress of certain of its joint factories due to the COVID-19 pandemic, and on the other, a decrease in gains from loss of significant influence in associates by over 70% in 2020 from the corresponding period last year as a result of an adjustment in management mode of certain joint factories, as well as the improving layout of joint factories nationwide with the progressing of the "Broad Homes United Program".However, it is noticeable that PC unit manufacturing business of Broad Homes secured remark performance in 2020, with new contract amount reaching RMB4.09 billion, up 31.7% from RMB3.106 billion the corresponding period last year, and backlog amount reaching RMB5.196 billion, up 38.6% from RMB3.749 billion the corresponding period last year. Sufficient orders of the PC unit manufacturing business pave the way for Broad Homes in 2021.Looking into future, Broad Homes will embrace more opportunities leveraging the three advantages of rapid industry development, its data-driven and B+C dual-diver strategies. According to the Resolution in Relation to the Financial Budget Report for 2021 as set out in the appendix of Meetings to be Resolved at Annual General Meeting and Notice of Annual General Meeting published together with its annual report, Broad Homes budgets a revenue of RMB4.92 billion for 2021, a year-on-year increase of 88%.PC Unit Business to Ride upon the Potential Industry BoomIn recent years, the state vigorously guides and encourages the development of the prefabricated construction industry. Thanks to the policy support of the central government, Ministry of Housing and Urban-Rural Development and other competent authorities, domestic prefabricated construction industry has embarked on rapid development. Pursuant to Frost & Sullivan, market scale of PC unit manufacturing business reached RMB65.4 billion in 2020, and is expected to reach RMB285.5 billion in 2024 at a CAGR (Compound Annual Growth Rate) of 44.5%.With the progressing of the "Broad Homes United Program" and improving layout of joint factories, Broad Homes primarily generate revenue from its PC unit manufacturing business, which achieved revenue of RMB2.4192 billion, a year-on-year increase of 5%, and as a proportion of total revenue increased to 92.6% from 68.4% of the corresponding period last year. Riding upon its on-going rapid growth, PC unit manufacturing business has become the core business of Broad Homes. As of June 2020, Broad Homes had 15 wholly-owned PC factories and 88 joint PC factories accumulatively contracted for, making it China's largest PC unit and PC equipment manufacturer. According to the "2020 China Real Estate Industry Chain Strategic and Integrity Supplier Research Report" issued by China Real Estate Chamber of Commerce, Broad Homes was the most preferred cooperator among "Prefabricated Structure - PC Structure" brands in real estate suppliers.As an industry pioneer, after more than two decades of exploration, Broad Homes has been blessed with marked advantages amid the rapid development of the industry, which, the market believes, is well positioned to enjoy the dividend from the rapid growth of the prefabricated construction industry. Comprehensive Establishment of Digital Platform to Focus on Intelligent Upgrading According to information available, Broad Homes is the pioneer and leader in the industrialization of construction industry in China and the first to adopt full process digital information system and industrial chain technology system with exclusive intellectual property rights, which is capable of offering global, scalable professionalized and intelligent manufacturing of prefabricated buildings and servicesAs the only prefabricated construction enterprise having been selected for the Pilot Demonstration Project of Intelligent Manufacturing by the MIIT (Ministry of Industry and Information Technology of the PRC), Broad Homes has embarked on establishment of a prefabricated digital platform, upgraded digital development strategy and successfully forged two intelligent systems of PC-Maker software service strategy and PC-CPS system.PC-Maker service strategy is able to enhance the design interactivity and optimize the design process. Through data collection, utilization and sharing, it promotes the virtuous circle of work done by different parties and continuously enhances the cooperation with and upgrading of strategic customers. As of the end of 2020, Broad Homes has provided comprehensive prefabricated construction solutions to almost 300 property developer, including Vanke, Country Garden, Evergrande, Jinke and Gemdale. The PC-Maker service strategy enables Broad Homes to realize the transformation from business cooperation to standard co-construction, and accelerates the comprehensive upgrading of prefabricated buildings to standardization, digitalization and intelligence at the product end.Capitalizing on the mature PC-CPS intelligent manufacturing system, Broad Homes commences to transform into data-driven production at the demand end, and realized flexible demand-based manufacturing through digital definition of various elements of the industrial chain, which promoted and achieved efficiency, intelligence and visualization of the whole construction process, and further improved the product quality and construction efficiency. Providing full process digital solutions for prefabricated buildings with PC-CPS system helps to solve problems such as cost, logistics and supply chain management, and facilitates enterprises to achieve excess profit. Consolidating Industry Leading Position Leveraging B+C Dual-driver StrategyAt the recent Central Rural Work Conference, General Secretary Xi Jinping emphasized that, the state had made it clear to comprehensively promote rural revitalization, accelerate the development of rural industries, deepen rural reform, implement rural construction, and improve the quality of rural housing construction. As a forerunner of construction industrialization, Broad Homes proactively responded to the national strategy to implement rural construction, and successfully realized the strategic transformation from TOB to TOB+TOC in 2020.At the business end, Broad Homes remains committed to PC unit manufacturing and intelligent manufacturing research and development (R&D), and gradually shits focus away from construction contracting. Broad Homes developed PC Maker software and PC CPS to improve its production efficiency and cost control capacity. Meanwhile, Broad Homes was the first to realize the importance of data elements, and took the lead in the full process prefabricated construction intelligent-oriented development.At the consumer end, taking advantage of the policy of "separation of ownership, contracting right and management right" in rural homesteads, Broad Homes is expected to get involved in the trillion-level rural housing construction market. In 2020, Broad Homes focused on developing TOC business and launched B-house and the new product B-BOX. B-house products mainly target C-end consumers and the rural villa market, under which Broad Homes introduced seven standardized products, such as Buttonwood Villa, Oak Manor and Camphorwood Villa, established and opened B-house parks in Changsha, Wuhan, Tianjin and other cities, and developed new housing supply schemes to meet the diversified and customized consumption needs of the market, which is transforming the development trend of the traditional rural housing market.TF Securities predicts that Broad Homes will embrace rapid development in the prefabricated rural villa market segment, its product type design will satisfy the demands of the whole market in the future and TOC business scale (excluding B-BOX) will reach RMB5.25 billion in the next three years, thereby contributing to considerable performance growth. In view of the expansion of housing market demand and the leading advantage of digital intelligent technology, Broad Homes is well positioned to consolidate its leading position in the prefabricated construction industry.According to expert analysis, in 2020, China further introduced a more detailed industrial digital development strategy. In the new development era, Broad Homes continuously increases investment in digital economy, promotes R&D and digital upgrading, focuses on the principal business of PC unit manufacturing, and specifies the TOB+TOC dual-driver development strategy, which has laid a solid foundation for the rapid expansion of its PC unit business and the leading position in the prefabricated industry, and its future performance is expected to gain remarkable growth. Copyright 2021 ACN Newswire. All rights reserved. www.acnnewswire.com

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Broad Homes (02163.hk) to Intensify Its Leading Position Through Data-driven and Dual-driver Strategies

HONG KONG, Feb 26, 2021 - (ACN Newswire) - Recently, promotion policies of prefabricated buildings were rolled out in succession, contributing to an on-going increase in scale of industrial chain and positive industry sentiment. In particular, Broad Homes (02163.HK), one of the industry leaders, which has exploited the construction industrialization field for over two decades, is committed to consolidating its competitive edges and has delivered remarkable performance with CAGR (Compound Annual Growth Rate) of revenue reaching 32.36% for the last three years (2017-2019), market share (of PC unit manufacturing business) amounting 13.5% and research and development (R&D) expenses as a percentage of revenue accounting for 8.82%, both topping the industry.Picture 1Picture 2Picture 3Picture 4 China's PC unit manufacturing market scale from 2014 to 2024 (estimated) Unit: RMB100 millionThanks to the recent favorable policies in the prefabricated construction industry, Broad Homes remains dedicated to its PC unit manufacturing business and upholds the data-driven and B+C dual-driver strategies, well positioned to further consolidate its leading position and achieve leapfrog growth.EXPEDITE INDUSTRIAL CHAIN DEVELOPMENT THROUGH COMPREHENSIVE DIGITAL TRANSFORMATION AND SECURE EXCESS PROFIT LEVERAGING INTELLIGENT MANUFACTURING As the only prefabricated construction enterprise having been selected for the Pilot Demonstration Project of Intelligent Manufacturing in 2018 by the MIIT (Ministry of Industry and Information Technology of the PRC), Broad Homes has, through over two decades of cultivation, spared no efforts in facilitating the digital transformation of the industry and expediting industrial chain development. It has established eight generations of product systems for prefabricated buildings, conducted R&D into domestic first-class full process digital solutions and boasted experience accumulated in industrial projects of over 100 million square metres and strategic factory layout across the nation. Currently, leveraging the leading manufacturing capacity of PC units, PC Maker I, the first domestic forward design software based on BIM platform in the field of prefabricated buildings, and PC-CPS intelligent manufacturing management system, the digital solution for the full process of prefabricated buildings, Broad Homes has bridged every stage of the whole industrial chain from design, manufacturing, construction to operation and maintenance and become a standardized portal for industrialization and intelligent service platform of the construction industry.The design software PC Maker I of Broad Homes effectively improves design interactivity and optimizes design process to significantly reduce the time required for a single design process. With improved design accuracy, it enjoys better function integration capacity and consistency between the subsequent production processes and actual use when compared with other BIM software, thus winning great trust and favor from customers. As of the end of December 2020, we had provided comprehensive solutions of prefabricated buildings for nearly 300 customers, including Vanke, Country Garden, Evergrande, Jinke and Gemdale, and established cooperative relations with nine out of China's top ten property developers and China's top ten construction enterprises, thereby promoting the transformation from business cooperation to standard co-construction, and accelerating the shift of prefabricated buildings into standardization, digitalization and intelligence at the product end.The picture 1 shows the functions of PC Maker 1 softwareProject Prefabricated preliminary design Construction drawing Prefabricated deep design Prefabricated inspection Drawing Model creation Unit dismantlingUnit design Drawing managementParameterized unit library Parameterized accessory library Custom module The PC-CPS intelligent manufacturing system of Broad Homes is applied in digital twin technology to pre-simulate the whole process of prefabricated buildings in the system and trigger all instructions through data, which integrates process, cost, logistics and supply chain management, and coordinates the whole process from forecasting to goods acceptance in real time, thus significantly improving production and operation efficiency. It has become a standardized portal and intelligent service platform for building industrialization and enjoys trust from various reputable domestic property developers and construction customers. In 2021, Broad Homes will continue to improve the PC-CPS platform, enhance R&D capabilities, boostthe soft power of intelligent manufacturing, promote the comprehensive integration of the industrial Internet platform system, and propel the modernization of China's construction industry.The picture 2 shows the whole functioning process of the PC-CPS systemStrategic customers Product R&DBusiness protocol for building modeling Project import Building model Engineering model Business model Concluding contractDelivery + first-level confirmation Construction site Complete semi-finished products PC manufacturing Finished products warehouse Transportation Site warehouseAssemble prefabricated parts Processing and packing Pallet distribution QR code-based production QR code-based loading Project startup QR code-based warehousing QR code-based launching QR code-based delivery QR code-based loadingQR code-based hoisting Level-three QR code triggered by hoisting Settlement AnalysisIn recent years, Broad Homes continued to increase R&D investment and strived to achieve digital transformation and upgrading. In 2019, its total R&D expenditure as a percentage of revenue remained at the forefront of the industry, which laid the foundation for the rapid expansion of its PC unit manufacturing business and forging leading advantages in the prefabricated industry, and brought about sustainable competitiveness and excess profits.The picture 3 shows the total R&D expenditure as a percentage of revenue of industry peers in 2019 and R&D expenditures of Broad Homes from 2017 to 2019 (including the amount expensed and capitalized based on the information in the prospectus of Broad Homes and CITIC Securities Research Institute)Total R&D expenditure as a percentage of revenueChina State Construction Honglu Steel Structure Golden Mantis Orient LandscapeShanghai Construction Group China ChemicalsChina Design GroupChina Industrial InternationalBroad HomesR&D expenditureR&D expenditure as a percentage of revenue From 2017 to 2019, the operating revenue and net profit of Broad Homes increased at a CAGR of 32.36% and 108.26%, respectively. In 2020, despite the shock of the COVID-19 pandemic, the PC unit manufacturing business, the core principal business of Broad Homes, secured sound growth with new contract amount of RMB4.091 billion, a year-on-year increase of 31.7%, and contract amount secured yet to complete of RMB5.196 billion, a year-on-year increase of 38.6%. Sufficient new orders and backlog paved the way for Broad Homes in 2021.With the relief of the pandemic, the revenue of PC equipment manufacturing business of Broad Homes will pick up. Upon completion of reform of the remaining joint factories and leveraging potent demand, the overall performance of Broad Homes will steer into a normalized growth track.PREFABRICATED BUILDINGS AN INEVITABLE CHOICE AMID POTENTIAL INDUSTRY BOOMIn recent years, the state issued relevant policies to vigorously guide and motivate the development of prefabricated construction industry. The "13th Five-Year Plan of Action for Prefabricated Buildings" of the Ministry of Housing and Urban-Rural Development clearly stipulates that the proportion of prefabricated buildings in new buildings should reach 25% by 2023 and 30% by 2025. The prefabricated building industry will embrace explosive growth.Policies regarding China's fabricated buildings were first introduced in 2016. Although the industry grew at a CAGR of 55% in recent four years, the penetration rate of fabricated buildings in China in 2019 was only 13%. According to Frost & Sullivan, the domestic market scale of PC unit manufacturing business will reach RMB65.4 billion in 2020 and RMB285.5 billion in 2024, with a CAGR of 44.5%. Compared with the traditional cast-in-place construction method, the prefabricated building is energy-saving and environment-friendly, which may shorten the construction period by 45% and save manpower by 75%. Looking into future, due to the disappearing demographic dividend, high labor cost and limited capacity of resources and environment, prefabricated building materials will be an inevitable choice for the transformation and upgrading of the construction industry. With the improvement of penetration, this industry is expected to usher in a trillion-level "blue ocean" market. From 2014 to 2024, the domestic market scale of PC units for prefabricated buildings is estimated to record a year-on-year increase of 680 times, promising great potential. (Picture 4)It is fair to say that in the next few years, the domestic prefabricated industry will enjoy a boom, and Broad Homes will also usher in an obvious turning point in profit. Three advantages will facilitate it to tap on the scale advantages 1) Broad Homes has established factories in Hunan, Tianjin, Yangtze River Delta and Pearl River Delta, which are the key areas for promotion of the prefabricated buildings, and 62 Joint Factories it contributed to span across the nation, which is expected to increase the capacity utilization rate of Broad Homes in the market boom; 2) the two design software of Broad Homes, being PC Maker I and PC-CPS, the intelligent manufacturing management system, empower the development of the industrial chain through digital management, resulting in per capita production efficiency far exceeding peers, and enjoy popularity among customers; 3) Broad Homes boasts eight generations of prefabricated building product system and experience accumulated in industrial projects of over 100 million square metres, positioning it in a very favorable position to seize the huge blue ocean market in the future.INTENSIFY LEADING POSITION THROUGH DUAL-DRIVER STRATEGY TRANSFORMATION AND PROPOSED INITIAL PUBLIC OFFERING OF A SHARESAt the beginning of 2020, Broad Homes categorized its business into two major sectors, being B2B and B2C, in which B2C represents the B-house business charged by the Module Integration Technology Division, and the new product B-BOX business will also be launched. In the B2C field, B-house products primarily target C-end consumers and country villa market, and seven standardized products have been offered. In the first half of last year, it commenced to take orders for country villas.It is reported that the self-built housing in rural areas and approximate to cities in China covers an area of over 1.3 billion square meters, and it is estimated that there will be more than 2.2 million new rural houses each year, implying great market potential for rural construction. Since the beginning of 2019, policies on rural residential pilot projects, marketing of collective management of construction land and decentralization of land use approval authority have been successively rolled out. Therefore, TF Securities pointed out in its research report that To C business will generate new growth driver for Broad Homes, and it is predicted that the scale of To C business (excluding B-BOX) of Broad Homes will reach RMB5.25 billion in the next three years, thereby contributing to considerable performance growth.Besides, Broad Homes proposed to apply for initial public offering of A shares and listing the same on ChiNext of the Shenzhen Stock Exchange, to further enhance its capital strength. No more than 86.054 million shares will be allotted and issued under this IPO exercise, and the proceeds raised will be applied in six fields, including Broad Homes CPS Henan Research, Development and Production Headquarter Base Project, The First Phase of Assembly PC Factory Construction Project of Broad Homes Weifang Direct Company, Broad Homes Smart Site Research and Development Project, Broad Homes Mansion Exhibition Center Project, B-BOX Modularized Building Production Line Technology Renovation Project and supplementing of Working Capital, with an investment amount of approximately RMB1.879 billion. In particular, Broad Homes CPS Henan Research, Development and Production Headquarter Base Project and The First Phase of Assembly PC Factory Construction Project of Broad Homes Weifang Direct Company will increase the PC units production capacity of Broad Homes by 240,000 cubic meters, upon which, total production capacity of wholly-owned factories will reach over 2 million cubic meters. As such, Broad Homes is expected to consolidate its leading position and promises great growth potential in the mid- and long-term. According to Frost & Sullivan, in terms of the revenue in 2019, Broad Homes is the largest domestic PC unit manufacturer, with a market share of 13.5%, and also the largest domestic PC equipment manufacturer in China, with a market share of 38.3%.Looking into future, with the relief and even disappearance of the COVID-19 pandemic, Broad Homes will continue to consolidate its leading position through data-driven and dual-diver strategy transformation and A-share listing, and share the dividend of rapid growth of the industry with shareholders and investors. Copyright 2021 ACN Newswire. All rights reserved. www.acnnewswire.com

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