Interactive Q&A: Jing Lu, Investor Relations Director of China Housing and Land Development, Inc. (CHLN.OB)

This is the latest in Seeking Alpha's series of interviews with leading companies of interest to our readers. Ours are interviews with a twist: the respondent has agreed to answer questions and respond to comments not from a single interviewer, but rather from our community of readers and contributors.

This interactive Q&A is with Jing Lu, Director of Investor Relations of China Housing and Land Development, Inc. (CHLN.OB). China Housing and Land Development, Inc. is based in Xian, the capital city of the Shaanxi province in China and is the largest non-government affiliated developer of residential and commercial properties in the region. China Housing, a former SOE, was privatized by current management in 1998 and became public in the U.S in 2006. The current management team possesses over twenty years of related industry experience and has a strong track record and reputation of profitably developing a variety of different residential and commercial developments. China Housing has been named a “AAA Enterprise in the Shaanxi Construction Industry” and has been ranked as the #1 private housing and land development company as recognized by the China Enterprise Confederation and China Directors Association. Additionally, the Company has attained “Level 1” status under the China Ministry of Construction licensing policy. This is the highest level awarded by the government and allows the Company to develop small to large sized projects.

Residential project sizes have historically averaged 1,000 to 1,200 unit developments with adjacent commercial space. The majority of residential developments are sold directly to consumers through onsite sales centers with the commercial space being either sold or leased (to companies including major retailers). By the end of 2006, the Company completed a total of 7 projects, encompassing almost 4.2 million square feet. From 1999 through 2006 sales grew from approximately $2.4 million to approximately $54.1 million in 2006 with net income increasing from a loss in 1999 to over $9 million in 2006. (See CHLN's corporate fact sheet, corporate web site and SEC docs for more background.)

China Housing and Land Development, Inc. has sponsored this interview (for sponsor information contact us here), which works like this:

• Jing briefly introduces herself and the issues she's focused on below.
• Readers and contributors can immediately start to post questions and remarks using the comment box below (Note: you need to sign up for free registration and be logged in to do so).
• Seeking Alpha editors will not filter or edit the questions and comments from readers, except to delete profane or hostile language.
• Jing will respond to the questions and remarks beginning Wednesday, July 11th. Readers can track her answers and respond to them during that period.

Yahoo Finance readers may join the Q&A by following this link.

Over to Jing:

• • •

My name is Jing Lu and I'm the Director of Investor Relations for China Housing and Land Development (CHLN.OB). Thanks to Seeking Alpha for providing this opportunity to interact with investors.

I'm happy to discuss a range of topics with Seeking Alpha readers, including:

1. Our focus on land development within the Xian region.

2. Economic factors in China which are making Xian into a developing and attractive city for further property development.

3. The status of our Baqiao project and other opportunities.

4. The competitive landscape.

5. Plans to move from the bulletin board to a national exchange.

Please leave your questions by using the comment box below.

Thank you!
-- Jing

This Q&A represents the opinion of China Housing and Land Development, Inc. management and is not intended to be a forecast of future events, a guarantee of future results nor investment advice. Except for the statements of historical fact, information presented herein may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include general economic and business conditions, the ability to fund operations, the ability to forge partnerships and other factors over which China Housing and Land Development, Inc. has little or no control. China Housing and Land Development, Inc. assumes no obligation to publicly update or revise any forward-looking statements provided in this Q&A, or to correct any erroneous information presented in any investor questions herein.

Comments

[youngliu1981]

Hi Jing, thanks for taking questions.

1). Could you please talk about the competiton in Xi'an? What is CHLN's position? What is your unique advantage comparing to other comptitors? Are you concern about the entrance of competitors like Greenlands, Hutchison-Whampoa and etc.?
2). What's CHLN's land reserve for future development? Will CHLN develop all of them or plan to sell some?
3). What is the effect of the Chinese government's macroeconomic control on CHLN?

Thank you,

Angel

[David Zhang]

Jing,
While visiting Beijing recently I witnessed two things that made me think the capital city is experiencing a real estate bubble --- (1) endless numbers of vacant buildings, and (2) discussions with friends about the unbelieveably high costs of buying homes/apartments.
Can you discuss the Xian real estate market? Is it any different from the larger cities like Beijing, Shanghai, Guangzhou? Are you concerned about a ripple effect if the market falls apart in BJ, SH, and GZ?
-David

[Joe Mama]

Hi -- I saw that you did a private placement in May. Do you expect to do any capital raising in the near future? If so, for any specific projects or acquisitions?

[Jing Lu Director of IR, China Housing Land Develpoment, In]

Thanks Angel for your questions. Let me address each of them:

1. By way of background, let me provide you with a little more information on our Company. China Housing is the largest private real estate developer in Xi’an and the third largest in the region, with the two larger developers being state owned enterprises. China Housing has been named a “AAA Enterprise in the Shaanxi Construction Industry” as recognized by the China Enterprise Confederation and China Directors Association while also obtaining “Level 1” development status under the China Ministry of Construction licensing policy. This is the highest level awarded by the government and allows the Company to develop small to large sized projects. When looking at our competitive advantages in the market I believe our established track record, management experience and strong financial position act as differentiators. Let me address each of these.

First, by having begun operations in Xi’an in 1992, first as state owned enterprise then later as a private Company we have an established a track record with both the local government and consumers based on our high quality developments. As mentioned this has garnered us significant designations and licenses to develop some of the largest and most important projects in the region. This is something that cannot be quickly replicated by a competitor. In fact if a new competitor were to enter the market they would have to begin at a “Level 5” status. This would allow them to only develop very small projects and based on the current rules and regulations, a developer may not move up more than one level per year, even under the best of terms. So from this standpoint we feel like we are well insulated from competition.

Second the experience of our management, operations and legal team has been a tremendous asset in identifying, securing and profitably developing projects. For example, our CEO, Mr. Lu Pingji has over 30 years experience in housing development, management and construction and has been with China Housing since its initial inception. As a result, we have never had an unprofitable project and in fact our average IRR on our completed projects is 140%.

Finally, while there are several local competitors they are limited to the size and scope of projects they can develop based on not only their development status but also their financial position. Currently, there is very little access to capital for small private Chinese companies. China Housing, by being a US publicly traded Company and by having a strong track record of profitability has the unique opportunity to secure capital under favorable terms and capitalize on opportunities. This is something that other companies in the region just don’t simply possess. As it relates to international competition, Xi’an based on its favorable demographics and relative pricing is certainly gaining more attention from the global marketplace. However, with the access to new development projects based on negotiations with the local government we feel it would be very difficult for these companies to enter the market alone. Rather, we believe the entrance of new developers through joint ventures actually holds significantly positive implications for both Xi’an and China Housing in the future.

2. We have four new projects in our development pipeline: Baqiao, Junjing Garden II, Kang Canyon and Yijing Yuan. We are very optimistic on these projects as they are in highly desirable areas within Xi’an and believe over the next four years these projects could generate approximately $750 million in potential revenue. Baqiao, is a 487 acre plot of land that we expect to engage in raw land sales during the second half of 2007 and then continuing for the next three years thereafter. The other projects we anticipate developing .

3. The government has can influence market prices in a number of different ways. First, interest rate changes which impact borrowing costs and overall pricing for real estate throughout China. Second, the government has the ability to increase or decrease taxes on real estate developers. Third, since the government essentially owns all the land in China companies must negotiate with the local government for the land use rights. With the government determining the cost of the land they can have an impact on the overall market.

[Jing Lu Director of IR, China Housing Land Develpoment, In]

David, thanks for your question.

You are correct that markets such as Beijing, Shanghai and Guangzhou have experienced significant appreciation in real estate values. Before I address the Xi’an market let offer up a few data points that could help explain some of the recent rise in real estate values across China.

First, there are a limited amount of assets in which Chinese citizens can invest their new found disposable income. The tremendous upward moves of the Shanghai and Shenzhen domestic markets have been well documented so I won’t address them here but this clearly represents one asset class. What is not as well known is that the average citizen will earn only approximately 3% interest for deposits into a traditional savings account. That is below the current inflation rate of approximately 3.4% reported by the government in May. This has led to a sharp decrease in the notoriously high savings rate of the typical Chinese consumer and an influx of money into assets such as real estate and stocks. With China’s GDP of over 11% in the first quarter of 2007, a further reduction in the savings rate for Chinese consumers and an increasing migration of the over 800 million rural farmers to cities, the long term secular theme for real estate we believe remains favorable as an asset class.

As it relates to Xi’an we feel we are in a very unique position. Xi’an is the capital of the Shaanxi Province and is located 600 miles southwest of Beijing. Xi’an has a population of approximately 8.0 million and is a popular tourist destination for attractions such as the Terra Cotta Warriors and the Old Walled City of Xi’an. It is one of the top ten largest cities in China and is well known for its high density of hi-tech, military, aeronautic and pharmaceutical manufacturing companies in addition to many well-known universities. The GDP of Xi’an has actually been stronger than that of greater China at approximately 15% per annum over the past several years. Part of this growth is related to Beijing’s “Go West” strategy which is encouraging citizens to migrate towards interior parts of China. This has led Xi’an to have a population CAGR of over 5%. Most importantly, despite the strong demographic trends, Xi’an real estate is at a significant price discount to other major metropolitan areas such as Beijing, Shanghai and Guangzhou. We estimate that the cost of home ownership is approximately 50% and 75% cheaper than Beijing, Shanghai and Guangzhou respectively. For example in our one of our more recent developments, called Junjing Garden I, this complex had approximately 1,230 apartments. For a brand new, highly upgraded 1,000 square foot unit, buyers paid approximately $50,000 USD. We feel this is very affordable for the traditional Chinese family.

In conclusion, based on the strong growth within Xi’an and the relative discount to other major cities we believe the region is poised for further significant appreciation.

Jing

[LJ]

Don't worry about those bubble-preachers. In an inflationary economy, its very natural for the property prices to appreciate according to the supply and demand.

The UK property prices are highest in the world and have risen alot over the past decade. Many americans have been yelling about bubble-burst in the UK housing market, but on the other hand, some economists predicted no bubble in the american housing market. In fairness, if the americans' predictions should be taken seriously, the UK housing market should collapse first.

[Jing Lu Director of IR, China Housing Land Develpoment, In]

Thanks for your question.

We completed a $25 million private placement in May with institutional and accredited investors. The proceeds from the placement are primarily being used to acquire the Baqiao project and for working capital purposes. We have stated that that Baqiao project is 487 acres land development business, and could generate substantive revenue for China Housing and also support our long-term development. We anticipate beginning to conduct raw land sales for Baqiao beginning in the last quarter of 2007 and then more significantly in 2008. With the proceeds from the private placement and the establishment of bank debt we feel very comfortable we can complete the first sales of Baqiao. Once the first sales are complete given the high margin nature of this transaction we feel comfortable that these initial proceeds will be adequate to fund our development pipeline for the foreseeable future.

Jing

[David Zhang]

Jing,
Thanks for your response.
Can you talk about your decision to go public on the BB?
What is your timeline for a national exchange listing?
Are you publicly-traded on any of the China exchanges? If so, can you talk about that?
-David

[Jing Lu Director of IR, China Housing Land Develpoment, In]

David thanks for your question.
As it relates to our listing on the OTCBB we made the decision to enter the U.S markets in April 2006 as we felt it would provide us with the best opportunity to create long term sustainable shareholder value. This is a decision that many other Chinese companies have made with many of them being extremely successful moving from the OTCBB to national exchanges such as the AMEX, NASDAQ and NYSE. The process of listing in China is still complicated and often results in a long and complex process. We are committed to moving to a national exchange within the next year as we begin to achieve many of the necessary listing requirements. China Housing is not trading on any other exchanges.
Jing

[rufcrazy2]

Hello Jing,

Thank you very much for your time - this is an excellent forum.

While I am quite optimistic about the company's prospects after reading your press releases and SEC filings, I wonder how it is even remotely possible that you could hit the make-good projections.

By my calculations, for example for 2007, you would need to generate approximatley $85 million in revenue at your 32% gross margins to produce the $24 million of pretax earnings or $16 million after tax to hit the make good requirement. This is roughy a quintupling of last years results.

Can you discuss what plans the company has with respect to hitting these targets? Or should shareholders assume the shares will be issued ?

Good luck and thanks for your time.

RUF

[Jing Lu Director of IR, China Housing Land Develpoment, In]

Thanks for your question.

As you mentioned and as part of our May 2007 private placement management of China Housing put 510,000 of their personal shares into escrow as it relates to a “make good” net income target for 2007 and 2008. These “make good” targets have called for the Company to achieve net income of $16.3 million and $35.8 million for 2007 and 2008 respectively. If these targets are not met for each fiscal year, management of China Housing would forfeit the shares in escrow to participants in the private placement. At this point I believe it is worthwhile to share our previous financial results to provide investors with a perspective as to how we plan on achieving these numbers.

Since 1999, when the Company was privatized by current management we have increased sales from approximately $2.4 million to $54.01 million in 2006 with net income increasing from a loss in 1999 to over a $9 million in 2006. In 2006 total revenue increased 65% to $54.01 million with net income increasing 91% to $9.1 million and earnings per weighted average fully diluted share increasing 88% to $0.45.

We have been able to grow the business to date with very little external financing and as you can see we have a definitive track record of profitable growth. As it relates to results this year, the proceeds of our private placement have been used to acquire 487 acres of land within the Baqiao Hi-Tech Zone. This is part of a larger 2,224 acre Xian-based development which will include residential housing, retail and light commercial space, aerospace research and a logistical center. This area has been designated by Xian government to be the new satellite city and the government will invest over $7 billion USD over the next ten years for infrastructure development such as roads and a planned subway to connect the center of Xi’an to this new area.

Additionally, according to the governments 10 year development plan, the government will move approximately 600,000 citizens from the center of the city out to this new area, bringing the total population to approximately 900,000. We have now acquired the exclusive rights to develop 487 acres of some of the most attractive portions of the total property for residential development. Our plan is to invest the necessary capital expenditures for electricity and water to prepare the area to be sold as raw land beginning in the fourth quarter of 2007. Our plan is to have discussions with major international developers to sell approximately the first 45 acres this year and another subsequent 128 acres in 2008. We have stated that in total our 487 acres we believe will generate approximately $500 million in revenue for China Housing over the next four years.

The “make good” net income targets previously mentioned were predicated on these high margin land sales in addition to the development of our Junjing Garden II project. As a matter of reference and in addition to Baqiao we are optimistic on the prospects for Junjing Garden II based on our favorable experience developing Junjing Garden I. Junjing Garden II is expected to be a 1,500 unit complex encompassing over 2.5 million in total square feet and we believe will command higher prices than that of Junjing Garden I. We anticipate that both Baqiao and Junjing Garden II will substantially contribute to our 2007 and 2008 results and will help us to achieve our “make good” targets.

Jing

[dweiss60]

Hello Jing,

Could you speak in a little more detail about the nature of the Baqiao project and the likely size and timing of land and housing sales?

Specifically for Baqiao, how much land do you own in total?
How much land will you sell in 2007, 2008, etc?
How much land are you holding to build housing (ie how many acres and sq feet of housing at completion)?
When will housing be built, and when will it be sold?

Could you also comment on the property rights associated with this land? Does ownership revert to the government at a certain time, and if so when. And is the timing the same for houses or condos sold on the land?

Thanks,
Doug

[Jing Lu Director of IR, China Housing Land Develpoment, In]

Thanks for your question.

As you mentioned and as part of our May 2007 private placement management of China Housing put 510,000 of their personal shares into escrow as it relates to a “make good” net income target for 2007 and 2008. These “make good” targets have called for the Company to achieve net income of $16.3 million and $35.8 million for 2007 and 2008 respectively. If these targets are not met for each fiscal year, management of China Housing would forfeit the shares in escrow to participants in the private placement. At this point I believe it is worthwhile to share our previous financial results to provide investors with a perspective as to how we plan on achieving these numbers.

Since 1999, when the Company was privatized by current management we have increased sales from approximately $2.4 million to $54.01 million in 2006 with net income increasing from a loss in 1999 to over a $9 million in 2006. In 2006 total revenue increased 65% to $54.01 million with net income increasing 91% to $9.1 million and earnings per weighted average fully diluted share increasing 88% to $0.45. We have been able to grow the business to date with very little external financing and as you can see we have a definitive track record of profitable growth. As it relates to results this year, the proceeds of our private placement have been used to acquire 487 acres of land within the Baqiao Hi-Tech Zone. This is part of a larger 2,224 acre Xian-based development which will include residential housing, retail and light commercial space, aerospace research and a logistical center. This area has been designated by Xian government to be the new satellite city and the government will invest over $7 billion USD over the next ten years for infrastructure development such as roads and a planned subway to connect the center of Xi’an to this new area.

Additionally, according to the governments 10 year development plan, the government will move approximately 600,000 citizens from the center of the city out to this new area, bringing the total population to approximately 900,000. We have now acquired the exclusive rights to develop 487 acres of some of the most attractive portions of the total property for residential development. Our plan is to invest the necessary capital expenditures for electricity and water to prepare the area to be sold as raw land beginning in the fourth quarter of 2007. Our plan is to have discussions with major international developers to sell approximately the first 45 acres this year and another subsequent 128 acres in 2008. We have stated that in total our 487 acres we believe will generate approximately $500 million in revenue for China Housing over the next four years.

The “make good” net income targets previously mentioned were predicated on these high margin land sales in addition to the development of our Junjing Garden II project. As a matter of reference and in addition to Baqiao we are optimistic on the prospects for Junjing Garden II based on our favorable experience developing Junjing Garden I. Junjing Garden II is expected to be a 1,500 unit complex encompassing over 2.5 million in total square feet and we believe will command higher prices than that of Junjing Garden I. We anticipate that both Baqiao and Junjing Garden II will substantially contribute to our 2007 and 2008 results and will help us to achieve our “make good” targets.

Jing

[Jing Lu Director of IR, China Housing Land Develpoment, In]

Thank Doug for your questions.

For the first part of your question related to timing of Baqiao land sales please refer to the response I provided for RUF. If you need further elaboration please don’t hesitate to ask another question.

As it relates to property rights the Chinese Government owns all the land in China. However beginning in 1992 major Chinese cities began selling state-owned housing causing a structural shift in demand from state-owned private homes. Later in 1998 the Government abolished the policy of state allocation of housing. The situation currently is that residential owners will purchase a property and now have ownership for 70 years. The current issue that the Central Government is dealing with is in regards to the transfer of those rights of ownerships to related family members upon death of the owner. Recently, in the convening of the National People’s Congress in March 2007 the Government discussed enhanced protection and transfer of these rights for property owners and buyers. While no definitive rules have been set most are operating with the understanding the Government will be setting fourth new rules that clearly articulate individual’s property rights and the facilitation of the transfer of these assets in the near future.

Jing

[dweiss60]

PS -
sorry, could you also comment on what improvements need to be made to Baqiao land prior to its sale?

Thanks!

[Jing Lu Director of IR, China Housing Land Develpoment, In]

Before the Land sale, our company is responsible for the installation and maintenance of all basic infrastructure, including water, electricity, gas supply, telecommunication and sewer systems . Thanks for your question.
Jing

[dweiss60]

Thanks for those answers. A follow up question - you have previously said you expect $500 million in revenues from Baqiao. What is your assumption on Baqiao land value (per acre) appreciation per year?

You have also said you purchased the property for $34 million and expect $309 million in improvement costs. Are there relocation costs, and if so are they included in those numbers? Also, are relocation costs weighted more to later years? Put another way, will margins on the project, if you assumed flat $ per acre sales prices thru 2010, be similar in all years?

Finally, my impression is you employ subcontractors for work. Do you also use subcontractors for design and engineering? And is the work related to Baqiao different from your historical area of expertise and does this create additional execution risk?

Thanks!
Doug

[Jing Lu Director of IR, China Housing Land Develpoment, In]

Thanks Doug. As I mentioned in a previous answer we believe the real estate market in Xi’an is dramatically undervalued in relation to other major metropolitan areas in China. Subsequently, while Xi’an has experienced an approximate 50% increase in land appreciation over the last several years we have modeled for much more conservative growth as it relates to Baqiao. At current estimated prices we would need to see approximately a 10% CAGR in property prices over the next four years to achieve the $500 million revenue target. Based on prior appreciation and the outlook for Xi’an we feel this is a very realistic expectation. In regards to cost the $309 million will be used for land improvement and the cost to relocate current residents or farmers on the land. The $309 million estimate has been calculated to increase commiserate with the appreciation in raw land sale prices. Hence these costs will be much lower in the first year and then increasing as we move through year four. Right now we are estimating an approximate 25% net margin on the raw land sales for Baqiao.

We do employ subcontractors for work but based on our experience and readily available access to labor we do not feel that this is a risk at the present time.

Regards
Jing

[youngliu1981]

Hi Jing, thanks for taking questions.

After reading your previous replies, I am quite positive about the company. However, after finding out that the Net Income for 2007 1Q is $0.8mm, I couldn't help but wondering what you will do to hit the $16.3mm "Make-Good" target. As you mentioned before that the company is confident on achieving the target. Therefore, could you please say something about your 2Q performance and your 3Q and 4Q forecasts?

Since 24G and Jujing Garden are your major profit makers in 2007, would you please talk about their sales? Till now, what are the sold-out percentage of residentials and commercials for 24G? And for Jujing Garden?

Besides, what do you think about the future housing prices in Xi'an? I definitly think it will increase, but may not as much as Shenzhen and Shanghai. Do you have any expected growth range for Xi'an? And would you please compare CHLN's price growth with Xi'an's?

Many thanks and good luck,

MN

[youngliu1981]

Hi Jing,

A correction for my previous mistake. I understand that Baqiao will be your major profit maker this year as you mentioned previously. Then I come up with other questions besides previous ones.

Will Baqiao be able to generate at least $14mm Net Income this year, if you assumed the sales of 24G and Junjing are flat in 2007? Besides, from an annoucement of Xi'an Land Exchange, I noticed that recently a residential land in Baqiao was sold at a price of $500,000/acre. Is it a good indication for your land price? Or will yours be much higher? And why?

Well, together with the above comment, I may raise too many questions for you. I really appreciate your answers, and wish all the best to you and your company.

MN

[Jing Lu Director of IR, China Housing Land Develpoment, In]

Thanks for you question and we appreciate your interest in the Company.
Unfortunately we have not provided quarterly projections or formal guidance to investors so I cannot comment on our future quarterly projections. However, you bring up an extremely important point that I would like to address with investors. Inherently, the land development business is lumpy and does not lend itself favorably both on the upside and downside to quarterly year over year comparisons as during any given quarter we may be developing projects while then focusing on sales the next. We believe the best way to look at our business currently is to focus on annual results. As I have mentioned in a previous response China Housing has shown the ability to put up substantial year over year annual growth in terms of both revenue and net income since the business was privatized in 1999. So we are certainly confident we can grow in the future. As it relates to our results for 2007, conceptually speaking the first half of this year we will be focusing on developing and preparing for our next two major projects being Baqiao and Junjing Garden II while selling off the remaining minority portions of our completed Junjing Garden I and 24G projects. We intend on breaking ground on the Junjing Garden II project in the second half of 2007 while engaging in the first 45 acres of land sales for Baqiao during the fourth quarter of 2007. We anticipate having Junjing Garden II complete by the second half of 2008 and we believe it will be a significant contributor to our results later that year. As it relates to Baqiao, we anticipate beginning the necessary infrastructure construction in the near term. This will facilitate the sale of the first piece later this year and is expected to be a significant contributor to our 2007 results.
As I mention previously, there is huge potential in Xián real estate market. In 2006, xián ‘s population is over 8 million, and average living area per person is 157 sq.ft , compared to 268 sq.ft national average. And local government targets in 2020 the population will reach to 10 million, and average living area will reach to 269 sq.ft. that will be 1.26 billion sq.ft new development needed to be created by 2020. these demand will drive property appreciated in next 10 years. In 2006 housing price in XIán is 50% or 75% cheaper than Beijing and Shanghai respectively. There still is further room for housing appreciated. Additional Land appreciation in Xi’an we remain quite bullish on the market. The Xi’an market has increased about 50% over the last several years but we believe based on factors discussed previously that there is still further room for appreciation. And also according to local government “xián 10 years development plan”, in next ten years the Baqiao area will be main middle and upper-middle residential area of xián city. The government will invest 50 billion RMB to improve the infrastructure of this area in next ten year. The land appreciation in this area will very fast in the next four years.

Regards
Jing

[SeekingAlpha Editors]

This Seeking Alpha interactive Q & A is now closed for further questions. Thank you very much to Jing Lu of CHLN, and to all of our readers who participated.

~ The Seeking Alpha Team