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CNQC Announces 2018 Annual Results Actively increase the land bank in Singapore and Hong Kong Further expand existing presence in the Southeast Asian market

Updated Date: 2019-03-28

CNQC International Holdings Limited

 (Incorporated in the Cayman Islands with limited liability)

(Stock code:1240.HK)

 

CNQC Announces 2018 Annual Results

Actively increase the land bank in Singapore and Hong Kong

Further expand existing presence in the Southeast Asian market

 

Ÿ   Actively increase the land bank. The Group will complete its acquisition of the entire Goodluck Garden property, which will become the Company's second collective sales project.

Ÿ   Completed the acquisition of the land parcels at Yau Tong and Sham Shui Po.  Officially start property business in Hong Kong, which is an important milestone for the Group’s development

Ÿ   Further expanded in the Southeast Asia countries. The Group was awarded 5 new construction contracts in Malaysia and Vietnam with aggregated contract sums of approximately HK$1.12 billion.

 

(28 March, 2018 - Hong Kong) CNQC International Holdings Limited ("CNQC International," "the Company," together with its subsidiaries, collectively "the Group”, stock code: 1240.HK), a leading property developer and contractor in Singapore, is pleased to present the Group’s consolidated results for the year ended 31 December 2018 (the “Reporting Period”).

 

The Group’s total revenue for the Reporting Period was approximately HK$7.5 billion, representing a decrease of 27.2% as compared with last year. The profit attributable to owners of the Company was approximately HK$224.9 million. The decrease is mainly attributable to less property sales in Singapore being recognized in 2018.

 

The Board recommends the payment of a final dividend of HK$0.05 per ordinary share and CPS in respect of the year ended 31 December 2018 (Annual dividend HK$0.11. Dividend yield is approximately 6.5% based on closing price of 28 March 2019).

 

Property Development Business

For the Reporting Period, the revenue of property development in Singapore is HK$3,838.9 million, accounted for approximately 51.2% of total revenue. During the Reporting Period, the Group started to hand over units at The Visionaire, which obtained the Temporary Occupation Permit from the Building and Construction Authority of Singapore. The sales revenue of The Visionaire achieved HK$3,030.0 million during the Reporting Period. Le Quest is a private mixed development project under development and it started to recognise pre-sales revenue from 2018 based on its percentage of completion. As such, it recognised pre-sales revenue of HK$764.3 million during the Reporting Period.

 

In September 2018, private apartment project located at Shunfu Road, Jadescape, commenced pre-sale on schedule and was successful. Phase I had 480 units on offer and sold 300 units in the opening week. As of the end of 2018, 363 units were sold and the sales rate of Phase I reached 75.6% with the number of units sold and selling prices both higher than expected. Offer of units for Phase II of the project is scheduled to commence in most favourable conditions.

 

For land bank, on 8 March 2018, the Group’s tender has been duly accepted by the vendors of Goodluck Garden, located at Toh Tuck Road in Singapore at a total consideration of S$610 million (equivalent to approximately HK$3.64 billion). It is a freehold land with a total land area of approximately 33,457 sq.m. with an estimated GFA of 46,840 sq.m. It is intended to be developed as a private condominium with over 600 apartments.

 

The Group officially start property business in Hong Kong during the Reporting Period. the Group has completed the acquisition of the land parcels at Yau Tong Marine Lot No. 58 and 59 and the extensions thereto for a total consideration of HK$530 million. The total site area of the lots and its extensions to the harbour are approximately 17,400 sq.ft. and 5,400 sq.ft. respectively and the maximum plot ratio under the approved outline zoning plan is 5. It is intended to be a residential redevelopment. Meanwhile, the Group has acquired over 80% ownership of two blocks of old residential buildings in Sham Shui Po, Hong Kong through joint venture and it is intended as a residential redevelopment project after 100% ownership is acquired.

 

Construction Business

During the Reporting Period, the Group has further expanded in the Southeast Asia countries including Malaysia and Vietnam. The Group’s revenue from construction contracts in Singapore and Southeast Asia countries for the Reporting Period was approximately HK$2,560.4 million. The revenue attributable from Hong Kong & Macau segment is approximately HK$1,103.9 million

 

For the Singapore segment, the Group completed 4 construction projects including 3 private projects and 1 owned property development project. There were 2 projects newly awarded by the HDB in 2018 and 2 private construction projects with aggregated contract sum of approximately HK$3.38 billion. As for the Southeast Asia segment, the Group was awarded 5 new construction contracts in Malaysia and Vietnam with aggregated contract sums of approximately HK$1.12 billion. As for the Hong Kong & Macau segment, the Group was awarded 10 new foundation and superstructure construction projects with aggregated contract sums of approximately HK$550 million.

 

Mr. Cheng Wing On, Michael, Chairman of CNQC International said: " Looking forward to 2019, uncertainties in the external environment and the continued tightening of cooling measures may have impact on demands in the market, however, Singapore’s overall economy remains stable and the property market has stayed on a healthy track in alignment with economic development. The Group will strive to maintain and capitalise upon its superior competitive strength in the property development business and consolidate its market position as a major local developer. In addition, the Group is well placed to further expand its existing presence in Southeast Asian markets via Singapore, and capture this opportunity to penetrate other countries along the Belt and the Road, such as Sri Lanka, Myanmar, and Cambodia.”

 

“The Group officially start property business in Hong Kong during the Reporting Period, which is an important milestone for the Group’s development. The Group is actively seeking and studying potential property projects in various districts, including the acquisition of residential and commercial projects and the redevelopment of old buildings. It is expected that one or two quality development projects will be added on the account at a steady pace during this year.  In the business development of Singapore, Southeast Asia and Hong Kong, the Group will actively seize opportunities to create long-term value for our shareholders.”