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CNQC Announces 2019 Annual Results Profit for The Year Attributable to Owners of the Company Increases 6.0% to HK$239 million

Updated Date: 2020-03-30

CNQC Announces 2019 Annual Results

Profit for The Year Attributable to Owners of the Company

Increases 6.0% to HK$239 million

 

 (30 March, 2020 - 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 announce consolidated annual results for the year ended 31 December 2019 (“the Reporting Period”).

 

The Group’s total revenue for the Reporting Period was approximately HK$7.9 billion (2018: approximately HK$7.5 billion), representing an increase of 4.9% as compared with last year. The increase is mainly attributable to more construction revenue in Singapore and Southeast Asia being recognized in 2019. The profit attributable to owners of the Company was HK$238.8 million (2018: approximately HK$225.3 million), representing an increase of approximately 6.0% over the last year.

 

The Board recommends the payment of a final dividend of HK$0.04 per ordinary share and CPS in respect of the year ended 31 December 2019 (2018: HK$0.05 per ordinary share and CPS).

 

Property development business

The Group stated to hand over units at the iNZ Residence (51% owned by the Group), which obtained its Temporary Occupation Permit in April 2019, and recognized sales revenue of approximately HK$2.42 billion during the Reporting Period.

 

By the end of 2019, the Group’s comprehensive property development located at Butik Batok, Le Quest, recorded a sales volume of over 380 units. In July 2019, the Group’s private condominium project located at Shunfu Road, Jadescape, launched its second phase of units and received satisfactory market response, with its annual sales volume exceeding 180 units.

 

For land bank status, the Group’s tender to purchase Phoenix Heights (situated at Phoenix Road) at a total consideration of SDG42.6 million (equivalent to approximately HK$243.8 million) was accepted by the vendor on 25 July 2019. After completion of the acquisition, the land site is intended to be developed into private condominiums.

 

For Hong Kong property business, the Group acquired the land parcels at Yau Tong Marine Lot No. 58 and 59 and the extensions thereto. It is intended to be a residential redevelopment. Planning application to facilitate the redevelopment is undergoing. Meanwhile, the Group acquired over 80% ownership of two blocks of old residential buildings in Sham Shui Po, Hong Kong through joint venture. Application for Compulsory Sales for Redevelopment has been submitted to Lands Tribunal.

 

Construction business

During the Reporting Period, for the Singapore segment, the Group completed 4 construction projects. In 2019, the Group obtained 1 new HDB project, 4 private construction projects, 1 factory construction project and 1 owned property development project with aggregated contract sum of approximately HK$3.93 billion. There are 2 PPVC projects out of the 7 new projects. Benefiting from the Group’s competitive advantages in PPVC technology and management in Singapore market, these new projects inject new blood to the Group’s sustainable development in PPVC industry.

 

During the Reporting Period, the Group officially entered 2 new markets in South East Asia including Cambodia and Myanmar. The Group was awarded 3 new construction contracts in Malaysia, Cambodia and Myanmar with aggregated contract sums of approximately HK$787.0 million.

 

As for the Hong Kong & Macau segment, the Group was awarded 13 new foundation and superstructure construction projects with aggregated contract sums of approximately HK$1.33 billion.

 

Mr. Cheng Wing On, Michael, Chairman of CNQC International said: “Looking forward to 2020, in light of the impacts from the Coronavirus Disease (COVID-19), the property market of Singapore might see short-term decline in demand, together with the existing huge new property supply in market during 2020, posing challenges to the Group’s property sales. In order to counter the shock from the epidemic, the 2020 Budget of Singapore introduced a number of measures to stimulate economic development, the Singapore market will continue to provide long-term growth opportunities and expansion room for the Group. The Group will remain its root in the Singapore market to locate quality projects and capitalise upon its leading strengths in the property development business for consolidating its market position as a major local developer.”

 

 “The management believes that it is essential to replenish its land bank in order for the Group’s sustainable project development in the coming years. The Group will follow its current strategy on land bank reserve whilst taking a prudent approach in selecting quality land with reasonable price which is suitable for the Group’s investment. In addition, the Group will continue to further expand its existing presence in Southeast Asian markets, including Malaysia, Indonesia, Vietnams, Myanmar and Cambodia.”

- End-